The way food establishments in Amarillo get their permits — and how much they pay for them — is about to change.
At this week’s Amarillo City Council meeting, Environmental Health Director Anthony Spanel presented the first reading of an ordinance that would amend the Amarillo Municipal Code to comply with new statewide rules passed during the 89th Texas Legislative Session.
The update stems from Senate Bill 1008, which creates a uniform system for food establishment permitting across Texas. The law, which takes effect September 1, prohibits cities from requiring a food permit or license for certain types of food establishments — or for their employees — unless the Texas Department of State Health Services (DSHS) would also require one in areas under its jurisdiction.
In short, if the state doesn’t require it, the city can’t require it either.
Fee Structure Changes to Match the State
Before SB 1008, Amarillo calculated food permit fees through a cost-recovery method. The city reviewed its operational costs annually and adjusted rates based on the size of the facility, the type of business (such as mobile food units), and whether the same operator held multiple permits. This meant local officials had more flexibility in setting rates, but it also meant fees could differ significantly from other Texas cities.
Under the new law, local control over those rates is removed. Cities must now follow the exact standards set by DSHS, which determines permit fees based on an establishment’s annual gross sales.
“You can choose one of two methods, either assessing fees based upon gross sales or assessing fees based upon risk. We are choosing to follow exactly what the State is doing, assessing fees based upon gross sales, and that’s almost exactly what all of my colleagues across the state are doing,” Spanel told the council.
The new system uses a three-tiered fee schedule:
Tier 1: $0 – $49,999.99 in annual gross sales = $258.00
Tier 2: $50,000.00 – $149,999.99 in annual gross sales = $515.00
Tier 3: $150,000.00 and above in annual gross sales = $773.00
Additional categories have fixed fees:
Mobile Food Units: $258.00
Schools: $258.00
This change means that some Amarillo food businesses will see their annual permit costs go up, while others will pay less, depending on their sales volume. But all will now follow the same rules that apply statewide.
Why the State Changed the Law
SB 1008 is part of a broader trend in Texas toward uniform regulations for certain industries. Proponents say statewide standards prevent a patchwork of local rules that can be difficult for businesses — especially those with multiple locations in different cities — to navigate.
By setting the same permitting rules everywhere, the legislature aims to reduce administrative burdens for both businesses and local governments. Critics, however, point out that removing local control limits a city’s ability to tailor health and safety oversight to its own circumstances.
For Amarillo, the change means less flexibility in adjusting fees to match the city’s actual inspection and enforcement costs. In the past, if inspection costs rose, the city could adjust fees accordingly. Now, DSHS sets the rates for the entire state, regardless of local expenses.
Mobile Food Unit Permits to Move to State
Another change is on the horizon, and this one won’t take effect until July 2026. House Bill 2844 will shift all permitting for mobile food units — such as food trucks and trailers — from counties, cities, and public health districts to the State of Texas.
“HB 2844 will strip all mobile food unit permitting from any county, city or public health district, and gives it back to the state of Texas,” Spanel said. “So, one permit issued through the State of Texas: that is good for the entire State.”
That means a food truck permitted in Houston, for example, could operate in Amarillo without needing a separate local permit.
Local governments may still be involved in inspections. Spanel explained that cities could enter into an interlocal agreement with the state to perform inspections on the state’s behalf, with the possibility of being reimbursed for that work. Whether Amarillo will take that route remains undecided.
What This Means for Amarillo Businesses
For restaurant owners and other food operators, the most immediate impact will come this fall when the city switches to the state’s gross-sales-based fee structure. Businesses will need to know their annual sales to determine their fee tier.
Because mobile food units are also listed in the DSHS fee schedule, they will follow the state rate of $258.00 starting September 1. But two years later, they will move entirely to a state-issued permit under HB 2844.
For schools operating cafeterias or food service programs, the $258.00 fee will apply regardless of sales volume.
The ordinance under consideration by the city council will formally align Amarillo’s code with these new requirements. The first reading this week was a procedural step, with additional readings and a vote still to come before the changes become official at the city level.
Adapting to Statewide Rules
For city staff, aligning with the new laws means shifting from a locally tailored system to one in lockstep with DSHS. While that reduces some administrative decision-making, it also requires ensuring businesses understand the new rules — especially those accustomed to Amarillo’s old cost-recovery method.
Businesses will no longer see permit fees vary based on factors like facility size or the number of permits held. Instead, gross sales will be the primary determinant.
For some smaller establishments, the flat $258.00 Tier 1 fee could be less than what they previously paid. But larger operations in Tier 3 may see higher annual costs.
Mobile food operators have two changes to track: first, the shift to the state fee schedule in September, and later, the complete move to state-issued permits in 2026.
Looking Ahead
SB 1008 and HB 2844 reflect the state’s continued interest in streamlining food service regulations. Supporters argue that consistency helps business growth, while opponents worry about the loss of local oversight.
For Amarillo, the next steps will involve finalizing the ordinance, educating local businesses about the changes, and deciding whether to contract with the state for inspections once HB 2844 takes effect.
For now, Spanel’s message is straightforward: Amarillo will follow the state’s lead.
“We are choosing to follow exactly what the State is doing,” he said.
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