This is a supplement to the training materials presented in the Affordable Alcohol Training Responsible Beverage Service Education Program and must be reviewed. 

Liquor Authority for the State of Texas

Liquor Authority for the State of Texas:

• The Texas liquor authority is the Texas Alcoholic Beverage Commission.

• The phone number for the Texas Alcoholic Beverage Commission is (512) 206-3333.
• The website for the Texas Alcoholic Beverage Commission is: www.tabc.state.tx.us .
• The Texas Legislature is the body responsible for enacting the state’s alcohol laws.

Liquor License and Alcohol Beverage Laws for the State of Texas

Under Texas State Law:

• Licensees must uphold all the liquor laws for the state of Texas.
• Licensees must also be knowledgeable of and abide by any local ordinances as well.
• Licensees and their employees who hold a retail permit for the sale of beer may not act in a lewd, immoral or offensive manner on the retailer’s premises.

The following is the service hours for alcoholic beverages in the state of Texas:

• On-Premise Establishments may sell and service alcohol Monday – Saturday from 7am to midnight. A special late hours permit/license is required in order to be allowed to operate until 2am. Sunday’s hours are from 10am – midnight with food service or at a sports venue. A late hours permit allows service on Sunday from noon – 2am.
• Off-Premise and retail store licensees may sell alcohol Monday – Saturday from 10am to 9pm. Sales on Sundays are prohibited.

Regarding alcohol service restrictions, licensees are prohibited from:

• Serving, selling or offering 2 or more drinks for an amount which is less than what would be charged for the number of drinks actually served, sold or offered.
• Serving, selling or offering an unlimited amount of drinks for a fixed price.
• Serving, selling or offering drinks for a reduced price to customers who pay a fixed “buy in” price.
• Serving, selling or offering drinks at a price that is based on the number of drinks that the person consumed.
• Serving, selling or offering more than 2 drinks to an individual at one time.
• Serving, selling or offering more than one free drink on any given day to a certain group of people that is an identifiable segment or sub-group of the population. (An exception is offering one free drink as a celebration for a person’s birthday, anniversary or similar event.)
• Charging a cover, door or entrance fee in an effort to recover any losses from low or reduced drink prices.
• Conducting or participating in drinking contests or games.
• Awarding free drinks or reduced-price drinks as rewards for games or contests.
• Increasing the volume of alcohol in a drink without increasing the price of the drink accordingly.
• Reducing the price for drinks after 11pm.
• Encouraging or engaging in any practice that causes customers to drink to the point of excess or prevent the licensee and/or employees from being able to monitor the consumption of customers.

Exceptions to the restrictions on alcohol service may include:

• Those licensees who have entered into an agreement for their premises or a section of their premises to be used for a meeting of an organization or a private party.
• Those who hold a temporary permit, such as caterers, may also be exempt for a meeting of an organization or a private party.

Notwithstanding the alcohol service restrictions listed above, licensees may:

• At any time offer reduced price or free entertainment or food so long as such reductions are not based on the customer purchasing an alcoholic drink.
• Provide an alcoholic drink with a meal, hotel or motel package.
• Serve, sell or deliver bottled wine to a customer during the customer’s meal.
• Serve, sell or deliver alcohol by carafe, bucket, pitcher or in another similar container to groups of two or more customers at one time.

The Texas Alcoholic Beverage Commission Rules define an employee as:

• As one who sells, serves, dispenses, or delivers alcoholic beverages under the authority of a license or permit, including persons who immediately manage, direct, supervise, or control the sale or service of alcoholic beverages. Employee does not include officers of a corporate permittee or licensee who do not manage, direct, supervise, or control the sale or service of alcoholic beverages.

Under the Texas Alcoholic Beverage Commission Rules, sanctions can be issued against an employee and the trainee certification can be revoked for the following reasons:

• The employee provided false identification regarding their name, social security number, and/or birth date.
• The employee did not successfully complete an approved seller-training program.

• The employee acted unlawfully by serving or serving alcohol to a minor or intoxicated person.  
  • For a first offense - The employee must be re-certified within 30 days, which requires attending and passing an approved seller training program.
  • For a second offense, within 12 months – The employee cannot be re-certified for a period of 90 days.
  • For a third offense, within 12 months – The commission may revoke the seller-server certification for a period of one year.

