(a) Except as provided in Subsections (b) and (c) of this section, the commission or administrator may cancel or suspend for not more than 90 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 § 106.04 or 106.05 of this code on the licensed premises.
(b) For a second offense the commission or administrator may cancel the license or permit or suspend it for not more than six 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.

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Terms Used In Texas Alcoholic Beverage Code 106.13


(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 or administrator:
(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.