TEXAS ALCOHOLIC BEVERAGE COMMISSION Administrative Rules

TEXAS ALCOHOLIC BEVERAGE

COMMISSION

Administrative Rules

As of May 1, 2024

Texas Administrative Code

Title 16, Economic Regulation

Part 3, Texas Alcoholic Beverage Commission

DISCLAIMER: For informational purposes only. Official text of the Texas Administrative Code is maintained

by the Texas Secretary of State. In the event of any discrepancy between this document and the official text,

the latter controls.

Table of Contents

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Chapter 31: Administration ..................................................................................................................... 10

§31.1 Separation of Duties Between Commission and Executive Director ...................................... 10

§31.2 State-owned Motor Vehicles ................................................................................................... 11

§31.3 Petition for the Adoption of a Rule ......................................................................................... 12

§31.4 Public Information Signs ........................................................................................................ 13

Figure: 16 TAC §31.4(b)(4) – Health Risk Warning Sign (English/Spanish) ......................................... 14

§31.5 Public Information Act Requests ............................................................................................ 15

§31.6 Establishment of Advisory Committees .................................................................................. 15

§31.7 Internal Audit Advisory Committee ........................................................................................ 15

§31.8 Advisory Committee on Major Information Technology Projects .......................................... 16

§31.9 Public Safety Advisory Committee ......................................................................................... 17

§31.10 Complaints .............................................................................................................................. 17

Figure: 16 TAC §31.10(d) – TABC Complaint Form .............................................................................. 18

§31.11 Family Leave Pool .................................................................................................................. 19

§31.12 Training and Education of Commission Employees ............................................................... 20

§31.13 Enhanced Contract Monitoring ............................................................................................... 21

Chapter 33: Licensing ............................................................................................................................... 22

SUBCHAPTER A: Applications ............................................................................................................. 22

§33.1 General Provisions .................................................................................................................. 22

§33.2 Application and Fee Payment Procedures ............................................................................... 22

§33.3 Process to Apply for License or Permit................................................................................... 23

§33.4 Deferred Adjudication ............................................................................................................. 24

§33.5 Food and Beverage Certificate ................................................................................................ 25

§33.6 Financial Interest ..................................................................................................................... 27

§33.10 Citizenship and Status ............................................................................................................. 27

SUBCHAPTER B: Fees and Payments .................................................................................................. 28

§33.22 Administrative Fees ................................................................................................................ 28

§33.23 License and Permit Fees ......................................................................................................... 28

Figure: 16 TAC §33.23(b) – License/Permit Fees ................................................................................. 28

§33.24 Late Fees ................................................................................................................................. 30

§33.25 Refunds of License and Permit Fees ....................................................................................... 30

§33.26

Secondary Licenses, Permits, and Certificates ....................................................................... 31

§33.29 Registration of Nonresident Brewer's Agent ........................................................................... 31

SUBCHAPTER C: Bonds ....................................................................................................................... 31

§33.40 General Provisions .................................................................................................................. 31

§33.41 Conduct Surety Bonds ............................................................................................................ 33

§33.42 Performance Bonds ................................................................................................................. 34

§33.43 When Excise Tax Bonds Are Necessary ................................................................................. 35

§33.44 Excise Tax Bonds .................................................................................................................... 36

§33.45 Bonds for Alternating Brewery Proprietorships and Contract Brewing Arrangements .......... 37

SUBCHAPTER D: Application Review and Protests ............................................................................ 38

§33.50 Purpose and Authority ............................................................................................................. 38

§33.51 Definitions ............................................................................................................................... 38

§33.53 Applicable Rules ..................................................................................................................... 39

§33.54 Delegation of Application Approvals ...................................................................................... 39

§33.55 Conditional Approval .............................................................................................................. 39

§33.56 Alternative Dispute Resolution ............................................................................................... 39

§33.57 Application Withdrawn ........................................................................................................... 40

§33.58 Management Review............................................................................................................... 40

§33.59 Denial of Application after Referral of Protest for Hearing .................................................... 41

§33.60 Request for Hearing on Recommendation of Application Denial ........................................... 41

§33.61 Commission Action on Contested Applications ...................................................................... 42

§33.62 Filing a Protest of a License or Permit Application ................................................................ 42

§33.63 Withdrawal of Protest ............................................................................................................. 43

SUBCHAPTER E: Events at a Temporary Location .............................................................................. 44

§33.70 Scope and Applicability .......................................................................................................... 44

§33.71 Classification of Event Authorizations ................................................................................... 44

§33.72 Term of Authorization; Annual Limitation on Authorizations ................................................ 45

§33.73 General Provisions .................................................................................................................. 46

§33.74 Late Filing Fees ....................................................................................................................... 47

§33.75 Penalties and Suspension ........................................................................................................ 47

§33.76 File and Use Notifications ....................................................................................................... 48

§33.77 Request for Temporary Event Approval .................................................................................. 48

§33.78 Nonprofit Entity Temporary Events ........................................................................................ 49

§33.79 Serving Alcoholic Beverages at Fundraising Events .............................................................. 50

§33.80 Temporary Events Authorized under a Mixed Beverage Permit ............................................. 51

§33.81

Purchase of Alcoholic Beverages for a Temporary Event ....................................................... 52

SUBCHAPTER F: License and Permit Action ....................................................................................... 52

§33.90 Renewal of Licenses and Permits after Expiration ................................................................. 52

§33.91 Administrative Inactivation, Reinstatement and Renewal of a License or Permit .................. 53

§33.92 Notification of Expired or Suspended Licenses and Permits .................................................. 54

§33.93 Notification Requirements ...................................................................................................... 54

§33.94 Reporting Permit or License Changes .................................................................................... 54

SUBCHAPTER G: Emergency Orders ................................................................................................... 55

§33.100 General Provisions .................................................................................................................. 55

§33.101 Authority of the Executive Director ........................................................................................ 56

§33.102 Term of Suspension ................................................................................................................. 56

§33.103 Notice and Opportunity for Hearing ....................................................................................... 56

§33.104 Contents of Emergency Order ................................................................................................. 56

§33.105 Appeals of Emergency Orders ................................................................................................ 56

Chapter 34: Schedule and Sanction of Penalties .................................................................................... 57

§34.1 General Provisions .................................................................................................................. 57

§34.2 Schedule of Sanctions and Penalties for Health, Safety and Welfare Violations .................... 58

Figure: 16 TAC §34.2(e) – Schedule of Penales for Health, Safety and Welfare Violaons ............... 59

§34.3 Offenses Against the General Welfare; Place or Manner Violations ....................................... 62

§34.4 Suspensions ............................................................................................................................. 63

§34.10 Sanctions for Regulatory Violation ......................................................................................... 65

Figure 16 TAC 34.10(g) – Sancons for Regulatory Violaons ............................................................ 65

§34.20 Attribution of Actions of Employee to License or Permit Holder .......................................... 71

§34.21 Mandatory Participation in Seller Server Certification ........................................................... 73

§34.22 Liability for Actions of Alcohol Delivery Drivers .................................................................. 74

Chapter 35: Enforcement ......................................................................................................................... 76

§35.1 Reporting a Breach of the Peace ............................................................................................. 76

§35.2 Physical Inspection of Licensed and Permitted Premises ....................................................... 78

§35.3 Risk-Based Inspection of Licensed and Permitted Premises .................................................. 78

§35.4 Possession and Sale of Firearms on Licensed Premises ......................................................... 79

Chapter 37: Legal...................................................................................................................................... 81

SUBCHAPTER A: Rules of Practice ...................................................................................................... 81

§37.2 Contested Case ........................................................................................................................ 81

§37.5 Determining Population .......................................................................................................... 81

Chapter 39: Port of Entry ........................................................................................................................ 82

§39.1 Personal Importation ............................................................................................................... 82

§39.2 Calculation of Taxes Due ........................................................................................................ 82

§39.3 Assessment of Administrative Fee .......................................................................................... 82

§39.4 Table of Taxes Due for Liquor ................................................................................................ 83

§39.5 Alcoholic Beverages Not Permitted for Personal Importation ................................................ 83

Chapter 41: Auditing ................................................................................................................................ 84

SUBCHAPTER A: General Provisions .................................................................................................. 84

§41.1 Scope & Applicability ............................................................................................................. 84

§41.2 Timely Filing of Reports ......................................................................................................... 84

§41.3 Required Signature .................................................................................................................. 84

§41.4 Report and Record Retention .................................................................................................. 84

§41.5 Records and Invoice Requirements ......................................................................................... 84

§41.6 Failure to Make Reports and Records ..................................................................................... 85

SUBCHAPTER B: Recordkeeping & Reports ....................................................................................... 85

§41.11 Basic General Records Required ............................................................................................ 85

§41.12 Compliance Reporting by License and Permit Holders .......................................................... 86

§41.13 Carrier Report ......................................................................................................................... 86

§41.14 Transfer of Alcoholic Beverages by Package Stores and Wine-Only Package Stores ............ 87

§41.15 Transportation of Imported Alcoholic Beverages ................................................................... 87

§41.16 Tamper-proof Containers ........................................................................................................ 88

§41.17 Bottle Capping Devices .......................................................................................................... 88

§41.18 Vehicle Identification and Liability ......................................................................................... 88

§41.19 Regional Forwarding Centers ................................................................................................. 89

§41.20 Warehouse Registration .......................................................................................................... 90

§41.21 Bonded Warehouse Report ...................................................................................................... 90

§41.22 Record Requirements: Export ................................................................................................. 91

§41.23 Sale and Delivery of Malt Beverages to Retail Premises and Private Clubs .......................... 91

§41.24 Providing Retailer Samples: Nonresident Seller ..................................................................... 92

§41.25 Providing Retailer Samples: Distiller’s and Rectifier’s Permit ............................................... 92

§41.26 Nonresident Seller’s Report .................................................................................................... 92

§41.27 Nonresident Brewer’s Report .................................................................................................. 93

SUBCHAPTER C: Excise Taxes ............................................................................................................ 93

§41.30 Excise Tax ............................................................................................................................... 93

§41.31 Monthly Report of Distilled Spirits, Wines, and Malt Beverages ........................................... 94

§41.32

Out-Of-State Winery Direct Shipper's Permits ....................................................................... 94

§41.33 Excise Tax Exemptions ........................................................................................................... 96

§41.34 Sacramental Wine ................................................................................................................... 96

§41.35 Reporting Required for Export of Alcoholic Beverages ......................................................... 96

§41.36 Export of Malt Beverages not Legal for Sale .......................................................................... 96

§41.37 Destructions ............................................................................................................................ 97

§41.38 Production Record .................................................................................................................. 99

§41.39 Amount of Excise Tax Bonds ................................................................................................. 99

§41.40 Reports Required for Brewpubs .............................................................................................. 99

SUBCHAPTER D: Sales of Alcoholic Beverages Not In Regular Course of Business ....................... 100

§41.41 Sale to and by Lien Holders .................................................................................................. 100

§41.42 Sale by Carrier ...................................................................................................................... 101

§41.43 Sale after Cancellation, Expiration, or Voluntary Suspension of License or Permit ............. 101

SUBCHAPTER E: Private Clubs ......................................................................................................... 102

§41.50 General Provisions ................................................................................................................ 102

§41.51 Requirements for Permit; Membership ................................................................................. 102

§41.52 Temporary Memberships ...................................................................................................... 103

§41.53 Pool Systems ......................................................................................................................... 104

§41.54 Locker Systems ..................................................................................................................... 105

§41.55 Food Service ......................................................................................................................... 106

§41.56 Enforcement .......................................................................................................................... 106

SUBCHAPTER F: Identification Stamps ............................................................................................. 106

§41.60 Identification Stamps and Local Distributor's Records ......................................................... 106

Chapter 45: Marketing Practices .......................................................................................................... 109

SUBCHAPTER A: General Provisions ................................................................................................ 109

§45.1 Statutory Authority and Applicability ................................................................................... 109

§45.2 Definitions ............................................................................................................................. 109

§45.3 General Prohibition ............................................................................................................... 110

§45.4 Product Registration Required .............................................................................................. 110

§45.5 Denial of Product Registration .............................................................................................. 111

§45.6 Revocation of Registration .................................................................................................... 111

§45.7 Time Limitation for Processing Product Registration Application ....................................... 111

§45.8 Protest ................................................................................................................................... 112

§45.9 Withdrawal of Application .................................................................................................... 112

§45.10 Application Fee ..................................................................................................................... 112

§45.11

When Reapplication is Required ........................................................................................... 112

§45.12 Application Procedures during Interruption of Federal Agency Operations ......................... 113

SUBCHAPTER B: Enforcement .......................................................................................................... 114

§45.20 Exhibiting Certificates to Representatives of the Commission ............................................. 114

§45.21 Examination and Testing of Product ..................................................................................... 114

§45.23 Alteration of Labels .............................................................................................................. 114

§45.24 Records Retention ................................................................................................................. 114

§45.25 Damaged Stock ..................................................................................................................... 115

§45.26 Intrastate Bottling .................................................................................................................. 115

§45.27 Illicit Beverage ...................................................................................................................... 115

SUBCHAPTER C: Specific Requirements for Distilled Spirits ........................................................... 115

§45.30 Certificate of Registration for a Distilled Spirit Product ...................................................... 115

SUBCHAPTER D: Specific Requirements for Malt Beverages ........................................................... 116

§45.40 Certificate of Registration for a Malt Beverage Product....................................................... 116

§45.41 Additional Reasons for Denial of Registration of a Malt Beverage Product ........................ 117

§45.42 Misbranding .......................................................................................................................... 118

§45.43 Verification Regarding Use of Facilities ............................................................................... 118

SUBCHAPTER E: Specific Requirements for Wine ............................................................................ 118

§45.50 Certificate of Registration for Wine ...................................................................................... 118

§45.51 Additional Provisions for Examination of Wine ................................................................... 119

SUBCHAPTER F: Advertising and Promotion .................................................................................... 119

§45.101 Rebates and Coupons ............................................................................................................ 119

§45.102 Loyalty Programs .................................................................................................................. 120

§45.103 On-Premises Promotions ....................................................................................................... 120

§45.105 Advertising ............................................................................................................................ 122

§45.106 Sweepstakes and Games of Chance ..................................................................................... 123

§45.107 Alcoholic Beverages Used for Cooking On Premises .......................................................... 125

§45.109 Restocking and Rotation of Alcoholic Beverages ................................................................ 126

§45.110 Inducements .......................................................................................................................... 127

§45.111 Advertising Signs at Charitable or Civic Events ................................................................... 128

§45.112 Use of Brand Names and Insignia ......................................................................................... 129

§45.113 Gifts, Services and Sales ....................................................................................................... 130

§45.117 Gifts and Advertising Specialties .......................................................................................... 132

§45.120 Co-Packaging of Alcoholic Beverage ................................................................................... 133

§45.121 Advertising Standards Required ........................................................................................... 134

§45.122

Prohibited Statements ........................................................................................................... 134

§45.123 Required Statements ............................................................................................................. 136

§45.124 Lettering ................................................................................................................................ 136

§45.125 Cooperative Advertising by Package Stores ......................................................................... 136

§45.126 Additional Mandatory Statements for Distilled Spirits ......................................................... 136

§45.127 Additional Prohibited Statements for Distilled Spirits .......................................................... 137

SUBCHAPTER G: Regulation of Cash and Credit Card Transactions ................................................ 137

§45.130 Credit Law and Delinquent List ............................................................................................ 137

§45.131 Cash Law .............................................................................................................................. 141

Chapter 50: Alcoholic Beverage Seller Server Training and Delivery Driver Training ................... 144

SUBCHAPTER A: General and Administrative Provisions ................................................................. 144

§50.1 Purpose and Authority ........................................................................................................... 144

§50.2 Definitions ............................................................................................................................. 144

SUBCHAPTER B: Mandatory Curriculum and Course of Instruction ................................................ 146

§50.3 Mandatory Course Curriculum ............................................................................................. 146

§50.4 Commission Approval of Classroom-Based Course of Instruction ...................................... 147

§50.5 Commission Approval of Internet-Based Course of Instruction ........................................... 148

§50.6 Management of Classroom-Based Course of Instruction ..................................................... 149

§50.7 Management of Internet-Based Course of Instruction .......................................................... 149

§50.8 Management of In-House Course of Instruction ................................................................... 151

SUBCHAPTER C: Seller Server School Certificates and Requirements ............................................. 151

§50.9 Issuance of Seller Server Certificates ................................................................................... 151

§50.10 Requirements for Records, Reports and Notices .................................................................. 152

§50.11 Grounds for Refusing to Process Application ....................................................................... 154

§50.12 Suspension or Cancellation of School's Certificate .............................................................. 156

§50.13 Grounds for Suspension or Cancellation of School's Certificate .......................................... 156

§50.14 Prohibited Relationships ....................................................................................................... 158

§50.16 Application for Branch Classroom-Based Seller Server School Certificate ......................... 160

§50.17 Application for Primary Internet-Based Seller Server School Certificate ............................ 161

§50.18 Application for Branch Internet-Based or Branch Mobile Application Seller Server School

Certificate .............................................................................................................................................. 163

§50.19 Application for Primary In-House Seller Server School Certificate ..................................... 164

§50.20 Application for Branch In-House Seller Server School Certificate ...................................... 166

§50.21 Renewal Application ............................................................................................................. 169

§50.22 Expiration and Fees ............................................................................................................... 169

§50.23

Change of Ownership............................................................................................................ 171

§50.24 Notice of Change of Location ............................................................................................... 171

SUBCHAPTER D: Seller Server Trainer Certificate ............................................................................ 171

§50.25 Seller Server Trainer Certificate ........................................................................................... 171

§50.26 Trainer Standards and Requirements .................................................................................... 173

§50.27 Suspension or Cancellation of Seller Server Trainer Certificate ........................................... 175

SUBCHAPTER E: Seller Server Certificates ....................................................................................... 175

§50.28 Verification and Expiration of Certificate ............................................................................. 175

§50.29 Seller Server Certificate Requirements ................................................................................. 175

§50.30 Void and Voidable Seller Server Certificates ........................................................................ 176

§50.31 Revocation ............................................................................................................................ 176

SUBCHAPTER F: Consumer Delivery ................................................................................................ 177

§50.32 Alcohol Delivery Driver Training Program .......................................................................... 177

§50.33 Alcohol Delivery Compliance Software Applications .......................................................... 178

Chapter 31: Administration

§31.1 Separation of Duties Between Commission and Executive Director

(a) This rule implements §5.12 of the Alcoholic Beverage Code (Code), which requires the Texas

Alcoholic Beverage Commission (commission) to adopt rules to clearly separate the policy-making

authority of the commissioners from the management responsibilities of the executive director, and

§5.34(b) of the Code, which requires the commission to develop and implement policies that clearly

define the respective responsibilities of the commission and staff.

(b) The commission retains the duty and authority to:

(1) Establish agency policies and goals to carry out the duties and authority granted to the

commission under the Code;

(2) Provide leadership and direction to ensure agency laws, rules, policies and goals are

implemented in a responsible, effective and cost efficient manner;

(3) Ensure accountability and transparency within the agency and to the Governor, the Legislature,

the public, and persons regulated;

(4) Appoint and remove the executive director;

(5) Adopt agency rules to implement statutory duties and agency policies;

(6) Employ or appoint and terminate or remove an internal auditor, adopt an audit plan, approve

audit findings and ensure agency compliance with audit requirements;

(7) Exercise any authority and carry out any duty of the commission not delegated to the executive

director;

(8) Render the final decision in any contested disciplinary action that has had an administrative

hearing;

(9) Approve or decline the settlement of any disciplinary action that carries a civil penalty of ten

million dollars ($10,000,000) or more; and

(10) Approve or decline the settlement of any disciplinary action that the executive director

recommends and that is accepted for consideration by:

(A) the presiding officer of the commission; or

(B) at least two commission members.

Alcoholic Beverage Code §5.11(b), also referred to as the administrator in the Alcoholic Beverage

Code and the commission's rules):

(1) Plan and implement an effective an efficient operational and organizational structure;

(2) Act as the agency liaison and resource to the executive and legislative branch;

(3) Prepare and submit the agency budget and appropriations requests;

(4) Employ and terminate the general counsel, who shall report directly to the executive director;

(5) Employ or appoint an executive management team with the skills, knowledge and commitment

necessary to achieve the goals and implement the policies adopted by the commission;

(6) Assign and delegate to each member of the executive management team and the general counsel

the responsibility and authority necessary to effectively administer all agency operations, duties

and functions, implement policy, and manage staff and resources, including the authority to

further delegate and assign the essential duties and responsibilities of the agency to ensure the

highest and best use of agency staff and resources;

(7) Develop, monitor and report measures or expectations for the administrative, regulatory and

enforcement functions of the agency to ensure that the agency goals are accomplished and

policies followed;

(8) Develop and implement comprehensive and agency-wide internal policies and procedures

necessary to carry out each essential function, duty, policy or goal of the agency;

(9) Ensure that all agency staff has access to, knowledge of and responsibility for consistently

following policies adopted by the commission and agency-wide internal policies and

procedures;

(10) Administer the oath of office or commission to agency staff and agents;

(11) Render, or delegate to agency staff, the agency decision or order in any matter over which the

agency has final decision-making authority unless otherwise retained by the commission in

subsection (b) of this section; and

(12) Execute contracts, specifically including but not limited to approving and signing contracts for

the purchase of goods or services that have a value exceeding $1 million. Notwithstanding

paragraph (5) of this subsection, the authority to approve and sign contracts for the purchase of

goods or services that have a value exceeding $1 million shall not be delegated by the executive

director to staff.

(13) Nothing in this section shall be construed to limit the general counsel's duty to advise the

commissioners directly as their legal counsel, with all duties to the client, legal privileges, and

ethical requirements generally applicable to the attorney-client relationship.

Source Note: The provisions of this §31.1 adopted to be effective August 30, 2009, 34 TexReg 5910;

amended to be effective November 15, 2012, 37 TexReg 8972; amended to be effective December 8,

2015, 40 TexReg 8754; amended to be effective June 9, 2020, 45 TexReg 3768

§31.2 State-owned Motor Vehicles

(a) Exemption from inscription requirements for state-owned vehicles.

(1) This subsection implements §721.003, Transportation Code, relating to exemption from

inscription requirement for certain state-owned vehicles, which requires the commission to

adopt a rule to be exempt from the inscription requirements of Chapter 721.

(2) The primary use of the state-owned vehicles for which an exemption is sought is the

transportation of commission employees engaged in the prevention, detection, investigation and

enforcement of criminal and regulatory violations of the Alcoholic Beverage Code.

(3) Not printing inscriptions on commission vehicles will: increase effectiveness of enforcement

and compliance operations and activities; increase the safety of commission employees engaged

in enforcement and compliance operations and activities; and, decrease the risk of damage to

state-owned vehicles and property.

(b) Assignment of Vehicles.

(1) This subsection implements §2171.1045, Government Code, relating to the restrictions on

assignment of state vehicles.

(2) Vehicles are assigned to commission executive staff whose essential agency duties and

functions require them to have vehicles available on a regular or frequent basis to provide state-

wide oversight, management and supervision of agency staff.

(3) Pool vehicles are maintained at headquarters to reduce the cost to the state for travel required by

qualified agency staff whose essential duties and functions require regular or periodic travel by

vehicle.

(4) Vehicles are assigned to field operation employees whose essential agency duties and functions

require daily and extensive use of vehicles and the cost to the state of providing a state-owned

vehicle is less than the cost of reimbursing employees for the use of personal vehicles.

Source Note: The provisions of this §31.2 adopted to be effective August 30, 2009, 34 TexReg 5911

§31.3 Petition for the Adoption of a Rule

(a) Purpose. This section implements Government Code §2001.021 and provides procedures for any

interested person (petitioner) to request the Alcoholic Beverage Commission (commission) to adopt

a rule. The petitioner must be:

(1) a resident of this state;

(2) a business entity located in this state;

(3) a governmental subdivision located in this state; or

(4) a public or private organization located in this state that is not a state agency.

(b) Content of Petition.

(1) The petition must be in writing. No form is required but all information must be provided, or a

reason why required information cannot be provided given.

(2) The petition must contain the following:

(A) petitioner's name, address, organization or affiliation, if any, and the name of the person or

entity on whose behalf the petition is filed, if different from the person submitting the

petition;

(B) a plain and brief statement about why a rule or change in an existing rule is needed,

required, or desirable, including the public good to be served and any effect on those who

would be required to comply with the rule;

administering the proposed rule, an estimate of the economic impact on persons required to

comply with the proposed rule, whether there may be an effect on local employment, and

the facts, assumptions and methodology used to prepare estimates and impacts required by

this subparagraph;

(D) a statement on the commission's authority to adopt the proposed rule;

(E) the proposed text of a new rule, or proposed changes to an existing rule; and

(F) a list of individuals, organizations or affiliations that may be interested or affected by the

proposed rule, if known.

must be addressed to the Executive Director, Texas Alcoholic Beverage Commission, and mailed to

P.O. Box 13127, Austin, Texas 78711-3127, e-mailed to rul[email protected]exas.gov, or hand delivered to

the Executive Director at commission headquarters in Austin, Texas.

(d) Review. The Executive Director will review the petition for compliance with the requirements of this

section. If all requirements of this section are met, the Executive Director will bring the petition to

the commission, except as provided otherwise in this section.

(e) Decision to Deny or Accept. The commission will deny a petition for rulemaking, or accept, in whole

or in part, a petition for rulemaking within 60 days from the date the petition is submitted. If the

commission neither denies nor accepts the petition within 60 days from the date it is submitted,

agency staff will initiate the rulemaking process under Chapter 2001, Subchapter B, of the

Government Code. In such case, agency staff may redraft the proposed text to conform to style and

format requirements for the agency's rules.

(1) The Executive Director will notify the petitioner in writing if the petition is denied and state the

reason or reasons for the denial.

(2) The commission will refer an accepted petition to agency staff to initiate the rulemaking process

under Chapter 2001, Subchapter B, of the Government Code. Agency staff may redraft the

proposed text to conform to style, format and policy decisions of the agency.

(f) Repetitive petitions. The Executive Director may refuse to bring a petition for rulemaking to the

commission if, within the preceding year, the commission has considered a previously submitted

petition for the same rule.

Source Note: The provisions of this §31.3 adopted to be effective August 30, 2009, 34 TexReg 5911;

amended to be effective June 17, 2015, 40 TexReg 3642; amended to be effective December 8, 2015, 40

TexReg 8755; amended to be effective February 13, 2023, 48 TexReg 659

§31.4 Public Information Signs

(a) Complaint Sign. In accordance with Alcoholic Beverage Code §5.53(d), any licensed or permitted

business in the state authorized to sell or serve alcoholic beverages to the ultimate consumer shall

display at the place of business in a prominent place easily seen by the public, i.e. near the door or by

the cash register, a sign stating the following: "If you have a complaint about the sale or service of

alcoholic beverages in this establishment, please contact the Texas Alcoholic Beverage Commission

by mail at P.O. Box 13127, Austin, Texas 78711-3127, by phone at 1-888-THE-TABC, by visiting

www.tabc.texas.gov, or through the Alcohol Industry Management System, which can be accessed

via the commission's public website."

(1) This sign shall be no smaller than 6 inches by 3-1/2 inches and shall be in lettering or type of a

size sufficient to render it both conspicuous and readily legible.

(2) The sign shall be made of sturdy material; if made of paper, the weight shall be no less than 65#

stock.

(b) Health Risk Warning Sign. In accordance with Alcoholic Beverage Code §§11.042 and 61.111, a

holder of a license or permit authorizing the sale of alcoholic beverages for on premises consumption

shall display a health risks warning sign. The health risks warning sign must:

(1) be posted at each egress of all public restrooms on the licensed premises;

(2) be placed at a level where the sign can be easily seen by persons exiting the restroom;

(3) be not less than 8 1/2 x 11 inches in size;

(4) the following language shall be printed in English and in Spanish, in bold black type on a white

surface, or other clearly legible graphic design, with a font or type set size of not less than 28

point Arial or Helvetica:

Figure: 16 TAC §31.4(b)(4) – Health Risk Warning Sign (English/Spanish)

licensee or permittee.

Source Note: The provisions of this §31.4 adopted to be effective February 24, 1994, 19 TexReg 1037;

amended to be effective December 22, 1994, 19 TexReg 9747; amended to be effective February 19,

2008, 33 TexReg 1322; amended to be effective August 16, 2016, 41 TexReg 5998; amended to be

effective September 1, 2023, 48 TexReg 659

§31.5 Public Information Act Requests

(a) To the extent applicable, charges made for providing copies of public information by the Texas

Alcoholic Beverage Commission shall be assessed in accordance with the schedule of charges

maintained by the Office of the Attorney General in Title 1, Chapter 70 of the Texas Administrative

Code.

(b) The general counsel or the general counsel's designee shall be the agency's public information

coordinator. The public information coordinator is subject to the direction of the executive director,

who is the officer for public information of the agency pursuant to Texas Government Code

§552.201(a).

Source Note: The provisions of this §31.5 adopted to be effective July 28, 1994, 19 TexReg 5626;

amended to be effective May 24, 1998, 23 TexReg 5434; amended to be effective August 25, 2013, 38

TexReg 5257; amended to be effective February 13, 2023, 48 TexReg 659

§31.6 Establishment of Advisory Committees

(a) This rule implements Alcoholic Beverage Code §5.21, which authorizes the commission, by rule, to

establish advisory committees as necessary to accomplish the purposes of the Alcoholic Beverage

Code, and to meet the changing needs of the agency. Government Code Chapter 2110 applies to an

advisory committee created by the commission.

(b) The commission rule establishing an advisory committee shall contain, at a minimum, the following

information:

(1) the purpose, role, and goal of the committee;

(2) composition and representation requirements;

(3) qualifications of the members, such as experience or geographic location;

(4) terms of service of committee members;

(5) any necessary training requirements; and

(6) the method the agency will use to receive public input on issues considered by the advisory

committees.

(d) The presiding officer of the commission shall appoint the members of an advisory committee.

(e) Each advisory committee shall hold at least one meeting per calendar year.

Source Note: The provisions of this §31.6 adopted to be effective February 19, 2020, 45 TexReg 1017;

amended to be effective February 13, 2023, 48 TexReg 659

§31.7 Internal Audit Advisory Committee

(a) Pursuant to Texas Alcoholic Beverage Code § 5.21 and commission Rule 31.6, the commission

hereby establishes an Internal Audit Advisory Committee ("Committee").

(b) The purpose, role, and goal of the Committee is to advise the commission on the agency's internal

audit processes.

members of the public to serve on the Committee. The Committee shall select from among its

members a presiding officer.

(d) Each public member must either:

(1) hold an ownership interest or management position with an active TABC licensee or permittee;

(2) hold a certified public accountant license or similar financial industry credentials.

(e) The commission's general counsel or another commission attorney assigned by the general counsel

shall provide legal counsel to the Committee.

(f) Within 60 days after the first Committee meeting, Committee members shall complete training

provided by the commission's General Counsel's office regarding compliance with the Texas Public

Information Act and other applicable ethics rules.

(g) The Committee shall report to the commission at the times and in the manner it determines will best

assist the commission and in compliance with the Texas Open Meetings Act.

Source Note: The provisions of this §31.7 adopted to be effective February 14, 2022, 47 TexReg 647;

amended to be effective February 13, 2023, 48 TexReg 659

§31.8 Advisory Committee on Major Information Technology Projects

(a) Pursuant to Texas Alcoholic Beverage Code § 5.21 and commission Rule 31.6, the commission

hereby establishes the Advisory Committee on Major Information Technology Projects

("Committee").

(b) The purpose, role, and goal of the Committee is to advise the commission on the agency's use and

development of major information technology projects.

members of the public to serve on the Committee. The Committee shall select from among its

members a presiding officer.

(d) Each public member must either:

(1) hold an ownership interest or management position with an active TABC licensee or permittee;

(2) be a practicing attorney in the field of alcohol regulation; or

(3) have significant experience in information system technology deployment.

(e) The commission's general counsel or another commission attorney assigned by the general counsel

shall provide legal counsel to the Committee.

(f) Within 60 days after the first Committee meeting, Committee members shall complete training

provided by the commission's General Counsel's office regarding compliance with the Texas Public

Information Act and other applicable ethics rules.

(g) The Committee shall report to the commission at the times and in the manner it determines will best

assist the commission and in compliance with the Texas Open Meetings Act.

Source Note: The provisions of this §31.8 adopted to be effective February 14, 2022, 47 TexReg 647;

amended to be effective February 13, 2023, 48 TexReg 659

§31.9 Public Safety Advisory Committee

(a) Pursuant to Texas Alcoholic Beverage Code §5.21 and commission Rule 31.6, the commission

hereby establishes the Public Safety Advisory Committee ("Committee").

(b) The purpose, role, and goal of the Committee is to advise the commission on the agency's public

safety initiatives.

members of the public to serve on the Committee. The Committee shall select from among its

members a presiding officer.

(d) Each public member must either:

(1) hold an ownership interest or management position with an active on-premises retail licensee or

permittee;

(2) be a practicing attorney in the field of alcohol regulation; or

(3) have retired from a Texas statewide or a federal law enforcement agency.

(e) The commission's general counsel or another commission attorney assigned by the general counsel

shall provide legal counsel to the Committee.

(f) Within 60 days after the first Committee meeting, Committee members shall complete training

provided by the commission's General Counsel's office regarding compliance with the Texas Public

Information Act and other applicable ethics rules.

(g) The Committee shall report to the commission at the times and in the manner it determines will best

assist the commission and in compliance with the Texas Open Meetings Act.

Source Note: The provisions of this §31.9 adopted to be effective February 14, 2022, 47 TexReg 647;

amended to be effective August 16, 2022, 47 TexReg 4849; amended to be effective February 13, 2023,

48 TexReg 659

§31.10 Complaints

(a) This rule applies to complaints filed with the commission regarding an entity that is subject to

commission jurisdiction.

(b) A person may file a complaint by:

(1) sending a completed complaint form to: Texas Alcoholic Beverage Commission, Att:

Enforcement Division, P.O. Box 13127, Austin, Texas 78711;

(2) calling 1-888-THE-TABC (843-8222);

(3) through Alcohol Industry Management System, which can be accessed via the commission's

public website; or

(4) by sending a completed complaint form to complaints@tabc.texas.gov.

of this chapter.

(d) The commission adopts the form in Figure: 16 TAC §31.10(d) for filing complaints against a

licensed or permitted entity. For complaints received by telephone, an agency employee may

complete the form on behalf of the caller. In all other cases, the form must be completed by the

person filing the complaint. This form is available for download on the commission's website.

Figure: 16 TAC §31.10(d) – TABC Complaint Form

(e) The agency shall process complaints as follows:

(1) the agency receives complaints through the means listed in subsection (b) of this section;

(2) designated agency employees assign each complaint to the appropriate division based upon the

subject matter of the complaint;

(3) the division supervisor or their designee determines whether the complaint is under the

commission's jurisdiction and if not, marks the complaint as rejected;

(4) the division supervisor or their designee may forward the complaint to a local law enforcement

agency or other authority if the supervisor believes the other agency or authority may have

jurisdiction over the complaint. If the complaint is forwarded the complainant will be notified if

contact information was provided with the complaint;

(5) if the division supervisor or their designee finds that the commission has jurisdiction over the

complaint, the supervisor will assign the appropriate TABC employee to manage the complaint.

(6) Complaint designations.

(A) the division supervisor or their designee will designate the complaint as closed, rejected, or

resolved in the public database.

(B) A complaint is:

(i) closed when a new investigation is opened or when the complaint can be associated

with an existing investigation;

(ii) rejected when it does not fall under the agency's jurisdiction; and

(iii) resolved when the complaint resolution does not require an investigation.

(7) The agency employee assigned to manage a complaint will contact the complainant to inform

them of receipt of the complaint and the final disposition of the complaint, if the complainant

provided contact information and indicated a desire to be so informed.

Source Note: The provisions of this §31.10 adopted to be effective February 13, 2023, 48 TexReg 659

§31.11 Family Leave Pool

(a) This rule relates to Texas Government Code Chapter 661, Subchapter A-1, establishing the state

employee family leave program.

(b) The director of human resources is designated as the TABC Family Leave Pool (FLP) Administrator.

Benefits@tabc.texas.gov.

(d) A TABC employee may apply for leave from the FLP if the employee has exhausted all available

leave and experiences:

(1) the birth of a child;

(2) the placement of a foster child or adoption of a child under 18 years of age;

(3) the placement of any person 18 years of age or older requiring guardianship;

(4) a serious illness to the employee or an immediate family member, including a pandemic-related

illness; or

(5) an extenuating circumstance created by an ongoing pandemic, including providing essential

care to a family member.

(e) The employee is solely responsible for the payment of any income tax resulting from their donation

or withdrawal of leave from the FLP.

(f) An employee who chooses to donate leave hours to the FLP must donate at least eight hours, unless

the employee is separating from the agency. An employee separating from the agency may donate

any number of leave hours to the FLP.

(g) Once donated to the FLP, leave hours cannot be recouped by the donating employee.

(h) Employees may not have outside employment while using FLP leave.

(i) Retiring employees will not receive additional retirement credit with the Employee Retirement

System for hours donated to the FLP.

Source Note: The provisions of this §31.11 adopted to be effective February 13, 2023, 48 TexReg 659

§31.12 Training and Education of Commission Employees

(a) The commission may use state funds in accordance with Government Code §§656.041 - 656.104 to

provide training and education for its employees.

(b) Training or education provided pursuant to subsection (a) of this section shall be related to the

employee's current position or prospective job duties within the commission.

the employee's current or prospective job duties as a condition of employment.

(d) Participation in training or education programs requires the approval of the employee's supervisors

prior to participation and is subject to the availability of funds in the commission's budget.

(e) The employee training and education program for the commission may include:

(1) mandatory agency-sponsored training or education required for all employees;

(2) training or education relating to technical or professional certifications and licenses;

(3) training and education designed to promote employee development;

(4) employee-funded external education;

(5) commission-funded external education;

(6) a tuition-reimbursement program; and

(7) such other training or education determined by the commission to be of benefit to the employee

and the commission, and to promote effective state administration pursuant to Government

Code §656.042.

(f) Approval to participate in any portion of the commission's training and education program shall not

in any way: affect an employee's at-will employment status; constitute a guarantee or indication of

continued employment; or constitute a guarantee or indication of future employment in a current or

prospective position.

(g) Approval to participate in any training or education program may be withdrawn if the commission

determines, in its sole discretion, that participation would negatively affect the employee's job duties

or performance.

Source Note: The provisions of this §31.12 adopted to be effective February 18, 2013, 38 TexReg 823

§31.13 Enhanced Contract Monitoring

(a) The Texas Alcoholic Beverage Commission (TABC) shall identify contracts that require enhanced

monitoring.

(b) In determining which contracts require enhanced monitoring, TABC shall consider factors including:

(1) contract amount;

(2) risk;

(3) special circumstances of project; and

(4) scope of goods or services provided.

(d) Enhanced contract monitoring reports shall be regularly provided to the executive director, and when

applicable, to the Commissioners.

Source Note: The provisions of this §31.13 adopted to be effective December 16, 2019, 44 TexReg 7681

Chapter 33: Licensing

SUBCHAPTER A: Applications

§33.1 General Provisions

(a) When used in this chapter:

(1) the word "days" refers to calendar days, unless otherwise specified; and

(2) a "business day" is any day that is not a Saturday, a Sunday, a state or federal holiday (unless the

commission is required to be open for business), or a standard Federal Reserve bank holiday.

(b) A "day" or "business day" ends at:

(1) 5:00 p.m. Central Time for submissions by hand-delivery to a commission office or by e-mail;

and

(2) 11:59 p.m. Central Time for submissions through the commission's internet-based application

information management system.

(d) When computing periods of time prescribed or allowed in subchapter D of this chapter:

(1) the day of the act, event, or default from which the designated time period begins to run is not

counted; and

(2) the last day of the time period is counted, unless it is not a business day as defined by subsection

(a)(2) of this section, in which case the time period will end on the next business day.

Source Note: The provisions of this §33.1 adopted to be effective December 6, 2021, 46 TexReg 7242

§33.2 Application and Fee Payment Procedures

(a) Applications for licenses, permits and certificates shall be made by an applicant in such a manner as

may be directed by the executive director upon forms provided by the commission.

(b) Each application shall include all information required by the executive director to ensure

compliance with all applicable statutes and rules and regulations of the agency.

application the payment of all required fees in accordance with the applicable provisions of the code

and rules.

(d) In addition to the requirements of Alcoholic Beverage Code §§5.50, 11.32, 11.35, and 61.48 and any

pertinent rule or procedure of the commission, license and permit renewal applications filed under

Alcoholic Beverage Code §6.04 must be filed with the commission no later than 11:59 p.m. or

postmarked by the thirtieth calendar day after expiration and must be complete in form and

accompanied by all state fees as well as a $100 late fee.

(e) Applicants must pay fees by cashier's check, teller's check, a check drawn on the account of the

entity applying for a permit, money order, credit card, charge card, or other electronic form of

payment approved by the commission, payable to the Texas Comptroller of Public Accounts.

Source Note: The provisions of this §33.2 adopted to be effective February 24, 1994, 19 TexReg 1038;

amended to be effective June 17, 2015, 40 TexReg 3644; amended to be effective December 31, 2020, 45

TexReg 8770; amended to be effective September 1, 2021, 46 TexReg 5178

§33.3 Process to Apply for License or Permit

(a) This section relates to any license or permit. The purpose of this section is to clarify the certification

process in subsection (b) of this section and distinguish it from the application process described in

subsections (c) and (d) of this section.

(b) Before filing an application for a license or permit that is required to be certified under §11.37 or

§61.37 of the Alcoholic Beverage Code the applicant must obtain and submit to the commission:

(1) all required certifications signed by the city secretary, where appropriate, and the county clerk

that the location for which the license or permit is sought is in a "wet" area for such license or

permit and is not prohibited by charter, by ordinance, or by valid order in reference to the sale of

any alcoholic beverage allowed by the license or permit;

(2) all other applicable certifications signed by the city secretary, where appropriate, and the county

clerk;

(3) the required certification by the Comptroller of Public Accounts that the person applying for the

license or permit holds, or has applied for and satisfies all legal requirements for, the issuance of

a sales tax permit;

(4) proof of publication of notice of the application, if required by §11.39 and §61.38 of the

Alcoholic Beverage Code; and

(5) completed commission forms and any other information reasonably requested by the

commission.

and information prescribed by the commission in accordance with the practices, policies, and

standards relating to the processing of applications for licenses and permits.

(d) If additional documentation or information is requested and not provided within the requested period

of time, the application will be considered incomplete and withdrawn.

(e) An application to renew a license or permit shall be filed with the commission no earlier than 30

days prior to its expiration date.

(f) On completion of its processing pursuant to subsection (c) of this section, the commission shall

inform the applicant that the application is granted or denied.

(g) An applicant must post the notice sign required by §§11.391 and 61.381 of the Alcoholic Beverage

Code not less than 60 days before the date the license or permit is issued unless a license or permit

authorizing the on-premises consumption of alcoholic beverages has been active at the requested

location any time during the 24 months immediately preceding the filing of the application. For

purposes of this subsection, an application is filed on the date a completed application is received by

the commission.

(h) For the purposes of §61.35(e) of the Alcoholic Beverage Code, the commission will transmit to the

county tax assessor 5% of the license fee collected for each issued license in that county. This

transmission will occur the month following the issuance of the license.

(i) Each applicant for an original or renewal license or permit that allows on-premises consumption of

any alcoholic beverage shall furnish sales data or, if not available, projection of sales for the location

at which the license or permit is located or will be located. The projection or sales data should

include a sufficient breakdown of sales into the categories of food, alcoholic beverages, and other

major categories of sales at the location.

