PART 3. TEXAS ALCOHOLIC BEVERAGE COMMISSION
CHAPTER 45. MARKETING PRACTICES
SUBCHAPTER A. GENERAL PROVISIONS
The Texas Alcoholic Beverage Commission (TABC) adopts amendments to 16 TAC §45.4, relating to Product Registration Required. The amendments are adopted without changes to the proposed text as published in the February 9, 2024, issue of the Texas Register (49 TexReg 619). The amended rule will not be republished.
REASONED JUSTIFICATION. The amendments are necessary to implement legislation. Senate Bill 1322 (88th Regular Session) authorized the sale of vintage distilled spirits by a vintage distilled spirits seller, and Senate Bill 1932 (88th Regular Session) authorized the secondary sale of wine by a wine collection seller.
Currently, §45.4(a) prohibits alcoholic beverages from being sold in the state prior to the product being registered with TABC unless the type of alcoholic beverage is excepted from the registration requirement under §45.4(b). Pursuant to §101.671 of the Alcoholic Beverage Code, distilled spirits and wine are generally required to have a Certificate of Label Approval (COLA) issued by the United States Alcohol and Tobacco Tax and Trade Bureau to be registered with TABC and the registrant must be an authorized TABC permittee. Pursuant to §§1.04(31)(B) and 111.001(2)(B) of the Alcoholic Beverage Code, vintage distilled spirits sellers and wine collection sellers may not hold a TABC-issued permit. Thus, due to the nature of the distilled spirits and wine authorized by SB 1322 and SB 1932, the products are ineligible to receive a COLA and the authorized sellers are unable to apply for product registration. For these reasons, requiring registration of these products would be impracticable under the current regulatory framework. Therefore, the amendments to §45.4 add products sold by a vintage distilled spirits seller pursuant to Alcoholic Beverage Code §§22.19 or 23.07, and by a wine collection seller pursuant to Alcoholic Beverage Code §§111.002 or 111.003, to the list of products that do not require registration with TABC prior to being sold within the state.
SUMMARY OF COMMENTS. TABC did not receive any comments on the proposed amendments.
STATUTORY AUTHORITY. TABC adopts the amendments under §5.31 of the Alcoholic Beverage Code, which authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. TABC also adopts new §45.4(b)(5) pursuant to Section 2 of SB 1932, which requires TABC to adopt rules necessary to implement Chapter 111 of the Alcoholic Beverage Code.
CERTIFICATION. The amended rules, as adopted, have been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 2024.
TRD-202401287
Matthew Cherry
Senior Counsel
Texas Alcoholic Beverage Commission
Effective date: April 15, 2024
Proposal publication date: February 9, 2024
For further information, please call: (512) 206-3491