Relating to requiring the use of electronically readable information to verify a purchaser's age in the retail sale of alcoholic beverages.
ModeratePlan for compliance
Medium Cost
Effective:2025-09-01
Enforcing Agencies
Texas Alcoholic Beverage Commission (TABC) • Local Law Enforcement • County/District Attorneys
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: September 1, 2025
Compliance Deadline:September 1, 2025 (Criminal liability begins immediately; do not wait for the TABC enforcement phase).
Agency Rulemaking: TABC is required to adopt implementing rules regarding scanning and data retention by September 1, 2027.
*Regulatory Gray Zone:* Between Sept 1, 2025, and Sept 1, 2027, businesses are subject to criminal statutes enforced by local police, but TABC cannot suspend licenses for non-compliance.
Immediate Action Plan
1.Audit POS Hardware: Confirm all registers selling alcohol have functional 2D barcode scanners by July 1, 2025.
2.Disable Data Storage: Contact POS vendors to ensure scanned data is verified but not stored, to avoid privacy violations.
3.Update SOPs: Revise Standard Operating Procedures to mandate scanning for every transaction, removing "visual check only" discretion.
4.Establish Outage Logs: Create a manual or digital logbook for internet outages to protect against liability during technical failures.
5.Train Management: Ensure store managers understand that local police can cite clerks for misdemeanors starting 9/1/2025, regardless of TABC's administrative moratorium.
Operational Changes Required
Contracts
POS Vendor Agreements: Immediately audit contracts to ensure Point of Sale software supports driver's license scanning and manual entry for damaged IDs.
Data Privacy Clauses: You must verify that your POS vendor does not automatically retain/store scanned PII (Personally Identifiable Information). Retaining this data without TABC authorization is a statutory violation.
Insurance: Review Liquor Liability policies; carriers may mandate scanning hardware as a condition of coverage effective 9/1/2025.
Hiring/Training
Employee Handbooks: Update policies to classify "failure to scan" as a terminable offense. Staff must understand they face personal criminal liability (Class A Misdemeanor).
Protocol Training: Train staff on the specific "Manual Entry" protocol for damaged IDs and the "Visual Inspection" fallback protocol strictly for internet outages.
Reporting & Record-Keeping
Connectivity Logs: To utilize the statutory defense for failure to scan, you must prove a "disruption of connectivity." IT must implement automated logging to document internet/data outages at the POS level.
Data Purge: Ensure systems scan for verification but immediately purge data to comply with Section 109.61(b).
Fees & Costs
Hardware CAPEX: Budget immediately for 2D barcode scanners for all checkout lanes if not currently equipped.
Software Upgrades: Potential fees for POS software updates to enable age-gating and disable data retention.
Strategic Ambiguities & Considerations
Data Retention Rules: The statute prohibits data retention "unless the commission by rule requires." TABC may eventually mandate a short-term retention period (e.g., 24 hours) for audit purposes. Watch the 2026-2027 rulemaking docket closely.
"Over 40" Defense: The law provides a defense to prosecution if the purchaser is over 40. It is unclear if TABC will interpret this as a procedural exemption (scanning not required) or merely an affirmative defense after a citation. Operational Advice: Scan everyone regardless of apparent age until TABC clarifies.
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According to Forbes, Texas has the third-highest rate of any state of drunk drivers under age 21 being involved in fatal crashes (0.94 per 100,000 licensed drivers).
Although under Texas law it is illegal to sell alcohol to a minor, the front line of defense against selling alcohol to minors�convenience and grocery store clerks�are often faced with making determinations of whether or not an identification presented is actually valid to allow the holder to purchase alcohol. The rise in fake identification cards, made to look very much like state identification and driver licenses, has made it more difficult for store clerks to determine if an identification presented is real or fake.
Clerks' failure to be able to determine whether or not a presented identification is valid or not can lead to dangerous situations, such as minors being sold and allowed to consume alcohol. One such preventable death occurred in Dallas in the spring of 2022.
Deshawn Jagwan, an 18-year-old Woodrow Wilson High School senior, went to a convenience store on his prom night and, using a fake ID, made multiple alcohol purchases at multiple times with multiple store clerks. Deshawn consumed the alcohol, became intoxicated, and was killed when the vehicle he was driving crashed.
S.B. 650 seeks to ensure that there are no more stories like Deshawn's.
S.B. 650 will require all establishments selling alcohol to, by January 1, 2027, begin using a system that will swipe identification cards to determine if they are real or fake�a system commonly in use at multiple retailers around the country.
The committee substitute will exclude liquor stores, as you must be 21 to enter a liquor store.
As proposed, S.B. 650 amends current law relating to requiring the use of electronically readable information to verify a purchaser's age in the retail sale of alcoholic beverages.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the Texas Alcoholic Beverage Commission in SECTION 2 of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 109.61, Alcoholic Beverage Code, by adding Subsections (a-1) and (a-2), as follows:
(a-1) Requires a person to access electronically readable information on a driver's license, commercial driver's license, or identification certificate for the purpose of verifying a purchaser's age in any retail sale of an alcoholic beverage.
(a-2) Prohibits the Texas Alcoholic Beverage Commission from taking any disciplinary action against the holder of a permit or license issued under the Alcoholic Beverage Code for a violation of Subsection (a-1) for the retail sale of an alcoholic beverage made before September 1, 2027. Provides that this subsection expires September 1, 2028.
SECTION 2. Requires the Texas Alcoholic Beverage Commission, not later than September 1, 2027, to adopt rules to implement Section 109.61(a-1), Alcoholic Beverage Code, as added by this Act.
Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB650 by West (Relating to requiring the use of electronically readable information to verify a purchaser's age in the retail sale of alcoholic beverages.), As Introduced
No significant fiscal implication to the State is anticipated.
It is assumed that any costs associated with the bill could be absorbed using existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
SB650 (The Deshawn Jagwan Act) mandates the use of electronic ID scanning for all off-premise alcohol sales, effectively rendering visual inspections legally insufficient. While TABC administrative penalties are paused until 2027, criminal liability (Class A Misdemeanor) for failure to scan attaches on September 1, 2025, affecting all convenience stores, grocery retailers, and package stores. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025 (Criminal liability begins immediately; do not wait for the TABC enforcement phase).
Q
Who authored SB650?
SB650 was authored by Texas Senator Royce West during the Regular Session.
Q
When was SB650 signed into law?
SB650 was signed into law by Governor Greg Abbott on June 22, 2025.
Q
Which agencies enforce SB650?
SB650 is enforced by Texas Alcoholic Beverage Commission (TABC), Local Law Enforcement and County/District Attorneys.
Q
How urgent is compliance with SB650?
The compliance urgency for SB650 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of SB650?
The cost impact of SB650 is estimated as "medium". This may vary based on industry and implementation requirements.
Q
What topics does SB650 address?
SB650 addresses topics including alcoholic beverage regulation, electronic information systems, alcoholic beverage commission, texas, vehicles & traffic and vehicles & traffic--driver's licenses.
Legislative data provided by LegiScanLast updated: November 25, 2025
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