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Alcohol and TABC Licensing Attorneys in Texas

8 min read

  • 3 firms listed
  • 5 questions answered

A business that sells alcohol in Texas needs a permit or license from the Texas Alcoholic Beverage Commission (TABC) and has to keep it. TABC can suspend or cancel a permit for violations, can suspend one by emergency order for up to 90 days, and in most suspension cases must let the holder pay a civil penalty instead, from $150 to $25,000 for each day of the suspension. A TABC attorney handles applications, violation cases, emergency orders, appeals, and the Comptroller audits that come with selling mixed drinks.

What TABC Attorneys Handle

Permit Applications, Transfers, and Ownership Changes

Each kind of alcohol business has its own permit chapter in the Alcoholic Beverage Code, for example the Mixed Beverage Permit for bars and restaurants serving liquor by the drink, the Wine and Malt Beverage Retailer’s Permit, and the Package Store Permit. Local option elections also control what can be sold in a given city or precinct. Attorneys prepare original applications, ownership and location changes, and restructurings that affect existing permits, and they deal with protests filed against an application.

Violation Cases and Administrative Hearings

When TABC charges a violation, the case can settle or go to a contested case hearing before the State Office of Administrative Hearings (SOAH). For most suspensions, the Code requires TABC to offer a civil penalty instead, from $150 to $25,000 for each day of the suspension. That option is not automatic for some violations, including sales to minors, sales during prohibited hours, breaches of the peace, and offenses involving prostitution, trafficking, gambling, or drugs; for those, TABC decides whether to allow a penalty in place of suspension. If an offered penalty is not paid before the sixth day after notice of the amount, the suspension is imposed. The Code also lets TABC reduce a sanction where, for example, the violation could not reasonably have been prevented with due diligence, an employee acted without the holder’s knowledge, or the violation was technical (Alcoholic Beverage Code § 11.64).

Emergency Suspension Orders

If TABC or its administrator finds that a business’s continued operation would be a continuing threat to the public welfare, it can suspend the permit without a hearing for up to 90 days. The hearing on the order must be held no later than the 10th day after the order is issued, before SOAH, and the order is affirmed to the extent there was reasonable cause for it (§ 11.614).

Appeals to District Court

A TABC order can be appealed to district court. The appeal must be filed within 30 days after the order becomes final and appealable, it is decided under the substantial evidence rule, and neither party is entitled to a jury (§ 11.67).

Consumable Hemp Products

TABC rules effective January 21, 2026 prohibit a permit or license holder from selling, serving, or delivering consumable hemp products to anyone under 21 and require the holder to check a government-issued photo ID before completing each sale (16 TAC §§ 35.5, 35.6). A sale to someone under 21 carries a suspension of at least 30 days or cancellation for a first violation, at least 60 days or cancellation for a second, and cancellation after that, with no option to pay a civil penalty instead. TABC has said it does not intend to seek cancellation for a first violation unless the facts are serious enough to warrant it. A cancellation under § 35.5 makes the holder, and certain associated persons, ineligible for a new original TABC permit or license for five years. Failing to check ID is a separate violation, although it is a defense to an enforcement action for that violation that the consumer was 40 years of age or older (16 TAC § 35.6(c)); the defense does not remove the duty to check ID, and checking every buyer remains the safer practice. The sanctions for the ID violation are at least 7 days of suspension for a first violation, 14 for a second, and 30 for a third. A retailer that followed the ID rules and reasonably believed the buyer was 21 or older does not violate the minor-sale rule if the buyer falsely claimed to be 21.

Federal law is also changing. Section 781 of the federal continuing appropriations act enacted as Public Law 119-37 rewrites the federal definition of hemp around total THC content, and the Texas State Law Library’s hemp guide (updated October 14, 2026) lists November 12, 2026 as its effective date. Confirm that this date still stands before relying on it, since the federal hemp definition has already been rewritten once since the 2018 Farm Bill.

Dram Shop Claims

The Alcoholic Beverage Code makes a provider liable only if it was apparent when the alcohol was served that the customer was obviously intoxicated to the extent of presenting a clear danger to himself and others, and the intoxication was a proximate cause of the damages (§ 2.02(b)). For customers 18 and older, that statute is the exclusive cause of action against the provider (§ 2.03). Dram shop defense, insurance, and the seller-training safe harbor are covered in more detail in the guide to hospitality law attorneys in Texas.

Comptroller Mixed Beverage Audits

A mixed beverage permit holder owes both the mixed beverage gross receipts tax and the mixed beverage sales tax on alcohol sales, and must also hold a sales tax permit, according to the Texas Comptroller. Audits compare reported sales with purchase and point-of-sale records, and the resulting assessments can be contested through the Comptroller’s hearing process.

