TITLE 16. ECONOMIC REGULATION

PART 3. TEXAS ALCOHOLIC BEVERAGE COMMISSION

CHAPTER 35. ENFORCEMENT

The Texas Alcoholic Beverage Commission (TABC) proposes new 16 TAC §35.5, relating to Prohibited Sales of Consumable Hemp Products to Minors, and §35.6, relating to Mandatory Age Verification for Consumable Hemp Product Sales. The proposed rules implement Executive Order GA-56 (Sept. 10, 2025), which directs TABC to "immediately begin the rulemaking process to protect the public health, safety, and welfare by prohibiting the sale of hemp-derived products to a minor and requiring verification of the purchaser's age with government issued identification prior to completing the sale of any such product, on pain of cancellation of a permit, license, or registration issued by" TABC.

TABC previously adopted emergency rules to quickly implement the governor's executive order. See 50 TexReg 6577 (2025) (emerg. rules 16 Texas Administrative Code §§51.1, 51.2) (adopted Sep. 23, 2025) (Tex. Alco. Bev. Comm'n, Prohibited Sales of Consumable Hemp Products to Minors and Mandatory Age Verification for Consumable Hemp Product Sales). If ultimately adopted, the rules proposed now will replace the emergency rules. The proposed rules are similar to the emergency rules, but with some key changes: (1) internal citations within the proposed rules have been updated to account for the rules' placement within Chapter 35; (2) the proposed rules will allow TABC to suspend a license or permit as a sanction in certain instances, where the emergency rules only allowed TABC to cancel a license or permit for violations of the rules; (3) the proposed rules provide a licensee or permittee a defense to an enforcement action for failure to inspect proof of identification under §35.6 if the ultimate consumer or recipient of the CHP is 40 years of age or older; and (4) the proposed rules restrict when a license or permit holder may apply for any new TABC-issued license or permit if the holder's previous license or permit was cancelled under these rules.

The proposed rules are intended to prevent minors from accessing and using consumable hemp products (CHPs) that will negatively impact the health, general welfare, and public safety of minors in Texas. As noted in the emergency rule adoption order, TABC is directed to "supervise and regulate [its] licensees and permittees and their places of business in matters affecting the public." Tex. Alco. Bev. Code §5.33. And that "authority is not limited to matters specifically mentioned in" the Alcoholic Beverage Code. Id . TABC must also ensure that the place and manner in which a permittee or licensee conducts its business is consistent with the general welfare, health, peace, morals, and safety of the people and the public sense of decency. Id . §§11.61(b)(7), 61.71(a)(16).

CHP is defined by the Department of State Health Services (DSHS) as "[a]ny product processed or manufactured for consumption that contains hemp, including food, a drug, a device, and a cosmetic, as those terms are defined by Texas Health and Safety Code §431.002, but does not include any consumable hemp product containing a hemp seed, or hemp seed-derived ingredient being used in a manner that has been generally recognized as safe (GRAS) by the FDA." 25 TAC §300.101(8). CHP retailers must generally be registered with DSHS. Tex. Health & Safety Code §443.2025. TABC has learned that many of its licensed alcoholic beverage businesses engage in the retail sale of CHPs of varying types and potency, and many of those businesses allow minors to purchase those products. Additionally, consumer delivery and carrier permit holders also deliver CHPs to ultimate consumers who are minors. TABC believes that businesses providing CHPs to minors are operating in a manner that is detrimental to the general welfare, health, peace, morals, and safety of the people and the public sense of decency. To combat this conduct, TABC proposes these rules to: (1) prohibit a TABC licensee or permittee from selling, offering for sale, serving, or delivering CHPs to a person younger than 21 years of age; and (2) require a TABC licensee or permittee to inspect the identification of certain persons wanting to purchase or obtain CHPs to confirm their age.

