Texas Teen Beer Buying: Paper License Power?

Texas has strict rules for the sale of alcohol, and there are many different types of alcoholic beverage licenses and permits. The Texas Alcoholic Beverage Commission (TABC) regulates the sale of alcohol in the state, and there are several requirements that must be met to obtain a license. These include being over 21, having no felony convictions in the last five years, and having no violations of state liquor laws within the past two years. The type of license required depends on the business, and there are different licenses for manufacturers, wholesalers, and retailers. The application process can be completed online and usually takes around 45-60 days, but it's important to start early as it can sometimes take up to a year to get approved.

Texas liquor license requirements

Texas liquor licenses and permits are issued by the Texas Alcoholic Beverage Commission (TABC). The TABC's Licensing Division supports customers across the alcoholic beverage industry, processing close to 100,000 licenses and permits each year.

The type of license or permit you need will depend on your business model. Texas divides its alcoholic beverage licenses and permits into three categories: Manufacturing, Wholesale, and Retail.

Manufacturing

This category includes Distilleries, Wineries, Breweries, Beer Manufacturer’s, and Non-Resident Seller’s Permits. Manufacturing licenses and permits authorize the production, transportation, storage, and sale of alcoholic beverages under certain conditions.

Wholesale

This category includes General Class B, Local Class B, and Wholesaler’s licenses, along with Branch, Local, and General Beer Distributor’s Licenses. Wholesale licenses and permits authorize the distribution, transportation, storage, and sampling of alcoholic beverages, as well as the authority to import products.

Retail

This category includes Mixed Beverage Permits, Wine and Beer Retailer’s On or Off Premise Permits, Package Store Permits, and Local Distributor Permits. Retail licenses and permits authorize the sale, transportation, and storage of alcoholic beverages for on-premise or off-premise consumption, as well as the ability to hold events at temporary locations.

In addition to these categories, there are also ancillary licenses and permits that allow for extended hours, catering, and temporary permits.

To obtain a Texas liquor license, you must be at least 21 years old, have no tax debts, and demonstrate that you are of "good moral character." You will be ineligible if you have a felony conviction within the last five years, have violated the Texas liquor and alcohol code in the last two years, or if your violation of the alcohol code was within the past six months and involved "moral turpitude."

The application process for a Texas liquor license can be completed through the TABC's Alcohol Industry Management System (AIMS) or by submitting a paper application. Applying through AIMS is faster, while paper applications take considerably longer to process. The application requirements vary depending on the type of license or permit, but generally, you will need to fill out an application form, obtain required certifications, and submit the application to your local TABC office.

Liquor license application process

The Texas Alcoholic Beverage Commission (TABC) regulates the liquor licensing process in Texas. The TABC offers a wide range of licenses and permits, including:

• Manufacturing Permits (e.g., Winery Permit, Brewer's License)
• Distribution Permits (e.g., General Distributor's License, Branch Distributor's License)
• Retail Permits (e.g., Mixed Beverage Permit, Wine and Malt Beverage Retailer's Permit)
• Other specialty permits (e.g., Consumer Delivery Permit, Nonprofit Temporary Event Permit)

The specific application process may vary depending on the type of license or permit being sought. However, here is a general overview of the steps involved in obtaining a liquor license in Texas:

• Figure out which permit or license you need: With dozens of licenses and permits available, it is crucial to determine which one fits your business model. The TABC website provides detailed information on each type of license and permit.
• Obtain the requisite certifications and complete any required courses: Depending on the type of license or permit, you may need to obtain certifications from the city, county, and comptroller. In some cases, you may also be required to complete a TABC Licensing Course, which provides valuable information and training on the regulations and laws surrounding the sale and consumption of alcohol in Texas.
• Create an account on the Alcohol Industry Management System (AIMS): AIMS is an online portal used by the TABC to process applications for licenses and permits. You will need to create an account on AIMS to apply for your desired license or permit.
• Apply for your license and get a tracking number: Once you have completed the necessary steps and gathered the required documentation, you can submit your application through the AIMS portal. After submitting your application, you will receive a tracking number that you should keep safe, as you will need it to check your application status and for any further communication regarding your application.
• Submit your application and pay the fee: After meeting all the eligibility criteria and completing any mandatory courses, you can formally submit your application through the AIMS portal and pay the associated fee. The licensing fee will vary depending on the type of license or permit required.
• Wait for approval: The review process for liquor license applications can take several weeks to several months. During this time, the Texas Alcoholic Beverage Commissioner may request additional documentation, background checks, or certifications, depending on the type of license or permit applied for. Therefore, it is essential to be prepared and responsive to any requests to avoid delaying the process.
• Maintain your liquor license: Once you obtain your liquor license, it is your responsibility to maintain it by complying with all relevant laws and regulations. This includes displaying the required signage, adhering to authorized selling times, ensuring staff certifications, and promptly reporting any disturbances or violations.

It is worth noting that the process can be complex and time-consuming, and there may be additional requirements or steps depending on the specific circumstances of your business. As such, it is recommended to start the licensing process well in advance of when you need the license and consider seeking professional assistance from a Texas license service provider to ensure a smooth and efficient application process.

