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[1. Opening Items]

[00:00:07]

AS YOU PROBABLY HAVE GUESSED, WE ARE NOT IN AUSTIN.

INSTEAD, WE ARE IN THE BEAUTIFUL AND HISTORIC CITY OF SAN ANTONIO.

AND. ENJOYING THIS FABULOUS WEATHER.

AND ONE OF TEXAS IS MOST DISTINGUISHED CITIES, WHICH IS OBVIOUSLY HOME TO SO MANY WONDERFUL AND NATURAL, BEAUTIFUL THINGS, INCLUDING THE RIVER ROCK.

BUT IT'S ALSO THE HOME OF CERTAINLY TWO OF THEM, OR THE ORIGINATION OF TWO OF TEXAS'S MOST HISTORIC BREWERIES, AS WELL AS SOME DISTILLERS.

SO WE'RE HAPPY TO BE HERE.

BUT IT'S ALSO JUST ON A PERSONAL NOTE, THIS IS MY HOMETOWN WHERE I GREW UP.

AND OF COURSE, THIS IS HOME TO OUR OWN COMMISSIONER, MARINA.

SO THE QUESTION IS, WHY ARE WE HERE? WHY ALL OF A SUDDEN, AFTER 80 YEARS, WE'VE DECIDED TO VACATE OUR HOME IN AUSTIN.

AND I THINK THE REASON IS THE ABSOLUTE REASON IS, IS THAT MANY PEOPLE THINK THAT AUSTIN IS THE ONLY PLACE WHERE GOVERNMENT OCCURS, IS NATURALLY OUR CAPITAL. AND SO WE CONDUCT MOST OF OUR BUSINESS THERE.

BUT ALSO AS AN AGENCY THAT HAS 58,000 LICENSE HOLDERS THROUGHOUT THE STATE AND HAS A BROAD SECTION OF CONSTITUENTS AND INDUSTRY GROUPS FROM LITERALLY FROM HOUSTON TO EL PASO AND DALHART TO DEL RIO AND ALL PLACES IN BETWEEN.

WE THINK THAT IT'S FITTING FOR US TO GO TO THE ROAD ON THE ROAD, RATHER, TO MEET AND TO BE VISIBLE TO OUR INDUSTRY PARTNERS, AS WELL AS TO OTHER MEMBERS OF THE COMMUNITY.

AND SO WE THINK THAT, WELL, IF YOU LOOK AT OUR COMMISSIONERS, WE HAVE COMMISSIONER FROM EL PASO, SAN ANTONIO, AUSTIN, HOUSTON AND DALLAS. SO AS A COMMISSIONER, WE REPRESENT A BROAD SWATH OF THIS GREAT STATE.

AND SO I THINK IT'S APPROPRIATE FOR US TO COME TO OTHER PLACES OUTSIDE OF AUSTIN, ESPECIALLY THE NATURE OF OUR COMMISSION.

SO THIS WILL BE THE FIRST OUTSIDE OF AUSTIN, AND WE HOPE TO HAVE OTHER OPPORTUNITIES IN THE COMING YEAR TO GO ELSEWHERE, INCLUDING THE GREAT CITY OF EL PASO.

COMMISSIONER ATKINS AS WELL.

SO THANK YOU VERY MUCH.

AND COMMISSIONER MORENO, THIS IS YOUR TOWN, SO I THOUGHT I'D TURN IT OVER TO YOU FOR A WELCOME.

WELL, WELCOME TO SAN ANTONIO.

I THINK I ALREADY SAID BIENVENIDOS TO EVERYONE.

ACTUALLY, I'M HAPPY TO SAY, IF I'M NOT MISTAKEN, IN DOING MY RESEARCH, HERMANSEN IS THE VERY FIRST APPLICANT TO GET A LICENSE FROM ABC.

THEY'VE HAD ONE FOR OVER 80 YEARS, WHICH JUST HAPPENS TO BE IN SAN ANTONIO, WHICH JUST HAPPENS TO BE DOWNTOWN.

SO WE HAVE A HUGE HISTORY HERE IN OUR CITY OF HOSPITALITY AND RESTAURANTS AND DISTILLERIES AND BREWERIES AND ALL OF THAT KIND OF GO HAND IN HAND.

SO I'M VERY EXCITED THAT EVERYONE IS THAT WE'RE BROADCASTING LIVE FROM SAN ANTONIO BEFORE TO KIND OF DIGGING IN OUR HEELS TODAY AND TAKING SOME TOURS LATER.

