(c) An applicant must submit an Application to Register 
a Wine on the form prescribed by the commission along with the 
application fee to the commission. The application must contain the 
following: 
(1) If the product is eligible for a COLA: 
(A) a legible copy of the COLA; 
(B) an actual label that is affixed to the wine as shipped 
or sold, or a legible exact color copy of a label; and 
(C) all information required to complete the application 
form. 
(2) If the product is not eligible for a COLA: 
(A) an actual label that is affixed to the wine as shipped 
or sold, or a legible exact color copy of the label; 
(B) the TTB formulation, if required by the TTB; and 
(C) all information required to complete the application 
form. 
(d) Wines with an alcohol content of at least 0.5% but less 
than 7% are ineligible for a COLA and must adhere to the labeling 
requirements contained in 21 C.F.R. Part 101; 27 C.F.R. Parts 16, 24, 
and 27; 21 U.S.C. §§341-350; 26 U.S.C. Ch. 51; and 27 U.S.C. §215. 
§45.51. Additional Provisions for Examination of Wine. 
(a) It is unlawful for any producer or bottler of wine to accept 
as a return or to purchase or to use any container permanently branded 
or imprinted with the name of another producer or bottler of any alco-
holic beverage. 
(b) The alcoholic content requirements set forth in this chapter 
do not apply to sacramental or altar wines where ecclesiastical regula-
tions limit the alcoholic content to not more than 18% by volume. Such 
wines must be labeled "Sacramental" or "Altar" wines. 
(c) It is unlawful for any permittee to bring into this state, store, 
sell, or possess for the purpose of sale, any bottles of wine that are not 
protected from tampering or contamination by being sealed with seals 
of a type that must be irreparably mutilated or destroyed before the 
bottle can be opened. Such seals may not be made of paper. 
The agency certifies that legal counsel has reviewed the pro-
posal and found it to be within the state agency's legal authority 
to adopt. 
Filed with the Office of the Secretary of State on June 15, 2021. 
TRD-202102338 
Shana Horton 
Rules Attorney 
Texas Alcoholic Beverage Commission 
Earliest possible date of adoption: August 1, 2021 
For further information, please call: (512) 487-9905 
♦ ♦ ♦ 
SUBCHAPTER F. ADVERTISING AND 
PROMOTION[--ALL BEVERAGES] 
16 TAC §§45.106, 45.113, 45.117, 45.121 - 127 
The rules and rule amendments are proposed pursuant to the 
commission's authority under §5.31 of the Code to prescribe and 
publish rules necessary to carry out the provisions of the Code. The proposed amendments do not impact any other current rules 
or statutes. 
§45.106. Sweepstakes and Games of Chance. 
(a) This rule relates to §§102.07 and 108.061 [§102.07 and 
§108.061] of the Alcoholic Beverage Code. 
(b) For purposes of the above referenced provisions of the 
Alcoholic Beverage Code, sweepstakes shall include prizes that are 
awarded to consumers on the basis of random chance or on the basis of 
some knowledge or skill demonstrated by the sweepstakes participant, 
as determined by a judge or judges selected by the sponsor for that 
purpose. If a prize is a private event or other prize awarded in accor-
dance with Alcoholic Beverage Code §108.061(d) then subsections 
(k) -(q) [(k) through (q)] of this section apply. 
(c) Except as otherwise provided in this subsection, members 
of the manufacturer and wholesaler tier may offer a prize to a consumer 
if the offer is part of a promotional sweepstakes activity. Holders of a 
distributor's license may not offer a prize to a consumer if the offer is 
part of a promotional sweepstakes activity. Pursuant to Alcoholic Bev-
erage Code §108.061(d), only [manufacturers, nonresident manufac-
turers or] brewers or nonresident brewers may offer a prize, including 
food, beverages, entertainment, recreation, gifts or attendance at a pri-
vate event at a permitted or licensed retailer's premises. 
(d) A promotional permit holder contracted by a member of 
the manufacturing tier may sponsor a sweepstakes on behalf of the 
manufacturing tier member. 
(e) A person affiliated with the alcoholic beverage industry 
may not receive a prize from a sweepstakes promotion. 
