The History of the TABC and Why It Exists
The Texas Alcoholic Beverage Commission, or TABC, is the state agency that regulates every part of the alcohol business in Texas, from the brewery to the bar. It was created in 1935 as the Texas Liquor Control Board, right after Prohibition ended, to put the legal alcohol trade under state control.
Born from the end of Prohibition
When the 21st Amendment repealed national Prohibition, regulating alcohol became each state's job. In 1935 the Texas Legislature passed the Texas Liquor Control Act, which created the Texas Liquor Control Board. Its early jobs, as the Texas State Historical Association describes them, were to promote temperance, protect the public, collect alcohol taxes, and fight bootlegging, underage drinking and organized crime.
Key moments
| When | What happened |
|---|---|
| 1935 | The Texas Liquor Control Act creates the Texas Liquor Control Board. |
| 1970 | The agency is renamed the Texas Alcoholic Beverage Commission. |
| 1971 | The Legislature lets local voters decide whether bars and restaurants in their area can sell mixed drinks, the start of liquor by the drink. |
| 1977 | The Liquor Control Act is updated and becomes today's Alcoholic Beverage Code. |
| May 2021 | House Bill 1024 takes effect, letting restaurants with a Mixed Beverage Permit and a Food and Beverage Certificate sell beer, wine and cocktails to go with food orders. The to-go rules. |
Why Texas has a TABC
- Public safety: TABC's stated mission is to protect public health and safety by enforcing the Alcoholic Beverage Code fairly and consistently. That covers sales to minors, sales to intoxicated people, and problem locations.
- The three-tier system: Texas keeps makers, distributors and retailers separate. TABC watches for illegal ties between them, such as a brewer paying a bar to carry its beer, and oversees how alcohol flows from the producer to the customer.
- Licensing: every business that makes, moves or sells alcohol needs a TABC license or permit. What each permit code means.
- Taxes: TABC collects excise taxes from distributors, wholesalers and manufacturers. The Comptroller handles the mixed beverage taxes bars pay. How those taxes work.
- Local choice: whether an area is wet or dry, and what can be sold there, is still decided by local elections. TABC licenses and enforces within those rules.
Criticism along the way
The agency hasn't been without controversy. Over the decades it faced charges of being too close to the industry it regulates, of uneven enforcement, and of internal problems, according to the Texas State Historical Association. Like every Texas agency, it is periodically reviewed by the Sunset Advisory Commission, which decides whether it should continue and how it should change.
What TABC does today
TABC regulates the sale, taxation, importation, manufacturing, transport and advertising of alcohol in Texas. It issues and renews tens of thousands of licenses, inspects businesses, investigates complaints, trains servers and delivery drivers through approved programs, and suspends or cancels permits when businesses break the law. Its license records are public, which is what lets anyone look up a bar's permits on Bar Sales IQ.
Look up any bar's TABC permits and compliance status. Search Bar Sales IQ
Sources: TABC About Us · Handbook of Texas: Texas Alcoholic Beverage Commission. This guide explains what public records show; it isn't legal advice. Check with TABC before acting on a licensing question.
Questions
When was the TABC created?
In 1935, as the Texas Liquor Control Board, after Prohibition ended. It was renamed the Texas Alcoholic Beverage Commission in 1970.
What does the TABC do?
It regulates the sale, taxation, importation, manufacturing, transport and advertising of alcohol in Texas, licenses alcohol businesses, and enforces the Alcoholic Beverage Code.
Does the TABC collect alcohol taxes?
TABC collects excise taxes from distributors, wholesalers and manufacturers. The Texas Comptroller collects the mixed beverage taxes paid by bars and the sales tax on store purchases.
When did Texas allow liquor by the drink?
In 1971 the Legislature let local voters decide whether bars and restaurants in their area could sell mixed drinks.