Should an employee receive a notification of revocation or suspension of their trainee certification, they have the right to request a hearing within 21 days from the receipt of the notice.

Intoxication

Under Texas law:

• The state of intoxication does not only refer to alcohol but is used in reference to drugs and other substances as well.
• The state of public intoxication is defined as being under the influence of alcohol or other substances in a public place to such a level that that the person becomes a danger to others or even themselves.

• It is a Class C misdemeanor to be in a state of public intoxication. The only defense is that the alcohol or other substance is:    
  • Part of a medical treatment program that is supervised by a licensed physician.
  • Used for therapeutic reasons.

• It is unlawful to serve or sell alcohol to an intoxicated person (whether they are intoxicated from alcohol or other substances) and to do so may result in criminal negligence.

• Licensees and their employees who hold a retail permit for the sale of beer may not be intoxicated on the retailer’s premises. The penalty for being intoxicated is:     
  • Possible suspension of the original or renewal permits for up to 60 days.
  • Possible cancellation of the permit after notice and hearing.

For a first offense, the penalty for serving or selling alcohol to an intoxicated person is a misdemeanor punishable by:

• Imprisonment up to 1 year.
• A fine in the range of $100.00 to $500.00.

For repeat violations, the penalty for serving or selling alcohol to an intoxicated person is a misdemeanor punishable by:

• Imprisonment up to 1 year.
• A fine in the range of $500.00 to $1,000.00.
• Imprisonment and a fine.

Dram Shop Laws for the State of Texas

In Texas:

• It is unlawful and a licensee and their employees could be accountable if they sold, served or in any way provided alcohol to an intoxicated individual and then that person caused damage to property or injured or killed another person as a result of being intoxicated. Liability would result in the following situations:      
  • The person’s state of intoxication was the proximate cause of the damage or injury that was suffered.
  • At the time the intoxicated person was served, it was obvious that they were already intoxicated and posed a threat to others or to themselves.

• Dram Shop laws and liability provisions are only applicable to minors who are 18 years of age or older.

In Texas, Dram Shop laws were established by case law, specifically the case of El Chico vs. Poole:

• El Chico Restaurant was sued by the Poole’s for the wrongful death of their son because the restaurant had served alcohol to a person who was visibly intoxicated at the time.
• The person, Rene Saenz, then got in his car and ran a red light and hit Poole’s vehicle, killing him.
• Rene Saenz was found to have a BAC of .18 and he pleaded guilty to involuntary manslaughter. He had been at happy hour at the restaurant for three hours and during that time had been consuming 2 drinks for the price of one.

• During appeal, it was determined that the El Chico Restaurant did owe a duty of care to the public to not sell any alcoholic beverages to people who are visibly intoxicated.

Identification

Laws regarding identification in Texas:

·         Acceptable forms of identification are not regulated by the state. It is left to the licensee to request identification and to determine which forms of identification they will accept. Generally, licensees accept IDs that are issued from the state of Texas.

• It is unlawful and considered a felony to manufacture or produce with the intent of delivering, selling or distributing a forged or counterfeit state of Texas ID card or driver’s license.

• It is unlawful and considered a Class C misdemeanor to possess a forged or counterfeit state of Texas ID card or driver’s license:       
  • With the intent of delivering, selling or distributing the ID.
  • With the intent to use, circulate or pass the ID.

• It is unlawful and considered a Class C misdemeanor for a minor to possess any document that seems deceptively similar (a reasonable person would assume it to be valid) to a Texas issued driver’s license or state ID card with the intentions of using the document to represent themselves as being 21 years of age or older. In order for it not to be an offense, the document must have the words “Not a Government Document” printed in solid red letters at least 1/4 inch in height on both sides.

In the state of Texas, proper ID is:

• A valid driver’s license or state ID card issued by the Texas Department of Public Safety.
• An ID that displays a physical description that matches the appearance of the person presenting the ID.
• An ID that shows “Under 21” on the front if it was issued to a minor.

In the state of Texas, it is a violation to:

• To possess or display a Texas issued driver’s license or state ID card knowing that the ID:        
  • Has been altered.
  • Is fictitious.
  • Is not valid.

• Allow another person to use your Texas Driver’s License or ID.
• Possess more than one current and valid driver’s license or ID issued by the state of Texas.
• Give false information or documents when trying to obtain an original, renewal or duplicate Texas Driver’s License or ID.