THANK YOU, COMMISSIONER. MARINA COMMISSIONERS, ANY OTHER COMMENTS? THANK YOU FOR HAVING US. YEAH, YOU'RE YOU'RE WELCOME.

YOU'RE WELCOME. AND ANY TIME.

LET'S DO IT. ANY TIME.

ALL RIGHT, GREAT. WELL, THANK YOU ALL VERY MUCH.

PLEASE JOIN ME IN RECITING.

PLEDGE ALLEGIANCE TO THE FLAG OF FOR THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

THE NEXT AGENDA ITEM IS APPROVAL OF COMMISSION MEETING MINUTES AS OF NOVEMBER 16, 2021.

SO MOVE. IS THERE A SECOND? SECOND? MR. MARINO. THANK YOU. MINUTES HAVE BEEN APPROVED.

WE WILL NOW VOTE FOR THE SECOND VOTE.

ALL RIGHT.

[2. Recognitions]

MINUTES ARE APPROVED AS WRITTEN.

THANK YOU. THE NEXT AGENDA ITEM IS THE LIFE SAVING AWARDS, EXTRAORDINARY AWARD OF BRAVERY AND HEROISM.

AND CHIEF NORRIS, WELCOME.

THANK YOU. GOOD MORNING.

BRANDY NORRIS, CHIEF OF LAW ENFORCEMENT.

I WANTED TO TAKE A FEW MINUTES TODAY, AND I'M PROUD TO BE ABLE TO PRESENT A COUPLE OF AWARDS TO YOU ALL, A COUPLE OF AWARDS TO SOME EMPLOYEES AND TELL YOU THE STORIES OF TRUE

[00:05:09]

BRAVERY, DILIGENCE AND QUICK THINKING THAT ULTIMATELY RESULTED IN THE SAVING OF SOMEONE'S.

THE LIFESAVING AWARD IS BESTOWED UPON AN EMPLOYEE.

I'M SORRY. YOU INTERVENED SPECIFICALLY, INDIRECTLY GOING ABOVE AND BEYOND THE NORMALLY WHAT IS NORMALLY EXPECTED TO SAVE THE LIFE OF THE.

AND TODAY WE HAVE NOT ONE BUT TWO CPS POLICE OFFICERS WHO WERE GOING TO BE RECOGNIZED.

THE RECIPIENTS OF THE ACTIONS ARE STILL WITH US TODAY DUE TO THEIR EFFORTS.

AND SO YOU'RE GOING TO HEAR THE STORIES AT THE END.

KNOW THAT ALL OF THESE FOLKS STILL ARE WITH US BECAUSE OF THE ACTIONS OF OUR AGENTS.

NEXT SLIDE. THE FIRST IS AGENT LEANNE WIGGINS.

LEANNE WAS HIRED IN OCTOBER OF 2005 AND HAS SPENT THE ENTIRETY OF HER CAREER IN THE ENFORCEMENT DIVISION.

SHE'S WORKED IN MINERAL WELLS, ARLINGTON, VERMONT.

SHE'S NOW EFFICIENT IN LUFKIN.

AND ON SEPTEMBER 21ST, SHE WAS WORKING WITH ANOTHER AGENT WITH OUR AGENCY, LOOKED OVER AND REALIZED THAT HE WAS IN DISTRESS AND HE WAS STRUGGLING, QUICKLY, REALIZED THAT HE WAS IN SOME SORT OF A CARDIAC EVENT.

SHE ALSO REALIZED THE DIRE THE SITUATION.

AND RATHER THAN TAKING THE TIME TO CALL 911, SHE MADE A SPLIT SECOND DECISION.

I'M GOING TO GET HIM TO THE HOSPITAL MYSELF.

SO SHE TOOK ACTION, DROVE HIM TO THE HOSPITAL, GOT HIM THERE, GOT HIM INTO A WHEELCHAIR, INTO THE E.R.

AND WE LATER FOUND OUT THAT THE EMERGENCY ROOM STAFF SAID SHE HAD TAKEN THE TIME TO CALL 911, AND SHE HAD NOT RECOGNIZED HOW SEVERE OF A SITUATION IT WAS THAT HE WOULD NOT BE WITH US TODAY.

SO DUE TO HER ACTIONS AND QUICK THINKING, HE IS STILL WITH US AND HE IS WORKING AGAIN AND BACK AT WORK.

