TITLE 16. ECONOMIC REGULATION

PART 3. TEXAS ALCOHOLIC BEVERAGE COMMISSION

CHAPTER 33. LICENSING

SUBCHAPTER E. EVENTS AT A TEMPORARY LOCATION

The Texas Alcoholic Beverage Commission (TABC) proposes amendments to 16 TAC §33.72, relating to Term of Authorization, Annual Limitation on Authorizations; 16 TAC §33.77, relating to Request for Temporary Event Approval; and 16 TAC §33.81, relating to Purchase of Alcohol for a Temporary Event. The proposed amendments are necessary to implement legislation. Senate Bill 1577 (89th Regular Session) amended Alcoholic Beverage Code §28.20 by authorizing a mixed beverage permit holder to temporarily sell distilled spirits at certain racing facilities. Before SB 1577 became effective, only wine and malt beverages could be sold under §28.20. The bill also expanded the types of events at which alcohol may be sold to include all types of events held at an authorized racing facility.

The proposed amendments to §33.72(a) and §33.77(f) implement SB 1577 by removing references to "racing events" to account for the additional types of events authorized under Alcoholic Beverage Code §28.20(a). The proposed amendments to §33.81(e) implement SB 1577 by accounting for the new authorization to sell distilled spirits.

The proposed amendments to §33.81(b)(1) and §33.81(f) incorporate the purchase authorization for distilled spirits in Alcoholic Beverage Code §28.07(b). Generally, mixed beverage permittees must purchase all distilled spirits from the holder of a local distributor's permit located in the same county as the mixed beverage permittee. See Tex. Alco. Bev Code §28.07(a). Additionally, for a temporary event at an authorized racing facility, Alcoholic Beverage Code §28.20(e)(1) requires mixed beverage permittees to "purchase [alcoholic] beverages from a distributor or wholesaler authorized under [the] code to sell the beverages" who is located in the same county as the racing facility. In the context of distilled spirits, the only authorized distributor or wholesaler is the holder of a local distributor's permit. See id. §§19.01(3), 23.01(a)(2), and 28.07(a). However, if there are no local distributor permittees within the same county as a mixed beverage permit holder, section 28.07(b) authorizes the mixed beverage permittee to purchase distilled spirits in the nearest county that has a local distributor. The proposed amendments account for scenarios wherein there are no local distributors in the same county as a mixed beverage permittee's primary premises (§33.81(b)(1)) or in the same county as an authorized racing facility (§33.81(f)) so mixed beverage permittees' purchases of distilled spirits adhere to the Alcoholic Beverage Code's purchase location requirements.

Lastly, the proposed amendments to §33.72(e) and §33.77(a)-(b) make non-substantive grammatical changes to fix prior clerical errors.

TABC presented the proposed amendments at a stakeholder meeting on August 14, 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 implementing new legislation, ensuring current rules align with existing statutes, and clarifying existing regulations. 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 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, November 9, 2025. 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 October 23, 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 and 28.20(g). Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Section 28.20(g) authorizes TABC to adopt rules to implement temporary events at certain racing facilities.

CROSS-REFERENCE TO STATUTE. The proposed amendments to §§33.72, 33.77, and 33.81 implement Alcoholic Beverage Code §§28.07 and 28.20.

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

(a) (No change.)

(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.

(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) - (h) (No change.)

§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 requestor [~~requester~~].

(b) The requestor [~~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.

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

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

(a) (No change.)

(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, or in the nearest county as provided by Alcoholic Beverage Code §28.07(b); 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.

(d) Except as restricted by subsection (e) and (f) 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 distilled spirits, 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 alcoholic [~~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.

(f) Notwithstanding the purchase requirement in Alcoholic Beverage Code §28.20(e), and in accordance with Alcoholic Beverage Code §28.07(b), if the county in which a racing facility under Alcoholic Beverage Code §28.20 is located does not have a local distributor, the mixed beverage permittee may purchase distilled spirits for the event in the nearest county that has a local distributor's permittee.

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 September 23, 2025.

TRD-202503401

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 9, 2025

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

CHAPTER 34. SCHEDULE OF SANCTIONS AND PENALTIES

16 TAC §34.10

The Texas Alcoholic Beverage Commission (TABC) proposes amendments to 16 TAC §34.10, relating to Sanctions for Regulatory Violations. The amendments to §34.10 implement Senate Bill 1355 (89th Regular Session) by adding a new administrative violation and corresponding penalty to the existing list of violations and penalties in subsection (g). SB 1355 made it a violation of the Alcoholic Beverage Code for the holder of a wholesaler's permit to become delinquent in payments to a distiller's and rectifier's permit holder for liquor sales. SB 1355 is codified at Alcoholic Beverage Code §102.33.

The proposed amendments also add new subsection (h), which establishes a base penalty of $250 for violations of §102.33. However, that amount may be modified by TABC based on the totality of the circumstances, including the factors outlined in §102.33(d): (1) the duration of the delinquency; (2) the amount of the delinquent payment; (3) any previous violations of §102.33 committed by the wholesaler; (4) the financial resources of the wholesaler; and (5) any other factors TABC determines relevant.

In a simultaneous rulemaking, TABC is proposing new 16 TAC §45.132, which further implements SB 1355. TABC presented the proposed amendments at a stakeholder meeting on August 14, 2025, and considered comments received from stakeholders in drafting the proposed amendments.

