TITLE 16. ECONOMIC REGULATION

PART 3. TEXAS ALCOHOLIC BEVERAGE COMMISSION

CHAPTER 31. ADMINISTRATION

The Texas Alcoholic Beverage Commission (TABC) proposes to amend 16 TAC §31.2, relating to State Owned Motor Vehicles; and 16 TAC §31.3, relating to Petition for the Adoption of a Rule. TABC also proposes to repeal 16 TAC §31.5, relating to Public Information Act Requests; 16 TAC §31.6, relating to Establishment of Advisory Committees; 16 TAC §31.7, relating to Internal Audit Advisory Committee; 16 TAC §31.8, relating to Advisory Committee on Major Information Technology Projects; and 16 TAC §31.9, relating to Public Safety Advisory Committee. Consistent with Texas Government Code §465.0052, the Texas Regulatory Efficiency Office (TREO) reviewed TABC's rules and provided recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules. See Regulatory Efficiency Review of TABC (available at https://efficiency.texas.gov/treo-files/TABC.pdf). The amendments and repeals proposed now are based on TREO's recommendations.

The proposed amendments to §31.2(b) better align the rule with Texas Government Code §2171.1045 and clarify when agency vehicles may be assigned to agency staff or checked out from the motor pool. And the proposed amendments to §31.3(a) simply reduce word count by cross referencing the rule petitioner eligibility requirements in Texas Government Code §2001.021(d) rather than stating those requirements in the rule text.

The proposed repeals of §§31.5 - 31.9 simply eliminate unnecessary rules. Rule 31.5(a) adopts by reference the Office of the Attorney General's schedule of charges for copies of public information, but that schedule is the default standard, thus it is not necessary to adopt it by rule. And §31.5(b) designates the general counsel as the agency's public information coordinator, but that designation does not have to be done by rule. Rule 31.6 provides the general framework and requirements for agency advisory committees, while §§31.7 - 31.9 establish three specific advisory committees. These three committees have technically expired by operation of law pursuant to Texas Government Code §2110.008(b), and the agency does not foresee the need for advisory committees in the near future, thus these rules are unnecessary. If the agency determines that establishing advisory committees are advisable in the future, it may adopt new rules doing so.

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 repeals are in effect, there will be no fiscal impact on state or local governments because of enforcing or administering the proposal. Mrs. Maceyra made this determination because the proposed amendments and repeals do not add to or decrease state revenues or expenditures, and because local governments are not involved in enforcing or complying with the amended or repealed 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 repeals are in effect, Mrs. Maceyra expects there to be public benefits of removing unnecessary rules from the Administrative Code, bringing the amended rules in line with statute, and providing further clarity on those rules. Mrs. Maceyra does not expect the proposed amendments and repeals will impose economic costs on the regulated industry. In its Regulatory Efficiency Review, TREO identified significant positive economic impacts associated with its recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules, but that analysis was based on all identified rule changes, not just those proposed here.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS. TABC has determined that the proposed amendments and repeals 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 repeals 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 positively affect the Texas economy, as identified by TREO.

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 repeals from any person interested in the proposal. Additionally, TABC requests information related to the cost, benefit, or effect of the proposal, including any applicable data, research, or analysis, from any person required to comply with the proposal 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, 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 October 29, 2026. 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.

16 TAC §31.2, §31.3

STATUTORY AUTHORITY. TABC proposes the amendments pursuant to TABC's rulemaking authority under Alcoholic Beverage Code §5.31 and Government Code §2171.1045. Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Section 2171.1045 requires each state agency to adopt rules "relating to the assignment and use of the agency's vehicles."

CROSS-REFERENCE TO STATUTE. The proposed amendments implement Government Code §§2001.021 and 2171.1045.

§31.2. State Owned Motor Vehicles.

(a) (No change.)

(b) Assignment of Vehicles.

(1) Except as provided in paragraphs (2) and (3) of this subsection, commission vehicles are assigned to the agency's motor pool and are available for checkout by authorized agency staff whose essential duties and functions require regular or periodic travel by vehicle. [~~This subsection implements §2171.1045, Government Code, relating to the restrictions on assignment of state vehicles.~~]

(2) Vehicles may be [~~are~~] assigned to commission executive staff whose essential agency duties and functions require them to have vehicles available on a regular or frequent basis to provide state-wide oversight, management and supervision of agency staff. A vehicle may be assigned under this paragraph only after the executive director makes a written documented finding that the assignment is critical to the needs and mission of the commission.

[(3) Pool vehicles are maintained at headquarters to reduce the cost to the state for travel required by qualified agency staff whose essential duties and functions require regular or periodic travel by vehicle.]

(3) [~~(4)~~] Vehicles are assigned to field operation employees whose essential agency duties and functions require daily and extensive use of vehicles and the cost to the state of providing a state-owned vehicle is less than the cost of reimbursing employees for the use of personal vehicles.

§31.3. Petition for the Adoption of a Rule.

(a) Purpose. This section implements Government Code §2001.021 and provides procedures for any interested person (petitioner) to request the Alcoholic Beverage Commission (commission) to adopt a rule. The petitioner must meet the eligibility requirements of Government Code §2001.021(d). [~~The petitioner must be:~~]

~~[(1) a resident of this state;]~~

~~[(2) a business entity located in this state;]~~

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

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

(b) - (f) (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 24, 2026.

TRD-202604129

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 8, 2026

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

16 TAC §§31.5 - 31.9

STATUTORY AUTHORITY. TABC proposes the repeals pursuant to TABC's rulemaking authority under Alcoholic Beverage Code §§5.21 and 5.31. Section 5.21 provides TABC rulemaking authority pertaining to advisory committees. Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code.

CROSS-REFERENCE TO STATUTE. The proposed repeals implement Alcoholic Beverage Code §5.21 and Government Code §2110.008.

§31.5. Public Information Act Requests.

§31.6. Establishment of Advisory Committees.

§31.7. Internal Audit Advisory Committee.

§31.8. Advisory Committee on Major Information Technology Projects.

§31.9. Public Safety Advisory Committee.

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 24, 2026.

TRD-202604130

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 8, 2026

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

CHAPTER 33. LICENSING

The Texas Alcoholic Beverage Commission (TABC) proposes to amend 16 TAC §33.5, relating to Food and Beverage Certificate; 16 TAC §33.40, relating to General Provisions; 16 TAC §33.41, relating to Conduct Surety Bonds; and 16 TAC §33.42, relating to Performance Bonds. Consistent with Texas Government Code §465.0052, the Texas Regulatory Efficiency Office (TREO) reviewed TABC's rules and provided recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules. See Regulatory Efficiency Review of TABC (available at https://efficiency.texas.gov/treo-files/TABC.pdf). TABC also identified potential rule changes through an internal review. The proposed amendments are based on TREO's recommendations and TABC's rule review.