(j) If an application is granted based in part upon an authorization issued by the TTB, and the TABC

subsequently determines that the TTB authorization was issued in error or has been canceled or

rescinded, the executive director may cancel the license or permit.

Source Note: The provisions of this §33.3 adopted to be effective December 31, 2020, 45 TexReg 8770;

amended to be effective April 15, 2021, 46 TexReg 2421; amended to be effective September 1, 2021, 46

TexReg 5178

§33.4 Deferred Adjudication

(a) This section relates to Alcoholic Beverage Code §§11.46, 25.06, 61.42, 61.43, 69.06, and 109.532.

(b) In determining whether an applicant is not qualified or is unsuitable to hold a permit or license under

Alcoholic Beverage Code §109.532(b)(1), or whether an application should be cancelled or denied

the commission may consider whether the person is currently serving deferred adjudication for:

(1) any felony offense;

(2) any controlled substance offense in the Health and Safety Code Chapter 481;

(3) any firearm or deadly weapon offense in Penal Code Chapter 46;

(4) any prostitution offense in Penal Code Chapter 43;

(5) any gambling offense in Penal Code Chapter 47;

(6) any human trafficking offense in Penal Code Chapter 20A;

(7) any fraud offense in Penal Code Chapters 32 or 35;

(8) any money laundering offense in Penal Code Chapter 34; or

(9) any violation of the Alcoholic Beverage Code.

of this section shall provide information requested by the commission to allow the commission to

determine whether the applicant is qualified or suitable to hold a license or permit. In determining

whether an applicant is qualified or suitable to hold a license or permit, the commission shall

consider the relationship between the offense and the particular license or permit being sought,

taking into account these factors:

(1) the extent and nature of the person's past criminal activity;

(2) the age of the person at the time of the crime;

(3) the amount of time that has elapsed since the person's last criminal activity;

(4) the conduct and work activity of the person prior to and following the criminal activity;

(5) evidence of the person's rehabilitation; and

(6) other evidence presented by the person of the person's present suitability, including letters of

recommendation.

(d) If an applicant has completed the conditions of a deferred adjudication prior to filing an application,

the commission will not consider the offense for which the deferred adjudication was served in

deciding whether the applicant is qualified or suitable to hold a permit or license under Alcoholic

Beverage Code §109.532(b)(1).

Source Note: The provisions of this §33.4 adopted to be effective December 31, 2020, 45 TexReg 8770

§33.5 Food and Beverage Certificate

(a) This rule relates to §§25.13, 28.18, 32.23 and 69.16 of the Texas Alcoholic Beverage Code.

(b) The following words and terms, when used in this section, shall have the following meaning unless

the context clearly indicates otherwise:

(1) Entrée--course of a meal that may include an appetizer, small plate, main dish, dessert or other

similar food item.

(2) Food service--the cooking, preparing, or assembling of food on the location available for

consumption at the location. Commercially pre-packaged items purchased off of the location

which require no cooking or assembly do not constitute food service under this section.

(3) Food service facilities--a designated permanent portion of the licensed location where food is

stored and prepared for consumption at the location.

(4) Location--the designated physical address of a premises, but also including all areas at that

address where the license or permit holder may sell, serve or deliver alcoholic beverages for

immediate consumption at the address, regardless of whether some of those areas are occupied

by other businesses, as long as those businesses are contiguous.

(5) Premises--the designated area at a location that is licensed by the commission for the sale,

service, or delivery of alcoholic beverages.

(6) Restaurant--a business that:

(A) operates its own permanent food service facility with commercial cooking equipment on its

premises; and

(B) prepares and offers to sell multiple entrees for consumption on or off the premises.

other requirements, are satisfied:

(1) multiple entrees are available to customers; and

(2) permanent food service facilities are maintained at the location; and

(3) either:

(A) the receipts from the sale of alcoholic beverages by the license or permit holder at the

location are 60 percent or less of the total receipts from the location; or

(B) the facility meets the definition of Restaurant under subsection (b)(6) of this section.

(d) The hours of operation for sale and service of food and of alcoholic beverages are the same except

that food may be sold or served before or after the legal hours for sale of alcoholic beverages.

(e) If the applicant is a hotel that maintains separate area restaurants, lounges or bars, food service

facilities must exist for each of the designated licensed premises.

(f) An applicant for an original food and beverage certificate shall furnish the following, as well as any

other information requested by the commission to ensure compliance:

(1) the menu or, if no menu is available, a listing of the food and beverage items;

(2) hours of operation of food service and hours of operation for sale or service of alcoholic

beverages;

(3) if qualifying under subsection (c)(3)(A) of this section, sales data (including complimentary

drinks, as recorded pursuant to subsection (k)(3) of this section) or, if not available, a projection

of sales. The sales data or projection of sales should include sufficient breakdown of revenues of

food, alcoholic beverages, and all other sales categories at the location (e.g., tickets,

merchandise, retail goods);

(4) if qualifying under subsection (c)(3)(B) of this section, a list of commercial cooking equipment

used in food service; and

(5) copies of floor plans of the location indicating the licensed premises and permanent areas

devoted primarily to food service.

(g) Applicants for renewal of food and beverage certificates shall submit sales data described in

subsection (k) of this section. The commission may request additional information or documentation

to indicate that the licensed location has permanent food service facilities for the preparation and

service of multiple entrees.

(h) The commission may review the operation at the location to determine that food service with food

service facilities for the preparation and service of multiple entrees is maintained. In doing so the

commission may review such items as required in the original or renewal application as well as

advertising, promotional items, changes in operations or hours, changes in floor plans, prominence of

food items on the menu as compared to alcoholic beverages, name of the business at the location,

number of transactions with food components, copies of city or county permits or certificates relating

to the type of business operation, and any other item deemed necessary or applicable.

(i) Failure to provide documentation requested or accurately maintain required records is prima facie

evidence of non-compliance.

(j) In verifying that food service is being maintained at the location, the commission may examine all

books, papers, records, documents, supplies and equipment of the certificate holder.

(k) The following recordkeeping requirements apply to certificate holders:

(1) records must be maintained to reflect separate totals for alcoholic beverage sales or service,

food sales, and all other sales categories at the location that, when combined, make up the

location's total sales;

(2) purchase invoices must be maintained to reflect the total purchases of alcoholic beverages, food

and all other purchase categories at the location;

(3) complimentary alcoholic beverages must be recorded and included in the total alcoholic

beverage sales as if they were sold and clearly marked as being complimentary; and

(4) all records must be maintained for four years and made available to authorized representatives

of the commission upon request.

(l) In considering alcoholic beverage sales, the dollar value of complimentary drinks shall be added to

total sales or service of alcoholic beverages in determining the percentage of alcoholic beverage

sales or service from the licensed premises.

(m) In determining the permanent food service facilities requirement for businesses qualifying under

subsection (c)(3)(A) of this section, the gross receipts of all business entities sharing the location will

be considered. For audit purposes, it shall be the responsibility of the food and beverage certificate

holder to provide financial and accounting records related to food, alcohol, and other major sales

categories of all business entities sharing the location. For audit purposes, if such information that is

provided is deemed insufficient to determine if a license or permit holder qualifies for issuance of a

food and beverage certificate at the location, the computation and determination of the percentage of

alcohol sales or service fees to total gross receipts at the licensed location may be based upon any

available records of information.

Source Note: The provisions of this §33.5 adopted to be effective August 31, 1995, 20 TexReg 6321;

amended to be effective December 8, 2016, 41 TexReg 9504; amended to be effective December 18,

2017, 42 TexReg 7121; amended to be effective December 31, 2020, 45 TexReg 8770; amended to be

effective September 1, 2021, 46 TexReg 5178; amended to be effective January 1, 2022, 46 TexReg 8242

§33.6 Financial Interest

For the purposes of Alcoholic Beverage Code, §102.06, "a person who has a financial interest in a

package store permit or wine only package store permit" shall mean one who holds an ownership interest

in the business, or assets thereof, of a package store or wine only package store permittee. This rule shall

not be construed as authorizing any unfair trade practice or discrimination in violation of the tied-house

provisions of the Alcoholic Beverage Code.

Source Note: The provisions of this §33.6 adopted to be effective December 31, 2020, 45 TexReg 8770

§33.10 Citizenship and Status

(a) An individual who applies for a license or permit shall, at the time of filing the application, be a

United States citizen or legally authorized to work in the United States. The commission will not

issue a license or permit to a person that will cause the person to be in violation of the person's

immigration status and/or result in the individual being illegally in the United States.

(b) No license or permit shall be issued to a corporation, partnership, firm, association, or other legal

entity, other than an individual, unless the entity is formed by filing a certificate of formation or

registered to transact business in this state. This requirement does not apply to:

(1) An entity holding a brewer's license, and other licenses and permits as are necessary to the

operation of the brewer's license;

(2) A holder of a carrier's permit; or

(3) A foreign corporation that was engaged in the legal alcoholic beverages business in this State

under charter or permit prior to August 24, 1935.

Source Note: The provisions of this §33.10 adopted to be effective May 20, 2008, 33 TexReg 3936;

amended to be effective December 31, 2020, 45 TexReg 8770; amended to be effective September 1,

2021, 46 TexReg 5178

SUBCHAPTER B: Fees and Payments

§33.22 Administrative Fees

(a) This rule relates to §5.31 and §5.55 of the Alcoholic Beverage Code.

(b) The commission will charge fees for online transactions in the amount authorized by the Texas

Department of Information Resources for processing online transactions utilizing the Texas.Gov

portal.

other administrative changes not necessarily related to the issuance of certificates, licenses, and

permits under Title 3 of the Code.

Source Note: The provisions of this §33.22 adopted to be effective February 17, 2021, 46 TexReg 1054

§33.23 License and Permit Fees

(a) This section relates to Alcoholic Beverage Code §5.50.

(b) Each applicant for a license, permit, or certificate issued by the commission shall submit with the

application the fee for that license, permit, or certificate that is listed in Fig. 33.23(b).

Figure: 16 TAC §33.23(b) – License/Permit Fees

License, Permit or Certificate Type Fee

Bonded Warehouse Permit (J/JD) $900

Branch Distributor’s License (BC) $1,500

Brewer’s License (B) $3,000

Brewer’s Self-Distribution License (SD) $1,200

Brewpub License (BP) $1,100

Carrier’s Permit (C) $1,100

Consumer Delivery Permit (CD) $10,000

Distiller’s and Rectifier’s Permit (D) $3,000

Food and Beverage Certificate (FB) $1,100

Forwarding Center Authority $2,000

General Class B Wholesaler’s Permit (X) $3,500

General Distributor’s License (BB) $3,500

Late Hours Certificate (LH) $1,100

Local Cartage Permit (E) $0

Local Distributor’s Permit (LP) $1,300

Manufacturer’s Agent’s Warehousing Permit (AW) $1,900

Mixed Beverage Permit (MB)

$5,300 original

$2,650 renewal

Nonresident Brewer’s License (BN) $1,500

Nonresident Seller’s Permit (S) $1,800

Out-of-State Winery Director Shipper’s Permit (DS) $500

Package Store Permit (P) $1,800

Passenger Transportation Permit $900

Private Club Exemption Permit (NE) $0

Private Club Malt Beverage and Wine Permit (NB) $1,900

Private Club Registration Permit (N) $2,600

Promotional Permit (PR) $1,200

Retail Dealer’s Off-Premise License (BF) (Malt Beverage) $1,100

Retail Dealer’s On-Premise License (BE) (Malt Beverage) $1,100

Third-Party Local Cartage Permit (ET) $600

Water Park Permit (WP) $300

Wholesaler’s Permit (W) $4,000

Wine and Malt Beverage Retailer’s Off-Premise Permit (BQ) $1,900

Wine and Malt Beverage Retailer’s Permit (BG) $1,900

Wine-Only Package Store Permit (Q) $1,600

Winery Permit (G) $3,000

with a two-day minimum, pursuant to §33.78 of this title. The authorization must be in effect for all

days that alcoholic beverages will be present at the temporary event location, from delivery to

removal.

(d) An organization that holds a private club exemption certificate permit under Alcoholic Beverage

Code §32.11 is exempt from the requirement to pay a fee.

(e) The commission shall review all fees at least once every four years and shall adjust fees as necessary.

Source Note: The provisions of this §33.23 adopted to be effective September 15, 1993, 18 TexReg 5883;

amended to be effective March 29, 1994, 19 TexReg 1826; amended to be effective September 1, 1994,

19 TexReg 5627; amended to be effective September 1, 1995, 20 TexReg 6322; amended to be effective

October 1, 1996, 21 TexReg 8656; amended to be effective October 1, 1997, 22 TexReg 8039; amended

to be effective September 1, 2002, 27 TexReg 6293; amended to be effective September 12, 2005, 30

TexReg 5800; amended to be effective September 11, 2008, 33 TexReg 7514; amended to be effective

February 12, 2009, 34 TexReg 807; amended to be effective September 1, 2011, 36 TexReg

5205;amended to be effective October 24, 2013, 38 TexReg 7302; amended to be effective April 16, 2018,

43 TexReg 2266; amended to be effective December 26, 2018, 43 TexReg 8430; amended to be effective

September 1, 2021, 46 TexReg 5178

§33.24 Late Fees

(a) Applications for renewal of a license or permit after its expiration date are subject to additional late

filing fees pursuant to §33.2 of this title.

(b) Applications for temporary event authorizations are subject to additional late filing fees pursuant to

§33.74 of this title.

Source Note: The provisions of this §33.24 adopted to be effective September 1, 2021, 46 TexReg 5178

§33.25 Refunds of License and Permit Fees

(a) For an application for an original license or permit under Alcoholic Beverage Code §11.08, the

commission will refund the license or permit fee if the license or permit is not issued for any reason.

(b) For an application for renewal of an existing license or permit, the commission will refund the

license or permit fee if, prior to expiration, the applicant withdraws the application or the application

is denied. If the application is withdrawn or denied after the license or permit expiration date, the

applicant's fee will not be refunded.

chapter.

(d) All refunds of license and permit fees will be remitted to the person or entity named in the license or

permit application or renewal application, regardless of who paid the fee.

Source Note: The provisions of this §33.25 adopted to be effective September 1, 2021, 46 TexReg 5178

§33.26 Secondary Licenses, Permits, and Certificates

(a) This section relates to Alcoholic Beverage Code §11.09 and §61.03.

(b) Secondary licenses, permits, and certificates that require the holder to first obtain another license or

permit expire upon expiration or cancellation of the primary license or permit.

date as the primary license or permit, whichever occurs earlier.

(d) Fees for a secondary license, permit, or certificate will not be prorated or refunded.

Source Note: The provisions of this §33.26 adopted to be effective September 1, 2021, 46 TexReg 5178

§33.29 Registration of Nonresident Brewer's Agent

(a) Nonresident brewer's agents shall register with the Commission in the manner prescribed by the

Commission, as authorized by Chapter 58 of the Alcoholic Beverage Code.

(b) The annual fee to register a nonresident brewer's agent is $2,500.

Source Note: The provisions of this §33.29 adopted to be effective December 16, 2019, 44 TexReg 7682;

amended to be effective September 1, 2021, 46 TexReg 5178

SUBCHAPTER C: Bonds

§33.40 General Provisions

(a) This rule applies to conduct surety bonds, performance bonds, excise tax bonds, and bonds for

alternating brewery proprietorships and contract brewing arrangements ("bonds").

(b) Submission of Bond with Application.

(1) When required by the Alcoholic Beverage Code to submit a bond, an applicant for an original or

renewal license or permit shall submit with its license or permit application the required bond or

alternative form of surety, as authorized under this section.

(2) Failure to submit the necessary bond or alternative form of surety in proper form will result in

denial of the application.

the TABC with the licensee or permittee as principal, a qualified surety company doing business in

this state as surety, and the state as payee.

(d) All bonds shall be payable in Travis County.

(e) A license or permit holder shall obtain, submit, and maintain a separate bond for each license or

permit it holds.

(f) A licensee or permittee required to furnish a bond under this section may furnish, in lieu of all or part

of the amount of the bond required, one or more certificates of deposit or savings accounts assigned

to the state or one or more letters of credit. If an assignment of a certificate of deposit, savings

account, or letter of credit is furnished in lieu of a bond, the executive director or their designee shall

keep it in the agency's possession. Interest earned on a certificate of deposit or savings account is not

subject to the assignment and remains the property of the owner of the certificate of deposit or

savings account.

(g) A certificate of deposit or savings account furnished in lieu of a bond by a licensee or permittee must

be assigned to the state, in a manner approved by the executive director or their designee, to secure

payment to the state.

(h) A letter of credit furnished in lieu of a bond by a licensee or permittee must be on a form approved

by the executive director or their designee and contain any conditions required by the executive

director to secure payment to the state.

(i) Qualifications of Surety Company.

(1) A surety company, to qualify to provide bonds under this subchapter, must be licensed by this

state and in "good standing" with the State Board of Insurance, Comptroller of Public Accounts,

Secretary of State, and any other regulatory agencies with jurisdiction over its affairs.

(2) In addition to the requirements of Alcoholic Beverage Code §§11.11 and 61.13, a bank or credit

union must have a physical facility in this state to accept cash deposits, make cash advances to

customers and carry out day-to-day operations within this state.

(j) Each bond required by this subchapter must cover the permit or license period and must be

maintained until it is released or forfeited or, if it is a bond required by §33.45(b), until it is

terminated by the surety pursuant to Alcoholic Beverage Code §11.71.

(k) Release of Surety.

(1) Upon expiration of the license or permit, its voluntary cancellation, or upon the applicant's

subsequent approval for exemption from the surety requirement, the licensee or permittee may

request the release and return of the security supporting their license or permit.

(2) The release of the surety will not be unreasonably withheld; however, the surety company, bank,

or credit union is not released from its obligation until it receives written notice of the release

from the commission.

(3) The executive director may not release a surety bond until the surety company has paid and

discharged in full all of its liabilities on the bond to the state as of the date of cancellation.

(l) General Provisions regarding Bond Forfeiture.

(1) When a permit or license is revoked, the commission shall notify the permittee or licensee in

writing of its intent to seek forfeiture of the bond.

(2) Upon entry of a final order against the permittee or licensee or upon waiver of hearing by the

permittee or licensee, the commission shall notify the surety company to remit to the state the

full amount of the surety required within ten days after notification.

(m) For purposes of this subchapter, an order issued pursuant to an agreement of the parties in which the

permittee or licensee waives its right to a hearing is a final adjudication of the violation that is the

subject of the agreement and order.

(n) Violations of the Code or commission rules by the legal entity in the name of which a bond or other

surety is held or by any of its officers, directors, or partners are counted toward and may result in

cancelation, forfeiture, or exemption from the requirement to post a bond or other surety.

(o) In a joint venture, regardless of the type of legal entity formed, prior violations by any participant in

the joint venture will disqualify the joint venture from exemption from the requirement to post a

bond or other surety.

(p) Neither the bondholder nor any officer, director, or partner of a bondholding entity may be granted a

new license or permit until a forfeited bond or other surety is paid.

(q) The commission may seek forfeiture of a bond due to cancellation of the license or permit for any

reason, including cancellation for multiple violations of Alcoholic Beverage Code §§102.31 and

102.32.

Source Note: The provisions of this §33.40 adopted to be effective December 31, 2020, 45 TexReg 8771

§33.41 Conduct Surety Bonds

(a) This section applies only to conduct surety bonds required by Alcoholic Beverage Code §§11.11 and

61.13.

(b) A conduct surety bond, assignment of certificate of deposit, savings account, or letter of credit must

cover the minimum time required for the applicant to qualify for exemption from the surety

requirement imposed by Alcoholic Beverage Code §§11.11 and 61.13.

part of the required bond amount:

(1) one or more certificates of deposit assigned to the state issued by a federally insured bank or by

a credit union authorized to do business in this state; or

(2) one or more letters of credit issued by a federally insured bank or credit union authorized to do

business in this state.

(d) Pursuant to Alcoholic Beverage Code §11.11(e), a license or permit holder is exempt from the

requirement to post a conduct surety bond if, at the time the commission receives the second renewal

application for the license or permit, the holder of the license or permit:

(1) has not had any license or permit revoked within the preceding five years;

(2) is not the subject of a pending revocation or cancelation proceeding; and

(3) has continuously operated on the licensed or permitted premises for at least three years before

the date the holder applied for renewal of the license or permit.

(e) Forfeiture of a Conduct Surety Bond.

(1) When a license or permit is cancelled, or upon a final adjudication that the licensee or permittee

has committed three violations of the Alcoholic Beverage Code prior to the exemption date, the

commission shall notify the licensee or permittee, in writing, of its intent to seek forfeiture of

the bond or alternative form of surety.

(2) The licensee or permittee may, within 30 days of the notice specified in paragraph (1) of this

subsection, request a hearing on the question of whether the criteria established by Alcoholic

Beverage Code §§11.11 and 61.13 and by this section for forfeiture of the bond or alternative

form of surety have been satisfied. The hearing shall be conducted in accordance with Chapter

2001 of the Government Code.

(3) Evidence that an agent or servant of the licensee or permittee has been adjudicated guilty of, or

granted deferred adjudication for, an offense under the Alcoholic Beverage Code, because of

conduct occurring during the performance of their duties for the licensee or permittee, shall

constitute evidence of an adjudication that the licensee or permittee has violated a provision of

the Alcoholic Beverage Code. This paragraph only applies to violations which were not

attributable to the licensee or permittee because of the operations of Alcoholic Beverage Code

§106.14.

(4) Upon entry of final order against the licensee or permittee in the hearing described in paragraph

(2) of this subsection, or upon waiver of said hearing by the licensee or permittee, the

commission shall notify the surety company, bank, or credit union to remit to the state the

amount of surety required within ten days after notification.

(5) The commission may institute action to recover the amount of the surety in its own name, for

the benefit of the state, as set forth in Alcoholic Beverage Code §11.70.

(6) Counting Violations for Conduct Surety Bond Forfeiture Purposes.

(A) Except as provided by subsection (B) of this section, the commission may seek forfeiture

of a conduct surety bond upon the third violation during the effective period of the bond,

including warnings, of any statute or rule under the commission's jurisdiction.

(B) For violations of Alcoholic Beverage Code §§102.31 and 102.32, the first six incidents

may not be counted as violations supporting bond forfeiture. The seventh and subsequent

violations will be counted as violations supporting bond forfeiture.

Alcoholic Beverage Code §106.14 (related to Actions of Employee) will be considered for

forfeiture purposes according to §§11.11(b)(2) and 61.13(b)(2) of the Code.

(7) The commission will not seek forfeiture of a surety bond due solely to violations of Alcoholic

Beverage Code §§102.31 and 102.32, but may seek forfeiture based upon violations of

§§102.31 and/or 102.32 in combination with at least one other violation of the Code or

commission rules.

Source Note: The provisions of this §33.41 adopted to be effective December 31, 2020, 45 TexReg 8771

§33.42 Performance Bonds

(a) This section applies to performance bonds, which are the bonds required by Alcoholic Beverage

Code §11.61(b-1) and §61.71(l).

(b) The first performance bond filed by a licensee or permittee with the commission as prescribed under

§11.61(b-1) and §61.71(l) of the Alcoholic Beverage Code shall be in the amount of $2,000. In the

event the first bond is forfeited to the commission, a licensee or permittee must file a second bond

with the commission as prescribed under those provisions in the amount of $4,000 before a license or

permit may be reinstated. In the event the second bond is forfeited to the commission, a licensee or

permittee must file a third bond issued under those provisions in the amount of $6,000 before a

license or permit may be reinstated. If a permit or license that is secured by a performance bond is

cancelled, the performance bond in place at the time of cancellation is forfeited to the commission.

of the required bond amount:

(1) one or more certificates of deposit assigned to the state issued by a federally insured bank or by

a credit union authorized to do business in this state; or

(2) one or more letters of credit issued by a federally insured bank or credit union authorized to do

business in this state.

(d) Forfeiture of Performance Bonds.

(1) Except as provided by paragraph (2) of this subsection, the commission may seek forfeiture of a

performance bond upon violation of any statute or rule under the commission's jurisdiction.

(2) For violations of Alcoholic Beverage Code §§102.31 and 102.32, the first six incidents may not

be counted as violations supporting bond forfeiture. The seventh and subsequent violations will

be counted as violations supporting bond forfeiture.

Source Note: The provisions of this §33.42 adopted to be effective December 31, 2020, 45 TexReg 8771

§33.43 When Excise Tax Bonds Are Necessary

(a) This section is promulgated pursuant to Alcoholic Beverage Code §5.31, relating to General Powers

and Duties, §204.01(g), relating to Bond Required, and §204.07, relating to Waiver of Bond

Requirement.

(b) This section applies only to bonds required by §63.03 and Chapter 204 of the Alcoholic Beverage

Code.

applicant who is subject to Chapter 204 of the Alcoholic Beverage Code furnish with its application

the bond that is otherwise required by that chapter.

(d) The commission determines that it is necessary and appropriate to require that a bond under Chapter

204 of the Alcoholic Beverage Code be furnished upon renewal of its license or permit by a licensee

or permittee who:

(1) is subject to Chapter 204 of the Alcoholic Beverage Code; and

(2) has not made, on or before the due date, a required payment of $500 or more for a tax or fee

imposed by the Alcoholic Beverage Code.

(e) It is the commission's judgment, under Alcoholic Beverage Code §63.03, that the appropriate amount

of bond that is required from the holder of a nonresident brewer's license to protect the revenue of

the state from the tax due on malt beverages over any six-week period is zero. Therefore, no bond is

required of the holder of a nonresident brewer's license, because the revenue of the state is protected

for these reasons:

(1) a holder of a nonresident brewer's license is not liable for payment of the malt beverage tax

pursuant to Alcoholic Beverage Code §203.02; and

(2) even when the nonresident brewer transports malt beverages into the state in a motor vehicle

owned or leased by him, the malt beverage must be delivered to the holder of a distributor's

license, who:

(A) is liable for payment of the malt beverage tax pursuant to Alcoholic Beverage Code

§203.02; and

(B) is subject to the requirement of a bond to protect the revenue of the state when necessary

and appropriate as determined in §33.44 of this title.

Source Note: The provisions of this §33.43 adopted to be effective December 31, 2020, 45 TexReg 8771;

amended to be effective September 1, 2021, 46 TexReg 5178

§33.44 Excise Tax Bonds

(a) Excise Tax Bond Required.

(1) Each holder of a general distributor's license, local distributor's permit, or branch distributor's

license, and each holder of a brewer's license acting under the authority of Texas Alcoholic

Beverage Code §62.122, who has not made, on or before the due date, a required payment of

$500 or more for a tax or fee imposed by the Alcoholic Beverage Code shall furnish a bond to

ensure the payment of the tax on malt beverage imposed by the Texas Alcoholic Beverage

Code, §203.01.

(2) Each holder of a winery permit who has not made, on or before the due date, a required

payment of $500 or more for a tax or fee imposed by the Alcoholic Beverage Code shall furnish

a bond to ensure the payment of the tax on vinous liquor imposed by Texas Alcoholic Beverage

Code §201.04.

(b) Each bond required under this section shall be set by the executive director at an amount determined

pursuant to §41.42 of this title that will protect the state against the anticipated tax liability of the

principal for any six-week period based on previous average alcoholic beverage sales or estimates of

the future average volume of sales.

license or permit after the failure to make a timely payment of the amount specified in subsection (a)

of this section.

(d) A finding of deficiency as a result of an audit does not constitute a failure to pay a tax when due, if

the deficiency and any applicable penalty are paid within 10 days of the date of demand for payment

by the commission.

(e) A licensee or permittee required to furnish a bond under subsection (a) of this section is again

entitled to exemption from the surety requirement if the licensee or permittee:

(1) pays all delinquent taxes and fees and any applicable penalties; and

(2) pays all taxes and fees required by the Texas Alcoholic Beverage Code on or before the due date

for 18 consecutive months after the month in which the delinquent taxes and fees and penalties

are paid.

(f) If a licensee or permittee fails to pay a tax or fee imposed by the Texas Alcoholic Beverage Code on

or before the due date and the licensee or permittee holds multiple licenses or permits, the

requirements for a bond shall be imposed under subsection (a) of this section only on the license or

permit covering the licensed or permitted premises for which the tax or fee and any applicable

penalty were not timely paid.

(g) If another license or permit is required, incidental to the operation of a business for which a basic

license or permit is procured, the executive director may accept one bond to support all of the

licenses and permits. The executive director shall determine the amount of the bond.

(h) All bonds or other forms of security under this section that are in place on the effective date of this

section, as amended, shall remain in place for the length of time specified on the bond or other form

of security when it was furnished to the commission.

Source Note: The provisions of this §33.44 adopted to be effective December 31, 2020, 45 TexReg 8771;

amended to be effective September 1, 2021, 46 TexReg 5178

§33.45 Bonds for Alternating Brewery Proprietorships and Contract Brewing Arrangements

(a) This section relates to Alcoholic Beverage Code §§11.71, 12.01(a)(6), 13.04(c), 61.41(d) and

62.01(a)(5).

(b) A bond in the amount of $30,000 must be posted with the commission by each applicant for or

holder of a brewer's license or nonresident brewer's license that:

(1) is a party to an alternating brewery proprietorship or a contract brewing arrangement; and

(2) does not own a fee interest in a brewing facility, whether domestic or foreign.

section at the time of application must post the required bond at the time it becomes subject to those

requirements.

(d) The licensee or permittee may, within 30 days of the notice specified in §33.40(l)(1) of this title

request a hearing on the question of whether the criteria established by this section for forfeiture of a

bond have been satisfied. The hearing shall be conducted in accordance with Chapter 2001 of the

Government Code.

(e) Release of Surety. A license or permit holder may request release and return of the surety required by

subsection (b) or (c) of this section upon:

(1) expiration of the license or permit;

(2) voluntary cancellation of the license or permit;

(3) verification that the applicant or license or permit holder has acquired fee interest in a brewing

or manufacturing facility (as appropriate in reference to subsections (b) and (c) of this section);

(4) verification that the license or permit holder no longer is a party to an alternating brewery

proprietorship or contract brewing arrangement.

(f) The commission may seek forfeiture of a bond under this section for a violation of any one or more

of the terms of the bond.

Source Note: The provisions of this §33.45 adopted to be effective December 31, 2020, 45 TexReg 8771;

amended to be effective September 1, 2021, 46 TexReg 5178

SUBCHAPTER D: Application Review and Protests

§33.50 Purpose and Authority

This subchapter implements and is authorized by Alcoholic Beverage Code §§11.43 through 11.432.

Source Note: The provisions of this §33.50 adopted to be effective December 31, 2020, 45 TexReg 7241

§33.51 Definitions

The following terms have the following meanings when used in this subchapter:

(1) "Commission" - the Texas Alcoholic Beverage Commission as an agency of the State of Texas,

and not to the Commissioners, either individually or as a body.

(2) "Complaint" - a written expression of concern regarding a person or business that holds or has

applied for a TABC license or permit, or a person or business that the complainant believes is

violating the Alcoholic Beverage Code or laws related to alcoholic beverages. Complaints are

handled according to §31.11 (relating to Resolution and Information on Complaints). A

complaint is not a request for a contested case hearing, does not itself initiate a legal proceeding,

and does not afford any legal rights or party status to the complainant. Any person can file a

complaint at any time.

(3) "Protest" - a written request for an administrative contested case hearing in which the protestant

will participate as a party and present evidence to a trier of fact to prove that a license or permit

should not be issued or renewed as proposed. A protest will only be granted if filed by a person

with legal standing and supported by reasonable grounds.

(4) "Reasonable grounds" - allegations or concerns regarding a matter within the commission's

jurisdiction that are supported by credible evidence or information, and includes the

circumstances described in Alcoholic Beverage Code §§11.46 through 11.481, 61.42 through

61.46, and 61.50.

(5) "Received" - An application for a new license or permit or a renewal is considered received on

the date the commission updates its public database to show the application as pending. An

application is designated as pending only when the application is complete, meaning that the

commission has received all required information and fees.

(6) "SOAH" - the State Office of Administrative Hearings.

(7) "Uncontested" - An application is uncontested if no valid protests have been timely filed or if all

valid protests have been withdrawn.

Source Note: The provisions of this §33.51 adopted to be effective December 31, 2020, 45 TexReg 7241

§33.53 Applicable Rules

Unless otherwise indicated, an application for a license or permit is subject to the rules in effect as of the

date the application is received.

Source Note: The provisions of this §33.53 adopted to be effective December 31, 2020, 45 TexReg 7241

§33.54 Delegation of Application Approvals

The commission delegates to the executive director or their designee the authority to approve an

uncontested license or permit application pursuant to Alcoholic Beverage Code §11.43(d).

Source Note: The provisions of this §33.54 adopted to be effective December 31, 2020, 45 TexReg 7241

§33.55 Conditional Approval

(a) Unless the exception in subsection (b) of this section applies, the commission shall not issue a new

license or permit until 15 days have elapsed since the commission updated its public database to

show the application as pending.

(b) If the executive director determines that there is a compelling reason to issue a license or permit

before 15 days have elapsed since the commission updated its public database to show the

application as pending, the executive director may grant conditional approval of the license or

permit. If no valid protests are filed at the end of the 15-day period, the license or permit becomes

approved by operation of law. If one or more valid protests are filed before the time period for filing

protests has expired, the conditional approval is revoked and the executive director shall provide

notice of the revocation to the applicant.

has cleared. If a financial instrument is returned for insufficient funds, or there is any other failure of

fee payment, and the applicant fails to remit required fees within ten (10) business days of the

agency's request for payment, the application may be considered withdrawn by the applicant

pursuant to section 33.57 of this title. If the application is considered withdrawn, conditional

approval is revoked, and the executive director shall provide notice of the revocation to the applicant.

Revocation of conditional approval for a renewal application results in expiration of the license or

permit and the applicant must re-apply and pay the fees for an original license or permit application.

(d) An applicant who chooses to proceed with operations while subject to a conditional approval does so

at its own risk of loss in the event that the conditional approval is revoked and it fails to obtain or

maintain the necessary license or permit. If an applicant fails to obtain the license or permit

following conditional approval, the commission shall refund fees paid pursuant to section 33.25 of

this title.

Source Note: The provisions of this §33.55 adopted to be effective December 31, 2020, 45 TexReg 7241;

amended to be effective February 13, 2023, 48 TexReg 660

§33.56 Alternative Dispute Resolution

(a) At any time prior to or during a contested case hearing, any party in a disciplinary matter may

request referral to alternative dispute resolution (ADR).

(b) Parties may agree to mediate a dispute through a mediator employed by the State Office of

Administrative Hearings or through a private mediator. Mediation through SOAH is subject to

SOAH's rules for mediation (Title 1 Texas Administrative Code); the Administrative Procedure Act

(Tex. Gov't Code Ch. 2001); laws relating to SOAH administrative procedure in Tex. Gov't Code Ch.

2003; and Tex. Gov't Code Ch. 2009, relating to ADR for use by governmental bodies.

(1) the participants must unanimously agree to use a private mediator;

(2) the participants must unanimously agree to the selection of the person to serve as the mediator;

and

(3) the mediator must agree to be subject to all time limits imposed by the executive director, the

administrative law judge, statute, or regulation.

(d) If a private mediator is used, the costs for the services of the mediator shall be apportioned equally

among the participants, unless otherwise agreed upon in writing by the participants, and shall be paid

directly to the mediator. In no event, however, shall any such costs be apportioned to a governmental

subdivision or entity.

(e) All mediators in commission mediation proceedings shall subscribe to the ethical guidelines for

mediators adopted by the ADR Section of the State Bar of Texas.

Source Note: The provisions of this §33.56 adopted to be effective December 31, 2020, 45 TexReg 7241

§33.57 Application Withdrawn

(a) An applicant may withdraw its application at any time prior to issuance or renewal of the license or

permit that is the subject of the application or the denial of the application.

(b) If an applicant fails to respond to requests from the TABC for additional information or for

remittance of a license or permit fee within ten (10) business days of the request, the TABC may

consider the application withdrawn by the applicant.

Withdrawal of an application, whether affirmatively by the applicant or due to the applicant's failure

to respond to requests for information or fees, does not trigger the right to appeal or any other due

process rights.

Source Note: The provisions of this §33.57 adopted to be effective December 31, 2020, 45 TexReg 7241

§33.58 Management Review

(a) At any time, the executive director or person to whom he or she delegates authority may place a

management review on a license or permit, address, or person so that upon receipt of an application,

an issue of concern within the agency's jurisdiction is addressed.

(b) An application remains pending until the management review is resolved and removed.

management review related to its renewal application is pending.

(d) A license or permit holder may not surrender its existing license or permit while it is subject to a

management review but may withdraw its renewal application.

Source Note: The provisions of this §33.58 adopted to be effective December 31, 2020, 45 TexReg 7241

§33.59 Denial of Application after Referral of Protest for Hearing

(a) In the event that a valid protest results in referral for hearing under Alcoholic Beverage Code

§11.43(f) and that the executive director subsequently identifies at least one legal ground to deny the

application, the executive director shall request that the application be remanded to the commission

from the State Office of Administrative Hearings and upon remand, shall recommend to the

commission that the application be denied, as required by Alcoholic Beverage Code §11.43(g).

(b) Concurrent with the request for remand from SOAH, the executive director shall provide notice to

each protestant that:

(1) the executive director will be recommending denial of the application to the commission;

(2) the case will be remanded to TABC for processing under §11.43(g), et seq;

(3) if the applicant does not request a hearing on the denial recommendation, the application will be

sent to the commission for a vote on denial; and

(4) if the applicant requests a hearing on the denial recommendation or the commission declines to

deny the permit, the application shall be referred to SOAH for a hearing in which the

protestant(s) are parties.

protest has been referred for hearing and not withdrawn, the commission may only deny the

application or refer it back to SOAH for a hearing on the previously referred protest(s).

Source Note: The provisions of this §33.59 adopted to be effective December 31, 2020, 45 TexReg 7241

§33.60 Request for Hearing on Recommendation of Application Denial

(a) If the executive director recommends denial of an application for a license or permit, notice of the

recommendation shall be transmitted to the applicant by the commission.

(b) An applicant may request an administrative hearing on the executive director's denial

recommendation by filing a written request for hearing with the commission within thirty (30) days

of the date on the notice of the denial recommendation.

Commission, ATTN: Clerk, P.O. Box 13127, Austin, Texas, 78711 or by electronic mail to

[email protected]xas.gov.

(d) If the applicant files a timely request for hearing, the executive director will refer the application to

SOAH for a hearing pursuant to Alcoholic Beverage Code §11.43(h).

(e) If the applicant does not file a timely request for hearing, the recommendation for denial of the

application will be set for consideration by the commission at the next available regular commission

meeting.

Source Note: The provisions of this §33.60 adopted to be effective December 31, 2020, 45 TexReg 7241

§33.61 Commission Action on Contested Applications

(a) This section applies to the application review process in Alcoholic Beverage Code §§11.43(h) and

61.31(b).

(b) Except as provided by subsection (c) of this section, the executive director shall place all proposals

for decision issued by an administrative law judge under Alcoholic Beverage Code §11.43(h) on a

consent agenda for commission vote. If the commission votes to approve a contested application by

consent, the executive director shall issue the license or permit.

Alcoholic Beverage Code §11.43(h) for individual consideration on the commission's regular agenda

at the request of:

(1) the presiding officer of the commission; or

(2) at least two commission members.

Source Note: The provisions of this §33.61 adopted to be effective December 31, 2020, 45 TexReg 7241

§33.62 Filing a Protest of a License or Permit Application

(a) A protest of a license or permit application must be:

(1) filed by a person or persons with legal standing to contest the issuance or renewal of the license

or permit under Alcoholic Beverage Code §§11.431, 11.432, 61.313, or 61.314;

(2) timely filed according to subsection (b) of this section;

(3) in writing;

(4) submitted in at least one of the following manners:

(A) through the TABC's online protest tool, if available;

(B) by mailing either a completed TABC protest form, available on the TABC website, or a

letter that meets the requirements of subsection (c), below, to the Texas Alcoholic Beverage

Commission, ATTN: Licensing Protest Coordinator, P.O. Box 13127, Austin, Texas, 78711;

letter that meets the requirements of subsection (c) of this section to the protest email

address for the TABC Region in which the applicant premises is located, as follows:

(i) Protests_Reg[email protected]ov

(ii) Protests_Reg2@tabc.texas.gov

(iii) Protests_Reg[email protected]ov

(iv) Protest[email protected]xas.gov; or

(v) Protests_Reg5@tabc.texas.gov; and

(5) complete, including all information required by this rule.

(b) A protest must be filed within the following time limits:

(1) For an application for an original license or permit or a change of location under Alcoholic

Beverage Code §11.08, a protest is timely if it is filed between 60 days prior to and 15 days

after the date the commission deems the application complete. When an application is deemed

complete, the commission will update its public database to show the application as pending.

(2) For an application for renewal of a license or permit, a protest is timely filed if it is filed within

60 days prior to the expiration date of the license or permit, up to the expiration date.

(1) the first and last name and physical address of the property of the person or persons filing the

protest;

(2) the approximate distance of the person's home from the premises or proposed premises;

(3) contact information for the person filing; and

(4) all reasonable grounds that are the basis for the protest.

(d) A protest filed by a government official must include the following elements:

(1) the name of the official, the office held, and contact information;

(2) a description of the geographic limits of the official's jurisdiction; and

(3) the basis or bases for the protest.

(e) A protest that fails to meet any of the requirements of this rule may be rejected. A person whose

protest is rejected may refile the protest with corrections to meet the rule requirements within the

time period prescribed by subsection (b) of this section and/or refile the concerns as a complaint at

any time, according to §31.10, Filing a Complaint. The determination of the validity of a protest is

not a contested case subject to the Texas Administrative Procedure Act (Tex. Gov't Code Ch. 2001).

Source Note: The provisions of this §33.62 adopted to be effective December 31, 2020, 45 TexReg 7241

§33.63 Withdrawal of Protest

(a) A protestant may withdraw their protest at any time prior to the commission's final decision.

Withdrawal of a protest may not be subject to any conditions.

(b) A withdrawal of a protest must be submitted in writing to the Texas Alcoholic Beverage

Commission, ATTN: Licensing Protest Coordinator, P.O. Box 13127, Austin, Texas, 78711, or to the

protest email address for the TABC Region in which the applicant premises is located, as follows:

(1) Protests_Reg1@tabc.texas.gov

(2) Protests_Reg2@tabc.texas.gov

(3) Protests_Reg3@tabc.texas.gov

(4) Protests_Reg4@tabc.texas.gov; or

(5) Protests_Reg5@tabc.texas.gov.

(d) If all protests have been withdrawn, the executive director may grant the application and issue the

license or permit, subject to other applicable statutes or rules.

Source Note: The provisions of this §33.63 adopted to be effective December 31, 2020, 45 TexReg 7241

SUBCHAPTER E: Events at a Temporary Location

§33.70 Scope and Applicability

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

(b) Except where otherwise specified, rules in this subchapter apply to all temporary events, including

those requiring Temporary Event Approvals, Nonprofit Entity Temporary Event Permits, and File

and Use Notifications ("event authorizations").

Source Note: The provisions of this §33.70 adopted to be effective September 1, 2021, 45 TexReg 8771;

amended to be effective February 12, 2024, 49 TexReg 658

§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.

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.

Source Note: The provisions of this §33.71 adopted to be effective September 1, 2021, 45 TexReg 8771;

amended to be effective February 12, 2024, 49 TexReg 658

§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.

