What Documents and Disclosures a TABC Application Requires

Published Read 4 min read

On this page

An original TABC application asks for four things: who the applicant is and who stands behind it, the history of those people, who owns and controls the location, and where the money came from. On TABC’s paper Initial Application (Form L-IA), the alternative to applying in AIMS, that means every officer, director, stockholder, and trustee holding ownership; a Personal History Sheet for each officer and majority owner; the property owner, lease, and any management or other agreements involving alcohol; and the total investment with every source of funds. The applicant signs it under oath.

The applicant and the people behind it

The Initial Application (Form L-IA) starts with the business: the trade name, location and mailing addresses, the owning entity, and its Social Security or federal employer identification number. It then requires disclosure of all officers, directors, stockholders, and trustees holding ownership in the business, with each person’s title and share or membership percentage. Entity forms for corporations, limited liability companies, and partnerships (Forms L-C, L-LLC, and L-P) provide space for larger ownership structures, and an ownership information form (L-OIC) records the owner type.

An applicant that already holds an active TABC license or permit under the same tax number, with no change in ownership since its last application, can skip much of this section. A change in ownership since then means completing it again, with new history sheets for anyone added.

Personal history and background

Every officer and majority owner completes a Personal History Sheet (Form L-PHS). It asks for:

  • identifying details, marital status, and the spouse’s information;
  • anyone over 18 other than a spouse living with the person;
  • residential addresses for the past five years, and, for anyone who has not lived in Texas during the previous 12 months, an official criminal background check from the FBI or the state police of each state lived in during those five years; and
  • citizenship or legal status, with supporting documents.

The application itself asks whether any listed person, or a spouse, has been finally convicted of or received deferred adjudication for a list of offenses, including any felony and offenses involving drugs, gambling, prostitution, firearms, or drink solicitation, and whether any listed person has had a TABC license or permit canceled. Where the answer is yes, an explanation is attached.

The location and who controls it

  • Property owner. The individual or entity that owns the land and building, with an Owner of Property form (L-OP) for each owner if land and building are held separately.
  • Lease terms. Expiration dates and options, the monthly rent, and any other payments to the landlord.
  • Management, concession, and sublease agreements. The parties, their principals, and copies of the agreements.
  • Franchise. Whether a franchise agreement applies and, if so, whether the applicant keeps exclusive control of all phases of the purchase, sale, and service of alcohol, as Section 109.53 requires.
  • Other alcohol-related agreements. Copies of any other agreement that involves alcohol in any way.
  • Premises diagram. Required under Section 11.49 if the license will not cover the entire location address, and for a hotel or motel location.

The money

The applicant states the total investment from all sources for the location and lists every source of funds advanced to the business, with the name, tax number, terms, and amount. TABC asks applicants to be prepared to provide copies of all financing documents. The form’s signature page also restates the Tied House prohibition on overlapping ownership and other prohibited relationships between manufacturers, wholesalers, and retailers.

Other items that depend on the permit

  • projected first-year sales of alcohol, food, and other items, and attestations about food service, for a Food and Beverage Certificate;
  • answers on distance to schools and residences, which decide whether written notices are required;
  • the date a required 60-day sign was posted;
  • for brewers, wineries, wholesalers, and distributors, questions on federal permits, contract brewing, fee interest bonds, and territorial agreements; and
  • the Required Certifications form (L-CERT), which must accompany the application.

The oath

The application is signed under oath before a notary, and the signer swears that the application and attachments are correct. Section 101.69 of the Alcoholic Beverage Code makes a knowingly false statement in a sworn application an offense punishable by 2 to 10 years in the Texas Department of Criminal Justice, and the history sheet warns that a false statement disqualifies the applicant.

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.

Related posts:

  1. What Are an Applicant’s Options When a TABC Application Is Denied When TABC's administrator finds a legal ground to deny an application, the Alcoholic Beverage Code gives the applicant the right to request a hearing before the State Office of Administrative......
  2. Publication and Newspaper Notice Requirements for a TABC Application Applicants for most original Texas alcohol permits and for beer licenses must publish notice of the application in two consecutive issues of a newspaper of general circulation, published in the......
  3. What Signage a TABC Application and an Operating Permit Require TABC signage comes in two stages. Before issuance, an applicant for an on-premise license or permit at a location not licensed for on-premises drinking in the previous two years posts......
  4. What Happens to an Application When Local Certification Stalls, and How the Sequence Is Unblocked An application waiting on a city, county, or Comptroller certification does not move toward a permit. TABC treats the Required Certifications (L-CERT) as part of a complete application, so the......
  5. Griffith & Hughes PLLC, TABC Licensing and Alcohol Law A Texas law firm focused exclusively on TABC licensing and alcohol law. At a Glance Firm Griffith & Hughes PLLC (formerly Griffith Firm) Focus Texas Alcoholic…...
  6. Griffith & Hughes PLLC, TABC Licensing and Alcohol Law Griffith & Hughes PLLC is a Texas law firm that, by its own description, concentrates its entire practice on Texas Alcoholic Beverage Commission (TABC) licensing and alcohol law. The firm......
  7. What Entity Structures Work Best for Holding a TABC Permit, and Why? TABC's application provides for sole proprietors, partnerships, corporations, and limited liability companies, and the choice among them matters most when owners change. A TABC permit cannot be transferred, so a......
  8. What Residency and Citizenship Rules Apply to TABC Applicants The text of the Alcoholic Beverage Code still says an applicant should be a United States citizen who has been a Texas citizen for the year before applying, and that......
  9. How a TABC Violation Is Defended at a SOAH Hearing At a State Office of Administrative Hearings (SOAH) hearing, TABC usually carries the burden of proving the violation by a preponderance of the evidence, meaning more likely than not, and......
  10. What Is an L-Cert (Certificate of Local Compliance), and Why Does TABC Require It Before Issuing a Permit? The L-Cert, also called the Certificate of Local Compliance, is TABC's Required Certifications form (Form L-CERT): the set of sign-offs that new license and permit applications carry. In it, the......
  11. Which TABC Permit Fits a Restaurant, and How Does the Alcohol-to-Food Sales Ratio Drive That Choice? Texas has no single restaurant permit. A restaurant that pours spirits needs a Mixed Beverage Permit (MB); one that serves only wine and beer can operate on a Wine and......
  12. What is the TABC AIMS system and how has it changed the way licenses are obtained? AIMS, the Alcohol Industry Management System, is TABC's online portal for applying for and managing licenses and permits, and for renewals, reports, product registration, and excise taxes. It replaced mailed......
  13. What Conduct Surety Bonds and Performance Bonds Does TABC Require, and Who Is Exempt? TABC requires three kinds of bonds. A conduct surety bond of $5,000, or $10,000 near a public school, applies to most on-premise retailers and to some off-premise retailers near schools.......
  14. What Is a TABC Emergency Suspension Order, and When Can the Agency Issue One? An emergency suspension order lets TABC suspend a license or permit before any hearing. The Alcoholic Beverage Code gives the agency two such tools. Under Section 11.614, TABC may suspend......
  15. How Criminal History Affects TABC Permit Eligibility for Owners and Officers Criminal history affects a TABC application under more than one standard, and the permit or license decides which. For most permits, such as a Mixed Beverage Permit, the Alcoholic Beverage......

Leave a comment

Your email address will not be published. Required fields are marked *