TITLE 16. ECONOMIC REGULATION

PART 3. TEXAS ALCOHOLIC BEVERAGE COMMISSION

CHAPTER 33. LICENSING

SUBCHAPTER E. EVENTS AT A TEMPORARY LOCATION

16 TAC §§33.70 - 33.72, 33.76, 33.77, 33.81

The Texas Alcoholic Beverage Commission (TABC) proposes to amend 16 TAC §§33.70-33.72, 33.76, 33.77, 33.81, relating to Events at a Temporary Location. The proposed amendments are necessary to implement legislation. Senate Bill 926 (88th Regular Session) authorized the temporary sale of wine and malt beverages by a mixed beverage permit holder in certain high-capacity facilities that are open to the public during certain motor vehicle racing events. Senate Bill 1375 (88th Regular Session) authorized a distiller's and rectifier's permit holder to conduct samplings or tastings at certain temporary events. Sections 71, 112, 122, 128, and 247 of House Bill 1545 (86th Regular Session) authorized various permit holders to sell different alcoholic beverages at certain temporary events. These bills all required TABC to adopt implementing rules.

The proposed amendments to §§33.72, 33.77(f), and 33.81 implement SB 926 by: (1) acknowledging that mixed beverage permittees may sell wine and malt beverages for more than four consecutive days at an authorized temporary event, as provided in Alcoholic Beverage Code §28.20(c); (2) clarifying the recordkeeping and reporting obligations of mixed beverage permittees who sell wine or malt beverages in a county other than the county in which the temporary event premises is located, consistent with Alcoholic Beverage Code §28.20(e); (3) clarifying that if an authorized temporary event is held in a county that includes more than one territory, as that term is defined by Alcoholic Beverage Code §102.71(5), the mixed beverage permittee must purchase malt beverages from the distributor holding the territorial agreement covering the temporary event location; and (4) clarifying that if an authorized temporary event is held in a county other than the county in which the mixed beverage permit holder's premises is located, the mixed beverage permittee must purchase wine from a wholesaler authorized to sell wine in the county covering the temporary event location.

The proposed amendments to §§33.70, 33.71, 33.76, and 33.77(d) implement SB 1375 and HB 1545 by: (1) changing the scope and applicability of Chapter 33, Subchapter E to include temporary events conducted under Chapter 14 of the Alcoholic Beverage Code; (2) acknowledging that certain temporary events are eligible for File and Use Notification even if sponsored by a distiller's and rectifier's permittee or winery permittee; (3) providing that distilled spirits samplings or tastings at temporary events conducted in accordance with Alcoholic Beverage Code §14.09 may be conducted using File and Use Notification, without the need to obtain prior approval from the Commission; and (4) clarifying the requirements to verify the wet/dry status of the governing jurisdiction where the temporary event will be held.

TABC presented the proposed amendments at a stakeholder meeting on October 5, 2023, and received comments. TABC considered those comments when drafting this proposal.

FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATEMENT. Julie Ross, Director of Licensing, has determined that during each year of the first five years the proposed amendments are in effect, there will be no fiscal impact on state or local governments as a result of enforcing or administering the amended rules. Mrs. Ross made this determination because the proposed amendments do not add to or decrease state revenues or expenditures, and because local governments are not involved in enforcing or complying with the amended rules. Mrs. Ross also does not anticipate any measurable effect on local employment or a local economy as a result of this proposal.

PUBLIC BENEFIT AND COST NOTICE. For each year of the first five years the proposed amendments are in effect, Mrs. Ross expects that enforcing or administering the proposed amendments will have the public benefit of ensuring that TABC's rules comply with newly enacted statutes related to temporary events and clarifying the various requirements and responsibilities associated with the sale or provision of alcoholic beverages at temporary events, consistent with the agency's public safety mission. Mrs. Ross does not expect the proposed amendments to impose an economic cost on persons required to comply with the amended rules beyond any costs imposed by statute.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS.