Under the proposed rules, a license or permit holder will generally be held accountable if an employee or agent sells, offers to sell, serves, or delivers CHPs to a minor or fails to inspect the identification of certain persons purchasing or obtaining CHPs. These are strict liability rules, meaning a licensee or permittee may be held liable for a violation even though they lack a culpable mental state ( i.e., they may be held liable even though they did not act intentionally, knowingly, recklessly or negligently). However, under proposed rule §35.5(f), TABC will not hold a license or permit holder accountable for selling, offering to sell, serving, or delivering CHPs to a minor if the minor presents an apparently valid identification that complies with §35.6(a), the permittee or licensee inspects the identification as provided by §35.6(b), and the permittee or licensee reasonably concludes that the purchaser or recipient is at least 21 years of age. Additionally, it is a defense to any enforcement action under §35.6 if the ultimate consumer or recipient of the CHP is 40 years of age or older. This will allow licensees and permittees to forgo ID checks when the consumer or recipient is undoubtedly of age to purchase or receive CHPs.

These rules apply to retail CHP sales and deliveries, and when CHPs are otherwise provided to ultimate consumers ( e.g. , providing samples). The rules do not apply to the sale and delivery of CHP between manufacturers, wholesalers, and retailers of CHPs.

A violation of §35.5 or §35.6 will result in the suspension or cancellation of the holder's TABC license or permit, depending on the number of previous violations of the respective rule. However, a first or second violation of §35.5 may still result in the cancellation of the license or permit if TABC believes cancellation is warranted based on the nature and seriousness of the violation. The license or permit holder will not be allowed to pay a civil penalty in lieu of the license or permit suspension or cancellation. A violation of either rule relates to drugs, as contemplated by Alcoholic Beverage Code §11.64(a), thus TABC need not give the licensee or permittee the opportunity to pay a civil penalty in lieu of suspension or cancellation.

Additionally, if a license or permit is cancelled under §35.5, the license or permit holder, and certain other associated persons, will not be eligible for any new license or permit for five years from the date of cancellation. If a license or permit is cancelled under §35.6, the license or permit holder, and certain other associated persons, will not be eligible for any new license or permit for one year from the date of cancellation. TABC recognizes the severity of the sanctions imposed by these rules, but the agency believes a significant sanction is warranted in order to effectively prevent CHP sales to minors.

TABC presented the rules at a stakeholder meeting on October 9, 2025, and considered comments received from stakeholders in drafting the proposed rules.

FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATEMENT. Andrea Maceyra, Chief of Regulatory Affairs, has determined that during each year of the first five years the proposed rules are in effect, there will not be a significant fiscal impact on state or local governments because of enforcing or administering the proposed rules. Mrs. Maceyra made this determination because the proposed rules do not add to or decrease state revenues or expenditures, and because local governments are not involved in enforcing or complying with the proposed rules. Mrs. Maceyra also does not anticipate any measurable effect on local employment or the local economy because of this proposal.

PUBLIC BENEFIT AND COST NOTE. For each year of the first five years the proposed rules are in effect, Mrs. Maceyra expects that enforcing or administering the proposed rules will have the public benefit of reducing minors' access to, and use of, CHPs and a corresponding reduction in the public harms associated with such use. See 50 TexReg 6578 (citing harms associated with CHP use by minors). Mrs. Maceyra believes the proposed rules may impose economic costs on those licensees and permittees that currently sell or deliver CHPs to minors. TABC is unable to calculate or estimate that cost because it does not know how many businesses sell or deliver CHPs to minors or the percentage of CHP sales that are currently attributable to minors.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS. TABC does not believe the proposed rules will have an adverse economic effect on rural communities, or on most small or micro businesses that sell CHPs. Some businesses voluntarily choose not to sell CHPs to minors. However, the proposed rules' prohibition on selling, serving, and delivering CHPs to minors may have an adverse economic effect on those small or micro businesses that would otherwise continue to sell, serve, or deliver CHPs to minors. TABC does not know how many small or micro businesses (that hold a TABC license or permit) sell, serve, or deliver CHPs to minors nor the percentage of the businesses' CHP sales that are attributable to minors, so it cannot determine or reasonably estimate the economic impact of the rules on such businesses. But even assuming there is an adverse impact, the agency is still not required to prepare a regulatory flexibility analysis under Government Code §2006.002(c) because any viable alternative regulatory method that would minimize the proposed rules' adverse impact on small or micro businesses would necessarily have to eliminate the prohibition on selling, serving, or delivering CHPs to minors for such businesses. An agency is not required to consider alternatives that would not be protective of the health and safety of the state, §2006.002(c-1), and any alternative which restores CHP sales to minors is clearly not protective of the state's health and safety. See, e.g., The Governor of the State of Tex., Executive Order GA-56, (50 TexReg 6267) (2025).

