TABC Violations

TABC is responsible for enforcing the Texas Alcoholic Beverage Code (the Code) and TABC Administrative Rules (Rules). If a TABC license or permit holder violates the Code or Rules, they will be subject to an enforcement action by the agency. Enforcement might include a warning, a settlement with TABC, or an administrative case heard by a judge from the Texas State Office of Administrative Hearings (SOAH).

If a license holder is found to have violated the Code or Rules, TABC sends an administrative notice to the email address classified as the “Primary” user in the licensed entity’s AIMS account.

Review the administrative notice email as soon as possible, log in to your AIMS account, and complete any necessary actions. You can review violations for your license or permit, accept a settlement offer for a violation (if offered), reject a settlement offer and request an administrative hearing, review and sign documents, and pay any civil penalties associated with the violation.

The administrative notice email will show the number of days the license holder has to complete any actions in AIMS. If the license holder doesn’t take action in AIMS by the deadline stated in the email, their violation case will be sent to TABC’s General Counsel’s Office to be set for an administrative hearing.

A step-by-step guide for completing this process is available below.

These violations relate to provisions of the Code or Rules that are meant to prevent licensed businesses from endangering public health or safety. Examples include:

• Selling or serving alcohol to a minor or an intoxicated person. 
• Selling alcohol or allowing consumption during prohibited hours.
• Allowing intoxicated persons on the premises (i.e., owner, staff, and customers).
• Operating in a manner that allows a breach of peace.

Public safety violations could result in an administrative case against the business, along with criminal charges for the person accused of the violation. Criminal charges are often prosecuted by a local county attorney.

A public safety violation will also result in TABC placing your business on a priority list and TABC agents conducting additional inspections at the location over the next six months to verify compliance and ensure public safety.

These violations relate to provisions of the Code or Rules that licensed businesses must comply with for reasons other than public safety. Examples include:

• Prohibited relationships between businesses in different tiers.
• Failure to timely file excise tax reports and payments.
• Failure to display a license or permit or post a required sign.
• Improper advertising.

Regulatory violations could result in an administrative case against the business.  

When TABC finds that a license holder has violated the Code or Rules, the violation can be handled with warnings, settlements, or administrative hearings.

If TABC receives an initial, vague complaint against a TABC-licensed business that alleges a nonviolent offense, TABC agents may enroll the business in the agency’s Proactive Alcohol Compliance Enforcement (PACE) program for two years instead of conducting an initial investigation. Eligibility for PACE enrollment depends on the seriousness and specificity of the complaint, the business’s complaint and violation history, and the overall risk to public safety.

TABC provides businesses enrolled in PACE with free educational opportunities and materials to help them follow applicable laws. If TABC receives another complaint or finds a violation within the business’s two-year PACE enrollment, the agency will proceed with an investigation. Alternatively, if TABC does not receive a complaint in those two years, the business will once again be eligible for the program.

Important note: A business’s enrollment in the PACE program does not prevent TABC from conducting compliance operations or investigating additional complaints or alleged violations of TABC Rules, the Alcoholic Beverage Code, or other state laws.

Regulatory violations are classified as having no direct threat to public safety. If a TABC-licensed business is found to have committed a regulatory violation unintentionally and they haven’t been found to have committed that particular violation previously, TABC may issue the business a warning instead of a violation. However, TABC may take enforcement action if the agency finds during a follow-up inspection that the violation is still occurring. 

TABC may first present a business with an option to settle their violation without an administrative hearing by paying a civil penalty (i.e., a fine) and/or a temporary suspension or cancellation of the license or permit.

If a business chooses to settle the violation with TABC, they must sign and submit a settlement agreement with details of the terms. TABC will then issue the business a waiver order that confirms the business has waived  their right to an administrative hearing and orders them to pay a civil penalty and/or to comply with a temporary suspension or cancellation of their license.

During the settlement process, the business may end settlement discussions any time before the  settlement agreement is finalized. 

If the business chooses not to settle, their violation case will be sent to TABC’s General Counsel’s Office to be set for an administrative hearing.

A TABC-licensed business that receives a violation has a right to contest the agency’s findings through an administrative hearing.

A SOAH judge will hear the case and give TABC a Proposal for Decision on the matter. TABC’s commissioners will then decide whether to adopt, reject, or modify the Proposal for Decision and issue a final order to that effect. The impacted business has the right to appeal the final order.

To learn more about the administrative hearing and appeals processes, visit the SOAH website.