As restaurant entrepreneurs face difficult decisions with how to manage their businesses as we slowly emerge from the COVID-19 pandemic, some may consider closing their doors completely for a time.
We recognize that no option is good in this scenario. But suspending your TABC liquor license or permit might provide a way to preserve your Texas Alcoholic Beverage Commission permit for future use.
Why Suspend a TABC Liquor License?
When we aren’t dealing with a world turned upside down by COVID-19, TABC liquor license holders use the suspense option in the regular course of business. Most often, we see this option used when businesses shut down for a period to rebrand, remodel, and move a restaurant concept to a different location.
For example, a restaurant entrepreneur might decide it is time to close a certain restaurant location. TABC liquor licenses are valid for two years and can cost thousands of dollars. Suspending your liquor license is a bit like hitting “pause” on an active permit. Unlike cancelling your license, keeping the permit active, but suspended, has value for two reasons:
First, you get to use the remainder of time left on a permit you already paid for.
Second, keeping a permit active preserves that permit’s history of compliance. Mixed beverage permit holders who maintain good standing enjoy reductions in the biannual permit fees over time, beginning at $6,000 and reducing down to $1,500. Established permit holders often enjoy exemption from the often required conduct surety bonds.
Here are a few facts to keep in mind as you determine whether suspending your TABC liquor license is the best step for your business:
Suspending your permit does not modify the expiration date.
While your permit is suspended, you may not engage in any activities authorized under the permit, including purchasing alcohol from wholesalers and distributors.
Don’t forget that the Texas liquor license cannot be sold. The exact same owner/permit holder from the original restaurant must open the new restaurant, with few exceptions.
You must file additional paperwork with the TABC before using a permit at a new location.
Voluntarily suspending a permit simply removes the permit from the assignment of a specific location. This allows for a new permit to be issued at the location, but it does not allow someone else to use your permit.
Moving Forward with Suspension
Step One: Find Your TABC Liquor License
If you decide suspending your TABC liquor license is the next step for your business, the first thing you need to do is locate your original TABC liquor license. This is the document that you received in the mail from the TABC and are required to have posted at all times at the location.
Step Two: Mark the license as “Voluntarily Suspended”
Take the original license, and across it in pen, write “Voluntarily Suspended.” Then, in a blank area of the license, sign and date it.
Step Three: Deliver or email the liquor license to the TABC
Don’t jump in the car just yet. Who delivers the liquor license matters. Send it by the wrong person, and you may be wasting your time. You have two options here:
Option One: Send someone you previously listed in the TABC records
Send an individual who is listed on the TABC permit application as a controlling party or officer
In this scenario, an individual who is listed on the permit application must take the original permit AND a form of state issued identification (like a driver’s license) up to the local TABC office.
Upon arrival, they will sign in and tell the front desk they wish to ‘VOLUNTARILY SUSPEND’ the permit. The attendant will assist them from there.
Option Two: Give someone else authority and send that person
Send an individual who is identified in a notarized affidavit
In this scenario, if a controlling party who is listed on the TABC permit application is unable to deliver the permit to the TABC themselves, they can authorize another by way of notarized affidavit.
The authorized individual must take the original permit AND a form of state issued identification (like a driver’s license) up to the local TABC office.
Upon arrival, they will sign in and tell the front desk they wish to ‘VOLUNTARILY SUSPEND’ the permit. The attendant will assist them from there.
Before making any trips to the TABC, make sure to give them a call first. Many offices are open but only accept visitors by appointment.
Option Three: Scan and email the license to the TABC
Alternatively, at least for the time being, the TABC is accepting most submissions via email. Simply scan your marked up liquor license and email it to your regional office. The email address for your region is lic.region[insert region number]@tabc.texas.gov. The region numbers are listed in the left sidebar on the TABC Offices webpage. For example for Region 1, the email address is lic.region1@tabc.texas.gov. You can also confirm the email address by giving the office a call.
What to do if you have lost your liquor license
Don’t have or can’t find your liquor license? You will need to create an affidavit to submit to the TABC explaining that it is missing, lost, destroyed, etc. and that you would now like to suspend the license. This must be signed by a person authorized in the TABC’s records as a controlling party for the liquor license. Submit the affidavit to the TABC as described above.
Step Four: Determine your next steps
No rush here.
Take a breath.
Now that you have preserved your liquor license for future use, you can take a minute. Keep in mind, however, your liquor license expiration date. You will have to renew the liquor license if you would like to keep it in suspense.
Once you decide the next steps for your business, you can reinstate the liquor license at the same location or move it to another.
Stay Up to Date on COVID-19’s Impact on the TABC
We recognize this continues to be a trying time for the restaurant and alcohol industry, and so does the TABC. Closing your doors temporarily amid the coronavirus outbreak is enough of a difficult decision without adding in the confusion about how it might impact your TABC permit or liquor license.
We hope this will help ease your mind during this time and offer some guidance and resources to help you in this process. The TABC is also keeping its website up to date with answers to some of your most common questions. You can read up on existing TABC laws and coronavirus updates here.
