Texas Liquor License Revocation Attorney

Texas Liquor License Revocation and Suspension: How a Texas TABC Attorney Can Help Retailers

For many Texas retailers, a liquor license or alcohol permit is a critical part of the business. Convenience stores, liquor stores, grocery stores, restaurants, bars, hotels, and other establishments can depend heavily on alcohol sales for their revenue.

When the Texas Alcoholic Beverage Commission (TABC) alleges a violation, however, that license can be placed at risk.

A TABC license suspension or revocation can mean much more than temporarily losing the ability to sell alcohol. It can affect revenue, employees, relationships with distributors, the value of the business, and in serious cases, the ability to continue operating.

If your business has received a TABC violation notice, proposed suspension, cancellation, or other enforcement action, it is important to understand that you may have the right to challenge the allegations and request an administrative hearing.

Our Texas law firm represents retailers and other businesses in administrative and regulatory matters. We can help evaluate the allegations, communicate with the agency, develop defenses, negotiate when appropriate, and represent the business through the administrative hearing and appeal process.

Can TABC Revoke or Suspend a Texas Liquor License?

Yes.

The Texas Alcoholic Beverage Code gives TABC authority to take enforcement action against license and permit holders for violations of the Alcoholic Beverage Code and TABC rules.

Depending on the circumstances and the type of license involved, enforcement can potentially result in:

A warning;
A monetary penalty;
A temporary suspension;
A negotiated settlement;
Cancellation of the license or permit; or
An administrative case and hearing.

TABC explains that enforcement actions can range from warnings and settlements to administrative cases heard by an administrative law judge at the Texas State Office of Administrative Hearings (SOAH). A licensed business also has the right to contest TABC’s findings through the administrative hearing process.

For Texas retailers, Alcoholic Beverage Code §61.71 provides grounds under which TABC may suspend or cancel certain retail licenses after notice and hearing. Texas law also provides circumstances in which suspension may be imposed instead of cancellation.

That distinction can be extremely important. There is a substantial difference between dealing with a temporary suspension and permanently losing a license that may be essential to the value and operation of the business.

Common Reasons for TABC License Suspension or Revocation

TABC enforcement cases can arise from many different circumstances.

Some of the most common allegations involving Texas retailers include:

Selling Alcohol to a Minor

Sales to minors are among the most serious and common TABC violations.

A violation may arise from an undercover operation, inspection, employee transaction, or other investigation.

However, the fact that an employee allegedly sold alcohol to a minor does not necessarily mean that a retailer should automatically accept TABC’s proposed penalty.

Texas law contains important provisions concerning employee conduct and potential defenses. For example, Alcoholic Beverage Code §106.14 addresses circumstances under which an employee’s actions may not be attributable to the employer.

The facts surrounding employee training, certification, supervision, policies, and the particular transaction can therefore be extremely important.

Selling or Serving Alcohol to an Intoxicated Person

TABC identifies selling or serving alcohol to an intoxicated person as a public-safety violation.

These cases can involve significant factual disputes.

Questions may include:

What did the customer actually look or act like at the time of the sale?
What did the employee observe?
How much alcohol had the customer purchased or consumed?
Was the individual obviously intoxicated?
Is there surveillance footage?
What do receipts or point-of-sale records show?
What observations did TABC officers actually make?

An attorney can examine the evidence rather than simply accepting the allegations contained in the violation notice.

Sales During Prohibited Hours

Texas law restricts alcohol sales and consumption during certain hours depending on the license and circumstances.

TABC specifically identifies selling alcohol or allowing consumption during prohibited hours as a public-safety violation.

For a retailer, seemingly simple factual issues — including the exact time of a transaction and what actually occurred — may become important evidence.

Breach of the Peace and Problems on the Licensed Premises

TABC also identifies operating a licensed establishment in a manner that allows a breach of the peace as a potential public-safety violation.

Bars, restaurants, nightclubs, and other establishments can face enforcement following fights, disturbances, shootings, repeated police calls, or other incidents.

The central issue may not simply be whether an incident occurred. The business’s knowledge, response, security procedures, employee actions, and surrounding circumstances may also matter.

Failure to Maintain Required Records

Texas alcohol retailers operate in a heavily regulated environment. Recordkeeping deficiencies, failure to produce required information, or other administrative compliance issues can result in enforcement action.

When responding to an investigation, businesses should be careful to preserve relevant records and understand precisely what TABC is requesting.

Tax Problems

A retailer’s TABC license can also be affected by certain Texas tax problems.

