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The former TABC officer was wrong, sort of. The Alcoholic Beverage Code, and the rules promulgated under it, specify exactly what sign must be posted in licensed premises. He was correct in that any location that does not sell alcohol may post the red 51 sign if they so desire. It would have no legal meaning if they do post it but there is no law or rule against it. Remember that the law makes the location prohibited based on the TABC determination, not on the actual sales or the the signs.

On Spec's we have a small potential problem. The law does say the 51% must be for on premises consumption, but their application has no way for TABC to determine how much is for on premise and how much for off premise consumption if they allow both. I think of Spec's as a package store, which normally means no on premise consumption but they may have a license that allows it for tastings and what not. This is why I recommend always checking the public database on the TABC site if you think it is posted wrong.