Laws Regarding Age in the State of Texas

Laws regarding age:

• A person must be at least 21 years old to consume alcohol.
• A person must be at least 18 years old to serve or pour alcohol.

·         Employees between the ages of 18-20 may be allowed to operate a cash register at those establishments that have a food and beverage certificate.

·         In Texas, minors are defined as those who are under the age of 21.

• A minor may not purchase, try to purchase, possess or consume any alcoholic beverages. To do so is a criminal offense. Exceptions may be:       
  • The minor is purchasing alcohol as part of an enforcement operation and is under the direct supervision of a commissioned peace officer enforcing the provisions set forth under the Texas Alcoholic Beverage Code.
  • The minor is in possession of alcohol as part of their employment duties at a licensed establishment and such employment is not prohibited.
  • The minor is allowed to possess and/or consume alcohol when they are in the presence of a parent, legal guardian or spouse who is 21 years of age or older and are served the alcohol by them. The licensee or the licensee’s employees may not serve minors any alcohol and minors are not allowed to pay for any alcohol. 

·         Minors are not allowed to enter package stores unless they are in the company of a parent, legal guardian, or spouse who is 21 years of age or older.

·         It is a Class A misdemeanor to purchase or make available alcoholic beverages to a minor.

It is a Class C misdemeanor for a minor to falsely state that they are 21 years old or older and/or to use an ID that states they are 21 years old or older or to operate a motor vehicle with any amount of alcohol in their system. The penalty may be:

• Suspension of driver’s license.
• Prevention of getting a driver’s license for 30 days for the first violation, 60 days for the second violation and 180 days for the third violation.
• Mandatory attendance at an alcohol awareness course.
• Community service of 8-12 hours for the first violation and 20-40 hours for repeat violations.
• Imprisonment for up to 180 days.
• Fine in the range of $250.00 to $2,000.00.
• Fine and imprisonment for repeat offenses.

Selling Alcohol to a Minor:

• It is unlawful to sell alcoholic beverages to a minor and such actions could result in criminal negligence.

• Under Texas law, criminal negligence is defined as:         
  • Being criminally negligent with respect to circumstances surrounding his or her conduct or the result of his or her conduct when they ought to be aware of a substantial and unjustifiable risk that the circumstances exist or the result will occur. The risk must be of such a nature and degree that the failure to perceive it constitutes a gross deviation from the standard of care that an ordinary person would exercise under all the circumstances as viewed from the actor’s standpoint
• A person will not be held liable or criminally negligent if the minor:        
  • Falsely represents that they are 21 years of age or older.
  • Presents an apparently valid Texas ID that shows a physical description consistent with the minor’s appearance.

The penalty for serving or selling alcohol to a minor is a Class A misdemeanor punishable by:

• Confinement for up to 1 year.
• A fine up to $4,000.00.

There may be a defense for serving or selling alcohol to a minor:

• For the server: If they checked the minor’s ID using an electronic scan devise and the device read the ID as being valid and the person as being 21 years of age or older.
• For the licensee: If they provided scan devices for use by their employees and provided training.

Private Clubs

In Texas, terms related to Private Clubs are defined as follows:

• Private Club: An association of persons, whether unincorporated or incorporated under the laws of the State of Texas, for the promotion of some common object.
• Member: An individual who has been admitted to membership.
• Guest: An individual who is personally known by the member or one of the member’s family and who is admitted to the club premises by personal introduction of, or in the physical company of, the member or one of the member’s family.

Regulations regarding Private Clubs:

• It is unlawful for a private club to conduct business as an open saloon.
• The members of the club own all the alcohol on the premises of the club, therefore when a member pays for a drink that they ordered they are actually paying for the “service” of the drink.
• Alcohol may only be served and consumed by members, guests of members or family of members.