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) 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) Upon written request, the executive director or the executive director's designated representative may

make an exception to the limitations of subsections (a), (c), and (d) of this section on a case-by case

basis. An exception request will be granted or denied in writing.

(f) 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) 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) 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.

Source Note: The provisions of this §33.72 adopted to be effective September 1, 2021, 45 TexReg 8771;

amended to be effective December 6, 2021, 46 TexReg 8242; amended to be effective February 12, 2024,

49 TexReg 658

§33.73 General Provisions

(a) All wine sold or possessed with the intention to sell at an event held in an area where the sale of that

type of alcohol has not been authorized by a local option election must comply with the terms of

§16.011 of the Alcoholic Beverage Code.

(b) A copy of the File and Use Notification form that was filed with the commission, Nonprofit Entity

Temporary Event Permit, or Temporary Event Approval and diagram must be displayed in a

conspicuous place at the location of the event at all times during the event.

(1) the information required to be submitted is incomplete or inaccurate;

(2) the person requesting the authorization does not qualify for the authorization;

(3) the event does not qualify for the authorization; or

(4) there is reason to believe that granting the authorization will:

(A) result in a violation of the Alcoholic Beverage Code or the rules of the commission; or

(B) be otherwise detrimental to the public.

(d) The grounds for denying a Nonprofit Entity Temporary Event Permit or Temporary Event Approval

shall be communicated in writing to the applicant as soon as is reasonably practical.

(e) If an authorization under this subchapter is granted in error, the commission may rescind the

authorization at any time.

(f) No person authorized under this subchapter shall use that authority to provide alcoholic beverages at

any licensed premises during any time that a permit or license for that location is suspended.

(g) A Temporary Event Approval or Nonprofit Entity Temporary Event Permit may be used to provide

alcoholic beverages for on-premises consumption at a location that has been designated as the

licensed premises in a pending application only if:

(1) the commission has received an application for the proposed location and payment of all state

fees and securities, if applicable, have been submitted;

(2) there is no pending protest of the application;

(3) the commission has performed an initial review for qualification; and

(4) there is no notice sign (60-day sign) pursuant to Alcoholic Beverage Code §§11.391 or 61.381

posted at the event location.

(h) The completion of a responsibilities course provided by the commission may be required before a

Temporary Event Approval request is granted.

(i) The signage requirements for a Temporary Event Approval are the same as those for a primary

license or permit and may include signs required by §§5.53, 11.042, and 61.111 of the Alcoholic

Beverage Code and §31.4 of this title.

(j) All alcoholic beverages being transported shall be accompanied by invoices.

(k) The holder of a primary license or permit may return remaining alcoholic beverage products to the

primary licensed location. The holder of an event authorized under this subchapter may distribute

remaining product as authorized under Alcoholic Beverage Code §109.54.

(l) An applicant is not entitled to a refund or proration of fees paid for authorization under this

subchapter, including any late filing fees.

Source Note: The provisions of this §33.73 adopted to be effective September 1, 2021, 45 TexReg 8771;

amended to be effective October 17, 2022, 47 TexReg 6872

§33.74 Late Filing Fees

(a) A request for Temporary Event Approval or application for a Nonprofit Entity Temporary Event

Permit filed under this subchapter must be filed at least ten business days prior to the event date to

avoid a late filing fee. If the request or application is filed less than ten business days prior to the

event date, it must be accompanied by the appropriate late filing fee set forth below, in addition to

any other applicable fees.

(b) A late filing fee is required for a request for Temporary Event Approval or application for a

Nonprofit Entity Temporary Event Permit as follows:

(1) a late filing fee of $300 is required for applications submitted seven to nine business days before

the event for which the approval or permit is requested.

(2) a late filing fee of $500 is required for applications submitted four to six business days before

the event for which the approval or permit is requested.

(3) a late filing fee of $900 is required for applications submitted one to three business day(s)

before the event for which the approval or permit is requested.

Source Note: The provisions of this §33.74 adopted to be effective September 1, 2021, 45 TexReg 8771

§33.75 Penalties and Suspension

(a) Persons or entities issued a temporary permit or authorization under this chapter must comply with

all requirements of the Alcoholic Beverage Code and commission rules applicable to holders of

primary retail-tier permits and licenses including, but not limited to, statutes related to the sale,

service, possession, distribution, transportation, and advertising of alcoholic beverages in Chapters

104-108 of the Code.

(b) The executive director may cancel an authorization under this subchapter for violation of the

Alcoholic Beverage Code or commission rules occurring during the temporary event covered by the

authorization, regardless of the expiration of the temporary authorization.

authorization for violations of offenses against the general welfare under §35.31 of this title that

occur in connection with the use of a temporary authorization.

(d) The executive director may assess an administrative penalty for violations of the of the Alcoholic

Beverage Code or commission rules for events authorized under this subchapter in the same manner

as for two-year permits and licenses under chapter 34 of this title.

Source Note: The provisions of this §33.75 adopted to be effective September 1, 2021, 45 TexReg 8771

§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;

(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;

(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 event that does not meet the criteria in subsection

(a)(2) of this section requires approval by the commission.

than ten days before the event without incurring a late filing fee.

(d) In connection with a notification filed under subsection (a) of this section, the commission may

require a letter from the owner of the property where the event will be held, sponsorship and/or

promoter agreements, a diagram or site maps, local governmental authorization, and any other

documents or agreements needed to determine qualifications under the Code.

(e) Persons using a File and Use Notification must keep the following records for four years and provide

them to the commission upon request:

(1) records of the dollar amount of alcohol purchased and sold/served at the event;

(2) the number of event attendees; and

(3) an agreement or contract between the permit holder and the venue authorizing the event;

including the event date, type of event, and a copy of any invitation to the event or obituary for

a funeral related event.

Source Note: The provisions of this §33.76 adopted to be effective September 1, 2021, 45 TexReg 8771;

amended to be effective February 12, 2024, 49 TexReg 658

§33.77 Request for Temporary Event Approval

(a) A request for a Temporary Event Approval shall be made on forms provided by the commission and

shall be signed and sworn to by the requester.

(b) The requester shall e-mail the completed Temporary Event Approval request form to the Events

email address for the TABC Region in which the event will be held or, if the requestor holds another

TABC permit or license, shall submit the request form through the TABC online portal.

the request is filed.

(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) If the event is approved, the commission shall issue a Temporary Event Approval showing on its face

the effective dates approved for the event.

(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).

Source Note: The provisions of this §33.77 adopted to be effective September 1, 2021, 45 TexReg 8771;

amended to be effective February 12, 2024, 49 TexReg 658

§33.78 Nonprofit Entity Temporary Events

(a) A Nonprofit Entity Temporary Event Permit shall only be issued to a nonprofit entity as defined by

Alcoholic Beverage Code §30.01.

(b) An application for a Nonprofit Entity Temporary Event Permit shall be made on forms provided by

the commission and shall be signed and sworn to by the applicant.

forms to the Events email address for the TABC Region in which the event will be held.

(d) The applicant shall remit payment of fees at the time the application is filed. The fee for a Nonprofit

Entity Temporary Event Permit is $50 per day.

(e) In addition to the application forms, 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, and

any other documents needed to determine qualification under the Alcoholic Beverage Code.

(f) If the event is approved, the commission shall issue to the applicant a Nonprofit Entity Temporary

Event Permit showing on its face the effective dates of the permit.

(g) Permit holders may sell any alcoholic beverage authorized by law to be sold where the event is to be

held.

(h) Permit holders must purchase distilled spirits for Nonprofit Entity Temporary Events from a local

distributor permit holder.

(i) A nonprofit entity is not limited in the number of events it may hold under this section in a calendar

year, except for certain events in dry areas as provided by Alcoholic Beverage Code §30.09.

(j) Events in dry counties must comply with Alcoholic Beverage Code §30.09.

(k) Auction-only Events.

(1) Subsections (d) - (h) of this section do not apply to a Nonprofit Temporary Event at which

alcoholic beverages are auctioned but not otherwise sold or served to a consumer.

(2) Events under this subsection do not require prior approval and are not subject to late fees.

(3) The holder of a Nonprofit Entity Temporary Event Permit may conduct an auction on the

licensed premises of another only if:

(A) all alcohol auctioned is stored separately from other alcohol stored, sold, or served by the

permittee; and

(B) all alcohol auctioned, whether sold or unsold, is removed from the licensed premises

immediately following the event.

Source Note: The provisions of this §33.78 adopted to be effective September 1, 2021, 45 TexReg 8771;

amended to be effective December 6, 2021, 46 TexReg 8242; amended to be effective October 17, 2022,

47 TexReg 6872

§33.79 Serving Alcoholic Beverages at Fundraising Events

(a) This section applies to the use of alcoholic beverages at fundraising events held by or benefitting

charitable, religious, political, and civic organizations.

(b) An organization may provide free alcoholic beverages at an event under this section without first

obtaining a temporary authorization only if the alcoholic beverages are offered free of charge upon

the request of any non-intoxicated person at least 21 years of age, regardless of whether the person

has paid a membership fee, entrance fee, door charge, meal charge, ticket price, or any other fee for

the event. The organization shall not request donations or tips or otherwise receive money in

exchange for alcoholic beverages served.

(1) serve donated alcoholic beverages;

(2) receive donations in cash or of alcoholic beverage products;

(3) enter into sponsorship or underwriting agreements with members of the alcoholic beverage

industry, including agreements for advertising, signage, and product exclusivity; and

(4) offer free alcoholic beverages to the general public outside of the event, but condition entry into

the event on payment of a donation or fee.

(d) An organization that obtains a temporary authorization for an event may sell alcoholic beverages at

the event subject to the following conditions:

(1) the organization must sell only alcoholic beverages purchased from a licensed distributor,

wholesaler, winery, brewery, or brewpub, or a holder of a local distributor's permit;

(2) the organization may not sell any donated alcoholic beverages; and

(3) the organization may not accept a cash donation from a member of the alcoholic beverage

industry that is conditioned upon a written or unwritten agreement between the organization and

alcoholic beverage industry member with respect to how the organization will spend the cash

donation, any benefit that the industry member will receive as a result of the cash donation,

which products the organization will sell at the event, or sponsorship rights, including signage

and advertising.

(e) An organization selling alcoholic beverages pursuant to a temporary authorization obtained by the

organization may accept cash donations from alcoholic beverage industry members and use the cash

for any purpose, including purchasing alcoholic beverages for use at the event, subject to subsection

(d)(3) of this section.

(f) An organization may partner with an independent third-party retail permit holder to sell alcoholic

beverages at an event under this section, subject to the following conditions:

(1) the permit to sell alcoholic beverages at the event must be held by a retailer that is independent

of the sponsors of the event;

(2) the retail permit holder may not receive any direct benefit or service due to sponsorship by a

wholesaler or manufacturer of alcoholic beverages;

(3) the organization may not exchange gifts or donations for exclusive rights to sell a certain

product or brand; and

(4) the retail permit holder must retain the right to control the quantity and selection of brands of

alcoholic beverages purchased or sold for the event and at the event.

(g) An organization partnering with an independent third-party retail permit holder under subsection (f)

of this section may:

(1) receive cash or in-kind donations from manufacturers, wholesalers, and retailers; and

(2) enter into an agreement with the retail permit holder whereby the retail permit holder donates a

portion of the proceeds from the event to the organization; and

(3) enter into sponsorship agreements with manufacturers, wholesalers, and retailers.

(h) Signs or other advertising materials placed by members of the alcoholic beverage industry indicating

their participation in, or sponsorship of an event under this section must comply with §45.1111 of

this title, relating to Advertising Signs at Charitable or Civic Events.

Source Note: The provisions of this §33.79 adopted to be effective September 1, 2021, 45 TexReg 8771

§33.80 Temporary Events Authorized under a Mixed Beverage Permit

(a) The holder of a mixed beverage permit may hold an event at a temporary location subject to all rules

applicable to the mixed beverage permit.

(b) An event under this section may be authorized by a File and Use Notification if it meets the

requirements of 16 TAC §33.71(a) of this subchapter, or by a Temporary Event Approval.

Source Note: The provisions of this §33.80 adopted to be effective December 6, 2021, 46 TexReg 8242

§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.

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 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.

Source Note: The provisions of this §33.81 adopted to be effective April 17, 2023, 48 TexReg 1957;

amended to be effective February 12, 2024, 49 TexReg 658

SUBCHAPTER F: License and Permit Action

§33.90 Renewal of Licenses and Permits after Expiration

For a renewal application, failure to submit any requested information, corrections, forms, or fees within

fourteen days of demand will constitute non-compliance with Alcoholic Beverage Code §6.04 and this

rule, resulting in the expiration of the license or permit due to the insufficiency of the application.

Source Note: The provisions of this §33.90 adopted to be effective December 31, 2020, 45 TexReg 8770;

amended to be effective September 1, 2021, 46 TexReg 5178

§33.91 Administrative Inactivation, Reinstatement and Renewal of a License or Permit

(a) This section implements Alcoholic Beverage Code §11.44 and §102.32(d-1) and clarifies procedures

related to administrative inactivation involving either voluntary or involuntary suspensions.

(b) Administrative inactivation refers to the placing of a license or permit in administrative suspense

under this section and without a due process hearing. During administrative inactivation (whether

voluntary or involuntary), the license or permit holder may not engage in any authorized activities

allowed under that license or permit. The term of the license or permit will not be tolled during

administrative inactivation but will expire on the date indicated on the face of the license or permit.

hearing, administratively inactivate and place in administrative suspense a license or permit upon

receipt of an affidavit by the landlord, on a form prescribed by the executive director, that the

premises has been abandoned by the licensee or permittee and that the licensee or permittee no

longer has any interest in the premises.

(d) The commission may without a hearing administratively inactivate and place in administrative

suspense a license or permit if the commission receives a final, non-appealable court judgment of

eviction concerning against a permitted or licensed premises that is subject to a pending or unexpired

suspension order or for which a cancellation or suspension action has been initiated.

(e) The commission may, without a hearing, administratively inactivate and place in administrative

suspense a license or permit if the license or permit holder is delinquent in the payment of an account

for liquor under Code §102.32 and either subsection (c) or (d) of this section applies. The

Commission may not accept the voluntary cancellation or suspension of a license or permit or allow

a license or permit to be renewed or transferred if the license or permit holder is delinquent in the

payment of an account for liquor under §102.32 of the Texas Alcoholic Beverage Code.

(f) The commission may, but is not required to, administratively inactivate and place in voluntary

suspense a license or permit if no administrative action is pending against the license or permit and

either:

(1) the actual license or permit is submitted by the license or permit holder; or

(2) a sworn statement is submitted by the license or permit holder stating that the actual license or

permit is unavailable for surrender and why.

(g) If a license or permit has been placed in voluntary administrative inactivation and the license or

permit has not expired then the license or permit may be reinstated to active status, but only if the

same requirements and qualifications as an applicant for an original license or permit are met. If a

license or permit is reinstated under this subsection, the license or permit fee for the remainder of the

license or permit term during which it was placed in administrative inactive status is not required.

(h) A license or permit may be renewed while on administrative inactivation only if, prior to the

expiration date of the license or permit, a completed renewal with required supporting documents

and all necessary state fees and surcharges is filed in accordance with all applicable sections of the

code and rules. Otherwise the license or permit will expire at the end of its existing term.

(i) The effective date of the administrative inactivation of a license or permit or its voluntary

cancellation will be the date the statement or other document required by this section is received in

the licensing division or any other date mutually agreed to by the parties.

Source Note: The provisions of this §33.91 adopted to be effective December 31, 2020, 45 TexReg 8770

§33.92 Notification of Expired or Suspended Licenses and Permits

(a) This rule refers to §§11.091(b) and 61.031(b) of the Alcoholic Beverage Code.

(b) Notification to wholesalers of expired or suspended licenses or permits shall be by electronic

publication of such information on the commission's Internet web page.

ceased to be active because of the operation of time and for which no timely and sufficient

application for renewal has been filed with the commission.

(d) For purposes of the above referenced sections, a suspended license or permit shall be one that has

ceased to be active by operation of the procedures described in §33.91 of this title (relating to

Administrative Inactivation, Reinstatement and Renewal of a License or Permit).

Source Note: The provisions of this §33.92 adopted to be effective December 31, 2020, 45 TexReg 8770

§33.93 Notification Requirements

(a) A person who holds a license, permit or certificate issued by the Alcoholic Beverage Commission

shall maintain a current mailing address, telephone number and email address on file with the

division that has issued the license, permit or certificate.

(b) A person who holds a license, permit, or certificate issued by the Alcoholic Beverage Commission

shall file a written notice of change of mailing address with the Commission within seven (7)

business days of the change. A person who holds a certificate issued by the Commission shall file the

change of address with the Seller/Server Training Division at TABC, P.O. Box 13127, Austin, Texas

78711.

the last known mailing address of a person that is on file with the commission.

(1) A person notified by mail under this subsection is presumed notified on the third day after the

date on which the notice is mailed.

(2) This subsection does not apply to a notice required by Government Code §2001.054.

Source Note: The provisions of this §33.93 adopted to be effective December 31, 2020, 45 TexReg 8770

§33.94 Reporting Permit or License Changes

(a) All changes subject to this section must be reported in the manner prescribed by the commission.

(b) Nothing in this section limits the commission's authority to request information from a license or

permit holder at any time to determine if a change required to be reported has occurred.

following the date the change occurred:

(1) the addition or removal of a person whose name was included on the original application or

whose name would be required if a new application for an original license or permit was being

submitted;

(2) a change to a person's criminal history that affects their qualifications to hold a license or

permit;

(3) a change of the owner of the premises, a sublessor, a management company, or a concession

company, or to the terms of any agreements with any such persons; or

(4) a change of organization as that term is defined in Business Organizations Code §1.002(62),

other than a change of business entity described in Alcoholic Beverage Code §§11.12 or 61.14.

(d) The license or permit holder must report the following changes from the information provided in the

application for an original license or permit or the most recent reported change to the commission

prior to the date the change will occur:

(1) a change in corporate control pursuant to Alcoholic Beverage Code §28.04; or

(2) a change of tradename.

(e) The license or permit holder must report a change of business entity described in Alcoholic Beverage

Code §§11.12 or 61.14 no less than ten days before the date the change will occur.

(f) This section does not apply to:

(1) a change of mailing address or other contact information, which are subject to the requirements

of §33.93 of this title (relating to Notification Requirements); or

(2) a change in the licensed or permitted location pursuant to Alcoholic Beverage Code §§ 11.08 or

61.09, which is subject to the requirements of §33.3 of this title (relating to Process to Apply for

License or Permit).

Source Note: The provisions of this §33.94 adopted to be effective December 31, 2020, 45 TexReg 8770;

amended to be effective October 17, 2022, 47 TexReg 6873

SUBCHAPTER G: Emergency Orders

§33.100 General Provisions

(a) The purpose of this subchapter is to implement the commission's authority under Texas Alcoholic

Beverage Code Section 11.614 to issue an emergency order temporarily suspending a permit or

license.

(b) The commission, executive director, or executive director's designee may issue an emergency order

suspending the permit or license of a business without a hearing if the commission, executive

director, or executive director's designee determines that the operation of the business constitutes a

continuing threat to the public welfare.

videoconference in compliance with applicable provisions of the Texas Open Meetings Act (Tex.

Gov't Code Ch. 551) and the Administrative Procedure Act (Tex. Gov't Code Ch. 2001).

Source Note: The provisions of this §33.100 adopted to be effective December 9, 2020, 45 TexReg 8772

§33.101 Authority of the Executive Director

(a) The executive director is authorized to issue emergency orders under this subchapter.

(b) The executive director may delegate a representative or representatives to act on the executive

director's behalf under this subchapter.

Source Note: The provisions of this §33.101 adopted to be effective December 9, 2020, 45 TexReg 8772

§33.102 Term of Suspension

(a) The term of an emergency order issued under this subchapter shall not exceed 90 days.

(b) The term of an emergency order is not tolled and the order suspending the permit or license remains

in effect during any contested case proceeding against the permit or license holder.

Source Note: The provisions of this §33.102 adopted to be effective December 9, 2020, 45 TexReg 8772

§33.103 Notice and Opportunity for Hearing

If an emergency order is issued without a hearing, the executive director or his designee shall set the time

and place for a hearing on the emergency order to be conducted by the State Office of Administrative

Hearings.

Source Note: The provisions of this §33.103 adopted to be effective December 9, 2020, 45 TexReg 8772

§33.104 Contents of Emergency Order

An emergency order issued under this subchapter shall contain at least the following:

(1) the name and address of the license or permit holder and information sufficient to identify the

premises affected by the order;

(2) a brief statement of fact supporting the issuance of the order;

(3) a determination that the continued operation of a permitted or licensed business would

constitute a continuing threat to the public welfare; and

(4) a statement of the term of the order, including the date on which it begins and ends.

Source Note: The provisions of this §33.104 adopted to be effective December 9, 2020, 45 TexReg 8772

§33.105 Appeals of Emergency Orders

There is no right to appeal to the commission an administrative law judge's determination affirming,

modifying, or setting aside an emergency order issued under this subchapter.

Source Note: The provisions of this §33.105 adopted to be effective December 9, 2020, 45 TexReg 8772

Chapter 34: Schedule and Sanction of Penalties

§34.1 General Provisions

(a) This rule relates to §§11.61, 11.64, 11.641, 104.01, and 106.13 of the Alcoholic Beverage Code.

(b) Definitions. When used in this chapter, the following words and have the following meanings unless

the context clearly indicates otherwise:

(1) Assist--as used in Alcoholic Beverage Code §§61.71(a)(11) and 106.09(a), the word "assist"

shall not be construed to mean that a person under 18 years of age assists in selling, serving,

preparing, handling, or dispensing alcoholic beverages merely by being employed to work on or

about a premises where alcoholic beverages are sold or served, as long as the person under 18

years of age does not have a direct and immediate connection with any particular sale or service

of such beverages.

(2) The Code--the Texas Alcoholic Beverage Code.

(3) Lewd and vulgar entertainment or acts--Any sexual offenses contained in the Texas Penal Code,

Chapter 21, or any public indecency offenses contained in the Texas Penal Code, Chapter 43.

(4) Narcotic--Any substance defined in the Texas Controlled Substances Act, §481.002(5), (6), (7),

or (26).

(5) Written--any method of writing by any method of transmission, including hand-written or typed

and transmitted by hand delivery, mail, e-mail, fax, or through an internet-based management

system directly accessible by the recipient.

(d) Written warnings. A written warning is an administrative notice issued by a representative of the

commission to the license or permit holder documenting a violation of the Code or commission rules

and:

(1) may be issued by authorized commission personnel for any violation if the person issuing the

written warning determines it to be an effective deterrent from further violations of the Code or

commission rules;

(2) may be used as an aggravating circumstance for purposes of determining the appropriate

sanction under §34.2 or §34.10; of this title and

(3) is subject to the rights and procedures of a contested case under the Administrative Procedure

Act.

(e) Any case alleging a sale to a minor or intoxicated person in violation of Code §§11.61(b)(14),

61.71(a)(6) or 101.63 in which the unlawful sale or service directly or indirectly caused death or

serious bodily injury shall be referred directly to the commission's legal services division by

authorized commission personnel without an offer of settlement or compromise provided to the

licensee/permittee. For purposes of this section, "serious bodily injury" has the meaning assigned by

Tex. Penal Code §1.07(a)(46).

(f) Each suspension of a license or permit shall run for consecutive days. A person assessed a suspension

by the commission may be provided with an opportunity to pay a civil penalty in lieu of a suspension

as provided by §11.64 of the Code. The commission may, in its discretion, agree to divide an

imposed sanction between civil penalties and suspension.

(g) A subsequent violation of the same Code provision or rule will result in a higher sanction if:

(1) the person has been given written notice of the prior violation and the subsequent violation is:

(A) a health, safety, and welfare violation and occurs within 36 months of the prior violation;

(B) a regulatory violation with a base penalty of $1,000 and occurs within 24 months of the

prior violation; or

(2) the subsequent violation involves covert investigative activities.

(h) For a violation of the Code or rules that is not listed in §34.2, of this title, the penalty or sanction

must be approved by a division director prior to entering into a settlement.

(i) A person authorized to enter into a settlement under this section may make a written

recommendation to the executive director or the executive director's designee for a deviation from

sanctions in §34.2 of this title to account for aggravating or mitigating circumstances. The executive

director or the executive director's designee must approve a recommendation to deviate from §34.2

of this title before a settlement reflecting the deviation is offered to the licensee/permittee.

Source Note: The provisions of this §34.1 adopted to be effective August 21, 2008, 33 TexReg 6583;

amended to be effective May 25, 2009, 34 TexReg 3262; amended to be effective June 6, 2022, 47

TexReg 3242

§34.2 Schedule of Sanctions and Penalties for Health, Safety and Welfare Violations

(a) An act or failure to act that results in a violation of the Code or rules that represents a threat to the

public health, safety, or welfare will be assessed sanctions and penalties according to Figure 16 TAC

§34.2(e) and/or a license or permit suspension or cancellation. Each sanction in Figure 16 TAC

§34.2(e) other than cancellation includes an optional monetary penalty of $300 per day of

suspension.

(b) The list of violations in Figure 16 TAC §34.2(e) is nonexclusive; the absence of a statute or rule from

the chart does not limit the commission's statutory authority to enforce compliance with the Code

and its rules by assessing penalties.

listed in Figure §34.2(e), will be assessed sanctions based upon all relevant facts and circumstances.

(d) For a contested case brought under subchapters C and D of the Administrative Procedure Act or an

investigation or violation referred to the legal services division of the commission for resolution, the

sanctions and penalties in Figure §34.2 may be used as a guideline but adherence is not required.

(e) Nothing in this rule shall be construed to limit the commission's authority to suspend or cancel a

license or permit under §§11.38, 11.61, 32.17, 61.71, 201.075, or any other provision of the Code

authorizing suspension or cancellation of a license or permit.

Figure: 16 TAC §34.2(e) – Schedule of Penalties for Health, Safety and Welfare Violations

DESCRIPTION

Code (§) and

Rule Citation(s)

Violation

Employing a minor to sell, serve,

prepare, or otherwise handle

alcoholic beverages

§§61.71(a)(11),

106.09

5-7 days

10-14 days

30 days-

Cancel

Permitting a minor to possess or

consume an alcoholic beverage

§106.13

3-5 days

6-10 days

18 days-

Cancel

Selling an alcoholic beverage to a

minor

§106.03

8-12 days

16-24 days

48 days-

Cancel

Conducting business in a manner

as to allow a simple breach of the

peace with no serious bodily

injury or deadly weapon involved

(as defined in the Texas

Penal Code)

§§22.12, 24.11,

28.11, 32.24,

69.13, 71.09

3-5 days

6-10 days

18 days-

Cancel

Conducting business in a manner

as to allow an aggravated breach

of the peace with a serious bodily

injury, death or involving a

deadly weapon (as defined in the

Texas Penal Code)

§§22.12, 24.11,

28.11, 32.24,

69.13, 71.09

25-35 days

Cancel

Failure to report a breach of the

peace

§§11.61(b)(21),

61.71(a)(30)

2-5 days

4-10 days

12 days-

Cancel

Possession of, sale or delivery of,

or permitting the sale or delivery

of narcotics or synthetic

cannabinoids by a licensee or

permittee or possession of any

§104.01

25-35 days

Cancel

equipment used or designed for

the administering of narcotics or

synthetic cannabinoids

Selling or serving an alcoholic

beverage to an intoxicated

person – no associated bodily

injury or death

§§11.61(b)(14),

61.71(a)(6),

101.63

8-12 days

16-24 days

Cancel

Intoxication of the license or

permit holder or any employee on

a licensed premise

§§11.61(b)(13),

104.01(a)(5)

17-25 days

34-50 days

Cancel

Soliciting any person to buy

drinks for consumption by the

retailer or any of its employees,

servants, or agents

§104.01(a)(4)

30 days-

Cancel

Permitting public lewdness,

sexual contact, or obscene acts, or

exposure of a person or

permitting a person to expose

themself on a licensed premises

§§61.71(a)(10),

104.01(a)

5-7 days

10-14 days

Cancel

Selling, serving, or

delivering alcoholic beverages

during prohibited hours or

consuming or permitting

consumption of an alcoholic

beverage during prohibited hours

on a licensed premises

§§11.61(b)(22),

61.71(a)(17),

105.01-105.10

8-12 days

16-24 days

Cancel

Refusing inspection of premises

§101.04

10-14 days

30-Cancel

Cancel

Rudely displaying or permitting a

person to rudely display a

weapon in a retail establishment

§104.01 (a)(3)

5-7 days

10-14 days

30-Cancel

Trafficking of an adult with intent

that adult engage in forced labor

or services or receiving a benefit

including labor or services per

§20A.02(1-2) of the Penal Code;

Trafficking an adult through

force, fraud, coercion, causing

prostitution-related conduct,

receiving a benefit, or engaging

in sexual conduct with an adult

per §20A.02(3-4) of the Penal

Code;

Trafficking of one child with

intent that child engage in forced

labor or services, or receiving a

benefit of such trafficking,

including labor or services per

§20A.02(5-6) of the Penal Code;

Trafficking of one child causing

child to engage in, be victim of,

or conduct prohibited by sexual

offenses described in §20A.02(7),

received benefit, or participation

in sexual conduct with a child

trafficked per §20A.02(7-8) of the

Penal Code;

Continuous trafficking of persons

under §20A.03 of the Penal Code

Cancel

Prostitution

30 days -

Cancel

Promotion of prostitution

Cancel

Prohibited Activities by Persons

Younger Than 18

§106.15

5 days

60 days

Cancel

Presence or Employment of

Certain Minors at Sexually

Oriented Business

§106.17

30 days

60 days

Cancel

Failure to timely provide records,

including videos, related to

violation not involving serious

bodily injury or death or any

smuggling or trafficking-related

offense

§§5.32, 5.44,

11.61(b)(2),

61.71(a)(1)

8-12 days

16-24 days

Cancel

Failure to timely provide records,

including videos, related to

violation involving serious bodily

injury or death or any smuggling

or trafficking-related offense

§§5.32, 5.44,

11.61(b)(2),

61.71(a)(1)

30 days

60 days

Cancel

Source Note: The provisions of this §34.2 adopted to be effective August 21, 2008, 33 TexReg 6583;

amended to be effective October 17, 2019, 44 TexReg 5899; amended to be effective June 6, 2022, 47

TexReg 3242

§34.3 Offenses Against the General Welfare; Place or Manner Violations

(a) This rule relates to §§11.46(a)(8), 11.61(b)(7), 61.42(a)(3) and 61.71(a)(16) of the Alcoholic

Beverage Code.

(b) A licensee or permittee violates the provisions of the Code cited in subsection (a) of this section if

any of the offenses listed in subsection (c) of this section are committed:

(1) by the licensee or permittee in the course of conducting its alcoholic beverage business; or

(2) by any person on the licensee or permittee's licensed premises; and

(3) the licensee or permittee knew or, in the exercise of reasonable care, should have known of the

offense or the likelihood of its occurrence and failed to take reasonable steps to prevent the

offense.

(1) any preparatory offense described in Chapter 15 of the Texas Penal Code;

(2) any homicide offense described in Chapter 19 of the Texas Penal Code;

(3) any trafficking or smuggling of a person or receipt of benefit from participating in a human

trafficking offense described in Chapter 20A of the Texas Penal Code or 18 U.S.C. §§1581-

1592;

(4) any sexual offense described in Chapter 21 of the Texas Penal Code;

(5) any assaultive offense described in Chapter 22 of the Texas Penal Code;

(6) any arson, criminal mischief or property damage or destruction offense described in Chapter 28

of the Texas Penal Code;

(7) any theft offense described in Chapter 31 of the Texas Penal Code;

(8) any fraud offense described in Chapter 32 of the Texas Penal Code;

(9) any money laundering offense described in Chapter 34 of the Texas Penal Code;

(10) any bribery offense described in Chapter 36 of the Texas Penal Code;

(11) any obstruction offense described in Chapter 38 of the Texas Penal Code;

(12) any disorderly conduct or related offenses described in Chapter 42 of the Texas Penal Code;

(13) any public indecency offense described in Chapter 43 of the Texas Penal Code;

(14) any weapons offense described in Chapter 46 of the Texas Penal Code;

(15) any gambling offense described in Chapter 47 of the Texas Penal Code;

(16) any narcotics related offense described in Chapters 481 and 483 of the Texas Health and Safety

Code;

(17) any law, regulation or ordinance of the state or federal government or of the county or

municipality in which the licensed premises is located, violation of which is detrimental to the

general welfare, health, peace and safety of the people; and

(18) any solicitation of any person to buy drinks for consumption by the retailer or any of the

retailer's employees in violation of §104.01 of the Alcoholic Beverage Code.

(d) This rule does not constitute the exclusive means by which §§11.46(a)(8), 11.61(b)(7), 61.42(a)(3)

and 61.71(a)(16) may be violated.

Source Note: The provisions of this §34.3 adopted to be effective June 6, 2022, 47 TexReg 3242

§34.4 Suspensions

(a) This section implements Alcoholic Beverage Code (Code) §11.64(a), which requires the commission

to adopt rules addressing when a suspension may be imposed without the opportunity to pay a civil

penalty.

(b) The executive director or the executive director's designee may deny a licensee or permittee the

option of paying a civil fine in lieu of a suspension of the license or permit if the licensee or

permittee has violated one or more of the following provisions of the Code:

(1) Section 11.61(b)(14): sale to an intoxicated person by a permittee;

(2) Section 22.12: breach of the peace on the premises of a package store;

(3) Section 28.11: breach of the peace on the premises of a mixed beverage permittee;

(4) Section 32.17(a)(2): refuse to allow an authorized agent or representative to come onto the

premises;

(5) Section 32.17(a)(3): refuse to furnish requested information to the commission or its agents or

representatives;

(6) Section 32.17(a)(7): consumption or service of alcohol on the premises during prohibited hours;

(7) Section 61.71(a)(5): sale to a minor by a licensee;

(8) Section 61.71(a)(6): sale to an intoxicated person by a licensee;

(9) Section 61.74(a)(14): sale to a minor by a licensee;

(10) Section 69.13: breach of the peace on the premises of an on-premise retail malt beverage dealer;

(11) Section 71.09: breach of the peace on the premises of an off-premise retail malt beverage

dealer;

(12) Section 101.04: refuse to allow inspection;

(13) Section 104.01(a)(4): solicitation of drinks;

(14) Section 101.63: sale to an intoxicated person;

(15) Section 106.03: sale to a minor;

(16) Section 106.06: purchase of alcohol for a minor;

(17) Section 106.15: engage in prohibited activity related to dancing by a person under 18;

(18) Chapter 105: sale or offer of sale of an alcoholic beverage during prohibited hours, or

consumption or permitting consumption of an alcoholic beverage during prohibited hours;

(19) any offense relating to gambling, prostitution or trafficking of persons; or

(20) any offense relating to controlled substances or drugs.

circumstances required or allowed to be considered in this section, the executive director or the

executive director's designee has discretion to determine whether to allow a licensee or permittee the

option to pay a civil penalty in lieu of a suspension but is not required to allow such payment in lieu

of suspension.

(d) In determining whether to deny a licensee or permittee the option to pay a civil penalty in lieu of a

suspension, the executive director or the executive director's designee shall consider any aggravating

or mitigating factual circumstances related to the violation, including but not limited to:

(1) the type of license or permit held by the violating licensee or permittee;

(2) the type of violation or violations charged;

(3) the licensee's or permittee's record of past violations, including the number, type and frequency

of violations of the Code and of the rules of the commission; and

(4) the date the license or permit was issued.

(e) In addition to the circumstances listed in subsection (d) of this section that must be considered in

determining whether to allow a licensee or permittee the option to pay a civil penalty in lieu of a

suspension, the executive director or the executive director's designee may also consider other

circumstances, including but not limited to:

(1) whether the sale of alcoholic beverages constitutes the primary or partial source of the licensee

or permittee's business;

(2) whether the violation was caused by intentional or reckless conduct by the licensee or permittee;

(3) whether the violation caused the serious bodily injury or death of another;

(4) whether the character and nature of the licensee's or permittee's operation were reasonably

calculated to avoid violations of the Code and rules of the commission at the time of violation;

and/or

(5) whether the licensee or permittee has taken action to remediate the violation and to prevent

future violations.

Source Note: The provisions of this §34.4 adopted to be effective June 6, 2022, 47 TexReg 3242

§34.10 Sanctions for Regulatory Violation

(a) Regulatory violations of listed statutory and rule provisions will be assessed a base penalty of $250,

$500, or $1,000 as shown in Figure §34.10(g). Base penalties may be augmented or discounted based

upon the number of violations and other circumstances surrounding the violation, according to the

commission Penalty Policy in effect on the date the violation occurred or on the first date the

violation occurred, if it is a violation that is ongoing in nature.

(b) The penalty chart in Figure §34.10 is non-exclusive; the absence of a statute or rule from the chart

does not limit the commission's statutory authority to enforce compliance with the Code and its rules

by assessing administrative penalties.

investigation or violation referred to the legal services division of the commission for resolution, the

sanctions and penalties in Figure §34.10 may be used as a guideline but adherence is not required.

(d) Nothing in this rule shall be construed to limit the commission's authority to suspend or cancel a

license or permit under §§11.38, 11.61, 32.17, 61.71, 201.075, or any other provision of the Code

authorizing suspension or cancellation of a license or permit.

(e) The number of days of license or permit suspension offered to the respondent in lieu of the penalty

shall be commensurate with the penalty assessed under this section and calculated according to the

commission Penalty Policy in effect on the date the violation occurred or on the first date the

violation occurred, if it is a violation that is ongoing in nature.

(f) The Penalty Policy shall be publicly available and published on the commission's web site.

(g) The commission shall review the Penalty Policy and update or revise it as necessary at least once

every seven (7) years.

Figure 16 TAC 34.10(g

) – Sanctions for Regulatory Violations

$250

$500

$1,000

Failure to

Display

License or

Permit

§§11.04 and

61.01

Permit Minor

in Package

Store

§109.53

Open Saloon - Sale

to Non-Member

§§32.01(a),

32.17 (a)(1)

and 32.17 (b)

Failure to

Timely File

Monthly

Report

§§201.075 (DS

& Wine), 203.13

(Malt Bev)

Cash Law

§§61.73 and

102.31; Rule

45.131

Conspiracy to

Receive Unlawful

Benefit

§104.03

Failure to Pay

State Franchise

Tax

§§11.61(b)(5),

61.712

Credit Law

§102.32; Rule

45.130

Inducement

§§102.04

(b)(6);102.07

(a)(8);

102.12;

108.06; Rule

45.110

Failure to Pay

State Hotel Tax

§§11.61(b)(5),

61.712

Private Club -

Storage of

Alco. Bev. not

Owned by

Members

§32.01(a)(1);

Rule 41.56

Unlawful

Agreement

§102.16

Failure to

Maintain

Acceptable

Gross Receipts

or Sales Tax

Bond

§28.17

Inspection

Refusal

§32.12

Illegal

Contract/Alternatin

Brewing/Manufact

uring

§62.14

Failure to

Maintain

Acceptable

Alco. Bev.

Excise Tax

Bond

§§204.01 - .03

Maintaining a

Noisy

Establishment

§11.61(b)(9)

Illegal Contract

Distilling - Spirits

§§11.06;

14.01

Failure to

Maintain

Acceptable

Conduct Surety

Bond

§§11.11(a)(2),

61.13; Rule

33.41

Maintaining an

Unsanitary

Establishment

§11.61(b)(9)

Refilling Distilled

Spirits Bottle on

Licensed Premise

§28.08

Failure to

Report

Corporate

Change

§28.04 and Rule

33.94

Brand

Substitution

w/o Customer

Consent

§§28.081;104.04;

61.74(a)(13)

Permitting

Removal of Alco.

Bev. from Premise

§§28.10,

32.17(a)(4)

$250

$500

$1,000

Possession of

Unauthorized

Alco. Bev.

§§25.09,

26.01(a), 69.12,

71.04

Poss. of

Distilled Spirits

w/o ID Stamp

(Local Dist.

Stamp)

§§28.15(a);

32.20(a)

Sell/Deliver Alco.

Bev. while under

Suspension

§11.68

Failure to

Maintain

Acceptable

State Sales Tax

Bond

§11.61(b)(8)

Failure to

Invalidate ID

Stamps

§28.09(a); Rule

41.60(h)

Operating without

Required License

or Permit

§§11.01,

61.01

Failure to Pay

State Sales Tax

§§11.61(c)(2),

61.712

Mixed Bev. –

Possession of

Un-

invoiced/Unaut

horized Alco.

Bev.

§28.06 (a), (b)

Permit

Consumption of

Malt Beverage at

Off- Premise

Location

§71.01

Failure to Pay

or Report

Mixed Bev.

Gross Receipts

or Sales Tax

§§11.61(b)(5),

61.712

Possession of

Alco. Bev.

Unfit for

Consumption

§103.07

Store Alco. Bev.

Off Licensed

Premise

§§69.10,

71.06

Failure to

Maintain

Performance

Bond

§§11.61(b)(8),

61.71(a)(l)

Sell/Deliver

Alco. Bev. in

Open Container

§§22.11, 24.10

False/Misleading

Statement in

Application,

Document, Report

Etc.

§§11.46

(a)(4),

11.61(b)(4),

61.43(a)(4),

and/or

61.71(a)(4)

and (11)

Failure to

Timely Provide

Records

§§5.32, 5.44

(a)(6); Rule 41.2

Acquired Alco.

Bev. from

Another

Retailer

§§69.09, 71.05

Illegal Interior

Signage

§61.74(a)(1);

Rule

45.113(d)

Failure to

Maintain or

Properly

Document

Invoices

§5.32; Rule 41.2

Purchase of

Alco. Bev.

while on

Delinquent List

§102.32; Rule

45.130(g)

Prohib.

Relationship with

Different Levels of

Industry

§§102.01;

102.07;

102.15

Failure to

Operate under

§§61.05,

108.52(c)

Consignment

Sale of Alco.

Bev.

§§102.07(a)(4);

61.71(a)(8)

Sale to Respondent

on Delinquent List

§102.32(d);

Rule

45.130(f)

$250

$500

$1,000

the Required

Tradename

Outdoor

Advertising

Violation

Code Chapter

108

Sale away from

Licensed

Premise

§§11.06, 61.06,

32.17(a)(4)

No Permanent

Food Service

Facility at

Addressed

Location

§§25.13,

28.18, 32.23,

69.16; Rule

33.5(c)

Failure to Post

Required Sign

§§11.042, 26.05,

61.111, 71.10,

104.07; Rule

31.4

On-Premises

Promotions

Rule 45.103

Ineffective

Instruction

Rules

50.3(e),

50.4(b),

50.5(b)

Food & Bev.

Permit Holder:

Incomplete /

Missing

Records

§5.32; Rule 33.5

(f), (k)

Session Class

Size Exceeds

Rules 50.6(a),

50.26(b)(1),

(b)(17)

Illegal Sampling /

Tasting Event

§§16.01(c),

24.12, 26.08,

37.01

Failure to

Complete or

File Excise Tax

Report

§5.32, Rule Ch.