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 reducing delinquent payments to distillers and implementing new legislation. Mrs. Maceyra does not expect the proposed amendments will impose economic costs beyond any costs attributable to SB 1355.

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 create new regulations;

- 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.

STATUTORY AUTHORITY. TABC proposes amendments to §34.10 pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §§5.31, 5.362, and 102.33(e). Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Section 5.362 directs TABC to "adopt a schedule of sanctions that may be imposed on a license or permit holder" for violations of the Alcoholic Beverage Code or commission rules. Section 102.33(e) directs TABC to adopt rules to implement the credit restrictions for the sale of liquor by a distiller to a wholesaler under section 102.33.

CROSS-REFERENCE TO STATUTE. The proposed amendments to §34.10 implement Alcoholic Beverage Code §§5.362 and 102.33.

§34.10. Sanctions for Regulatory Violations.

(a) - (f) (No change.)

(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) (.pdf)

[~~Figure: 16 TAC §34.10(g)~~]

(h) Wholesalers who violate Alcoholic Beverage Code §102.33 will be assessed a base penalty of $250 as shown in Figure §34.10(g), but this sanction may be augmented or discounted based upon all relevant facts and circumstances, including the factors listed in Alcoholic Beverage Code §102.33(d).

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 September 23, 2025.

TRD-202503402

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 9, 2025

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

CHAPTER 41. AUDITING

16 TAC §41.28

The Texas Alcoholic Beverage Commission (TABC) proposes new 16 TAC §41.28, relating to Passenger Transportation Permit Storage Registration. The proposed rule implements House Bill 4285 (89th Regular Session) by establishing registration and notice requirements for certain commercial airlines who wish to store alcoholic beverages at a location other than an airport. Prior to the passage of HB 4285, Alcoholic Beverage Code §48.03 authorized commercial airlines that hold a passenger transportation permit to store alcoholic beverages at only one type of location an airport regularly served by the permittee. HB 4285 expanded §48.03 by also authorizing the storage of alcoholic beverages at a location within five miles of the airport that is also in the same county as the airport.

Proposed §41.28 requires passenger transportation permittees to submit the address of any storage location outside of an airport to TABC prior to storing alcohol at the location. The submission must be made using a form provided by the agency and the permittee must also include any other information requested on the form. Lastly, any changes to the provided information must be submitted to TABC within 30 days of the change. TABC requires this information to fulfill its regulatory duties under the Alcoholic Beverage Code. See, e.g., Alco. Bev. Code §§5.31(b), 5.32.

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 rule is in effect, there will be no fiscal impact on state or local governments because of enforcing or administering the proposed rule. Mrs. Maceyra made this determination because the proposed new rule does not add to or decrease state revenues or expenditures, and because local governments are not involved in enforcing or complying with the proposed rule. 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 rule is in effect, Mrs. Maceyra expects that administering the new rule will have the public benefit of aiding TABC in its enforcement of the Alcoholic Beverage Code by giving the agency the information necessary to identify where alcoholic beverages are being stored under §48.03. Mrs. Maceyra does not expect the proposed rule will impose economic costs on persons required to comply with it, except the minimal time necessary to provide TABC with the required information. See Alco. Bev. Code §5.32 ("The commission may require persons engaged in the alcoholic beverage business to provide information . . . the commission finds necessary to accomplish the purposes of this code.").

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS.

TABC has determined that the proposed 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 rule is in effect, it:

- will not create or eliminate a government program;

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

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

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

- will create a new regulation;

- 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 rule from any person interested in the rule. Additionally, TABC requests information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research, or analysis, from any person required to comply with the proposed 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, November 9, 2025. 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 October 23, 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 rule pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §§5.31 and 48.03(b). Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Section 48.03 authorizes TABC to promulgate rules relating to the storage of alcoholic beverages by commercial airlines who hold a passenger transportation permit.

CROSS-REFERENCE TO STATUTE. Proposed §41.28 implements Alcoholic Beverage Code §48.03.

§41.28. Passenger Transportation Permit Storage Registration.

(a) This section implements Alcoholic Beverage Code §48.03(b).

(b) A commercial airline that holds a passenger transportation permit issued under Alcoholic Beverage Code §48.03 may store alcoholic beverages in sealed containers of any size at:

(1) any airport regularly served by the permittee; or

(2) a location within five miles of any airport regularly served by the permittee in the same county as the airport.

(c) Prior to storing alcoholic beverages at a location authorized under subsection (b)(2) of this section, the permittee shall report to the commission the address of the storage location and all other information required on a form prescribed by the commission.

(d) Should any information provided to the commission under this section change, the permittee must submit a new form with updated information to the commission within 30 days of the 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 September 23, 2025.

TRD-202503404

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 9, 2025

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

CHAPTER 45. MARKETING PRACTICES

SUBCHAPTER D. SPECIFIC REQUIREMENTS FOR MALT BEVERAGES

16 TAC §45.40, §45.44

The Texas Alcoholic Beverage Commission (TABC) proposes amendments to 16 TAC §45.40, relating to Certificate of Registration for a Malt Beverage Product, and new 16 TAC §45.44, relating to Requirements Relating to Nonresident Brewer's Licenses. The proposed amendments and new rule are necessary to implement House Bill 4463 (89th Regular Session), which adopted a primary American source of supply requirement for nonresident brewers who import malt beverages into Texas. This requirement was codified at Alcoholic Beverage Code §63.06. HB 4463 also amended Alcoholic Beverage Code §63.01(b) to authorize issuance of a single nonresident brewer's license to cover all of the brewer's locations outside the state.