Alcoholic Beverage Code §61.712 provides for denial of renewal and, after notice and hearing, possible suspension or cancellation under specified circumstances involving a required sales tax permit or a final determination of certain Texas sales taxes due and payable.

This is particularly important because a retailer may find itself dealing with both the Texas Comptroller and TABC.

Our firm’s experience representing retailers in Texas sales tax matters can be particularly useful when the TABC licensing issue originates from an underlying Comptroller tax problem.

What Happens When You Receive a TABC Violation Notice?

Do not ignore the notice.

TABC states that administrative violation notices are sent to the email address designated as the “Primary” user in the licensed entity’s AIMS account. The license holder can use AIMS to review the violation, accept a settlement if one is offered, reject the settlement and request an administrative hearing, sign documents, and pay applicable civil penalties.

Most importantly, pay attention to the deadline in the notice.

TABC states that the administrative notice identifies the number of days the license holder has to take the required action. If no action is taken by that deadline, the case may be sent to TABC’s General Counsel’s Office to be set for an administrative hearing.

A retailer receiving a TABC notice should therefore consider contacting an attorney immediately rather than waiting until shortly before the deadline.

Should You Accept a TABC Settlement Offer?

Not necessarily.

A settlement may sometimes be the most practical resolution, but a retailer should understand exactly what it is agreeing to before accepting it.

According to TABC, when a business settles a public-safety violation, it signs a settlement agreement specifying the terms. TABC then issues an order confirming that the business waived its right to an administrative hearing and imposing the agreed civil penalty, temporary suspension, cancellation, or other terms.

Before accepting a settlement, a retailer should consider:

Whether TABC can prove the alleged violation;
Whether important evidence has been overlooked;
Whether there are statutory or factual defenses;
Whether employee conduct can legally be attributed to the business;
Whether the proposed penalty is appropriate;
Whether the business has prior violations;
Whether accepting the violation could affect future enforcement;
Whether suspension can be avoided or reduced; and
Whether cancellation can be avoided.

A quick settlement is not always the best settlement.

Fighting a TABC License Revocation or Suspension at SOAH

Texas businesses have the right to contest TABC enforcement allegations through the administrative hearing process.

TABC explains that an administrative case may be heard by a judge at the State Office of Administrative Hearings (SOAH). The administrative law judge provides TABC with a Proposal for Decision. TABC’s commissioners then determine whether to adopt, reject, or modify that Proposal for Decision and issue a final order. The affected business can have further appeal rights from the final order.

A TABC administrative hearing is therefore much more than an informal conversation with an investigator.

The case may require legal and factual analysis involving:

The Alcoholic Beverage Code;
TABC administrative rules;
Witness testimony;
Employee testimony;
Surveillance video;
Point-of-sale records;
Receipts;
Training records;
TABC investigative reports;
Police reports;
Prior violations;
Agency evidence; and
Other documents concerning the alleged incident.

A Texas TABC attorney can evaluate the government’s evidence and determine which facts and legal arguments provide the strongest defense.

How Our Texas Law Firm Can Help Retailers Facing TABC Enforcement

Our firm understands that a regulatory case involving a liquor license is ultimately a business problem.

For a retailer, losing the ability to sell alcohol can have immediate financial consequences. Our goal is to identify the legal and factual issues quickly and determine the best available strategy for protecting the business.

1. Review the TABC Violation Notice

We can review the notice and determine:

What TABC is alleging;
What statute or regulation is involved;
What penalty is being proposed;
What deadlines apply; and
What options are available to challenge or resolve the case.

2. Analyze the Evidence

The government’s allegation is only one side of the case.

Depending on the violation, relevant evidence may include surveillance footage, receipts, employee schedules, training documentation, identification procedures, witness testimony, police records, and communications with TABC.

Preserving this evidence early can be critical.

3. Identify Defenses

A strong defense depends on the specific allegations.

Possible issues can include whether the violation actually occurred, whether the evidence is sufficient, whether TABC identified the correct employee or transaction, whether statutory protections apply, and whether mitigating circumstances justify a reduced sanction.

For certain violations involving employees, Texas law expressly recognizes circumstances in which employee actions may not be attributable to the employer.

4. Negotiate With TABC

Not every case needs to proceed through a contested hearing.

When appropriate, we can communicate with TABC regarding potential resolution and advocate for a result that minimizes the effect on the retailer’s operations.

Depending on the case, the objective may be to seek:

Dismissal of the allegation;
Reduction of the proposed penalty;
A shorter suspension;
A monetary penalty rather than suspension when legally available;
A negotiated settlement; or
Avoidance of license cancellation.