• Guests are not allowed to pay for the service of alcohol. All charges must be billed directly to the member or the temporary member who is sponsoring the guest. An exception to this is hotel guests:       
  • The manager of a hotel who operates a private club within the hotel may offer a guest card to a hotel guest who is lodging at the hotel overnight or longer.
  • The person using the guest card may be served alcohol in either the private club or in their hotel room but at the time of service is not allowed to pay for the service of alcohol. Any charges should be billed to the hotel manager’s account. The manager can then collect any charges along with other hotel charges when the hotel guest checks out.
• A temporary member:        
  • May have use of the private club for up to three days with each invitation.
  • May not invite more than three other people to accompany them and must remain in the presence of any guests that they bring.
• Licensees may issue a temporary membership card to any person who intends to be served alcohol on their premises, except:         
  • An individual who is already a member of the club
  • A guest of a member of the club.
  • A preliminary member.
  • A patron of the hotel (if the private club is located in the hotel) who is at the hotel for overnight lodging and is a guest of the hotel manager who is a member of the club.
• Licensees may not serve alcohol to a person holding a temporary membership card, unless the temporary membership card:          
  • Was issued by the commission to the club.
  • Was issued by the club’s manager or another individual who is in charge.
  • Has been completely filled out.
  • Has been signed by the club’s manager or another individual who is in charge.
  • Is in temporary member’s possession.
• Licensees may not serve alcohol to any person who is not a member, a member’s family, a guest, a temporary member, or preliminary member, or is under the age of 21 or is intoxicated.
• Only club members may pay for alcohol service.

The following procedure should be used to verify someone’s membership or status as a guest (in order to be able to serve alcohol and be able to accept payment for service) in a Private Club:

• Ask the individual if they are in fact a member or part of the member’s family. If they respond yes, then confirm membership by:           
  • Verifying the person’s club membership card.
  • Verifying the person’s temporary membership card.
  • Checking the club’s listing of current members whether it is a written print-out or on an electronic business machine.

Additional Notes:

Fetal Alcohol Syndrome: There is no known time period in which it is safe for a pregnant woman to consume alcohol nor is it known if there is an amount that is safe to consume. Prenatal exposure to alcohol causes birth defects and is often referred to as fetal alcohol syndrome. Approximately 400 children were born with FAS and almost 4000 were born with some type of alcohol-related condition in Texas in the year 2000.

ADDENDUM: TEXAS. DRAM SHOP LAW

CHAPTER 2. CIVIL LIABILITIES FOR SERVING BEVERAGES

Sec. 2.01. DEFINITIONS. In this chapter:

(1) "Provider" means a person who sells or serves an alcoholic beverage under authority of a license or permit issued

under the terms of this code or who otherwise sells an alcoholic beverage to an individual.

(2) "Provision" includes, but is not limited to, the sale or service of an alcoholic beverage.

Sec. 2.02. CAUSES OF ACTION.

(a) This chapter does not affect the right of any person to bring a common law cause of action against any individual whose consumption of an alcoholic beverage allegedly resulted in causing the person bringing the suit to suffer personal injury or property damage.

(b) Providing, selling, or serving an alcoholic beverage may be made the basis of a statutory cause of action under this chapter and may be made the basis of a revocation proceeding under Section 6.01(b) of this code upon proof that:

(1) at the time the provision occurred it was apparent to the provider that the individual being sold, served, or provided with an alcoholic beverage was obviously intoxicated to the extent that he presented a clear danger to himself and others; and

(2) the intoxication of the recipient of the alcoholic beverage was a proximate cause of the damages suffered.

(c) An adult 21 years of age or older is liable for damages proximately caused by the intoxication of a minor under the age of 18 if:

(1) the adult is not:

(A) the minor’s parent, guardian, or spouse; or

(B) an adult in whose custody the minor has been committed by a court; and

(2) the adult knowingly:

(A) served or provided to the minor any of the alcoholic beverages that contributed to the minor’s intoxication; or

(B) allowed the minor to be served or provided any of the alcoholic beverages that contributed to the minor’s intoxication on the premises owned or leased by the adult.

NOTE: The change in law made by this Act applies only to a cause of action that accrues on or after September 1, 2005. A cause of action that accrues before September 1, 2005, is governed by the law in effect immediately before that date, and that law is continued in effect for that purpose. (Acts of the 79th Legislature, Regular Session, 2005)

Sec. 2.03. EXCLUSIVITY OF STATUTORY REMEDY.

(a) The liability of providers under this chapter for the actions of their employees, customers, members, or guests who                                                                                 are or become intoxicated is in lieu of common law or other statutory law warranties and duties of providers of alcoholic beverages.

(b) This chapter does not impose obligations on a provider of alcoholic beverages other than those expressly stated in this chapter.

(c) This chapter provides the exclusive cause of action for providing an alcoholic beverage to a person 18 years of age or olde