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

- will not create or eliminate a government program;

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

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

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

- will create new regulations;

- will not expand, limit, or repeal an existing regulation;

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

- will not positively or adversely affect the Texas economy.

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

REQUEST FOR PUBLIC COMMENT. TABC requests comments on the proposed rules from any person interested in the rules. Additionally, TABC requests information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis, from any person required to comply with the proposed rules or any other interested person. TABC will consider any written comments on the proposal that are received by TABC no later than 5:00 p.m., central time, January 4, 2026. Send your comments to rules@tabc.texas.gov or to the Office of the General Counsel, Texas Alcoholic Beverage Commission, P.O. Box 13127, Austin, Texas 78711-3127. TABC staff will hold a public hearing to receive oral comments on the proposed rules at 10:00 a.m. on December 11, 2025. Interested persons should visit TABC's public website at www.tabc.texas.gov or contact TABC Legal Assistant Amada Clopton at (512) 206-3367, prior to the meeting date to receive further instructions.

STATUTORY AUTHORITY. TABC proposes the new rules under Alcoholic Beverage Code §§5.31 and 5.33. Alcoholic Beverage Code §5.31 provides that "the commission may exercise all powers, duties, and functions conferred by this code, and all powers incidental, necessary, or convenient to the administration of this code," and further states that "it may prescribe and publish rules necessary to carry out the provisions of this code." Alcoholic Beverage Code §5.33 provides that "the commission shall supervise and regulate licensees and permittees and their places of business in matters affecting the public." And that "this authority is not limited to matters specifically mentioned in [the] code."

CROSS-REFERENCE TO STATUTE. The proposed rules implement Alcoholic Beverage Code §11.61(b)(7) and §61.71(a)(16).

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

Filed with the Office of the Secretary of State on November 18, 2025.

TRD-202504215

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: January 4, 2026

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

CHAPTER 41. AUDITING

The Texas Alcoholic Beverage Commission (TABC) proposes amendments to 16 TAC §41.37, relating to Destructions; §41.43, relating to Sale after Cancellation, Expiration, or Voluntary Suspense of License or Permit; §41.50, relating to General Provisions; §41.52, relating to Temporary Memberships; §41.53, relating to Pool Systems; and §41.65, relating to Contract Distilling Arrangements and Distillery Alternating Proprietorships. TABC also proposes new 16 TAC §41.57, relating to Purchase of Certain Alcoholic Beverages, to be codified in Chapter 41, Subchapter E.

The proposed amendments and new rule fix clerical errors and provide non-substantive changes clarifying current agency practices. The proposed amendment to §41.37(a) removes a reference to a repealed statute. The proposed amendment to §41.43(a) removes the "in bulk" requirement for inventory sales when a license or permit is cancelled, expires, or is voluntarily suspended. Removal of this requirement aligns with current agency practices and is intended to provide flexibility to businesses disposing of their alcoholic beverage inventory when ceasing operations.

The proposed amendment to §41.50(b) corrects a previous clerical error. The proposed amendment to §41.52(b)(1) more accurately states the temporary membership card requirements for private club registration permit holders in Alcoholic Beverage Code §32.09. The proposed amendment to §41.53 repeals subsection (e), which will be moved to proposed new §41.57. New §41.57 reflects the current requirement in §41.53(e), but the text has been revised for clarity. Lastly, the proposed amendment to §41.65(e) clarifies that authorized wholesalers and carriers may pick up product directly from a contract distiller's facility.

TABC presented the proposed amendments at a stakeholder meeting on October 9, 2025, and considered comments received from stakeholders in drafting the proposed amendments.

