Texas Alcoholic Beverage - Texas Liquor Laws

Over 50 counties in Texas are considered “dry” by law. But that’s only the beginning of the patchwork of the state’s confusing alcohol laws. 

For example, in some counties, only 4 percent beer is legal. In others, beverages that are 14 percent or less alcohol are legal. In some ‘dry’ areas, you can get a mixed drink by paying to join a ‘private club,’ and in some ‘wet’ areas you still need a club membership to get liquor-by-the-drink.

Not one single website can manage all of the alcohol laws in Texas and many other state's liquor law books average 200 pages in length. To keep it simple, let's discuss some of the basic laws that are applicable in most bars.

Minors

1. Adults and minors who give alcohol to a minor also face a stiff penalty. The punishment for making alcoholic beverages available to a minor is a class A misdemeanor, punishable by a fine up to $4,000, confinement in jail for up to a year, or both. Additionally, as of September 1, 2005, the violator will have his or her driver´s license automatically suspended for 180 days upon conviction.

   Also as of September 1, 2005, persons 21 or older (other than the parent or guardian) can be held liable for damages caused by intoxication of a minor under 18 if the adult knowingly provided alcoholic beverages to a minor or knowingly allowed the minor to be served or provided alcoholic beverages on the premises owned or leased by the adult.

   Sale to a minor is a class A misdemeanor, punishable by a fine up to $4,000, confinement up to a year in jail, or both.
2. It is illegal to serve alcohol to a minor - This is probably the most frequently broken and most often-enforced liquor law. A server of alcohol must card anyone they believe is close to the minimum of 21. Most programs emphasize carding anyone who appears 30 and under.
3. A server of alcohol is still liable for their actions even if a doorman has checked the ID. The doorman does not serve alcohol and cannot be held liable for letting the underage patron in the bar.
4. A wrist band is meaningless is the eyes of the law. The server of alcohol MUST check the ID as they are being held legally liable.
5. Serving a minor is a CRIMINAL OFFENSE. A bartender or server CAN BE ARRESTED and be taken to jail. State agents do this to make a point.
6. IF a boss or supervisor tells you, "It's okay to serve them without their ID, I'll vouch for them", this is meaningless in the eyes of the law. If YOU serve them and they are underage, YOU are cited.

Intoxicated Guests

1. It is illegal to serve a person to the point of legal intoxication. This is .08% in all states as of June 2007.
2. It is illegal to serve a visibly intoxicated person even one drink. If you do, you can be held as liable as the person who served them the amount to get them intoxicated.

Licenses, Signage and Times

1. You must know your liquor license cutoff time. Las call should be called with enough time to have all of the empty bottles and glasses removed as per code. Many states require all bottles to be in the trash and all glasses in the sinks. Most do not allow any alcohol open in glasses after closing time. This usually means the staff cannot drink legally after hours.
2. Most states require all licenses and signage to be posted in clear view of the customer. As a server of alcohol, you should verify that your bar is in fact, licensed and current. If not and you serve alcohol, you can be charged with a criminal offense.
3. Most all states do not allow the "marrying" or mixing of alcohols.

Texas Law: Retailers to Post Signs When Selling Alcohol

As you walk through any business selling alcohol in Texas, you should see several signs required by Texas law that serve as public service announcements:

•  A sign that contains the contact information for reporting complaints or violations to the Texas Alcoholic Beverage Commission (TABC);  

•  (For off-premise stores only, which includes convenience, package and grocery stores): A sign stating that it is illegal for customers to consume alcoholic beverages on the premises; and

•  (For on-premise stores only, which includes bars, clubs, and restaurants): A sign at each public entrance of a business holding a food and beverage certificate that also has alcoholic beverage sales make up 51% or more of its business. This sign explains that because the establishment sells alcohol, it is illegal to carry a concealed weapon onto the property without a specific license issued by the state to do so. Customers who ignore this sign, if arrested, could face penalties of up to ten years in jail and a fine not exceeding $10,000. For establishments for whom alcohol makes up less than 51% of their business, a sign must still be posted at each entrance reminding customers that if the 51% limit is reached, the same penalties will be applied.

