Stage 6 of 7 · Contesting
TABC Administrative Hearing: What to Expect
In this guide
A TABC administrative hearing is a trial-like proceeding before an administrative law judge of the State Office of Administrative Hearings (SOAH), not before TABC itself. The standard of proof is a preponderance of the evidence, the judge writes a proposal for decision, and TABC’s commissioners then issue the final order, which they may adopt, reject, or modify. A case reaches this stage when the business rejects TABC’s settlement offer or does not act on the notice by the deadline in AIMS, or when TABC refers a matter directly to its legal services division without a settlement offer, as Rule 34.1(e) requires for sales to minors or intoxicated persons that caused death or serious bodily injury; TABC’s General Counsel’s Office then sets the case for hearing.
Who decides, and where?
Two bodies share the case. Under Section 5.43 of the Alcoholic Beverage Code, SOAH conducts the hearings the Code requires, and under Section 5.363(b) TABC’s commission makes the final decision in a contested case. TABC’s violations page describes the sequence: “A SOAH judge will hear the case and give TABC a Proposal for Decision on the matter. TABC’s commissioners will then decide whether to adopt, reject, or modify the Proposal for Decision and issue a final order to that effect.”
Section 11.015 of the Code allows a hearing on the suspension or cancellation of a permit to be held in the county where the premises is located, at the nearest permanent SOAH hearing office, or at any location the parties agree on. SOAH’s guide for representing yourself in general hearings adds that some hearings and mediations are held by videoconference.
What standard of proof applies?
SOAH’s guide explains: “the party with the burden of proof must show the facts by what is called a ‘preponderance of the evidence.’ This means the party with the burden of proof must show that a fact is more likely than not true.” Because SOAH cases are not criminal cases, the criminal standard of proof beyond a reasonable doubt never applies. On who carries the burden, the guide states that “most of the time” it is the agency that sent the case to SOAH, but that when “an individual or business is challenging an action by an agency or is requesting an agency do something, the individual or business will have the burden of proof.”
What happens before the hearing?
The guide describes the pretrial tools that apply in general hearings:
- Discovery. Parties can send written questions and requests for documents. A party that does not answer can face a motion to compel, and the parties must try to resolve the dispute with each other before filing one.
- Summary disposition. The agency can ask the judge to decide part or all of the case without a hearing. The responding party has 15 days from the filing of that motion to file a written response; without a response, the judge may decide the case against that party without a hearing.
- Settlement and mediation. Settlement talks are between the business and TABC; the judge does not take part. SOAH also offers mediation with a different administrative law judge who is not assigned to the case. If mediation does not settle the case, the right to a hearing remains.
A party who does not appear at the hearing risks a default, which follows its own procedure under SOAH’s rules.
What happens at the hearing?
SOAH’s guide calls the hearing “like a trial.” Both sides present evidence and witnesses, and the judge controls the course of the hearing and can hold conferences before and after it. The guide’s advice is to bring everything needed to present the case, because “the Administrative Law Judge may only consider evidence that is in the hearing record.” After the hearing, a party may submit more only if the judge asks for written arguments or additional evidence.
What happens after the hearing?
| Step | Timing in SOAH's guide |
|---|---|
| Judge issues the proposal for decision: discussion of the evidence and issues, findings of fact, conclusions of law, and a recommendation | in most cases within 60 days after the hearing record closes; some deadlines are shorter or longer |
| Parties file exceptions pointing out errors in the proposal | within 15 days after it is issued |
| Parties file replies to exceptions | within 15 days after the exceptions are filed |
| TABC's commissioners adopt, reject, or modify the proposal and issue the final order | after the exceptions process |
A business that disagrees with the commission’s final order can seek rehearing and then appeal to district court.
Is an attorney required?
No. SOAH’s guide states that a party is not required to have an attorney but may hire one, that all SOAH administrative law judges are licensed Texas attorneys, and that SOAH staff cannot give legal advice. Some law firms describe their practice as TABC licensing and violation defense; Griffith & Hughes is one example. SOAH’s guide tells self-represented parties to review and be familiar with the procedural rules and the law that apply to their case.
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.