What Retailers Need To Know About Texas SB 650

Texas recently passed SB 650, a new law otherwise known as the Deshawn Jagwan Act. It requires retailers to electronically scan every customer's ID when selling alcohol. 

While package stores are exempt, convenience and grocery stores must comply, starting September 1, 2025.

You have two years before the Texas Alcoholic Beverage Commission (TABC) will start to enforce penalties, but smart retailers are preparing now.

Here's what you need to know and exactly how to prepare your store for compliance.

Why Is This Happening?

In April 2022, 18-year-old Deshawn Jagwan walked into a convenience store on prom night. He bought alcohol without showing ID — not once, but multiple times. Later that night, he died in a car crash.

His mother, Charlotte Stephens, set about creating change. For three years, she advocated for stricter ID verification. Her efforts resulted in Senate Bill 650, which passed with bipartisan support and now bears her son's name.

What Does It Mean for Your Store?

If you own a convenience or grocery store, the requirements are straightforward:

You must scan the barcode or magnetic strip on:

• Driver's licenses
• Commercial driver's licenses
• State-issued identification certificates

Manual entry is only allowed when your scanning equipment fails — and you'll need to document those instances.

Note: You’ll still need to visually confirm the ID matches the person in front of you.

What’s the Timeline?

September 1, 2025: SB 650 takes effect.

September 1, 2027: TABC begins enforcement and penalties.

Now through 2027: This is your grace period to implement systems and train staff.

While the TABC won’t enforce the law until 2027, getting set up now helps protect your reputation and shows you’re serious about protecting your community.

Why This Matters More Than You Think

Sure, you want to avoid TABC penalties, but how else does electronic ID scanning protect your business?

Obtain Legal Protection Through "Affirmative Defense"

If you scan an ID that turns out to be fake, but your scanner validated it as legitimate, Texas law shields you from liability. You followed the law — the technology failed, not you.

Eliminate Human Error

Your 19-year-old cashier working the late shift doesn't need to calculate birth dates or spot fake IDs anymore. The scanner handles the math and verification instantly.

Create an Audit Trail

Electronic scanning creates records that prove you checked IDs. When TABC comes knocking, you have documentation showing every age verification.

What Happens if You Don’t Comply?

After September 1, 2027, TABC can issue penalties for noncompliance. While specific fines aren't detailed in the law, typical TABC violations range from warnings to license suspension.

More importantly, selling to minors — even accidentally — can result in:

• Criminal charges for the clerk
• Civil lawsuits from affected families
• Loss of your alcohol license
• Damaged community reputation

Electronic scanning virtually eliminates these risks.

What Do You Need To Do Now?

Knowledge is nothing without action. To make sure your store is compliant, take the following steps:

• Audit your current setup: Does your point of sale (POS) system already support ID scanning? For example, our recommended grocery store POS provider, Markt POS, does.

• Budget for equipment: if your POS system doesn’t provide built-in ID scanning, you’ll need to budget for a new scanner. Costs vary between $200 and $500 per register.

• Update your procedures: What’s your ID checking process? Document it now: Scan every ID, visually verify the person matches the photo, and train every employee who handles alcohol sales.

• Get one step ahead: Start training your cashiers straight away. Build the habit of electronic scanning before September 2025.

• Test your affirmative defense: Make sure you’re covered! Your scanning system should create the proper documentation. If you’re questioned about a sale, you need records proving you scanned the ID.

While you might be concerned about the effects of SB 650 on your business, remember you have a two-year grace period. You can eliminate implementation costs and technical challenges if you work with a solid POS provider.

Ready To Meet Texas SB 650 Requirements?

The clock is ticking, but you still have time to prepare. While you might be worried about the disruption to your business, the law could actually provide some benefits:

• You’ll speed up checkout lines — scanning should only take a few seconds.
• Employees will need less training on spotting fake IDs.
• You’ll protect your reputation.
• You’ll gather better data, such as identifying peak alcohol sales periods.

Start by evaluating your current POS system's ID scanning capabilities. If you're already due for an equipment upgrade, choose a system with integrated ID verification.

Our grocery and convenience store POS systems include integrated ID scanning that keeps you compliant while speeding up checkout. Build your custom solution with our Build and Price tool or call us at 1-877-727-3548 to discuss your specific needs.