How TABC’s Penalty Schedule Turns a Violation Into a Fine, Suspension, or Cancellation

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TABC consequences run along a spectrum: a monetary penalty at one end, suspension of the permit in the middle, cancellation at the far end. Where a given violation lands on that spectrum is set by a published schedule of sanctions that scales the result by the severity of the violation and the business’s history. Because the schedule is structured rather than improvised, a business can gauge its exposure in advance by working out where its situation sits.

The schedule and its structure

The schedule of sanctions sits in TABC’s administrative rules (Chapter 34), and it is built around the same two-family split that classifies violations: one schedule for health, safety, and welfare (public safety) violations, and base penalties for regulatory violations. Each violation type is assigned a category based on its severity and on the penalty needed to deter it. The schedule is non-exclusive, meaning the absence of a particular violation from the chart does not limit TABC’s authority to enforce the Code.

The consequences scale roughly like this:

  • Monetary penalty (civil penalty). Most sanctions short of cancellation can carry a monetary penalty. The Code sets the civil penalty between $150 and $25,000 for each day the permit was to have been suspended, so the fine is tied to the suspension length the violation draws.
  • Suspension. The Code authorizes suspension of a permit for up to 60 days for a range of violations. A business assessed a suspension may, in TABC’s discretion, be allowed to pay a civil penalty in lieu of serving the suspension, though TABC is not required to offer that option.
  • Cancellation. The most severe outcome, cancellation, ends the permit. Unlike a suspension, cancellation is not paired with an in-lieu monetary option.

What moves a violation up or down the scale

Two factors do most of the work in determining where a violation falls.

Severity of the violation. A public safety violation generally carries heavier consequences than a regulatory one. The public safety penalty chart, for instance, reflects suspensions in a range for first offenses, with the figure rising for repeats.

History. Repeat violations escalate the penalty. A repeat is generally counted as the same type of offense occurring within a defined window (commonly a 12-month period). A first, isolated violation and a third of the same kind within a year are treated very differently, with the later ones drawing materially steeper consequences.

The Code also lets TABC consider the economic benefit a business gained from a violation, so that breaking a rule and paying a fine does not become a cheaper-than-compliance cost of doing business. In other words, the calculation can account for what the violation earned, not just what category it falls in.

How a violation maps to an outcome, in practice

The path from violation to penalty is: identify the violation type and its category on the schedule, find the base penalty or suspension range for that category, then adjust for the business’s history and other factors the Code allows. A first regulatory slip and a repeat public safety violation start from different points on the chart and move in different directions from there. None of this is arbitrary; it is a structured calculation, even though TABC and the Commission retain discretion within it and are not strictly bound to a worksheet’s number.

What to do

To gauge exposure, identify where a given violation falls on the schedule, whether it is public safety or regulatory, and account honestly for history, because repeats are where penalties climb. The single most severe outcome, cancellation, including how a single non-compliant sale can reach it, is covered separately.

Disclaimer: This page is for general informational and educational purposes only and is not legal advice. Texas alcoholic beverage law and TABC rules change, and the penalty for any specific violation depends on the facts, the category, and the history. Reading this page does not create an attorney-client relationship. For guidance on a specific violation or penalty, consult a licensed Texas attorney, and confirm current rules and penalty figures against their primary source before relying on them.

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