41, Subch. C

Failure to Place

Retailer on

Delinquent List

Rule 45.130

Program Taught by

Uncertified Trainer

Rule 50.25(c)

Failure to Meet

Trainer

Certification

Requirements

Rule 50.26(b)

Failure to

Report Cash

Law Violation

§102.31(c); Rule

45.131(e)

In-House Program

Certified Non-

Employees

Rule 50.8

Failure to

Properly Issue

Trainee

Certificates

Rule 50.9(b), (c)

Failure to

Report Credit

Law Violation

§102.32(d); Rule

45.130(e)

Exclusive Outlet

§§102.13,

109.08

Failure to

Properly

Schedule/Canc

el Training

Session

Rule 50.10(a),

(b)

Transporting

w/o Required

Invoice

§§22.08, 23.04,

24.04; Rule 41.14

Commercial

Bribery

§102.12

Failure to Meet

Testing

Requirements

Rule

50.26(b)(19)

Records

Incomplete or

Missing

§32.13; Rule 41.6

Prohibited Interest

§§22.06,

51.06,

102.03,102.0

4, 102.09,

102.10,

$250

$500

$1,000

102.11,

102.18

Failure to Meet

Requirements-

Sch/Pgm

Certification

Rule 50.13

Membership/M

embership

Committee

Violations

§§32.09, 32.16;

Rules 41.51,

41.56

Unauthorized

Manufacturing/

Brewing Activity

§§11.01,

61.01

Failure to

Properly

Prepare/File

Session

Reports

Rule 50.10(e)

Improper

Financial

Transactions

§32.06; Rules

41.53, 41.54

Transporting

Liquor w/out

Required Transport

Permit

§§11.01,

41.01, 43.03

No Written

Consent to

Scan DL/ID

§109.61(b);

Rules 41.51(f),

41.56

Unauthorized

Sale/Brew Products

for On-Premise

Consumption

§62.12,

62.122

Adequate Food

Service Not

Available

Rule 33.5(c)

Place / Manner -

Violated Waiver

Order

§§11.61(b)(7)

61.71(a)(17);

Rule 34.3

Food Items Not

Prepared/

Assembled on

Premises

Rule 33.5(c)

Place / Manner -

Over Serving

§§11.61(b)(7)

, 32.17(a)(8),

61.71(a)(17);

Rule 34.3

Alcohol Sale

Hours beyond

Food Sale

Hours

Rule 33.5(d)

Place / Manner -

Assaultive Offenses

§§11.61(b)(7)

, 32.17(a)(8),

61.71 (a)(17);

Rule 34.3

Engage in

Promotional

Activity w/o

License/Permit

§§35.01, 36.01,

50.001

Illegal

Stocking/

Shelving/

Product

Rotation

§102.20; Rule

45.109

$250

$500

$1,000

Unauthorized

Market

Research

§§102.07,

108.06; Rule

45.113(b)(4)

Unauthorized

Sweepstakes

Contest

§§102.07(e),

108.061; Rule

45.106

Unauthorized

Coupon

§§102.07(d),

108.06; Rule

45.113

Failed to Meet

Labeling

Requirements

§§37.07, 101.67

Illegal Bar

Spending

§§102.07(g)(2),

102.15(b)(2);

Rules 45.113,

45.117

Illegal Refund/

Exchange by

Wholesaler/

Distributor

§§11.61(b)(2),

61.74(a)(1),

104.05(d), (e)

Possess/

Transport/

Store Illicit

Beverage

§103.01

Food Service

Not Available/

Adequate

(Private Club)

§32.03(g); Rule

41.55

Failure to

Maintain ID

Stamp Reports

Rule 41.60

Possess Un-

Affixed ID

Stamps

§§28.151, 32.201

Unauthorized

Repackaging of

Alco. Bev.

§104.05

$250

$500

$1,000

Unauthorized

Breakdown &

Sale of Alco.

Bev. Co-packs

§§102.07(a)(5),

108.035; Rule

45.120(c)

Unauthorized

Sale of Alco.

Bev. to a

Retailer

§§23.01(a)(2),

24.01(a)(2),

25.01(a)(1),

26.01(a), 69.01,

71.01.

Alco. bev. not

in tamper-proof

container

§§28.1001(a)(2)(

C), 32.155(a)(2);

Rule 41.16

Source Note: The provisions of this §34.10 adopted to be effective June 6, 2022, 47 TexReg 3242

§34.20 Attribution of Actions of Employee to License or Permit Holder

(a) A license or permit holder who claims that the actions of an employee are not attributable to the

license or permit holder under Code §106.14(a) must provide to the commission, not later than 10

days after receipt of an administrative notice of violation, an affidavit indicating that the license or

permit holder was in compliance with the requirements of Code §106.14(a) at the time of the

violation for which the administrative notice was issued. At a hearing in which the license or permit

holder claims the benefits of Code §106.14(a), the license or permit holder may be required to

present additional evidence to support such claim.

(b) If an employee performs an action described in paragraphs (1) or (2) of this subsection at a time

when the employee does not possess a currently valid seller server certificate, then the action of the

employee does not meet the requirements of Code §106.14(a)(2) and therefore shall be attributable to

the license or permit holder.

(1) The employee sells, serves, dispenses or delivers an alcoholic beverage to:

(A) a person who is not a member of a private club on the club premises;

(B) a minor; or

(2) The employee allows consumption of an alcoholic beverage by:

(A) a person who is not a member of a private club on the club premises;

(B) a minor; or

this subsection on three or more occasions within a 12-month period shall create a rebuttable

presumption that the license or permit holder has indirectly encouraged a violation of the law within

the meaning of Code §106.14(a)(3). The rebuttable presumption is created regardless of whether the

employee performing the action described in paragraph (1) or (2) of this subsection on a second or

subsequent occasion is the same person.

(1) An employee sold, served, dispensed or delivered an alcoholic beverage to:

(A) a person who is not a member of a private club on the club premises;

(B) a minor; or

(2) An employee allowed consumption of an alcoholic beverage by:

(A) a person who is not a member of a private club on the club premises;

(B) a minor; or

(d) For purposes of satisfying the condition precedent set forth in subsection (c) of this section, proof

shall be demonstrated by:

(1) producing final orders issued by the commission or a court of competent jurisdiction finding

that the license or permit holder violated Code §§2.02, 11.61(b)(14), 32.17(a)(1), 61.71(a)(6) or

106.13(a) on two past occasions; and

(2) establishing a prima facie case that an employee of the license or permit holder violated Code

§§2.02, 11.61(b)(14), 32.17(a)(1), 61.71(a)(6) or 106.13(a) on a third or subsequent occasion.

(e) For purposes of subsection (d) of this section, all incidents offered to satisfy the condition precedent

set forth in subsection (c) of this section shall be for the same type of offense and shall have occurred

within a 12-month period as calculated from the dates the incidents occurred.

(f) There is a rebuttable presumption that a license or permit holder has indirectly encouraged a

violation of the law within the meaning of Code §106.14(a)(3) if the commission presents sufficient

proof that a license or permit holder fails to meet any of the standards set forth in paragraphs (1) - (5)

of this subsection.

(1) The license or permit holder requires each employee to present a seller server certificate within

30 days of his initial employment date.

(2) The license or permit holder requires each employee to maintain a currently valid seller server

certificate.

(3) The license or permit holder adopts written policies and procedures that are designed to prevent,

and that affirm a strong commitment by the license or permit holder to prohibit:

(A) the sale, service, dispensation or delivery of an alcoholic beverage to:

(i) a person who is not a member of a private club on the club premises;

(ii) a minor; or

(iii) an intoxicated person; and

(B) the consumption of an alcoholic beverage by:

(i) a person who is not a member of a private club on the club premises;

(ii) a minor; or

(iii) an intoxicated person.

(4) The license or permit holder ensures that all employees have read and understood the license or

permit holder's policies and procedures described in paragraph (3) of this subsection.

(5) The license or permit holder maintains records for at least one year after the date employment

was terminated that show that each employee read and understood the license or permit holder's

current policies and procedures described in paragraph (3) of this subsection.

(g) For purposes of this section, "employee" includes all persons paid by a license or permit holder to

sell, serve, dispense, or deliver alcoholic beverages or to immediately manage, direct, supervise or

control the sale or service of alcoholic beverages.

(h) At a hearing in which the license or permit holder asserts the affirmative defense established in Code

§106.14(a), the commission may present evidence to establish a rebuttable presumption under this

section. If the evidence is sufficient to establish a prima facie case, the burden of persuasion in the

proceeding shifts to the license or permit holder to show that it has not indirectly encouraged a

violation of the law within the meaning of Code §106.14(a)(3).

(i) The rebuttable presumptions authorized in this section are not the exclusive means by which the

commission may establish that a license or permit holder has indirectly encouraged a violation of the

law within the meaning of Code §106.14(a)(3).

(j) This section applies to contested cases under the Administrative Procedure Act and to complaints or

violations referred to the legal division of the commission for resolution.

Source Note: The provisions of this §34.20 adopted to be effective June 6, 2022, 47 TexReg 3242

§34.21 Mandatory Participation in Seller Server Certification

(a) After notice and an opportunity for hearing, the commission may require by written order that a

licensee or permittee require all of its employees to acquire and maintain seller server certification

under Chapter 50 of this title, pursuant to Code §106.14. Such requirement may be imposed on a

licensee or permittee that has:

(1) violated a provision of the code or rules relating to the sale, service, dispensation or delivery of

alcoholic beverages to a minor or intoxicated person more than once in a twelve month period;

(2) been found, by administrative order or court of competent jurisdiction, to have engaged in

conduct directly or indirectly encouraging violations of law within the meaning of Code

§106.14(a)(3).

(b) An order issued under this section shall remain in effect until such time as the licensee or permittee

has established 24 continuous months of operation from the date of the last violation without

violation of a provision of the code or rules relating to the sale, service, dispensation or delivery of

alcoholic beverages to a minor or intoxicated person.

section must request the hearing within 10 days of receipt of notice from the commission.

(d) This section applies to contested cases under the Administrative Procedure Act and to complaints or

violations referred to the legal division of the commission for resolution.

Source Note: The provisions of this §34.21 adopted to be effective June 6, 2022, 47 TexReg 3242

§34.22 Liability for Actions of Alcohol Delivery Drivers

(a) These terms, when used in this rule, have the following meanings:

(1) Delivery driver--any person engaged by a consumer delivery permit holder as an alcohol

delivery driver including, but not limited to those hired directly, hired indirectly, paid, unpaid, or

contracted, whether or not in a supervisory role.

(2) Delivery driver training program--a commission-approved alcohol delivery driver certification

program under chapter 50 of this title, established pursuant to Code §57.09.

(b) A delivery driver shall not deliver an alcoholic beverage in violation of Chapter 57 of the Code.

attributable to the holder of a consumer delivery permit if the permit holder has not directly or

indirectly encouraged the delivery driver to violate the law and the delivery driver:

(1) at the time the delivery occurred, held a valid certification from a delivery driver training

program; or

(2) completed the delivery using an alcohol delivery compliance software application that meets the

requirements established under Code §57.09.

(d) The holder of a consumer delivery permit may establish a rebuttable presumption that it has not

directly or indirectly encouraged the delivery driver to violate Chapter 57 of the Code by providing

proof that:

(1) each of the permit holder's delivery drivers engaged by the permit holder during the twenty-four

months prior to the violation have actually attended a delivery driver training program and

maintained alcohol delivery driver training certification for the entire duration of their

engagement by the permit holder as a delivery driver;

(2) prior to the violation, the permit holder adopted written policies and procedures designed to

prevent, and that affirm a strong commitment by the permit holder to prohibit violations of

Chapter 57 of the Alcoholic Beverage Code; and

(3) all delivery drivers have read and understood such policies and procedures.

(e) The consumer delivery permit holder is not entitled to the rebuttable presumption in subsection (d) of

this section if the commission provides proof of violations of Chapter 57 of the Code on two or more

prior occasions by any delivery driver making a delivery of alcohol on the permit holder's behalf in

the twelve months preceding the current violation, or on three or more prior occasions by any

delivery driver making a delivery of alcohol on the permit holder's behalf in the twenty-four months

preceding the current violation.

(f) Criminal Negligence.

(1) Regardless of whether the permit holder has directly or indirectly encouraged the delivery

driver to violate Code Chapter 57, the commission or executive director may suspend a

consumer delivery permit as prescribed by Code §57.08 if, after notice and hearing, a court or

administrative hearing officer finds that a delivery driver made a delivery on the permit holder's

behalf with criminal negligence.

(2) It is a rebuttable presumption that delivery of an alcoholic beverage to a minor or an intoxicated

person was not made with criminal negligence if the delivery driver:

(A) at the time of the delivery held a valid certification from a delivery driver training program;

and

(B) completed the delivery as a result of a technical malfunction of an alcohol delivery

compliance software application that otherwise meets the requirements of §50.33 of this

title (relating to Alcohol Delivery Compliance Software Applications).

Source Note: The provisions of this §34.22 adopted to be effective June 6, 2022, 47 TexReg 3242

Chapter 35: Enforcement

§35.1 Reporting a Breach of the Peace

(a) This section relates to Alcoholic Beverage Code §§11.61(b)(21), 22.12, 24.11, 25.04(b), 26.03(b),

28.11, 32.24, 61.71(a)(30), 69.13, and 71.09.

(b) Except as provided in this subsection, a licensee or permittee shall report to the commission a breach

of the peace on a licensed premises as defined by §11.49 of the Code. The licensee or permittee shall

make the report as soon as possible, but not later than five calendar days after the incident. If the

incident is a shooting, stabbing or murder, or an incident involving serious bodily injury, the licensee

or permittee shall report the breach of the peace not later than 24 hours from the time of the incident.

section, the report required by this section shall be made:

(1) in person at any commission office;

(2) through the commission's website;

(3) by e-mail to breacho[email protected]exas.gov; or

(4) through the commission's internet-based reporting system.

(d) The executive director or the executive director's designee may require, in writing, that a licensee or

permittee make any reports required by this section in a specific manner as instructed, if the licensee

or permittee has previously violated Alcoholic Beverage Code §11.61(b)(21) or §61.71(a)(30).

(e) At a minimum, the report required by this section shall include the information required in

paragraphs (1) - (9) of this subsection, but may include other information the person making the

report wishes to include:

(1) the date and time of the report;

(2) the date and time of the incident being reported;

(3) the trade name of the licensed premises where the incident occurred;

(4) the name and physical location of the licensed premises where the incident occurred, including

the city (if applicable) and county;

(5) the name of the person filing the report, that person's relationship to the holder of the license or

permit, and contact information for that person;

(6) if different from the information given in response to paragraph (5) of this subsection, the name

of the person designated by the holder of the license or permit to answer questions from the

commission about the incident, that person's relationship to the license or permit holder, and

contact information for that person;

(7) a brief description of the incident;

(8) the name of all law enforcement agencies who were called or otherwise appeared in connection

with the incident, and the names of the officers involved (if known); and

(9) the names and contact information of any witnesses to the incident (if known).

(f) For purposes of subsection (b) of this section and subject to the provisions of subsection (g) of this

section, a reportable "breach of the peace" occurs when law enforcement or emergency medical

services personnel respond to the licensed premises or premises under the control of a license or

permit holder, or when a disturbance is created by a person on the licensed premises or on premises

under the control of a license or permit holder and the incident involves:

(1) shooting, stabbing or murdering a person;

(2) causing bodily injury to another person;

(3) threatening another person with a weapon;

(4) discharging a firearm on the licensed premises; or

(5) destroying the licensee's or permittee's property, if the incident is reported by the licensee or

permittee to a law enforcement agency.

(g) For purposes of this section:

(1) conduct identified in subsection (f) of this section (other than a shooting, stabbing or murder, or

an incident involving serious bodily injury) creates a "disturbance," and therefore is a reportable

breach of the peace, when it:

(A) occurs at a time when the licensee or permittee, or any person allowed by the licensee or

permittee, is on the licensed premises; and

(B) interferes with, interrupts, or intrudes upon the operation or management of the licensed

premises;

(2) a shooting, stabbing or murder, or an incident involving serious bodily injury, on the licensed

premises is always a "disturbance," and therefore is always a reportable breach of the peace;

(3) a "licensed premises" is as defined in Alcoholic Beverage Code §11.49;

(4) a "permittee" is as defined in Alcoholic Beverage Code §1.04(11); and

(5) a "licensee" is as defined in Alcoholic Beverage Code §1.04(16).

(h) A license or permit holder may not be held administratively liable for failing to file a report or failing

to file a timely report under this section if it can demonstrate that it had no knowledge, nor in the

exercise of reasonable care should have had knowledge, of the alleged breach of peace on the

licensed premises.

(i) A license or permit holder may not be held administratively liable for failing to file a report or failing

to file a timely report under this section if the alleged breach of the peace:

(1) did not occur on the license or permit holder's licensed premises; and

(2) occurred at a time that the license or permit holder's licensed premises was closed to the public.

Source Note: The provisions of this §35.1 adopted to be effective February 13, 2023, 48 TexReg 660

§35.2 Physical Inspection of Licensed and Permitted Premises

(a) This section implements Alcoholic Beverage Code §5.361(a-2)(2).

(b) Notwithstanding §35.3(d) of this title, the commission will physically inspect each in-state licensed

or permitted premises at least once every eight (8) years.

Source Note: The provisions of this §35.2 adopted to be effective June 6, 2022, 47 TexReg 3244

§35.3 Risk-Based Inspection of Licensed and Permitted Premises

(a) This rule implements Alcoholic Beverage Code §5.361(a-1) and (a-2)(1), which require the

commission to develop by rule a plan for inspecting permittees and licensees using a risk-based

approach that prioritizes public safety.

(b) The commission will classify each licensed or permitted premises as priority or non-priority, for

inspection purposes. In classifying a premises, the commission may consider factors including, but

not limited to:

(1) the type of license or permit held;

(2) the location of the licensee's or permittee's premises;

(3) previous public safety violations committed by the premises;

(4) any breaches of the peace occurring at the licensee's or permittee's premises;

(5) the licensee's or permittee's record of compliance with the Alcoholic Beverage Code and these

rules;

(6) any public safety-related complaints received by the commission against the premises;

(7) whether the premises has regularly completed and submitted the report required by §41.12 of

this title, concerning Compliance Reporting by License and Permit Holders; and

(8) whether the premises is a "priority location" for enforcement purposes under subsection (c) of

this section.

(1) any public safety-related violations have occurred on the premises during the past six months;

(2) the commission is currently investigating any allegations of public safety violations at the

premises;

(3) the premises has been licensed for less than two years for off-premises consumption, and has

not been the target of any underage compliance operation or other public safety operation; or

(4) the premises has been licensed for less than two years for on-premises consumption, holds a late

hours certificate, and has not been the target of an underage compliance operation or other

public safety operation.

(d) It is the commission's goal to inspect a licensed or permitted premises classified as:

(1) priority not less than once every six months; or

(2) non-priority on an as-needed basis, but not less than required by §35.2 of this title.

(e) Inspections under this section may be virtual, physical, or a combination of both.

Source Note: The provisions of this §35.3 adopted to be effective June 6, 2022, 47 TexReg 3244

§35.4 Possession and Sale of Firearms on Licensed Premises

(a) Gun Shows. A license or permit holder may use or allow a portion of the grounds, buildings,

vehicles, and appurtenances of the licensed or permitted premises for the use of gun shows if the

license or permit holder:

(1) suspends all sales, complimentary offers, and consumption of all alcoholic beverages during the

gun show including time required for preparation or set-up and dismantling of the gun show;

and

(2) operates its licensed or permitted premises at a facility regularly used for special functions,

directly or indirectly, under a lease, concession, or similar agreement from a governmental

entity or legally formed and duly recognized civic, religious, charitable, fraternal, or veterans'

organization.

(b) Off-Premises Retailers. The holder of a retail dealer's off-premises license, a wine and malt beverage

retailer's off-premises permit, a wine only package store permit, or package store permit may allow

the sale or offer for sale firearms at the licensed or permitted location if:

(1) alcoholic beverages are not being displayed or sold in any area where firearms are readily

accessible or can be viewed; and

(2) the firearms are secure from the general public and are only accessible by employees of the

person or entity offering the firearms for sale.

premises consumption if the business derives 51 percent or more of its income from the sale or

service of alcoholic beverages for on-premises consumption only if:

(1) the firearm is lawfully in the possession of the permittee/licensee or another person controlling

the premises;

(2) the firearm is:

(A) possessed for ceremonial and/or display purposes;

(B) disabled from use as a firearm while on the licensed premises;

(D) remains in the possession, control, or supervision of person or persons acting on behalf of

the charitable organization sponsoring the fundraising activity;

(3) firearms are used in a historical reenactment pursuant to §11.61(i) of the Texas Alcoholic

Beverage Code and:

(A) the firearms are of the type, caliber, or gauge common to the era and event being reenacted;

(B) such firearms remain in the possession of members of the cast, production company,

employees of the permit holder, or others directly involved in the reenactment and are not

left unattended or accessible to unauthorized persons at all times such firearms are on the

licensed premises;

firearms may be loaded with blank ammunition firing no projectile;

(D) such firearms are handled in a safe manner so as to present no threat of injury to audience

members or others because of discharge or other use;

(E) persons engaged in reenactments maintain a minimum of 15 feet intervals between those

armed with pistols and all others, and 40 feet between those armed with shotguns and all

others;

(F) the permittee adopts safety rules to be employed during the reenactment and such rules are

read and signed by all employees of the permit holder involved in the reenactment prior to

the beginning of the event; and

(G) the permittee provides the relevant Commission Regional Office notice of the reenactment

at least three business days before the event.

Source Note: The provisions of this §35.4 adopted to be effective June 6, 2022, 47 TexReg 3244

Chapter 37: Legal

SUBCHAPTER A: Rules of Practice

§37.2 Contested Case

(a) This rule relates to any contested case under the Alcoholic Beverage Code (Code) where notice and

hearing are required, or an opportunity for public participation is provided under the Code.

(b) All notices and pleadings in a contested case shall comply with the provisions of Texas Government

Code, Chapter 2001, Subchapters C, D, and F and the rules of procedure adopted by the State Office

of Administrative Hearings in Title 1, Texas Administrative Code, Chapter 155.

Source Note: The provisions of this §37.2 adopted to be effective March 26, 2008, 33 TexReg 2535

§37.5 Determining Population

For purposes of any provision of the Alcoholic Beverage Code or the commission's rules that refer to

population, it shall be determined by the most recent federal decennial census.

Source Note: The provisions of this §37.5 adopted to be effective November 17, 2005, 30 TexReg 7469;

amended to be effective June 18, 2015, 40 TexReg 3645

Chapter 39: Port of Entry

§39.1 Personal Importation

(a) This chapter applies to alcoholic beverages imported into this state for personal use under the

authority of Alcoholic Beverage Code §§107.07, 201.71 and 201.81.

(b) All alcoholic beverage containers imported into Texas for personal consumption are subject to the

applicable state tax and administrative fees. These administrative fees shall be included in the posted

tax rates.

stamp" means a written acknowledgement, which may be an electronic notification, documenting

that the State of Texas has received payment of fees and taxes.

(d) Nothing in this Chapter shall be construed to alter the personal importation limits set in Code

§107.07(a).

Source Note: The provisions of this §39.1 adopted to be effective January 1, 1976; amended to be

effective August 31, 1995, 20 TexReg 6323; amended to be effective August 17, 2016, 41 TexReg 6000;

amended to be effective April 12, 2022, 47 TexReg 1887

§39.2 Calculation of Taxes Due

(a) Alcoholic beverages may be imported for personal use are subject to the following tax rates set in the

Code:

(1) Distilled spirits: $2.40 per gallon;

(2) Vinous Liquor containing less than 14 percent alcohol by volume: $0.204 per gallon;

(3) Vinous Liquor containing 14 percent or more of alcohol by volume: $0.0408 per gallon;

(4) Malt Beverages: $6.00 per 31-gallon barrel, ($0.194 per gallon); and

(5) Artificially carbonated and natural sparkling vinous liquor: $0.516 per gallon.

(b) If the alcoholic beverage is in metric containers, the amount of tax due is determined by converting

the metric amount into the equivalent amount in gallons and applying the appropriate tax rate, then

rounding up to the nearest quarter of a dollar, as authorized by Code §107.07(g).

Source Note: The provisions of this §39.2 adopted to be effective April 12, 2022, 47 TexReg 1887

§39.3 Assessment of Administrative Fee

(a) The commission shall assess a $3.00 administrative fee for each alcoholic beverage container

imported into the State of Texas for personal consumption.

(b) For purposes of this chapter, each of the following is counted as one "container":

(1) For wine: 750ml or one gallon;

(2) For distilled spirits: 1 to 4 containers each containing less than 50mL; Half Pint/200ml,

Pint/500ml, Fifth/750ml, Quart/1 liter, Half Gallon/1.75 liters, 1 Gallon/3.79 liters; and

(3) For malt beverages: 1 to 24 twelve oz. containers or up to 288 oz. regardless of container size.

subsection (b) of this section. The officer shall base the fee upon the officer's estimation of the

volume of the container.

Source Note: The provisions of this §39.3 adopted to be effective April 12, 2022, 47 TexReg 1887

§39.4 Table of Taxes Due for Liquor

A table showing the amount of tax due on various types of liquor in metric containers shall be

prominently displayed at each port of entry and made available on the commission's website.

Source Note: The provisions of this §39.4 adopted to be effective April 12, 2022, 47 TexReg 1887

§39.5 Alcoholic Beverages Not Permitted for Personal Importation

(a) The following alcoholic beverages are not permitted to be imported into the State of Texas for

personal consumption:

(1) Any amount of alcoholic beverages in excess of the statutory limitations of Code §107.07;

(2) Illicit beverages, as defined by Code §1.04;

(3) Any alcoholic beverage that the commission's regulatory compliance officer determines may be

injurious to public health or not meet sanitary conditions, as authorized under §5.38; and

(4) Any alcoholic beverage in the possession of a minor, defined in Code §106.01 as a person under

the age of 21.

(b) A person presenting for importation alcoholic beverages not permitted to be brought into the State of

Texas at a port of entry shall:

(1) prior to entering the state, destroy the alcoholic beverages in such a manner that they are

unrecoverable;

(2) voluntarily surrender the alcoholic beverages to authorized personnel at the port of entry, who

shall subsequently destroy the alcoholic beverages in a manner that they are unrecoverable; or

(3) not enter the State of Texas.

Source Note: The provisions of this §39.5 adopted to be effective April 12, 2022, 47 TexReg 1887

Chapter 41: Auditing

SUBCHAPTER A: General Provisions

§41.1 Scope & Applicability

(a) This chapter relates to and implements chapters 201, 202, and 203 of the Alcoholic Beverage Code.

(b) The rules in this chapter apply to regulated entities required to keep records and/or file reports for

taxation purposes.

Source Note: The provisions of this §41.1 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.2 Timely Filing of Reports

With respect to all tax reports required under the Texas Alcoholic Beverage Code, Chapter 201, or this

chapter, it is a violation of this rule if a report or a payment is not received or postmarked by 11:59 p.m.

on the date that it is due.

Source Note: The provisions of this §41.2 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.3 Required Signature

Each report required by this chapter shall be signed and affirmed to be true and correct by the permittee or

licensee or a duly authorized representative.

Source Note: The provisions of this §41.3 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.4 Report and Record Retention

(a) The license or permit holder must keep all records required by the Alcoholic Beverage Code or by

rule and an exact copy of each report required by this chapter for a period of at least two years,

unless a different period is specified in the Alcoholic Beverage Code or in another rule.

(b) The license or permit holder must keep all records and reports available for inspection by the

commission or its authorized representatives during reasonable office hours.

Source Note: The provisions of this §41.4 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.5 Records and Invoice Requirements

(a) An invoice that is required by the Alcoholic Beverage Code or by rule for any alcoholic beverage

must have the exact trade name and license or permit number of the issuing licensee or permittee and

the receiving licensee or permittee, if any.

(b) A licensee or permittee who owns more than one business operating under separate licenses or

permits or a single business operating at two or more locations under separate licenses or permits

shall keep separate records for each such business or place of business.

records for the alcoholic beverage business that are required by the Alcoholic Beverage Code or by

rule separate and apart from any and all other records.

(d) Making a false entry or any alteration in records that are required by the Alcoholic Beverage Code or

by rule is a violation of this section.

Source Note: The provisions of this §41.5 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.6 Failure to Make Reports and Records

Failing to make any record or report required by this chapter, or failing to make any entry or entries on

any record or report required by this chapter at the time or in the place or manner required, is a violation

of this section.

Source Note: The provisions of this §41.6 adopted to be effective December 6, 2021, 46 TexReg 8246

SUBCHAPTER B: Recordkeeping & Reports

§41.11 Basic General Records Required

(a) Except as provided by subsections (b) and (c) of this section, a brewer, distiller, winery, rectifier,

wholesaler, Class B wholesaler, package store, brewpub, or distributor must keep at each place of

business, for a period of two years, for inspection at all times by the commission or its authorized

representatives:

(1) a complete record of all alcoholic beverages manufactured, distilled, sold, purchased, received,

blended, or bottled, including all invoices, bills of lading, way bills, freight bills, express

receipts, and all other shipping records furnished by the carrier and the seller or shipper of the

alcoholic beverages, including, at a minimum:

(A) the name and address of the person from whom alcoholic beverages were purchased;

(B) the name and address of the person receiving alcoholic beverages;

(D) the address at which the alcoholic beverages were received;

(E) the quantity and kind of alcoholic beverage received; and

(F) except as provided in subsection (b) of this section, inventories on the last day of each

month, showing the quantities, sizes, brands, and taxable class of beverages on hand; and

(2) a complete record of each sale or distribution of alcoholic beverages, upon an invoice to be

furnished by the licensee or permittee.

(b) Package store permittees are not required to keep inventories of alcoholic beverages on hand on the

last day of each month under subsection (a)(1)(F) of this section.

section only as to wine purchases.

(d) Invoices must:

(1) be printed, numbered, and issued in consecutive order;

(2) show the date of sale or distribution, the purchaser's tradename, purchaser's license or permit

number, purchaser's address, the means of delivery, the name and permit number of the carrier

(if delivered by common carrier), and the quantity, price, container size and brand name of

alcoholic beverages sold;

(3) be supported by the receipts or other records furnished by the carrier of such alcoholic

beverages; and

(4) include the alcohol percentage by volume or an approved symbol or statement in the product

description for malt beverages.

(e) The licensee or permittee making the sale shall keep each invoice or a copy thereof and shall deliver

an invoice to the purchaser.

(f) Each purchaser and seller of tax-free alcohol shall keep for inspection of the commission or its

authorized representatives all invoices of tax-free alcohol for a period of at least two years.

(g) License and permit holders selling alcoholic beverages to-go under Alcoholic Beverage Code

Chapter 28 or 32 shall maintain receipts for those sales for a period of at least six months.

Source Note: The provisions of this §41.11 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.12 Compliance Reporting by License and Permit Holders

(a) This rule implements Alcoholic Beverage Code §§5.31 and 5.361. The purpose of this rule is to

allow the commission to better leverage resources in meeting its charge to inspect, supervise, and

regulate members of the alcoholic beverage industry; reduce unnecessary physical inspections of

industry locations; and use automation to better and more efficiently protect public safety and serve

the alcoholic beverage industry.

(b) Each permittee and licensee must prepare and file an automated compliance report with the

commission as instructed by the commission. The commission may require that the report be filed

using a specified digital application.

compliance report. The license or permit holder will have 90 days from the date of notification to file

the report.

(d) The commission may issue a written warning to a permittee or licensee who fails to file the

mandated compliance report within 90 days of being notified by the commission. The commission

may initiate an administrative case to cancel or suspend the license or permit of any permittee or

licensee who does not file the compliance report within 30 days following issuance of the written

warning.

Source Note: The provisions of this §41.12 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.13 Carrier Report

(a) Each holder of a carrier permit under Chapter 41 of the Alcoholic Beverage Code shall make a

monthly report to the commission on forms prescribed by the executive director.

(b) The permittee shall file the report with the commission on or before the 15th day of the month

following the calendar month for which the report is made.

carrier in interstate commerce during the month for which the report is made, and shall state the date

of shipment, consignor, point of origin, consignee, destination, freight bill number, number of

packages, kind of commodity shipped, and the date of delivery, and shall give all information

requested by the form. If no shipments were transported, the permittee shall submit a report stating

so.

Source Note: The provisions of this §41.13 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.14 Transfer of Alcoholic Beverages by Package Stores and Wine-Only Package Stores

(a) This rule relates to transportation of alcoholic beverages under the authority of §§22.08, 23.04 or

24.04 of the Alcoholic Beverage Code.

(b) Only a holder of a package store permit, wine-only package store permit, local distributor's permit,

or a carrier's permit may transport alcoholic beverages under the authority of §§22.08, 23.04 or 24.04

of the Alcoholic Beverage Code.

beverages governed by this rule to a permitted location shall prepare an invoice in duplicate. The

invoice shall show:

(1) the date of the shipment;

(2) the quantity, container size and brands of alcoholic beverages shipped, and if sold, a price

extension for each line item listed on the invoice; and

(3) the store name and address of the origination and destination point of the shipment.

(d) The purchaser must sign the invoice acknowledging receipt of the alcoholic beverages.

(e) The original of the invoice mandated by this rule shall be maintained at the originating store for two

years after the date of shipment. The copy of the invoice shall accompany the shipment and be

maintained at the receiving store for two years after the date of shipment.

(f) Shipments of alcoholic beverages governed by this rule may not be transported outside the county in

which the shipment originated and must be transported by the most direct practical route from point

of origination to point of destination.

(g) Shipments made by local distributor permittees under the authority of §23.04 of the Alcoholic

Beverage Code are subject to the restrictions expressed in §102.56(d) of the code.

Source Note: The provisions of this §41.14 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.15 Transportation of Imported Alcoholic Beverages

(a) This rule relates to alcoholic beverages imported into the state under the authority of §§14.071,

16.10, 19.06, 20.04, 41.01(a), 62.15, 63.01, 64.10, and 66.01 of the Alcoholic Beverage Code.

(b) Alcoholic beverages imported into the state for resale may only be transported by the holder of a

license or permit authorizing transport or a carrier's permit. Shipments of alcoholic beverages into

the state must be accompanied by an invoice.

permittees shall cause the invoice covering that shipment of alcoholic beverages to show delivery to

the authorized license or permit holder.

(d) All license and permit holders subject to this section shall transport alcoholic beverages by the most

direct route practical to the place of destination.

Source Note: The provisions of this §41.15 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.16 Tamp er-proof Containers

(a) This rule relates to Alcoholic Beverage Code §§28.1001 and 32.155.

(b) A "tamper-proof container" means a container that, once sealed, clearly shows whether it has been

opened. The term includes a closed cup or similar container that is:

(1) placed into a bag that has been sealed with a zip tie or staple;

(2) sealed with shrink wrap or a similar seal;

(3) sealed with a tamper-evident adhesive tape or seal having one or more indicators or barriers to

entry which, if breached or missing, can reasonably be expected to provide visible evidence that

tampering has occurred; or

(4) sealed mechanically on-premises with a can seamer.

(b) of this section, are not sufficient to meet the standard for a tamper-proof container:

(1) freezing the beverage, putting a lid on it, and leaving the straw out of the lid's straw hole; and

(2) sealing with a sticker or adhesive tape that is not tamper-evident.

(d) The list in subsection (c) of this section is non-exclusive.

Source Note: The provisions of this §41.16 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.17 Bottle Capping Devices

No member of the retail or wholesale tiers may, for unlawful purposes, possess on the licensed premises a

device used for capping or recapping of beverage bottles.

Source Note: The provisions of this §41.17 adopted to be effective June 6, 2022, 47 TexReg 3247

§41.18 Vehicle Identification and Liability

(a) This rule applies to vehicles used in the alcoholic beverage business by license and permit holders

operating under the authority of §§14.071, 19.06, 20.04, 22.08, 24.04, 62.15, or 64.10 of the

Alcoholic Beverage Code.

(b) Each vehicle subject to this section shall have the correct TABC license or permit number painted or

printed or attached in a conspicuous place on the vehicle, with each character being not less than 1.5

inches in height. These characters shall never be covered from public view when the vehicle is being

used in the alcoholic beverage business.

liability insurance for bodily injury and property damage covering every registered vehicle whose

gross weight, registered weight, or gross-weight rating exceeds 26,000 pounds.

(d) For each vehicle subject to this section or operating pursuant to §16.10 of the Alcoholic Beverage

Code, the license or permit holder shall file with the commission an affidavit stating that the license

or permit holder has knowledge of, and will conduct operations in accordance with, all federal and

state safety regulations, and that it is in compliance with the requirements for insurance coverage

under this section.

(e) For each vehicle subject to this section, the license or permit holder shall maintain proof of insurance

in the licensed or permitted vehicle at all times.

Source Note: The provisions of this §41.18 adopted to be effective June 6, 2022, 47 TexReg 3247

§41.19 Regional Forwarding Centers

(a) This rule relates to Alcoholic Beverage Code, §§37.01(a)(2), 62.08, and 63.01.

(b) Members of the manufacturing tier transporting alcoholic beverages into the state, or from point to

point within the state under the authority of Alcoholic Beverage Code §§37.01(a)(2), 62.08(a), or

63.01, may temporarily hold such alcoholic beverages in a regional forwarding center, subject to the

following conditions:

(1) A regional forwarding center is a facility wherein alcoholic beverages may be held under the

control of the manufacturing tier member responsible for shipping the alcoholic beverages.

(2) The regional forwarding center may be operated by a third party who acts as the agent of the

manufacturing tier member in arranging for interstate or intrastate shipments of alcoholic

beverages to licensees and permittees authorized to receive such beverages or for shipment to

locations outside the state.

(3) No member of the wholesale or retail tiers of the alcoholic beverage industry may, directly or

indirectly, hold any interest in or right of operation of a regional forwarding center.

(4) No alcoholic beverages may be sold to a person or entity from a regional forwarding center. For

purposes of this rule, a “sale” occurs when an order is taken and/or payment is made.

(5) No member of the retail tier may take delivery of alcoholic beverages at a regional forwarding

center.

(6) A regional forwarding center must be located in an area that is wet for the type of alcoholic

beverages held therein.

(7) A licensee or permittee, by using a regional forwarding center under the authority of this rule,

consents to inspection of such facility by the commission, its agents or employees, or any peace

officer, to the same extent as consent is given for inspection of licensed premises by §101.04 of

the Alcoholic Beverage Code.

maintain a record at the regional forwarding center with information relating to specific shipments

entered into the record on the day the shipment is received or sent. The record shall show the:

(1) invoice number for each receipt and transfer;

(2) date for each receipt and transfer;

(3) point of origin for each receipt;

(4) destination (name and address) for each transfer;

(5) type of alcoholic beverages and total gallons for each receipt and transfer; and

(6) name of the carrier making delivery and transfer, and its TABC license or permit number if one

is required by the Alcoholic Beverage Code.

(d) Licensees and permittees using regional forwarding centers under the authority of this rule shall pay

an annual fee to the commission pursuant to §33.23 of this title.

(e) All records required by this section shall be kept for at least two years.

Source Note: The provisions of this §41.19 adopted to be effective June 6, 2022, 47 TexReg 3247

§41.20 Warehouse Registration

(a) Licensees required by Code §62.08 to register a warehouse with the commission shall provide the

warehouse’s address and all other information required on a form prescribed by the commission.

Should any information required by the form change, a licensee is required to submit a new form

reflecting those changes within 30 days. A licensee may not operate a warehouse until the

registration form is received by the commission’s Licensing Division.

(b) A registered warehouse is a place of business of the license holder for purposes of §41.5 and §41.11

of this title.

Source Note: The provisions of this §41.20 adopted to be effective June 6, 2022, 47 TexReg 3247

§41.21 Bonded Warehouse Report

(a) Each holder of a bonded warehouse permit shall make a monthly report to the commission on forms

prescribed by the executive director.

(b) The report shall:

(1) state the name, address, and permit number of the warehouse;

(2) state the name, address, and permit number of each customer storing liquor;

(3) show monthly opening inventory receipts, withdrawals, and closing inventory in gallons for

each class of liquor;

(4) affirm that the permittee is in compliance with Alcoholic Beverage Code §46.03, which requires

the holder of a bonded warehouse permit to derive at least 50 percent of its gross revenue in a

bona fide manner during each three month period from the storage of goods or merchandise

other than liquor; and

(5) be signed by the custodian of the bonded warehouse.

day of the month following the

calendar month for which the report is made.

(d) A holder of a bonded warehouse permit may only store or offer to store liquor in full and unbroken

case lots.

(e) Except as provided in this subsection, a holder of a bonded warehouse permit may only allow the

withdrawal of liquor in full and unbroken case lots. When actual breakage occurs in a bonded

warehouse which results in actual loss, the holder of a bonded warehouse permit may allow

withdrawal in partial or broken case lots if the bonded warehouse permit holder executes duplicate

affidavits documenting the actual breakage. The bonded warehouse permit holder shall retain one

such affidavit on file and submit the other affidavit with the monthly report required by this section.

Source Note: The provisions of this §41.21 adopted to be effective June 6, 2022, 47 TexReg 3247

§41.22 Record Requirements: Export

No person shall export any alcoholic beverages in any manner except in compliance with the following:

(1) Permittees authorized to export alcoholic beverages shall maintain copies of billing invoices and

shipping documents to support any export out of the State of Texas. Supporting documentation

shall include an order signed by the purchaser of alcoholic beverages or, in case of return to a

distillery, brewery, or winery, a letter of authority.

(2) The alcoholic beverages may then be delivered to a common carrier holding a carrier’s permit,

or if the permittee is authorized under its permit to transport alcoholic beverages in vehicles

owned or leased by the permittee, such alcoholic beverages may be transported and exported in

vehicles registered with the commission by the permittee.

(3) A license or permit holder exporting under this section must obtain proper proof from the

purchaser that the alcoholic beverages were sold or disposed of outside of this state and keep

such records on file for inspection or audit by any representative of the commission for at least

two years.

Source Note: The provisions of this §41.22 adopted to be effective June 6, 2022, 47 TexReg 3247

§41.23 Sale and Delivery of Malt Beverages to Retail Premises and Private Clubs

(a) Malt beverages intended to be delivered in sales transactions consummated at a licensed retailer’s

place of business or at a private club located in a wet area may be transported through dry areas in

vehicles owned or leased and operated by one of these authorized sellers, who are authorized to sell

to retailers or private clubs located in wet areas: the holder of a brewer’s self-distribution license; the

holder of any type of distributor license; or the holder of a brewpub license. The person directly in

charge of the vehicle used in such transportation must possess a written statement furnished and

signed by the authorized seller showing the quantity of malt beverages so delivered to such person,

the origin thereof, and the fact that said malt beverage is intended for delivery only upon any sale

that may be consummated by such person acting as agent for the authorized seller at the place of

business of a licensed retail dealer or a private club located in a wet area.

(b) A person into whose charge malt beverages are delivered as provided in this section and who is

delivering and obtaining payment for any such malt beverages at a licensed retailer’s place of

business or at a private club located in a wet area must at that time provide a sales invoice for such

malt beverages that must be signed by the purchaser of the malt beverages. The invoice must show

the purchaser, the quantity of each type of container sold, and the price. A copy of such invoice shall

be furnished to the purchaser at the time of sale, and a copy of the signed sales invoice must be

furnished to the authorized seller of such malt beverages within 24 hours from the time of its

delivery.

signed sales invoices required by subsection (b) of this section for any such malt beverage that is not

in the person’s possession. Records pertaining to any such shipment must be shown to any

representative of the commission or any peace officer upon demand.

Source Note: The provisions of this §41.23 adopted to be effective June 6, 2022, 47 TexReg 3247

§41.24 Providing Retailer Samples: Nonresident Seller

(a) A holder of a Nonresident Seller’s Permit must purchase samples from a package store permit or

wholesale permit holder.

(b) Samples purchased by a nonresident seller from a wholesaler’s inventory are considered “first sale”

for purposes of taxation under Alcoholic Beverage Code §201.03. The wholesaler shall remit excise

taxes for samples purchased not later than the 15

day of the month following the month in which

occurs the “first sale.”