AND THANKS TO HER, THIS AGENT IS NOW ALIVE AND STILL WITH HIS FAMILY AND WITH US.

SO WE HAVE THESE AWARDS.

SHE IS UNABLE TO BE HERE BECAUSE SHE THERE WAS SOME COVID ISSUES.

BUT WHAT THE LIFESAVING AWARD SAYS IS FOR OUTSTANDING PERFORMANCE IN HER LIFESAVING ACTIONS ON SEPTEMBER 21ST AND LUFKIN, ANGELINA COUNTY, TEXAS.

HER ACTIONS REFLECT THE HIGHEST STANDARDS OF CONDUCT FOR THE LAW ENFORCEMENT PROFESSION AND BRINGS GREAT CREDIT TO THE TEXAS ALCOHOLIC BEVERAGE COMMISSION.

SO A HUGE THANK YOU TO AGENT WIGGINS FOR HER QUICK ACTIONS AND HER SAVING THE DAY JUST LIKE THAT.

ABSOLUTELY. THANKS.

THE SECOND ONE IS FOR SERGEANT ADRIAN RODRIGUEZ.

SERGEANT RODRIGUEZ, WE DON'T HAVE PICTURES OF HIM DUE TO THE SENSITIVITY OF THE WORK THAT HE DOES, BUT WE WANT TO SHARE THIS STORY.

HE WAS HIRED IN FEBRUARY OF 2009.

IN JUNE OF 2013, HE SHIFTED OVER TO OUR CIU, OUR SPECIAL TO THIS UNIT WHERE HE SERVED IN MCALLEN, SAN ANTONIO.

AND THEN APRIL 2017, HE PROMOTED TO SERGEANT AT THE SERVICE SERGEANT OF THE SCIU IN EL PASO IN AUSTIN, ALMOST THE ENTIRE TIME THAT HE HAS BEEN WITH THE SCIU.

HE SERVED ON THE FBI TASK FORCE.

AND SO HE'S HAD LOTS OF OPPORTUNITY TO WORK WITH DIFFERENT AGENCIES AND DIFFERENT AGENTS THROUGHOUT HIS CAREER.

IN JUNE OF 2021, SERGEANT RODRIGUEZ WAS WORKING WITH A SOURCE REGARDING DRUGS AND HUMAN TRAFFICKING THAT WAS CLOSELY RELATED TO THE ALCOHOLIC BEVERAGE INDUSTRY.

THE SOURCE DURING THIS INVESTIGATION REVEALED INFORMATION REGARDING A PLANNED MURDER OF TWO FEDERAL AGENTS.

SERGEANT RODRIGUES REALIZED THAT THIS WAS PROBABLY LEGITIMATE AND TURNED AROUND AND TOOK THE INFORMATION TO THE FBI AND WORKED IN CONJUNCTION WITH THE FBI AND THE SOURCE RELAYING INFORMATION BACK AND FORTH, AND ULTIMATELY WAS DISCOVERED THAT NOT ONLY WAS THE INFORMATION ACCURATE, THAT IT WAS AN IMPENDING HIT ON THESE AGENTS, AND DUE TO HIS RECOGNIZING IT AND PASSING THE INFORMATION ON THESE TWO FEDERAL AGENTS ARE NOW ALIVE AND SAFE.

SO IT WAS AN ACCURATE PROOF TO SAVE THE LIVES OF THE TWO FEDERAL AGENTS.

AND IT WAS SO IMPORTANT THAT IT ULTIMATELY WAS BRIEFED ALL THE WAY TO PRESIDENT BIDEN AT THE TIME, WHO ASKED, WHO DOES THIS AGENT WORK FOR? AND WE GOT THE OPPORTUNITY OF HAVING OUR NAME MENTIONED TO THE PRESIDENT, THE TEXAS ALCOHOLIC.

WELL DONE. AND WHEN EVERY DAY I FEEL LIKE EVERY DAY OR I JUST DO EXCEPTIONAL WORK, WHATEVER ACTIONS ARE TAKEN THAT TRULY RESULT IN THE SAVING OF LIVES OR JUST IS WORTH A LITTLE BIT OF EXTRA TO RECOGNIZE THE WORK THEY DO AND TO TELL THEM THANK YOU.

SO THANK YOU TO BOTH OF THEM FOR WHAT THEY DO EVERY DAY.

INDEED. THANK YOU, CHIEF.

THANK YOU. IT'S SO IMPORTANT THAT WE HIGHLIGHT.