Proposed §45.40(e) implements HB 4463 by establishing notification requirements for nonresident brewers applying for product registration. Alcoholic Beverage Code §63.06 defines "primary American source of supply" as "the brewer, the producer, the owner of the commodity at the time it becomes a marketable product, the bottler, or the exclusive agent of any of those." It additionally provides that "to be the ‘primary American source of supply' the nonresident brewer must be the first source, that is, the manufacturer or the source closest to the manufacturer, in the channel of commerce from whom the product can be secured by Texas distributors or brewers." This allows either the actual manufacturer of malt beverages or the manufacturer's exclusive agent to apply for product registration. Proposed §45.40(e) will help TABC ensure product registration applicants meet these requirements.

Proposed §45.40(e)(1) requires a sworn statement that the applicant is the primary American source of supply for the product to be registered. Proposed §45.40(e)(2) - (3) require sworn statements from the person listed on the product's COLA or TTB formulation currently required in applications under §45.40(d), but only if the applicant is not identified on those documents. It's the agency's intent that these statements would not need to be provided if the applicant is the actual manufacturer.

Proposed §45.40(e)(4) requires a sworn authorization to revoke a prior registration if the malt beverage product has previously been registered by a different license holder. Currently, product registrations do not expire. However, Alcoholic Beverage Code §63.06(c) states that a malt beverage "product may have only one primary American source of supply to Texas." The proposed amendment will help TABC ensure malt beverage products are not registered to multiple license holders.

Proposed §45.40(f) provides TABC with flexibility in implementing this new provision by authorizing a waiver to the requirements in §45.40(e)(2) - (4) for good cause shown by the applicant. The requirements in current §45.40(e) have been relocated to proposed §45.40(g).

Proposed new §45.44 implements Alcoholic Beverage Code §63.01(b) by clarifying that a nonresident brewer must hold a license before shipping malt beverages into Texas or registering malt beverage products in Texas, but is not required to hold a separate license with TABC for each brewing location outside the state. Proposed §45.44(a) provides a citation to the controlling statutes in the Alcoholic Beverage Code. Proposed §45.44(b) implements the general requirement in Alcoholic Beverage Code §61.01 to obtain a license before importing malt beverages, and the related personal importation and military installation exceptions in Alcoholic Beverage Code §§107.06(c), 107.07(a), 107.11(a), and 203.05(a)(3).

Proposed §45.44(c) implements the product registration requirement in Alcoholic Beverage Code §101.67. Proposed §45.44(d) implements HB 4463's amendments to Alcoholic Beverage Code §63.01(b) authorizing a single nonresident brewer's license for each location outside of Texas. Proposed §45.44(e) requires nonresident brewer's license holders to maintain a list of their out-of-state locations from which the brewer causes malt beverages to be transported into Texas. This information must be provided to TABC upon request. This requirement will help TABC fulfill its regulatory obligations. See, e,g, Tex. Alco. Bev. Code §§5.31(b) (listing the agency's general duties) and 5.32 (authorizing TABC to require licensees to provide the agency with information necessary to accomplish the purposes of the Alcoholic Beverage Code).

TABC presented the proposed rulemaking at a stakeholder meeting on August 14, 2025, and considered comments received from stakeholders in drafting this proposal.

FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATEMENT. Andrea Maceyra, Chief of Regulatory Affairs, has determined that during each year of the first five years the proposed amendments and new rule are in effect, there will be no fiscal impact on state or local governments because of enforcing or administering the amendments and new rule. 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 amendments or new rule. 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 amendments and new rule will have the public benefit of implementing new legislation, helping TABC enforce the Alcoholic Beverage Code, and expanding the types of businesses who may engage in the sale of malt beverages in this state. Mrs. Maceyra does not expect the proposed amendments and new rule will impose economic costs on persons required to comply with the proposal, other than the negligible cost of maintaining relevant information and providing it to TABC.

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 new regulations;

- 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.

REQUEST FOR PUBLIC COMMENT. TABC requests comments on the proposed amendments and new rule from any person interested in the amendments and rule. Additionally, TABC requests information related to the cost, benefit, or effect of the proposed amendments and rule, including any applicable data, research, or analysis, from any person required to comply with the proposed amendments and 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, November 9, 2025. 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 October 23, 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 amendments to §45.40 and new §45.44 pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §5.31 and under Section 5 of HB 4463. Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Section 5, HB 4463, directs TABC to, as soon as practicable, promulgate rules to implement changes in law made by the bill.

CROSS-REFERENCE TO STATUTE. The proposed amendments to §45.40 and implement Alcoholic Beverage Code §§63.01, 63.06, and 101.67. Proposed new §45.44 implements Alcoholic Beverage Code §§61.01, 63.01, 63.06, 101.67, 107.06, 107.07, 107.11, and 203.05.

§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 product 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.

(c) A nonresident brewer's agent may file an application for a certificate of product registration on behalf of a holder of a nonresident brewer's license.