The proposed amendments to §33.5(f)(3), (k)(3), and (l) remove the complimentary drink valuation tracking requirements because they were overly burdensome on TABC's licensees and permittees and are not required by the governing statutes. TABC recognizes that tracking complimentary drinks is required by the Texas Comptroller of Public Accounts (CPA) for certain tax purposes. These proposed amendments do not alter any requirements imposed by the CPA that may be applicable to TABC license and permit holders. However, the Alcoholic Beverage Code provisions setting forth Food and Beverage Certificate eligibility do not contain any requirements pertaining to complimentary drinks. See Tex. Alco. Bev. Code §§25.13(a-1)(2), 28.18(a-1)(2), 32.23(a-1)(2), 69.16(a-1)(2). Those provisions only reference "receipts from the sale of alcoholic beverages" in comparison to the "total receipts from the location." Id. (emphasis added).

The proposed amendment to §33.5(k)(4) reduces the relevant Food and Beverage Certificate holder records retention period from four years to two years to better align with TABC's license/permit renewal cycle and to reduce the regulatory burden on those certificate holders. The proposed amendment to §33.40(d) removes the requirement that all relevant bonds be payable in Travis County. Alcoholic Beverage Code §204.02(a) still mandates that excise tax bonds of permittees be payable in Travis County, but that statutory requirement does not extend to other bond types. The agency no longer believes it is necessary to extend that same requirement by rule because it serves as an unnecessary regulatory burden. The proposed amendment to §33.40(i) removes the requirement for participating banks and credit unions to have a physical presence in the state and replaces it with requirements that such a bank or credit union simply be authorized to transact business in Texas and be insured by either the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). These proposed amendments reduce barriers to surety companies, banks, and credit unions providing bonds under the rule. The proposed amendments to §§33.41(e) and 33.42(d) correct internal rule subdivision references and codify the agency's new policy of not seeking conduct surety bond and performance bond forfeitures based on written warnings issued under 16 TAC §34.1. As further explained in a simultaneous rulemaking, the agency has proposed to change its approach to written warnings, treating them more as an informal deterrent than a formal violation notice.

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 proposal. 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 reducing regulatory burdens on licensees and permittees, and increasing the number of surety companies, banks, and credit unions eligible to provide bonds, certificates of deposit, and letters of credit under the rules. Mrs. Maceyra does not expect the proposed amendments will impose economic costs on the regulated industry. In its Regulatory Efficiency Review, TREO identified significant positive economic impacts associated with its recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules, but that analysis was based on all identified rule changes, not just those proposed here.

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 positively affect the Texas economy, as identified by TREO.

REQUEST FOR PUBLIC COMMENT. TABC requests comments on the proposed amendments from any person interested in the proposal. Additionally, TABC requests information related to the cost, benefit, or effect of the proposal, including any applicable data, research, or analysis, from any person required to comply with the proposal 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, 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 proposal at 10:00 a.m. on October 29, 2026. 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 A. APPLICATIONS

16 TAC §33.5

STATUTORY AUTHORITY. TABC proposes the amendments pursuant to TABC's rulemaking authority under Alcoholic Beverage Code §5.31. Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code.

CROSS-REFERENCE TO STATUTE. The proposed amendments implement Alcoholic Beverage Code §§5.31, 25.13, 28.18, 32.23, and 69.16.

§33.5. Food and Beverage Certificate.

(a) - (e) (No change.)

(f) An applicant for an original food and beverage certificate shall furnish the following, as well as any other information requested by the commission to ensure compliance:

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

(3) if qualifying under subsection (c)(3)(A) of this section, sales data [~~(including complimentary drinks, as recorded pursuant to subsection (k)(3) of this section)~~] or, if not available, a projection of sales. The sales data or projection of sales should include sufficient breakdown of revenues of food, alcoholic beverages, and all other sales categories at the location (e.g., tickets, merchandise, retail goods);

(4) - (5) (No change.)

(g) - (j) (No change.)

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

(1) (No change.)

(2) purchase invoices must be maintained to reflect the total purchases of alcoholic beverages, food and all other purchase categories at the location; and

~~[(3) complimentary alcoholic beverages must be recorded and included in the total alcoholic beverage sales as if they were sold and clearly marked as being complimentary; and]~~

(3) [~~(4)~~] all records must be maintained for two [~~four~~] years and made available to authorized representatives of the commission upon request.

[(l) In considering alcoholic beverage sales, the dollar value of complimentary drinks shall be added to total sales or service of alcoholic beverages in determining the percentage of alcoholic beverage sales or service from the licensed premises.]

(l) [~~(m)~~] In determining the permanent food service facilities requirement for businesses qualifying under subsection (c)(3)(A) of this section, the gross receipts of all business entities sharing the location will be considered. For audit purposes, it shall be the responsibility of the food and beverage certificate holder to provide financial and accounting records related to food, alcohol, and other major sales categories of all business entities sharing the location. For audit purposes, if such information that is provided is deemed insufficient to determine if a license or permit holder qualifies for issuance of a food and beverage certificate at the location, the computation and determination of the percentage of alcohol sales or service fees to total gross receipts at the licensed location may be based upon any available records of information.

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 24, 2026.

TRD-202604131

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 8, 2026

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

SUBCHAPTER C. BONDS

16 TAC §§33.40 - 33.42

STATUTORY AUTHORITY. TABC proposes the amendments pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §§5.31, 11.11, 61.13. Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Sections 11.11(c) and 61.13(c) authorize TABC to adopt rules relating to conduct surety bonds, including the form of a bond and qualifications for sureties.

CROSS-REFERENCE TO STATUTE. The proposed amendments implement Alcoholic Beverage Code §§5.31, 11.11, 11.61, 61.13, 61.71, 62.14, 63.03, 204.01, and 204.02.

§33.40. General Provisions.

(a) - (c) (No change.)

(d) All bonds shall be payable to the State of Texas [~~in Travis County~~].

(e) - (h) (No change.)

(i) Qualifications of Surety Company.

(1) (No change.)

(2) In addition to the requirements of Alcoholic Beverage Code §§11.11 and 61.13, a bank or credit union must be insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) and be authorized to transact business in this state [~~have a physical facility in this state to accept cash deposits, make cash advances to customers and carry out day-to-day operations within this state~~].

(j) - (q) (No change.)

§33.41. Conduct Surety Bonds.

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

(e) Forfeiture of a Conduct Surety Bond.

(1) - (5) (No change.)

(6) Counting Violations for Conduct Surety Bond Forfeiture Purposes.

(A) Except as provided by subparagraph [~~subsection~~] (B) of this paragraph [~~section~~], the commission may seek forfeiture of a conduct surety bond upon the third violation during the effective period of the bond, excluding [~~including~~] warnings, of any statute or rule under the commission's jurisdiction.

(B) - (C) (No change.)

(7) (No change.)

§33.42. Performance Bonds.

(a) - (c) (No change.)

(d) Forfeiture of Performance Bonds.

(1) Except as provided by paragraph (2) of this subsection, the commission may seek forfeiture of a performance bond upon a violation, excluding warnings, of any statute or rule under the commission's jurisdiction.

(2) (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 24, 2026.