THE BRAVE ACTIVITY AND INITIATIVE OF ALL OF OUR LAW ENFORCEMENT OFFICIALS IN THE STATE.

[3. Reports]

SO THAT'S THOSE ARE WONDERFUL EXAMPLES.

SO THANK YOU.

AND WE WILL NOW MOVE TO THE NEXT AGENDA ITEM, WHICH IS AN AMES UPDATE.

DIRECTOR MOSLEY, WELCOME.

THANK YOU. GOOD MORNING, MR. CHAIRMAN. COMMISSIONERS, PLEASURE TO BE HERE TODAY.

[00:10:05]

I'VE BEEN ASKED TO PROVIDE YOU WITH A THEME ON HOW AMES IS MOVING ALONG, AND I'M HAPPY TO BRING THOSE NUMBERS TO YOU.

THE FIRST THING ON YOUR SCREEN IS A SNAPSHOT IN TIME, THE UNIQUE NUMBER OF BUSINESS ENTITIES ON THE DAY THAT WE HOLD THIS.

WHICH WAS JANUARY 18TH, IS 44,903.

AND THE LICENSE UNIQUE LICENSE LOCATION IS A PRIMARY HOLDER OF AT LEAST ONE LICENSE. AND IT'S THE LOCATION, PHYSICAL LOCATION.

THOSE ARE FLUID NUMBERS THAT WILL CHANGE AS AS EACH DAY GOES.

WE HAVE PEOPLE THAT DON'T RETAIN.

WE HAVE NEW BUSINESSES THAT COME IN.

BUT THAT'S THE SNAPSHOT FOR THE DAY.

THEY ARE NOT ALL THE NAMES.

THAT IS JUST THE NUMBER THAT WE'RE MOVING TOWARDS.

JUST TO CLARIFY THAT, NEXT SLIDE, PLEASE.

I CHOSE DECEMBER 31ST AS THE DATE TO PULL THESE NUMBERS FOR YOU SO THAT WE DIDN'T HAVE JUST A MIDPOINT IN THE MONTH. SO THROUGH DECEMBER 31ST, 2021, WE HAD INVITED 22,423 BUSINESS ENTITIES TO JOIN US.

AND OF THOSE 13,912 SUCCESSFULLY SUBMITTED THEIR CLAIM FOR BUSINESS AND THAT IS A 62.4% SUCCESS RATE OF THOSE WHO HAVE BEEN INVITED.

OBVIOUSLY, WE WOULD LIKE EVERYONE TO JOIN, BUT AT THIS POINT WE ARE VERY HAPPY WITH THAT 62%.

WE WERE HOPING FOR 60 TO 65, GENERALLY SPEAKING.

AND SO THAT I GET ON TARGET EACH MONTH, WE INVITE ON AVERAGE THAT'S NUMBERS GOING TO GO UP AND DOWN 3211 RETAILERS THAT ARE THE ONES THAT ARE REMAINING.

AND WE WILL DO THE ONBOARDING THROUGH THE NEXT SEVEN MONTHS.

AND SO THE REMAINING 21 PLUS THOUSAND WILL BE INVITED TO ON BOARD BY THE END OF JUNE.

AND SO THAT IS WHAT WE'RE DOING.

THESE ARE SUBMISSIONS.

I AM NOT REPORTING ON APPROVALS BECAUSE THAT'S LICENSING WORK THAT THEY'RE DOING AND I'M NOT REPORTING ON THEIR WORK, I'M JUST REPORTING ON WHAT'S COMING INTO ACE.

NEXT SLIDE, PLEASE.

ALSO THROUGH DECEMBER 31ST ARE THE BUSINESS TRANSACTIONS AND ORIGINAL APPLICATIONS.

WE HAD 4001 SUCCESSFULLY SUBMITTED.

WE HAD, AS YOU CAN SEE ON YOUR SCREEN, 12,389 RENEWAL APPLICATIONS, ACCOUNT BUSINESS TRANSACTIONS.

THOSE ARE THINGS SUCH AS CHANGING THE BUSINESS ENTITY NAME TO BOND, CHANGE OF CLASS, CHANGE OF ENTITY, ETC.

AND THESE ARE CALLS THAT WOULD HAVE COME INTO THE LICENSING STACK THAT OTHERWISE ARE BEING NOW DONE ONLINE.