TABC has determined that the proposed amendments will not have an adverse economic effect on small or micro businesses, or on rural communities. As a result, and in accordance with Government Code §2006.002(c), TABC is not required to prepare a regulatory flexibility analysis.

GOVERNMENT GROWTH IMPACT STATEMENT. TABC has determined that for each year of the first five years that the proposed amendments are in effect, they:

- will not create or eliminate a government program;

- will not require the creation of new employee positions or the elimination of existing employee positions;

- will not require an increase or decrease in future legislative appropriations to the agency;

- will not require an increase or decrease in fees paid to the agency;

- will not create a new regulation;

- will expand, limit, or repeal an existing regulation;

- will not increase or decrease the number of individuals subject to the rule's applicability; and

- will not positively or adversely affect the Texas economy.

TAKINGS IMPACT ASSESSMENT. TABC has determined that no private real property interests are affected by this proposal and that this proposal does not restrict or limit an owner's right to property that would otherwise exist in the absence of government action. As a result, this proposal does not constitute a taking or require a takings impact assessment under Government Code §2007.043.

REQUEST FOR PUBLIC COMMENT. TABC will consider any written comments on the proposal that are received by TABC no later than 5:00 p.m., central time, on December 31, 2023. Send your comments to rules@tabc.texas.gov or to the Office of the General Counsel, Texas Alcoholic Beverage Commission, P.O. Box 13127, Austin, Texas 78711-3127. TABC staff will hold a public hearing to receive oral comments on the proposed amendments at 10:00 a.m. on December 14, 2023. THIS HEARING WILL BE HELD BY VIDEOCONFERENCE ONLY. Interested persons should visit the TABC's public website at www.tabc.texas.gov, or contact TABC Legal Assistant Kelly Johnson at (512) 206-3367, prior to the meeting date to receive further instructions.

STATUTORY AUTHORITY. TABC proposes the amendments pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §§5.31, 14.09(g), 16.12(c), 25.16(c), 28.19(c), 28.20(g), 32.25(d), and 69.18(c). Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Section 14.09(g) requires TABC to adopt rules to implement distilled spirits sampling at temporary events. Section 28.20(g) requires TABC to adopt rules implementing temporary sales at certain racing facilities. Sections 16.12(c), 25.16(c), 28.19(c), 32.25(d), and 69.18(c) require TABC to adopt rules implementing temporary sales by various permittees at a temporary event location.

CROSS-REFERENCE TO STATUTE. The proposed amendments to §§33.70, 33.71, 33.76, and 33.77(d) implement Alcoholic Beverage Code §§14.01 and 14.09. The proposed amendments to §§33.72, 33.77(f), and 33.81 implement Alcoholic Beverage Code §§28.06, 28.10, and 28.20. The proposed amendments to §§ 33.76(a)(2)(F) and 33.77(d) also implement Alcoholic Beverage Code §§ 14.09, 16.12, 25.16, 28.19, 32.25, and 69.18.

§33.70.Scope and Applicability.

(a) This subchapter [rule] relates to Chapters 14, 16, 25, 28, 30, 32, and 69 of the Alcoholic Beverage Code.

(b) (No change.)

§33.71.Classification of Event Authorizations.

(a) A File and Use Notification does not require prior approval of the commission and may be used only if:

(1) the estimated total wholesale value of the alcohol to be provided or sold at the event is less than $10,000;

(2) the estimated attendance at the event is not more than 500 persons;

(3) the event is private and not open to the general public;

(4) the event is not sponsored by a member of the wholesale tier or the manufacturing tier, unless the event is conducted pursuant to Chapters 14 or 16 of the Alcoholic Beverage Code; and

(5) the owner of the premises where the event will be held has authorized the sale or service of alcohol at the event.

(b) In determining whether an event meets the requirement of subsection (a)(3) of this section, the commission may consider whether tickets are sold and whether the event spans more than one day.