TABC Restrictions on Retail Signage

Texas Alcoholic beverage code currently includes very specific instructions regarding the types, locations and content of signage in today's retail establishments holding permits to sell alcohol. These include:

No sound trucks or handbills. A Texas retailer who sells alcohol can advertise his or her businesses through radio, TV, newspaper, periodical, outdoor, or other printed materials; however, he or she cannot promote business by advertising on a sound truck or by distributing handbills on a public street, alley or sidewalk.

Outdoor advertising includes indoor signs. A retailer must be very careful about where advertising is placed and what it says.   Texas Alcoholic Beverage Code defines "outdoor advertising" as any signage a retailer places outside of his or her building, as well as signage located inside the building within five feet of a door or window that can be seen from the outside. This is an important distinction, because all outdoor advertising must not include brand names, prices, or lettering more than 12 inches in height or any statement influencing a customer's decision to purchase an alcoholic beverage, such as "Cold Beer."

Approval of each sign required. Before posting a sign, retailers are required to contact the local TABC office for approval to ensure that it complies with the alcoholic beverage code which restricts wording for outdoor signs based on the type of license or permit. Once compliance is established, a retailer may put up one sign per location, unless the building faces more than one street or highway-in which case, the retailer may erect a sign at each entrance or on the sides of the building.   Additionally, if the retailer's trade name or corporate name includes an alcoholic beverage name, then the retailer may place another sign stating the type of beverage.

Billboards or electric signs within 200 feet need permits. Although billboards and electric signs are permissible, a retailer may not erect a billboard or electric sign advertising an alcoholic beverage within 200 feet of a retail establishment authorized to sell that beverage unless they have first obtained a TABC permit for that purpose.   

TABC Guidelines on Promotional Items

The TABC has also outlined specific guidelines regarding items for sale that promote a specific alcohol product or brand. Although distributors and manufacturers are permitted to sell promotional items both on and off the retailer's premises, retail employees may not wear promotional items such as shirts or caps - they are for use strictly by the consumer. Additionally, items must bear a manufacturer's logo, brand or product name, may not be sold for less than the manufacturer's regularly published wholesale price and must be paid for in cash on or before the delivery.

Dram Shop Laws

The diminishing number of lawsuits can be attributed to the changes the 1995 Texas legislature passed regarding dram shop law. One of the most recent changes to dram shop law is the alteration of joint and several liability, which makes any party named in a lawsuit liable for the entire judgment. Under the new law, in order for the plaintiff to collect the entire amount from a bar or restaurant, a jury must find the bar or restaurant at least 51 percent responsible for the accident.

Many states, including Texas, have enacted or reenacted dram shop legislation in response to concerns about the consequences of excessive consumption. Today, only a handful of states do not rely on dram shop laws to hold liquor sellers responsible for their sales. Dram shop liability laws are a potentially powerful tool for changing the environment in which alcohol is sold. Dram shop liability laws hold alcohol servers responsible for harm that intoxicated or underage patrons cause to other people (or, in some cases, to themselves).

These laws are established at the state level through common law, legislation, or both. Dram shop liability laws are especially important in preventing alcohol problems because regulatory agencies - mainly state Alcohol Beverage Control departments - are so ineffective. In particular, these laws can provide an incentive for owners of alcohol establishments to train their employees in responsible beverage service.

Dram shop liability laws can help reduce alcohol-related injury. The initiation of a liability law suit in Texas in 1983 resulted in 6.5% fewer single vehicle nighttime injury crashes; an additional 5.3% decrease occurred after another suit was filed in 1984. In states in which servers have a relatively high level of exposure to liability:

• There is more publicity regarding liability;
• Alcohol servers and management are more aware of liability;
• More alcohol establishments obtain liability insurance;
• There are fewer low-price drink promotions; and,
• More servers check identification.

Sources: Texas Alcoholic Beverage Code: Online PDF Document 1333K; TABC Administrative Rules: Online PDF Document 489K