AND SO IT'S SELF SERVICE TRANSACTIONS THAT IS FREEING UP LICENSING STAFF TO BE ABLE TO DO OTHER THINGS AND THEN ALL OTHER APPLICATION TYPES THAT MIX BEVERAGES. IT WILL BE LATE HOURS, FOOD AND BEVERAGE, ETC..

WE'VE HAD 12,513 SUCCESSFUL SUBMISSIONS AS WELL.

WITH THE TOTAL. AS YOU CAN SEE, 30,020 SUCCESSFUL SUBMISSIONS AND WINNINGS IN THE FIRST FOUR MONTHS.

THE NEXT ONE. WHEN I REPORTED TO YOU ALL IN OCTOBER, I NOTED THAT WE HAD 92 CONFIRMED ISSUES THAT WE WERE WORKING ON. AFTER WORKING THROUGH THOSE, WE HAD SOME DUPLICATES IN SOME THAT COULD NOT BE REPLICATED.

SO THAT NUMBER DROPPED TO 86.

WE HAVE SUCCESSFULLY CLEARED UP 60 OF THOSE BY FIXING THEM.

12 OF THOSE WERE JUST NOT NEEDING USER TRAINING.

WE JUST HELPED THEM WORK THROUGH WHAT THEY WERE NOT SEEING AND UNDERSTANDING OF WHAT TO DO.

WE HAVE 12 MORE THAT WE ARE WORKING ON RIGHT NOW AND TWO THAT WILL REPORT IT AT THE TIME THAT I CREATED THESE SLIDES.

WE EXPECT TO HAVE ALL OF THOSE DONE THIS MONTH AND PROBABLY SOME IN FEBRUARY, BUT NONE OF THE ONES THAT OF THE 12, NONE OF THEM ARE SHOWSTOPPERS, AS I WOULD CALL THEM, OR I THINK I REFERRED TO THE MASSIVE ONES AND SEVERITY ONES IN PART OF ME AS WELL.

SO THOSE ARE THE NUMBERS FOR YOU TODAY.

I'LL BE HAPPY TO ANSWER ANY QUESTIONS THAT MAY HAVE.

A FEW QUESTIONS.

THANK YOU FOR THE UPDATE.

VERY THOROUGH. AND ON THE SIDE ONE, I'M GLAD THAT YOU WAS ONE OF THE FIRST THINGS I WAS GOING TO ASK, SO I'M HAPPY TO HEAR THAT WE DON'T HAVE ANY OF THOSE NEW OCCURRENCES.

SO CAN YOU GIVE US A BACKGROUND ON SOME ON THE SEVERITY OF OUTREACH FROM THE COMMUNITY OR APPLICANTS?

[00:15:03]

BASED ON WHEN WE WERE IN OUR KIND OF A ROUGH PATCH, WE HAD A LOT OF FOLKS CALLING.

GIVE ME A SENSE OF WHAT THAT WHAT THAT IS TODAY.

ARE WE ABLE TO HANDLE THE INFLOW OF CALLS REGARDING APPLICANTS? YES, SIR. WE'VE GONE AND I SHOULD HAVE BROUGHT THOSE NUMBERS.

I APOLOGIZE THEM OFF THE TOP OF MY HEAD.

BUT THEY HAVE DROPPED FROM ABOUT 130 EMAILS A DAY THAT CAME COMING IN TO INDUSTRY SUPPORT THROUGH DROP DOWN TO 20 TO 25.

A LOT OF THOSE ARE JUST REPEAT QUESTIONS A LOT OF TIMES, OR SOMETIMES IT'S FOR HELPING.

SO IT REALLY IS, I WOULD NOT SAY NEW ISSUES AT ALL.

SO PEOPLE ARE LOCKED OUT AND SO THEY EMAIL INDUSTRY SUPPORT FOR JUST GETTING THEIR ACCOUNT OR SOMETHING LIKE THAT.

BUT WE DON'T HAVE ANY LIKE THE FEDERAL ATHENZ THAT WAS SOLVED WEEKS ACTUALLY MONTHS AGO.

SO THINGS LIKE THAT ARE TAKEN CARE OF AND PEOPLE ARE ABLE TO MOVE THROUGH IT AND WE'RE ADEQUATELY STAFF FOR THE LEVEL OF CALLS THAT WE HAVE NOW.

YES. I JUST LIKE TO MAKE A COMMENT.

