Quick answer: Under Texas Alcoholic Beverage Code §106.03, selling alcohol to a person under 21 with criminal negligence is a Class A misdemeanor, punishable under Texas Penal Code §12.21 by a fine of up to $4,000, up to one year in jail, or both, for the individual seller. Separately, the business can lose its license: under §106.13, TABC may cancel a retail license, permit, or private club registration permit, or suspend it, for up to 90 days for a first offense, six months for a second, and twelve months for a third within 36 consecutive months. The two consequences, criminal for the person and administrative for the business, can both follow from a single sale.
Two separate consequences from one sale
It helps to keep the seller and the business apart, because they face different tracks.
| Who | Track | Consequence |
|---|---|---|
| The individual who made the sale | Criminal (§106.03) | Class A misdemeanor: up to $4,000, up to 1 year in jail, or both |
| The licensed business | Administrative (§106.13) | License suspension or cancellation, escalating by offense |
The business penalty scale (§106.13)
This scale applies to a retail license or permit and to a private club registration permit. Cancellation is the most severe option at any step; suspension is capped at the day figures below.
| Offense | TABC sanction |
|---|---|
| First | Cancel, or suspend for up to 90 days |
| Second | Cancel, or suspend for up to 6 months |
| Third within 36 consecutive months | Cancel, or suspend for up to 12 months |
A business may be protected from this administrative action under the Safe Harbor provision (§106.14), which covers an employee’s sale or service to a minor or an intoxicated person. The license can be shielded only if all of the following were true:
- The person who made the sale was not an owner or officer of the business. Safe Harbor shields a license from an employee’s act, not from the conduct of an owner or officer selling themselves.
- Every employee who sells or serves alcohol, along with their immediate managers, was certified through a TABC-approved program within 30 days of hire.
- The business kept written responsible-service policies that employees read and understood.
- The business did not directly or indirectly encourage the violation.
- The business did not have three or more of these violations in a 12-month period.
If each condition is met, the license can be protected even though the individual seller is still prosecuted.
The ID defense, and where it fails
Section 106.03(b) provides a defense: a seller does not commit the offense if the buyer presented an apparently valid, government-issued ID with a photo and physical description consistent with their appearance, purporting to show they were 21 or older. Acceptable IDs include a Texas driver’s license or DPS identification card, a passport, or a military ID.
The defense has a hard limit. Under §106.03(d), it does not apply if the seller scanned the card’s electronically readable information under §109.61 and that data showed the ID was invalid. In other words, once the scan flags a fake, relying on the card is no longer a defense.
Put together, the rules point one way: scan the ID. If the scan (or electronic reader) shows a valid ID for someone 21 or older and the seller relies on it in good faith, that is a defense under §109.61. If the scan shows the ID is invalid, the §106.03(b) defense falls away. And since SB 650, scanning is required for most off-premise sales anyway, so a visual-only check can leave a seller exposed on two fronts at once: the underage sale and the failure to scan.
A 2025 change sellers should know
Senate Bill 650 (89th Legislature) added subsections (a-1) and (a-2) to §109.61, requiring sellers to access the electronically readable information on a buyer’s driver’s license, commercial driver’s license, or identification certificate to verify age in retail off-premise sales. A visual check alone is no longer sufficient. Key points:
- Effective September 1, 2025. Failing to scan is a Class A misdemeanor under §109.61, enforced by local police and prosecutors.
- TABC administrative enforcement is paused until September 1, 2027 under §109.61(a-2), with implementing rules due by then.
- The requirement applies broadly to off-premise retail sales, including by package stores and the off-premise sales of grocery and convenience retailers. It does not apply to a seller that operates a restaurant or holds a Brewpub (BP) license on the premises, and additional exceptions apply in certain circumstances.
- There is a defense to prosecution if the seller could not access the internet to scan, or if the buyer is 40 or older. Because the 40-or-older point is a defense to prosecution rather than a scan exemption, the cautious practice is to scan every buyer regardless of apparent age.
Furnishing alcohol to a minor
Providing alcohol to a minor is also covered. Under §106.06, purchasing for or giving alcohol to a minor (or, with criminal negligence, making it available) is a Class A misdemeanor, with an exception for a minor’s parent, guardian, spouse, or court-appointed custodian who is visibly present. It rises to a state jail felony if the minor, as a result of consuming the alcohol, causes another person serious bodily injury or death.
How these cases surface
TABC runs compliance (“sting”) operations statewide, sending youthful-looking participants into on-premise and off-premise establishments to see whether a seller will complete a sale. Participants are instructed not to lie about their age or present false identification.
In practice
A clerk sells to a 19-year-old during a TABC sting. Two things happen at once. The clerk faces a Class A misdemeanor charge in court. The store faces a first-offense administrative action under §106.13, up to a 90-day suspension. But if the store had certified all its sellers and managers within 30 days of hire, kept written policies, and had no pattern of these violations, it can raise Safe Harbor to protect the license, even though the clerk is still prosecuted. The individual and the business end up in different places from the same sale.
FAQ
Is selling alcohol to a minor a felony in Texas?
Selling to a minor under §106.03 is a Class A misdemeanor. Furnishing alcohol to a minor can become a state jail felony if it results in serious bodily injury or death.
What is the fine for selling alcohol to a minor?
For the individual seller, up to $4,000, up to one year in jail, or both, as a Class A misdemeanor. A court may also grant community supervision (probation) of up to two years instead of jail time.
Can the business lose its license over one sale?
A first offense can bring a suspension or cancellation of up to 90 days; penalties escalate to six months and then twelve months for repeat offenses within 36 months.
Does checking an ID protect me?
A valid-looking government ID can be a defense, but not if an electronic scan under §109.61 showed the ID was invalid.
Current as of June 2026. This article is general educational information, not legal advice. Statutes and penalties change; verify §106.03, §106.06, and §106.13 in the current Texas Alcoholic Beverage Code, and consult a qualified Texas attorney about your specific situation.