Can You Keep Your Business Open While Your TABC License Is Suspended?

A TABC suspension does not by itself require the non-alcohol side of the business to close, unless the suspension order imposes more; other permits and local rules are separate questions. The Alcoholic Beverage Code’s suspension rule for permits, Section 11.68, provides that no permit holder “may sell, offer for sale, distribute, or deliver any alcoholic beverage while his permit is suspended.” For beer licenses, Section 61.84(b) bars selling or offering for sale any alcoholic beverage the license authorized. Food, non-alcoholic drinks, and the rest of the business are outside those prohibitions, but the suspension also reaches the business’s secondary certificates, and selling alcohol during it is a separate violation that can lead to cancellation.

What the suspension prohibits

“Offer for sale” and “deliver” reach further than ringing up a sale. A drink listed for sale, a to-go or delivery order, or an alcohol promotion during the suspension days can each amount to offering or delivering alcohol.

Selling during a suspension carries its own consequences. TABC’s regulatory penalty chart lists “Sell/Deliver Alco. Bev. while under Suspension” (Section 11.68) as a separate violation, and for licenses Section 61.84(b) allows TABC to cancel the license if it establishes at a hearing that alcohol “was sold on or from a licensed premise during a period of suspension.”

What else the suspension reaches

• Secondary certificates. Under Section 11.09(c), “an action by the commission resulting in the suspension of a basic or primary permit also acts to suspend any secondary permit.” A late hours certificate, for example, is suspended with the primary permit.
• Suppliers. Under Section 11.091, TABC “shall promptly notify each wholesaler” that regularly supplies retailers in the area that the holder’s retail permit has been suspended.
• Verification. The same section requires TABC to verify that the holder of a suspended retail permit is not operating in violation of the Code, which can include an inspection of the premises within a reasonable time after the suspension starts.

What can continue

Section 11.68 and Section 61.84(b) address alcohol. A restaurant can keep serving food and non-alcoholic drinks, staff can keep working, and the business can stay open to customers during the suspension days, subject to the terms of TABC’s order. The permit holder still controls the premises and the alcohol stored there, and Section 109.53 continues to require exclusive control by the permit holder. Staying open does not turn a mixed beverage or private club premises into a bring-your-own-alcohol venue: TABC’s FAQ states that bringing alcohol onto MB or N permitted premises is illegal, and the suspension does not end that status.

Moving inventory is not a workaround. For some licenses, storing alcohol off the licensed premises is itself a listed regulatory violation (Sections 69.10 and 71.06 on TABC’s regulatory chart), and Sections 11.68 and 61.84 do not authorize another business to sell the stock in the meantime.

Can the suspension be shortened or ended early?

Three routes appear in the Code:

1. A civil penalty instead. If TABC offered the option and the business pays by TABC’s deadline, the suspension is not imposed (Section 11.64(a)). For violations on the statutory list in Section 11.64, the option depends on TABC.
2. Reinstatement during the suspension. Under Section 11.64(b), TABC may reinstate the permit “at any time during the period of suspension” on payment of a fee of not less than $75 nor more than $500, if it finds one of the circumstances in Section 11.64(c), such as a violation that could not reasonably have been prevented by due diligence, a technical violation, or good faith steps to correct it.
3. A court order. In an appeal from a suspension order, the district court may suspend or modify the order while the case is pending (Section 11.67(b)(4)).

A short list for the suspension days

• Take alcohol off the menu, the point-of-sale system, and any delivery platform for the full term.
• Stop alcohol promotions and pre-sales for those days.
• Do not relocate alcohol to work around the suspension; check the order and the storage rules for the permit type before moving any inventory.
• Keep the TABC order with the business’s records, and follow its terms for the full suspension.

This article is general information about Texas alcoholic beverage law, not legal advice, and reading it does not create an attorney-client relationship. Statutes and TABC rules change; confirm current requirements with the Texas Alcoholic Beverage Commission, the relevant city or county, or a licensed Texas attorney before acting.