I WANT TO COMMEND THE CHAIRMAN AND THE OTHER COMMISSIONERS FOR PUSHING TO BRING THE FEEDBACK FROM INDUSTRY THAT WE RECEIVED TO BE ABLE TO MAKE THIS A SUCCESS. BECAUSE AS YOU ROLL ANY OF THESE OUT, YOU DON'T KNOW WHAT'S BROKEN UNTIL YOU GET THE FEEDBACK.

AND THEN IT'S A LOT OF WORK TO GET THAT FIXED.

AND SO THERE'S BEEN A TREMENDOUS AMOUNT OF WORK.

IT TOOK A LITTLE LONGER THAN WE WANTED TO, BUT IT'S HAPPENED.

I GOT TO HEAR FROM SOME PEOPLE FROM INDUSTRY THAT HAD PRESENTED, I THINK IT WAS FIVE PAGES OF ISSUES WHEN IT FIRST ROLLED OUT AND WAS HAPPY TO HEAR THAT THAT HAS ALL BEEN ADDRESSED. AND SO IT WILL ALWAYS BE A CONTINUAL PROCESS.

THERE'S GOING TO STILL CONTINUE TO BE BUGS, BUT WE'RE ON TOP OF IT.

WE'RE FIXING IT. AND SO I THINK IT'S BEEN A GREAT JOB.

THANK YOU. I'D ALSO LIKE TO THANK THE COMMISSIONERS FOR THEIR THEIR DILIGENCE AND COOPERATIVE INTENT TO NOT ONLY WORK WITHIN THE AGENCY, BUT ALSO TO SEEK FEEDBACK FROM OUR INDUSTRY PARTNERS IN THIS IN THIS QUEST.

SO AND THANK YOU FOR.

YOU'VE BEEN WORKING PRETTY HARD FOR A LONG TIME.

SO THANK YOU. WE APPRECIATE IT.

ANY OTHER COMMENTS, COMMISSIONER BOATWRIGHT? ANYTHING FROM DALLAS? AND JUST I ASK THAT THIS BE PUT ON THE AGENDA, AND I'M GRATEFUL TO THE OTHER COMMISSIONERS FOR AGREEING TO DO THAT, AND I'M GRATEFUL FOR THE UPDATE.

MORE INFORMATION IS IS IS GOOD.

STAYING ON PROBLEMS THAT PERSIST IS GOOD.

AND I'M GLAD TO SEE THAT WE'RE DOING THAT.

AND I WANT TO ENCOURAGE EVERYONE TO TO KEEP WITH IT.

IF THERE ARE IF THERE ARE CONTINUING TO BE PROBLEMS, WE NEED TO KNOW ABOUT THEM.

WE NEED TO WE NEED TO CONTINUE TO TRY TO FIX THEM.

WE CAN'T LET UP.

WE NEED TO STAY ON THIS.

AND I APPRECIATE EVERYONE'S EFFORT IN THAT REGARD.

THANK YOU. THANK YOU, SIR.

THANK YOU, COMMISSIONER BOATWRIGHT. YESTERDAY, REALLY MORE OF AN UPDATE, IF YOU WON'T MIND.

THE COMPANY THAT WE PARTNERED WITH TO MANAGE ALL THE SOFTWARE OR BUILD OUT THE SOFTWARE FOR US.

CLEARLY, THERE WAS SOME ISSUES ON LOADING DOCUMENTS OR PEOPLE WERE DOING ROUNDABOUT WAYS TO KIND OF GET THROUGH THE APPLICATION PROCESS.

SEEMS LIKE ALL OF THAT HAS BEEN CLEARED UP.

SO REALLY KIND OF A TWO PART QUESTION.

ONE, CAN YOU COMMENT ON IS THERE ANY ADDITIONAL KIND OF GLARING ISSUES WITHIN THE SOFTWARE THAT STILL THE COMPANY NEEDS TO WORK ON TO MAKE SURE THAT IT'S A FLUID PROCESS? AND TWO, WOULD YOU SEE THAT THIS WILL BE CONTINUING A PROCESS AS WE KIND OF GET THE BUGS OUT? HOW RESPONSIVE HAS THE SOFTWARE COMPANY BEEN IN MAKING SURE THAT WE ARE GIVING THE BEST CUSTOMER SERVICE TO OUR CLIENTS? SURE. SO AS FAR AS THE FIRST POINT, THEY HAVE ADDRESSED ALL OF THE SEVERITY ONES AND TWOS AS WE REFER TO THEM, AND THAT THOSE ARE THE ONES THAT PROHIBIT SOMEONE FROM DOING ANYTHING IN THE SYSTEM.

