Sec. 106.13. SANCTIONS AGAINST RETAILER
(a) Except as provided in Subsections (b) and (c) of this section, the
commission or administrator may cancel or suspend for not more than 60
days a retail license or permit or a private club registration permit
if it is found, on notice and hearing, that the licensee or permittee
with criminal negligence sold, served, dispensed, or delivered an alcoholic
beverage to a minor or with criminal negligence permitted a minor to violate Section
106.05 of this code on the licensed premises.
NOTE: Sec. 106.13(a) applies to all retail licenses and permits, including private
club registration permits, irrespective of whether they hold a food and
beverage certificate. (b) For a second offense the commission or administrator
may cancel the license or permit or suspend it for not more than three
months. For a third offense within a period of 36 consecutive months the
commission or administrator may cancel the permit or suspend it for not
more than 12 months.
(c) The commission or administrator may relax the provisions of this section
concerning suspension and cancellation and assess a sanction the commission
or administrator finds just under the circumstances if, at a hearing,
the licensee or permittee establishes to the satisfaction of the commission
(1) that the violation could not reasonably have been prevented by the
permittee or licensee by the exercise of due diligence;
(2) that the permittee or licensee was entrapped; or
(3) that an agent, servant, or employee of the permittee or licensee violated
this code without the knowledge of the permittee or licensee.