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

PUBLIC BENEFIT AND COST NOTE. For each year of the first five years the proposed amendments and new rule are in effect, Mrs. Maceyra expects that enforcing or administering the amended and new rules will have the public benefit of ensuring that the rules accurately reflect current agency practices, are worded in a clear manner, and provide clarity and efficiency for the regulated industry. Mrs. Maceyra does not expect the proposed amendments and new rule will impose economic costs on persons required to comply with them.

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

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

- will not create or eliminate a government program;

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

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

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

- will create a new regulation;

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

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

- will not positively or adversely affect the Texas economy.

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

REQUEST FOR PUBLIC COMMENT. TABC requests comments on the proposed amendments and new rule from any person interested in the amendments and new rule. Additionally, TABC requests information related to the cost, benefit, or effect of the proposed amendments and new rule, including any applicable data, research, or analysis, from any person required to comply with the proposed amendments and new rule or any other interested person. TABC will consider any written comments on the proposal that are received by TABC no later than 5:00 p.m., central time, January 4, 2026. Send your comments to rules@tabc.texas.gov or to the Office of the General Counsel, Texas Alcoholic Beverage Commission, P.O. Box 13127, Austin, Texas 78711-3127. TABC staff will hold a public hearing to receive oral comments on the proposed rule at 10:00 a.m. on December 11, 2025. Interested persons should visit TABC's public website at www.tabc.texas.gov or contact TABC Legal Assistant Amada Clopton at (512) 206-3367, prior to the meeting date to receive further instructions.

SUBCHAPTER C. EXCISE TAXES

STATUTORY AUTHORITY. TABC proposes the amendments and new rule pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §§5.31, 14.10(e), 32.09, and 37.011(d). Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Sections 14.10(e) and 37.011(d) direct the agency to "adopt rules regulating the shared use of [distillery] premises." Section 32.09 provides that "temporary memberships shall be governed by rules promulgated by the commission."

CROSS-REFERENCE TO STATUTE. The proposed amendment to §41.37 implements Alcoholic Beverage Code §§201.03, 201.04, and 203.01. The proposed amendment to §41.43 implements Alcoholic Beverage Code §5.31. The proposed amendment to §41.50 implements Alcoholic Beverage Code §32.13. The proposed amendment to §41.52 implements Alcoholic Beverage Code §32.09. The proposed amendment to §41.53 and new §41.57 implement Alcoholic Beverage Code §32.06. The proposed amendment to §41.65 implements Alcoholic Beverage Code §§14.10 and 37.011.

§41.37. Destructions.

(a) Each permittee subject to the provisions of Alcoholic Beverage Code §§201.03[,] or 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) - (i) (No change.)

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

Filed with the Office of the Secretary of State on November 18, 2025.

TRD-202504210

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: January 4, 2026

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

SUBCHAPTER D. SALES OF ALCOHOLIC BEVERAGES NOT IN REGULAR COURSE OF BUSINESS

The amendment is proposed pursuant to TABC's rulemaking authority under Alcoholic Beverage Code §5.31, which authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code.

CROSS-REFERENCE TO STATUTE. The proposed amendment to §41.37 implements Alcoholic Beverage Code §§201.03, 201.04, and 203.01. The proposed amendment to §41.43 implements Alcoholic Beverage Code §5.31. The proposed amendment to §41.50 implements Alcoholic Beverage Code §32.13. The proposed amendment to §41.52 implements Alcoholic Beverage Code §32.09. The proposed amendment to §41.53 and new §41.57 implement Alcoholic Beverage Code §32.06. The proposed amendment to §41.65 implements Alcoholic Beverage Code §§14.10 and 37.011.

§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) - (h) (No change.)

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

Filed with the Office of the Secretary of State on November 18, 2025.

TRD-202504211

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: January 4, 2026

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

SUBCHAPTER E. PRIVATE CLUBS

The amendments and new rule are proposed pursuant to TABC's rulemaking authority under Alcoholic Beverage Code §§5.31 and 32.09. Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Section 32.09(d) provides that "temporary memberships shall be governed by rules promulgated by the commission."