AND THEY HAVE BEEN HIGHLY RESPONSIVE AND THEY WERE DOING UPDATES AND DEPLOYMENTS OF FIXES WEEKLY, WHICH IS A BIG PUSH.

THEY WERE WORKING AROUND THE CLOCK BASICALLY 24 SEVEN AND THEY NEVER LET UP.

I WOULD APPLAUD THEM FOR THE EFFORT THAT THEY'VE PUT INTO IT.

AND OUR SUCCESS IS THEIR SUCCESS, OBVIOUSLY, THAT THEY WERE VERY ATTENTIVE TO THE ISSUES THAT WE HAVE NOW.

EVERY TIME WE HAVE A NEW FEATURE COME OUT, WE TEST THEM AND PUSH THEM OUT THAT WAY.

WE'RE DOWN TO TWO TIMES A MONTH BECAUSE WE DON'T HAVE ANY.

THE SEVERITIES THAT WE DID BEFORE THAT THEY HAVE NEVER LET THEY THEY ARE SAN ANTONIO BASED, I WILL ADD, AND IT'S MY DIRECT QUESTION,

[00:20:01]

AND THEY ARE HERE AT LEAST ONE IS HERE TODAY AT THE REQUEST OF THAT COMPANY IS HERE TO GIVE AWAY MONEY.

THEY'LL BE SHY AWAY, BUT THEY HAVE I COULD NOT ASK FOR A BETTER PARTNER FOR US AND THEY ARE VERY RESPONSIVE.

ANY TIME I REACH OUT TO THEM, ANY TIME THE TEAM REACHES OUT TO THEM, THEY RESPOND VERY WELL.

AND I DO NOT PERCEIVE THAT THAT CHANGING.

THANK YOU. APPRECIATE YOU BEING HERE, BY THE WAY.

THANK YOU. THANK YOU. THANK YOU.

THANK YOU. COMMISSIONERS, ANY OTHER COMMENTS? OKAY. THANK YOU. WELL, THANK YOU FOR THE OPPORTUNITY.

YES, MA'AM. ALL RIGHT.

THE NEXT AGENDA ITEM IS PORTS OF ENTRY PASAR SEASON 2022.

AND WE HAVE DEPUTY EXECUTIVE DIRECTOR BILL PEARMAN.

COMMISSIONERS, HOPE EVERYBODY'S OKAY TODAY.

BEFORE WE LAUNCH INTO THE SLIDES, I WANTED TO GIVE YOU A LITTLE BIT OF BACKGROUND ON PERSONAL.

A LOT OF PEOPLE HAVE HEARD ABOUT IT, BUT THEY DON'T REALLY KNOW WHAT IT IS.

BALZANO SEASON IS A CELEBRATION ON THE US-MEXICO BORDER.

IT STARTS LATE IN DECEMBER AND IT RUNS TO THE END OF THE FIRST WEEK OF JANUARY EACH YEAR.

NOW PERSONAL MEANS, COUNTRYMEN.

IT'S A TIME WHEN MEXICAN NATIONALS AND THEIR RELATIVES LIVING ON THE US SIDE AND THE MEXICAN SIDE WHEN THEY CROSS THE BORDER BOTH WAYS AND THEY VISIT ONE ANOTHER.

THAT'S THE WHOLE PURPOSE OF THE HOLIDAY.

IT'S A NATIONAL PERIOD OF CELEBRATION OF FAMILY.

SO REVOLVES AROUND THE NEW YEAR, WHICH IS WHY THE PREDOMINANT TRAVEL PERIOD IS BETWEEN THE LAST TWO WEEKS OF DECEMBER AND THE FIRST WEEK OF JANUARY.

SO DURING THIS TIME, THE MEN AND THE WOMEN OF OUR PORT OF ENTRY DIVISION, THEY PROCESS HUNDREDS OF THOUSANDS OF VISITORS THROUGH OUR ABC CHECKPOINTS ALL ALONG THE BORDER.

BUT THE PRIMARY POINT OF ENTRY DURING FASANO IS THE PORT OF LAREDO, WHERE LAREDO IS THE BUSIEST PORT OF ENTRY IN THE ON THE ENTIRE TEXAS BORDER AVERAGES ABOUT 8 TO 9000 VISITORS A DAY.

ON A NORMAL DAY TODAY, BETWEEN EIGHT AND 9000 PEOPLE WILL CROSS AT THE AT AT THE BRIDGES IN LAREDO.