Liquor license cost

The cost of a liquor license in Texas depends on the type of license and the number of business locations. The Texas Alcoholic Beverage Commission (TABC) offers 43 types of liquor licenses and permits, and you may need to obtain multiple licenses depending on your business type.

The average cost of a beer license in Texas is around $2,081, while the average cost for a license for any other type of alcohol is $2,283.

For example, a Brewer’s Permit (B) costs $650, while a Manufacturer’s License (BA) costs $1,000. A General Distributor’s License (BB) costs $1,000, and a Retail Dealer’s On-Premise License (BE) costs $650. A Retail Dealer’s Off-Premise License (BF) costs $650, and a Wine and Beer Retailer’s Permit (BG) costs $1,000.

The most expensive license is the Manufacturer’s License (BA) for businesses with more than five locations, which costs $17,451. On the other hand, a Temporary Auction Permit can be as low as $25.

TABC licenses and permits expire two years after the issue date, and they must be renewed. The license fees are separate from any local fees, which may also apply.

It is important to note that you may need to budget for multiple licenses, as some businesses will require more than one type of license. For example, you may need separate licenses for serving alcoholic beverages and transporting alcohol to your business premises.

Application Process

The TABC website provides all the necessary forms for applying for a liquor license. The application process can be complex, and it is recommended to consult with a business attorney licensed in Texas to ensure the correct completion of the application.

The application process typically includes providing detailed information on how the business was financed, whether the business property is owned or leased, all vehicles that would be used for transporting alcohol, and the names and contact information of all owners/proprietors.

Additionally, you will need to have a Federal Employer Identification Number (FEIN) and register your business with the federal government and the state of Texas before applying for a liquor license.

The time frame for obtaining a liquor license in Texas can vary from 45 to 60 days or more, depending on the type of license and certification in the county and city of the proposed location. Therefore, it is advisable to start the application process as early as possible.

Eligibility

To be eligible for a Texas liquor license, you must be at least 21 years old, have no tax debts, and demonstrate good moral character. Additionally, you cannot have any felony convictions within the past five years or violations of the Texas alcohol/liquor code within the past two years.

TABC Licensing Courses

While not mandatory, it is recommended to take a TABC licensing course before applying for a liquor license to gain a better understanding of your license responsibilities. A copy of the completion certificate can be included with your license application.

Obtaining a liquor license in Texas can be a complex and time-consuming process, and it is important to ensure that you meet all the eligibility requirements and have all the necessary documentation in place before applying. The cost of a liquor license can vary significantly depending on the type of license and the number of business locations.

Liquor license renewal

In Texas, liquor licenses are issued by the Texas Alcoholic Beverage Commission (TABC). The TABC offers a wide range of licenses and permits, including those for manufacturing, wholesale, and retail.

Liquor licenses in Texas are valid for two years from the date of issue. It is important to note that these licenses must be renewed before the expiration date. Renewal applications can be submitted online through thesection Alcohol Industry Management System (AIMS) or via mail. It is recommended to renew 15 to 30 days before the expiration date to avoid any disruptions to business operations.

The renewal process requires the following information:

• Trade name of the business
• Ownership information
• Contact information for the TABC to reach out
• License or permit number and issue date
• Bond information (if applicable)
• Previous 12 months of sales data, including alcohol sales, food sales, other sales, and total sales

For any changes to the above information since the initial license issuance, additional steps may be required, such as submitting hard copies of proof of changes.

Renewal fees must be paid, and there may be additional city or county charges. These fees can be checked using the TABC fee chart. Late renewals, submitted after the expiration date, will incur a $100 late fee for each permit or license, and operations may need to be ceased until renewal is complete.

It is important to stay on top of the renewal process as failure to renew on time will result in the cancellation of the permit or license.

Liquor license violations

The Texas Alcoholic Beverage Commission (TABC) is responsible for enforcing the Texas Alcoholic Beverage Code and TABC Administrative Rules. Any business with a state license or permit to manufacture, distribute, or sell alcoholic beverages is subject to action from the TABC if they violate the law or TABC rules.

Section 1: Public Safety Violations

TABC violations that endanger public health or safety include:

• Serving alcohol to a minor.
• Serving alcohol to an intoxicated person.
• Allowing a retail employee or manager to work while intoxicated.

Public safety violations can result in an administrative case against the business, along with criminal charges for the individual accused of the violation. These criminal charges are often prosecuted by a local county attorney.

Section 2: Administrative Violations

Administrative violations of the Code or Rules includesection 3:

• Improper advertising.
• Prohibited relationships between the three tiers of the alcohol industry.

Businesses have the right to contest charges before an administrative judge. After a license or permit holder receives a violation, they may go through the administrative hearing process.

Section 3: Penalty Calculations

On March 1, 2021, TABC adopted a new methodology for calculating penalty amounts, including a new rule, penalty policy, and penalty calculation worksheet. TABC provides the following resources for understanding penalties:

• Public Safety Penalty Chart.
• Regulatory Base Penalty Chart.
• Penalty Policy for Regulatory Violations.
• Penalty Calculation Worksheet.

TABC's Public Inquiry System allows users to search for information about license and permit holders, including the ability to view public complaints lodged against them and related violations.

Frequently asked questions