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Texas dram shop law, Alcoholic Beverage Code §2.02: the statute text explained

The official text of the Texas dram shop statute on the civil liability of a provider of alcohol, and the related seller-training rule, in plain language.

7 min readPublished October 27, 2026Last updated October 27, 2026Edited by Joseph Budzinski, CTO, InjuryClaimGuide

The short answer

Texas Alcoholic Beverage Code chapter 2 says providing, selling or serving an alcoholic beverage "may be made the basis of a statutory cause of action under this chapter" upon proof of two things: that at the time the provision occurred it was apparent to the provider that the individual "was obviously intoxicated to the extent that he presented a clear danger to himself and others", and that the intoxication "was a proximate cause of the damages suffered" (Alco. Bev. Code §2.02(b)). For providing an alcoholic beverage to a person 18 or older, chapter 2 "provides the exclusive cause of action" (§2.03(c)). An attorney can tell you how these rules apply to a specific situation.

This entry provides general informational guidance and is not legal advice.

Key facts (as of 2026-10-27)

  • Two things must be proved. What was apparent to the provider at the time of the provision, and proximate cause (§2.02(b)).
  • A "provider" is defined. A person who sells or serves an alcoholic beverage under a license or permit issued under the Code, or who otherwise sells an alcoholic beverage to an individual (§2.01(1)).
  • The claim against the drinker is separate. Chapter 2 does not affect a common law cause of action against the individual who drank (§2.02(a)).
  • Exclusive remedy. For providing an alcoholic beverage to a person 18 years of age or older, chapter 2 is the exclusive cause of action (§2.03(c)).
  • A separate rule for minors. An adult 21 or older can be liable for damages proximately caused by the intoxication of a minor under 18, on the conditions in §2.02(c) (§2.02(c)).
  • Employees and seller training. Section 106.14 sets when an employee's actions are not attributable to the employer, for the Code provisions it lists (§106.14(a)).
  • In the Code since 1987. The history lines show chapter 2 added by Acts 1987, 70th Leg., ch. 303, effective June 11, 1987; §2.02 last amended in 2005 (79th Leg., ch. 643, H.B. 2868) and §2.03 in 2003 (78th Leg., ch. 456).

What does chapter 2 say?

The official text of Tex. Alco. Bev. Code §§2.01-2.03, as published by the Texas Legislature:

Sec. 2.01. DEFINITIONS. In this chapter:

(1) "Provider" means a person who sells or serves an alcoholic beverage under authority of a license or permit issued under the terms of this code or who otherwise sells an alcoholic beverage to an individual.

(2) "Provision" includes, but is not limited to, the sale or service of an alcoholic beverage.

Sec. 2.02. CAUSES OF ACTION. (a) This chapter does not affect the right of any person to bring a common law cause of action against any individual whose consumption of an alcoholic beverage allegedly resulted in causing the person bringing the suit to suffer personal injury or property damage.

(b) Providing, selling, or serving an alcoholic beverage may be made the basis of a statutory cause of action under this chapter and may be made the basis of a revocation proceeding under Section 6.01(b) of this code upon proof that:

(1) at the time the provision occurred it was apparent to the provider that the individual being sold, served, or provided with an alcoholic beverage was obviously intoxicated to the extent that he presented a clear danger to himself and others; and

(2) the intoxication of the recipient of the alcoholic beverage was a proximate cause of the damages suffered.

(c) An adult 21 years of age or older is liable for damages proximately caused by the intoxication of a minor under the age of 18 if:

(1) the adult is not:

(A) the minor's parent, guardian, or spouse; or

(B) an adult in whose custody the minor has been committed by a court; and

(2) the adult knowingly:

(A) served or provided to the minor any of the alcoholic beverages that contributed to the minor's intoxication; or

(B) allowed the minor to be served or provided any of the alcoholic beverages that contributed to the minor's intoxication on the premises owned or leased by the adult.

Sec. 2.03. EXCLUSIVITY OF STATUTORY REMEDY. (a) The liability of providers under this chapter for the actions of their employees, customers, members, or guests who are or become intoxicated is in lieu of common law or other statutory law warranties and duties of providers of alcoholic beverages.

(b) This chapter does not impose obligations on a provider of alcoholic beverages other than those expressly stated in this chapter.

(c) This chapter provides the exclusive cause of action for providing an alcoholic beverage to a person 18 years of age or older.

Source: Tex. Alco. Bev. Code ch. 2, statutes.capitol.texas.gov. Text last checked October 27, 2026.

What does it mean in plain language?