TRD-202604132

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 8, 2026

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

CHAPTER 34. SCHEDULE OF SANCTIONS AND PENALTIES

16 TAC §§34.1 - 34.4, 34.10, 34.20

The Texas Alcoholic Beverage Commission (TABC) proposes to amend 16 TAC §34.1, relating to General Provisions; 16 TAC §34.2, relating to Schedule of Sanctions and Penalties for Health, Safety and Welfare Violations; 16 TAC §34.3, relating to Offenses Against the General Welfare; Place or Manner Violations; 16 TAC §34.4, relating to Suspensions; 16 TAC §34.10, relating to Sanctions for Regulatory Violations; and 16 TAC §34.20, relating to Attribution of Actions of Employee to License or Permit Holder. Consistent with Texas Government Code §465.0052, the Texas Regulatory Efficiency Office (TREO) reviewed TABC's rules and provided recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules. See Regulatory Efficiency Review of TABC (available at https://efficiency.texas.gov/treo-files/TABC.pdf). TABC also identified potential rule changes through an internal review of its rules. The proposed amendments are based on TREO's recommendations and TABC's review.

The proposed amendments to §34.1(b), (d), and (g) implement a new approach to written warnings issued by the agency. Currently written warnings may be issued to licensees and permittees by TABC staff for a violation of the Alcoholic Beverage Code or agency rules, and while the warning does not carry a sanction itself, it may be used as an aggravating circumstance when determining appropriate sanctions for future violations. Because of this, TABC has offered the recipient of a written warning the ability to request an administrative hearing to challenge the warning. The requirement to offer a hearing has proved to be burdensome on the agency as staff must dedicate time and resources whenever an administrative hearing is requested. These resources can be better spent on more serious violations. Furthermore, the nature of a warning is that of a deterrent, and TABC believes it makes more sense not to formalize such a deterrent. Therefore, the proposed amendments would provide that written warnings may not be used as an aggravating factor and do not entitle the recipient to a hearing, but they may be used to establish that the recipient was aware of the violation for which the warning was issued. The proposed amendments would also allow the agency to rescind any warning that was issued in error without the need for a formal process.

The proposed amendment adding new §34.1(j) provides a non-exclusive list of factors the agency may consider, along with the circumstances identified in Alcoholic Beverage Code §11.64(c), when determining the appropriate sanction to impose for a violation. This amendment codifies agency practice and provides clarity to licensees and permittees. Proposed new §34.1(k) provides that a licensee or permittee, as the respondent in a contested case, bears the burden of proof in establishing the existence of any relevant mitigating factors. The burden to establish mitigating factors is akin to the burden to establish any defenses to an alleged violation, which has traditionally been placed on the respondent as the beneficiary of such a finding if proved. See, e.g., 1 TAC §155.427 (State Office of Admin. Hearings, Burden of Proof). The proposed amendment simply codifies that approach in TABC's rules.

The proposed amendment to §34.2(e) updates the public safety violations chart by grouping similar violation categories together to improve clarity for licensees and permittees. The proposed amendment also moves two violation categories ("Place/Manner - Over Serving" and "Place/Manner- Assaultive Offenses) from the regulatory violations chart in 16 TAC §34.10(g) to the public safety violations chart because they involve public safety concerns. The proposal also adds a new violation for providing false statements under Alcoholic Beverage Code §101.69, a violation of which will result in cancellation of the license or permit. Knowingly providing false statements under §101.69 is a felony and a more serious violation than generally providing incorrect or misleading information under Alcoholic Beverage Code §§11.46(a)(4), 11.61(b)(4), 61.43(4), 61.71(a)(4) and 61.74(a)(11), hence the more severe sanction.

The proposed amendment to §34.3 adds new subsection (e), which provides definitions of "reasonable care" and "reasonable steps" as those terms are used in §34.3(b)(3). Both definitions are based on the standard used to determine reasonable or due care under the negligence standard. See Blacks's Law Dictionary 204 (7th ed. 1999). The definitions are intended to provide clarity to licensees and permittees.

The proposed amendment to §34.4(a) codifies the current agency practice of not allowing a licensee or permittee to pay a fine in lieu of serving an emergency suspension issued under Alcoholic Beverage Code §11.614. Emergency suspensions are only issued when there is a continuing threat to the public welfare, thus it would defeat the purpose of that statute if TABC allowed a licensee or permittee to avoid suspension by paying a fine as is allowed for other violations under Alcoholic Beverage Code §11.64. Current §34.4(b) lists those offenses and violations for which licensees and permittees will not be given the option to pay a fine in lieu thereof. But the list simply repeats the offenses and violations already listed in §11.64. The proposed amendment removes the list and simply cites to §11.64, thus removing unnecessary text.

The proposed amendment to §34.10(g) reduces the agency's time period to review its published Penalty Policy from seven to four years to reflect the rapid evolution of the alcoholic beverage industry. The proposal also updates the regulatory violations chart by correcting internal citations and consolidating violation categories into broader groupings to improve clarity.

Finally, the proposed amendment to §34.20(a) extends the time period for license or permit holders to provide a compliance affidavit (consistent with Alcoholic Beverage Code §106.14(a)) to the agency from 10 to 30 days to help businesses avoid liability where appropriate. The proposed amendments to §34.20(c) and (e) extend the time frame during which multiple violations (three or more) will result in a rebuttable presumption that the license or permit holder indirectly encouraged a violation under §106.14(a)(3). The proposal extends that time frame from a 12-month period to a 24-month period, which supports public safety by holding license and permit holders more accountable for violations that repeatedly occur at their premises. The proposed amendment to §34.20(f)(5) expressly authorizes license and permit holders to retain certain records electronically, which codifies current agency practice and provides clarity to the industry. The proposal also creates new §34.20(k), which requires the agency to create a model written policy that license and permit holders can adopt, which in turn will create a rebuttable presumption of compliance with §34.20(f)(3). This will ease the burden on licensees and permittees by not requiring them to draft, or pay someone to draft, a unique policy.

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 proposal. 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 reducing regulatory burdens on licensees and permittees, removing unnecessary rule text, simplifying the issuance of written warnings, and generally bringing more clarity to the rules. Mrs. Maceyra does not expect the proposed amendments will impose economic costs on the regulated industry. In its Regulatory Efficiency Review, TREO identified significant positive economic impacts associated with its recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules, but that analysis was based on all identified rule changes, not just those proposed here.

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 positively affect the Texas economy, as identified by TREO.

STATUTORY AUTHORITY. TABC proposes the amendments pursuant to TABC's rulemaking authority under Alcoholic Beverage Code §§5.31 and 5.362. Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Section 5.362(a) directs TABC to adopt a schedule of sanctions that may be imposed for violations of the Alcoholic Beverage Code or TABC's rules.

CROSS-REFERENCE TO STATUTE. The proposed amendments implement Alcoholic Beverage Code §§5.31, 5.362, 11.46, 11.61, 11.614, 11.64, 11.641, 61.42, 61.421, 61.43, 61.44, 61.50, 61.71, 61.712, 61.713, 61.73, 61.74, 61.75, 61.76, 61.761, 71.08, and 106.14.

§34.1. General Provisions.

(a) (No change.)