(c) A Nonprofit Entity Temporary Event is a picnic, celebration, or similar event, such as a cultural, charitable, religious, or civic event of a limited and specified duration that is organized for, and open to the public and is put on by a nonprofit entity as defined by Alcoholic Beverage Code §30.01.

(d) For all other events that will be held at a temporary location, a Temporary Event Approval is required.

(e) Notwithstanding subsections (a)(1)-(4) and (d) of this section, holders of a distiller's and rectifier's permit may conduct distilled spirits samplings or tastings at a civic or distilled spirits festival, farmers' market, celebration, or similar event in accordance with Alcoholic Beverage Code §14.09 without obtaining prior approval from the Commission by submitting a notice on forms provided by the commission.

§33.72.Term of Authorization; Annual Limitation on Authorizations.

(a) Temporary Event Approvals and File and Use Notifications shall be effective for no more than four consecutive days, except as provided by subsection (b) of this section.

(b) Temporary Event Approvals issued to holders of a mixed beverage permit for events conducted in accordance with Alcoholic Beverage Code §28.20 may be effective for:

(1) no more than five consecutive days; or

(2) up to six consecutive days if necessary to accommodate the postponement of a scheduled racing event due to an act of nature.

(c) [(b)] A person or entity may use a Temporary Event Approval or File and Use Notification at the same location for no more than ten events in a calendar year if the person or entity that will hold the authorization has an ownership interest in the real property or a portion of it or has a lease for its use of the location. For purposes of this rule, a lease is defined as a contractual agreement by which one party conveys an estate in property to another party, for a limited period, subject to conditions, in exchange for something of value, but retains ownership. The ten-event limitation does not apply to a location that meets the definition of a Public Entertainment Facility in Alcoholic Beverage Code §108.73, regardless of whether it holds that designation.

(d) [(c)] A Nonprofit Entity Temporary Event Permit shall be effective for no more than ten consecutive days unless the executive director or the executive director's designated representative, on the basis of a case-by-case review of the specific situation, grants additional time.

(e) [(d)] Upon written request, the executive director or the executive director's designated representative may make an exception to the limitations of subsections (a), [through ] (c), and (d) of this section on a case-by case basis. An exception request will be granted or denied in writing.

(f) [(e)] Authorization for an event under this subchapter automatically terminates upon issuance of a two-year license or permit for the event location, regardless of the term of the temporary event authorization.

(g) [(f)] The effective dates of an event authorization under this subchapter must cover the period in which alcoholic beverages will be delivered or stored in addition to the event itself.

(h) [(g)] A temporary permit or license expires on the date indicated on the license or permit or on the same date as the primary permit, whichever occurs earlier.

§33.76.File and Use Notifications.

(a) To qualify to use a File and Use Notification, the notification must include:

(1) all information requested by the commission; and

(2) a sworn statement that:

(A) the estimated total wholesale value of the alcohol to be provided or sold at the event is less than $10,000;

(B) the estimated attendance at the event is not more than 500 persons;

(C) the event is private, and not open to the general public;

(D) the event is not sponsored by a member of the wholesale tier or the manufacturing tier, unless the event is conducted pursuant to Chapters 14 or 16 of the Alcoholic Beverage Code; [and]

(E) the owner of the premises where the event will be held has authorized the sale or service of alcohol at the event; and[.]

(F) verifies the wet/dry status of the governing jurisdiction where the event will be held.

(b) Except as provided by §33.71(e) of this title, an [An] event that does not meet the criteria in subsection (a)(2) of this section requires approval by the commission.

(c) - (e) (No change.)

§33.77.Request for Temporary Event Approval.

(a) - (c) (No change.)

(d) In addition to the request form, other documents related to the event that may be required include a letter from the property owner, sponsorship agreements, promoter agreements, concession agreements, management agreements, diagrams, site maps, local governmental authorization (including wet/dry status), and any other documents needed to determine qualification under the Alcoholic Beverage Code.

(e) (No change.)

