INDUSTRY NOTICE: House Bill 1024 Pickup and Delivery of Alcoholic Beverages for Off-Premises Consumption

Eligible Mixed Beverage Permit (MB) holders and Private Clubs are now authorized to sell beer, wine and cocktails with food orders that are purchased for pickup or delivery under the following conditions:

Retailer eligibility to offer consumer pickup or delivery to consumers:

• Hold a Mixed Beverage Permit (MB) and a Food and Beverage Certificate (FB) for the permitted premises; or
• Hold a Private Club Registration Permit (N) and a Food and Beverage Certificate (FB) for the permitted premises.

General authority — Eligible Mixed Beverage (MB) and Private Club (N) permit holders may:

• Allow customers to pick up alcohol with food orders,
• Deliver alcohol with food orders to customers,
• Use third parties acting as an agent of the MB or N to make deliveries,
• Use independent contractors holding a Consumer Delivery Permit (CD) to make deliveries on their behalf.

Restrictions on what may be picked up or delivered — Eligible MB and N permittees may allow pickup or delivery of any number of malt beverages (defined as beer and ale prior to Sept. 1, 2021), wines and/or distilled spirits ONLY WHEN:

• The alcohol is accompanied by a food order that was prepared on the business’s premises; and

          Note: There is no required food-to-alcohol ratio.

• Malt beverages and wine are in their original container sealed by the manufacturer.
• Malt beverages and wine are in a tamper-proof container that is sealed by the permit holder (example: growlers of ale) and clearly labeled with the permit holder’s business name and the words “alcoholic beverage."
• Distilled spirits are in an original single-serving container sealed by the manufacturer and not larger than 375 milliliters (example: cocktail kit); or
• Distilled spirits are mixed with other beverages or garnishes and stored in a tamper-proof container (example: in-house mixed margarita) clearly labeled with the permit holder’s business name and the words “alcoholic beverage."
• “Tamper proof container” is defined as a “container that once sealed, clearly shows whether it has been opened. The term includes a cup or similar container that is placed into a bag that has been sealed with a zip tie or staple or sealed with shrink wrap or a similar seal.”

Limits on where alcohol may be delivered: Deliveries may only be made to a location:

• Where the sale of that type of alcohol is legal; and
• Within the county where the business is located, or up to 2 miles beyond the city limits in which the business is located if that city crosses a county line. 

Note: Permittees may NOT deliver alcohol to another licensed or permitted location.

Requirements for completing the customer pickup or delivery to the customer:

• Recipients must not be intoxicated;
• Recipients must present valid proof of their identity that confirms they are at least 21 years old before the alcoholic beverage is handed over to the recipient; and
• Recipients must sign a receipt (may be electronically signed) acknowledging the pickup/delivery, OR the individual representing the permitted business (restaurant employee or third party) must acknowledge the completion of the pickup or delivery through a software application. Permit holders should retain the signed receipts or the software application data for a period of one year following the transaction and should be able to make those receipts/data available to TABC upon request for audit purposes.

Restrictions on transporting alcohol

Alcoholic beverages that are sealed by the permit holder and are picked up or delivered under this authority may not be transported in the passenger area of a motor vehicle. Therefore, alcoholic beverages that are sealed by the permit holder must be placed in the trunk of a vehicle; the area behind the last upright seat of the vehicle, if the vehicle does not have a trunk; or a glove compartment or similar storage container that is locked (See Texas Penal Code, Section 49.031(a)(2)).

Revised to reflect that HB 1024 is now effective (May 12, 2021).