(b) Definitions. When used in this chapter, the following words and terms have the following meanings unless the context clearly indicates otherwise:

(1) - (5) (No change.)

(6) Written Warning--An administrative notice issued by a representative of the commission to a licensee or permittee documenting a violation of the Code or commission rules.

(d) Written warnings. [~~A written warning is an administrative notice issued by a representative of the commission to the license or permit holder documenting a violation of the Code or commission rules and:~~]

(1) A written warning may be issued by authorized commission personnel for any violation if the person issuing the written warning determines it to be an effective deterrent from further violations of the Code or commission rules. A written warning will not be issued to a licensee or permittee for a violation if the permittee or licensee has committed the same or substantially similar violation within the preceding 24 months.[;]

(2) A written warning may not be used as an aggravating circumstance or factor for purposes of determining the appropriate sanction but may be used to establish that the licensee or permittee was aware of the violation for which the warning was issued. [~~under §34.2 or §34.10; of this title and~~]

(3) A written warning may be rescinded if it is subsequently shown to have been issued in error. [~~is subject to the rights and procedures of a contested case under the Administrative Procedure Act.~~]

(e) - (f) (No change.)

(g) A subsequent violation of the same Code provision or rule will result in a higher sanction if:

(1) [~~the person has been given written notice of the prior violation and~~] the subsequent violation is:

(A) a health, safety, and welfare violation and occurs within 36 months of the prior violation; or

(B) a regulatory violation with a base penalty of $1,000 and occurs within 24 months of the prior violation; or

(2) the subsequent violation involves covert investigative activities.

(h) - (i) (No change.)

(j) When determining the appropriate sanction to impose under this chapter for a violation of the Code or commission rules, the agency may consider the nature and severity of the violation, the licensee's or permittee's compliance history, and any other relevant aggravating or mitigating factors, including:

(1) whether the licensee or permittee maintained and enforced adequate written policies designed to prevent offenses on the premises;

(2) whether the licensee or permittee provided regular and adequate training to employees and agents on how to identify and respond to potential violations;

(3) whether the licensee or permittee employed adequate security measures at the licensed premises, including staffing, lighting, and video surveillance technology appropriate to the size, location, and operational profile of the premises;

(4) whether the licensee or permittee has cooperated with the investigation into the violation(s) and has a history of cooperating with the commission and other law enforcement agencies; and

(5) whether the licensee or permittee took prompt action to correct or disrupt a potential violation upon learning of it.

(k) The respondent has the burden of proving by a preponderance of the evidence the existence of any mitigating factors under subsection (j) of this section. The factors listed in subsection (j)(1) - (5) of this section are not exclusive, and the existence of or compliance with any particular factor(s) does not entitle the licensee or permittee to a reduced sanction.

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

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

(e) Nothing in this rule shall be construed to limit the commission's authority to suspend or cancel a license or permit under §§11.38, 11.61, 32.17, 61.71, 201.075, or any other provision of the Code authorizing suspension or cancellation of a license or permit.

Figure: 16 TAC §34.2(e) (.pdf)

[~~Figure: 16 TAC §34.2(e)~~]

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

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

(e) For purposes of subsection (b)(3) of this section:

(1) "reasonable care" means the degree of care that a prudent and competent licensee or permittee would exercise under similar circumstances; and

(2) "reasonable steps" are actions that a prudent and competent licensee or permittee would have taken under similar circumstances to prevent the offense.

§34.4. Suspensions.

(a) This section implements Alcoholic Beverage Code (Code) §11.64(a), which requires the commission to adopt rules addressing when a suspension may be imposed without the opportunity to pay a civil penalty. This section does not apply to, and a licensee or permittee does not have the option to pay a civil fine in lieu of, a suspension imposed by emergency order under §11.614 of the Code.

(b) The executive director or the executive director's designee may deny a licensee or permittee the option of paying a civil fine in lieu of a suspension of the license or permit if the licensee or permittee has violated one or more of the provisions, or committed one or more of the offenses, identified in §11.64 of the Code. [~~one or more of the following provisions of the Code:~~]

~~[(1) Section 11.61(b)(14): sale to an intoxicated person by a permittee;]~~

~~[(2) Section 22.12: breach of the peace on the premises of a package store;]~~

~~[(3) Section 28.11: breach of the peace on the premises of a mixed beverage permittee;]~~

~~[(4) Section 32.17(a)(2): refuse to allow an authorized agent or representative to come onto the premises;]~~

~~[(5) Section 32.17(a)(3): refuse to furnish requested information to the commission or its agents or representatives;]~~

~~[(6) Section 32.17(a)(7): consumption or service of alcohol on the premises during prohibited hours;]~~

~~[(7) Section 61.71(a)(5): sale to a minor by a licensee;]~~

~~[(8) Section 61.71(a)(6): sale to an intoxicated person by a licensee;]~~

~~[(9) Section 61.74(a)(14): sale to a minor by a licensee;]~~

~~[(10) Section 69.13: breach of the peace on the premises of an on-premise retail malt beverage dealer;]~~

~~[(11) Section 71.09: breach of the peace on the premises of an off-premise retail malt beverage dealer;]~~

~~[(12) Section 101.04: refuse to allow inspection;]~~

~~[(13) Section 104.01(a)(4): solicitation of drinks;]~~

~~[(14) Section 101.63: sale to an intoxicated person;]~~

~~[(15) Section 106.03: sale to a minor;]~~

~~[(16) Section 106.06: purchase of alcohol for a minor;]~~

~~[(17) Section 106.15: engage in prohibited activity related to dancing by a person under 18;]~~

~~[(18) Chapter 105: sale or offer of sale of an alcoholic beverage during prohibited hours, or consumption or permitting consumption of an alcoholic beverage during prohibited hours;]~~

~~[(19) any offense relating to gambling, prostitution or trafficking of persons; or]~~

~~[(20) any offense relating to controlled substances or drugs.]~~

§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 four (4) [~~seven (7)~~] years.

Figure 16 TAC §34.10(g) (.pdf)

[~~Figure 16 TAC §34.10(g)~~]

(h) (No change.)

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

(a) A license or permit holder who claims that the actions of an employee are not attributable to the license or permit holder under Code §106.14(a) must provide to the commission, not later than 30 [10] days after receipt of an administrative notice of violation, an affidavit indicating that the license or permit holder was in compliance with the requirements of Code §106.14(a) at the time of the violation for which the administrative notice was issued. At a hearing in which the license or permit holder claims the benefits of Code §106.14(a), the license or permit holder may be required to present additional evidence to support such claim.

(b) (No change.)

(c) Proof by the commission that an employee performed an action described in paragraph (1) or (2) of this subsection on three or more occasions within a 24-month [~~12-month~~] period shall create a rebuttable presumption that the license or permit holder has indirectly encouraged a violation of the law within the meaning of Code §106.14(a)(3). The rebuttable presumption is created regardless of whether the employee performing the action described in paragraph (1) or (2) of this subsection on a second or subsequent occasion is the same person.

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

(d) (No change.)