How to Choose a TABC Attorney

TABC case experience. Ask how many TABC applications, protests, and violation cases the attorney has handled, not only administrative hearings in general.

SOAH hearings. If the case may go to a contested hearing, ask about experience before SOAH administrative law judges and with district court appeals under the substantial evidence rule.

Speed for emergency orders. An emergency suspension takes effect immediately and the hearing comes within 10 days, so ask whether the firm can start right away.

Fee structure. Ask whether applications and renewals are handled for a flat fee and whether violation cases and litigation are billed hourly.

Texas TABC Law Firms

Griffith & Hughes PLLC

Location: Arlington, Texas

Website: griffithhughes.com

Phone: 817-562-9648

Griffith & Hughes focuses on TABC matters, handling cases before SOAH, county courts, district courts, and appellate courts in Texas. The firm concentrates on alcoholic beverage regulatory matters and is located near the TABC’s Dallas/Fort Worth Regional Office.

Practice Focus:

  • TABC license applications and transfers
  • Violation defense and administrative hearings
  • Emergency suspension orders
  • Dram shop defense
  • Comptroller mixed beverage audits

Monshaugen & Van Huff, P.C.

Location: Houston, Texas

Website: texasliquorlaw.com

Phone: 713-880-2992

Monshaugen & Van Huff focuses on liquor law matters, representing hospitality industry clients throughout Texas. The firm provides representation for TABC licensing and permitting, dram shop defense, liquor tax audit representation, and criminal liquor code violation defense.

Practice Focus:

  • TABC licensing and permitting
  • Dram shop defense
  • Liquor tax audit representation
  • TABC administrative case defense
  • Criminal liquor code violations

Martin Frost & Hill

Location: Austin, Texas

Website: mfhliquorlaw.com

Phone: 512-473-0300

Martin Frost & Hill focuses on alcoholic beverage permitting and compliance, representing retailers, distilleries, wineries, breweries, and importers across Texas and the United States. The firm’s attorneys have worked at TABC, at the Texas Capitol, and in the industry, giving them unique perspective on regulatory matters. They handle TABC retail permits for every type of retail business including restaurants, convenience stores, hotels, package stores, music venues, arenas, and temporary events.

Practice Focus:

  • TABC retail and manufacturing permits
  • Federal TTB permitting
  • Advertising and marketing compliance
  • Regulatory strategy and rule drafting
  • Multi-state expansion guidance

Costs and Fees

TABC work is billed in different ways depending on the matter. Applications, transfers, and renewals are frequently quoted as flat fees, while contested violation cases, SOAH hearings, district court appeals, and dram shop litigation are frequently billed by the hour. Emergency suspension matters can require immediate work on a compressed schedule, which affects cost. For a civil penalty, the cost to the business is set by TABC within the $150 to $25,000 per day range in § 11.64, separate from legal fees. Ask for a written fee agreement that states what is included.

Frequently Asked Questions

Can I handle a TABC violation without an attorney?

Yes, a permit holder can respond to TABC directly. Violations stay on the permit’s compliance history, and some, such as sales to minors, can lead to suspension or cancellation without an automatic right to pay a penalty instead, so the stakes of a settlement offer depend on the violation and the business’s history.

How long does a TABC case take?

There is no single timeline. An emergency suspension hearing must be held within 10 days after the order. A district court appeal must be filed within 30 days after the TABC order becomes final and appealable. Other cases depend on settlement talks and SOAH scheduling.

Do I need an attorney for a permit application?

Not always. Applications with ownership complexity, prior violations, local option questions, or a protest from residents or officials raise more issues, and those are where legal help is used.

What is an emergency suspension order?

It is an order TABC can issue without a hearing when it determines that a business’s continued operation would be a continuing threat to the public welfare. The suspension can last up to 90 days, the order must state its length, and a SOAH hearing to affirm, modify, or set it aside must be held no later than the 10th day after the order was issued.

Can selling hemp products affect my TABC license?

Yes. Since January 21, 2026, selling consumable hemp products to anyone under 21, or failing to check a buyer’s government-issued photo ID, is a violation for TABC permit and license holders. A sale to someone under 21 leads to at least a 30-day suspension or cancellation for a first violation, and civil penalties are not available in place of those sanctions.

Sources

Disclaimer: This directory is provided for informational purposes only and does not constitute legal advice, endorsement, or recommendation of any attorney or law firm. Information about attorneys and law firms was compiled from publicly available sources and may not be current or accurate. We make no representations or warranties about the qualifications, experience, or quality of any attorney listed. Always verify attorney credentials with the State Bar of Texas, confirm current contact information, and conduct your own due diligence before hiring legal counsel. No attorney-client relationship is created by use of this directory.