A review of the passage of House Bill 1545, also known as the 2019 TABC Sunset Bill, has compelled the Texas Alcoholic Beverage Commission (TABC) to majorly revamp their alcohol license process and fees. The following changes are set to be effective September 1, 2021.
What changes are occurring?
Texas is moving from 75 to 37 licenses and permits, which includes the elimination of 14 licenses/permits and 24 licenses/permits being consolidated into others. Going forward, a business should only need one license/permit to carry out all of their business activities in Texas, opposed to the several licenses/permits they may have needed in the past.
Additionally, these changes have led to a shift into a new Alcohol Industry Management System (AIMS). The new license structure and fees will be in the AIMS online system launching on September 1, and the eliminated licenses/permits will not exist in AIMS. Licensees should make sure they can access their accounts to prepare for any changes to their licenses that might occur during the next renewal period. Please note that all active licenses will remain active until their set expiration dates.
The following changes are occurring to specific licenses:
- Out-of-State Winery Direct Shipper’s Permit (DS) – No change to the permit authority, however, the cost of the permit is going down to $500 as there is no longer an application fee associated with the permit.
- Nonresident Brewer’s License (BN) – This license combines the previous Nonresident Manufacturer’s License (BS) and the Nonresident Brewer’s Permit (U) into one consolidated license. Holders of this single license can now sell beers of all ABVs to Texas wholesalers, eliminating the previous distinction between the authority to ship “beer” versus “ale.” The fee for a Nonresident Brewer’s License is now $1,500.
- Nonresident Seller’s Permit (S) – Holders of this license can no longer supply malt beverages with an ABV greater than 5% to Texas distributors and will need a Nonresident Brewers License (BN) to do so. The fee for a Nonresident Seller’s Permit is now $1,800.
- The above licenses will be available in the AIMS system on September 1, 2021.
As always, Sovos ShipCompliant will continue to monitor for any further changes made by the Texas Alcoholic Beverage Commission.
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