(e) For purposes of subsection (d) of this section, all incidents offered to satisfy the condition precedent set forth in subsection (c) of this section shall be for the same type of offense and shall have occurred within a 24-month [~~12-month~~] period as calculated from the dates the incidents occurred.

(f) There is a rebuttable presumption that a license or permit holder has indirectly encouraged a violation of the law within the meaning of Code §106.14(a)(3) if the commission presents sufficient proof that a license or permit holder fails to meet any of the standards set forth in paragraphs (1) - (5) of this subsection.

(1) - (4) (No change.)

(5) The license or permit holder maintains records for at least one year after the date employment was terminated that show that each employee read and understood the license or permit holder's current policies and procedures described in paragraph (3) of this subsection. Records may be maintained in electronic format, including digital signatures and cloud-based storage systems, provided such systems maintain adequate data integrity, including audit trails, tamper-resistance, and accessibility for commission inspection.

(g) - (j) (No change.)

(k) The commission shall publish and maintain a model written policy template that license or permit holders may adopt to satisfy the requirements of subsection (f)(3) of this section. Adoption of the commission's model creates a rebuttable presumption of compliance with that paragraph.

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 24, 2026.

TRD-202604133

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 8, 2026

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

CHAPTER 35. ENFORCEMENT

16 TAC §35.3, §35.7

The Texas Alcoholic Beverage Commission (TABC) proposes to amend 16 TAC §35.3, relating to Risked-Based Inspection of Licensed and Permitted Premises; and 16 TAC §35.7, relating to Consumption of Consumable Hemp Products. Consistent with Texas Government Code §465.0052, the Texas Regulatory Efficiency Office (TREO) reviewed TABC's rules and provided recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules. See Regulatory Efficiency Review of TABC (available at https://efficiency.texas.gov/treo-files/TABC.pdf). TABC also identified potential rule changes through an internal review of its rules. The proposed amendments are based on TREO's recommendations and TABC's review.

Current §35.3(c) defines when a licensed or permitted premises is considered a priority location for purposes of determining when inspections of the premises will occur under the rule. Under current §35.3(c)(3)-(4), certain premises are a priority location if they have been licensed for less than two years and have not been the target of any underage compliance operations or other public safety operations. The proposed amendments to §35.3(c)(3)-(4) would expand the scope of those provisions by classifying those premises as priority locations if they have not been the target of any investigative activity rather than just underage compliance or other public safety operations. This change will allow the agency to better focus its attention and resources on higher risk locations.

The proposed amendment to §35.7(b) adds definitions of "reasonable care" and "reasonable steps" as those terms are used in the rule. The definitions mirror the definitions proposed for 16 TAC §34.3 in a simultaneous rulemaking and are based on the standard used to determine reasonable or due care under the negligence standard. See Blacks's Law Dictionary 204 (7th ed. 1999). The definitions are intended to provide clarity to licensees and permittees.

FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATEMENT. Nicole Langley, Interim Chief of Enforcement, 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 proposal. Chief Langley 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. Chief Langley 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, Chief Langley expects that enforcing or administering the amended rules will have the public benefit of better focusing the agency's attention and resources on higher risk locations and bringing more clarity to the rules. Chief Langley does not expect the proposed amendments will impose economic costs on the regulated industry. In its Regulatory Efficiency Review, TREO identified significant positive economic impacts associated with its recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules, but that analysis was based on all identified rule changes, not just those proposed here.

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 positively affect the Texas economy, as identified by TREO.

STATUTORY AUTHORITY. TABC proposes the amendments pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §§5.31 and 5.361. Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Section 5.361(a-1) provides that TABC shall, by rule, develop a risk-based plan for inspecting licensees and permittees.

CROSS-REFERENCE TO STATUTE. The proposed amendments implement Alcoholic Beverage Code §§5.31, 5.361, 11.46, 11.61, 61.42, and 61.71.

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

(a) - (b) (No change.)

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

(3) the premises has been licensed for less than two years for off-premises consumption, and has not been the target of an investigative activity [~~any underage compliance operation or other public safety operation~~]; or

(4) the premises has been licensed for less than two years for on-premises consumption, holds a late hours certificate, and has not been the target of an investigative activity [~~underage compliance operation or other public safety operation~~].

(d) - (e) (No change.)

§35.7. Consumption of Consumable Hemp Products.

(a) (No change.)

(b) A permittee or licensee may not authorize or allow any person to consume a consumable hemp product on a premises covered by a wine and malt beverage retailer's off-premise permit, retail dealer's off-premise license, package store permit, or wine-only package store permit. A permittee or licensee violates this subsection if it knows or, in the exercise of reasonable care, should know of the consumption of consumable hemp products or the likelihood of its occurrence and fails to take reasonable steps to prevent it. For purposes of this subsection:

(1) "reasonable care" means the degree of care that a prudent and competent licensee or permittee would exercise under similar circumstances; and

(2) "reasonable steps" are actions that a prudent and competent licensee or permittee would have taken under similar circumstances to prevent the consumption.

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 24, 2026.

TRD-202604134

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 8, 2026

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

CHAPTER 37. LEGAL

SUBCHAPTER A. RULES OF PRACTICE

16 TAC §37.5

The Texas Alcoholic Beverage Commission (TABC) proposes to repeal 16 TAC §37.5, relating to Determining Population. Consistent with Texas Government Code §465.0052, the Texas Regulatory Efficiency Office (TREO) reviewed TABC's rules and provided recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules. See Regulatory Efficiency Review of TABC (available at https://efficiency.texas.gov/treo-files/TABC.pdf). The repeal proposed now is based on TREO's recommendations.

Rule 37.5 provides that "[f]or purposes of any provision of the Alcoholic Beverage Code or the commission's rules that refer to population, it shall be determined by the most recent federal decennial census." TABC has determined that this rule is unnecessary because the Code Construction Act (Texas Government Code §311.005(3)) already defines "population" by reference to the federal decennial census, and Government Code §311.002 provides that the Code Construction Act applies to agency rules. Additionally, some Alcoholic Beverage Code provisions provide alternatives by specifically accounting for a city's or county's population according to a census other than the most recent federal census, which may be viewed as conflicting with the current rule. See, e.g., Tex. Alco. Bev. Code §105.05(c). Therefore, TABC believes §37.5 should be repealed.

FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATEMENT. Andrea Maceyra, Chief of Regulatory Affairs, has determined that during each year of the first five years after the repeal is in effect, there will be no fiscal impact on state or local governments because of enforcing or administering the proposal. Mrs. Maceyra made this determination because the proposed repeal does not add to or decrease state revenues or expenditures, and because local governments are not involved in enforcing or complying with it. 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 after the repeal is in effect, Mrs. Maceyra expects there to be the public benefit of removing an unnecessary rule from the Administrative Code. Mrs. Maceyra does not expect the proposed repeal will impose economic costs on the regulated industry. In its Regulatory Efficiency Review, TREO identified significant positive economic impacts associated with its recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules, but that analysis was based on all identified rule changes, not just that proposed here.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS. TABC has determined that the proposed repeal 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 after the proposed repeal 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 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 positively affect the Texas economy, as identified by TREO.