  • There are two different kinds of claim. One is a common law claim against the person who drank, which chapter 2 leaves in place (§2.02(a)). The other is the statutory claim against a provider, which chapter 2 creates and limits (§2.02(b)).
  • The test looks at what was apparent to the provider. Section 2.02(b)(1) asks whether, at the time of the provision, it was apparent to the provider that the person was obviously intoxicated to the point of a clear danger to himself and others. The statute ties the test to that moment.
  • Both parts are required. Section 2.02(b) joins its two parts with "and": the obvious-intoxication part and the proximate-cause part.
  • The same proof can matter to a license. Section 2.02(b) also says the same proof may be the basis of a revocation proceeding under §6.01(b) of the Code, which is a separate proceeding about a license or permit.
  • Chapter 2 sets the outer limit for providers. Section 2.03 says a provider's liability under chapter 2 is in lieu of other common law or statutory warranties and duties, that chapter 2 imposes no obligations beyond those it states, and that it is the exclusive cause of action for providing alcohol to a person 18 or older.
  • The minors rule has its own conditions. Section 2.02(c) applies to an adult 21 or older who is not the minor's parent, guardian or spouse, or an adult to whose custody a court has committed the minor, and who knowingly served or provided the alcohol, or knowingly allowed it to be served or provided on premises the adult owns or leases.

What does §106.14 say?

The official text of Tex. Alco. Bev. Code §106.14(a):

Sec. 106.14. ACTIONS OF EMPLOYEE. (a) For purposes of this chapter and any other provision of this code relating to the sales, service, dispensing, or delivery of alcoholic beverages to a person who is not a member of a private club on the club premises, a minor, or an intoxicated person or the consumption of alcoholic beverages by a person who is not a member of a private club on the club premises, a minor, or an intoxicated person, the actions of an employee shall not be attributable to the employer if:

(1) the employer requires its employees to attend a commission-approved seller training program;

(2) the employee has actually attended such a training program; and

(3) the employer has not directly or indirectly encouraged the employee to violate such law.

Source: Tex. Alco. Bev. Code §106.14, statutes.capitol.texas.gov. Text last checked October 27, 2026.

In plain language, the section lists three conditions, all joined by "and": the employer requires seller training, the employee actually attended it, and the employer did not encourage the employee, directly or indirectly, to break the law. The "commission" is the Texas Alcoholic Beverage Commission (§1.04(10)), and §106.14(b) says the commission sets the minimum requirements for approved seller training programs. This entry states §106.14 only as the statute states it; it does not describe how courts have applied the section to claims under chapter 2. Whether and how §106.14 applies to a particular claim is a question for an attorney.

When was this checked, and can it change?

The statute text above was last checked on October 27, 2026, against the official text published by the Texas Legislature. The Legislature can amend a statute in any session, and courts can refine how a rule is applied. The Legislature convenes in regular session on the second Tuesday in January of each odd-numbered year (Gov't Code §301.001), so the next regular session begins on January 12, 2027. This entry is scheduled to be rechecked against the official text by April 2027 and again after the 2027 regular session ends.

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Frequently asked questions

What is the Texas dram shop law?
It is chapter 2 of the Texas Alcoholic Beverage Code. Section 2.02(b) says providing, selling or serving an alcoholic beverage may be made the basis of a statutory cause of action upon proof that it was apparent to the provider, at the time the provision occurred, that the individual was obviously intoxicated to the extent that he presented a clear danger to himself and others, and that the recipient's intoxication was a proximate cause of the damages suffered.
Who is a "provider" under chapter 2?
Section 2.01 defines a provider as a person who sells or serves an alcoholic beverage under authority of a license or permit issued under the Alcoholic Beverage Code, or who otherwise sells an alcoholic beverage to an individual.
Does chapter 2 replace a claim against the person who drank?
No. Section 2.02(a) says chapter 2 does not affect the right of any person to bring a common law cause of action against any individual whose consumption of an alcoholic beverage allegedly resulted in causing that person to suffer personal injury or property damage.
What does §106.14 say about employees?
Section 106.14(a) says that, for purposes of chapter 106 and any other provision of the Code relating to the sale, service, dispensing or delivery of alcoholic beverages to a minor, an intoxicated person or a non-member of a private club on the club premises, or the consumption of alcoholic beverages by any of those persons, the actions of an employee shall not be attributable to the employer if the employer requires its employees to attend a commission-approved seller training program, the employee has actually attended such a program, and the employer has not directly or indirectly encouraged the employee to violate such law. Whether and how it applies to a particular claim is a question for an attorney.
Can InjuryClaimGuide tell me whether a bar or restaurant is responsible for my crash?
No. InjuryClaimGuide is a legal advertising service. We do not apply the law to anyone's situation and do not evaluate any claim. An attorney can advise you about your specific situation.

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