TITLE 16. ECONOMIC REGULATION

PART 3. TEXAS ALCOHOLIC BEVERAGE COMMISSION

CHAPTER 45. MARKETING PRACTICES

SUBCHAPTER C. STANDARDS OF IDENTITY FOR MALT BEVERAGES

16 TAC §45.78

The Texas Alcoholic Beverage Commission adopts amendments to §45.78, relating to Name and Address, without changes to the proposed text as published in the April 14, 2017, issue of the Texas Register (42 TexReg 1990).

Section 45.78 addresses the name and address that must be displayed on labels of malt beverages. The current rules derive from and have the same requirements as the rules of the U.S. Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau.

Subsection (a) applies to domestic malt beverages. Generally, the name of the bottler and the place where the beverage was bottled must be shown. The bottler's principal place of business may be shown in lieu of the actual place of bottling, if bottling actually occurs at that location. The amendment also requires that if the principal place of business will be stated instead of the actual place of bottling, a permit or license issued by the commission must be held at the principal place of business. This is consistent with the requirement that actual bottling of a malt beverage that is sold in Texas must be at a facility that holds a Texas permit or license. The new language is also consistent with the Texas contract brewing requirement that a permit must be held by both parties to the arrangement.

Subsection (b) applies to foreign malt beverages. Previously the rule, consistent with federal policy, required that the name and address of the importer must be shown on the label and the name and address of the foreign manufacturer could also be shown. Texas Alcoholic Beverage Code §101.41(b) requires that every beer label must have the name and address of the manufacturer. The practice in Texas for some time has been that all malt beverage labels must include the name and address of the manufacturer. The amendment conforms this subsection to the Code and to longstanding practice by requiring that the label show the name and address of the foreign manufacturer (who must hold a Texas permit or license). The amendment allows the name and address of the importer to be shown if accompanied by appropriate wording.

The commission reviewed the section pursuant to Government Code §2001.039 and determined that the need for the rule continues to exist but that these changes to the prior rule are appropriate.

No comments were received.

The amendments are adopted pursuant to Alcoholic Beverage Code §5.31, which grants authority to prescribe rules necessary to carry out the provisions of the Code.

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

Filed with the Office of the Secretary of State on May 24, 2017.

TRD-201702089

Martin Wilson

Assistant General Counsel

Texas Alcoholic Beverage Commission

Effective date: June 13, 2017

Proposal publication date: April 14, 2017

For further information, please call: (512) 206-3489


SUBCHAPTER D. ADVERTISING AND PROMOTION--ALL BEVERAGES

16 TAC §45.106

The Texas Alcoholic Beverage Commission adopts an amendment to §45.106, relating to Sweepstakes and Games of Chance, without changes to the proposed text as published in the April 14, 2017, issue of the Texas Register (42 TexReg 1991).

Section 45.106 sets forth the conditions under which upper tier members may offer promotional sweepstakes as allowed by Alcoholic Beverage Code §108.061.

The amendment to subsection (d) clarifies that a holder of a promotional permit may contract with members of the manufacturing tier, and not just holders of manufacturer’s permits, to sponsor sweepstakes on their behalf.

The commission reviewed the section pursuant to Government Code §2001.039 and determined that the need for the rule continues to exist but that these changes to the prior rule are appropriate.

No comments were received.

The amendment is adopted pursuant to Alcoholic Beverage Code §5.31, which grants authority to prescribe rules necessary to carry out the provisions of the Code, and §108.061, which recognizes the authority to adopt rules regarding sweepstakes promotions.

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 May 24, 2017.

TRD-201702090

Martin Wilson

Assistant General Counsel

Texas Alcoholic Beverage Commission

Effective date: June 13, 2017

Proposal publication date: April 14, 2017

For further information, please call: (512) 206-3489