(f) Upon written notice to the commission, the effective dates for a racing event conducted pursuant to Alcoholic Beverage Code §28.20 may be extended if necessary to accommodate the postponement of a scheduled racing event due to an act of nature. The effective dates may not exceed six consecutive days, as provided in §28.20(c).

§33.81.Purchase of Alcoholic Beverages for a Temporary Event.

(a) This section applies to holders of Mixed Beverage Permits when selling alcoholic beverages at an event authorized by a Temporary Event Approval or under a File and Use Notification.

(b) Except as provided by subsection (c) of this section, a Mixed Beverage Permit holder purchasing alcoholic beverages for an event at a temporary location in a county other than the county in which the premises covered by its primary permit is located must:

(1) purchase the alcoholic beverages from a seller authorized under this code to sell the alcoholic beverages to members of the retail tier in the county in which the permit holder sells the alcoholic beverages under this section; and

(2) keep a record of the amount of alcoholic beverages purchased and sold under this section, by type, for no less than two years following the last day of the event.

(c) If the temporary event is held in a county that includes more than one territory, as that term is defined by Alcoholic Beverage Code §102.71(5), a Mixed Beverage Permit holder must purchase malt beverages from the distributor holding the territorial agreement covering the temporary event location.

(d) Except as restricted by subsection (e) for certain events, this [This] section does not preclude a Mixed Beverage Permit holder from transporting alcoholic beverages in stock at its primary location to a temporary event.

(e) Holders of Mixed Beverage Permits who sell wine and malt beverages at an event authorized by Alcoholic Beverage Code §28.20 in a county other than the county in which the premises covered by the permit is located must:

(1) purchase all wine and malt beverages sold at the event from a distributor or wholesaler authorized to sell the beverages in the county in which the permit holder sells the alcoholic beverages under this subsection;

(2) comply with subsections (b)(2) and (c) of this section; and

(3) report to the commission, on forms provided by the commission, the amount of beverages purchased and sold at the event.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 14, 2023.

TRD-202304255

James Person

General Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: December 31, 2023

For further information, please call: (512) 206-3230


CHAPTER 41. AUDITING

SUBCHAPTER B. RECORDKEEPING & REPORTS

16 TAC §41.25

The Texas Alcoholic Beverage Commission (TABC) proposes to amend 16 TAC §41.25, relating to Providing Retailer Samples: Distiller's and Rectifier's Permit. The proposed amendment is necessary to implement new legislation and provide clarity for impacted permittees. Senate Bill 1375 (88th Regular Session) authorized a distiller's and rectifier's permit holder to conduct samplings or tastings at certain temporary events. The proposed amendment to §41.25 implements SB 1375 by acknowledging that a distiller's and rectifier's permit holder may conduct samplings or tastings consistent with SB 1375 and clarifies that samples of distilled spirits taken from a distiller's inventory for such events qualify as a first sale for purposes of excise tax payments under Alcoholic Beverage Code §§201.02 and 201.03. A conforming change is also made to the rule's title.

TABC presented the proposed amendment at a stakeholder meeting on October 5, 2023, and received comments. TABC considered those comments when drafting this proposal.

FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATEMENT. Andrea Maceyra, Chief of Regulatory Affairs, has determined that during each year of the first five years the proposed amendment is in effect, there will be no fiscal impact on state or local governments as a result of enforcing or administering the amended rule. Mrs. Maceyra made this determination because the proposed amendment does not add to or decrease state revenues or expenditures, and because local governments are not involved in enforcing or complying with the amended rule. Mrs. Maceyra also does not anticipate any measurable effect on local employment or a local economy as a result of this proposal.

PUBLIC BENEFIT AND COST NOTE. For each year of the first five years the proposed amendment is in effect, Mrs. Maceyra expects that enforcing or administering the proposed amendment will have the public benefit of ensuring that TABC's rule complies with and implements existing statutes related to excise taxes. Mrs. Maceyra does not expect the proposed amendment to impose an economic cost on persons required to comply with the amended rule.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS.