(f) A person must be 21 years of age or older to enter a sweep-
stakes promotion. 
(g) Entry codes or entry forms on or in the caps, corks, labels, 
case cartons, or other materials packaged with, within, or printed on any 
packages of alcoholic beverages may be used as an entry mechanism 
provided: 
(1) such mechanisms do not grant a consumer's right to 
claim winnings; and 
(2) there is at the point of sale or on product packaging 
conspicuously displayed alternate means of entry available to the con-
sumers. 
(h) All sweepstakes entries are prohibited from requiring a 
purchase of an alcoholic beverage or the validation of any kind which 
requires a purchase of any alcoholic beverages. 
(i) Except as specifically authorized by this section, and Alco-
holic Beverage Code, §102.07 and §108.061, it shall be unlawful for 
any person to sell or distribute any alcoholic beverage in a container 
bearing any label, crown, or covering upon which there is printed or 
marked any word, letter, figure, symbol or character representative of 
or suggesting any game of chance, or to use or display any advertising 
so printed or marked. 
(j) Except as authorized by Alcoholic Beverage Code 
§108.061(d) -(f), any sweepstakes promotion that includes prizes that 
are to be awarded on the basis of some knowledge or skill demon-
strated by the sweepstakes participant may not be held or conducted 
on the licensed premises of a retailer or private club. Sweepstakes 
sponsors may, with the retailer's permission, place sweepstakes entry 
forms on retail premises. 
(k) Except as authorized by Alcoholic Beverage Code 
§108.061(d) -(f), alcohol may not be awarded as a prize. 
46 TexReg 4012 July 2, 2021 Texas Register (l) Except as authorized by Alcoholic Beverage Code 
§108.061(d) - (f), a sweepstakes sponsored by a member of an upper 
tier may not be retailer specific and prizes may not be awarded at a 
retailer's premises. 
(m) A [manufacturer, nonresident manufacturer, or] brewer or 
nonresident brewer may conduct a private event at a retailer's premises 
or award other prizes at a retailer's premises only in accordance 
with the requirements of this section and Alcoholic Beverage Code 
§108.061(d)-(f). 
(n) A prize awarded pursuant to Alcoholic Beverage Code 
§108.061(d) - (f) may include food, beverages, entertainment, recre-
ation, gifts, or attendance at a private event for the winners of the 
sweepstakes and other guests of the sponsor of the event. 
(o) The name or location of the premises where a private event 
described by subsection (n) of this section is held or prizes are awarded 
may not be mentioned in any advertising related to the sweepstakes. 
(p) A sweepstakes authorized by Alcoholic Beverage Code 
§108.061(d) -(f) may be conducted at a permitted or licensed premises 
and the prize may be awarded to the winners at the permitted or licensed 
premises at which the sweepstakes is conducted. 
(q) If a licensee or permittee conducts a private event au-
thorized by Alcoholic Beverage Code §108.061(d) - (f) at a retailer's 
premises: 
(1) the licensee or permittee shall pay the retailer the fair 
market value for the use of the premises; 
(2) the retailer must retain control of the sale and service of 
alcoholic beverages at the private event; 
(3) product served at the private event must be served by 
the retailer; and 
(4) the upper-tier sponsor authorized in subsection (m) of 
this section may purchase product for attendees from the retailer. 
§45.113. Gifts, Services and Sales. 
(a) General. 
(1) This rule is promulgated pursuant to §108.04 of the Al-
coholic Beverage Code to relax certain restrictions and prohibitions set 
forth in §§102.14, 102.15 and 108.06 of the code. 
(2) This rule applies to buyers, sellers and consumers of 
malt beverages [beer]. 
(b) Gifts to Consumers. Brewers, nonresident brewers, 
[Manufacturers] and distributors may furnish novelty items and malt 
beverages [beer] to consumers. 
(1) Novelty items are things designed to advertise or pro-
mote a specific product or brand. Such items may have a utilitarian 
function in addition to product promotion. 
(2) Such items may not exceed a value of $1.00 per unit 
wholesale cost. 