(d) The application to register a malt beverage product must contain the following:

(1) If the product is eligible for a COLA:

(A) a legible copy of the product's COLA;

(B) all information required to complete the application form; and

(2) If the product is not eligible for a COLA:

(A) a legible exact color copy of the label;

(B) a TTB formulation;

(D) an application fee of $25.

(e) In addition to the requirements in subsection (d), an application submitted by or on behalf of a nonresident brewer shall also include: [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.]

(1) a sworn statement that the nonresident brewer is the primary American source of supply as defined in Alcoholic Beverage Code §63.06(c);

(2) if the applicant is not listed on the COLA, a written authorization sworn to by the COLA holder appointing the applicant as the "exclusive agent" or "primary American source of supply" of the malt beverage for Texas;

(3) if the product is not eligible for a COLA, a written authorization sworn to by the person to whom the TTB formulation has been issued appointing the applicant as the "exclusive agent" or "primary American source of supply" of the malt beverage for Texas; and

(4) if the application pertains to a malt beverage currently registered to a separate brewer or nonresident brewer, a written authorization to revoke the prior registration sworn to by the prior registrant.

(f) The executive director or their designee may waive the requirement to provide the documentation in subsection (e)(2)-(4) of this section for good cause shown by the applicant.

(g) 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.

§45.44. Requirements Relating to Nonresident Brewer's Licenses.

(a) This section implements Alcoholic Beverage Code §§63.01(b) and 63.06.

(b) A person may not import, or cause to be imported, malt beverages into this state unless the person has first obtained a nonresident brewer's license issued by the commission. This subsection does not apply to malt beverages that are:

(1) imported by a person in accordance with Alcoholic Beverage Code §§107.07 or 107.11;

(2) part of an interstate shipment in which the ultimate receiver of the malt beverages is located outside this state; or

(3) consigned and transported to an installation of the national military establishment under federal jurisdiction for consumption by military personnel on that installation.

(c) The holder of a nonresident brewer's license may not import, or cause to be imported, malt beverages into this state unless the holder has first registered the malt beverages with the commission in accordance with Alcoholic Beverage Code §101.67.

(d) The holder of a nonresident brewer's license is not required to hold a separate license for each of the license holder's locations outside of this state.

(e) The holder of a nonresident brewer's license shall maintain a list of all the license holder's locations from which the license holder transports, or causes to be transported, malt beverages into this state. The list shall be made available to the commission upon request.

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 September 23, 2025.

TRD-202503403

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 9, 2025

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

SUBCHAPTER G. REGULATION OF CASH AND CREDIT TRANSACTIONS

16 TAC §45.132

The Texas Alcoholic Beverage Commission (TABC) proposes new 16 TAC §45.132, relating to Wholesaler Delinquent to Distiller and Rectifier. The proposed rule is necessary to implement legislation. Senate Bill 1355 (89th Regular Session) sets forth requirements for liquor sales on credit by the holder of a distiller's and rectifier's permit to a wholesaler. The bill requires TABC to adopt implementing rules, including rules regarding the submission of supporting documentation by the holder of a distiller's and rectifier's permit. The proposed rule implements SB 1355 by providing a framework for reporting a wholesaler's delinquent payment and by establishing a process for agency action when a delinquency is reported.

Proposed §45.132(a) provides a citation to the controlling statute in the Alcoholic Beverage Code. Proposed §45.132(b) establishes the factors that must occur before a delinquency rises to an actionable violation. Pursuant to Alcoholic Beverage Code §102.33(c), a wholesaler does not become delinquent until the wholesaler, in accordance with the terms of a contract or written agreement with a distiller: (1) fails to pay the amount due to a distiller on or before the date payment is due under the agreement's terms; and (2) subsequently fails to pay the amount due after receipt of a demand for payment. Thus, a violative delinquency does not occur until a wholesaler fails to pay by an initial payment deadline, receives a demand for the missed payment, and again fails to pay by a second payment deadline. Stakeholders have informed the agency that the standard industry practice for these types of agreements is to have an initial payment due date, but not a second due date after a demand for payment is made. Subsection (b) accounts for this practice by setting forth a default payment deadline of 30 days from receipt of a demand for payment, which may be modified through a written agreement.

Proposed §45.132(c) establishes the process for reporting a delinquent wholesaler. Subsection (c)(1) requires the distiller to submit a complaint in accordance with 16 TAC §31.10. Subsection (c)(2) outlines the supporting documentation and information that must accompany a written complaint, including (1) the name and permit numbers of the involved permittees; (2) a copy of the invoice for the liquor ordered by the wholesaler; (3) evidence proving up the wholesaler's order, the date of delivery, and the agreed payment terms; and (4) proof that a demand for payment was sent to the wholesaler along with the date the demand was sent. Subsection (c)(3) clarifies that a delinquent payment is not actionable by TABC unless the distiller and wholesaler have entered into a written agreement clearly setting forth payment terms, which, at a minimum, include the number of days from which payment is due after the delivery of liquor to the wholesaler.

Proposed §§45.132(d) and 45.132(e) provide timelines for a wholesaler to dispute an alleged delinquency after receiving notice of the complaint and for a distiller to report a wholesaler who becomes delinquent under §45.132(b), respectively.