The appropriate strategy depends on the facts, violation history, license type, and applicable law.

5. Represent the Business at a SOAH Hearing

If an acceptable resolution cannot be reached, we can prepare the case for an administrative hearing.

That can include developing legal arguments, preparing witnesses, organizing exhibits, challenging agency evidence, and presenting the retailer’s position before the administrative law judge.

6. Evaluate Appeal Rights

An adverse administrative decision does not necessarily mean that every option has ended.

Texas law expressly provides for appeals from certain TABC cancellation or suspension decisions, and TABC confirms that businesses affected by a final order can have appeal rights.

Because administrative and judicial appeal deadlines can be strict, a business considering an appeal should have the final order reviewed promptly.

TABC Cases Involving Both Liquor Licenses and Texas Sales Tax

Retail businesses frequently face overlapping regulatory issues.

A convenience store, liquor store, restaurant, bar, or other retailer may have problems involving both its Texas sales tax obligations and TABC license.

This is an area where our firm’s broader experience representing Texas retailers can be especially valuable.

We represent businesses dealing with Texas tax and regulatory disputes and understand the operational realities faced by retailers. When a liquor-license problem is connected to a Texas Comptroller matter, it is important to look at the entire situation rather than treating the TABC case in isolation.

Businesses We Can Assist

Our firm can assist Texas businesses such as:

Convenience stores;
Gas stations;
Liquor stores;
Package stores;
Grocery stores;
Restaurants;
Bars and taverns;
Nightclubs;
Hotels;
Retail stores; and
Other TABC-licensed businesses.

Whether the issue involves an alleged sale to a minor, intoxicated customer, prohibited hours, a premises violation, sales tax problem, employee conduct, or another TABC enforcement issue, the first step is determining exactly what TABC is alleging and what options remain available.

Received a TABC Suspension or Revocation Notice? Act Quickly.

A Texas liquor license can be one of a retailer’s most valuable business assets.

If you have received a TABC violation, liquor license suspension notice, cancellation notice, or administrative hearing notice, do not assume that the agency’s allegations are final.

Texas law provides notice and hearing protections in license suspension and cancellation proceedings. TABC itself confirms that licensed businesses have the right to contest agency findings through an administrative hearing.

The earlier an attorney becomes involved, the more opportunity there may be to preserve evidence, analyze defenses, respond to TABC, negotiate a resolution, and prepare for a hearing if necessary.

Contact a Texas TABC Liquor License Attorney

Ansari Tax Law Firm represents retailers and businesses facing Texas administrative, tax, and regulatory disputes.

If TABC is threatening to suspend or revoke your liquor license, our attorneys can review the allegations, explain your options, and help protect your business through the TABC administrative process.

Contact Ansari Tax Law Firm today to discuss your TABC license suspension, cancellation, or revocation matter.

Frequently Asked Questions About Texas Liquor License Revocations

Can TABC revoke a liquor license in Texas?

Yes. TABC has statutory authority to suspend or cancel licenses and permits for specified violations, generally subject to applicable notice and hearing requirements.

Can I fight a TABC violation?

Yes. TABC states that a licensed business receiving a violation has the right to contest the agency’s findings through an administrative hearing.

Where are TABC administrative cases heard?

Contested TABC administrative cases may be heard by an administrative law judge with the Texas State Office of Administrative Hearings (SOAH). The judge provides a Proposal for Decision, after which TABC issues its final order.

Can TABC suspend my license instead of cancelling it?

In certain circumstances, yes. For example, Texas Alcoholic Beverage Code §61.76 gives TABC or its administrator discretionary authority to impose a suspension of up to 60 days instead of cancellation when the Code provides a cause for cancellation of a license. The precise rules depend on the license and violation involved.

Can sales tax problems affect my Texas liquor license?

Yes. Texas Alcoholic Beverage Code §61.712 specifically addresses certain situations involving a missing required sales tax permit or final determinations of sales taxes due and payable and permits TABC to take licensing action under the conditions stated in the statute.

Should I hire a lawyer after receiving a TABC violation notice?

Because a TABC enforcement action can potentially affect a retailer’s ability to sell alcohol and because deadlines apply to the administrative process, having an attorney review the notice early can help the business understand the allegations, potential defenses, settlement options, and hearing rights.

What should I do immediately after receiving a TABC violation?

Review the notice and deadline, preserve surveillance video and other evidence, avoid destroying or overwriting relevant records, gather employee and transaction information, and consider speaking with a Texas attorney experienced in administrative and retailer regulatory matters before accepting a settlement or waiving hearing rights.

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