CROSS-REFERENCE TO STATUTE. The proposed amendment to §41.37 implements Alcoholic Beverage Code §§201.03, 201.04, and 203.01. The proposed amendment to §41.43 implements Alcoholic Beverage Code §5.31. The proposed amendment to §41.50 implements Alcoholic Beverage Code §32.13. The proposed amendment to §41.52 implements Alcoholic Beverage Code §32.09. The proposed amendment to §41.53 and new §41.57 implement Alcoholic Beverage Code §32.06. The proposed amendment to §41.65 implements Alcoholic Beverage Code §§14.10 and 37.011.

§41.50. General Provisions.

(a) (No change.)

(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.

§41.52. Temporary Memberships.

(a) (No change.)

(b) A holder of a private club registration permit shall:

(1) purchase, issue, and maintain 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.

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

§41.53. Pool Systems.

(a) - (d) (No change.)

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

Filed with the Office of the Secretary of State on November 18, 2025.

TRD-202504212

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: January 4, 2026

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

SUBCHAPTER G. OPERATING AGREEMENTS BETWEEN PERMIT AND LICENSE HOLDERS

The amendments are proposed pursuant to TABC's rulemaking authority under Alcoholic Beverage Code §§14.10(e) and 37.011(d), which direct the agency to "adopt rules regulating the shared use of [distillery] premises."

CROSS-REFERENCE TO STATUTE. The proposed amendment to §41.37 implements Alcoholic Beverage Code §§201.03, 201.04, and 203.01. The proposed amendment to §41.43 implements Alcoholic Beverage Code §5.31. The proposed amendment to §41.50 implements Alcoholic Beverage Code §32.13. The proposed amendment to §41.52 implements Alcoholic Beverage Code §32.09. The proposed amendment to §41.53 and new §41.57 implement Alcoholic Beverage Code §32.06. The proposed amendment to §41.65 implements Alcoholic Beverage Code §§14.10 and 37.011.

§41.65. Contract Distilling Arrangements and Distillery Alternating Proprietorships.

(a) - (d) (No change.)

(e) Pursuant to Alcoholic Beverage Code §§14.10(d) and 37.011(c), a distiller ("Distiller A") who manufactures, bottles, packages, or labels distilled spirits on behalf of another distiller ("Distiller B") or nonresident seller under a contract distilling arrangement may not consider the distilled spirits as being owned by Distiller A or sell those products on Distiller A's premises. A wholesaler or authorized carrier may, at the request of Distiller B or the nonresident seller, transport distilled spirits directly from Distiller A's premises for the purpose of resale to an authorized permittee or a qualified person outside this state.

(f) - (k) (No change.)

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

Filed with the Office of the Secretary of State on November 18, 2025.

TRD-202504213

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: January 4, 2026

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

CHAPTER 45. MARKETING PRACTICES

SUBCHAPTER G. REGULATION OF CASH AND CREDIT TRANSACTIONS

The Texas Alcoholic Beverage Commission (TABC) proposes amendments to 16 TAC §45.130, relating to Credit Law and Delinquent List; and §45.131, relating to Cash Law. The proposed amendments make non-substantive and clarifying revisions reflecting current agency practices that were identified as part of the agency's quadrennial rule review. The proposed amendments also make fixes to previous clerical errors.

The proposed amendment to §45.130(b) more accurately lists the applicable permit types subject to Alcoholic Beverage Code §102.32, which governs liquor sales and credit restrictions between wholesalers and retailers. The proposed amendment to §45.130(c) adds identification stamps to the invoice requirement to better align with the recordkeeping requirements in Alcoholic Beverage Code §206.01. The proposed amendments to §45.130(d) clarify that the payment dates are calculated using business days to more accurately track the statutory text in Alcoholic Beverage Code §102.32. The proposed amendment to §45.130(h) codifies the long-standing practice that disputed delinquencies must be approved by the agency before a business is removed from the delinquent list.

The proposed amendment to §45.131(b) more accurately lists the applicable permit types subject to the requirements of Alcoholic Beverage Code §102.32. The proposed amendment to §45.131(c) fixes clerical errors in the current rule text.