Proposed §45.132(f) creates a rebuttable presumption for the date on which a demand for payment is considered received by a wholesaler, depending on the method of transmission. Demands sent by US mail or a common or contract carrier are presumed to be received on the third day from the date the demand is deposited with the postal service or carrier. If a delivery tracking service is used, the presumed date of receipt is the delivery date indicated by the service. Demands sent electronically are presumed to be received the same day if sent during business hours. Demands sent electronically on a weekend, a federal holiday, or after 5:00 p.m. (central time) are presumed to be received the following business day. The subsection's presumptions may be modified by agreement or rebutted by sufficient evidence proving a different date of receipt.

Lastly, proposed §45.132(g) clarifies that a distiller is not required to report a delinquent wholesaler and that TABC will not attribute a violation to a wholesaler unless the delinquency is reported in accordance with the proposed rule, including the reporting deadlines.

In a simultaneous rulemaking, TABC is proposing amendments to 16 TAC §34.10, which further implement SB 1355. TABC presented the proposed rule at a stakeholder meeting on August 14, 2025, and considered comments received from stakeholders in drafting the proposed rule.

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 rule is in effect, there will be no fiscal impact on state or local governments because of enforcing or administering the proposed rule. Mrs. Maceyra made this determination because the proposed rule does not add to or decrease state revenues or expenditures, and because local governments are not involved in enforcing or complying with the proposed rule. 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 rule is in effect, Mrs. Maceyra expects that enforcing or administering the proposed rule will have the public benefit of reducing delinquent payments to distillers and implementing new legislation. Mrs. Maceyra does not expect the proposed rule will impose economic costs beyond any costs attributable to SB 1355.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS. TABC has determined that the proposed 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 rule is in effect, it:

- will not create or eliminate a government program;

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

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

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

- will 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.

REQUEST FOR PUBLIC COMMENT. TABC requests comments on the proposed rule from any person interested in the rule. Additionally, TABC requests information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research, or analysis, from any person required to comply with the proposed 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, November 9, 2025. 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 October 23, 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 new §45.132 pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §§5.31 and 102.33(e). Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Section 102.33(e) directs TABC to adopt rules to implement the credit restrictions for the sale of liquor by a distiller to a wholesaler under section 102.33.

CROSS-REFERENCE TO STATUTE. Proposed §45.132 implements Alcoholic Beverage Code §102.33.

§45.132. Wholesaler Delinquent to Distiller and Rectifier.

(a) This section implements Alcoholic Beverage Code §102.33.

(b) An administrative violation of Alcoholic Beverage Code §102.33 does not occur until the holder of a wholesaler's permit:

(1) fails to pay the amount due to the holder of the distiller's and rectifier's permit on or before the date payment is required under the agreed terms of a contract or written agreement between the holder of the distiller's and rectifier's permit and the wholesaler; and

(2) fails to pay the amount due to the holder of the distiller's and rectifier's permit within 30 days, or another deadline agreed upon in writing, after receiving a demand for payment from the holder of the distiller's and rectifier's permit.

(1) A distiller's and rectifier's permit holder may report a delinquent wholesaler by submitting a complaint to the commission in accordance with §31.10.

(2) A complaint alleging a delinquent payment under Alcoholic Beverage Code §102.33 must be made in writing and include the following supporting documentation and information:

(A) the name and permit numbers of the involved permit holders;

(B) a copy of the invoice required by Alcoholic Beverage Code §102.33(a) applicable to the alleged delinquent payment;

(C) sufficient evidence showing proof of the wholesaler's order, the date of delivery, and the payment terms agreed to by both parties; and

(D) proof that a demand for payment was sent to the wholesaler, including the date the demand was sent.

(3) The commission will not take action on a complaint alleging a delinquent payment under Alcoholic Beverage Code §102.33 unless the permittees have entered into a written contract or agreement that clearly sets forth the terms of payment, including the number of days from which payment is due after the delivery of liquor purchased by the wholesaler.

(d) A wholesaler may dispute an alleged delinquency by submitting supporting documentation, including evidence of payment, within 10 days of notice by the commission of the complaint.

(e) Timeline to Report Violations. Alleged violations shall be reported to the commission within 45 days from the date a wholesaler becomes delinquent under subsection (b) of this section. Violations reported to the commission after 45 days from the delinquency are not actionable by the commission.

(f) Unless otherwise agreed in writing, it is a rebuttable presumption that a demand for payment sent under this section is received by a wholesaler as follows:

(1) A demand sent by United States mail or by common or contract carrier is considered received on the third day after the date the demand is deposited with the postal service or carrier, provided that the demand was properly addressed and postage or carrier charges were paid. If a tracking or delivery verification service is used, including certified mail or a similar method, a demand is considered received on the delivery date indicated by such service.

(2) A demand sent by electronic mail or some other electronic means during business hours is considered received on the same date it was sent, provided that the demand was sent to a valid electronic address used by the wholesaler. A demand sent electronically on the weekend, a federal holiday, or after 5:00 p.m. Central Time is considered received the next business day.

(g) The holder of a distiller's and rectifier's permit is not required to report a delinquent wholesaler. An administrative violation will not be attributed to a wholesaler who becomes delinquent unless the delinquency is reported to the commission in accordance with this section.

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 September 23, 2025.

