When your business has gone through the process of applying for and receiving a TABC permit or license for on-premises consumption, it can feel like the hardest steps are done. However, in order to maintain your license or permit, you also have to follow any and all regulations that surround how your business operates under that license. Below, we’ll go through some of the essential TABC rules for serving alcohol and what they mean for your business.

Hours of the Sale and Service of Alcohol

We provide a more in-depth guide on on-premises retailer hours of operation and off-premises retailer hours of operation, but here are the basic rules:

We cover hours of operation and consumption in this post, including any exceptions, but the basic rules of it are:

  • Monday-Saturday alcohol can be sold between 7:00 AM and Midnight
  • On Sundays, alcohol can be sold between Midnight and 1:00 AM and between 10:00 AM/Noon and Midnight
  • If your business has a Late Hours Certificate, your business can lawfully sell and serve alcohol between the hours of Midnight and 2:00 AM

The 10:00 AM-Noon Sunday exception only applies to alcohol sold alongside food. Essentially, this covers a Sunday meal such as brunch.

Hours of Consumption

Hours of consumption refer to when someone can finish consuming a beverage on your premises, outside of the hours of operation. The rule is up to 15 minutes after the hours of operation end. So on a Friday night, this would mean a patron must finish their drink by 12:15 AM.

Excessive Consumption

One of the most essential rules to follow are those that govern excessive consumption of alcohol. Disregarding this rule may lead to being held liable if someone hurts him or herself, or others, after consuming alcohol at your establishment. Aspects to excessive consumption include the following specifics.

Two Drink Rule

The TABC prohibits a business serving more than Two drinks to One person at One Time. What does this mean exactly, though? Essentially, that someone cannot order more than two drinks at a time. For example, if you have a party of two and they order two shots and two beers, that would be permissible. However, if the same party ordered two shots, two beers, and two cocktails, then they would have six drinks between two people and this would not be permissible.

Of course, there are some unique exceptions to this rule, these exceptions include:

  • One person can order a bottle of wine, which would be more than two glasses of wine, as long as the wine is being ordered with a meal
  • Items such as pitchers or buckets can be ordered as long as there are at least two people at the table

No Drinking Games

No business can sponsor or hold any contest that involves a contestant having to consume alcohol. They can also not sponsor or hold any contest that involves winning free, or reduced cost, alcohol as part of the prize.

No Bottomless Drinks

Any version of bottomless drinks which involve alcohol is strictly prohibited. This includes things like bottomless mimosas at brunches and things like “All-You-Can-Drink” promotions.

No Serving Anyone Who is Visibly Intoxicated

Additionally, a business cannot serve any customer who is visibly intoxicated, or who your staff considers to have already consumed an excessive amount of alcohol.

Minors

As you might expect, another major rule in the Texas Alcoholic Beverage Code is that it is illegal to sell to a minor. This includes both knowingly and negligently allowing minors to consume alcohol–i.e., if your business does not check for IDs and a minor purchases alcohol, you would be in violation of the TABC Code.

What Happens If You Violate TABC Serving Rules?

Violating TABC serving rules is a serious matter. If found in violation of these regulations you could face:

  • Revocation of your liquor license or permit
  • Closure of your business
  • Fines
  • Jail Time

You could also be liable in a court of law if someone harms him or herself or others after consuming alcohol at your business, if the injured party can prove your business violated the TABC Code.

How Can Legal Advice Benefit Your Business?

Understanding and following all city, county, state, and federal regulations regarding the sale of alcohol is an essential aspect of maintaining your license and your business. A lawyer who is experienced in Texas liquor law can ensure that your business is following all regulations, as well as suggest courses of action that may better protect your business in the future.