(3) Malt beverages [Beer] may be purchased for consumers 
provided that such beverages are consumed at retail licensed premises 
in the presence of the purchaser. Such purchases shall not be excessive. 
All members of the manufacturing and distribution tiers participating 
in promotions authorized by this paragraph must be an employee or 
agent of a brewer, nonresident brewer, or distributor or a promotional 
permit holder contracting with a brewer or nonresident brewer [hold an 
agent's beer license]. 
(4) The executive director [administrator] may grant spe-
cific approval for sampling tests designed to determine consumer taste preferences. The executive director [administrator] may impose such 
conditions as they deem [he/she deems] necessary. 
(5) Brewers [Manufacturers] and distributors may, as a so-
cial courtesy, give malt beverages [beer] and other things of value to 
unlicensed persons who are not employed or affiliated with the holder 
of a retail license or permit. 
(c) Promotional items sold to retailers. Distributors and 
brewers [members of the manufacturing tier] authorized to sell to 
retailers may sell promotional items to retailers. 
(1) Promotional items are things designed to promote 
a specific product or brand and are further designed for use by the 
consumer, either on or off the retailer's premises. 
(2) Promotional items sold must bear a manufacturer's 
logo, brand or product name. 
(3) Promotional items may not be sold for less than the item 
producer's [manufacturer's] regularly published wholesale price. Pay-
ment must be in cash, paid on or before delivery. 
(d) Signs provided to retailers. 
(1) Distributors and brewers [members of the manufactur-
ing tier] authorized to sell to retailers may furnish, give or sell interior signs to retailers. 
(2) A sign is a thing whose primary purpose is the adver-
tisement of a brand or product or the price thereof. 
(3) A sign furnished by a distributor or brewer authorized 
to sell to retailers [member of the manufacturing tier brewer or distrib-
utor] may not bear the name, logo or trademark of a specific retailer. 
(4) No brewer [manufacturer] or distributor may paint, im-
prove or remodel a retailer's buildings or parts of buildings, inside or 
out, or finance any improvements thereto. 
(e) Services provided to retailers. [Distributors and members 
of the manufacturing tier may:] 
(1) Distributors and brewers authorized to sell to retailers 
may service and repair promotional items and signs furnished or sold 
under the provisions of this rule. [;] 
(2) Distributors and brewers may: 
(A) [(2)] furnish meeting rooms to retailers on the 
brewer's or distributor's licensed premises. In no event shall anything 
be furnished to retailers except samples of the brewer's or distributor's product or food provided as a courtesy in accompaniment to such 
samples; and 
(B) [(3)] furnish and install shanks, washers, hose and 
hose connections, tap rods, tap markers, and coil cleaning service nec-
essary for the proper delivery and dispensing of draft malt beverages. 
(f) Gifts to unlicensed organizations. Brewers, nonresident 
brewers, Manufacturers] and distributors may donate money[, beer] or 
other things of value, and brewers and distributors may donate malt 
beverages to unlicensed civic, religious or charitable organizations, 
subject to the following conditions: [.] 
(1) Malt beverages [Beer] may only be given for consump-
tion in a wet area. 
(2) Advertising of events sponsored by organizations re-
ceiving donations shall include promotion of the organization sponsor 
or cause in a manner at least equal to or greater than the advertising of 
the industry donor. 
PROPOSED RULES July 2, 2021 46 TexReg 4013 (3) Distributors and authorized brewers [manufacturers au-
thorized to sell to retailers] may furnish malt beverage [draft beer] 
dispensing equipment for use at temporary events, provided that such 
equipment may not be given in exchange for an exclusive sales privi-
lege. 
(4) Brewers [Manufacturers], distributors and their em-
ployees and agents may not serve or dispense malt beverages at 
temporary events. 
(5) "Unlicensed" means not having a permit or license au-
thorizing the sale or service of alcoholic beverages. 
§45.117. Gifts and Advertising Specialties. 
(a) General. 
(1) This section is enacted pursuant to Alcoholic Beverage 
Code §§102.07(b), 102.07(d), 108.042 and 109.58. 
(2) This section applies to buyers, sellers, and consumers 
of liquor. 