Source Note: The provisions of this §41.24 adopted to be effective June 6, 2022, 47 TexReg 3247

§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:

(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 15

day of the month following the

month in which occurs the “first sale.”

Source Note: The provisions of this §41.25 adopted to be effective June 6, 2022, 47 TexReg 3247;

amended to be effective February 12, 2024, 49 TexReg 659

§41.26 Nonresident Seller’s Report

(a) Each holder of a nonresident seller’s permit shall make a monthly report to the commission on forms

prescribed or approved by the executive director or the executive director’s designee.

(b) The report shall be electronically submitted or, if mailed, postmarked on or before the 15

day of the

month following the calendar month for which the report is made.

support each entry in the report. A legible copy of each invoice must show the:

(1) invoice number and invoice date;

(2) trade name, permit number, and address of the seller;

(3) trade name, permit number, and shipping address of the purchaser;

(4) brand name, type, number and size of containers, total cases, unit or line item extension price,

and total sales price;

(5) origin of shipment and shipping date; and

(6) total by taxable class gallons of each class of liquor.

(d) As long as a nonresident seller’s permit remains active, the monthly report required by this section

must be filed each month even if no sales or shipments have been made.

Source Note: The provisions of this §41.26 adopted to be effective June 6, 2022, 47 TexReg 3247

§41.27 Nonresident Brewer’s Report

(a) Each holder of a nonresident brewer’s license shall make a monthly report to the commission on

forms prescribed or approved by the executive director or the executive director’s designee.

(b) The report shall be electronically submitted or, if mailed, postmarked on or before the 15

day of the

month following the calendar month for which the report is made.

support each entry in the report. A legible copy of each invoice must show the:

(1) invoice number and invoice date;

(2) trade name, license number, and address of the brewer;

(3) trade name, license or permit number, and shipping address of the purchaser;

(4) brand name, type, number and size of containers, total cases, unit or line-item extension price,

and total sales price;

(5) origin of shipment and shipping date; and

(6) total gallons of malt beverages invoiced.

(d) As long as a nonresident brewer’s license remains active, the monthly report required by this section

must be filed each month even if no sales or shipments have been made.

Source Note: The provisions of this §41.27 adopted to be effective June 6, 2022, 47 TexReg 3247

SUBCHAPTER C: Excise Taxes

§41.30 Excise Tax

Holders of licenses and permits authorizing the manufacture, wholesaling, or distribution of distilled

spirits, wine, and malt beverages in this state must pay the assessed excise tax not later than the 15th day

of the month following the month in which occurs the "first sale" as this term is defined in Alcoholic

Beverage Code §§201.02, 201.41 and 203.02. All taxes shall be remitted by electronic funds transfer,

check, or money order made payable to the Texas Alcoholic Beverage Commission.

Source Note: The provisions of this §41.30 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.31 Monthly Report of Distilled Spirits, Wines, and Malt Beverages

(a) Each holder of a distiller's and rectifier's permit, any class of wholesaler's permit, a winery permit, a

brewer's license, or a distributor's license shall make a monthly report to the commission on forms

prescribed or approved by the executive director or the executive director's designee.

(b) The report shall be electronically submitted or postmarked by the license or permit holder with the

commission at its offices at Austin, Texas, on or before the 15th day of the month following the

calendar month for which the report is made.

support each entry in the report. A legible copy of each invoice must show:

(1) invoice number and invoice date;

(2) trade name, license number and address of licensed brewer for malt beverages;

(3) trade name, permit number and address of permitted non-resident seller, distiller or winery for

wine and distilled spirits;

(4) trade name and shipping address of customer;

(5) brand name, type, number and size of containers, total cases, unit or line-item extension price,

and total selling price;

(6) origin of shipment and shipping date; and

(7) total gallons by taxable class of alcohol invoiced.

(d) The monthly report required by this section must be filed each month even if no sales or shipments

have been made.

Source Note: The provisions of this §41.31 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.32 Out-Of-State Winery Direct Shipper's Permits

(a) This rule relates to Chapter 54 of the Alcoholic Beverage Code.

(b) Each holder of an out-of-state winery direct shipper's permit shall make reports (Direct Shipper's

Report) to the commission on forms prescribed by the executive director or executive director's

designee.

Texas, on or before the 15th day of the month following the end of the reporting period for which the

report is made and shall show:

(1) the reporting period and year for which the report is made, the permit number and the name and

address of the winery; and

(2) the ship date, invoice date, invoice number, customer name, city, total wine gallons per invoice,

and carrier name and tracking number for each sale and delivery.

(d) The permittee shall attach to the Direct Shipper's Report either:

(1) complete, un-redacted copies of invoices showing:

(A) the names and addresses of the individuals to whom the alcoholic beverages were shipped;

(B) the brand name shipped, the container size and the quantities of each brand name;

(D) the licensed common carrier used to deliver the alcoholic beverages; and

(E) the licensed common carrier tracking number used to identify each shipment; or

(2) a complete, unredacted list containing the information described in paragraph (1) of this

subsection.

(e) Holders of out-of-state winery direct shipper's permits must pay the excise tax on the total gallons of

wine shipped into the state, not later than the 15th day of the month following the reporting period

the wine was shipped into the state. Remittance of the tax due on wine, less 2.0% of the amount due

when submitted within the required time, shall accompany the Direct Shipper's Report and shall be

made by check, United States money order, or other acceptable methods of payment payable to the

Texas Alcoholic Beverage Commission.

(f) As long as an out-of-state winery direct shipper's permit remains active, the reports required herein

must be filed even though no sales or shipments have been made.

(g) Holders of out-of-state winery direct shipper's permits that shipped 5,000 gallons annually or more to

consumers in Texas during the previous calendar year, must file a monthly report.

(h) Holders of out-of-state winery direct shipper's permits that shipped less than 5,000 gallons annually

to consumers in Texas during the previous calendar year, must file a quarterly report. Quarterly

Reporting Periods: January 1 through March 31, April 1 through June 30, July 1 through September

30, and October 1 through December 31.

(i) Holders of out-of-state winery direct shipper's permits must:

(1) require adult signature upon delivery of alcoholic beverages and notify the carrier that the

shipment contains alcoholic beverages;

(2) ensure that any third party it uses for order fulfillment identifies and marks the packages to be

shipped as containing alcohol and obtains an adult signature upon delivery of the alcoholic

beverage product;

(3) maintain tracking status documentation for each shipment to a Texas consumer, which must

include delivery confirmation and undeliverable shipments; and

(4) provide records relating to alcohol shipments to Texas consumers made by a third party on

behalf of the permit holder.

(j) Failure to comply with the requirements of this section or accurately maintain required records may

result in cancellation or suspension of the direct shipper's permit.

(k) Holders of out-of-state winery direct shipper's permits that contract with a third party to provide

packaging services and/or recordkeeping services, such as filing state tax reports, shall ensure all

service records and tax reports subject to the third-party contract are available upon commission

request.

Source Note: The provisions of this §41.32 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.33 Excise Tax Exemptions

The following transactions are exempt from the requirement to pay excise taxes:

(1) Sales of sacramental wine in compliance with §41.34 of this title;

(2) Out-of-state sales in compliance with §41.35 of this title;

(3) Export of malt beverages that are not legal for sale in Texas in compliance with §41.36 of this

title;

(4) Alcoholic beverages destroyed in compliance with §41.37 of this title; and

(5) Sales of alcoholic beverages for industrial purposes.

Source Note: The provisions of this §41.33 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.34 Sacramental Wine

(a) Any minister, priest, rabbi, or the authorized head of any religious organization may obtain any wine,

tax free, for sacramental purposes.

(b) Each wholesaler, Class B wholesaler, or winery shall, for each transaction, obtain a letter from the

minister, priest, rabbi, or other authorized head of any religious organization who obtains from him

any wine for sacramental purposes, tax-free, to the effect that said wine will be used for sacramental

purposes. In computing tax liability, no credit shall be allowed for such transactions unless such

letter is submitted as documentary proof that such wine was delivered to a minister, priest, rabbi, or

other authorized head of a religious organization, and such letter shall be kept available for the

inspection of a representative of the commission for a period of at least two years.

Source Note: The provisions of this §41.34 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.35 Reporting Required for Export of Alcoholic Beverages

License and permit holders authorized to export alcoholic beverages must list those transactions as tax-

exempt out-of-state exports on monthly excise tax reports.

Source Note: The provisions of this §41.35 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.36 Export of Malt Beverages not Legal for Sale

(a) This section applies to the export of malt beverages that are not legal for sale in Texas under

Alcoholic Beverage Code §§62.09, 64.09, and 66.11.

(b) The holder of any class of distributor's license with the intent to receive, store, transport, and deliver

for export to another state malt beverages that are otherwise illegal to sell to a Texas retailer because

of alcohol content, container size, package, or label shall:

(1) store and segregate the products separately from products that are legal to sell to a Texas

retailer;

(2) prepare a separate invoice for each transaction, which shall be different from the invoice used

for malt beverages that are legal to sell to a Texas retailer; and

(3) maintain each invoice for at least two years and make them available upon request by an

authorized representative of the commission.

Source Note: The provisions of this §41.36 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.37 Destructions

(a) Each permittee subject to the provisions of Alcoholic Beverage Code §§201.03, 201.04, or 201.42,

and each licensee subject to the provisions of Alcoholic Beverage Code §203.01, is entitled to

receive a tax exemption or a tax credit for alcoholic beverages destroyed in accordance with

subsections (c) - (g) of this section.

(b) Each permittee or licensee eligible to destroy alcoholic beverages following a natural disaster

pursuant to Alcoholic Beverage Code §109.09, is entitled to receive a tax exemption or a tax credit

for alcoholic beverages destroyed in accordance with subsection (i) of this section.

beverages must be destroyed in such a manner that the product is rendered unrecoverable or unfit for

human consumption.

(d) A permittee or licensee must comply with the following requirements prior to the destruction of

alcoholic beverages for which a tax exemption or tax credit is claimed, unless it submits to the

commission a written request for an exception and receives approval of the request prior to

destruction:

(1) At least three full working days prior to the destruction, the permittee or licensee must notify

the nearest authorized representative of the commission of the intent to destroy the alcoholic

beverages. This notification must be made in writing on the commission's Application for

Destruction of Alcoholic Beverages and contain a complete listing by brand, quantity, container

size, and package size of the alcoholic beverages to be destroyed. This requirement for a

complete listing may be satisfied by attaching a computerized listing that provides all the

required documentation to the Application for Destruction of Alcoholic Beverages.

(2) The permittee or licensee must receive written approval from an authorized representative of the

commission to conduct the destruction.

(e) To support a claim for a tax exemption or tax credit for a destruction, the permittee or licensee must

retain the following documentation and make it available to an authorized representative of the

commission upon request:

(1) a signed copy of the Application for Destruction of Alcoholic Beverages indicating that it was

approved, which an authorized representative of the commission shall provide to the permittee

or licensee when the destruction is approved;

(2) if the alcoholic beverages were destroyed at a location that charges a fee for this service, a copy

of the receipt for payment of the fee; and

(3) an affidavit of destruction executed by an employee of the permittee or licensee who witnessed

the destruction of the alcoholic beverages. The affidavit must include the date of destruction, the

destruction location, and a description of how the alcoholic beverages were destroyed. A

separate affidavit must be prepared for distilled spirits, wine, and malt beverages.

(f) The license or permit holder shall submit the approved Application for Destruction of Alcoholic

Beverages (including any attachments) with the monthly excise tax report it files with the

commission upon which it claims the tax exemption for the destroyed alcoholic beverages. If the

permittee or licensee is unable to claim the destroyed alcoholic beverages as an exemption on a tax

report, it may submit a letter to the commission requesting issuance of an authorized tax credit.

(g) The license or permit holder shall maintain a copy of the approved Application for Destruction of

Alcoholic Beverages (including any attachments) and make it available upon request for inspection

by an authorized representative of the commission.

(h) The commission may require that the alcoholic beverages designated for destruction be physically

inspected and inventoried by a representative of the commission prior to the scheduled destruction

and/or that the actual destruction be witnessed by an authorized representative of the commission.

(i) A permit or license holder may destroy uninsured malt beverages subject to destruction under

Alcoholic Beverage Code §109.09 only in compliance with the following requirements:

(1) the alcoholic beverages must be destroyed in such a manner that the product is rendered

unrecoverable;

(2) an employee of the permittee or licensee who witnessed the destruction of the malt beverages

must execute an affidavit of destruction that includes the date of destruction, the destruction

location, and a description of how the alcoholic beverages were destroyed;

(3) not later than 30 days following the destruction of malt beverages under this section, the

permittee or licensee must submit to the commission the affidavit required under paragraph (2)

of this subsection with a completed and signed commission form for notification of destruction

of uninsured product after a natural disaster; and

(4) The permittee or licensee must retain the following documentation and make it available to the

commission upon request:

(A) a copy of the receipt for the cost of destruction, if the malt beverages were destroyed at a

location that charged a fee for the service;

(B) a copy of the completed and signed Notification of Destruction of Uninsured Product after

a Natural Disaster; and

Source Note: The provisions of this §41.37 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.38 Production Record

(a) Each holder of a distiller's and rectifier's permit, winery permit, brewer's license, or brewpub license

shall make a production record to be retained by the license or permit holder and made available to a

representative of the commission upon request.

(b) The production record shall show:

(1) a full and complete report of all liquor or malt beverages manufactured, received, and produced;

(2) the date of each day's operation;

(3) for each day's operation, the opening inventory in bulk gallons;

(4) receipts in bulk gallons;

(5) bulk gallons used in production;

(6) closing inventory in bulk gallons;

(7) total units produced, stating number, size, and type of container;

(8) total gallons produced; and

(9) total taxable gallons produced of malt beverage or class of liquor.

is received or produced.

(d) Each winery shall maintain a record of wine manufactured and labeled pursuant to Alcoholic

Beverage Code §16.01(b). This record shall include date of manufacture, the name of the adult(s) for

whom the wine was manufactured and labeled, a sample label, and the total gallons manufactured for

each adult. Each record shall be made available to a representative of the commission upon request.

Source Note: The provisions of this §41.38 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.39 Amount of Excise Tax Bonds

(a) Excise tax bonds required by Chapter 204 of the Alcoholic Beverage Code and by Chapter 33,

Subchapter C, of this title to be maintained by license or permit holders authorized to import malt

beverages or liquor into this state shall be in a minimum amount of $1,000 and the maximum

amounts of the bonds shall be determined by the executive director. The maximum bond fixed by the

executive director must be an amount that will adequately protect the State of Texas against the

anticipated tax liability of the principal during any six-week period.

(b) The executive director may investigate the adequacy of any bond and adjust the bond as they deem

justified by the investigation results.

Source Note: The provisions of this §41.39 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.40 Reports Required for Brewpubs

(a) Each holder of a brewpub license shall make a monthly report to the commission on forms

prescribed or approved by the executive director or executive director's designee.

100

(b) The report shall be electronically submitted or, if mailed, postmarked on or before the 15th day of

the month following the calendar month for which the report is made.

support each entry in the report. A legible copy of each invoice must show the:

(1) invoice number and invoice date;

(2) trade name, license number, and address of the brewpub;

(3) trade name, license or permit number, and shipping address of the purchaser;

(4) brand name, type, number and size of containers, total cases, unit and or line-item extension

price, and total sales price;

(5) origin of shipment and shipping date; and

(6) total gallons of malt beverage invoiced.

(d) As long as a brewpub license remains active, the monthly report required by this section must be

filed each month even if no sales or shipments have been made.

Source Note: The provisions of this §41.40 adopted to be effective December 6, 2021, 46 TexReg 8246

SUBCHAPTER D: Sales of Alcoholic Beverages Not In Regular Course of Business

§41.41 Sale to and by Lien Holders

(a) All alcoholic beverages are subject to levy and other judicial process the same as any other personal

property under the general laws of the state.

(b) Alcoholic beverages may be sold to and purchased by lien holders and licensees and permittees who

are privileged to purchase and sell the same.

director or the executive director's designee, giving the date of sale, the names and addresses of both

the original owner and the purchaser, an inventory of the beverages sold and the name of the lien

holder or lien holders. A lien holder who is not a licensee or permittee and who purchases alcoholic

beverages or who procures title thereto in any other lawful manner shall dispose of such alcoholic

beverages within 30 days after acquiring title thereto, unless the executive director grants additional

time for good cause shown.

(d) Before reselling alcoholic beverages under this section, the lien holder shall apply to the executive

director or the executive director's designee for permission to make such sale. The application shall

show the name and address of the intended purchaser, the number of the intended purchaser's license

or permit, the quantity and type of beverages to be sold, and the date and manner of the sale, and

shall include copies of any documentation by which the lien holder procured title thereto.

Source Note: The provisions of this §41.41 adopted to be effective December 6, 2021, 46 TexReg 8246

101

§41.42 Sale by Carrier

(a) Any person authorized to transport alcoholic beverages may sell, in accordance with law, any

alcoholic beverage the person acquires by reason of unpaid charges, to any permittee or licensee who

is privileged to import and sell such alcoholic beverage.

(b) Any person contemplating such sale shall apply to the executive director or the executive director's

designee, setting out the facts regarding such shipment, the names and addresses of the consignor

and consignee, the name and address of the proposed purchaser, and documentation supporting the

amount of the charges due.

beverages for unpaid charges except in the manner herein provided.

Source Note: The provisions of this §41.42 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.43 Sale after Cancellation, Expiration, or Voluntary Suspension of License or Permit

(a) In the event any license or permit granted under the code is cancelled, expires, or is voluntarily

suspended by the license or permit holder, the license or permit holder is authorized for 30 days

thereafter to sell or dispose of its remaining inventory of alcoholic beverages on hand at the time of

the license or permit cancellation, expiration, or voluntary suspension, in bulk, to a licensee or

permittee authorized to purchase and sell same.

(b) If a necessity exists for a longer period, written permission must be procured from the executive

director or the executive director's designee. The application for such permission shall specify the

reasons.

to the commission for cancellation or voluntary suspension may request approval to transfer the

inventory on hand to one of its other licensed or permitted locations.

(d) In all cases where alcoholic beverages are disposed of or sold in bulk as herein set out, a sworn

transfer document shall be filed with the local office of the commission and is subject to approval by

the executive director or the executive director's designee. Approval of the sale or transfer shall not

be granted if either the seller or purchaser is delinquent under Alcoholic Beverage Code §102.32 and

§45.130 of this title at the time of the request.

(e) The transfer document filed with the commission must show the complete inventory of alcoholic

beverages on hand. The inventory shall show the quantity, brand, and size of each container of

alcoholic beverage, and for distilled spirits it shall also show the identification stamp number affixed

to each container.

(f) Both the transferor and the transferee shall sign the transfer document under oath before a notary

public swearing to the correctness of the transaction.

(g) All alcoholic beverages shall be transferred in a single transaction unless, based on the

circumstances, multiple transactions are approved by the executive director or the executive

director's designee.

102

(h) No person shall dispose of any alcoholic beverages after the expiration, cancellation, or voluntary

suspension of a license or permit except in the manner and within the time herein specified unless

written permission is procured from the executive director or the executive director's designee.

Source Note: The provisions of this §41.43 adopted to be effective December 6, 2021, 46 TexReg 8246

SUBCHAPTER E: Private Clubs

§41.50 General Provisions

(a) Definitions. The following words and terms, when used in this subchapter, have the following

meanings, unless the context clearly indicates otherwise:

(1) Club--a private club.

(2) Guest--an individual who is personally known by the member or one of the member's family

and who is admitted to the club premises by personal introduction of, or in the physical

company of, the member or one of the member's family.

(3) Member and membership--a member of and membership in a private club.

(4) Member's family--a spouse, parent, sibling, or adult child of the member.

(b) Digital Recordkeeping. A club using a computer system to maintain its membership records is not be

required to keep a well-bound book if such computer system provides the information as required by

these rules.

Source Note: The provisions of this §41.50 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.51 Requirements for Permit; Membership

(a) This section does not apply to temporary members or to hotel patrons, as described in Alcoholic

Beverage Code §§32.09, 32.10, and 32.11.

(b) To qualify to hold a private club registration permit, a private club must:

(1) have 50 or more members at all times;

(2) have a membership committee composed of three or more members of the club and vested with

authority by charter, bylaw or regulation to approve or reject membership applications and

terminate existing memberships. The governing body of a club, if qualified under this provision,

may be the membership committee, and when functioning as such is subject to and governed by

all provisions herein relating to the membership committee. When considering a membership

application or termination of membership, the membership committee shall keep written

minutes showing the meeting date, the names of all committee members present, the name of

any person admitted to membership, and the name of any person whose membership was

terminated. No minutes are required of any discussion or action regarding a membership

application that is denied;

(3) have, other than charter members, no members except those approved by at least three members

of the membership committee at a meeting of such a committee;

103

(4) keep a well-bound book in which is shown the following about each member: the full name of

the member, the member's initial membership number which shall be issued in sequence, the

current complete address of such member, the date such member was admitted to membership,

and the date such member was removed from membership. When a member has been removed

from membership, the membership number may be reassigned to another member. Additional

well-bound books may be used if necessary to record the information required by this

paragraph, but all such books shall be kept permanently by the club;

(5) keep all books, records, and minutes required herein on the premises of the club, and make them

available to any representative of the commission upon reasonable notice; and

(6) maintain in force any bond required and executed by the corporation as principal, if an

incorporated club, or by an officer of the club as principal, if an unincorporated club. Such bond

shall be executed by a surety company duly authorized and qualified to do business in this state,

as surety, in an amount required by rule of the commission payable to the State of Texas

conditioned that all fees and taxes owed by such club to the State of Texas shall be paid. Such

bond shall be in a form approved by the executive director and the attorney general of Texas.

resignation of the member. Resignation of any member shall be recorded immediately in the minute

book of the membership committee and in the records required by subsection (b) of this section.

(d) The executive director may, after notice and hearing, refuse to issue a private club registration permit

if the executive director finds that the applicant has failed to comply with any requirement set forth

in this subsection.

(e) As provided in the Alcoholic Beverage Code §32.01, alcoholic beverages owned by members of a

private club may only be served to and consumed by a member, a member's family, or their guests.

(f) Permittees may access electronically readable information on a driver's license, commercial driver's

license, or identification certificate for the purpose of verifying the accuracy of the records required

by this rule. Information so accessed may not be retained longer than is reasonably necessary to

ensure verification. The information may not be marketed in any manner. Written consent must be

obtained from the club member or prospective member when accessing electronically readable

information and proof of such consent must be maintained with the permittee's membership records.

Source Note: The provisions of this §41.51 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.52 Temporary Memberships

(a) This rule relates to §32.09 of the Alcoholic Beverage Code.

(b) A holder of a private club registration permit shall:

(1) issue a temporary membership card to any person who intends to be served alcoholic beverages

on its licensed premises, except a person who is a member of the club or a guest of a member of

the club, or, if the club is located in a hotel, a patron of the hotel who is at the hotel for

overnight lodging and is a guest of the hotel manager who is a member of the club; and

(2) keep a record with entries made in chronological order showing the following about temporary

membership cards issued: the date issued, the name of the person to whom the card was issued,

and the serial number of the temporary membership card.

104

holds a temporary membership card unless the temporary card is:

(1) issued to the club by the commission;

(2) issued to the temporary member by the manager of the club, or other person in charge of the

premises of the club;

(3) complete and legible, with all blanks, except signature blanks, properly completed, including

the name of the temporary member, club name, city, and time period covered;

(4) signed at the time of issuance by the manager of the club or other person in charge of the

licensed premises; and

(5) in possession of the temporary member to whom it is issued.

(d) The commission shall not issue a temporary membership card to a club until the commission has

received a written request from a club in the manner prescribed by the commission, together with the

effective fee established in the Texas Alcoholic Beverage Code. Payment of the fee shall be made

only by cashier's check, certified check, corporate check, through the commission's electronic portal,

or by United States postal money order payable to the Texas Alcoholic Beverage Commission.

Source Note: The provisions of this §41.52 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.53 Pool Systems

(a) This section relates to §§32.06 and 32.13 of the Alcoholic Beverage Code.

(b) Equal Assessment Pool Systems. Each holder of a private club registration permit operating under a

pool system that requires each member of the pool to participate equally in the purchase and

replacement of alcoholic beverages shall:

(1) purchase all such alcoholic beverages with money assessed and collected in advance from each

member equally;

(2) initially set the assessment fee according to the club's by-laws or governing body and increase

or decrease the fee as needed upon approval of the club's governing body and recording of the

fee change in the club's minutes;

(3) use only money from the fee assessment to purchase or replace alcoholic beverages purchased

for use under the equal assessment pool system; and

(4) keep a well-bound book in which is recorded the following about each member of the pool: the

member's name and membership number, the date and amount of each liquor pool assessment,

and the date of payment of the assessment. This rule does not apply to fraternal organizations or

to veterans' organizations.

replacement pool system by which a designated percentage of daily service charges collected for the

service of alcoholic beverages is set aside to replace alcoholic beverages served to club members and

their guests and to temporary membership card holders shall:

105

(1) initially set the percentage according to the club's by-laws or governing body and increase or

decrease the percentage as needed upon approval of the club's governing body and recording of

the percentage change in the club's minutes; and

(2) use only money from the designated percentage of daily service charges collected for the

service of alcoholic beverages to purchase or replace alcoholic beverages purchased for use

under the replacement pool system.

(d) Each holder of a private club registration permit operating under the pool system using either equal

assessments or a replacement percentage shall prepare a record showing separately the pool

assessments or replacement funds collected from the membership and the disbursements of these

collections for purchases of alcoholic beverages.

(e) The holder of a private club registration permit or a private club exemption certificate permit may

purchase wine only from the holder of a local distributor's permit.

Source Note: The provisions of this §41.53 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.54 Locker Systems

(a) This section relates to §§32.05, 32.10, and 32.13 of the Alcoholic Beverage Code.

(b) A club may allow its members to store their privately-owned alcoholic beverages in secure lockers

on the club premises.

rented only to such member at all times, except when the member, one of the member's family or the

member's guest is present on the premises and using such alcoholic beverages. This section does not

apply to fraternal organizations or to veterans' organizations.

(d) The club will be assessed gross receipts taxes on alcoholic beverages kept in member lockers based

upon storage fees, corkage fees, and/or service fees collected by the club.

(e) The club must keep the following records on the premises for at least two years and must make

available to the TABC upon reasonable request:

(1) receipts or other records of storage fees, corkage fees, and/or service fees collected;

(2) an inventory of each alcoholic beverage stored in a member locker, including the brand and

container size of distilled spirits, locker number, and member name or other unique identifier,

such as a membership number; and

(3) with respect to distilled spirits, the inventory must include other identification approved by the

commission sufficient to demonstrate that the distilled spirit is owned by the member.

(f) Once stored, members may not remove an alcoholic beverage from the club premises except as

authorized by §32.15 of the Alcoholic Beverage Code.

Source Note: The provisions of this §41.54 adopted to be effective December 6, 2021, 46 TexReg 8246

106

§41.55 Food Service

A private club shall provide regular, adequate food service including, at a minimum, meals available on

the club premises for service to members, their families, and guests. The food service requirement may be

fulfilled through the use of a concession or catering agreement with an outside vendor. Prepared food

must be available upon request and must be delivered and served at the licensed premises. Payment for

food service must be made to the private club. This section does not apply to fraternal organizations or

veterans' organizations.

Source Note: The provisions of this §41.55 adopted to be effective December 6, 2021, 46 TexReg 8246

§41.56 Enforcement

The executive director may, after notice and hearing, suspend for a period not exceeding 60 days or

cancel a private club registration permit:

(1) if the executive director finds that the club or any of its members, agents, servants, or

employees has:

(A) served, consumed or permitted another person to consume an alcoholic beverage on the

premises of the club at any time when the private club registration permit of such club is

suspended by an order of the executive director; or

(B) made a false statement or a misrepresentation in any book, record, minutes or report, or

other written matter required to be kept or reported by this subchapter or by any provision

of the Alcoholic Beverage Code;

(2) for any reason listed in §32.17 of the Alcoholic Beverage Code.

Source Note: The provisions of this §41.56 adopted to be effective December 6, 2021, 46 TexReg 8246

SUBCHAPTER F: Identification Stamps

§41.60 Identification Stamps and Local Distributor's Records

(a) Definitions. The following words and terms, when used in this section, have the following meanings,

unless the context clearly indicates otherwise:

(1) Identification stamp--the identification stamp referenced in §§28.15 and 32.20 of the Alcoholic

Beverage Code.

(2) Invoice--an instrument requesting payment for alcoholic beverages issued by the seller of

alcoholic beverages to a permittee.

(3) Mutilate--to scratch, cut, tear, or abrade in a manner which inflicts obvious and substantial

damage to the stamp but does not totally remove or obliterate the stamp.

(4) Retail permittee--the holder of a mixed beverage permit, a private club registration permit, or

private club exemption certificate permit.

107

(b) The holder of a local distributor's permit shall keep any record required by any rule of the

commission or by the Alcoholic Beverage Code for a period of two years on the licensed premises

and shall make any such record available to a representative of the commission upon request within a

reasonable time.

stamps have been issued by the commission. When affixing identification stamps, the holder of a

local distributor's permit shall affix each identification stamp near the top of the brand label of the

bottle of distilled spirits in such a manner that some portion of the identification stamp covers and is

attached to some portion of the brand label but does not cover any information on the brand label,

unless the exception in subsection (d) of this section applies. "Brand label" means the principal

display panel that is most likely to be displayed, presented, shown, or examined under normal and

customary conditions of display for retail sale.

(d) A licensee selling cases of distilled spirits containing only multiple spirits containers each with a

capacity of 375 mL or less may stamp the case with one identification stamp prior to selling the

alcoholic beverages to a mixed beverage permittee, rather than individually stamping each bottle in

the case. The mixed beverage permittee purchasing cases of distilled spirits subject to this section

shall retain for two years invoices showing the identification stamp for each case purchased.

(e) Transaction records.

(1) Each holder of a local distributor's permit shall prepare a record making an entry thereon on

each date there occurs any of the following transactions involving identification stamps and

showing the following:

(A) Quantity of identification stamps received.

(B) Quantity and serial numbers of identification stamps affixed, and also showing the invoice

date, invoice number, retailer trade name, and retailer permit number.

(D) When the holder of a local distributor's permit affixes identification stamps prior to the sale

of such stamped merchandise, the permittee shall also record the date the merchandise is

stamped showing the number of stamps used per brand and size. Stamped merchandise

shall be stored separately from all other merchandise on hand. Stamps issued from pre-

stamped stock must be listed individually per invoice line item on sales invoices prepared

for retail sales.

(E) The serial number of each stamp issued, lost, stolen, voided, destroyed, or issued as a

replacement stamp must be recorded.

(2) Full title and ownership of all identification stamps shall remain vested in the commission.

Upon termination of any local distributor's permit, all unaffixed identification stamps on hand

shall be surrendered to the commission along with distribution records of stamps issued by the

local distributor permittee.

(f) An invoice shall be issued in original and one copy in consecutive numbered order, showing the date

of the sale or distribution, the name and permit number of the seller and the purchaser, and the

purchaser's complete address, the serial numbers of all identification stamps affixed to the

merchandise, the quantity, brand and class of alcoholic beverages sold and the total price of each

108

brand and class shown thereon. Such invoices or a copy thereof shall be delivered to the permittee

and a copy of such invoices shall be kept by the seller making same. The seller's copy of the invoice

must be signed by the purchaser.

(g) A local distributor may elect to maintain identification stamp records required by subsection (e) of

this section in an electronic format using an automated stamp record system. If this election is made,

the automated system must provide the information required by subsection (e) of this section, and the

automated system must be inspected and have prior approval from the Commission.

(h) The invalidation of identification stamps required by §28.09 of the Alcoholic Beverage Code shall be

done by mutilating the stamp. The marking of a stamp with ink, dye, or other material is not

authorized as a method for invalidating the stamp.

(i) No retail permittee shall possess or permit any person to possess on the permittee's licensed premises

any distilled spirits in any container bearing an identification stamp that has been mutilated or

otherwise damaged or marked to a substantial degree.

(j) No retail permittee shall possess or permit any person to possess on the permittee's licensed premises

any blank or serially numbered TABC identification stamp that is not properly attached to a distilled

spirits container that has been properly invoiced to the retail permittee by a local distributor.

(k) All provisions of §§28.08, 28.09, and 28.15 of the Alcoholic Beverage Code applicable to a mixed

beverage permittee apply to holders of private club registration permits and private club exemption

certificate permits.

Source Note: The provisions of this §41.60 adopted to be effective December 6, 2021, 46 TexReg 8246

109

Chapter 45: Marketing Practices

SUBCHAPTER A: General Provisions

§45.1 Statutory Authority and Applicability

(a) This chapter implements Alcoholic Beverage Code §§101.67 and 101.671, which provide for the

registration of alcoholic beverage products with the state, and Chapter 108, Advertising.

(b) This chapter does not apply to:

(1) distilled spirits for export or for industrial use;

(2) wine produced pursuant to §109.21, Alcoholic Beverage Code;

(3) wine that is to be exported in bond;

(4) malt beverages in bond; or

(5) malt beverages manufactured for sale exclusively outside this state.

Source Note: The provisions of this §45.1 adopted to be effective December 31, 2020, 45 TexReg 7245;

amended to be effective September 1, 2021, 46 TexReg 5182

§45.2 Definitions

When used in this chapter, the terms listed below shall have the following meanings:

(1) Advertisement--Any statement provided by or at the behest of a permittee promoting the

purchase of a brand of alcoholic beverage through the medium of: radio broadcast; television

broadcast; the internet; newspapers, periodicals, or other publications; any sign or outdoor

advertisement; or of any other printed or graphic matter, including trade booklets, menus, and

cards, if such advertisement is in, or is calculated to induce sales in, this state, or is disseminated

by mail or electronic mail. The term "advertisement" does not include: any label affixed to any

alcoholic beverage bottle; or any individual covering, carton, or other container of the bottle, or

any written, printed, graphic, or other matter accompanying the bottle, which constitutes a part

of the labeling under this chapter; or any editorial or other reading matter in any periodical

newspaper, or other publication for which no money or other valuable consideration is paid or

promised, directly or indirectly, by any permittee.

(2) Alcoholic beverage--Alcohol, or any beverage containing more than one-half of one percent of

alcohol by volume, which is capable of use for beverage purposes, either alone or when diluted,

including distilled spirits, malt beverages, and wine, as defined herein.

(3) Applicant--A person who submits an application with the commission to register an alcoholic

beverage product.

(4) Bottler--Any person who places alcoholic beverages in containers.

(5) Brand label--The label carrying, in the usual distinctive design, the brand name of the alcoholic

beverage.

(6) Brewpub--A holder of a brewpub license under Chapter 74 of the Alcoholic Beverage Code.

110

(7) Code--The Texas Alcoholic Beverage Code.

(8) COLA--A certificate of label approval issued by the United States Alcohol and Tobacco Tax and

Trade Bureau pursuant to 27 CFR Ch. I, Subch. A, Part 13.

(9) Commission--The state agency, the Texas Alcoholic Beverage Commission; this term is not

intended to refer to the agency’s commissioners sitting as a deliberative body.

(10) Container--Any can, bottle, barrel, keg, cask, tank car, or other closed receptacle, irrespective of

size or of the material from which made, for use for the sale of malt alcoholic beverages. This

provision does not in any way relax or modify §1.04(18) of the Alcoholic Beverage Code.

(11) Distilled spirits--Alcohol, ethyl alcohol, hydrated oxide of ethyl, spirits of wine, whiskey, rum,

brandy, gin, other distilled spirits, and any liquor produced in whole or in part by the process of

distillation, including all mixtures and dilutions thereof.

(12) Malt beverage--a fermented beverage of any name or description containing one-half of one

percent or more of alcohol by volume, brewed or produced from malt, in whole or in part, or

from any malt substitute.

(13) Person--A natural person or association of natural persons, trustee, receiver, partnership,

corporation, organization, or the manager, agent, servant, or employee of any of them.

(14) Producer--A manufacturer of all classes of alcoholic beverages and nonresident sellers that are

the primary American source of supply for purposes of §37.10 of the Code.

(15) TTB--The United States Alcohol and Tobacco Tax and Trade Bureau or its successor agency.

(16) Sake--an alcoholic beverage made by fermenting rice.

(17) Wine--A product obtained from the alcoholic fermentation of juice of sound ripe grapes, fruits,

berries, or honey, and includes wine coolers and other alcoholic beverages made in the manner

of wine, including sparkling and carbonated wine, vermouth, cider, sake, and perry.

Source Note: The provisions of this §45.2 adopted to be effective December 31, 2020, 45 TexReg 7245;

amended to be effective September 1, 2021, 46 TexReg 5182

§45.3 General Prohibition

No person may ship or import into the state, manufacture and offer for sale, or distribute or sell an

alcoholic beverage product in this state in a manner that does not comply with all applicable requirements

of this chapter.

Source Note: The provisions of this §45.3 adopted to be effective December 31, 2020, 45 TexReg 7245

§45.4 Product Registration Required

(a) Except as provided by subsection (b) of this section, no alcoholic beverage product may be shipped

or imported into the state, manufactured and offered for sale, or distributed or sold in the state until

the product is registered with the commission.

(b) Product registration is not required for products sold:

111

(1) in compliance with Code §101.6701 by holders of brewer's licenses authorized to sell directly to

consumers under Code §62.122;

(2) by holders of brewpub licenses except for malt beverages sold under the authority of Code

§§74.08 or a distributor under 74.09;

(3) pursuant to out-of-state winery direct shipper's permits under Chapter 54 of the Code;

(4) by a vintage distilled spirits seller pursuant to Code §§22.19 or 23.07; and

(5) by a wine collection seller pursuant to Code §§111.002 or 111.003.

Source Note: The provisions of this §45.4 adopted to be effective December 31, 2020, 45 TexReg 7245;

amended to be effective September 1, 2021, 46 TexReg 5182; amended to be effective April 15, 2024, 49

TexReg 2287

§45.5 Denial of Product Registration

(a) The commission may deny an application for product registration for one or more of the following

reasons:

(1) the product label does not meet applicable federal requirements;

(2) registration of the product would create a cross-tier violation;

(3) the label includes a statement, design, device, or representation that is obscene or indecent;

(4) the commission determines the product would create a public safety concern; or

(5) the commission determines the product violates any other section of the Code.

(b) No alcoholic beverage label may contain any statement, design, device, or representation of or

relating to any guarantee, irrespective of falsity, other than a bona fide guarantee to refund the

purchase price if the consumer is dissatisfied.

shipping or importing into or within the state, manufacturing or offering for sale, or distributing or

selling the product in the state using the denied label.

Source Note: The provisions of this §45.5 adopted to be effective December 31, 2020, 45 TexReg 7245;

amended to be effective September 1, 2021, 46 TexReg 5182

§45.6 Revocation of Registration

The commission may revoke product registration at any time if the registration was granted in error; if the

commission receives new information supporting a denial under §45.5 of this title; or if the registration

was issued subject to conditions and the conditions were not satisfied by the deadline.

Source Note: The provisions of this §45.6 adopted to be effective December 31, 2020, 45 TexReg 7245

§45.7 Time Limitation for Processing Product Registration Application

(a) Not later than the 30th day after the date the commission receives an application for registration of a

product under this section, the commission shall either approve or deny the registration application.

112

(b) For purposes of this chapter, an application is received only when all required information has been

received by the commission. An incomplete application is not considered received.

Source Note: The provisions of this §45.7 adopted to be effective December 31, 2020, 45 TexReg 7245

§45.8 Protest

(a) If the commission denies the application for a product with a valid COLA or fails to act on the

application within the time required by §45.7 of this title, the applicant is entitled to an

administrative hearing before the State Office of Administrative Hearings.

(b) To request a hearing under this chapter, the applicant must file a written request for hearing with the

commission within ten (10) business days of:

(1) receiving notification from the commission that product registration has been denied; or

(2) the expiration of the time limit for commission action, if the commission has not either

approved or denied the application.

Source Note: The provisions of this §45.8 adopted to be effective December 31, 2020, 45 TexReg 7245

§45.9 Withdrawal of Application

An applicant may unconditionally withdraw their application for product registration at any time prior to

product registration or issuance of a notification of denial.

Source Note: The provisions of this §45.9 adopted to be effective December 31, 2020, 45 TexReg 7245

§45.10 Application Fee

(a) The fee for an application for registration under this chapter is $25 and shall be paid at the time the

application is filed.

(b) An applicant for product registration under this chapter is not entitled to a refund of the application

fee for any reason.

Source Note: The provisions of this §45.10 adopted to be effective December 31, 2020, 45 TexReg 7245

§45.11 When Reapplication is Required

(a) For products registered with the commission using a federal COLA, any change to the label or

product that requires issuance of a new COLA requires reapplication for product registration with the

commission.

(b) For products registered with the commission that are not eligible for a federal COLA, any change to

the label or product requires reapplication for product registration with the commission, except for

the following permissible label revisions:

(1) Deleting any non-mandatory label information, including text, illustrations, graphics, and

ingredients;

(2) Repositioning any label information, including text, illustrations, and graphics;

(3) Changing the color of the background or text, the shape, or the proportionate size of labels;

113

(4) Changing the type size or font or make appropriate changes to the spelling (including

punctuation marks and abbreviations) of words;

(5) Changing the type of container or net contents statement;

(6) Adding, deleting, or changing optional information referencing awards, medals or a rating or

recognition provided by an organization as long as the rating or recognition reflects simply the

opinion of the organization and does not make a specific substantive claim about the product or

its competitors;

(7) Adding, deleting, or changing holiday or seasonal-themed graphics, artwork, or salutations;

(8) Adding, deleting, or changing promotional sponsorship-themed graphics, logos, artwork, dates,

event locations or other sponsorship-related information; and

(9) Adding, deleting or changing references to a year or date.

pursuant to Alcoholic Beverage Code §101.67(a) must reapply for commission registration of any

such product that will be shipped or imported into the state, manufactured and offered for sale, or

distributed or sold on or after Sept. 1, 2023, unless granted an exception under subsection (d) of this

section.

(d) The executive director may issue a temporary Certificate of Registration containing an expiration

date at the request of a producer demonstrating that the producer requires additional time beyond

September 1, 2023 to use up products bearing labels approved by the commission and printed before

December 31, 2020.

Source Note: The provisions of this §45.11 adopted to be effective December 31, 2020, 45 TexReg 7245

§45.12 Application Procedures during Interruption of Federal Agency Operations

(a) In the event of a federal government shutdown or other interruption in service that prevents the TTB

from issuing COLAs, the commission shall evaluate applications using the federal standards required

for the applicant to receive a COLA or the federal exemption from the COLA requirements, if

applicable.

(b) If the applicant meets the applicable federal standards, the commission shall register the product on a

provisional basis.

COLA or any applicable federal exemption from COLA requirements within 30 days of the

resumption of services of the TTB.

(d) The provisional registration with the state shall expire automatically on the 31st day after the

resumption of services of the TTB, unless the applicant has timely filed an application with the TTB.

If the applicant timely filed an application with the TTB, the applicant's provisional registration shall

continue in effect either:

(1) if the TTB denies the applicant's COLA or exemption application, until the notice of that denial

is issued by the TTB; or,

114

(2) if the TTB issues the COLA or grants the exemption, until 30 days after the COLA or

exemption is issued.

(e) If the TTB grants the COLA or exemption application, the applicant must re-apply with the

commission for product registration within 30 calendar days of receipt of the federal COLA or

exemption.

