TITLE 16. ECONOMIC REGULATION

PART 3. TEXAS ALCOHOLIC BEVERAGE COMMISSION

CHAPTER 33. LICENSING

The Texas Alcoholic Beverage Commission (TABC) adopts amendments to 16 TAC §33.2, relating to Application and Fee Payment Procedures, 16 TAC §33.23, relating to License and Permit Fees, 16 TAC §33.44, relating to Excise Tax Bonds, 16 TAC §33.45, relating to Bonds for Alternating Brewery Proprietorships and Contract Brewing Arrangements, 16 TAC §33.57, relating to Application Withdrawn, 16 TAC §33.75, relating to Penalties and Suspension, 16 TAC §33.93, relating to Notification Requirements, 16 TAC §33.100, relating to General Provisions, 16 TAC §33.103, relating to Notice and Opportunity for Hearing, and 16 TAC §33.104, relating to Contents of Emergency Order.

TABC also adopts the repeal of 16 TAC §33.101, relating to Authority of the Executive Director, and 16 TAC §33.105, relating to Appeals of Emergency Orders.

The amendments and repeals are adopted without changes to the proposed text as published in the November 29, 2024, issue of the Texas Register (49 TexReg 9677). The amended rules will not be republished.

REASONED JUSTIFICATION. The adopted amendment to §33.2(a) removes a reference to physical application forms provided by TABC to reflect the fact that applications may now be filled out and submitted in a digital format through the agency's online business portal.

The adopted amendment to §33.23(c) reduces the minimum number of days that a nonprofit temporary event permit may be issued from two days to one day. The agency's goal is to reduce the regulatory burden on applicants.

The adopted amendments to §§33.44(b) and 33.75(c) update internal rule citations to the appropriate, current rules to conform with previous changes to rule numbering.

The adopted amendments to §33.45 remove references to statutes and terms that correspond with the former brewer's permit that was eliminated by House Bill 1545 (2019).

The adopted amendment to §33.57(b) alters the method for calculating the minimum number of days that must elapse before the agency may withdraw an application. Currently, §33.57(b) provides that TABC may consider an application withdrawn if an applicant fails to respond to requests from the agency for additional information or for remittance of a fee within ten business days. The adopted amendment changes that timeline to ten calendar days to account for the fact that the agency's online business portal is generally accessible 24 hours a day, seven days a week. However, the agency still retains discretion to withdraw the application after that time period.

The adopted amendment to §33.93(b) removes a reference to reporting changes to the contact information for seller-server schools. The requirements for seller server school certificates are found in Chapter 50 and the agency is relocating that language to §50.24 in a separate and simultaneous rulemaking.

The adopted amendments to §33.100: (1) clarify that emergency orders suspending licenses or permits are initially issued without a hearing, as provided by Alcoholic Beverage Code §11.614; (2) better align the rule language with the statutory language in §11.614(a); and (3) remove obsolete and redundant language regarding the applicability of the Open Meetings Act and Administrative Procedure Act. TABC also adopts the repeal of §33.101 because it is redundant due to the adopted amendments to §33.100. The adopted amendments to §33.103 better align the rule language with the statutory language in §11.614(c) and clarify that the administrative law judge's decision to affirm, modify, or set aside the order is final. The adopted changes to §33.103 render §33.105 obsolete, therefore TABC is repealing §33.105. Finally, the adopted amendment to §33.104 simply adds language clarifying that the term of the suspension must be in the agency's emergency order.

SUMMARY OF COMMENTS. TABC did not receive any comments on the proposed amendments or repeals.

SUBCHAPTER A. APPLICATIONS

16 TAC §33.2

STATUTORY AUTHORITY. TABC adopts the amendments pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §§5.31, 11.614(d), 30.08(2), 62.14(d), 63.05(d). Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Section 11.614(d) authorizes TABC to "prescribe procedures for the determination and appeal of an emergency order issued under {section 11.614}." Section 30.08(2) directs TABC to "adopt rules which it determines to be necessary to implement and administer the provisions of {Chapter 30}, including…the duration for a permit issued under {Chapter 30}." Sections 62.14(d) and 63.05(d) both authorize TABC "by rule {to} require an entity that is a party to an alternating brewery proprietorship or contract brewing arrangement to post with the commission a bond in an amount determined by the commission…"

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 25, 2025.

