Can You Appeal a TABC License Revocation?

Yes, in two steps. First, a motion for rehearing must be filed with TABC no later than the 25th day after the commission’s final order is signed; except in the two situations Section 2001.145 of the Government Code lists, that motion is a prerequisite to any appeal. Second, once the order is final and appealable, the business has 30 days to file in district court, where the judge reviews the agency record under the substantial evidence rule, without a jury. The Alcoholic Beverage Code calls the loss of a permit “cancellation,” and its appeal section covers cancellation and suspension orders.

Step 1: The motion for rehearing

The rehearing rules are in the Administrative Procedure Act, Chapter 2001 of the Government Code:

• Deadline. The motion is due “not later than the 25th day after the date the decision or order that is the subject of the motion is signed” (Section 2001.146(a)). The period can be extended only in the ways the statute lists, such as a written agency order or an agreement of the parties approved by the agency.
• Content. The motion “must identify with particularity findings of fact or conclusions of law that are the subject of the complaint and any evidentiary or legal ruling claimed to be erroneous,” and must state the legal and factual basis for each claimed error (Section 2001.146(g)).
• Replies. Other parties reply by the 40th day after the order is signed (Section 2001.146(b)).
• Ruling. TABC must act by the 55th day after the order is signed, or the motion is overruled by operation of law (Section 2001.146(c)). An extension cannot push agency action beyond the 100th day (Section 2001.146(e)).

A timely motion for rehearing is a prerequisite to appeal, with two exceptions: it is not required when the agency made the order final on signing because of “an imminent peril to the public health, safety, or welfare” and stated the factual and legal basis in the order, or when the parties agreed to a finality date (Sections 2001.144(a)(3)-(4) and 2001.145(a)).

When does the order become final?

Under Section 2001.144(a), the order becomes final:

The 30-day clock for court starts from the date the order is final and appealable.

Step 2: District court review

Section 11.67 of the Alcoholic Beverage Code sets special rules for appeals from orders cancelling or suspending a permit or license, which the statute says “shall be construed literally”:

1. Where. In the district court of the county where the permit holder resides, or where the owner of the real or personal property involved resides. The Government Code’s general rule sends agency appeals to Travis County “unless otherwise provided by statute” (Section 2001.176(b)); Section 11.67 is such a statute.
2. When. The appeal must be perfected and filed within 30 days after the order becomes final and appealable.
3. Against whom. The commission alone is the defendant.
4. How fast. The case is tried before a judge within 20 days after it is filed.
5. No jury. Neither side is entitled to one.
6. Interim relief. The court may suspend or modify the commission’s order while the case is pending, but the district court’s final judgment may not be suspended or modified pending a further appeal.
7. Notice to protesters. A local official on record as protesting the permit, and the first three other persons on record as protesting it, are entitled to notice of the appeal, and the appellant is responsible for giving it.

What can the court decide?

Review under the substantial evidence rule is narrow on facts. Under Section 2001.174, the court “may not substitute its judgment for the judgment of the state agency on the weight of the evidence on questions committed to agency discretion.” It may affirm, and it must reverse or remand if the business’s substantial rights were prejudiced because the agency’s findings or decision were:

• in violation of a constitutional or statutory provision;
• in excess of the agency’s statutory authority;
• made through unlawful procedure;
• affected by another error of law;
• not reasonably supported by substantial evidence in the record as a whole; or
• arbitrary or capricious, or an abuse of discretion.

The court sits without a jury and is confined to the agency record, except for evidence of procedural irregularities not reflected in it (Section 2001.175(e)). It may allow additional evidence to be taken before the agency if the evidence is material and there were good reasons it was not presented earlier (Section 2001.175(c)). Since September 1, 2025, Section 2001.1721 directs courts to review questions of law, including the interpretation of statutes and agency rules, de novo, without deference to the agency’s legal determination, although a court may still consider an agency interpretation that is reasonable and does not conflict with the plain language of the statute.

Why does the hearing record matter on appeal?

Because the court reviews the record built at the State Office of Administrative Hearings, the evidence and objections a business wants a court to consider have to be in that record, and the specific errors have to be named in the motion for rehearing. The hearing stage, not the appeal, is where the factual record is built.

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.