(b) Gifts to consumers. Holders of distiller's and rectifier's, 
winery, nonresident seller's, and wholesaler's permits [Manufacturers 
and wholesalers] may furnish gifts to consumers. 
(1) The gifts shall be offered consistently with the restric-
tions contained in Alcoholic Beverage Code §102.07(d). 
(2) The items given may be novelty items of limited value. 
Such items shall be designed to promote a specific product or brand 
and may have a utilitarian function in addition to product promotion. 
(3) Liquor may be purchased for consumers provided that 
such beverages are consumed on retail licensed premises in the pres-
ence of the purchaser. Such purchases shall not be excessive. All mem-
bers of the manufacturing and wholesaler tiers participating in promo-
tions authorized by this paragraph must be an employee or agent of a 
member of the manufacturing tier, a distributor, or a promotional per-
mit holder [hold an agent's permit or manufacturer's agent's permit]. 
(4) Holders of distiller's and rectifier's, winery, nonresident 
seller's, and wholesaler's permits may, as a social courtesy, provide 
liquor or other things of value to unlicensed persons who are not em-
ployed or affiliated with the holder of a retail license or permit. 
(c) Gifts to Retailers. Holders of distiller's and rectifier's, win-
ery, nonresident seller's and wholesaler's permits [Manufacturers and 
wholesalers] may furnish advertising specialties to retailers. 
(1) Advertising specialties are things designed to advertise 
or promote a specific product or brand. Such items may have a utilitar-
ian function in addition to product promotion. 
(2) The total cost of all advertising specialties furnished to 
a retailer shall not exceed $125 [$101] per brand per calendar year. Dol-
lar limitations may not be pooled to provide a retailer with advertising 
specialties in excess of the maximum permitted under this subsection. 
(d) Service provided to retailer. 
(1) Holders of distiller's and rectifier's, winery, nonresident 
seller's and wholesaler's permits [Manufacturers and wholesalers] may 
service and repair items furnished to retailers under the provisions of 
this rule. 
(2) Holders of distiller's and rectifier's, winery, nonresident 
seller's and wholesaler's permits [Manufacturers and wholesalers] may 
furnish meeting rooms to retailers for purposes of product promotions. 
In no event shall anything be furnished to retailers except samples of 
the permit holder's [manufacturer's or wholesaler's] product or food 
provided as a courtesy in accompaniment to such samples. (3) The holder of a wholesaler's[, general class B whole-
saler's, local class B wholesaler's] permit, or the permit holder's 
employee or agent, may furnish and install shanks, washers, hose and 
hose connections, tap rods, tap markers, and coil cleaning service 
necessary for the proper delivery and dispensing of wine. 
(e) Gifts to Unlicensed Organizations. Holders of distiller's 
and rectifier's, winery, nonresident seller's and wholesaler's permits 
Manufacturers and wholesalers] may donate money, liquor or other 
things of value to unlicensed civic, religious, or charitable organiza-
tions. 
(1) Liquor may only be given for consumption in wet areas. 
(2) Advertising of events sponsored by organizations re-
ceiving donations shall include promotion of the organization sponsor 
or cause in a manner at least equal to or greater than the advertising of 
the industry donor. 
(3) "Unlicensed" means not having a permit or license au-
thorizing the sale or service of alcoholic beverages. 
§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 by radio broad-
cast, 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 ad-
vertisement is in conformity with this chapter. This chapter does not 
apply to the publisher of any newspaper, periodical or other publica-
tion, or radio broadcaster, unless such publisher or radio broadcaster is 
a permittee. 
§45.122. Prohibited Statements. 
(a) An advertisement for an alcoholic beverage shall not con-
tain: 
(1) any statement that is false or untrue in any particular 
or that irrespective of falsity, directly or by ambiguity, omission, or 
inference, or by the addition of irrelevant, scientific, or technical matter, 
tends to create a misleading impression; 
(2) any statement that is disparaging of a competitor's prod-
uct; 
(3) any statement, design, device, or representation that is 
obscene or indecent; 
(4) any statement, design, device, or representation of or 
relating to analyses, standards or tests, irrespective of falsity, that the 
administrator finds likely to mislead the consumer; 
(5) any statement of, or any statement likely to be inter-
preted as a statement regarding intoxicating qualities; nor 
(6) any statement, design, device, or representation of or 
relating to any guarantee, irrespective of falsity, that the executive di-
rector finds to be likely to mislead the consumer. Enforceable money 
back guarantees are not prohibited. 