TRD-202501023

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Effective date: April 14, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 206-3491


SUBCHAPTER B. FEES AND PAYMENTS

16 TAC §33.23

STATUTORY AUTHORITY. The amendments are adopted pursuant to TABC's rulemaking authority under §§5.31 and 30.08(2) of the Texas Alcoholic Beverage Code. Section 5.31 provides that TABC may prescribe and publish rules necessary to carry out the provisions of the Texas Alcoholic Beverage Code. Section 30.08(2) directs TABC to "adopt rules which it determines to be necessary to implement and administer the provisions of {Chapter 30}, including...the duration for a permit issued under {Chapter 30}."

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 25, 2025.

TRD-202501024

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Effective date: April 14, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 206-3491


SUBCHAPTER C. BONDS

16 TAC §33.44, §33.45

STATUTORY AUTHORITY. The amendments are adopted pursuant to TABC's rulemaking authority under §§5.31, 62.14(d) and 63.05(d) of the Texas Alcoholic Beverage Code. Section 5.31 provides that TABC may prescribe and publish rules necessary to carry out the provisions of the Texas Alcoholic Beverage Code. Sections 62.14(d) and 63.05(d) both authorize TABC "by rule {to} require an entity that is a party to an alternating brewery proprietorship or contract brewing arrangement to post with the commission a bond in an amount determined by the commission…"

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 25, 2025.

TRD-202501025

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Effective date: April 14, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 206-3491


SUBCHAPTER D. APPLICATION REVIEW AND PROTESTS

16 TAC §33.57

STATUTORY AUTHORITY. The amendments are adopted pursuant to TABC's rulemaking authority under §5.31 of the Texas Alcoholic Beverage Code. Section 5.31 provides that TABC may prescribe and publish rules necessary to carry out the provisions of the Texas Alcoholic Beverage Code.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 25, 2025.

TRD-202501027

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Effective date: April 14, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 206-3491


SUBCHAPTER E. EVENTS AT A TEMPORARY LOCATION

16 TAC §33.75

STATUTORY AUTHORITY. The amendments are adopted pursuant to TABC's rulemaking authority under §5.31 of the Texas Alcoholic Beverage Code. Section 5.31 provides that TABC may prescribe and publish rules necessary to carry out the provisions of the Texas Alcoholic Beverage Code.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 25, 2025.

TRD-202501028

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Effective date: April 14, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 206-3491


SUBCHAPTER F. LICENSE AND PERMIT ACTION

16 TAC §33.93

STATUTORY AUTHORITY. The amendments are adopted pursuant to TABC's rulemaking authority under §5.31 of the Texas Alcoholic Beverage Code. Section 5.31 provides that TABC may prescribe and publish rules necessary to carry out the provisions of the Texas Alcoholic Beverage Code.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 25, 2025.

TRD-202501029

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Effective date: April 14, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 206-3491


SUBCHAPTER G. EMERGENCY ORDERS

16 TAC §§33.100, 33.103, 33.104

STATUTORY AUTHORITY. The amendments are adopted pursuant to TABC's rulemaking authority under §§5.31 and 11.614 of the Texas Alcoholic Beverage Code. Section 5.31 provides that TABC may prescribe and publish rules necessary to carry out the provisions of the Texas Alcoholic Beverage Code. Section 11.614 authorizes TABC to prescribe procedures for the determination and appeal of emergency orders temporarily suspending a license.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 25, 2025.

TRD-202501026

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Effective date: April 14, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 206-3491


16 TAC §33.101, §33.105

STATUTORY AUTHORITY. The repeals are adopted pursuant to TABC's rulemaking authority under §§5.31 and 11.614 of the Texas Alcoholic Beverage Code. Section 5.31 provides that TABC may prescribe and publish rules necessary to carry out the provisions of the Texas Alcoholic Beverage Code. Section 11.614 authorizes TABC to prescribe procedures for the determination and appeal of emergency orders temporarily suspending a license.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 25, 2025.