TRD-202503405

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 9, 2025

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

PART 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

CHAPTER 60. PROCEDURAL RULES OF THE COMMISSION AND THE DEPARTMENT

The Texas Department of Licensing and Regulation (Department) proposes amendments to existing rules at 16 Texas Administrative Code (TAC), Chapter 60, Subchapter B, §60.22, and Subchapter C, §60.34, and a new rule at Subchapter C, §60.38, regarding the Procedural Rules of the Commission and the Department. These proposed changes are referred to as "proposed rules."

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

The rules under 16 TAC, Chapter 60, Procedural Rules of the Commission and the Department, implement Texas Occupations Code, Chapter 51, Texas Department of Licensing and Regulation, and other laws applicable to state agencies.

The proposed rules implement House Bill (HB) 11, 89th Legislature, Regular Session (2025). The bill amends the Department's enabling act, Chapter 51, Occupations Code, to require the Department to maximize the creation of occupational license reciprocity agreements with licensing authorities in other states. Rulemaking is required to establish procedures to both compare the licensing requirements of other states to those of Texas, and to enter in to and implement reciprocity agreements with those states with substantially equivalent license requirements. The Department must consider the scope of practice for each license; required training, testing, and work experience; and the jurisdiction's procedures to resolve complaints and determine if a license holder is in good standing. HB 11 builds on existing authority in Ch. 51 to enter into reciprocity agreements and to waive prerequisites for licensure for applicants who hold a similar license issued by another jurisdiction that has a reciprocity agreement with Texas.

The proposed rules add the power to enter into reciprocity agreements to the basic powers of the Department and the Executive Director. The proposed rules provide a list of the specific criteria the Department will use to evaluate the licensing requirements of another jurisdiction to determine if they are substantially equivalent to those of Texas. Further, the proposed rules include a concise list of the minimum requirements a license applicant must satisfy to obtain a Texas license when a reciprocity agreement is in place. In addition to establishing that the reciprocity and license requirements in Chapter 60 are subject to any different or more stringent requirements in Chapter 60, TAC; Ch. 51, Occupations Code; or the program statutes and rules governing the particular license, the Department reserves sole discretion to determine if the licensing requirements of the other jurisdiction are substantially equivalent to those of Texas. These rules are necessary to aid the Department to affirmatively seek to create more reciprocity agreements by providing clear notice to other jurisdictions of the criteria and conditions the Department will examine and consider going forward.

SECTION-BY-SECTION SUMMARY

The proposed rules amend §60.22, General Powers and Duties of the Department and the Executive Director, to include the responsibility to enter into reciprocity agreements with licensing authorities in other jurisdictions.

The proposed rules amend §60.34, Substantially Equivalent License Requirements, to update and clarify the applicability of the section to persons holding a license in another jurisdiction, and to specify the requirements for that license that the Department will examine. These include requirements related to: scope of practice, experience, training, education, examination, accreditation by other entities, financial security or insurance, standards of conduct, criminal history, and procedures to resolve complaints and to determine good standing of license holders. The section includes several edits for conciseness and clarity.

The proposed rules add new §60.38, Reciprocity Agreements, to lay out the Department's authority to enter into reciprocity agreements and to list the minimum requirements a license holder must satisfy to obtain a Texas license under a reciprocity agreement with another jurisdiction. The requirements relate to how the license was obtained, how long it has been held, if it is in good standing, whether the applicant has a disqualifying criminal history or has had a license revoked, whether any complaints or allegations are pending in the other jurisdiction, and whether the license holder satisfactorily met examination or other substantially equivalent requirements to obtain the other jurisdiction's license.

FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT

Tony Couvillon, Senior Policy Research and Budget Analyst, has determined that for each year of the first five years the proposed rules are in effect, there are no estimated additional costs or reductions in costs to state or local governments as a result of enforcing or administering the proposed rules.

Tony Couvillon, Senior Policy Research and Budget Analyst, has determined that for each year of the first five years the proposed rules are in effect, there is no estimated increase or loss in revenue to local governments as a result of enforcing or administering the proposed rules. No loss in revenue is predicted for state government, however an increase in state revenue due to increased numbers of license holders due to reciprocity agreements can be expected. More applicants will be eligible to apply for a Texas license due to changes to the substantial equivalence requirements and increased reciprocity with other states. However, it is unknown how many applicants will apply based on the changes made by these proposed rules; therefore, it cannot be estimated how much additional revenue may be collected in any given year. Likewise, any decrease in revenue due to Texas license holders choosing to stop renewing a Texas license when moving elsewhere to work is not subject to prediction.

Mr. Couvillon has also determined that for each year of the first five years the proposed rules are in effect, enforcing or administering the proposed rules does not have foreseeable implications relating to costs or revenues of state or local governments.

LOCAL EMPLOYMENT IMPACT STATEMENT

Mr. Couvillon has determined that the proposed rules may affect employment in some localities because the proposed rules should make it easier for license applicants from other states to become licensed in Texas, which could have a positive impact on local employment. However, it is unknown how many of these applicants will apply and in what areas of the state they will be located. It is therefore unknown but unlikely that there will be enough additional license holders to have an impact on any particular area's local employment numbers. Additionally, licensing reciprocity will allow Texas license holders to more easily relocate to other states to live and work there, so gains in local employment could be countered by some losses as Texas licensees make choices as to where to live and work. Precise impact on local employment therefore is not susceptible to prediction.