(b) Statements inconsistent with labeling. The advertisement 
shall not contain any statement concerning a brand or lot of alcoholic 
beverage that is prohibited from appearing on the label or inconsistent 
with any statement on the label thereof. 
(c) Curative and therapeutic effects. The advertisement shall 
not contain any statement, design, or device representing that the use 
of any alcoholic beverage has curative or therapeutic effect, if such 
46 TexReg 4014 July 2, 2021 Texas Register statement is untrue in any particular, or tends to create a misleading 
impression. 
(d) Place of origin. The advertisement shall not represent that 
the alcoholic beverage was manufactured in or imported from a place 
or country other than that of their actual origin, or was produced or 
processed by one who was not in fact the actual producer or processor. 
(e) Confusion of brands. Two or more different brands or lots 
of alcoholic beverages shall not be advertised in one advertisement (or 
in two or more advertisements in one issue of a periodical or newspa-
per, or in one piece of other written, printed, or graphic matter) if the 
advertisement tends to create the impression that representations made 
as to one brand or lot apply to the other or others, and if as to such latter 
the representations contravene any provisions of this regulation or are 
in any respect untrue. 
(f) Flags, seals, coats of arms, crests, and other insignia. An 
advertisement shall not contain any statement, design, device, or picto-
rial representation which the administrator finds relates to or is capable 
of being construed as relating to the armed forces of the United States, 
or the American flag, or the Texas flag, or any emblem, seal, insignia, 
or decoration associated with such flag or armed forces; nor shall any 
advertisement contain any statement, design, device, or pictorial rep-
resentation of or concerning any flag, seal, coat of arms, crest, or other 
insignia, likely to mislead the consumer to believe that the product has 
been endorsed, made, or used by, or produced for or under the super-
vision of, or in accordance with the specifications of the government, 
organization, family, or individual with whom such flag, seal, coat of 
arms, crest, or insignia is associated. 
(g) An advertisement for an alcoholic beverage product shall 
not contain any statement that the product is distilled, blended, made, 
bottled, or sold under or in accordance with any municipal, state, fed-
eral, or foreign authorization, law or regulation, unless such statement 
appears in the manner authorized by this chapter. If a municipal, state 
or federal permit number is stated, such permit number shall not be ac-
companied by any additional statements relating thereto. 
(h) No alcoholic beverage possessed for the purpose of sale 
in this state shall be advertised for sale as the result of fire, smoke, or 
water damage to the label, container or contents. 
(i) Subsections (b) and (h) of this section do not apply to the 
institutional advertising of wines inside any building in an area where 
the sale of such wines is legal, provided that the advertising has been 
approved by the executive director. 
§45.123. Required Statements. 
(a) Responsible advertiser. 
(1) An advertisement not exempt under subsection (a)(2) 
of this section shall state the name and address of the person respon-
sible for its publication or broadcast. Street number and name may be 
omitted in the address. 
(2) If an advertisement refers to a general malt beverage or 
wine line or all of the malt beverage or wine products of one company, 
whether by the company name or by the brand name common to all the 
products in the line, the only mandatory information necessary is the 
name and address of the responsible advertiser. This exception does 
not apply where only one type of malt beverage or wine is marketed 
under the specific brand name advertised. 
(b) Class and type. The advertisement shall contain a conspic-
uous statement of the class to which the product belongs and the type 
thereof corresponding with the statement of class and type that is re-
quired to appear on the label of the product. 
§45.124. Lettering. Statements required under this subchapter to appear in any written, 
printed, or graphic advertisement shall be in lettering or type of a size 
sufficient to render them conspicuous and readily legible. 
§45.125. Cooperative Advertising by Package Stores. 