REQUEST FOR PUBLIC COMMENT. TABC requests comments on the proposed repeal from any person interested in the repeal. Additionally, TABC requests information related to the cost, benefit, or effect of the repeal, including any applicable data, research, or analysis, from any person required to comply with the proposal 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, 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 repeal at 10:00 a.m. on October 29, 2026. 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 repeal pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §5.31. Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code.

CROSS-REFERENCE TO STATUTE. The proposed repeal implements Alcoholic Beverage Code §5.31.

§37.5. Determining Population.

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 24, 2026.

TRD-202604135

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 8, 2026

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

CHAPTER 39. PORT OF ENTRY

The Texas Alcoholic Beverage Commission (TABC) proposes to amend 16 TAC §39.1, relating to Personal Importation; and repeal 16 TAC §39.2, relating to Calculation of Taxes Due; and 16 TAC §39.4, relating to Table of Taxes Due for Liquor. Consistent with Texas Government Code §465.0052, the Texas Regulatory Efficiency Office (TREO) reviewed TABC's rules and provided recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules. See Regulatory Efficiency Review of TABC (available at https://efficiency.texas.gov/treo-files/TABC.pdf). The amendments and repeals proposed now are based on TREO's recommendations.

The proposed amendments to §39.1 would repeal current subsections (b) and (d) and reorganize the rule's remaining subsections accordingly. Current subsection (b) simply provides that alcoholic beverage containers imported into the state for personal consumption are subject to applicable taxes and fees, and these fees will be included in the posted tax rates. Subsection (b) effectively restates Alcoholic Beverage Code §107.07(a) and is thus redundant. Current subsection (d) simply provides that nothing in the rule chapter should be construed to alter personal importation limits set in law. This subsection is unnecessary because a rule generally cannot alter requirements set in statute. Therefore, TABC believes it is appropriate to remove these subsections from the rule.

The proposed repeals of §39.2 and §39.4 simply eliminate unnecessary rules. Rule 39.2(a) lists tax rates for various types of alcoholic beverages that are imported into the state, but those tax rates are already set and listed in Alcoholic Beverage Code §§201.03, 201.04, and 203.01. Rule 39.2(b) provides that the tax due on alcohol in metric containers will be determined by converting the metric amount into gallons and then rounding up to the nearest quarter of a dollar. But the conversion requirement is already established in statute (Alcoholic Beverage Code §201.17) and the agency is already authorized to round up to the nearest quarter of a dollar under Alcoholic Beverage Code §107.07(g). And §39.4 simply provides that TABC will display a table of the taxes due on alcoholic beverages at each port of entry and the agency's website. TABC will continue to post this information, but it is not necessary to mandate this action in rule.

FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATEMENT. Nicole Langley, Interim Chief of Enforcement, has determined that during each year of the first five years the proposed amendments and repeals are in effect, there will be no fiscal impact on state or local governments because of enforcing or administering the proposal. Chief Langley made this determination because the proposed amendments and repeals do not add to or decrease state revenues or expenditures, and because local governments are not involved in enforcing or complying with the amended or repealed rules. Chief Langley 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 repeals are in effect, Chief Langley expects there to be the public benefit of removing unnecessary rules from the Administrative Code. Chief Langley does not expect the proposed amendments and repeals will impose economic costs on the regulated industry. In its Regulatory Efficiency Review, TREO identified significant positive economic impacts associated with its recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules, but that analysis was based on all identified rule changes, not just those proposed here.

GOVERNMENT GROWTH IMPACT STATEMENT. TABC has determined that for each year of the first five years that the proposed amendments and repeals 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 positively affect the Texas economy, as identified by TREO.

16 TAC §39.1

STATUTORY AUTHORITY. TABC proposes the amendments pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §5.31. Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code.

CROSS-REFERENCE TO STATUTE. The proposed amendments implement Alcoholic Beverage Code §§107.07, 201.03, 201.04, 201.17, and 203.01.

§39.1. Personal Importation.

(a) (No change.)

[(b) All alcoholic beverage containers imported into Texas for personal consumption are subject to the applicable state tax and administrative fees. These administrative fees shall be included in the posted tax rates.]

(b) [~~(c)~~] Payment of the fees and taxes must be documented by a tax stamp. For purposes of this rule, "tax stamp" means a written acknowledgement, which may be an electronic notification, documenting that the State of Texas has received payment of fees and taxes.

~~[(d) Nothing in this Chapter shall be construed to alter the personal importation limits set in Code §107.07(a).]~~

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 24, 2026.

TRD-202604136

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 8, 2026

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

16 TAC §39.2, §39.4

STATUTORY AUTHORITY. TABC proposes the repeals pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §5.31. Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code.

CROSS-REFERENCE TO STATUTE. The proposed repeals implement Alcoholic Beverage Code §§107.07, 201.03, 201.04, 201.17, and 203.01.

§39.2. Calculation of Taxes Due.

§39.4. Table of Taxes Due for Liquor.

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 24, 2026.

TRD-202604137

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 8, 2026

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

CHAPTER 41. AUDITING

SUBCHAPTER B. RECORDKEEPING & REPORTS

16 TAC §41.12

The Texas Alcoholic Beverage Commission (TABC) proposes to amend 16 TAC §41.12, relating to Compliance Reporting by License and Permit Holders. Earlier this year TABC adopted §41.12(e) to allow the agency to issue written warnings to permittees and licensees that fail to file compliance reports in a timely manner without providing those permittees and licensees the opportunity to request an administrative hearing to challenge the warnings. See 51 TexReg 4014 (June 19, 2026). This was an exception to the general standard in 16 TAC §34.1(d) allowing permittees and licensees to request a hearing to challenge any written warning. Upon further review, the agency no longer believes that written warnings should serve as an aggravating factor in determining appropriate sanctions for future violations, which in turn would negate the need for offering permittees and licensees an opportunity to request an administrative hearing challenging the warning. With that change to §34.1, which is being proposed in a simultaneous rulemaking, there is no longer a need for the exception in §41.12(e) and TABC now proposes to delete that subsection.

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 amendment is in effect, there will be no fiscal impact on state or local governments because of enforcing or administering the amended rule. Mrs. Maceyra made this determination because the proposed amendment does not add to or decrease state revenues or expenditures, and because local governments are not involved in enforcing or complying with it. 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 after the amendment is in effect, Mrs. Maceyra expects there to be the public benefit of removing an unnecessary rule subdivision from the Administrative Code. Mrs. Maceyra does not expect the proposed amendment will impose economic costs on the regulated industry.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS. TABC has determined that the proposed amendment 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 after the proposed amendment 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 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 negatively affect the Texas economy.

REQUEST FOR PUBLIC COMMENT. TABC requests comments on the proposed amendment from any person interested in the repeal. Additionally, TABC requests information related to the cost, benefit, or effect of the repeal, including any applicable data, research, or analysis, from any person required to comply with the proposal 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, 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 repeal at 10:00 a.m. on October 29, 2026. 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 amendment pursuant to TABC's rulemaking authority under Texas Alcoholic Beverage Code §5.31. Section 5.31 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 implements Alcoholic Beverage Code §§5.32 and 5.361.

