Quick answer: A Texas alcoholic beverage license is, by statute, a purely personal privilege and not property (Alcoholic Beverage Code §61.02). That matters, but it does not leave a holder without protections. Before TABC can suspend or cancel, the Code and the Texas Administrative Procedure Act (Government Code Chapter 2001) require notice, a hearing before a neutral judge at SOAH, a decision on the record, and a path to judicial review. The protections are procedural and concrete, not abstract.
Privilege, not property, and why it still matters
It is tempting to think of a license as something you own outright. Texas law is explicit that it is not. Under §61.02, a license is a “purely personal privilege,” is “not property,” cannot be seized in execution, does not pass by inheritance, and ends on the holder’s death.
What that framing changes is the source of a holder’s protections. They come less from a constitutional property right and more from the statutes that govern how TABC must proceed. Those statutes are detailed, and they give a holder real, enforceable steps. The sections below translate each protection into what actually happens in a case.
Notice of the alleged violation
Due process starts with knowing the case against you. When TABC concludes a violation occurred, it sends an administrative notice to the Primary user in the business’s AIMS account, stating the alleged violation and the deadline to respond. Suspension or cancellation requires notice and a hearing under §11.61 (permits) and §61.71 (licenses). The practical risk is a stale Primary contact, which can let the response window run unseen, so keeping the AIMS Primary user current is itself part of preserving the right to respond.
A hearing before a neutral decision-maker
A holder who contests the violation is entitled to a hearing, and that hearing is held at the State Office of Administrative Hearings (SOAH), an independent tribunal whose judges do not work for TABC. The separation is the point: the agency that alleges the violation does not also decide the facts. At the hearing, a holder can present evidence, cross-examine witnesses, and raise defenses, with the rules of evidence applied as in a non-jury civil case.
A decision on the record
The administrative law judge issues a Proposal for Decision with findings of fact and conclusions of law, based on the hearing record. TABC’s commissioners then make the final decision, adopting, rejecting, or modifying the proposal. That power is itself bounded, which is part of the protection: under the Administrative Procedure Act, the commissioners may change the judge’s findings of fact only on narrow grounds and must state the specific reason in writing, and they cannot simply substitute their own view of the facts.
The standard of proof
In the administrative case, TABC carries the burden and must prove the violation by a preponderance of the evidence, meaning more likely than not. That is a lower bar than the criminal standard of beyond a reasonable doubt, which is why a business can face license consequences even where a related criminal charge does not result in a conviction.
The right to seek review
A final order is not necessarily the end. As a general prerequisite, a party must first file a motion for rehearing, and judicial review then goes to district court under a substantial-evidence standard, which asks whether the record contains enough evidence a reasonable person could accept as supporting the agency’s decision, not whether the court would have reached the same result.
In practice
Suppose a permit holder believes a cited violation rests on a misidentified premises. The protections line up into a sequence: the AIMS notice tells the holder what is alleged and by when to act; rejecting the settlement moves the matter to a SOAH hearing, where the holder presents records to a judge who does not work for TABC; the judge issues a Proposal for Decision on that record; and if the final order still goes against the holder, a motion for rehearing preserves the right to district-court review. None of this depends on the license being “property”; all of it comes from the Code and the Administrative Procedure Act.
FAQ
Do I have a constitutional right to keep my TABC license?
A Texas license is a statutory privilege, not property (§61.02). The protections a holder has are procedural: notice, a hearing before SOAH, a decision on the record, and judicial review, provided by the Code and the Administrative Procedure Act.
Does TABC have to give notice before suspending a license?
Yes. Suspension or cancellation requires notice and a hearing under §11.61 and §61.71, and the process begins with an administrative notice in the business’s AIMS account.
Who decides a contested TABC case?
An administrative law judge at SOAH, an independent office, hears the case and issues a Proposal for Decision. TABC’s commissioners issue the final order based on that record.
What standard of proof applies?
In the administrative case, TABC must prove the violation by a preponderance of the evidence, a lower standard than the criminal beyond a reasonable doubt.
Current as of June 2026. This article is general educational information, not legal advice. Statutes and rules change; verify the current Texas Alcoholic Beverage Code and Administrative Procedure Act, and consult a qualified Texas attorney about your specific situation.