It is unlawful for any person holding a package store permit to share 
the same advertisement of distilled spirits with any other person or per-
sons holding a package store permit or permits, provided, however, that 
members of a partnership or corporation may share the same distilled 
spirits advertisement when said distilled spirits are offered for sale un-
der the permit or permits held by the said partnership or corporation. 
§45.126. Additional Mandatory Statements for Distilled Spirits. 
(a) Alcoholic content. The alcoholic content shall be stated by 
percentage by volume for distilled spirits except that it may be stated 
in proof of cordials and liqueurs, cocktails, highballs, and such other 
specialties as may be specified by the administrator. 
(b) Percentage of neutral spirits and name of commodity. 
(1) In the case of distilled spirits (other than cordials, 
liqueurs, and specialties) produced by blending or rectification, if 
neutral spirits have been used in the production thereof, there shall be 
stated the percentage of neutral spirits so used and the name of the 
commodity from which such neutral spirits have been distilled. The 
statement of percentage and the name of the commodity shall be made 
in substantially the following form: "_____% neutral spirits distilled 
from _____ (insert grain, cane products, or fruit, as appropriate)"; or 
"_____% neutral spirits (vodka) distilled from _____ (insert grain, 
cane products, or fruit, as appropriate)"; or "_____% grain (cane 
products), (fruit) neutral spirits"; or "_____% grain spirits." 
(2) In the case of neutral spirits or of gin produced by a 
process of continuous distillation, there shall be stated the name of the 
commodity from which such neutral spirits or gin has been distilled. 
The statement of the name of the commodity shall be made in substan-
tially the following form: "distilled from grain," or "distilled from cane 
products," or "distilled from fruit." 
(3) Retailers are exempt from the provisions of this subsec-
tion. 
(c) Price advertising. All distilled spirits advertised with 
prices by package store permittees shall state the brand name of the 
distilled spirits offered for sale. 
§45.127. Additional Prohibited Statements for Distilled Spirits. 
(a) An advertisement for a distilled spirit shall not contain any 
statement, design, or device directly or by implication concerning age 
or maturity of any brand or lot of the product unless a statement of age 
appears on the label of the advertised product. 
(b) When any such statement, design, or device concerning 
age or maturity is contained in any advertisement, it shall include (in 
direct conjunction therewith and with substantially equal conspicuous-
ness) all parts of the statement, if any, concerning age and percentages 
required by the TTB to be made on the label. 
(c) An advertisement for any whiskey or brandy (except im-
mature brandies) that is not required to bear a statement of age on the 
label or an advertisement for any rum, tequila or mescal that has been 
aged for not less than four years may, however, contain an inconspic-
uous, general representation as to age, maturity or other similar repre-
sentation even though a specific age statement does not appear on the 
label of the advertised product and in the advertisement itself. 
The agency certifies that legal counsel has reviewed the pro-
posal and found it to be within the state agency's legal authority 
to adopt. 
PROPOSED RULES July 2, 2021 46 TexReg 4015 Filed with the Office of the Secretary of State on June 15, 2021. 
TRD-202102339 
Shana Horton 
Rules Attorney 
Texas Alcoholic Beverage Commission 
Earliest possible date of adoption: August 1, 2021 
For further information, please call: (512) 487-9905 
♦ ♦ ♦ 
SUBCHAPTER G. REGULATION OF CASH 
AND CREDIT TRANSACTIONS 
45 TAC §45.130, §45.131 
The rules and rule amendments are proposed pursuant to the 
commission's authority under §5.31 of the Code to prescribe and 
publish rules necessary to carry out the provisions of the Code. 
The proposed amendments do not impact any other current rules 
or statutes. 
§45.130. Credit Law and Delinquent List. 
(a) Purpose. This section implements §§102.32, 11.61(b)(2), 
11.66, and 109.64 of the Texas Alcoholic Beverage Code (Code). 
(b) Definitions. For purposes of this section, the following 
terms have the definitions given in this subsection. 
(1) Alcoholic beverage--As used in this section includes 
only liquor, as that term is defined in §1.04 of the Code. 
(2) Cash equivalent--A financial transaction or instrument 
that is not conditioned on the availability of funds upon presentment, 
including money order, cashier's check, certified check or completed 
electronic funds transfer. 