TABC has determined that the proposed amendment will not have an adverse economic effect on small or micro businesses, or on rural communities. As a result, and in accordance with Government Code §2006.002(c), TABC is not required to prepare a regulatory flexibility analysis.

GOVERNMENT GROWTH IMPACT STATEMENT. TABC has determined that for each year of the first five years that the proposed amendment is in effect, it:

- will not create or eliminate a government program;

- will not require the creation of new employee positions or the elimination of existing employee positions;

- will not require an increase or decrease in future legislative appropriations to the agency;

- will not require an increase or decrease in fees paid to the agency;

- will not create a new regulation;

- will expand, limit, or repeal an existing regulation;

- will not increase or decrease the number of individuals subject to the rule's applicability; and

- will not positively or adversely affect the Texas economy.

TAKINGS IMPACT ASSESSMENT. TABC has determined that no private real property interests are affected by this proposal and that this proposal does not restrict or limit an owner's right to property that would otherwise exist in the absence of government action. As a result, this proposal does not constitute a taking or require a takings impact assessment under Government Code §2007.043.

REQUEST FOR PUBLIC COMMENT. TABC will consider any written comments on the proposal that are received by TABC no later than 5:00 p.m., central time, on December 31, 2023. Send your comments to rules@tabc.texas.gov or to the Office of the General Counsel, Texas Alcoholic Beverage Commission, P.O. Box 13127, Austin, Texas 78711-3127. TABC staff will hold a public hearing to receive oral comments on the proposed amendments at 10:00 a.m. on December 14, 2023. THIS HEARING WILL BE HELD BY VIDEOCONFERENCE ONLY. Interested persons should visit the TABC's public website at www.tabc.texas.gov, or contact TABC Legal Assistant Kelly Johnson at (512) 206-3367, prior to the meeting date to receive further instructions.

STATUTORY AUTHORITY. TABC proposes the amendment pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §§5.31 and 14.09(g). Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Section 14.09(g) requires TABC to adopt rules to implement distilled spirits sampling at temporary events.

CROSS-REFERENCE TO STATUTE. The proposed amendment implements Alcoholic Beverage Code §§14.09 and 201.03.

§41.25.Providing [Retailer] Samples: Distiller's and Rectifier's Permit.

(a) A holder of a Distiller's and Rectifier's Permit may provide samples obtained from the distiller's inventory to: [a retailer in accordance with Alcoholic Beverage Code §14.07.]

(1) a retailer in accordance with Alcoholic Beverage Code §14.07; and

(2) a consumer in accordance with Alcoholic Beverage Code §14.09.

(b) Samples taken from the distiller's inventory are considered "first sale" for purposes of taxation under Alcoholic Beverage Code §201.03. The holder of the Distiller's and Rectifier's Permit shall remit excise taxes for samples taken from inventory not later than the 15th day of the month following the month in which occurs the "first sale."

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 14, 2023.

TRD-202304256

James Person

General Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: December 31, 2023

For further information, please call: (512) 206-3230


CHAPTER 45. MARKETING PRACTICES

SUBCHAPTER F. ADVERTISING AND PROMOTION

16 TAC §45.117

The Texas Alcoholic Beverage Commission (TABC) proposes to amend 16 TAC §45.117, relating to Gifts and Advertising Specialties. The proposed amendment to §45.117 would allow TABC to increase or decrease the total amount of advertising specialties furnished to a retailer under §102.07(b) of the Alcoholic Beverage Code by order of the executive director instead of through formal rulemaking. The proposed amendment does not change the total amount of advertising specialties currently allowed under law. Rather, it aligns the process for setting the amount with the process contemplated in §102.07(b), which specifically states that the executive director may change the amount not more than once a year. Under the proposed amendment, any order issued by the executive director must be published in the Texas Register and on the agency's website.

TABC presented the proposed amendment at a stakeholder meeting on October 5, 2023, and received comments. TABC considered those comments when drafting this proposal.

FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATEMENT. Andrea Maceyra, Chief of Regulatory Affairs, has determined that during each year of the first five years the proposed amendment is in effect, there will be no fiscal impact on state or local governments as a result of enforcing or administering the amended rule. Mrs. Maceyra made this determination because the proposed amendment does not add to or decrease state revenues or expenditures, and because local governments are not involved in enforcing or complying with the amended rule. Mrs. Maceyra also does not anticipate any measurable effect on local employment or a local economy as a result of this proposal.

PUBLIC BENEFIT AND COST NOTE. For each year of the first five years the proposed amendment is in effect, Mrs. Maceyra expects that enforcing or administering the amended rule will have the public benefit of aligning the agency's rule with statute and reducing the amount of time it takes the agency to adjust the limit on advertising specialties to account for fluctuations in the consumer price index's annual average. Mrs. Maceyra does not expect the proposed amendment to impose an economic cost on persons required to comply with the amended rule.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS. TABC has determined that the proposed amendment will not have an adverse economic effect on small or micro businesses, or on rural communities. As a result, and in accordance with Government Code §2006.002(c), TABC is not required to prepare a regulatory flexibility analysis.

GOVERNMENT GROWTH IMPACT STATEMENT. TABC has determined that for each year of the first five years that the proposed amendment is in effect, it:

- will not create or eliminate a government program;

- will not require the creation of new employee positions or the elimination of existing employee positions;

- will not require an increase or decrease in future legislative appropriations to the agency;

- will not require an increase or decrease in fees paid to the agency;

- will not create a new regulation;

- will expand, limit, or repeal an existing regulation;

- will not increase or decrease the number of individuals subject to the rule's applicability; and

- will not positively or adversely affect the Texas economy.

TAKINGS IMPACT ASSESSMENT. TABC has determined that no private real property interests are affected by this proposal and that this proposal does not restrict or limit an owner's right to property that would otherwise exist in the absence of government action. As a result, this proposal does not constitute a taking or require a takings impact assessment under Government Code §2007.043.

REQUEST FOR PUBLIC COMMENT. TABC will consider any written comments on the proposal that are received by TABC no later than 5:00 p.m., central time, on December 31, 2023. Send your comments to rules@tabc.texas.gov or to the Office of the General Counsel, Texas Alcoholic Beverage Commission, P.O. Box 13127, Austin, Texas 78711-3127. TABC staff will hold a public hearing to receive oral comments on the proposed amendments at 10:00 a.m. on December 14, 2023. THIS HEARING WILL BE HELD BY VIDEOCONFERENCE ONLY. Interested persons should visit the TABC's public website at www.tabc.texas.gov, or contact TABC Legal Assistant Kelly Johnson at (512) 206-3367, prior to the meeting date to receive further instructions.

STATUTORY AUTHORITY. TABC proposes the amendment pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §5.31. Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code.

CROSS-REFERENCE TO STATUTE. The proposed amendment implements Alcoholic Beverage Code §102.07(b).

§45.117.Gifts and Advertising Specialties.

(a) - (b) (No change.)

(c) Gifts to Retailers. Holders of distiller's and rectifier's, winery, nonresident seller's and wholesaler's permits may furnish advertising specialties to retailers.

(1) (No change.)

(2) The total cost of all advertising specialties furnished to a retailer shall not exceed the amount set by order of the executive director in accordance with Alcoholic Beverage Code §102.07(b) [$125] per brand per calendar year. The executive director's order shall be published in the Texas Register and on the commission's website. Dollar limitations may not be pooled to provide a retailer with advertising specialties in excess of the maximum permitted under this subsection.

(d) - (f) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 14, 2023.