PUBLIC BENEFITS

Mr. Couvillon has determined that for each year of the first five-year period the proposed rules are in effect, the public benefit will be that applicants with out-of-state licenses will more easily become licensed and relocate to Texas to work. These applicants could get licensed and begin working more quickly under a reciprocity agreement. Additional license holders will make more workers available to the public and give the public more options.

PROBABLE ECONOMIC COSTS TO PERSONS REQUIRED TO COMPLY WITH PROPOSAL

Mr. Couvillon has determined that for each year of the first five-year period the proposed rules are in effect, there are no anticipated economic costs to persons who are required to comply with the proposed rules.

FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES

There will be no adverse economic effect on small businesses, micro-businesses, or rural communities as a result of the proposed rules. Because the agency has determined that the proposed rule will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, is not required.

ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT

The proposed rules do not have a fiscal note that imposes a cost on regulated persons, including another state agency, a special district, or a local government. Therefore, the agency is not required to take any further action under Texas Government Code §2001.0045.

GOVERNMENT GROWTH IMPACT STATEMENT

Pursuant to Texas Government Code §2001.0221, the agency provides the following Government Growth Impact Statement for the proposed rules. For each year of the first five years the proposed rules will be in effect, the agency has determined the following:

1. The proposed rules do not create or eliminate a government program.

2. Implementation of the proposed rules does not require the creation of new employee positions or the elimination of existing employee positions.

3. Implementation of the proposed rules does not require an increase or decrease in future legislative appropriations to the agency.

4. The proposed rules do not require an increase or decrease in fees paid to the agency.

5. The proposed rules create a new regulation.

6. The proposed rules expand an existing regulation.

7. The proposed rules increase the number of individuals subject to the rules' applicability.

8. The proposed rules do not positively or adversely affect this state's economy.

TAKINGS IMPACT ASSESSMENT

The Department has determined that no private real property interests are affected by the proposed rules and the proposed rules do not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rules do not constitute a taking or require a takings impact assessment under Texas Government Code §2007.043.

PUBLIC COMMENTS AND INFORMATION RELATED TO THE COST, BENEFIT, OR EFFECT OF THE PROPOSED RULES

The Department is requesting public comments on the proposed rules and information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis. Any information that is submitted in response to this request must include an explanation of how and why the submitted information is specific to the proposed rules. Please do not submit copyrighted, confidential, or proprietary information.

Comments on the proposed rules and responses to the request for information may be submitted electronically on the Department's website at https://ga.tdlr.texas.gov:1443/form/Ch60_Rule_Making; by facsimile to (512) 475-3032; or by mail to Monica Nuñez, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711. The deadline for comments is 30 days after publication in the Texas Register.

SUBCHAPTER B. POWERS AND RESPONSIBILITIES

16 TAC §60.22

STATUTORY AUTHORITY

The proposed rules are proposed under Texas Occupations Code, Chapter 51, which authorizes the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement the chapter and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapter 51, and the program statutes for all of the Department programs in which a licensing reciprocity agreement could be created: Agriculture Code, Chapter 301 (Weather Modification and Control); Education Code, Chapter 1001 (Driver and Traffic Safety Education); Government Code, Chapters 171 (Court-Ordered Programs); and 469 (Elimination of Architectural Barriers); Health and Safety Code, Chapters 401, Subchapter M (Laser Hair Removal); 754 (Elevators, Escalators, and Related Equipment); and 755 (Boilers); Labor Code, Chapter 91 (Professional Employer Organizations); Occupations Code, Chapters 202 (Podiatrists); 203 (Midwives); 401 (Speech-Language Pathologists and Audiologists); 402 (Hearing Instrument Fitters and Dispensers); 403 (Dyslexia Practitioners and Therapists); 451 (Athletic Trainers); 455 (Massage Therapy); 506 (Behavior Analysts); 605 (Orthotists and Prosthetists); 701 (Dietitians); 802 (Dog or Cat Breeders); 1151 (Property Tax Professionals); 1152 (Property Tax Consultants); 1202 (Industrialized Housing and Buildings); 1302 (Air Conditioning and Refrigeration Contractors); 1304 (Service Contract Providers and Administrators); 1305 (Electricians); 1603 (Barbers and Cosmetologists); 1802 (Auctioneers); 1806 (Residential Solar Retailers); 1901 (Water Well Drillers); 1902 (Water Well Pump Installers): 1952 (Code Enforcement Officers); 1953 (Sanitarians); 1958 (Mold Assessors and Remediators); 2052 (Combative Sports); 2303 (Vehicle Storage Facilities); 2308 (Vehicle Towing and Booting); 2309 (Used Automotive Parts Recyclers); 2310 (Motor Fuel Metering and Quality); 2311 (Electric Vehicle Charging Stations); and 2402 (Transportation Network and Delivery Network Companies); and Transportation Code, Chapters 551A (Off-Highway Vehicle Training and Safety); and 662 (Motorcycle Operator Training and Safety).

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is House Bill 11, 89th Legislature, Regular Session (2025).

§60.22. General Powers and Duties of the Department and the Executive Director.