(3) Delinquent payment--A financial transaction or instru-
ment that fails to provide payment in full or is returned to the Seller 
as unpaid for any reason, on or before the fourth business day after the 
date that payment is due under §102.32(c) of the Code, or is returned 
to the Seller as unpaid for any reason after the fourth business day after 
the date payment is due under §102.32(c) of the Code. A delinquent 
payment also occurs in the event the Retailer fails to submit payment 
on or before the fourth business day after the date that payment is due 
under §102.32(c) of the Code. 
(4) Event--A financial transaction or instrument that fails 
to provide payment to a Retailer and results in a Retailer making one 
or more delinquent payments to one or more Sellers. 
(5) Incident--A single delinquent payment. Failure to sub-
mit payment also constitutes an incident. 
(6) Retailer--A package store permittee, wine only package 
store permittee, private club permittee, private club exemption certifi-
cate permittee, mixed beverage permittee, or other Retailer, and their 
agents, servants and employees. 
(7) Seller--As used in this section includes: 
(A) the holder of a wholesaler's permit or a general class 
B wholesaler's permit 
(B) the holder of a winery permit; 
(C) the holder of a local distributor's permit when mak-
ing a sale of an alcoholic beverage that is not the sale of a malt bev-
erage to a mixed beverage permittee or a nonprofit entity temporary 
event permittee; and (D) the agents, servants and employees of a permit or 
license holder identified in subparagraphs (A) -(C). 
(c) Invoices. 
(1) A delivery of alcoholic beverages by a Seller to a Re-
tailer must be accompanied by an invoice of sale showing the name and 
permit number of the Seller and the Retailer, a full description of the 
alcoholic beverages, the price and terms of sale, and the place and date 
of delivery. 
(2) The Seller's copy of the invoice must be signed by the 
Retailer to verify receipt of alcoholic beverages and accuracy of in-
voice. 
(3) The Seller and Retailer must retain invoices in compli-
ance with the requirements of §206.01 of the Code. 
(4) Invoices may be created, signed and retained in an elec-
tronic or web-based inventory system, and may be retained on or off 
the licensed premise, as long as the records can be accessed from the 
licensed premises and made available to the commission during normal 
business hours. 
(d) Late Payment Violation. 
(1) A payment is late if it is not received by the Seller on 
or before the date that payment is due under §102.32(c) of the Code. 
If the Seller receives payment by mail within four days of the date that 
payment is due under §102.32(c) of the Code, the payment is not late. 
(2) A Retailer shall not make a late payment to a Seller for 
the delivery of alcoholic beverages. A payment is late and a violation 
accrues to the Retailer according to subsection (1) of this section. 
(3) A Retailer who violates this section must pay the 
amount due, and a Seller shall accept payment, only in cash or cash 
equivalent financial transaction or instrument. 
(4) A Retailer who violates this section shall be placed on 
the Delinquent List unless the delinquent account is paid within four 
days of the date that payment is due under §102.32(c) of the Code. 
(5) A Retailer whose permit or license expires or is can-
celled for cause, voluntarily cancelled, suspended or placed in suspen-
sion while on the Delinquent List is disqualified from applying for or 
being issued an original or renewal permit or license until all delinquent 
accounts are paid in full. For purposes of this section, the Retailer in-
cludes all persons who were owners, officers, directors and sharehold-
ers of the Retailer at the time the delinquency occurred. 
(e) Reporting Violation and Payment; Failure to Report. 
(1) A report of a violation or payment must be submitted 
electronically to the commission on the commission's web-based re-
porting system at https://www.tabc.texas.gov. 
(2) A Seller who cannot access the commission's 
web-based reporting system must either: 
(A) submit a request for exception to submit reports by 
paper; or 
(B) contract with another Seller or service provider to 
make electronic reports on behalf of the Seller. 
(3) All reports of violations or payment under this subsec-
tion must be made to the commission before the date the Delinquent 
List is published. 
(4) A Seller who fails to report a violation or a payment as 
required by this subsection is in violation of this section. 
(f) Prohibited Sales and Delivery. 
46 TexReg 4016 July 2, 2021 Texas Register