(f) If the TTB denies the COLA or exemption application, the applicant shall notify the commission

within five calendar days of receipt of the denial. The commission may revoke the provisional

product registration in the event of COLA or exemption denial by the TTB.

Source Note: The provisions of this §45.12 adopted to be effective December 31, 2020, 45 TexReg 7245

SUBCHAPTER B: Enforcement

§45.20 Exhibiting Certificates to Representatives of the Commission

It shall be unlawful for any person to fail or refuse to exhibit, upon demand or request by any authorized

representative of the commission, the certificate of approval as issued by the United States Department of

the Treasury or the executive director.

Source Note: The provisions of this §45.20 adopted to be effective December 31, 2020, 45 TexReg 7245

§45.21 Examination and Testing of Product

Samples of alcoholic beverages shall be taken for examination by representatives of the commission

whenever deemed necessary by the executive director. Examinations may include any chemical or

physical determinations for the measurement of contents, the detection of alteration, and lack of

conformity to standards of identity, quality, and purity, as set forth in the Code and the rules of the

commission.

Source Note: The provisions of this §45.21 adopted to be effective December 31, 2020, 45 TexReg 7245

§45.23 Alteration of Labels

No person may alter, mutilate, destroy, obliterate, or remove any mark, brand, or label on an alcoholic

beverage product held for sale in this state except:

(1) as authorized by Texas law; and

(2) that the executive director may, on written application, permit additional labeling or relabeling

of bottled alcoholic beverages with labels covered by certificates of label approval that comply

with the requirements of this subchapter and with state law.

Source Note: The provisions of this §45.23 adopted to be effective December 31, 2020, 45 TexReg 7245

§45.24 Records Retention

(a) Producers of alcoholic beverage products registered in this state shall retain records of laboratory

analyses of the contents of each registered product, including tests of alcohol content.

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(b) Producers shall maintain records under this section in a manner that they can be made available upon

request of the commission.

commerce in the state of Texas.

Source Note: The provisions of this §45.24 adopted to be effective December 31, 2020, 45 TexReg 7245

§45.25 Damaged Stock

No alcoholic beverages may be sold or possessed for the purpose of sale in this state that have had fire,

smoke, or water damage to the label, container, or contents, unless authorized by the executive director.

Source Note: The provisions of this §45.25 adopted to be effective December 31, 2020, 45 TexReg 7245;

amended to be effective September 1, 2021, 46 TexReg 5182

§45.26 Intrastate Bottling

It is unlawful for any distiller, rectifier, or other bottler of distilled spirits in this state to bottle or remove

such distilled spirits from the licensed premises unless the distilled spirits have first been registered with

the commission or clearance of its export procedure has been obtained from the executive director.

Source Note: The provisions of this §45.26 adopted to be effective December 31, 2020, 45 TexReg 7245;

amended to be effective September 1, 2021, 46 TexReg 5182

§45.27 Illicit Beverage

(a) Any alcoholic beverage or container that does not meet all the requirements of this chapter is an

illicit beverage subject to seizure without a warrant.

(b) The executive director may authorize such disposition as facts and circumstances may warrant of any

alcoholic beverage that has been seized as the result of an accidental shipment or other reasonable

mistake.

Source Note: The provisions of this §45.27 adopted to be effective December 31, 2020, 45 TexReg 7245;

amended to be effective September 1, 2021, 46 TexReg 5182

SUBCHAPTER C: Specific Requirements for Distilled Spirits

§45.30 Certificate of Registration for a Distilled Spirit Product

(a) No distilled spirit may be shipped into the state or sold within the state without a Certificate of

Registration issued by the commission.

(b) An applicant for a Certificate under this section must hold a distiller's and rectifier's permit or a

nonresident seller's permit issued by the commission.

form. The application must contain the following:

116

(1) the product COLA issued by the TTB;

(2) all information required to complete the application form; and

(3) the application fee.

(d) A legible copy of the COLA must be included with the application. If the COLA is not legible, an

actual label that is affixed to the distilled spirit as shipped or sold, or an exact color copy of a label

must be included with the application.

Source Note: The provisions of this §45.30 adopted to be effective December 31, 2020, 45 TexReg 7245;

amended to be effective September 1, 2021, 46 TexReg 5182

SUBCHAPTER D: Specific Requirements for Malt Beverages

§45.40 Certificate of Registration for a Malt Beverage Product

(a) No malt beverage may be shipped into the state or sold within the state without a Certificate of

Registration issued by the commission.

(b) An applicant for a Certificate under this section must hold a brewer's license, nonresident brewer's

license, or brewpub license issued by the commission.

holder of a nonresident brewer's license.

(d) An applicant must submit an Application to Register a Malt Beverage on the form prescribed by the

commission along with the application fee to the commission. The application must contain the

following:

(1) If the product is eligible for a COLA:

(A) legible copy of the COLA;

(B) an actual label that is affixed to the malt beverage as shipped or sold, or a legible exact

color copy of a label; and

(2) If the product is not eligible for a COLA:

(A) an actual label that is affixed to the malt beverage as shipped or sold, or a legible exact

color copy of the label;

(B) TTB formulation; and

(e) Labels for beverages that meet the definition of malt beverage but are ineligible for a COLA must

also comply with 21 C.F.R. Part 101; 27 C.F.R. Parts 16 and 25; 21 U.S.C. §§341-350; 26 U.S.C. Ch.

51; and 27 U.S.C. §215.

117

Source Note: The provisions of this §45.40 adopted to be effective December 31, 2020, 45 TexReg 7245;

amended to be effective September 1, 2021, 46 TexReg 5182

§45.41 Additional Reasons for Denial of Registration of a Malt Beverage Product

(a) In addition to the provisions of §45.5 of this title, the commission may deny registration for a malt

beverage for the following reasons:

(1) the label filed with the application by a brewer's or nonresident brewer's licensee:

(A) indicates by any statement, design, device, or representation that the malt beverage is

brewed or bottled for any retailer permittee or licensee or any private club registration

permittee;

(B) includes the name, tradename, or trademark of any retailer permittee or licensee or any

private club registration permittee; or

(2) the brand of malt beverages by a brewer's or nonresident brewer's licensee is exclusive to the

holder of a license or permit authorizing the retail sale or service of malt beverages, or exclusive

to retail licensees or permittees under common ownership, control, or management, to the

exclusion of other retail licensees or permittees; or

(3) with the exception of the brewpub licensee's name, tradename or trademark, the label filed by a

brewpub licensee:

(A) indicates by any statement, design, device, or representation that the malt beverage is

brewed or bottled for any retailer permittee or licensee or for any private club registration

permittee (other than the brewpub licensee label applicant itself, an entity under common

ownership with it, or an entity with the same name or tradename as it); or

(B) includes the name, tradename, or trademark of any retailer permittee or licensee or of any

private club registration permittee (other than the brewpub licensee label applicant itself,

an entity under common ownership with it, or an entity with the same name or tradename

as it).

(b) Nothing in this subchapter or in Alcoholic Beverage Code Chapter 74 authorizes a brewpub licensee

to engage in contract brewing or alternating brewery proprietorship arrangements, and its facilities

may not be used to provide such arrangements or engage in such activities, which are authorized

only for holders of licenses under Alcoholic Beverage Code Chapters 62 or 63.

schedule:

(1) For all new product registrations after September 1, 2021, labels must include the product's

alcohol content by volume.

(2) Except as provided in paragraph (3) of this subsection, products registered with the commission

prior to September 1, 2021, must include alcohol content by volume on products shipped or

imported into the state, manufactured and offered for sale, or distributed or sold on or after

September 1, 2023.

118

(3) Notwithstanding paragraph (2) of this subsection, if prior to September 1, 2023, a manufacturer

subject to this rule makes a change to a label or product requiring issuance of a new COLA, the

manufacturer shall also revise the product's label to include its alcohol content by volume as

part of the application for a new COLA.

Source Note: The provisions of this §45.41 adopted to be effective December 31, 2020, 45 TexReg 7245;

amended to be effective September 1, 2021, 46 TexReg 5182

§45.42 Misbranding

Malt beverages in containers shall be deemed to be misbranded if the container has blown, branded, or

burned therein the name or other distinguishing mark of any person engaged in business as a brewer,

wholesaler, distributor, bottler, or importer of malt beverages, or of any other person, except the person

whose name is required to appear on the brand label.

Source Note: The provisions of this §45.42 adopted to be effective December 31, 2020, 45 TexReg 7245;

amended to be effective September 1, 2021, 46 TexReg 5182

§45.43 Verification Regarding Use of Facilities

On or before September 1 of each year, each holder of a license issued under Alcoholic Beverage Code

Chapter 62 or 63 shall verify to the commission, on a form promulgated by the commission, that no

brewing or manufacturing facility owned or controlled by the license holder is used to produce malt

beverages primarily for a specific Texas retailer or the retailer's Texas affiliates.

Source Note: The provisions of this §45.43 adopted to be effective December 31, 2020, 45 TexReg 7245;

amended to be effective September 1, 2021, 46 TexReg 5182

SUBCHAPTER E: Specific Requirements for Wine

§45.50 Certificate of Registration for Wine

(a) Except as provided by §45.4(b) of this title, no wine may be shipped into the state or sold within the

state without a Certificate of Registration issued by the commission.

(b) An applicant for a Certificate under this section must hold a winery or a nonresident seller's permit

issued by the commission.

commission along with the application fee to the commission. The application must contain the

following:

(1) If the product is eligible for a COLA:

(A) a legible copy of the COLA;

(B) an actual label that is affixed to the wine as shipped or sold, or a legible exact color copy of

a label; and

(2) If the product is not eligible for a COLA:

119

(A) an actual label that is affixed to the wine as shipped or sold, or a legible exact color copy of

the label;

(B) the TTB formulation, if required by the TTB; and

(d) Wines with an alcohol content of at least 0.5% but less than 7% are ineligible for a COLA and must

adhere to the labeling requirements contained in 21 C.F.R. Part 101; 27 C.F.R. Parts 16, 24, and 27;

21 U.S.C. §§341-350; 26 U.S.C. Ch. 51; and 27 U.S.C. §215.

Source Note: The provisions of this §45.50 adopted to be effective December 31, 2020, 45 TexReg 7425;

amended to be effective September 1, 2021, 46 TexReg 5182

§45.51 Additional Provisions for Examination of Wine

(a) It is unlawful for any producer or bottler of wine to accept as a return or to purchase or to use any

container permanently branded or imprinted with the name of another producer or bottler of any

alcoholic beverage.

(b) The alcoholic content requirements set forth in this chapter do not apply to sacramental or altar

wines where ecclesiastical regulations limit the alcoholic content to not more than 18% by volume.

Such wines must be labeled "Sacramental" or "Altar" wines.

any bottles of wine that are not protected from tampering or contamination by being sealed with

seals of a type that must be irreparably mutilated or destroyed before the bottle can be opened. Such

seals may not be made of paper.

Source Note: The provisions of this §45.51 adopted to be effective September 1, 2021, 46 TexReg 5182

SUBCHAPTER F: Advertising and Promotion

§45.101 Rebates and Coupons

(a) No license or permit holder may give or offer to give to any person any inducement with the

purchase of alcoholic beverages.

(b) No license or permit holder may give any rebate or coupon redeemable by the public for the

purchase of or for a discount on the purchase of any alcoholic beverage.

beverage, a coupon redeemable for a rebate, cents-off or for any free non-alcoholic beverage item or

product that it does not sell. A license or permit holder may, however, offer a discount, rebate, or

cents-off coupon on any non-alcohol product, except non-alcohol malt beverages and wines, that it

sells if it does not require the purchase of any alcoholic beverage.

(d) None of the above prohibits any retailer from offering a complimentary drink or drink discount as

part of a meal package, a hotel package or any airline frequent flier program or in conjunction with

any airline ticket purchase, provided, however, that no discount or complimentary beverage shall be

brand identified or redeemed by a member of the manufacturing or wholesale tier.

120

Source Note: The provisions of this §45.101 adopted to be effective January 1, 1976; amended to be

effective August 1, 1994, 19 TexReg 5629; amended to be effective September 28, 1994, 19 TexReg

7270; amended to be effective October 26, 1995, 20 TexReg 8452; amended to be effective February 14,

2022, 47 TexReg 647

§45.102 Loyalty Programs

(a) This section is authorized by and implements Alcoholic Beverage Code §§1.03, 5.31, 102.07, 102.15

and 108.04. This section applies only to members of the retail and manufacturing tiers who are

authorized to sell directly to consumers.

(b) For purposes of this section, a loyalty program is defined as a marketing program that offers certain

incentives to encourage customer retention. It does not include the use of coupons.

reimburse a retailer for a loyalty program.

(d) Retailers and holders of a manufacturing tier licenses or permits who are authorized to sell directly to

consumers may offer a loyalty program subject to the conditions in this subsection.

(1) A manufacturer authorized to sell directly to consumers may only award loyalty program

purchase points, benefits or incentives to the consumer in conjunction with transactions directly

between the manufacturer and consumer. Any purchases of the manufacturer's products through

a retailer shall not be credited to the loyalty program.

(2) The loyalty program may give consumers discounts on the purchase of alcoholic beverages and

on non-alcoholic beverage products or items sold directly to the consumer by the manufacturer

or retailer.

(3) The loyalty program may have a point accrual and redemption component in addition to

discounts. Accrued points may be redeemed on alcoholic beverages and on non-alcoholic

beverage products or items sold directly to the consumer by the manufacturer or retailer.

(4) If the license or permit holder is authorized to sell alcoholic beverages for on-premises

consumption, the license or permit holder may not give or offer to give the consumer any

alcoholic beverage in a manner that conflicts with §45.103 of this chapter (relating to On-

Premises Promotions).

Source Note: The provisions of this §45.102 adopted to be effective February 14, 2022, 47 TexReg 647

§45.103 On-Premises Promotions

(a) This rule is adopted to prohibit those practices by on-premise establishments that are reasonably

calculated to result in excessive consumption of alcoholic beverages by consumers. Such practices

constitute a manner of operation contrary to the public welfare, health and safety of the people in

violation of §§11.61(b)(7) and 61.71(a)(17) of the Alcoholic Beverage Code. Nothing in this section

shall be construed to relieve a person serving alcoholic beverages from responsibility under the

Alcoholic Beverage Code and commission rules to refrain from serving alcoholic beverages to an

intoxicated or underage consumer.

(b) Excessive consumption of alcoholic beverages shall be determined by the standard of public

intoxication articulated in §49.02 of the Penal Code.

121

consumption may not:

(1) serve, sell, or offer to serve or sell, two or more open containers of alcoholic beverages at a

price less than the number of containers actually sold or served;

(2) increase the volume of alcohol contained in a drink without increasing proportionally the price

thereof;

(3) serve or offer to serve more than one free alcoholic beverage to any identifiable segment of the

population during the course of one business day. Licensees and permittees may, however,

without prior advertising, give one free alcoholic beverage to individual consumers in

celebration of birthdays, anniversaries or similar events;

(4) sell, serve, or offer to sell or serve an undetermined quantity of alcoholic beverages for a fixed

price or "all you can drink" basis;

(5) sell, serve, or offer to sell or serve, alcoholic beverages at a reduced price to those consumers

paying a fixed "buy in" price;

(6) sell, serve, or offer to sell or serve, alcoholic beverages at a price contingent on the amount of

alcoholic beverages consumed by an individual;

(7) reduce drink prices after 11:00 p.m.;

(8) sell, serve or offer to sell or serve more than two drinks to a single consumer at one time;

(9) impose an entry fee, cover or door charge for the purpose of recovering financial losses incurred

by the licensee or permittee because of reduced or low drink prices;

(10) conduct, sponsor or participate in, or allow any person on the licensed premises to conduct,

sponsor or participate in, any game or contest to be determined by the quantity of alcoholic

beverages consumed by an individual or group, or where alcoholic beverages or reduced price

alcoholic beverages are awarded as prizes;

(11) engage in any practice, whether listed in this rule or not, that is reasonably calculated to induce

consumers to drink alcoholic beverages to excess, or that would impair the ability of the

licensee or permittee to monitor or control the consumption of alcoholic beverages by

consumers.

(d) The provisions of subsections (c)(1) through (c)(8) of this section do not apply where:

(1) the permittee or licensee has entered into an agreement under the terms of which all or a portion

of the licensed premises are utilized for a private party or a meeting of a particular organization;

(2) the event is a private party, charity event held on a hotel premises, or temporary charitable event

authorized by Alcoholic Beverage Code §109.58; or

(3) the licensed premises is a Public Entertainment Facility, as defined by Alcoholic Beverage Code

§108.73 and the person to whom the alcoholic beverages are served holds a ticket or other pass

that includes alcoholic beverages in the price of the ticket or pass.

(e) Notwithstanding the provisions of (c)(1) through (c)(7) of this section, licensees and permittees may:

122

(1) offer free or reduced-price food or entertainment at any time, provided the offer is not based on

the purchase of an alcoholic beverage;

(2) include alcoholic beverages as part of a meal or hotel/motel package;

(3) sell, serve or deliver wine by the bottle to individual consumers during the sale or service of a

meal to the consumer; or

(4) sell, serve or deliver alcoholic beverages in pitchers, carafes, buckets or similar containers to

two or more consumers at one time.

Source Note: The provisions of this §45.103 adopted to be effective November 16, 2000, 25 TexReg

11279; amended to be effective June 18, 2015, 40 TexReg 3645; amended to be effective February 17,

2021, 46 TexReg 1054

§45.105 Advertising

(a) Retailer Establishments.

(1) This subsection relates to Alcoholic Beverage Code §§108.07, 108.51, and 108.52.

(2) Except as provided in paragraph (3) of this subsection, retail-tier license and permit holders may

not advertise any price for an alcoholic beverage on any sign, billboard, marquee, or other

display located on the retailer's premises in such a manner that the price may be read by persons

outside of the premises.

(3) It is an exception to the restriction in paragraph (2) of this subsection if:

(A) the holder of a food and beverage certificate places a menu on the exterior wall of the

premises so that it can be read outside of the premises only by a pedestrian close to the

menu. To qualify for the exception granted in this paragraph, the menu visible outside of

the premises must be of the same size and in the same sized font as the menu presented to

the establishment's customers, and must show both food and beverage prices; or

(B) the holder of a wine and malt beverage retailer's permit, brewpub license, retail dealer's on-

premise license, or a license or permit authorizing sales of alcoholic beverages for pickup

under Alcoholic Beverage Code §§28.1001 or 32.155 places a menu in a drive-through

lane so that it can be read outside of the premises only by a person in a vehicle in the drive-

through lane.

(b) Private Clubs.

(1) This subsection relates to Alcoholic Beverage Code §§32.01(b), 108.51, 108.52 and 108.56.

(2) The holder of a private club registration permit or a private club exemption certificate must, in

any advertising either directly or indirectly advertising the service of alcoholic beverages,

whether or not by any specific brand name, state that the service of alcoholic beverages is only

for persons who are members of the club.

(3) The holder of a private club registration permit or a private club exemption certificate may

advertise any class of alcoholic beverages in an area where the sale of that class of alcoholic

beverages is legal for on-premises consumption, provided no other provisions of the Alcoholic

Beverage Code are violated.

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(1) This subsection relates to Alcoholic Beverage Code §§108.51, 108.52 and 108.54.

(2) Mobile advertising on vehicles is not permitted unless it meets the definition of an "electric

sign" in Alcoholic Beverage Code §108.51(3).

(3) Mobile advertising that meets the definition of an "electric sign" in Alcoholic Beverage Code

§105.51(3) and that is funded directly or indirectly by upper-tier members may not be parked

within 200 feet of a retail location for more than one hour, in order to prevent benefit to the

retailer by drawing consumer traffic to the location.

(4) Mobile advertising that meets the definition of an "electric sign" in Alcoholic Beverage Code

§108.51(3) may not be parked, maintained in, or driven through an area or zone where the sale

of alcoholic beverages is prohibited.

(d) Internet Advertising.

(1) This subsection relates to Alcoholic Beverage Code §§102.07, 102.15 and 108.07.

(2) Retailers may advertise on the internet via their website or through third party advertising,

unless the advertising is funded directly or indirectly by an upper-tier member.

(3) All retailer advertising on the internet must conform with the on-premises promotion

restrictions of §45.103 of this subchapter (relating to On-Premises Promotions), coupon and

inducement restrictions of §45.101 of this subchapter (relating to Rebates and Coupons), and

sweepstakes and giveaway restrictions of §45.106 of this subchapter (relating to Sweepstakes

and Games of Chance).

Source Note: The provisions of this §45.105 adopted to be effective November 18, 2010, 35 TexReg

10046; amended to be effective October 24, 2013, 38 TexReg 7304; amended to be effective December

16, 2019, 44 TexReg 7683; amended to be effective February 14, 2022, 47 TexReg 647

§45.106 Sweepstakes and Games of Chance

(a) This rule relates to §§102.07 and 108.061 of the Alcoholic Beverage Code.

(b) For purposes of the above referenced provisions of the Alcoholic Beverage Code, sweepstakes shall

include prizes that are awarded to consumers on the basis of random chance or on the basis of some

knowledge or skill demonstrated by the sweepstakes participant, as determined by a judge or judges

selected by the sponsor for that purpose. If a prize is a private event or other prize awarded in

accordance with Alcoholic Beverage Code §108.061(d) then subsections (k) - (q) of this section

apply.

may offer a prize to a consumer if the offer is part of a promotional sweepstakes activity. Holders of

a distributor's license may not offer a prize to a consumer if the offer is part of a promotional

sweepstakes activity. Pursuant to Alcoholic Beverage Code §108.061(d), only brewers or nonresident

brewers may offer a prize, including food, beverages, entertainment, recreation, gifts or attendance at

a private event at a permitted or licensed retailer's premises.

(d) A promotional permit holder contracted by a member of the manufacturing tier may sponsor a

sweepstakes on behalf of the manufacturing tier member.

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(e) A person affiliated with the alcoholic beverage industry may not receive a prize from a sweepstakes

promotion.

(f) A person must be 21 years of age or older to enter a sweepstakes promotion.

(g) Entry codes or entry forms on or in the caps, corks, labels, case cartons, or other materials packaged

with, within, or printed on any packages of alcoholic beverages may be used as an entry mechanism

provided:

(1) such mechanisms do not grant a consumer's right to claim winnings; and

(2) there is at the point of sale or on product packaging conspicuously displayed alternate means of

entry available to the consumers.

(h) All sweepstakes entries are prohibited from requiring a purchase of an alcoholic beverage or the

validation of any kind which requires a purchase of any alcoholic beverages.

(i) Except as specifically authorized by this section, and Alcoholic Beverage Code, §102.07 and

§108.061, it shall be unlawful for any person to sell or distribute any alcoholic beverage in a

container bearing any label, crown, or covering upon which there is printed or marked any word,

letter, figure, symbol or character representative of or suggesting any game of chance, or to use or

display any advertising so printed or marked.

(j) Except as authorized by Alcoholic Beverage Code §108.061(d) - (f), any sweepstakes promotion that

includes prizes that are to be awarded on the basis of some knowledge or skill demonstrated by the

sweepstakes participant may not be held or conducted on the licensed premises of a retailer or

private club. Sweepstakes sponsors may, with the retailer's permission, place sweepstakes entry

forms on retail premises.

(k) Except as authorized by Alcoholic Beverage Code §108.061(d) - (f), alcohol may not be awarded as

a prize.

(l) Except as authorized by Alcoholic Beverage Code §108.061(d) - (f), a sweepstakes sponsored by a

member of an upper tier may not be retailer specific and prizes may not be awarded at a retailer's

premises.

(m) A brewer or nonresident brewer may conduct a private event at a retailer's premises or award other

prizes at a retailer's premises only in accordance with the requirements of this section and Alcoholic

Beverage Code §108.061(d) - (f).

(n) A prize awarded pursuant to Alcoholic Beverage Code §108.061(d) - (f) may include food,

beverages, entertainment, recreation, gifts, or attendance at a private event for the winners of the

sweepstakes and other guests of the sponsor of the event.

(o) The name or location of the premises where a private event described by subsection (n) of this

section is held or prizes are awarded may not be mentioned in any advertising related to the

sweepstakes.

(p) A sweepstakes authorized by Alcoholic Beverage Code §108.061(d) - (f) may be conducted at a

permitted or licensed premises and the prize may be awarded to the winners at the permitted or

licensed premises at which the sweepstakes is conducted.

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(q) If a licensee or permittee conducts a private event authorized by Alcoholic Beverage Code

§108.061(d) - (f) at a retailer's premises:

(1) the licensee or permittee shall pay the retailer the fair market value for the use of the premises;

(2) the retailer must retain control of the sale and service of alcoholic beverages at the private

event;

(3) product served at the private event must be served by the retailer; and

(4) the upper-tier sponsor authorized in subsection (m) of this section may purchase product for

attendees from the retailer.

Source Note: The provisions of this §45.106 adopted to be effective September 28, 1994, 19 TexReg

7271; amended to be effective August 21, 2000, 25 TexReg 8027; amended to be effective February 23,

2006, 31 TexReg 1020; amended to be effective June 13, 2017, 42 TexReg 3002; amended to be effective

February 12, 2018, 43 TexReg 758; amended to be effective September 1, 2021, 46 TexReg 5182

§45.107 Alcoholic Beverages Used for Cooking On Premises

(a) Wine and Malt Beverage On-Premises Retailers.

(1) This subsection is promulgated pursuant to Alcoholic Beverage Code §25.09.

(2) Any alcoholic beverage that is in excess of 17 percent alcohol by volume and is used by wine

and malt beverage on-premises retailers for cooking purposes must be individually labeled as

"For Cooking Use Only."

(3) All alcoholic beverages in excess of 17 percent alcohol by volume used by wine and malt

beverage on-premises retailers for cooking purposes must be stored separately from alcoholic

beverages that are legal for sale on the premises by such retailers.

(4) No alcoholic beverage in excess of 17 percent alcohol by volume that is designated by wine and

malt beverage on-premises retailers for cooking purposes may be sold, served, or consumed in

liquid form by staff or customers of the retailer.

(5) All receipts for the purchase by wine and malt beverage on-premises retailers of alcoholic

beverages in excess of 17 percent alcohol by volume must be retained on the premises until the

bottle is empty and disposed of.

(b) Mixed Beverage Permittees.

(1) This subsection is promulgated pursuant to Alcoholic Beverage Code §28.06.

(2) Alcoholic beverages used for cooking purposes may be purchased by a mixed beverage

permittee from a local distributor's permittee or may be purchased at retail from a licensed

retailer. All receipts for the purchase of alcoholic beverages used for cooking purposes and

purchased by a mixed beverage permittee at retail without a tax stamp must be retained on the

premises until the bottle is empty and disposed of.

(3) An alcoholic beverage used for cooking purposes and purchased by a mixed beverage permittee

at retail without a tax stamp must be individually labeled as "For Cooking Use Only."

126

(4) All alcoholic beverages used for cooking purposes and purchased by a mixed beverage

permittee at retail without a tax stamp must be stored separately from alcoholic beverages

purchased from a local distributor's permittee.

(5) No alcoholic beverage used for cooking purposes and purchased by a mixed beverage permittee

at retail without a tax stamp may be sold, served or consumed in liquid form by staff or

customers of the permittee.

Source Note: The provisions of this §45.107 adopted to be effective November 18, 2010, 35 TexReg

10046; amended to be effective April 18, 2017, 42 TexReg 2004; amended to be effective February 14,

2022, 47 TexReg 647

§45.109 Restocking and Rotation of Alcoholic Beverages

(a) General.

(1) This rule is enacted pursuant to §102.20 and Chapter 105 of the Alcoholic Beverage Code.

(2) This rule applies to members of the wholesale tier and those members of the manufacturing tier

authorized to sell to retailers for all beverages.

(b) Restocking. Licensees and permittees subject to this rule may, at retail premises, with permission of

the retailer, stock, rotate, affix prices, and reset or rearrange alcoholic beverages they sell, provided

products of other industry members are not altered or disturbed,

(1) organize and construct displays accessible by the consumer of alcoholic beverages they sell;

(2) move products of other industry members that are arranged in displays accessible to the

consumer (e.g., floor or end cap displays) in order to perform the services allowed by this

subsection. Movement of products under this subsection is not considered restocking under

subsection (b) of this section; and

(3) provide retailers with temporary display enhancement items such as televisions and grills,

which may be used only for product promotion. Temporary display enhancement items must be

returned to the manufacturer or wholesale tier member that provided it as soon as practicable

after the display is dismantled.

(d) The activities permitted by subsections (b) and (c) of this section may only be performed during the

hours when the sale or delivery of specific alcoholic beverages are legal and may also be performed

for malt beverages and wine from 5:00 a.m. to 12:00 noon on Sunday.

(e) Licensees and permittees subject to this rule may provide shelf plans or schematics to retailers.

(f) The activities permitted by subsections (b) and (c) of this section must be proportional to the

retailer's business volume and demand.

(g) Except for time spent in the standard delivery process and additional service time prescribed by the

distributor under subsection (h) of this section, restocking and other merchandising services

performed by a distributor that exceed 40 hours per week per retail premises shall constitute an

impermissible service or thing of value under Chapter 102 of the Alcoholic Beverage Code.

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Delivery, pre-sale, and product-ordering activities are not considered merchandising for purposes of

this subsection.

(h) In special circumstances such as major holidays, new product rollouts, and major events, only the

distributor may determine whether and how much additional service time beyond 40 hours per

premises per week is reasonably necessary for activities permitted by subsections (b) and (c) of this

section.

Source Note: The provisions of this §45.109 adopted to be effective January 2, 1998, 22 TexReg 12748;

amended to be effective September 17, 1998, 23 TexReg 9339; amended to be effective February 14,

2022, 47 TexReg 647

§45.110 Inducements

(a) General. This section is enacted pursuant to Alcoholic Beverage Code §§102.04, 102.07, 102.12,

102.15 and 108.06.

(b) Unless otherwise specified, this section applies to members of the manufacturing and wholesale tiers

for all alcoholic beverages.

that place retailer independence at risk constitute an illegal inducement as that term is used in the

Alcoholic Beverage Code. Examples of unlawful inducements are:

(1) purchasing or renting shelf, floor or warehouse space from or for a retailer;

(2) requiring a retailer to purchase one product in order to be allowed to purchase another product

at the same time;

(3) providing or purchasing, in whole or in part, any type of advertising benefitting any specific

retailer, if the advertising is a result of unauthorized activity;

(4) furnishing food and beverages, entertainment or recreation to retailers or their agents or

employees except under the following conditions:

(A) the value of food, beverages, entertainment and recreation shall not exceed $1,000.00 per

person on any one occasion; and

(B) food, beverages, entertainment and recreation provided may only be consumed or enjoyed

in the immediate presence of both the providing upper tier member and the receiving retail

tier member; and

upper tier members may furnish transportation; and

(D) food, beverages, recreation and entertainment may also be provided during attendance at a

convention, conference, or similar event so long as the primary purpose for the attendance

of the retailer at such event is not to receive benefits under this section; and

(E) each upper tier member shall keep complete and accurate records of all expenses incurred

for retailer entertainment for two years.

(5) furnishing of service trailers with equipment to a retailer;

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(6) furnishing transportation or other things of value to organized groups of retailers. Members of

the manufacturing and wholesale tiers may advertise in convention programs, sponsor functions

or meetings and other participate in meetings and conventions of trade associations of general

membership; and

(7) except as otherwise allowed under §45.41 of this chapter (relating to Additional Reasons for

Denial of Registration of a Malt Beverage Product), marking, branding or labeling a malt

beverage with:

(A) the tradename or trademark of any retailer permittee or licensee or any private club

registration permittee; or

(B) a tradename or trademark that is owned, licensed, or exclusively used by any retailer

permittee or licensee or any private club registration permittee.

(d) Criteria for determining retailer independence. The following criteria shall be used as a guideline in

determining whether a practice or pattern of conduct places retailer independence at risk. The

following criteria are not exclusive, nor does a practice need to meet all criteria in order to constitute

an inducement.

(1) The practice restricts or hampers the free economic choice of a retailer to decide which products

to purchase or the quantity in which to purchase them for sale to consumers.

(2) The retailer is obligated to participate in a program offered by a member of the manufacturing

or wholesale tier in order to obtain that member's product.

(3) The retailer has a continuing obligation to purchase or otherwise promote the industry member's

product.

(4) The retailer has a commitment not to terminate its relationship with a member of the

manufacturing or wholesale tier with respect to purchase of that member's products.

(5) The practice involves a member of the manufacturing or wholesale tier in the day-to-day

operations of the retailer. For example, the member controls the retailer's decisions on which

brand of product to purchase, the pricing of products, or the manner in which the products will

be displayed on the retailer's premises.

(6) The practice is discriminatory in that it is not offered to all retailers in the local market on the

same terms without business reasons present to justify the difference in treatment.

Source Note: The provisions of this §45.110 adopted to be effective January 2, 1998, 22 TexReg 12750;

amended to be effective December 20, 1998, 23 TexReg 12661; amended to be effective August 12, 2014,

39 TexReg 6043; amended to be effective February 14, 2022, 47 TexReg 647

§45.111 Advertising Signs at Charitable or Civic Events

(a) This rule is enacted pursuant to §108.53(d) of the Alcoholic Beverage Code.

(b) At a charitable or civic event of a temporary nature, members of the alcoholic beverage industry may

place signs or other advertising materials indicating their participation in, or sponsorship of, the

charitable or civic event.

129

by the charity or civic endeavor.

(d) No consideration of any kind may be given directly or indirectly, in any form or degree, to any

retailer for the placement of any sign.

Source Note: The provisions of this §45.111 adopted to be effective September 17, 1998, 23 TexReg

9340; amended to be effective February 14, 2022, 47 TexReg 647

§45.112 Use of Brand Names and Insignia

(a) This section is promulgated pursuant to Alcoholic Beverage Code §§102.07 and 108.03.

(b) Advertising of an alcoholic beverage on caps, regalia, or uniforms worn by an employee of a license

or permit holder in the manufacturing or distribution tier is limited to:

(1) the name and address of the license or permit holder; and

(2) the brand names, logos, and slogans that appear on the container labels approved by the

executive director for such alcoholic beverage.

game, sport, athletic contest or revue, when the participant is sponsored by a brewer, distributor,

distiller, or winery, is limited to:

(1) the name and address of the brewer, distributor, distiller, or winery; and

(2) the brand names, logos, and slogans that appear on the container labels approved by the

executive director for such alcoholic beverage.

(d) Business cards and stationery bearing brand insignia may be used by licensees and permittees except

retail licensees and permittees. Such business cards and stationery may contain:

(1) the name and address of the user;

(2) the name and address of the firm represented;

(3) the brand insignia of any alcoholic beverage that the firm represents or the user is licensed to

sell; and

(4) any other logo, slogan, or trademark that appears on the approved label for such alcoholic

beverage, or which slogan or trademark has otherwise been approved by the executive director.

(e) Advertising of alcoholic beverages on the equipment or service or delivery vehicles of a member of

the manufacturing or wholesale tiers is limited to the brand names or logos of the alcoholic

beverages sold or represented by the manufacturer, local distributor, or wholesaler; firm names and

addresses of the manufacturer, local distributor, or wholesaler; and slogans approved by the

executive director.

(f) Menu cards, folders, or sheets advertising malt beverages may be sold to a holder of a retail license

or permit by a brewer or brewpub authorized to sell directly to retailers or by a distributor as

promotional items in accordance with limitations set forth in §45.113(c) of this subchapter (relating

to Gifts, Services and Sales). The holder of the retail license or permit shall bear all costs of listing

130

any food item on the menu cards, folders, or sheets unless the food item is mentioned as part of a

recommended food and drink pairing.

(g) Menu cards, folders, or sheets advertising wine or distilled spirits may be furnished, as an advertising

specialty, to a holder of a retail license or permit by a member of the manufacturing or wholesale tier.

Printing costs of such menu cards, folders, or sheets may not exceed the applicable advertising

specialty limitations set forth in §45.117 of this subchapter (relating to Gifts and Advertising

Specialties). The holder of the retail license or permit shall bear all costs of listing any food item on

the menu cards, folders, or sheets unless the food item is mentioned as part of a recommended food

and drink pairing.

Source Note: The provisions of this §45.112 adopted to be effective January 1, 1976; amended to be

effective September 18, 1978, 3 TexReg 3096; amended to be effective August 1, 1994, 19 TexReg 5630;

amended to be effective August 16, 1999, 24 TexReg 6289; amended to be effective November 18, 2010,

35 TexReg 10047; amended to be effective February 14, 2022, 47 TexReg 647

§45.113 Gifts, Services and Sales

(a) General.

(1) This rule is promulgated pursuant to §108.04 of the Alcoholic Beverage Code to relax certain

restrictions and prohibitions set forth in §§102.14, 102.15 and 108.06 of the code.

(2) This rule applies to buyers, sellers and consumers of malt beverages.

(b) Gifts to Consumers. Brewers, nonresident brewers, and distributors may furnish novelty items and

malt beverages to consumers.

(1) Novelty items are things designed to advertise or promote a specific product or brand. Such

items may have a utilitarian function in addition to product promotion.

(2) Such items may not exceed a value of $1.00 per unit wholesale cost.

(3) Malt beverages may be purchased for consumers provided that such beverages are consumed at

retail licensed premises in the presence of the purchaser. Such purchases shall not be excessive.

All members of the manufacturing and distribution tiers participating in promotions authorized

by this paragraph must be an employee or agent of a brewer, nonresident brewer, or distributor

or a promotional permit holder contracting with a brewer or nonresident brewer.

(4) The executive director may grant specific approval for sampling tests designed to determine

consumer taste preferences. The executive director may impose such conditions as they deem

necessary.

(5) Brewers and distributors may, as a social courtesy, give malt beverages and other things of value

to unlicensed persons who are not employed or affiliated with the holder of a retail license or

permit.

promotional items to retailers.

(1) Promotional items are things designed to promote a specific product or brand and are further

designed for use by the consumer, either on or off the retailer's premises.

131

(2) Promotional items sold must bear a manufacturer's logo, brand or product name.

(3) Promotional items may not be sold for less than the item producer's regularly published

wholesale price. Payment must be in cash, paid on or before delivery.

(d) Signs provided to retailers.

(1) Distributors and brewers authorized to sell to retailers may furnish, give or sell interior signs to

retailers.

(2) A sign is a thing whose primary purpose is the advertisement of a brand or product or the price

thereof.

(3) A sign furnished by a distributor or brewer authorized to sell to retailers may not bear the name,

logo or trademark of a specific retailer.

(4) No brewer or distributor may paint, improve or remodel a retailer's buildings or parts of

buildings, inside or out, or finance any improvements thereto.

(e) Services provided to retailers.

(1) Distributors and brewers authorized to sell to retailers may service and repair promotional items

and signs furnished or sold under the provisions of this rule.

(2) Distributors and brewers may:

(A) furnish meeting rooms to retailers on the brewer's or distributor's licensed premises. In no

event shall anything be furnished to retailers except samples of the brewer's or distributor's

product or food provided as a courtesy in accompaniment to such samples; and

(B) furnish and install shanks, washers, hose and hose connections, tap rods, tap markers, and

coil cleaning service necessary for the proper delivery and dispensing of draft malt

beverages.

(f) Gifts to unlicensed organizations. Brewers, nonresident brewers, and distributors may donate money

or other things of value, and brewers and distributors may donate malt beverages, to unlicensed

civic, religious or charitable organizations, subject to the following conditions:

(1) Malt beverages may only be given for consumption in a wet area.

(2) Advertising of events sponsored by organizations receiving donations shall include promotion

of the organization sponsor or cause in a manner at least equal to or greater than the advertising

of the industry donor.

(3) Distributors and authorized brewers may furnish malt beverage dispensing equipment for use at

temporary events, provided that such equipment may not be given in exchange for an exclusive

sales privilege.

(4) Brewers, distributors and their employees and agents may not serve or dispense malt beverages

at temporary events.

(5) "Unlicensed" means not having a permit or license authorizing the sale or service of alcoholic

beverages.

132

Source Note: The provisions of this §45.113 adopted to be effective January 2, 1998, 22 TexReg 12752;

amended to be effective November 12, 1998, 23 TexReg 11342; amended to be effective November 15,

2012, 37 TexReg 8974; amended to be effective September 1, 2021, 46 TexReg 5182

§45.117 Gifts and Advertising Specialties

(a) General.

(1) This section is enacted pursuant to Alcoholic Beverage Code §§102.07(b), 102.07(d), 108.042

and 109.58.

(2) This section applies to buyers, sellers, and consumers of liquor.

(b) Gifts to consumers. Holders of distiller's and rectifier's, winery, nonresident seller's, and wholesaler's

permits may furnish gifts to consumers.

(1) The gifts shall be offered consistently with the restrictions contained in Alcoholic Beverage

Code §102.07(d).

(2) The items given may be novelty items of limited value. Such items shall be designed to promote

a specific product or brand and may have a utilitarian function in addition to product promotion.

(3) Liquor may be purchased for consumers provided that such beverages are consumed on retail

licensed premises in the presence of the purchaser. Such purchases shall not be excessive. All

members of the manufacturing and wholesaler tiers participating in promotions authorized by

this paragraph must be an employee or agent of a member of the manufacturing tier, a

distributor, or a promotional permit holder.

(4) Holders of distiller's and rectifier's, winery, nonresident seller's, and wholesaler's permits may,

as a social courtesy, provide liquor or other things of value to unlicensed persons who are not

employed or affiliated with the holder of a retail license or permit.

permits may furnish advertising specialties to retailers.

(1) Advertising specialties are things designed to advertise or promote a specific product or brand.

Such items may have a utilitarian function in addition to product promotion.

(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) 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) Signs provided to retailers.

(1) Wholesalers may furnish, give or sell interior signs to retailers.

(2) A sign is a thing whose primary purpose is the advertisement of a brand or product or the price

thereof.

(3) A sign furnished by a wholesaler may not bear the name, logo or trademark of a specific retailer.

133

(4) No wholesaler may paint, improve, or remodel a retailer's buildings or parts of buildings, inside

or out, or finance any improvements thereto.

(e) Service provided to retailer.

(1) Holders of distiller's and rectifier's, winery, nonresident seller's and wholesaler's permits may

service and repair items furnished to retailers under the provisions of this rule.

(2) Holders of distiller's and rectifier's, winery, nonresident seller's and wholesaler's permits may

furnish meeting rooms to retailers for purposes of product promotions. In no event shall

anything be furnished to retailers except samples of the permit holder's product or food provided

as a courtesy in accompaniment to such samples.

(3) The holder of a wholesaler's permit, or the permit holder's employee or agent, may furnish and

install shanks, washers, hose and hose connections, tap rods, tap markers, and coil cleaning

service necessary for the proper delivery and dispensing of wine.

(f) Gifts to Unlicensed Organizations. Holders of distiller's and rectifier's, winery, nonresident seller's

and wholesaler's permits may donate money, liquor or other things of value to unlicensed civic,

religious, or charitable organizations.

(1) Liquor may only be given for consumption in wet areas.

(2) Advertising of events sponsored by organizations receiving donations shall include promotion

of the organization sponsor or cause in a manner at least equal to or greater than the advertising

of the industry donor.

(3) "Unlicensed" means not having a permit or license authorizing the sale or service of alcoholic

beverages.