TRD-202304257

James Person

General Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: December 31, 2023

For further information, please call: (512) 206-3230


CHAPTER 50. ALCOHOLIC BEVERAGE SELLER SERVER AND DELIVERY DRIVER TRAINING

The Texas Alcoholic Beverage Commission (TABC) proposes to amend 16 TAC §§50.3 - 50.6 and 50.29, relating to Alcoholic Beverage Seller Server and Delivery Driver Training. The proposed amendments to §50.3 eliminate outdated references to the process TABC used to develop the original mandatory course curriculum for seller server training. The proposed amendments also simplify the process for updating the curriculum. As proposed, §50.3 will allow TABC's executive director or their designee to update the curriculum as needed and will require the agency to post notice of any such changes on its website and in the Texas Register.

The proposed amendments to §§50.4 - 50.6 and 50.29 implement Senate Bill 998 (88th Regular Session), which requires TABC to develop a program that would provide training on the signs and symptoms of an opioid-related drug overdose and the administration of an opioid antagonist. TABC will require this opioid-related training to be included in the mandatory course curriculum for seller server training. To account for the inclusion of this new opioid-related training, the proposed amendments to §§50.4 - 50.6 and 50.29 simply increase the minimum minutes of active instruction and student participation in the mandatory curriculum from 120 to 140.

TABC presented the proposed amendments at a stakeholder meeting on October 5, 2023, and received comments. TABC considered those comments when drafting this proposal.

FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATEMENT. Ashleigh Jons, Deputy Director of Training, has determined that during each year of the first five years the proposed amendments are in effect, there will be no fiscal impact on state or local governments because of enforcing or administering the amended rules, other than that imposed by the statute. Ms. Jons made this determination because the proposed amendments do not add to or decrease state revenues or expenditures, and because local governments are not involved in enforcing or complying with the proposed amendments. Ms. Jons also does not anticipate any measurable effect on local employment or the local economy because of this proposal.

PUBLIC BENEFIT AND COST NOTE. For each year of the first five years the proposed amendments are in effect, Ms. Jons expects that enforcing or administering the amended rules will have the public benefit of implementing SB 998's opioid-related training requirements, providing clarity by removing outdated language from current rules, and simplifying the process TABC uses to ensure necessary updates are made to alcoholic beverage-related training. Ms. Jons does not expect the proposed amendments will impose economic costs on persons required to comply with the amended rules.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS. TABC has determined that the proposed amendments will not have an adverse economic effect on small or micro businesses, or on rural communities. As a result, and in accordance with Government Code §2006.002(c), TABC is not required to prepare a regulatory flexibility analysis.

GOVERNMENT GROWTH IMPACT STATEMENT. TABC has determined that for each year of the first five years that the proposed amendments are in effect, they:

- will not create or eliminate a government program;

- will not require the creation of new employee positions or the elimination of existing employee positions;

- will not require an increase or decrease in future legislative appropriations to the agency;

- will not require an increase or decrease in fees paid to the agency;

- will not create a new regulation;

- will expand, limit, or repeal an existing regulation;

- will not increase or decrease the number of individuals subject to the rule's applicability; and

- will not positively or adversely affect the Texas economy.

TAKINGS IMPACT ASSESSMENT. TABC has determined that no private real property interests are affected by this proposal and that this proposal does not restrict or limit an owner's right to property that would otherwise exist in the absence of government action. As a result, this proposal does not constitute a taking or require a takings impact assessment under Government Code §2007.043.

REQUEST FOR PUBLIC COMMENT. TABC will consider any written comments on the proposal that are received by TABC no later than 5:00 p.m., central time, on December 31, 2023. Send your comments to rules@tabc.texas.gov or to the Office of the General Counsel, Texas Alcoholic Beverage Commission, P.O. Box 13127, Austin, Texas 78711-3127. TABC staff will hold a public hearing to receive oral comments on the proposed amendments at 10:00 a.m. on December 14, 2023. THIS HEARING WILL BE HELD BY VIDEOCONFERENCE ONLY. Interested persons should visit the TABC's public website at www.tabc.texas.gov, or contact TABC Legal Assistant Kelly Johnson at (512) 206-3367, prior to the meeting date to receive further instructions.