(a) The executive director shall have primary responsibility to manage the operations and administration of the department and its programs as provided by Texas Occupations Code, Chapter 51 and other applicable law, including but not limited to:

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

(4) imposing sanctions and administrative penalties for agreed orders and default orders; [~~and~~]

(5) approving, administering, or providing for the administration of exams; and [.]

(6) entering into reciprocity agreements with licensing authorities in other jurisdictions.

(b) - (e) (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 September 26, 2025.

TRD-202503436

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: November 9, 2025

For further information, please call: (512) 475-4879

SUBCHAPTER C. LICENSE APPLICATIONS AND RENEWALS

16 TAC §60.34, §60.38

STATUTORY AUTHORITY

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is House Bill 11, 89th Legislature, Regular Session (2025).

§60.34. Substantially Equivalent License Requirements.

(a) This section is applicable to an applicant who holds a current license issued by another jurisdiction that is similar to a license issued by the department. [~~for:~~]

~~[(1) an applicant who holds a current license issued by another jurisdiction that is similar to a license issued by the department; or]~~

~~[(2) an applicant who is a military service member, military veteran, or military spouse and who is applying for a license under Subchapter K.]~~

(b) (No change.)

(c) A person holding a license issued by [~~Based on the specific license, a license holder from~~] another jurisdiction may be eligible for a Texas license if the other jurisdiction's [~~jurisdiction has~~] licensing requirements [~~that~~] are substantially equivalent to those of [~~the~~] Texas [~~licensing requirements~~].

(d) Unless provided otherwise in the statutes and rules governing a program or license type, the [~~The~~] department will review and evaluate the following criteria to determine if another jurisdiction's licensing requirements are substantially equivalent to those of Texas: [~~in determining "substantially equivalent" as it relates to and is applicable to a specific license:~~]

(1) Scope of practice--the scope of work authorized to be performed under the license;

(2) Experience and training requirements--including the length of time or number of hours of on-the-job experience or training that the other jurisdiction requires applicants to possess to qualify for the particular license;

(3) [~~(1)~~] Education requirements--including the amount of time (hours, months or years) or credits needed to complete any course, program, or curriculum that is a prerequisite for licensure [~~the course/program/curriculum~~];

(4) [~~(2)~~] Examination requirements--including whether the other jurisdiction requires an applicant to pass any examinations [~~in order~~] to obtain the license;[,] the type and content of any such examination(s); and the minimum score needed for an applicant to pass the examination(s) [~~of examinations (written, practical or both), and whether the applicant passed the required examinations in the other jurisdiction~~];

(5) Accreditation requirements--including credentials or accreditation by federal agencies or national or other professional organizations or entities that a person must have to practice a profession.

(6) Financial security or insurance requirements--whether and to what extent the other jurisdiction requires license holders to hold certain insurance policies, secure a bond, or provide other forms of financial security;

(7) Standards of conduct--including requirements for honesty and fair dealing with the public when providing services or goods, in advertising, and in business dealings;

(8) Criminal history--including whether the jurisdiction takes an applicant's or license holder's criminal history into account when determining license eligibility or disqualification; and.

(9) Procedures used in the other jurisdiction to receive and resolve complaints and to determine whether a license holder is in good standing.

[(3) Experience requirements--including the length of time that the applicant has held a license in another jurisdiction, and the amount of time (hours, months or years) the applicant has worked either independently or under the supervision of another license holder as defined by statute or rule for a specific license;]

~~[(4) Training requirements--including training through apprenticeship programs or on-the-job training, as those terms are defined by statute or rule for a specific license; and]~~

[(5) License requirements--including scope of work authorized to be performed under the license issued by the other jurisdiction, and the length of time that the applicant has held a license in another jurisdiction.]

(e) The department may require an applicant under this section to provide additional supporting documentation or [~~and~~] information in order for the department to evaluate the criteria under subsection (d) as it relates to [~~and is applicable to~~] a specific license.

(1) - (2) (No change.)

(f) The department has sole discretion in determining [~~retains the exclusive authority to determine~~] whether [~~or not~~] the licensing requirements for a license issued by another jurisdiction are substantially equivalent to those of [~~the requirements for the~~] Texas [~~license sought~~].

§60.38. Reciprocity Agreements.

(a) The department is authorized by Texas Occupations Code §§51.4041, 51.551, and 51.552 to enter into license reciprocity agreements with licensing authorities in other jurisdictions.

(b) A license holder from another jurisdiction may be eligible for a Texas license if the other jurisdiction has entered into a license reciprocity agreement with the department.

(c) Subject to the requirements of Occupations Code Ch. 51, this chapter, and the statutes and rules applicable to the program and license type for which an individual license or a reciprocity agreement is sought, the department will issue a license to an applicant if the person:

(1) has held the license in the other jurisdiction for at least one year;

(2) did not obtain the license in the other jurisdiction through reciprocity or similar process;

(3) was required to pass an examination or meet substantially equivalent education, training, work history, or other applicable requirements;

(4) possesses a license that is in good standing;

(5) does not have a disqualifying criminal history;

(6) has not had a license revoked in another jurisdiction for misconduct or other noncompliance; and

(7) does not have a complaint, investigation, or allegation pending in the other jurisdiction for misconduct or alleged criminal activity.

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 September 26, 2025.

TRD-202503437

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: November 9, 2025

For further information, please call: (512) 475-4879