TABC presented the proposed amendments at a stakeholder meeting on October 9, 2025, and considered comments received from stakeholders in drafting the proposed amendments.

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

PUBLIC BENEFIT AND COST NOTE. For each year of the first five years the proposed amendments are in effect, Mrs. Maceyra expects that enforcing or administering the amended rules will have the public benefit of clarifying existing regulations and aligning the rules' requirements with current agency practices. Mrs. Maceyra does not expect the proposed amendments will impose economic costs on persons required to comply with the amended rules.

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

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

- will not create or eliminate a government program;

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

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

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

- will not create a new regulation;

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

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

- will not positively or adversely affect the Texas economy.

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

REQUEST FOR PUBLIC COMMENT. TABC requests comments on the proposed amendments from any person interested in the amendments. Additionally, TABC requests information related to the cost, benefit, or effect of the proposed amendments, including any applicable data, research, or analysis, from any person required to comply with the proposed amendments or any other interested person. TABC will consider any written comments on the proposal that are received by TABC no later than 5:00 p.m., central time, January 4, 2026. Send your comments to rules@tabc.texas.gov or to the Office of the General Counsel, Texas Alcoholic Beverage Commission, P.O. Box 13127, Austin, Texas 78711-3127. TABC staff will hold a public hearing to receive oral comments on the proposed rule at 10:00 a.m. on December 11, 2025. Interested persons should visit TABC's public website at www.tabc.texas.gov or contact TABC Legal Assistant Amada Clopton at (512) 206-3367, prior to the meeting date to receive further instructions.

STATUTORY AUTHORITY. TABC proposes the amendments pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §§5.31, 102.31(e), and 102.32(f). Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Sections 102.31(e) and 102.32(f) direct the agency to adopt rules to effectuate the code's cash and credit law requirements.

CROSS-REFERENCE TO STATUTE. The proposed amendments to §45.130 implement Alcoholic Beverage Code §102.32. The proposed amendments to §45.131 implement Alcoholic Beverage Code §102.31.

§45.130. Credit Law and Delinquent List.

(a) (No change.)

(b) Definitions. For purposes of this section, the following terms have the definitions given in this subsection.

(1) - (6) (No change.)

(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;

(C) the holder of a local distributor's permit when making a sale of an alcoholic beverage that is not the sale of a malt beverage to a mixed beverage permittee, private club registration permittee, private club exemption certificate 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.

(c) Invoices.

(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 TABC identification stamps issued, the price and terms of sale, and the place and date of delivery.

(2) - (4) (No change.)

(d) Late Payment Violation.

(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 business days from [of] the date [that] payment is due under §102.32(c) of the Code, the payment is not late.

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

(4) A Retailer who violates this section shall be placed on the Delinquent List unless the delinquent account is paid within four business days from [of] the date [that] payment is due under §102.32(c) of the Code.

(5) (No change.)

(e) - (g) (No change.)

(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 statements [statement] or records [of bank] showing funds were available in the account of Retailer on the date the check was delivered to Seller; and

(C) bank statements [statement] or records showing:

(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 and approved by the executive director or their designee.

(4) The Retailer must immediately submit an electronic notice of resolution of a dispute to the commission under this subsection.

(i) - (k) (No change.)

§45.131. Cash Law.

(a) (No change.)

(b) Definitions. For purposes of this section, the following terms have the meaning given in this subsection.

(1) - (6) (No change.)

(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, private club registration permittee, private club exemption certificate 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;

(C) the holder of a general or branch distributor's license;

(D) the holder of a brewer's self- distribution license under Chapter 62A of the Code; and

(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.

(c) Invoices. A delivery of malt 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 malt beverages, the price, and the place and date of delivery.

(1) The Seller's copy of the invoice must be signed by the Retailer to verify receipt of the malt beverages and accuracy of the invoice, and by the Seller to acknowledge that payment was received on or before the delivery.

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

(d) - (h) (No change.)

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

Filed with the Office of the Secretary of State on November 18, 2025.

TRD-202504214

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: January 4, 2026

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