SUBCHAPTER B. MANDATORY CURRICULUM AND COURSE OF INSTRUCTION

16 TAC §§50.3 - 50.6

STATUTORY AUTHORITY. TABC proposes the amendments pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §5.31 and §106.14(b). Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Section 106.14(b) requires TABC to adopt rules or policies establishing the minimum requirements for approved seller training programs.

CROSS-REFERENCE TO STATUTE. The proposed amendments implement Alcoholic Beverage Code §§5.61, 28.20, 32.26, and 106.14.

§50.3.Mandatory Course Curriculum.

(a) - (e) (No change.)

(f) When the executive director or their designee changes the curriculum, the commission will post notice in the Texas Register and on the commission's website that such changes have been made. [In developing the original mandatory curriculum pursuant to subsection (a) of this section, the commission will conduct work group meetings with members representing a cross-section of interested parties. After receiving input from the work group, the staff of the commission will present its recommended mandatory curriculum to the commissioners at an open meeting. After the original mandatory curriculum is developed, the commission will review it after every session of the legislature to determine if changes are required. If changes to the curriculum are required simply to update it to reflect legislative changes, the commission will make such changes and post notice in the Texas Register and on the commission's website that such changes have been made. If the commission wants to make other changes to the curriculum, it will publish notice of such intent in the Texas Register and on the commission's website.]

§50.4.Commission Approval of Classroom-Based Course of Instruction.

(a) (No change.)

(b) All classroom-based training materials and courses of instruction must be submitted to the commission for approval.

(1) A classroom-based course of instruction must be paced to provide a minimum of 140 [120] minutes of active instruction and student participation in the mandatory curriculum.

(2) The 140-minute [120-minute] requirement excludes time taken for breaks and the administration of the Commission Standard Competence Test.

(3) The 140-minute [120-minute] requirement is based on a 6th grade comprehension and reading skills level.

(4) (No change.)

(c) Upon approval by the commission, a classroom-based school may present a course of instruction including optional material in addition to the mandatory curriculum if:

(1) - (3) (No change.)

(4) additional time is added to the course of instruction to ensure that 140 [120] minutes are devoted entirely to the mandatory curriculum.

(d) (No change.)

§50.5.Commission Approval of Internet-Based Course of Instruction.

(a) (No change.)

(b) An internet-based course of instruction shall be presented at a 6th grade fluency level of 180 words per minute and must be equivalent to 140 [120] minutes of time.

(c) - (d) (No change.)

§50.6.Management of Classroom-Based Course of Instruction.

(a) (No change.)

(b) A student who misses more than 10% of the required 140 [120] minutes of class instruction shall not be allowed to take the Commission Standard Competence Test and may not be given a Seller Server Certificate based on his attendance at that session.

(c) (No change.)

(d) Each session must be presented in a continuous block of instruction. Instruction may be interrupted by brief breaks, but they must be limited in number and duration. Time spent in a break or taking the Commission Standard Competence Test shall not be included in the 140-minute [120-minute] mandatory curriculum attendance requirement.

(e) - (h) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 14, 2023.

TRD-202304258

James Person

General Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: December 31, 2023

For further information, please call: (512) 206-3230


SUBCHAPTER E. SELLER SERVER CERTIFICATES

16 TAC §50.29

The amendments are proposed pursuant to TABC's rulemaking authority under §5.31 and §106.14(b) of the Alcoholic Beverage Code. Section 5.31 provides that TABC may prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Section 106.14(b) provides that TABC shall adopt rules or policies establishing the minimum requirements for approved seller training programs.

§50.29.Seller Server Certificate Requirements.

(a) To receive a seller server certificate from a seller server school certified under this chapter, a student must:

(1) complete either a 140-minute [120-minute ] classroom-based course of instruction or an internet-based, self-paced course of instruction;

(2) - (3) (No change.)

(b) - (c) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 14, 2023.

TRD-202304259

James Person

General Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: December 31, 2023

For further information, please call: (512) 206-3230