§41.12. Compliance Reporting by License and Permit Holders.

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

[(e) Notwithstanding §34.1(d)(3) of this title, the commission may issue a written warning as provided in subsection (d) of this section without providing the permittee or licensee an opportunity for an administrative hearing under the Administrative Procedure Act.]

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 24, 2026.

TRD-202604138

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 8, 2026

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

CHAPTER 45. MARKETING PRACTICES

SUBCHAPTER F. ADVERTISING AND PROMOTION

16 TAC §45.121

The Texas Alcoholic Beverage Commission (TABC) proposes to amend 16 TAC §45.121, relating to Advertising Standards Required. Consistent with Texas Government Code §465.0052, the Texas Regulatory Efficiency Office (TREO) reviewed TABC's rules and provided recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules. See Regulatory Efficiency Review of TABC (available at https://efficiency.texas.gov/treo-files/TABC.pdf). The proposed amendments are based on TREO's recommendations.

Rule 45.121 generally prohibits the publication or dissemination of alcoholic beverage advertisements in this state if the advertisement is calculated to induce sales, unless done so in compliance with agency rules. The rule specifies various mediums of communication (radio, newspaper, etc.) that the prohibition applies to. It also references specific persons (newspaper publisher, radio operator, etc.) that the rule does not apply to. By referencing only specific mediums of communication and specific persons excepted from the rule, the agency risks creating unintended loopholes, especially as new methods of communication emerge. Therefore, the proposed amendments replace all references to specific mediums and persons with all-inclusive terms.

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 rule. 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 it. 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 after the proposed amendments are in effect, Mrs. Maceyra expects there to be the public benefit of clarifying the scope of an agency rule that provides a public safety purpose. Mrs. Maceyra does not expect the proposed amendments will impose economic costs on the regulated industry. In its Regulatory Efficiency Review, TREO identified significant positive economic impacts associated with its recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules, but that analysis was based on all identified rule changes, not just those proposed here.

GOVERNMENT GROWTH IMPACT STATEMENT. TABC has determined that for each year of the first five years after 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 positively affect the Texas economy, as identified by TREO.

REQUEST FOR PUBLIC COMMENT. TABC requests comments on the proposed amendments from any person interested in the rule. Additionally, TABC requests information related to the cost, benefit, or effect of the amendments, including any applicable data, research, or analysis, from any person required to comply with the proposal 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, 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 repeal at 10:00 a.m. on October 29, 2026. 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.

CROSS-REFERENCE TO STATUTE. The proposed amendments implement Alcoholic Beverage Code §5.31.

§45.121. Advertising Standards Required.

No person, directly or indirectly, or through an affiliate, shall publish or disseminate or cause to be published or disseminated through any medium or channel of communication [~~by radio broadcast, or in any newspaper, periodical, or other publication, or by any sign or outdoor advertisement, or any other printed or graphic matter, including via the internet~~], any advertisement of alcoholic beverages if such advertisement is in this state, is calculated to induce sales in this state, or is disseminated [~~by mail or e-mail~~] in this state, unless such advertisement is in conformity with this chapter. This chapter does not apply to the publisher or operator of any communication medium [~~of any newspaper, periodical or other publication, or radio broadcaster,~~] unless such publisher or operator [~~radio broadcaster~~] is a 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 24, 2026.

TRD-202604139

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 8, 2026

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

CHAPTER 50. ALCOHOLIC BEVERAGE SELLER SERVER AND DELIVERY DRIVER TRAINING

SUBCHAPTER C. SELLER SERVER SCHOOL CERTIFICATES AND REQUIREMENTS

16 TAC §50.17, §50.20

The Texas Alcoholic Beverage Commission (TABC) proposes to amend 16 TAC §50.17, relating to Application for Primary Internet-Based Seller Server School Certificates; and 16 TAC §50.20, relating to Application for Branch In-House Seller Server Certificate. Consistent with Texas Government Code §465.0052, the Texas Regulatory Efficiency Office (TREO) reviewed TABC's rules and provided recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules. See Regulatory Efficiency Review of TABC (available at https://efficiency.texas.gov/treo-files/TABC.pdf). The proposed amendments are based on TREO's recommendations. All proposed changes to §50.17 and §50.20 are intended to reduce regulatory burdens on applicants for seller server school certificates.

Under current §50.17(b), criminal background checks are performed on a wide variety of individuals associated with internet-based seller server schools, including all owners, officers, and managers. The proposed amendment to §50.17(b) would reduce regulatory burden by narrowing that requirement only to individuals with an ownership interest greater than 25 percent, executive officers, and instructors who interact with students.

Current §50.17(f) requires applicants for an internet-based seller server school certificate to verify that its security measures meet state and federal standards for the transmission and protection of personal identification and financial information. To reduce regulatory burden, the proposed amendment to this subsection would allow applicants to satisfy this requirement by providing TABC with certain standardized third-party security certifications.

Rule 50.17(h) lists certain domain information that must be listed in an application for a primary internet-based training school certificate. The proposed amendment to §50.17(i) reduces regulatory burden by extending the amount of time a school has to update the agency on changes to that domain information from 24 hours to 10 business days.

The proposed amendment to §50.17(j) - (l) would allow a primary internet-based training school certificate to cover all domains and delivery platforms under common ownership with the school and its designated primary domain, rather than requiring a school to obtain a branch certificate for each domain under common ownership, as is currently required. The proposed amendment to §50.17(k) and the repeal of subsection (m) would require the agency to approve a standardized disclosure statement to be provided by schools when students are redirected from the designated primary domain to any other domain under common ownership. Currently, schools must draft individual disclosure statements according to specifications in rule.

The proposed amendment to §50.20(d) will allow an applicant for multiple branch classroom-based in-house seller server school certificates to submit a single master application with each branch clearly identified, as provided on TABC forms, rather than separate applications for each certificate. And the proposed amendment to §50.20(h) will not require branch in-house seller server school certificate applicants to submit new criminal background check authorizations if the individual's most recent background check was done within the preceding 90 days.

The proposed amendment to §50.20(l) extends the amount of time a certificate applicant has to correct deficiencies in their application from ten to 15 business days from the date they were notified of the deficiency. And like the proposed amendment to §50.20(d), the proposed amendment to §50.20(q) will allow an applicant for multiple branch internet-based or mobile application in-house seller server school certificates to submit a single master application with each branch clearly identified, as provided on TABC forms, rather than separate applications for each certificate.

The proposed amendments also delete current §50.20(u) because it is duplicative and thus unnecessary. And like the proposed amendment to §50.20(l), the proposed amendment to new §50.20(x), extends the amount of time a certificate applicant has to correct deficiencies in their application from ten to 15 business days from the date they were notified of the deficiency. Proposed new §50.20(y) implements a new process whereby TABC may grant expedited approval of applications from primary schools that already hold a certificate and that are not subject to pending violations or disciplinary actions within the preceding 24 months. And finally, proposed new §50.20(z) clarifies that any materials required to be submitted to the agency under this rule may be submitted electronically.

FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATEMENT. Cherish Yenzer, Deputy Director of Training, 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 proposal. Ms. Yenzer 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. Ms. Yenzer 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, Ms. Yenzer expects that enforcing or administering the amended rules will have the public benefit of reducing regulatory burdens on applicants. Ms. Yenzer does not expect the proposed amendments will impose economic costs on the regulated industry. In its Regulatory Efficiency Review, TREO identified significant positive economic impacts associated with its recommendations to eliminate unnecessary or ineffective rules and reduce inefficiencies resulting from the agency's rules, but that analysis was based on all identified rule changes, not just those proposed here.

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 positively affect the Texas economy, as identified by TREO.

STATUTORY AUTHORITY. TABC proposes the amendments pursuant to TABC's rulemaking authority under Alcoholic Beverage Code §§5.31 and 106.14(b). Section 5.31 authorizes TABC to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code. Section 106.14(b) provides that TABC shall adopt rules or policies establishing the minimum requirements for approved seller training programs.

CROSS-REFERENCE TO STATUTE. The proposed amendments implement Alcoholic Beverage Code §§5.31 and 106.14.

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

(a) (No change.)

(b) An applicant for an original certificate or change of ownership for an internet-based seller server school must disclose all individual owners, individuals and legal entities having an ownership interest, and all officers, directors, managers, and instructors. Criminal history background checks under paragraph (3) of this subsection are required only for individuals with an ownership interest greater than 25 percent, executive officers, and instructors who interact with students.

(1) A legal entity must provide its formation and registration documents and must be authorized to transact business in this state.

(2) A personal history sheet must be completed and submitted with the application for each individual disclosed on the application.

(3) An individual required to submit a personal history sheet must at the same time submit an authorization for a criminal history background check.

(4) Additional information may be required by the commission to verify ownership or qualifications of the applicant.

(f) An applicant for an internet-based seller server school certificate must verify that the security measures implemented and maintained by the school meet state and federal standards for the transmission and protection of personal identification information and financial information of individuals accessing the website. A current, valid SOC 2 Type II, PCI DSS, or ISO 27001 certification shall be accepted as sufficient evidence of compliance with this subsection.

(g) - (h) (No change.)

(i) The applicant must agree to update the list required by subsection (h) of this section within 10 business days [~~24 hours~~] of a change during the term of the certificate and failure to keep the list current is grounds for cancellation of the primary internet-based training school certificate.

(j) A primary internet-based training school certificate covers all domains and delivery platforms under common ownership. The primary certificate holder shall notify the commission of any new domain or delivery platform within 10 business days of deployment through an online notification system maintained by the commission. [A primary internet-based training school must obtain a branch internet-based training school certificate for each domain that is under common ownership with the designated primary domain but that offers a different course of instruction from that offered at the designated primary domain.]

(k) Certificate holders must ensure that, before any domain redirects a student to the designated primary domain or to any domain under common ownership, the redirecting domain must display a standardized disclosure statement approved by the commission informing the student of the redirect, the identity of the school providing instruction, and the student's right to decline the redirect without incurring fees. [A primary internet-based training school is not required to obtain a branch internet-based or branch mobile application training school certificate for a domain that is under common ownership with the designated primary domain but that either merely redirects students to the designated primary domain or to another domain that is under common ownership with the primary domain.]

(l) The commission shall maintain a fully digital application system that retains prior application data for renewals, accepts electronic signatures, and allows digital submission for all materials required under this section. [~~A primary internet-based training school is required to obtain:~~]

[(1) a branch mobile application training school certificate for each delivery platform that is under common ownership with the designated primary internet-based program. This includes, but is not limited to, programs designed for specific mobile devices or custom programming as a delivery platform for the mandatory curriculum and internet-based testing; or]

[(2) a branch internet-based training school certificate for each delivery domain that is under common ownership with the designated primary internet-based program but provides a different course of instruction than that which is approved on the designated primary domain.]

[(m) A primary internet-based training school must require that before any domain redirects a student to the designated primary domain or to any domain under common ownership with it, and before charging the student, the redirecting domain must inform the student:]

~~[(1) that he will be transferred to another site;]~~

~~[(2) of the name of the school that will actually provide the course of instruction;]~~

~~[(3) of the name of the school that will appear on his certificate upon successful completion of the course;]~~

~~[(4) that the school to which he will be redirected will solicit private, personally identifiable information from the student; and]~~

~~[(5) that the student may refuse to be transferred without incurring fees.]~~

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

(a) - (c) (No change.)

(d) An applicant may submit one or more applications for a branch classroom-based in-house seller server school certificate[~~, but each application must be separately completed and submitted on forms provided by the commission~~]. Applications may be submitted individually or as a single master application with branch-specific addenda, on forms provided by the commission.

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

(h) An individual required to submit a personal history sheet must at the same time submit an authorization for a criminal history background check. The commission may access existing background check results from the primary school application database in lieu of requiring a new authorization where the individual's most recent background check was completed within the preceding 90 days.

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

(l) An applicant must:

(1) keep an exact copy of the application submitted to the commission; and

(2) complete and correct any deficiencies within 15 [~~ten~~] business days after being notified of the deficiency.

(m) - (p) (No change.)

(q) An applicant may submit one or more applications for a branch internet-based or mobile application in-house seller server school certificate[~~, but each application must be separately completed and submitted on forms provided by the commission~~]. Applications may be submitted individually or as a single master application with branch-specific addenda, on forms provided by the commission.

(r) - (t) (No change.)

~~[(u) An individual required to submit a personal history sheet must at the same time submit an authorization for a criminal history background check.]~~

(u) [~~(v)~~] Additional information may be required by the commission to verify ownership or qualifications of an applicant or individual.

(v) [~~(w)~~] The applicant must sign and verify that:

(1) the applicant has authority to act on behalf of all owners;

(2) the applicant has personally completed or reviewed the application and has personal knowledge of and is responsible for its content;

(3) all parts of the application that apply are complete;

(4) each fact, disclosure, and statement made in the application is true and correct at the time the application is submitted;

(5) the applicant acknowledges that an application for a certificate is a government document and is subject to verification by the commission; and

(6) the applicant acknowledges that providing false or misleading information or omitting a material fact may result in the refusal of the application, cancellation of a certificate, or criminal prosecution.

(w) [~~(x)~~] Incomplete applications or applications submitted without required fees will neither be accepted for processing nor returned to the applicant.

(x) [~~(y)~~] An applicant must:

(1) keep an exact copy of the application submitted to the commission; and

(2) complete and correct any deficiencies within 15 [~~ten~~] business days after being notified of the deficiency.

(y) Expedited Approval. The commission may grant expedited or automatic approval for branch applications from primary schools that hold a current, compliant certificate with no pending violations or disciplinary actions within the preceding 24 months.

(z) Electronic Processing. All materials required under this section, including personal history sheets and background check authorizations, may be submitted electronically with electronic signatures.

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 24, 2026.

TRD-202604140

Matthew Cherry

Senior Counsel

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: November 8, 2026

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