Source Note: The provisions of this §45.117 adopted to be effective January 2, 1998, 22 TexReg 12755;

amended to be effective September 17, 1998, 23 TexReg 9340; amended to be effective January 2, 2000,

24 TexReg 11745; amended to be effective October 24, 2004, 29 TexReg 9674; amended to be effective

August 21, 2011, 36 TexReg 5212; amended to be effective September 1, 2021, 46 TexReg 5182;

amended to be effective October 17, 2022, 47 TexReg 6873; amended to be effective February 12, 2024,

49 TexReg 659

§45.120 Co-Packaging of Alcoholic Beverage

(a) This section relates to Alcoholic Beverage Code §§102.07(a)(5) and 108.035.

(b) As used in this section:

(1) "Co-pack" means a package:

(A) originally bundled and supplied by a distiller, brewer, rectifier, wholesaler, class B

wholesaler, nonresident seller, or winery (or an agent, employee or servant of any of them);

(B) containing an alcoholic beverage and another item;

(D) where the additional items have no value or benefit to the retailer other than that of having

the potential of attracting purchases and promoting sales.

134

(2) "Naked bottle" means an alcoholic beverage sold by a wholesaler that is similar in all regards to

the alcoholic beverage contained in a co-pack sold by that wholesaler, except that it is not

packaged with any other item.

packaged item and sell it by any means other than the way it was originally packaged when received.

(d) A retailer must price and sell a co-pack at a cost that complies with Alcoholic Beverage Code

§§102.07(a)(5) and 108.035, as applicable.

(e) Nothing in this section precludes a supplier from differentiating in the price of a naked bottle and co-

pack during the packaging phase of a co-pack by adding cost to the co-pack and increasing the

baseline price of the co-pack.

(f) A retailer may not be forced, induced or persuaded to purchase a prescribed number of co-packs in

order to purchase naked bottles, nor may a retailer be forced, induced or persuaded to purchase a

prescribed number of naked bottles in order to purchase co-packs.

Source Note: The provisions of this §45.120 adopted to be effective August 1, 1994, 19 TexReg 5631;

amended to be effective November 18, 2010, 35 TexReg 10048; amended to be effective October 24,

2013, 38 TexReg 7304; amended to be effective February 14, 2022, 47 TexReg 647

§45.121 Advertising Standards Required

No person, directly or indirectly, or through an affiliate, shall publish or disseminate or cause to be

published or disseminated by radio broadcast, or in any newspaper, periodical, or other publication, or by

any sign or outdoor advertisement, or any other printed or graphic matter, including via the internet, any

advertisement of alcoholic beverages if such advertisement is in this state, is calculated to induce sales in

this state, or is disseminated by mail or e-mail in this state, unless such advertisement is in conformity

with this chapter. This chapter does not apply to the publisher of any newspaper, periodical or other

publication, or radio broadcaster, unless such publisher or radio broadcaster is a permittee.

Source Note: The provisions of this §45.121 adopted to be effective September 1, 2021, 46 TexReg 5182

§45.122 Prohibited Statements

(a) An advertisement for an alcoholic beverage shall not contain:

(1) any statement that is false or untrue in any particular or that irrespective of falsity, directly or by

ambiguity, omission, or inference, or by the addition of irrelevant, scientific, or technical matter,

tends to create a misleading impression;

(2) any statement that is disparaging of a competitor's product;

(3) any statement, design, device, or representation that is obscene or indecent;

(4) any statement, design, device, or representation of or relating to analyses, standards or tests,

irrespective of falsity, that the administrator finds likely to mislead the consumer;

(5) any statement of, or any statement likely to be interpreted as a statement regarding intoxicating

qualities; nor

135

(6) any statement, design, device, or representation of or relating to any guarantee, irrespective of

falsity, that the executive director finds to be likely to mislead the consumer. Enforceable money

back guarantees are not prohibited.

(b) Statements inconsistent with labeling. The advertisement shall not contain any statement concerning

a brand or lot of alcoholic beverage that is prohibited from appearing on the label or inconsistent

with any statement on the label thereof.

representing that the use of any alcoholic beverage has curative or therapeutic effect, if such

statement is untrue in any particular, or tends to create a misleading impression.

(d) Place of origin. The advertisement shall not represent that the alcoholic beverage was manufactured

in or imported from a place or country other than that of their actual origin, or was produced or

processed by one who was not in fact the actual producer or processor.

(e) Confusion of brands. Two or more different brands or lots of alcoholic beverages shall not be

advertised in one advertisement (or in two or more advertisements in one issue of a periodical or

newspaper, or in one piece of other written, printed, or graphic matter) if the advertisement tends to

create the impression that representations made as to one brand or lot apply to the other or others,

and if as to such latter the representations contravene any provisions of this regulation or are in any

respect untrue.

(f) Flags, seals, coats of arms, crests, and other insignia.

(1) An advertisement or product label shall not contain any statement, design, device, or pictorial

representation that relates to or is capable of being construed as relating to the armed forces of

the United States, or the American flag, or the Texas flag, or any emblem, seal, insignia, or

decoration associated with such flag or armed forces; nor shall any advertisement contain any

statement, design, device, or pictorial representation of or concerning any flag, seal, coat of

arms, crest, or other insignia unless an exception to this rule is granted by the executive director

under subsection (2) of this section.

(2) The executive director, in their sole discretion, may authorize an exception to subsection (1) of

this section upon written request. The executive director shall authorize an exception if the

advertisement or product label is not likely to mislead or capable of misleading the consumer to

believe that the product has been endorsed, made, or used by, or produced for or under the

supervision of, or in accordance with the specifications of the government, organization, family,

or individual with whom such flag, seal, coat of arms, crest, or insignia is associated.

(g) An advertisement for an alcoholic beverage product shall not contain any statement that the product

is distilled, blended, made, bottled, or sold under or in accordance with any municipal, state, federal,

or foreign authorization, law or regulation, unless such statement appears in the manner authorized

by this chapter. If a municipal, state or federal permit number is stated, such permit number shall not

be accompanied by any additional statements relating thereto.

(h) No alcoholic beverage possessed for the purpose of sale in this state shall be advertised for sale as

the result of fire, smoke, or water damage to the label, container or contents.

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(i) Subsections (b) and (h) of this section do not apply to the institutional advertising of wines inside

any building in an area where the sale of such wines is legal, provided that the advertising has been

approved by the executive director.

Source Note: The provisions of this §45.122 adopted to be effective September 1, 2021, 46 TexReg 5182

§45.123 Required Statements

(a) Responsible advertiser.

(1) An advertisement not exempt under subsection (a)(2) of this section shall state the name and

address of the person responsible for its publication or broadcast. Street number and name may

be omitted in the address.

(2) If an advertisement refers to a general malt beverage or wine line or all of the malt beverage or

wine products of one company, whether by the company name or by the brand name common to

all the products in the line, the only mandatory information necessary is the name and address

of the responsible advertiser. This exception does not apply where only one type of malt

beverage or wine is marketed under the specific brand name advertised.

(b) Class and type. The advertisement shall contain a conspicuous statement of the class to which the

product belongs and the type thereof corresponding with the statement of class and type that is

required to appear on the label of the product.

Source Note: The provisions of this §45.123 adopted to be effective September 1, 2021, 46 TexReg 5182

§45.124 Lettering

Statements required under this subchapter to appear in any written, printed, or graphic advertisement shall

be in lettering or type of a size sufficient to render them conspicuous and readily legible.

Source Note: The provisions of this §45.124 adopted to be effective September 1, 2021, 46 TexReg 5182

§45.125 Cooperative Advertising by Package Stores

It is unlawful for any person holding a package store permit to share the same advertisement of distilled

spirits with any other person or persons holding a package store permit or permits, provided, however,

that members of a partnership or corporation may share the same distilled spirits advertisement when said

distilled spirits are offered for sale under the permit or permits held by the said partnership or corporation.

Source Note: The provisions of this §45.125 adopted to be effective September 1, 2021, 46 TexReg 5182

§45.126 Additional Mandatory Statements for Distilled Spirits

(a) Alcoholic content. The alcoholic content shall be stated by percentage by volume for distilled spirits

except that it may be stated in proof of cordials and liqueurs, cocktails, highballs, and such other

specialties as may be specified by the administrator.

(b) Percentage of neutral spirits and name of commodity.

(1) In the case of distilled spirits (other than cordials, liqueurs, and specialties) produced by

blending or rectification, if neutral spirits have been used in the production thereof, there shall

be stated the percentage of neutral spirits so used and the name of the commodity from which

137

such neutral spirits have been distilled. The statement of percentage and the name of the

commodity shall be made in substantially the following form: "_____% neutral spirits distilled

from _____ (insert grain, cane products, or fruit, as appropriate)"; or "_____% neutral spirits

(vodka) distilled from _____ (insert grain, cane products, or fruit, as appropriate)"; or "_____%

grain (cane products), (fruit) neutral spirits"; or "_____% grain spirits."

(2) In the case of neutral spirits or of gin produced by a process of continuous distillation, there

shall be stated the name of the commodity from which such neutral spirits or gin has been

distilled. The statement of the name of the commodity shall be made in substantially the

following form: "distilled from grain," or "distilled from cane products," or "distilled from

fruit."

(3) Retailers are exempt from the provisions of this subsection.

the brand name of the distilled spirits offered for sale.

Source Note: The provisions of this §45.126 adopted to be effective September 1, 2021, 46 TexReg 5182

§45.127 Additional Prohibited Statements for Distilled Spirits

(a) An advertisement for a distilled spirit shall not contain any statement, design, or device directly or by

implication concerning age or maturity of any brand or lot of the product unless a statement of age

appears on the label of the advertised product.

(b) When any such statement, design, or device concerning age or maturity is contained in any

advertisement, it shall include (in direct conjunction therewith and with substantially equal

conspicuousness) all parts of the statement, if any, concerning age and percentages required by the

TTB to be made on the label.

a statement of age on the label or an advertisement for any rum, tequila or mescal that has been aged

for not less than four years may, however, contain an inconspicuous, general representation as to age,

maturity or other similar representation even though a specific age statement does not appear on the

label of the advertised product and in the advertisement itself.

Source Note: The provisions of this §45.127 adopted to be effective September 1, 2021, 46 TexReg 5182

SUBCHAPTER G: Regulation of Cash and Credit Card Transactions

§45.130 Credit Law and Delinquent List

(a) Purpose. This section implements §§102.32, 11.61(b)(2), 11.66, and 109.64 of the Texas Alcoholic

Beverage Code (Code).

(b) Definitions. For purposes of this section, the following terms have the definitions given in this

subsection.

(1) Alcoholic beverage--As used in this section includes only liquor, as that term is defined in §1.04

of the Code.

138

(2) Cash equivalent--A financial transaction or instrument that is not conditioned on the availability

of funds upon presentment, including money order, cashier's check, certified check or

completed electronic funds transfer.

(3) Delinquent payment--A financial transaction or instrument that fails to provide payment in full

or is returned to the Seller as unpaid for any reason, on or before the fourth business day after

the date that payment is due under §102.32(c) of the Code, or is returned to the Seller as unpaid

for any reason after the fourth business day after the date payment is due under §102.32(c) of

the Code. A delinquent payment also occurs in the event the Retailer fails to submit payment on

or before the fourth business day after the date that payment is due under §102.32(c) of the

Code.

(4) Event--A financial transaction or instrument that fails to provide payment to a Retailer and

results in a Retailer making one or more delinquent payments to one or more Sellers.

(5) Incident--A single delinquent payment. Failure to submit payment also constitutes an incident.

(6) Retailer--A package store permittee, wine only package store permittee, private club permittee,

private club exemption certificate permittee, mixed beverage permittee, or other Retailer, and

their agents, servants and employees.

(7) Seller--As used in this section includes:

(A) the holder of a wholesaler's permit or a general class B wholesaler's permit

(B) the holder of a winery permit;

is not the sale of a malt beverage to a mixed beverage permittee or a nonprofit entity

temporary event permittee; and

(D) the agents, servants and employees of a permit or license holder identified in

subparagraphs (A) - (C) of this paragraph.

(1) A delivery of alcoholic beverages by a Seller to a Retailer must be accompanied by an invoice

of sale showing the name and permit number of the Seller and the Retailer, a full description of

the alcoholic beverages, the price and terms of sale, and the place and date of delivery.

(2) The Seller's copy of the invoice must be signed by the Retailer to verify receipt of alcoholic

beverages and accuracy of invoice.

(3) The Seller and Retailer must retain invoices in compliance with the requirements of §206.01 of

the Code.

(4) Invoices may be created, signed and retained in an electronic or web-based inventory system,

and may be retained on or off the licensed premise, as long as the records can be accessed from

the licensed premises and made available to the commission during normal business hours.

(d) Late Payment Violation.

139

(1) A payment is late if it is not received by the Seller on or before the date that payment is due

under §102.32(c) of the Code. If the Seller receives payment by mail within four days of the

date that payment is due under §102.32(c) of the Code, the payment is not late.

(2) A Retailer shall not make a late payment to a Seller for the delivery of alcoholic beverages. A

payment is late and a violation accrues to the Retailer according to paragraph (1) of this

subsection.

(3) A Retailer who violates this section must pay the amount due, and a Seller shall accept payment,

only in cash or cash equivalent financial transaction or instrument.

(4) A Retailer who violates this section shall be placed on the Delinquent List unless the delinquent

account is paid within four days of the date that payment is due under §102.32(c) of the Code.

(5) A Retailer whose permit or license expires or is cancelled for cause, voluntarily cancelled,

suspended or placed in suspension while on the Delinquent List is disqualified from applying

for or being issued an original or renewal permit or license until all delinquent accounts are paid

in full. For purposes of this section, the Retailer includes all persons who were owners, officers,

directors and shareholders of the Retailer at the time the delinquency occurred.

(e) Reporting Violation and Payment; Failure to Report.

(1) A report of a violation or payment must be submitted electronically to the commission on the

commission's web-based reporting system at https://www.tabc.texas.gov.

(2) A Seller who cannot access the commission's web-based reporting system must either:

(A) submit a request for exception to submit reports by paper; or

(B) contract with another Seller or service provider to make electronic reports on behalf of the

Seller

(3) All reports of violations or payment under this subsection must be made to the commission

before the date the Delinquent List is published.

(4) A Seller who fails to report a violation or a payment as required by this subsection is in

violation of this section.

(f) Prohibited Sales and Delivery.

(1) Sellers are prohibited from selling or delivering alcoholic beverages to any licensed location of

a Retailer who appears on the commission's Delinquent List from the date the violation appears

on the Delinquent List until the Release Date on the Delinquent List, or until the Retailer no

longer appears on the Delinquent List.

(2) A sale or delivery of alcoholic beverages prohibited by this section is a violation of this section.

(g) Prohibited Purchase or Acceptance.

(1) A Retailer who violates subsection (d) of this section is prohibited from purchasing or accepting

delivery of alcoholic beverages from any source at any of Retailer's licensed locations from the

date any violation occurs until all delinquent accounts are paid in full.

140

(2) A prohibited purchase or acceptance of a delivery of alcoholic beverages is a violation of this

section.

(h) Exception.

(1) A Retailer who wishes to dispute a violation of this section or inclusion on the commission's

Delinquent List based on a good faith dispute between the Retailer and the Seller may submit a

detailed electronic or paper written statement with the commission with an electronic or paper

copy to the Seller explaining the basis of the dispute.

(2) The written statement must be submitted with documents and/or other records tending to

support the Retailer's dispute, which may include:

(A) a copy of the front and back of the cancelled check of Retailer showing endorsement and

deposit by Seller;

(B) bank statement or records of bank showing funds were available in the account of Retailer

on the date the check was delivered to Seller; and

(i) bank error or circumstances beyond the control of Retailer caused the check to be

returned to Seller unpaid; or

(ii) the check cleared Retailer's account and funds were withdrawn from Retailer's

account in the amount of the check.

(3) A disputed delinquent account will not be removed from the Delinquent List until documents

and/or other records tending to support the Retailer's dispute are submitted to the commission.

(4) The Retailer must immediately submit an electronic notice of resolution of a dispute to the

commission under this subsection.

(i) Penalty for Violation. An action to cancel or suspend a permit or license may be initiated under

§11.61(b)(2) of the Code for one or more violations of this section. The commission may consider

whether a violation is the result of an event or incident when initiating an action under this

subsection.

(j) Delinquent List.

(1) The Delinquent List is published bi-monthly on the commission's public web site at

https://www.tabc.texas.gov. An interested person may receive the Delinquent List by electronic

mail each date the Delinquent List is published by registering for this service online.

(2) Except as otherwise specified in subsection (k) of this section, the Delinquent List will be

published on the fifth business day after the 25th day of the month for purchases made from the

1st to the 15th day of that month and for which payment was not received by the fourth business

day after the 25th day of that month. Except as otherwise specified in subsection (k) of this

section, the Delinquent List will be published on the fifth business day after the 10th day of the

next month for purchases made between the 16th and the last day of the preceding month and

for which payment was not received by the fourth business day after the 10th day of the next

month.

141

(3) The Delinquent List is effective at 12:01 A.M. on the date of publication.

(4) The Delinquent List is updated hourly to reflect reports of payments submitted.

(k) Calculation of Time. A due date under this section or §102.32(c) of the Code or the publication date

of the Delinquent List that would otherwise fall on a Saturday, a Sunday, a state or federal holiday

(unless the commission is required to be open for business), or a standard Federal Reserve bank

holiday will be the next regular business day. For purposes of this section, a business day means a

day which is not a Saturday, a Sunday, a state or federal holiday (unless the commission is required

to be open for business), or a standard Federal Reserve bank holiday.

Source Note: The provisions of this §45.130 adopted to be effective September 1, 2021, 46 TexReg 5182

§45.131 Cash Law

(a) Purpose. This rule implements §102.31 of the Texas Alcoholic Beverage Code (Code).

(b) Definitions. For purposes of this section, the following terms have the meaning given in this

subsection.

(1) Cash equivalent--A financial transaction or instrument that is not conditioned on the availability

of funds upon presentment, including money order, cashier's check, certified check or

completed electronic funds transfer.

(2) Cash payment--United States currency and coins, or a cash equivalent financial transaction or

instrument.

(3) Event--A financial transaction or instrument that fails to provide payment to a Retailer and

results in one or more incidents to one or more Sellers.

(4) Incident--One financial transaction or instrument made by a Retailer that fails to provide

payment in full for malt beverages delivered by a Seller to the Retailer. Failure to submit

payment also constitutes an incident.

(5) Malt beverages--a fermented beverage of any name or description containing one-half of one

percent or more of alcohol by volume, brewed or produced from malt, in whole or in part, or

from any malt substitute.

(6) Retailer--A license or permit holder and their agents, servants and employees, authorized to sell

malt beverages for on- or off-premise consumption to an ultimate consumer.

(7) Seller--As used in this section means:

(A) the holder of a local distributor's permit when selling malt beverages to a mixed beverage

permittee or nonprofit entity temporary event permittee, or an agent, servant, or employee

of a local distributor's permit holder when selling malt beverages to such permittees;

(B) the holder of a brewpub license when selling malt beverages to Retailers;

(D) the holder of a brewer's self- distribution license under Chapter 62A of the Code; and

142

(E) the agents, servants, and employees of a license or permit holder identified in

subparagraphs (A) - (D) of this paragraph when selling malt beverages to a Retailer.

of sale showing the name and permit number of the Seller and the Retailer, a full description of the

malt beverages, the price, the place and date of delivery.

(1) The Seller's copy of the invoice must be signed by the Retailer to verify receipt of malt

beverages and accuracy of invoice and by the Seller to acknowledge payment was received on

or before the delivery.

(2) The Seller and Retailer must retain invoices for four years from the date of delivery.

(3) Invoices may be created, signed and retained in an electronic or web-based inventory system,

and may be retained on or off the licensed premise, as long as the records can be accessed from

the licensed premise and made available to the commission during normal business hours.

(d) Cash Payment Violation. A Retailer who fails to make a cash payment to a Seller for the delivery of

malt beverages violates this section unless an exception applies.

(1) A Retailer who violates this section must pay the amount due, and a Seller may accept payment,

only in cash or cash equivalent.

(2) For purposes of this section, the Retailer includes all persons who are or were owners, officers,

directors, managers or shareholders of the Retailer at the time a cash payment violation occurs.

(e) Reporting Violation and Payment; Failure to Report.

(1) A report of a violation must be submitted electronically on the forms provided on the

commission's web-based reporting system at https://www.tabc.texas.gov.

(2) A Seller who cannot access the commission's web-based reporting system must either:

(A) submit a request for exception to submit reports by paper; or

(B) contract with another Seller or service provider to make electronic reports on behalf of the

Seller.

(3) All reports of violations under this subsection must be made to the commission within two

business days from the date the violation is discovered by the Seller.

(4) A Seller who fails to report a violation as required by this subsection is in violation of this

section.

(f) Exception.

(1) A Retailer who wishes to dispute a violation of this section, based on a good faith dispute

between the Retailer and the Seller may submit supporting documents and a detailed written

statement to the commission with a copy to the Seller explaining the basis of the dispute.

(2) The written statement must be submitted with documents and/or other records tending to

support the Retailer's dispute, which may include:

143

(A) a copy of the front and back of the cancelled check of Retailer showing endorsement and

deposit by Seller;

(B) bank statement or records of bank showing funds were available in the account of Retailer

on the date the check was delivered to Seller; and

(i) bank error or circumstances beyond the control of Retailer caused the check to be

returned to Seller unpaid; or

(ii) the check cleared Retailer's account and funds were withdrawn from Retailer's

account in the amount of the check.

(3) The Retailer must immediately submit a notice of resolution of a dispute to the commission

under this subsection.

(g) Penalty for Violation. An action to cancel or suspend a permit or license may be initiated under the

Code for one or more violations of this section. The commission may consider whether a violation is

the result of an event or incident when initiating an action under this subsection.

(h) Calculation of Time. Sundays and legal holidays are not counted in determining time periods under

this section.

Source Note: The provisions of this §45.131 adopted to be effective November 29, 2009, 34 TexReg

8503; amended to be effective November 18, 2010, 35 TexReg 10051; amended to be effective December

15, 2013, 38 TexReg 9019; amended to be effective December 8, 2016, 41 TexReg 9508; amended to be

effective September 1, 2021, 46 TexReg 5182

144

Chapter 50: Alcoholic Beverage Seller Server Training and

Delivery Driver Training

SUBCHAPTER A: General and Administrative Provisions

§50.1 Purpose and Authority

This chapter implements Texas Alcoholic Beverage Code §106.14, which provides the commission with

authority to adopt rules establishing requirements for approved seller training programs, and §57.09,

related to alcohol delivery driver training.

Source Note: The provisions of this §50.1 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective June 9, 2020, 45 TexReg 3770

§50.2 Definitions

Words used in this chapter have their common and ordinary meaning unless they are given a specific

meaning in the code or are defined in this section.

(1) Applicant--An individual and/or each owner, officer, director, manager, or trainer of a legal

entity who applies to the commission for a certificate under this chapter.

(2) Branch Seller Server School Certificate.

(A) Branch Classroom-Based Seller Server School Certificate--A certificate issued by the

commission to the holder of a Primary Seller Server School Certificate granting the same

authority as the Primary Certificate but at a site that is designated on the Branch Certificate

and that is different from that designated on the Primary Certificate;

(B) Branch Mobile Application Seller Server School Certificate--A certificate issued by the

commission to the holder of a Primary Internet-Based Seller Server School Certificate that

allows for the approved course content to be completed through the internet or through the

mobile application, provided that all testing must be completed through the internet and

that tests may not be stored on the mobile device or in the mobile application; or

commission to the holder of a Primary Internet-Based Seller Server School Certificate that

allows for the approved course content to have an alternate domain location on the internet,

provided that all course content and testing must be completed online.

(3) Break--An interruption in a course of instruction occurring after the lesson introduction and

before the lesson summation.

(4) Classroom-Based Seller Server School Certificate--A Primary or Branch Seller Server School

Certificate issued by the commission under this chapter to a school that:

(A) has authority under this chapter to offer instruction and issue seller server certificates; and

145

(B) does not qualify for either an In-House Seller Server School Certificate or an Internet-

Based Seller Server School Certificate.

(5) Commission-Approved Personal Identification Number--A social security number, an individual

taxpayer identification number (ITIN), or an alien registration number ("A" number).

(6) Comprehension question--A question designed to establish the Student's participation in a

course or program and comprehension of the materials by requiring the student to answer a

question regarding a fact or concept taught in the course or program.

(7) Course of instruction--The mandatory curriculum and the optional curriculum used to teach a

seller server certificate course.

(8) Incomplete application--An application that fails to include all facts, disclosures, documents,

statements, authorizations, signatures, and fees required by this chapter or requested by the

commission for issuance of a certificate.

(9) In-House Seller Server School Certificate--A Primary or Branch Seller Server School

Certificate issued by the commission under this chapter to a school sponsored or operated by a

retail permittee or licensee and that has authority under this chapter to offer instruction on either

a classroom basis or a computer basis and to issue seller server certificates.

(10) Internet-Based Seller Server School Certificate--A Primary or Branch Seller Server School

Certificate issued by the commission under this chapter to a school offering an interactive

course on a delivery platform with web-based functionality that:

(A) has authority under this chapter to offer instruction and issue seller server certificates; and

(B) does not qualify for either a Classroom-Based Seller Server School Certificate or an In-

House Seller Server School Certificate.

(11) Mandatory Curriculum--The curriculum provided by the commission that must be used by a

certified school teaching a seller server certificate course.

(12) Multimedia component--A technique (such as combining of sound, video, and text) in which

several media are employed, including, but not limited to sound and audio recording, videos,

and animation.

(13) Optional Curriculum--Any curriculum not provided by the commission that is used by a school

to teach a seller server certificate course.

(14) Personal validation question--A question designed to establish the identity of the student by

requiring an answer related to the student's personal information such as a driver license

number, address, date of birth, or other similar information that is unique to the student.

(15) Primary Seller Server School Certificate--A certificate issued by the commission under this

chapter granting authority to:

(A) offer instruction and maintain records at the school's principal site designated on the

primary certificate; and

(B) issue seller server certificates.

146

(16) School--The holder of a Primary or Branch Seller Server School Certificate issued by the

commission.

(17) Seller Server Certificate--A certificate issued to an individual who completes a course of

instruction offered by a school and who passes the Commission Standard Competence Test.

(18) Seller Server Certificate Course--A class providing instruction in the sale, service, dispensing,

delivery, and consumption of alcoholic beverages to or by persons in private clubs, minors or

intoxicated persons, and that is designed to enable students to pass the Commission Standard

Competence Test and receive a seller server certificate.

(19) Student--An individual who is participating in or has completed a Seller Server Certificate

Course.

(20) Trainer--An individual who holds a Seller Server Trainer Certificate issued under this chapter.

Source Note: The provisions of this §50.2 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective December 12, 2013, 38 TexReg 9020; amended to be effective April 17, 2018, 43

TexReg 2267; amended to be effective February 13, 2023, 48 TexReg 662

SUBCHAPTER B: Mandatory Curriculum and Course of Instruction

§50.3 Mandatory Course Curriculum

(a) The mandatory curriculum is created by and updated by the commission or under a work-for-hire

contract. Each certified school is provided with information and security access to the commission's

secure portal when an original certificate or renewal is issued. Schools that are unable to access or

download the mandatory curriculum must submit a written request to have the curriculum provided

in an alternate format. The commission will not provide paper copies of the mandatory curriculum.

(b) The commission claims a copyright in the mandatory curriculum. The mandatory curriculum may

not be sold and may not be used in whole or in part without including the commission's claim of

updates as part of the school licensing fee.

(1) The copyright license provides unlimited use of the mandatory curriculum for authorized

purposes only.

(2) The commission's claim of copyright must be included in all written and visual materials from

the mandatory curriculum.

(3) Any sale or use of the mandatory curriculum for unauthorized purposes is a violation of this

chapter.

(d) Upon receiving notice from the commission of a change to the mandatory curriculum, a school has

thirty calendar days to implement the change.

(e) These topics in the mandatory curriculum must be included in the course of instruction offered by

each school.

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(1) The definition of intoxication.

(2) The law pertaining to intoxicated persons.

(3) The law pertaining to minors.

(4) The law pertaining to proper identification.

(5) How to detect intoxication.

(6) How to detect minors.

(7) How to detect improper identification.

(8) How to monitor customer behavior.

(9) How to use a chart showing the effects of alcohol based on: the size, type and number of drinks;

body weight; the sex of the drinker; and the passage of time.

(10) The dangers of alcohol poisoning.

(11) Intervention pertaining to intoxication.

(12) Intervention pertaining to minors.

(13) Sanctions for employee violations.

(14) Any other topics identified by the commission as appropriate, giving due consideration to

developments in the law, society, and the alcoholic beverage industry.

(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.

Source Note: The provisions of this §50.3 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective February 12, 2024, 49 TexReg 660

§50.4 Commission Approval of Classroom-Based Course of Instruction

(a) Each classroom-based school must provide a course of instruction using the content and sequence of

topics contained in the mandatory curriculum. Subject to the requirements of subsection (c) of this

section, the course of instruction may include optional material.

(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 120 minutes of

active instruction and student participation in the mandatory curriculum.

(2) The 120-minute requirement excludes time taken for breaks and the administration of the

Commission Standard Competence Test.

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

(4) The commission must approve a course of instruction before it can be offered by a school.

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including optional material in addition to the mandatory curriculum if:

(1) a request for approval of the optional material is submitted to the commission, with any

alteration of the mandatory curriculum and all optional materials clearly identified;

(2) the entire proposed course of instruction is submitted with the request, showing the sequence in

which the mandatory curriculum and the optional material will be presented;

(3) the optional material will not alter the scope or effectiveness of the mandatory curriculum; and

(4) additional time is added to the course of instruction to ensure that 120 minutes are devoted

entirely to the mandatory curriculum.

(d) A classroom-based school must file a revised course of instruction implementing a change to the

mandatory curriculum within 30 days after receiving notice of the change.

Source Note: The provisions of this §50.4 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective June 14, 2023, 48 TexReg 2939

§50.5 Commission Approval of Internet-Based Course of Instruction

(a) All internet-based training materials and instruction must be submitted and approved by the

commission prior to use.

(1) Printed screenshots meeting the language comprehension levels required by this section and

sequenced and presented as a complete course of instruction must be provided to the

commission.

(2) Access to the school's web address, secured portal, and delivery platforms must be made

available to the commission and the entire course of instruction offered to students must be

provided free of charge to the commission.

(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 120 minutes of time.

upon approval by the commission if:

(1) a request for change is submitted to the commission, with all alterations of the mandatory

curriculum and all optional materials clearly identified;

(2) the entire proposed course of instruction is submitted with the request, and, if the proposed

sequence differs from the mandatory curriculum, a list is included showing where in the

proposed sequence each topic in the mandatory curriculum will be presented; and

(3) the changes to the sequence and the optional material will not alter the scope or effectiveness of

the mandatory curriculum.

(d) An internet-based school must file a revised course of instruction implementing a change to the

mandatory curriculum within 30 days after receiving notice of the change.

Source Note: The provisions of this §50.5 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective April 17, 2018, 43 TexReg 2268

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§50.6 Management of Classroom-Based Course of Instruction

(a) No more than 50 students may attend a session.

(b) A student who misses more than 10% of the required 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.

session or during breaks.

(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 120-minute mandatory

curriculum attendance requirement.

(e) The Commission Standard Competence Test shall be administered to each student immediately

following the conclusion of instruction at the class he attends. No test may be administered at any

other place or time.

(f) The Commission Standard Competence Test shall be administered on a closed-book basis.

(g) A student must correctly answer at least 70% of the questions asked on the Commission Standard

Competence Test administered to him to be eligible to receive a Seller Server Certificate.

(h) A student who does not correctly answer 70% of the questions asked may be immediately retested

once. If the student does not correctly answer 70% of the questions asked on the retest, the student

must repeat the course in full.

Source Note: The provisions of this §50.6 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective February 13, 2023, 48 TexReg 662

§50.7 Management of Internet-Based Course of Instruction

(a) An internet-based school must verify a student's identity.

(1) To verify the student's identity, the school must ask each student a minimum of ten personal

validation questions. Students have no more than 60 seconds to respond to a personal validation

question. If a student answers more than 30% of the personal validation questions incorrectly,

the student must be dropped from the course.

(2) In lieu of the validation method required in paragraph (1) of this subsection, a school may use

another validation method that has been approved by the commission upon request by that

school.

(b) A student may be allowed to reenter a course through the use of a username and password, or by

other means approved by the commission that are as effective as password verification.

commission.

(1) At the conclusion of a unit, the student must answer five comprehension questions on the

material in that unit. A student may not proceed to the next unit if the student:

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(A) answers more than one question incorrectly; or

(B) has not viewed all multimedia components of a unit.

(2) Comprehension questions on a unit test must be of a difficulty level that a student cannot

correctly answer them without having viewed the material in that unit. Comprehension

questions on a unit test may be short answer, multiple choice, or a combination of those

methods.

(3) If a student incorrectly answers more than one comprehension question on a unit test, the

student must restart and complete that unit again before being retested.

(4) During a unit retest, the student must be asked comprehension questions that are different from

those he was previously asked.

(5) If different comprehension questions are asked and the student has restarted and completed the

unit after each failed test, a school may decide how many times the student may be retested on a

unit.

(d) A student must correctly answer at least 70% of the questions asked on the Commission Standard

Competence Test administered to him to be eligible to receive a Seller Server Certificate.

(e) A student who does not correctly answer 70% of the questions asked on the Commission Standard

Competence Test administered to him may be immediately retested once. If the student does not

correctly answer 70% of the questions asked on the retest, the student must repeat the course in full.

(f) A student must have adequate access to a help desk to resolve technical issues and the hours must be

posted for the student to review before registering for the course. If a request for support is made

outside of the posted time period, technical support must contact the requestor and attempt to resolve

the issue during the next posted time period that follows the request. Access to technical assistance

may be provided by means of:

(1) email;

(2) direct messaging; or

(3) phone with active voicemail.

(g) Questions by a student about the content of the course of instruction must be answered by the holder

of a seller server trainer certificate.

(1) The school must make available to students the days and times a Seller Server Trainer will be

available to answer content related questions prior to registering for the course; and

(2) Seller Server Trainers must be available a reasonable amount of time weekly to provide support

to students.

(h) An internet-based school may not allow any advertisements to appear during the course of

instruction. Advertisements that appear on the website when the course of instruction is not being

presented must follow established marketing practices.

Source Note: The provisions of this §50.7 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective April 17, 2018, 43 TexReg 2268; amended to be effective February 13, 2023, 48

TexReg 662

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§50.8 Management of In-House Course of Instruction

An in-house seller server school shall comply with the provisions of §50.6 or §50.7, as appropriate to the

method of instruction used. An in-house seller server school shall not offer a course of instruction, and

shall not issue a Seller Server Certificate, to anyone who is not an employee.

Source Note: The provisions of this §50.8 adopted to be effective January 1, 2011, 35 TexReg 7054

SUBCHAPTER C: Seller Server School Certificates and Requirements

§50.9 Issuance of Seller Server Certificates

(a) A school must order and pay for all seller server certificate numbers in advance using the order forms

and payment methods approved by the commission. Certificate numbers cost $2.00 each.

(b) No session may be conducted unless the school:

(1) has sufficient certificate numbers available to issue a certificate to each individual attending the

session at the time, date and location of the scheduled session; and

(2) limits the number of individuals attending a session to the number of certificate numbers

available at the location on the date and time the session is conducted.

certificate numbers had to be voided so that a student who should have received a certificate did not

receive one on the date of the session, the school must, within five calendar days of the session,

submit a written statement to the commission explaining why sufficient certificate numbers were not

available and listing the voided certificate numbers.

(d) Requirements for classroom-based or in-house schools issuing seller server certificate to students.

(1) If a student satisfies the requirements for a certificate, the school must issue the student the

certificate on the date the student satisfied those requirements and at the location of that session.

(2) If a school fails to comply with the requirements of paragraph (1) of this subsection, the school,

at the conclusion of the session where the student satisfied the requirements for a certificate, and

on the date and location of that session, must:

(A) provide the student with a written receipt showing the name of the school, the name of the

instructor, the instructor's certificate number, the amounts paid by the student, and the date,

time and location of the session;

(B) provide the student written notice containing the commission's internet address and

informing the student that the student may file a complaint with the commission;

notification, of the information required to be provided to the student in subparagraph (A)

of this paragraph; and

(D) issue the student a certificate within 10 calendar days from the date of the session where

the student satisfied the requirements for a certificate.

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(e) Requirements for internet-based schools issuing seller server certificate to students.

(1) If a student satisfies the requirements for a certificate, the school must electronically issue the

student the certificate within 24 hours of the time the student satisfied those requirements.

(2) If a school fails to comply with the requirements of paragraph (1) of this subsection, the school,

within 24 hours of the conclusion of the session where the student satisfied the requirements for

a certificate, must electronically provide the student:

(A) a receipt showing the name of the school, the name of the instructor, the instructor's

certificate number, the amounts paid by the student, and the date and time of the session;

(B) an explanation of why the certificate is not being issued; and

commission.

(3) If a school fails to comply with the requirements of paragraph (1) of this subsection, the school,

within 24 hours of the conclusion of the session where the student satisfied the requirements for

a certificate, must electronically provide the commission the information provided to the student

under paragraph (2) of this subsection.

(4) If a school fails to comply with the requirements of paragraph (1) of this subsection, the school

must issue the student a certificate within 10 calendar days from the date of the session where

the student satisfied the requirements for a certificate.

(f) A school that fails to comply with the requirements of subsection (d) or (e) of this section commits a

separate violation for each student affected by that failure.

(g) The commission may refuse to issue certificates to a school:

(1) if the commission has a reasonable basis to believe the certificates have been misused or abused

or that inadequate security or control may result in the misuse or abuse of certificates;

(2) if the school fails to provide information and records within three business days of a request by

the commission; or

(3) if the school has failed to create or maintain information and records required by the

commission.

(h) A school may not transfer a certificate to another school, even if the schools are affiliated branch or

primary schools.

Source Note: The provisions of this §50.9 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective April 17, 2018, 43 TexReg 2269; amended to be effective February 13, 2023, 48

TexReg 662

§50.10 Requirements for Records, Reports and Notices

(a) A school must electronically notify the commission at least three business days in advance of each

scheduled session. The notice must include the date, time and location of the session. The

commission may waive the three-day requirement on request for good cause shown on an individual

basis, but in no case may a session be taught without prior notification to the commission.

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(b) Reports of cancelled classes.

(1) A school must electronically notify the commission of the cancellation of a session prior to the

scheduled date of the session unless the cancellation cannot reasonably have been anticipated

before that date.

(2) When a cancellation cannot reasonably have been anticipated prior to the scheduled date of the

session, the school must electronically notify the commission of the cancellation not later than

the next business day. The notice must provide an explanation of the circumstances justifying

the late notice.

secure location at all times and restrict access to ensure that the test is not available to students or the

public before or after it is administered. A school must electronically notify the commission of any

breach of security involving the test within 24 hours of discovering the breach.

(d) Access to commission's portal to file reports and notices.

(1) Each certified school is provided with information and security access to the commission's

selected secure portal when an original certificate or renewal is issued. Access to the secure

portal may be terminated without notice if a security breach or malicious virus is detected.

(2) The commission may require or perform periodic audits to ensure secure portals are used for

authorized purposes.

(3) A breach of security or misuse of the secure portal will result in immediate termination of

access pending investigation.

(e) Reports of seller training.

(1) For each session taught, a school shall electronically file a report of seller training not later than

7 calendar days after the date the class was held.

(2) Each report of seller training shall include all students who successfully completed the session

and received a passing grade on the commission standard competence course.

(3) Each report of seller training shall contain each student's name, commission-approved personal

identification number, date of birth, test score and certificate number.

(4) The trainer shall personally verify that on the date indicated each student included in the report

satisfactorily completed the session and received a passing grade on the Commission Standard

Competence Test.

(f) Required records.

(1) Each school must maintain, at the school's primary site or at a designated branch site, the reports

and notices required in this section.

(2) For each student attending a session, the school must maintain the information required by this

paragraph.

(A) The student's first and last names and middle initial.

(B) The student's mailing address.

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(D) Any information required to assign the student a commission-approved personal

identification number.

(E) The student's score on the Commission Standard Competence Test.

(3) All records, reports and documents required in this section shall be maintained for four years.

(4) Records, reports and documents required by this section may be maintained electronically in a

methodical and organized manner.

(5) All records, reports and documents shall be made available to the commission upon request.

Failure to provide the material within five business days of the request is cause for cancellation

or suspension of the school's certificate.

(6) Failure to submit any record, report or notice to the commission as and when required is cause

for cancellation or suspension of the school's certificate.

(7) Significant and/or repeated errors in submitting information to the commission are cause for

cancellation or suspension of the school's certificate.

(8) If a school ceases operation, all records and reports shall be provided to the commission.

(9) The commission may monitor sessions unannounced.

(10) The commission may conduct audits unannounced.

(11) An internet-based school must maintain all contracts it has to receive traffic that has been

redirected from another domain.

(g) The executive director may develop standard practices relating to the implementation of this chapter.

The standard practices will provide guidance to schools and individuals affected by this chapter

regarding technical details required to efficiently and effectively implement this chapter. The

standard practices will be provided to certified schools and will be posted on the commission's

website. The standard practices may not conflict with or alter the provisions of this chapter.

Source Note: The provisions of this §50.10 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective April 17, 2018, 43 TexReg 2269; amended to be effective February 13, 2023, 48

TexReg 662

§50.11 Grounds for Refusing to Process Application

(a) The commission may refuse to process an original or renewal application for a school certificate

under this chapter, if the applicant or any individual who must submit a personal history sheet with

the application:

(1) does not meet the minimum qualifications;

(2) fails to submit a complete application;

(3) fails to pay the required fees;

(4) falsifies, misrepresents, or fails to provide or verify a material fact, disclosure or document

required by the commission on the application;

155

(5) fails to provide or produce information requested by the commission, and the time for providing

the information has passed;

(6) within five years of the date of application, was convicted of or served deferred adjudication

for:

(A) any felony offense;

(B) any controlled substance offense in the Health and Safety Code Chapter 481;

(D) any prostitution offense in Penal Code Chapter 43;

(E) any gambling offense in Penal Code Chapter 47;

(F) any human trafficking offense in Penal Code Chapter 20A;

(G) any fraud offense in Penal Code Chapters 32 or 35;

(H) any money laundering offense in Penal Code Chapter 34; or

(I) any violation of the Alcoholic Beverage Code.

(7) conducts business in a manner that warrants the cancellation or suspension of the certificate for

24 months following the cancellation or suspension;

(8) conducted seller server training courses and allowed students to participate in a seller server

training program with the expectation that they would receive a valid commission authorized

certificate while the primary seller server certificate was under suspension; or

(9) is the owner of the primary seller server certificate and is residentially domiciled with a person

whose primary seller server certificate was cancelled for cause within the 12-month period

preceding the owner's application.

(b) The commission may refuse to process an original or renewal application for a seller server trainer

certificate under this chapter without a hearing, if the applicant:

(1) does not meet the minimum qualifications;

(2) fails to submit a complete application;

(3) fails to pay the required fees;

(4) falsifies, misrepresents, or fails to provide or verify a material fact, disclosure or document

required by the commission on the application;

(5) fails to provide or produce information requested by the commission, and the time for providing

the information has passed;

(6) had a final disposition of a felony conviction within five years of the date of application;

(7) conducts business in a manner that warrants the cancellation or suspension of the certificate for

24 months following the cancellation or suspension; or

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seller server training program with the expectation that they would receive a valid commission

authorized certificate while the primary seller server certificate was under suspension.

