TL;DR

Launching a bar or restaurant in Austin means more than having a place with a great ambience, food, and drinks. It means navigating a maze of alcohol laws, permits, and local regulations. Work with Castroland Legal to ensure your business starts on solid legal ground and stays compliant every step of the way.

Navigating TABC Violations in Texas: Legal Strategies to Protect Your Business

Texas bars, breweries and restaurants operate in a highly regulated environment. Even minor missteps, such as forgetting to mutilate tax stamps or letting an employee drink on duty, can trigger investigations by the Texas Alcoholic Beverage Commission (TABC).

Understanding the types of violations, potential penalties and available defenses helps owners avoid costly surprises. This post explains some of our most commonly seen violations, the sanctions they carry, and strategies to protect your license and reputation.

It also highlights the importance of qualified legal counsel (like at Castroland Legal) when the stakes are high.

Public‑Safety vs. Regulatory Violations

TABC violations fall into two broad categories: public‑safety violations and regulatory violations. Public‑safety violations pose a threat to the health or welfare of the community. Examples include selling or serving alcohol to a minor, overserving an intoxicated person, allowing an intoxicated employee to work and selling alcohol without a permit.

These violations can lead to administrative cases, criminal charges, and significant civil liability if someone is injured as a result. Regulatory violations, on the other hand, involve breaking rules that govern the three‑tier system and marketing practices (i.e.,illegal advertising, prohibited relationships between tiers, or failure to renew a permit).

Although regulatory violations may not endanger the public directly, they can still result in fines, suspensions, or cancellation of your license.

Common Public‑Safety Violations

Serving alcohol to a minor, overserving an intoxicated guest, and allowing intoxicated employees to work are all serious offenses. TABC's public‑safety penalty chart lists suspensions ranging from eight to 12 days for first offenses, with escalating penalties for repeat violations.

Failure to post required signs(i.e., the 60‑Day Sign notifying the public of a new application) can also lead to delays or fines.

Common Regulatory Violations

Improper advertising and marketing, cross‑tier violations, and failure to renew or update licenses are among the most common regulatory violations. These include advertising alcoholic beverage prices on signs visible from the street, engaging in prohibited relationships between manufacturers, distributors and retailers, and neglecting to renew permits or update ownership information.

Penalties and Enforcement

TABC enforces the Alcoholic Beverage Code by issuing warnings, suspensions, and cancellations. Public‑safety violations generally result in longer suspensions, and possible criminal charges, while regulatory violations carry fines or shorter suspensions. Licensees may receive an agreed order (settlement) or proceed to a hearing before an administrative law judge.

Legal Strategies to Protect Your Business

Implement comprehensive training, adopt written policies and procedures, conduct internal compliance audits, use technology for ID verification and inventory management, and hire experienced legal counsel.

Attorneys can negotiate settlements, represent clients at hearings, and help develop compliance programs to prevent violations.

How Castroland Legal Can Help

Castroland Legal assists businesses facing TABC enforcement actions by providing emergency response, negotiating agreed orders, defending at hearings, and implementing compliance programs.

TABC violations can threaten your livelihood, but understanding the rules and adopting a proactive compliance culture dramatically reduces the risk. Train employees, maintain proper signage, keep meticulous records and review marketing materials to avoid pitfalls. If a violation occurs, consult an attorney immediately to protect your license and reputation.