TRD-202501030

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Effective date: April 14, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 206-3491


CHAPTER 45. MARKETING PRACTICES

The Texas Alcoholic Beverage Commission (TABC) adopts amendments to 16 TAC §45.9, relating to Withdrawal of Application, 16 TAC §45.11, relating to When Reapplication is Required, 16 TAC §45.12, relating to Application Procedures During Interruption of Federal Agency Operations, 16 TAC §45.20, relating to Exhibiting Certificates to Representatives of the Commission, 16 TAC §45.23, relating to Alteration of Labels, 16 TAC §45.30, relating to Certificates of Registration for a Distilled Spirit Product, 16 TAC §45.40, related to Certificate of Registration for a Malt Beverage Product, 16 TAC §45.50, relating to Certificate of Registration for Wine, and 16 TAC §45.105, relating to Advertising. The amendments are adopted without changes to the proposed text as published in the November 29, 2024, issue of the Texas Register (49 TexReg 9681). The amended rules will not be republished.

REASONED JUSTIFICATION. The adopted amendment to §45.9 adds language to mirror the process for license and permit application withdrawals found in §33.57. This change is intended to provide clarity for applicants and consistency for the agency. The adopted amendments to §§45.11, 45.12, and 45.20 remove redundant language in references to a Certificate of Label Approval (COLA) and change references to the product registration certificate for consistency. The adopted amendment to §45.23 allows the executive director to name a designee to approve relabeling of bottled alcoholic beverages to ensure agency efficiency and removes redundant language. The adopted amendments to §§45.30, 45.40, and 45.50 make corresponding changes in each section to update the product registration process for distilled spirits, malt beverages, and wine, to mirror existing agency practices.

The adopted amendments to §45.105 provide clarity on the permissible forms of outdoor advertising at retail establishments. Pursuant to Alcoholic Beverage Code §108.52, "no outdoor advertising is permitted in this state except that which is authorized by this section or under rules of the commission..." Currently, §45.105(a) references a restriction on certain types of outdoor advertising and creates an inference that the rule also authorizes other forms of outdoor advertising. Adopted subsection (a)(2) is intended to clarify that, unless otherwise prohibited under the rule, outdoor advertising is permissible. For additional clarity, the subsection also incorporates the Alcoholic Beverage Code's definitions for outdoor advertising, billboards, and electric signs. Adopted subsection (a)(5) reiterates the inducement prohibitions in §45.110 and Alcoholic Beverage Code §§102.04, 102.07, 102.15, and 108.06. Adopted subsection (a)(6) acknowledges the permissible avenues for upper-tier members to sell or provide signage to retailers under §§45.113(d) and 45.117(d), which may meet the definition of outdoor advertising, so that the prohibition in subsection (a)(5) does not conflict with those authorizations. Lastly, adopted subsection (a)(6) also allows the signage provided to a retailer by an upper-tier member under §§45.113 and 45.117 to be placed on the exterior walls of the building or enclosure on the retailer's premises. This change is intended to reduce the regulatory burden on retailers.

SUMMARY OF COMMENTS. TABC did not receive any comments on the proposed amendments.

SUBCHAPTER A. GENERAL PROVISIONS

16 TAC §§45.9, 45.11, 45.12

STATUTORY AUTHORITY. TABC adopts the amendments pursuant to TABC's rulemaking authority under §§5.31, 101.67, 101.671, and 108.52(c) of the Texas Alcoholic Beverage Code. Section 5.31 provides that TABC may prescribe and publish rules necessary to carry out the provisions of the Texas Alcoholic Beverage Code. Sections 101.67 and 101.671 direct TABC to prescribe rules for the registration of alcoholic beverage products with the state. Section 108.52(c) directs the agency to adopt reasonable rules relating to the type of outdoor advertising retail licensees and permittees may erect or maintain on the retailer's premises.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 25, 2025.

TRD-202501015

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Effective date: April 14, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 206-3491


SUBCHAPTER B. ENFORCEMENT

16 TAC §45.20, §45.23

STATUTORY AUTHORITY. The amendments are adopted pursuant to TABC's rulemaking authority under §§5.31, 101.67, and 101.671 of the Texas Alcoholic Beverage Code. Section 5.31 provides that TABC may prescribe and publish rules necessary to carry out the provisions of the Texas Alcoholic Beverage Code. Sections 101.67 and 101.671 direct TABC to prescribe rules for the registration of alcoholic beverage products with the state.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 25, 2025.