Source Note: The provisions of this §50.11 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective April 17, 2018, 43 TexReg 2269; amended to be effective February 13, 2023, 48

TexReg 662

§50.12 Suspension or Cancellation of School's Certificate

(a) The commission may suspend or cancel a school's certificate, if the commission finds after notice

and opportunity for a hearing that a school or a trainer employed by the school has violated a

provision of this chapter.

(b) In deciding whether to suspend or cancel a school's certificate, the commission may consider:

(1) the seriousness of the violation;

(2) the school's history of violations;

(3) the effect of the violation on a student or others;

(4) the school's attempt to rectify the violation;

(5) whether the school has implemented any changes to prevent similar violations; and

(6) other factors pertinent to the situation.

opportunity to correct an alleged violation. The commission may require the school to submit a

corrective action plan analyzing how and why the alleged violation occurred, proposing actions

designed to prevent similar violations, and describing how restitution will be provided to students or

others affected by the violation. If the commission accepts the corrective action plan, the commission

may require periodic reports on the plan's implementation and may monitor and/or audit the school

to assess compliance with the plan.

Source Note: The provisions of this §50.12 adopted to be effective January 1, 2011, 35 TexReg 7054

§50.13 Grounds for Suspension or Cancellation of School's Certificate

(a) The commission, after notice and hearing, may suspend or cancel a school's certificate if the school,

or a trainer employed by or under contract to the school:

(1) fails to verify an individual's qualifications to receive a certificate;

(2) signs a certificate when the trainer did not personally instruct the student;

(3) fails to follow or provide instruction required by the mandatory curriculum;

(4) provides fewer than the required number of hours of instruction;

(5) issues more than 50 seller server certificates for a single session, unless the school has an

internet-based seller server school certificate;

157

(6) issues a seller server certificate or provides instruction on a date when the school's or

instructor's certification is expired, suspended or cancelled;

(7) fails to administer or require a student to take and/or make a passing score on the Commission

Standard Competence Test before issuing a seller server certificate to the student;

(8) uses, discloses, or sells personal or financial information obtained from a student or the

commission for a purpose or in a manner not authorized by this chapter;

(9) falsifies, alters or destroys a record required by the commission, regardless of whether there was

intent to deceive the commission or another;

(10) violates any section of this chapter or the standard practices of the commission that, in the

opinion of the commission, warrants suspension or cancellation;

(11) has engaged in an ongoing course of conduct or activities that undermine the purpose and intent

of this chapter;

(12) fails to control, monitor, and supervise instructors and classroom instruction to prevent a

violation of law or the requirements of this chapter;

(13) fails to implement control and security measures to protect personal or financial information

obtained from a student or the commission from accidental, intentional, or malicious use or

disclosure;

(14) allows a session to be taught by someone who does not hold current trainer certification;

(15) falsifies, makes a material misstatement, or fails to disclose required information on any

document or record required by this chapter;

(16) counterfeits a certificate issued under this chapter; or

(17) violates any provision of this chapter.

(b) The commission, after notice and hearing, may suspend or cancel a school's certificate if a trainer

employed by or under contract to the school, a responsible person assigned by the school to a

session, the owner or governing body of a school, or the administration of a college or university has

failed to supervise or exercise control of its employees or facilities, and the failure has resulted in

actual harm or increased risk to the health or safety of students or the public.

of instruction falls below minimum commission standards as determined by the commission through:

(1) direct observation of instruction by commission auditors or agents;

(2) consistent failure of the school to impart basic knowledge and understanding to students, as

measured by student failures, student violations, or student surveys or reports; or

(3) complaints received from any person.

(d) The commission, after notice and hearing, may suspend or cancel a school's certificate if the school

engages in any of these acts or practices:

(1) presenting the course of instruction as its own when it is not;

158

(2) causing confusion or misunderstanding as to the source, sponsorship, approval or certification

of the course of instruction or services provided by a school or instructor;

(3) causing confusion or misunderstanding as the affiliation, connection or association with, or

certification by, the commission or a school certified by the commission;

(4) representing that a school or course of instruction is sponsored, approved, certified or accredited

by the commission when it is not;

(5) representing that an individual is affiliated with, employed by or represents a school certified by

the commission when the individual is not;

(6) representing that a course of instruction has been approved by the commission when it has not;

(7) advertising services or other courses of instruction during the time allocated for instruction or

completion of a course of instruction approved by the commission.

Source Note: The provisions of this §50.13 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective April 17, 2018, 43 TexReg 2270

§50.14 Prohibited Relationships

(a) No licensee or permittee of the commission, or his spouse, agent, servant, or employee, or any

subsidiary or affiliate, may directly or indirectly conduct, sponsor, or support a seller training

program approved under this chapter except as provided in the Texas Alcoholic Beverage Code,

§106.14(c) and (d).

(b) A licensee or permittee of the commission may be a member of an advisory board, but not the

governing board of a nonprofit agency which sponsors a seller training program.

may contribute to the development of a curriculum of seller training being developed for national

use; provided, that any such contribution or involvement shall not be directly or indirectly tied to the

actual offering of training to employees of any retailer, group of retailers, or the general public. Such

involvement by an alcoholic beverage manufacturer shall be in a primarily noncommercial manner

consistent with the spirit and intent of the provisions of the Texas Alcoholic Beverage Code and the

rules of the commission prohibiting the tied-house and prohibiting the furnishing of things of value

to a retailer of alcoholic beverages.

(d) No licensee, permittee, or other person engaged in the manufacturing or wholesaling level of the

alcoholic beverage industry, or any agent, servant, or employee of any of those, may directly or

indirectly conduct or sponsor a seller training program for retail level employees or members of the

general public.

Source Note: The provisions of this §50.14 adopted to be effective January 1, 2011, 35 TexReg 7054

§50.15 Application for Primary Classroom-Based Seller Server School Certificate

(a) Applicant and Application. An applicant for an original or renewal primary classroom-based seller

server school certificate must complete all sections of the application on forms provided by the

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commission. The applicant must provide a valid e-mail address and must agree to maintain a

currently valid e-mail address on file with the commission at all times.

(b) Disclosure of Owners, Officers, Directors, Managers, and Instructors.

(1) The applicant for an original certificate or change of ownership for a primary classroom-based

seller server school must disclose all individuals and legal entities having an ownership interest,

and all officers, directors, managers, and instructors.

(2) A legal entity must provide its formation and registration documents and must be authorized to

transact business in this state.

(3) A personal history sheet must be completed and submitted with the application for each

individual owner, and each individual shareholder, partner, officer, director, and manager.

(4) An individual required to submit a personal history sheet must at the same time submit an

authorization for a criminal history background check.

(5) Additional information may be required by the commission to verify ownership or

qualifications of the applicant.

(1) the applicant has authority to act on behalf of all owners;

(2) the applicant has personally completed or reviewed the application and has personal knowledge

of and is responsible for its content;

(3) all parts of the application that apply are complete;

(4) each fact, disclosure, and statement made in the application is true and correct at the time the

application is submitted;

(5) the applicant acknowledges that an application for a certificate is a government document and is

subject to verification by the commission; and

(6) the applicant acknowledges that providing false or misleading information or omitting a

material fact may result in the refusal of the application, cancellation of a school's certificate, or

criminal prosecution.

(d) Incomplete applications or applications submitted without required fees will not be accepted for

processing or returned to the applicant.

(e) An applicant must:

(1) keep an exact copy of the application submitted to the commission; and

(2) complete and correct any deficiencies within ten business days after being notified of the

deficiency.

(f) The application for a primary classroom-based seller server school certificate must designate:

(1) a certified trainer responsible for the oversight, operation, training and compliance at the

primary seller server school;

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(2) an individual responsible for the day-to-day operations and facilities of the primary seller server

school;

(3) the principal site of the school; and

(4) all branch classroom-based seller server school certificates the applicant has or for which

application is being made.

(g) The holder of a primary classroom-based seller server school certificate must apply for a branch

classroom-based seller server school certificate for each site, other than the designated principal site,

where records required by this chapter are maintained.

Source Note: The provisions of this §50.15 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective June 14, 2023, 48 TexReg 2939

§50.16 Application for Branch Classroom-Based Seller Server School Certificate

(a) A branch classroom-based seller server school certificate is required for each site, other than a

principal site designated pursuant to §50.15(f)(3) of this chapter, where records required by this

chapter are maintained.

(b) An applicant for an original or renewal branch classroom-based seller server school certificate must

be an applicant for or hold a current primary classroom-based seller server school certificate.

primary classroom-based seller server school certificate with which it is associated.

(d) An applicant may submit more than one application for a branch seller server school certificate, but

each application must be completed and submitted on forms provided by the commission.

(e) The owners, shareholders, officers and directors of the primary seller server school and the branch

seller server school must be the same.

(f) The application for a branch seller server school certificate must designate:

(1) a certified trainer responsible for the oversight, operation, training and compliance at the branch

seller server school;

(2) the individual responsible for the day-to-day operations and facilities of the branch seller server

school; and

(3) the applicant for or holder of the associated primary classroom-based seller server school

certificate.

(g) A personal history sheet must be completed and submitted with the application for each certified

trainer and responsible individual designated pursuant to subsection (f) of this section. A copy of a

personal history sheet is acceptable if the original was included as part of the primary school

application.

(h) An individual required to submit a personal history sheet must at the same time submit an

authorization for a criminal history background check.

(i) Additional information may be required by the commission to verify ownership or qualifications of

the applicant.

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(j) The applicant must sign and verify that:

(1) the applicant has personally completed or reviewed the application and is responsible for its

content;

(2) all parts of the application are completed; and

(3) each fact, disclosure, and statement made in the application is true and correct at the time the

application is submitted.

(k) Incomplete applications or applications submitted without required fees will neither be accepted for

processing nor returned to the applicant.

(l) An applicant must:

(1) keep an exact copy of the application submitted to the commission; and

(2) complete and correct any deficiencies within ten business days after being notified of the

deficiency.

Source Note: The provisions of this §50.16 adopted to be effective January 1, 2011, 35 TexReg 7054

§50.17 Application for Primary Internet-Based Seller Server School Certificate

(a) An applicant for an original or renewal primary internet-based seller server school certificate must

complete all sections of the application on forms provided by the commission.

(b) An applicant for an original certificate or change of ownership for an internet-based seller server

school must disclose all individual owners, individuals and legal entities having an ownership

interest, and all officers, directors, managers, and instructors.

(1) A legal entity must provide its formation and registration documents and must be authorized to

transact business in this state.

(2) A personal history sheet must be completed and submitted with the application for each

individual disclosed on the application.

(3) An individual required to submit a personal history sheet must at the same time submit an

authorization for a criminal history background check.

(4) Additional information may be required by the commission to verify ownership or

qualifications of the applicant.

(1) the applicant has authority to act on behalf of all owners;

(2) the applicant has personally completed or reviewed the application and has personal knowledge

of and is responsible for its content;

(3) all parts of the application that apply are complete;

(4) each fact, disclosure, and statement made in the application is true and correct at the time the

application is submitted;

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(5) the applicant acknowledges that an application for a certificate is a government document and is

subject to verification by the commission; and

(6) the applicant acknowledges that providing false or misleading information or omitting a

material fact may result in the refusal of the application, cancellation of a certificate, or criminal

prosecution.

(d) Incomplete applications or applications submitted without required fees will neither be accepted for

processing nor returned to the applicant.

(e) An applicant must:

(1) keep an exact copy of the application submitted to the commission; and

(2) complete and correct any deficiencies within 10 business days after being notified of the

deficiency.

(f) An applicant for an internet-based seller server school certificate must verify that the security

measures implemented and maintained by the school meet state and federal standards for the

transmission and protection of personal identification information and financial information of

individuals accessing the website.

(g) The presentation and course progress platform used by an internet-based seller server school must be

reviewed and approved by the commission to ensure:

(1) the course of instruction contains all topics required by the mandatory curriculum; and

(2) each topic must be completed before the next topic may be accessed.

(h) An applicant for a primary internet-based training school certificate must designate a primary

domain and must list:

(1) all domains the school uses to provide any course of instruction that includes the mandatory

curriculum;

(2) all domains under common ownership with the school that redirect students to the primary

designated domain or to any other domain under common ownership with the designated

primary domain; and

(3) all domains, whether or not under common ownership, with which the school has a contractual

relationship to redirect students to the designated primary domain or to any domain under

common ownership.

(i) The applicant must agree to update the list required by subsection (h) of this section within 24 hours

of a change during the term of the certificate and failure to keep the list current is grounds for

cancellation of the primary internet-based training school certificate.

(j) A primary internet-based training school must obtain a branch internet-based training school

certificate for each domain that is under common ownership with the designated primary domain but

that offers a different course of instruction from that offered at the designated primary domain.

(k) A primary internet-based training school is not required to obtain a branch internet-based or branch

mobile application training school certificate for a domain that is under common ownership with the

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designated primary domain but that either merely redirects students to the designated primary

domain or to another domain that is under common ownership with the primary domain.

(l) A primary internet-based training school is required to obtain:

(1) a branch mobile application training school certificate for each delivery platform that is under

common ownership with the designated primary internet-based program. This includes, but is

not limited to, programs designed for specific mobile devices or custom programming as a

delivery platform for the mandatory curriculum and internet-based testing; or

(2) a branch internet-based training school certificate for each delivery domain that is under

common ownership with the designated primary internet-based program but provides a different

course of instruction than that which is approved on the designated primary domain.

(m) A primary internet-based training school must require that before any domain redirects a student to

the designated primary domain or to any domain under common ownership with it, and before

charging the student, the redirecting domain must inform the student:

(1) that he will be transferred to another site;

(2) of the name of the school that will actually provide the course of instruction;

(3) of the name of the school that will appear on his certificate upon successful completion of the

course;

(4) that the school to which he will be redirected will solicit private, personally identifiable

information from the student; and

(5) that the student may refuse to be transferred without incurring fees.

Source Note: The provisions of this §50.17 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective April 17, 2018, 43 TexReg 2270; amended to be effective June 14, 2023, 48

TexReg 2939

§50.18 Application for Branch Internet-Based or Branch Mobile Application Seller Server

School Certificate

(a) A branch internet-based seller server school certificate is required for each domain that offers a

different course of instruction from the course of instruction approved for the designated primary

domain.

(b) A branch mobile application seller server school certificate is required for each delivery platform

supported on mobile phones, PDAs, tablets or other delivery device approved by the commission.

For a branch mobile application seller server school:

(1) the mandatory curriculum may be completed with or without Internet access;

(2) the Commission Standard Competence Test and all unit testing must be completed through an

internet connection; and

(3) the Commission Standard Competence Test and all unit testing may not be stored in the mobile

application or on any device not directly managed by the Primary Seller Server Training School.

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server school certificate must be an applicant for or already hold a current primary internet-based

seller server school certificate.

(d) An application for a branch internet-based or branch mobile application seller server school

certificate must indicate the primary internet-based seller server school certificate with which it is

affiliated.

(e) An applicant may submit more than one application for a branch seller server school certificate or

branch mobile application seller server school certificate, but each application must be completed

and submitted on forms provided by the commission.

(f) A personal history sheet must be completed and submitted with the application for each certified

instructor. A copy is acceptable if the original was included as part of the primary school application.

(g) An authorization for a criminal history background check is required for each individual required to

submit a personal history sheet and who has not previously submitted the authorization.

(h) An individual required to submit a personal history sheet must at the same time submit an

authorization for a criminal history background check.

(i) The applicant must sign and verify that:

(1) the applicant has personally completed or reviewed the application and is responsible for its

content;

(2) all parts of the application are completed; and

(3) each fact, disclosure, and statement made in the application is true and correct at the time the

application is submitted.

(j) Incomplete applications or applications submitted without required fees will neither be accepted for

processing nor returned to the applicant.

(k) An applicant must:

(1) keep an exact copy of the application submitted to the commission; and

(2) complete and correct any deficiencies within ten business days after being notified of the

deficiency.

Source Note: The provisions of this §50.18 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective April 17, 2018, 43 TexReg 2270

§50.19 Application for Primary In-House Seller Server School Certificate

(a) Application. An application for an original or renewal primary in-house seller server school

certificate must be completed and submitted on forms provided by the commission.

(b) An applicant for a primary in-house seller server school certificate must satisfy the requirements of

paragraph (1) or (2) of this subsection.

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(1) Be the current holder of a retail permit or license issued by the commission and employ a

minimum of 150 individuals. The duties of the permit or license holder's employees must

include the preparation, sale, service, or delivery of alcoholic beverages to ultimate consumers.

(2) Be a hotel management or holding company that owns or operates a minimum of five hotels

which employ a minimum of 200 individuals whose duties include preparation, sale, service, or

delivery of alcoholic beverages to ultimate consumers. The primary in-house seller server

school must be managed and controlled by the hotel management or holding company and not

the owned or managed hotels.

(1) An applicant whose owners, officers, directors, and managers are an exact match to those

previously provided to the commission in connection with a license or permit currently held by

the applicant is exempt from the requirements of paragraphs (2), (3) and (4) of this subsection.

However, the applicant must identify the license or permit application where the information

requested in those paragraphs can be found.

(2) The applicant for an original certificate or change of ownership for an in-house seller server

school must disclose all individual owners, individuals and legal entities having an ownership

interest, and all officers, directors, managers, and instructors.

(3) A legal entity must provide the formation and registration documents and must be authorized to

transact business in this state.

(4) A personal history sheet must be completed and submitted with the application for each

individual who is an owner or holds an ownership interest in a legal entity, and each partner,

officer, director, manager, and trainer if:

(A) the applicant has not previously provided a personal history sheet for the individual; or

(B) the information previously provided is no longer true and correct.

(5) An individual required to submit a personal history sheet must at the same time submit an

authorization for a criminal history background check.

(6) Additional information may be required by the commission to verify ownership or

qualifications of an applicant or individual.

(d) An applicant for a primary in-house seller server school must designate:

(1) a certified trainer responsible for the oversight, operation, training, and compliance at the seller

server school; and

(2) an individual responsible for the day-to-day management and operations at the seller server

school.

(e) The applicant must sign and verify that:

(1) the applicant has authority to act on behalf of all owners;

(2) the applicant has personally completed or reviewed the application and has personal knowledge

of and is responsible for its content;

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(3) all parts of the application that apply are complete;

(4) each fact, disclosure, and statement made in the application is true and correct at the time the

application is submitted;

(5) the applicant acknowledges that an application for a certificate is a government document and is

subject to verification by the commission; and

(6) the applicant acknowledges that providing false or misleading information or omitting a

material fact may result in the refusal of the application, cancellation of a certificate, or criminal

prosecution.

(f) Incomplete applications or applications submitted without required fees will neither be accepted for

processing nor returned to the applicant.

(g) An applicant must:

(1) keep an exact copy of the application submitted to the commission; and

(2) complete and correct any deficiencies within ten business days after being notified of the

deficiency.

Source Note: The provisions of this §50.19 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective June 14, 2023, 48 TexReg 2939

§50.20 Application for Branch In-House Seller Server School Certificate

(a) Subsections (b) - (1) of this section apply to applications for branch classroom-based in-house seller

server school certificates. Subsections (m) - (y) of this section apply to applications for branch

internet-based in-house or branch mobile application in-house seller server school certificates.

(b) An applicant for an original classroom-based in-house branch seller server school certificate must be

an applicant for or currently hold a primary in-house seller server school certificate.

change of ownership must hold a current primary in-house seller server school certificate.

(d) An applicant may submit one or more applications for a branch classroom-based in-house seller

server school certificate, but each application must be separately completed and submitted on forms

provided by the commission.

(e) The owners, shareholders, officers and directors of the primary in-house seller server school and the

branch classroom-based in-house seller server school must be the same.

(f) The application for a branch classroom-based in-house seller server school certificate must

designate:

(1) a certified trainer responsible for the oversight, operation, training, and compliance at the

branch classroom-based in-house seller server school; and

(2) an individual responsible for the day-to-day operations and management of the branch

classroom-based in-house seller server school.

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(g) A personal history sheet must be completed and submitted with the application for each trainer and

responsible individual if the individual has not previously provided a personal history sheet with the

original or renewal application for the primary in-house seller server school.

(h) An individual required to submit a personal history sheet must at the same time submit an

authorization for a criminal history background check.

(i) Additional information may be required by the commission to verify ownership or qualifications of

an applicant or individual.

(j) The applicant must sign and verify that:

(1) the applicant has authority to act on behalf of all owners;

(2) the applicant has personally completed or reviewed the application and has personal knowledge

of and is responsible for its content;

(3) all parts of the application that apply are complete;

(4) each fact, disclosure, and statement made in the application is true and correct at the time the

application is submitted;

(5) the applicant acknowledges that an application for a certificate is a government document and is

subject to verification by the commission; and

(6) the applicant acknowledges that providing false or misleading information or omitting a

material fact may result in the refusal of the application, cancellation of a certificate, or criminal

prosecution.

(k) Incomplete applications or applications submitted without required fees will neither be accepted for

processing nor returned to the applicant.

(l) An applicant must:

(1) keep an exact copy of the application submitted to the commission; and

(2) complete and correct any deficiencies within ten business days after being notified of the

deficiency.

(m) A branch internet-based in-house training school certificate is required for each domain that offers a

different course of instruction from the course of instruction approved on the designated primary

domain.

(n) A branch mobile application in-house training school certificate is required for each delivery

platform supported on mobile phones, PDAs, tablets or other delivery device approved by the

commission. For a branch mobile application seller server school:

(1) the mandatory curriculum may be completed with or without Internet access;

(2) the Commission Standard Competence Test and all unit testing must be completed through an

internet or intranet connection; and

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(3) the Commission Standard Competence Test and all unit testing may not be stored in the mobile

application nor on any device not directly managed by the Primary Seller Server Training

School.

(o) An applicant for an original internet-based or mobile application in-house branch seller server school

certificate must be an applicant for or currently hold a primary in-house seller server school

certificate.

(p) An applicant for an internet-based or mobile application in-house branch seller server school

certificate renewal or change of ownership must hold a current primary in-house seller server school

certificate.

(q) An applicant may submit one or more applications for a branch internet-based or mobile application

in-house seller server school certificate, but each application must be separately completed and

submitted on forms provided by the commission.

(r) The owners, shareholders, officers and directors of the primary in-house seller server school and the

branch internet-based or mobile application in-house seller server school must be the same.

(s) The application for a branch internet-based or mobile application in-house seller server school

certificate must designate:

(1) a certified trainer responsible for the oversight, operation, training, and compliance at the

branch in-house seller server school; and

(2) an individual responsible for the day-to-day operations and management of the branch in-house

seller server school.

(t) A personal history sheet must be completed and submitted with the application for each trainer and

responsible individual if the individual has not previously provided a personal history sheet with the

original or renewal application for the primary in-house seller server school.

(u) An individual required to submit a personal history sheet must at the same time submit an

authorization for a criminal history background check.

(v) Additional information may be required by the commission to verify ownership or qualifications of

an applicant or individual.

(w) The applicant must sign and verify that:

(1) the applicant has authority to act on behalf of all owners;

(2) the applicant has personally completed or reviewed the application and has personal knowledge

of and is responsible for its content;

(3) all parts of the application that apply are complete;

(4) each fact, disclosure, and statement made in the application is true and correct at the time the

application is submitted;

(5) the applicant acknowledges that an application for a certificate is a government document and is

subject to verification by the commission; and

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(6) the applicant acknowledges that providing false or misleading information or omitting a

material fact may result in the refusal of the application, cancellation of a certificate, or criminal

prosecution.

(x) Incomplete applications or applications submitted without required fees will neither be accepted for

processing nor returned to the applicant.

(y) An applicant must:

(1) keep an exact copy of the application submitted to the commission; and

(2) complete and correct any deficiencies within ten business days after being notified of the

deficiency.

Source Note: The provisions of this §50.20 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective April 17, 2018, 43 TexReg 2271; amended to be effective June 14, 2023, 48

TexReg 2939

§50.21 Renewal Application

(a) An application for renewal of a certificate issued under this subchapter must be submitted on forms

provided by the commission. The applicant must verify that the individual owner, or a designated

representative of the owning legal entity, has attended any mandatory training offered or sponsored

by the commission, and has completed the commission's train the trainer course and passed the final

exam for that course with a score of 80% or better, during the term of the expiring certificate.

(b) Any information that has changed since the original or last renewal application was submitted must

be completed and corrected on forms provided for an original application.

submitted before the date the certificate expires.

(d) Notwithstanding subsection (c) of this section, the commission may accept a renewal application and

the certificate holder may continue to operate for 30 days following the expiration date, if:

(1) neither the primary nor any associated branch school is currently under a suspension order; and

(2) the required fees and late fee are submitted with the renewal application.

(e) A certificate holder who fails to submit a renewal as required by this section or pay the required fees

must apply for an original application.

(f) A certificate issued under this subchapter may not be renewed if the school has not held at least 20

sessions during the term of the expiring certificate.

Source Note: The provisions of this §50.21 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective April 17, 2018, 43 TexReg 2271; amended to be effective February 13, 2023, 48

TexReg 662

§50.22 Expiration and Fees

(a) Primary seller server school certificate.

(1) A primary certificate will expire on the second anniversary of the date it is issued.

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(2) The two-year fee for an original primary certificate is $1000.

(3) The two-year fee for a renewal primary certificate is $500.

(4) A late fee of $100 must be submitted with a renewal application submitted after the date the

certificate expired if the application is received within 30 days after the date of expiration. If the

renewal application and fees are not received during the 30day period, the applicant must apply

and pay the fee for an original primary certificate.

(5) No fees will be refunded after a certificate is issued.

(6) Fees cannot be prorated for a term of less than two years.

(7) Applications must be completed within one year of the date the application was received by the

commission, or the application shall be deemed void. All fees are nonrefundable.

(8) If the applicant does not meet the deadline established in paragraph (7) of this subsection, the

applicant must reapply for a new certificate by complying with requirements and procedures,

including payment of fees.

(b) Branch seller server school certificate.

(1) A branch certificate will expire on the date the primary certificate expires.

(2) The two-year fee for each original classroom based or classroom-based in-house branch

certificate is $200, and for each internet-based or mobile application in-house branch certificate

is $50.

(3) The two-year fee for each renewal classroom based or classroom-based in-house branch

certificate is $100, and for each internet-based or mobile application in-house branch certificate

is $25.

(4) Fees for branch certificates that will expire in less than two years as a result of the primary

certificate's expiration are not prorated.

(5) Applications must be completed within one year of the date the application was received by the

commission, or the application shall be deemed void. All fees are nonrefundable.

(6) If the applicant does not meet the deadline established in paragraph (5) of this subsection, the

applicant must reapply for a new certificate by complying with requirements and procedures,

including payment of fees.

available and transferred from the applicant's account.

(d) The filing fee for a change of ownership is $100.

Source Note: The provisions of this §50.22 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective April 17, 2018, 43 TexReg 2271; amended to be effective February 13, 2023, 48

TexReg 662

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§50.23 Change of Ownership

(a) A change of ownership is any agreement to transfer ownership or control of a school. A change of

control is presumed if:

(1) more than 50% of an individual owner's interest is sold or transferred;

(2) more than 50% of a legal entity's interest is sold or transferred; or

(3) there is a change in directors, officers, shareholders, or other governing body that results in

significant changes in operations, management, or key instructors.

(b) A certificate issued under this subchapter may not be sold or transferred to an individual or legal

entity not currently listed on the application.

transfer ownership or an interest in the certificate, but only to another listed owner.

(d) A sale or transfer of an ownership interest in a school that does not result in a change of control

under subsection (a) of this section does not require an original application. The sale or transfer is

effective upon submission of:

(1) a change of ownership form;

(2) documents providing evidence of the sale or transfer; and

(3) payment of the required fee.

(e) A sale or transfer that results in a change of ownership in a primary seller server school as described

in subsection (a) of this section requires submission of an original application.

(f) The sale or transfer of an ownership interest in a branch school certificate to an individual or legal

entity not currently the primary school permit holder requires the purchaser to submit an original

application for a primary school certificate.

Source Note: The provisions of this §50.23 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective June 14, 2023, 48 TexReg 2939

§50.24 Notice of Change of Location

The holder of a certificate issued under this subchapter must comply with §33.93 of this title.

Source Note: The provisions of this §50.24 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective February 13, 2023, 48 TexReg 662

SUBCHAPTER D: Seller Server Trainer Certificate

§50.25 Seller Server Trainer Certificate

(a) Applicant Minimum Qualifications. An applicant for an original or renewal seller server trainer

certificate must:

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(1) submit documentation issued by an agency of the United States, this or another state of the

United States that proves the applicant is a United States citizen or is legally authorized to work

in the United States at the time of application;

(2) not be disqualified to receive a seller server school certificate under §50.12 of this chapter;

(3) be at least 21 years of age;

(4) submit a completed application on a commission approved form;

(5) pay the fee required for a seller server trainer certificate; and

(6) not have had a final disposition of a felony conviction within five years of the date of

application.

(b) The commission may deny an application for an original or renewal seller server trainer certificate if

the applicant has been convicted of or served deferred adjudication for:

(1) any felony offense;

(2) any controlled substance offense in the Health and Safety Code Chapter 481;

(3) any firearm or deadly weapon offense in Penal Code Chapter 46;

(4) any prostitution offense in Penal Code Chapter 43;

(5) any gambling offense in Penal Code Chapter 47;

(6) any human trafficking offense in Penal Code Chapter 20A;

(7) any fraud offense in Penal Code Chapters 32 or 35;

(8) any money laundering offense in Penal Code Chapter 34; or

(9) any violation of the Alcoholic Beverage Code.

(1) a certificate of completion issued by the provider of the commission standard train the trainer

course and pass the final exam with a score of 80% or better; and

(2) documentation establishing that the applicant has at least:

(A) 2 years' experience in teaching or training; or

(B) 15 hours of post-secondary education in a related field.

(d) Expiration and Fees.

(1) A seller server trainer certificate will expire on the second anniversary of the date it is issued.

(2) The two-year fee for an original seller server trainer certificate is $100, and for a renewal is $50.

(3) A late fee of $50 must be submitted with a renewal application submitted after the date the

certificate expired.

(4) No fees will be refunded after a certificate is issued.

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(5) Fees cannot be prorated for a term of less than two years.

(6) Applications must be completed within one year of the date the application was received by the

commission, or the application shall be deemed void. All fees are nonrefundable.

(7) If the applicant does not meet the deadline established in paragraph (6) of this subsection, the

applicant must reapply for a new certificate by complying with requirements and procedures,

including payment of fees.

(e) The holder of a seller server trainer certificate may renew the certificate if:

(1) a renewal application is submitted, on forms provided by the commission, prior to the expiration

of the current certificate;

(2) the required two-year fee is submitted with the application;

(3) the applicant verifies that the applicant attended all mandatory training offered or sponsored by

the commission and completed the commission's liquor law course during the two-year term of

the expiring certificate; and

(4) the applicant has instructed at least 20 sessions during the term of the expiring certificate.

(f) Notwithstanding subsection (e)(1) of this section, the commission may accept a renewal application

and the seller server trainer certificate holder may continue to operate for 30 days following the

expiration date of the certificate, if:

(1) the holder of the seller server trainer certificate is not currently under a suspension order; and

(2) the required fees and late fees are submitted with the renewal application.

Source Note: The provisions of this §50.25 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective April 17, 2018, 43 TexReg 2271; amended to be effective February 13, 2023, 48

TexReg 662

§50.26 Trainer Standards and Requirements

(a) The holder of a seller server trainer certificate is qualified to:

(1) apply for a seller server school certificate issued under this chapter; and

(2) be employed by a certified seller server school to teach the mandatory curriculum to individuals

seeking a seller server certificate.

(b) The holder of a seller server trainer certificate must:

(1) ensure that no more than 50 students attend a session of a classroom-based course of instruction,

unless the course is being offered by an internet-based school;

(2) require each student to sign a roster of class attendance before instruction begins;

(3) ensure that each student attends each segment of training;

(4) instruct on all required topics;

(5) administer, monitor, and grade the Commission Standard Competence Test;

174

(6) document the test results;

(7) complete, sign, and issue seller server certificates to students who pass the test, on the date and

location of the session; and

(8) ensure that all students who successfully complete the session and pass the Commission

Standard Competence Test are reported to the commission as required by this chapter:

(A) by timely delivering all information, documents, and test results to the seller server school

for entry in the commission's database; or

(B) by entering the information in the commission's database.

(9) conduct himself in an ethical, professional, and lawful manner;

(10) provide students with the rules of conduct and requirements of the course, and the consequences

of breaking rules or failing to meet the requirements;

(11) remain in the classroom at all times except during breaks;

(12) provide instruction on all topics and subjects included in the mandatory curriculum and

maintain a pace that will ensure a high quality of instruction and comprehension by students;

(13) make reasonable use of visual aids and demonstrations but not allow these tools to be a

substitute for trainer participation;

(14) avoid the use of language or conduct that would be offensive to a reasonable person;

(15) verify all students' qualifications to receive a certificate, unless the course is being offered by an

internet-based school;

(16) provide the required number of minutes of instruction;

(17) issue no more than 50 seller server certificates for a single session;

(18) not issue a seller server certificate or provide instruction on a date when the school's or

instructor's certification is expired, suspended or cancelled;

(19) require a student to correctly answer 70% of the questions asked on the Commission Standard

Competence Test before issuing a seller server certificate to the student;

(20) not use, disclose, or sell personal or financial information obtained from a student or the

commission for a purpose or in a manner not authorized by this chapter;

(21) not falsify, alter or destroy a record required by the commission, regardless of whether there was

intent to deceive the commission or another;

(22) not violate any section of this chapter or the standard practices of the commission that, in the

opinion of the commission, warrant suspension or cancellation;

(23) not engage in an ongoing course of conduct or activities that undermine the purpose and intent

of this chapter;

(24) implement control and security measures to protect personal or financial information obtained

from a student or the commission from accidental, intentional, or malicious use or disclosure; or

175

(25) not counterfeit a certificate issued under this chapter.

the quality of instruction falls below minimum commission standards as determined by the

commission through:

(1) direct observation of instruction by commission auditors or agents;

(2) consistent failure of the trainer to impart basic knowledge and understanding to students, as

measured by student failures, student violations, or student surveys or reports; or

(3) complaints received from any person.

Source Note: The provisions of this §50.26 adopted to be effective January 1, 2011, 35 TexReg 7054

§50.27 Suspension or Cancellation of Seller Server Trainer Certificate

The commission, after notice and hearing, may suspend or cancel a seller server trainer certificate if the

trainer fails to satisfy a requirement of §50.31 of this chapter or violates any provision of this chapter.

Source Note: The provisions of this §50.27 adopted to be effective January 1, 2011, 35 TexReg 7054

SUBCHAPTER E: Seller Server Certificates

§50.28 Verification and Expiration of Certificate

(a) The commission can only issue an affidavit verifying that a seller server certificate has been issued to

a student if:

(1) the request for verification includes the student's name, date of birth, and a commission-

approved personal identification number; or

(2) the request for verification includes the student's name, date of birth, and the certificate number

of the certificate that is the subject of the verification request, if a commission-approved

personal identification number is not available.

(b) A certificate issued under this chapter will expire on the second anniversary of the date it is issued.

Source Note: The provisions of this §50.28 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective December 12, 2013, 38 TexReg 9021

§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 120-minute classroom-based course of instruction or an internet-based, self-

paced course of instruction;

(2) complete all required topics of the commission standard competence curriculum; and

(3) pass the Commission Standard Competence Test.

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(b) It is the student's responsibility to verify whether a school or trainer is certified. The certification

status of the school or may be verified at the commission's website.

Source Note: The provisions of this §50.29 adopted to be effective January 1, 2011, 35 TexReg 7054

§50.30 Void and Voidable Seller Server Certificates

(a) A seller server certificate is void if:

(1) the certificate is a forgery or false document; or

(2) the certificate has been altered.

(b) A seller server certificate is voidable if:

(1) the school records were entered in error, or the certificate was issued in error and the name on

the face of the numbered certificate and the commission records for the numbered certificate do

not match;

(2) the issuing school did not have a current school certificate;

(3) the school's certificate was suspended at the time the certificate was issued;

(4) the school did not require the individual to participate in a course of instruction that included the

commission standard competence curriculum before the certificate was issued; or

(5) the school did not require the individual to take and pass the Commission Standard Competence

Test.

(1) resolve the error;

(2) provide remediation for the affected certificate holders; and

(3) report corrected information to the commission within ten business days.

(d) A school must give notice to each individual holding a void or voidable certificate under this section.

(e) If a school ceases to exist, all unused certificates held by the school are voided. No refund will be

made for certificates voided under this subsection.

Source Note: The provisions of this §50.30 adopted to be effective January 1, 2011, 35 TexReg 7054

§50.31 Revocation

(a) The commission may revoke a Seller Server certificate under the conditions set forth in this section.

(1) If the holder of a Seller Server Certificate sells or serves an alcoholic beverage to a minor or

intoxicated person, the certificate holder must be recertified within 30 days of the violation.

Recertification requires completing a course of instruction offered by a certified school and

passing the Commission Standard Competence Test. If the certificate holder is not recertified

within 30 days of the violation, the commission may revoke the certificate.

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(2) If the holder of a Seller Server Certificate sells or serves an alcoholic beverage to a minor or

intoxicated person a second time within a 12-month period, the commission may revoke the

certificate. The certificate holder cannot be recertified for a period of 90 days. Recertification

requires completing a course of instruction offered by a certified school and passing the

Commission Standard Competence Test.

(3) If the holder of a Seller Server Certificate sells or serves an alcoholic beverage to a minor or

intoxicated person a third time within a 12-month period, the commission may revoke the

certificate. The certificate holder cannot be recertified for a period of one year. Recertification

requires completing a course of instruction offered by a certified school and passing the

Commission Standard Competence Test.

(4) If the holder of a Seller Server Certificate provided false identification to a seller server school

or trainer, including, but not limited to, name, social security number, or birth date, the

commission may revoke the certificate. The certificate holder cannot be recertified.

(5) If the holder of a Seller Server Certificate did not successfully complete a course of instruction

offered by a certified school or did not pass the Commission Standard Competence Test, the

commission may revoke the certificate.

(b) Before the commission may revoke a Seller Server Certificate, the commission must give notice to

the holder of the certificate that he or she has the right to request a hearing, but that he or she must

make such request within 21 days after the receipt of the notice of violation.

Source Note: The provisions of this §50.31 adopted to be effective January 1, 2011, 35 TexReg 7054;

amended to be effective April 17, 2018, 43 TexReg 2272; amended to be effective June 14, 2023, 48

TexReg 2939

SUBCHAPTER F: Consumer Delivery

§50.32 Alcohol Delivery Driver Training Program

(a) The commission shall develop and offer to the public an alcohol delivery driver training program. A

person who completes the program will be granted a delivery driver certificate valid for two years

from the date of completion of the training program.

(b) The commission may combine the alcohol delivery driver training program with other certifications

offered by the commission.

delivery of an alcoholic beverage to a minor or an intoxicated person was not made with criminal

negligence if the delivery driver:

(1) at the time of the delivery held a valid certification from the commission's alcohol delivery

driver training program; and

(2) completed the delivery as a result of a technical malfunction of an alcohol delivery compliance

software application that otherwise meets the requirements established by the commission.

(d) The commission may suspend or revoke an alcohol delivery driver's certificate for failure to pay the

fee for the certification training program, and if the driver:

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(1) is determined to be less than 21 years of age;

(2) does not hold a current, valid driver's license;

(3) is charged with a crime; or

(4) violates any statute or rule under the commission's jurisdiction.

Source Note: The provisions of this §50.32 adopted to be effective April 14, 2020, 45 TexReg 2410

§50.33 Alcohol Delivery Compliance Software Applications

(a) Definition. In this section, the term "software application" means an alcohol delivery compliance

software application.

(b) To qualify for limitations on liability for the actions of its delivery drivers under Alcoholic Beverage

Code §57.08 by using a software application, a consumer delivery permit holder must require its

drivers to use a software application when delivering alcoholic beverages that meets the minimum

requirements of this rule.

(1) access electronically readable data from a government issued driver's license or identification

card;

(2) manually enter the birthdate of the holder of the driver's license or identification card, in the

event that the information cannot be read electronically for any reason;

(3) provide an affirmation electronically that at the time of delivery, the person accepting the

alcoholic beverage deliver:

(A) does not display signs of intoxication;

(B) presents a valid, unexpired government-issued driver's license or identification card; and

(4) cancel the transaction in the event that delivery is not completed;

(5) indicate the reason for any non-delivery of alcoholic beverage(s), which at a minimum must

include the options to select:

(A) person receiving the delivery displayed signs of intoxication;

(B) person receiving the delivery failed to present a valid, unexpired government-issued

driver's license or identification card demonstrating that the holder is at least 21 years of

age; or

premises, which is now closed; and

(6) record the disposition of any undelivered alcohol.

(d) Delivery address verification.

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(1) The consumer delivery permit holder is responsible for ensuring the type of alcoholic beverage

ordered can legally be delivered to the delivery address (wet/dry status). This may be

accomplished automatically, either during the online ordering process or by the software

application, or by the delivery driver, using the software application.

(2) If the consumer delivery permit holder's online ordering process or the software application

automatically verifies that the type of alcoholic beverage ordered can legally be delivered to the

delivery address, the software application must enable the delivery driver to affirm that the

delivery address is the same address entered during the online ordering process.

(3) The mechanism or program employed to comply with this section must use, at a minimum,

publicly available information provided by the commission regarding the eligibility for sale of

each type of alcohol to the delivery address.

(e) In addition to all other requirements of this rule, a software application used in the delivery of

alcohol to a consumer pursuant to Alcoholic Beverage Code §28.1001 must enable the delivery

driver to affirm that:

(1) the amount of distilled spirits delivered does not exceed 375 milliliters;

(2) all alcoholic beverages are delivered in containers sealed by the manufacturer; and

(3) food was delivered concurrently with the alcoholic beverage(s).

(f) The software application must use industry standard mechanisms to authenticate the identity of each

delivery driver using the software application. At a minimum, the software application must use a

generally accepted single-factor authentication method to verify the identity of the user, such as a

password or biometric identification.

(g) The consumer delivery permit holder must maintain the following information for each transaction

and must provide it to the commission upon request:

(1) whether the consumer passed or failed age verification, based on either the reading of the

electronically readable data from the driver's license or identification card or manual entry of

the birthdate on the driver's license or identification card presented at the time of delivery;

(2) the physical address to which the alcoholic beverage was delivered;

(3) the specific alcoholic beverage(s) or type(s) of alcohol delivered (e.g., malt beverages, wine,

and/or distilled spirits);

(4) time stamps for when the order was received, when the delivery driver obtained the alcoholic

beverages from the retailer, and when the alcoholic beverages were either delivered to the

consumer or the transaction was canceled;

(5) information related to the disposition of undelivered alcoholic beverages; and

(6) the software application compliance features used on the date of the transaction.

(h) The information listed in subsection (g) of this section:

(1) must be stored for at least six months; and

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(2) if the information is the subject of an ongoing commission enforcement action, must be stored

in the consumer delivery permit holder's usual manner until the enforcement action is closed.

(i) Information from a government-issued driver's license or identification card accessed under this

section must be maintained and used in a manner compliant with Alcoholic Beverage Code §109.61.

(j) The consumer delivery permit holder may submit its software application compliance features to the

commission for review prior to rollout of the initial version, and at any time the software application

compliance features are updated in a manner that may impact its compliance with the requirements

of this rule. The commission will provide the permit holder with an opinion as to whether the

software application compliance features meet rule requirements or need changes to come into

compliance.

(k) The commission may perform periodic audits to verify compliance with this rule.

Source Note: The provisions of this §50.33 adopted to be effective June 6, 2022, 47 TexReg 3247