TRD-202501016

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Effective date: April 14, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 206-3491


SUBCHAPTER C. SPECIFIC REQUIREMENTS FOR DISTILLED SPIRITS

16 TAC §45.30

STATUTORY AUTHORITY. The amendments are adopted pursuant to TABC's rulemaking authority under §§5.31, 101.67, and 101.671 of the Texas Alcoholic Beverage Code. Section 5.31 provides that TABC may prescribe and publish rules necessary to carry out the provisions of the Texas Alcoholic Beverage Code. Sections 101.67 and 101.671 direct TABC to prescribe rules for the registration of alcoholic beverage products with the state.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 25, 2025.

TRD-202501017

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Effective date: April 14, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 206-3491


SUBCHAPTER D. SPECIFIC REQUIREMENTS FOR MALT BEVERAGES

16 TAC §45.40

STATUTORY AUTHORITY. The amendments are adopted pursuant to TABC's rulemaking authority under §§5.31, 101.67, and 101.671 of the Texas Alcoholic Beverage Code. Section 5.31 provides that TABC may prescribe and publish rules necessary to carry out the provisions of the Texas Alcoholic Beverage Code. Sections 101.67 and 101.671 direct TABC to prescribe rules for the registration of alcoholic beverage products with the state.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 25, 2025.

TRD-202501018

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Effective date: April 14, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 206-3491


SUBCHAPTER E. SPECIFIC REQUIREMENTS FOR WINE

16 TAC §45.50

STATUTORY AUTHORITY. The amendments are adopted pursuant to TABC's rulemaking authority under §§5.31, 101.67, and 101.671 of the Texas Alcoholic Beverage Code. Section 5.31 provides that TABC may prescribe and publish rules necessary to carry out the provisions of the Texas Alcoholic Beverage Code. Sections 101.67 and 101.671 direct TABC to prescribe rules for the registration of alcoholic beverage products with the state.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 25, 2025.

TRD-202501019

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Effective date: April 14, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 206-3491


SUBCHAPTER F. ADVERTISING AND PROMOTION

16 TAC §45.105

STATUTORY AUTHORITY. The amendments are adopted pursuant to TABC's rulemaking authority under §§5.31 and 108.52 of the Texas Alcoholic Beverage Code. Section 5.31 provides that TABC may prescribe and publish rules necessary to carry out the provisions of the Texas Alcoholic Beverage Code. Section 108.52(c) directs TABC to adopt reasonable rules relating to the type of outdoor advertising retail licensees and permittees may erect or maintain on the retailer's premises.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 25, 2025.

TRD-202501020

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Effective date: April 14, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 206-3491


CHAPTER 50. ALCOHOLIC BEVERAGE SELLER SERVER AND DELIVERY DRIVER TRAINING

SUBCHAPTER C. SELLER SERVER SCHOOL CERTIFICATES AND REQUIREMENTS

16 TAC §50.24

The Texas Alcoholic Beverage Commission (TABC) adopts an amendment to 16 TAC §50.24, relating to Seller Server School Certificates and Requirements. The amendment is adopted without changes to the proposed text as published in the November 29, 2024, issue of the Texas Register (49 TexReg 9685). The amended rule will not be republished.

REASONED JUSTIFICATION. The adopted amendment adds language clarifying that the holder of a seller server certificate must maintain a current mailing address, telephone number, and email address on file with TABC. The amendment also requires the holder of such a certificate to update that information within seven business days of any changes. The amendment is intended to ensure the agency has current contact information for all certificate holders. This adoption is made in conjunction with adopted amendments to 16 TAC §33.93, which is being done in a separate and simultaneous rulemaking.

SUMMARY OF COMMENTS. TABC did not receive any comments on the proposed amendment.

STATUTORY AUTHORITY. TABC adopts the amendment pursuant to TABC's rulemaking authority under §§5.31 and 106.14 of the Texas Alcoholic Beverage Code. Section 5.31 provides that TABC may prescribe and publish rules necessary to carry out the provisions of the Texas Alcoholic Beverage Code. Section 106.14 directs the commission to adopt rules establishing requirements for approved seller training programs.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 25, 2025.

TRD-202501007

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Effective date: April 14, 2025

Proposal publication date: November 29, 2024

For further information, please call: (512) 206-3491