AND THERE ARE THREE BRIDGES THERE.

THERE'S A BUS BRIDGE, A PEDESTRIAN BRIDGE, AND THEN THERE'S A VEHICLE BRIDGE.

AND YOU'RE GOING TO SEE SOME PICTURES OF THAT IN JUST A SECOND.

SO DURING THE BUSINESS SEASON, THOUGH, THAT 89,000 FIGURE TRIPLES DURING THOSE 15 TO 20 DAYS.

THE FLOW OF TRAFFIC IS VIRTUALLY NONSTOP, WITH THOUSANDS OF PEOPLE AN HOUR COMING ACROSS.

OUR REGULATORY COMPLIANCE OFFICERS COME INTO CONTACT WITH VIRTUALLY EVERY PERSON THAT ENTERS THE UNITED STATES.

I'VE BEEN TO LAREDO THE PAST FIVE YEARS AND I'VE WITNESSED THE ABSOLUTE GALLANT WORK THAT OUR UNIFORMED ARCOS PERFORM.

THERE ARE FORCE MULTIPLIER FOR THE US CUSTOMS SERVICE AND WE RTA, RTA, BC REGULATORY COMPLIANCE OFFICERS.

WE DETECT AND INTERSECT HUNDREDS OF THOUSANDS OF DOLLARS A YEAR IN DRUGS AND ILLEGAL NARCOTICS.

I'LL GIVE YOU AN EXAMPLE OF SOME YOU'RE GOING TO YOU'RE GOING TO SEE A PICTURE OVER HERE IN A MINUTE.

METHAMPHETAMINE, FENTANYL, OXYCODONE.

AND WE FIND THESE AS WE'RE PROCESSING THE VISITORS THROUGH OUR CHECKPOINTS.

ONE OF OUR MAIN FUNCTIONS DOWN THERE IS TO COLLECT THE TAXES ON THE ALCOHOL THAT'S IMPORTED INTO THE STATE.

THAT'S WHAT WE'RE MANDATED TO DO BY THE STATE.

HOWEVER, OUR PRIMARY MISSION IS THE PROTECTION OF THE CITIZENS OF THIS STATE BY PREVENTING THE IMPORTATION OF ILLEGAL OR ILLICIT ALCOHOL CONTAINERS INTO THE STATE AND TO PREVENT THE IMPORTATION OF ALCOHOL BY MINORS.

WHAT YOU'RE GOING TO SEE SOME PRETTY IMPRESSIVE STATS HERE IN JUST A SECOND AS TO HOW SUCCESSFUL WE'VE BEEN AT DOING THAT DURING THIS SEASONAL SEASON.

SO BEFORE WE LAUNCH INTO THE SLIDES, I WANT TO SAY TO YOU THAT OUR ENFORCEMENT DIVISION PARTNERS WITH PORT OF ENTRY DIVISION DURING THE BUSINESS SEASON AND PROVIDES US AGENTS TO ASSIST WITH TRAFFIC CONTROL SEARCHES, VISITOR CONTACTS AND THE GENERAL PROCESSING HUNDREDS OF THOUSANDS OF VISITORS THAT WE PROCESS EACH SEASON, AND THE PRESENCE OF OUR ENFORCEMENT AGENT, OUR OF OUR AGENTS.

IT MAKES A MONUMENTAL DIFFERENCE IN THE LEVEL OF COMPLIANCE THAT WE RECEIVE FROM THE VISITORS THAT ARE ENTERING THE STATE.

FIRST SLIDE, PLEASE.

HERE ARE HERE ARE THE STATISTICS FROM THE FROM THE SEASONAL SEASON HERE.

THE CONTAINERS THAT WERE PROCESSED, A NUMBER OF ONES THAT WERE PROCESSED, A LITTLE OVER 200,000.

SO YOU CAN SEE AND THIS IS THAT THIS IS A VERY SHORT PERIOD OF TIME FROM DECEMBER THE 30TH TO JANUARY THE 10TH.

SO WE'RE ONLY TALKING ABOUT 11 DAYS.

TOTAL REVENUE IS 709, ALMOST 708,000 OF THE OF THE 7.8 MILLION THAT WILL COLLECT ALONG THE BORDER DURING THE YEAR.

SO WE COLLECTED ABOUT 10% DURING THIS DURING THIS PERIOD OF TIME.

[00:25:02]

THAT JUST SHOWS YOU THE VOLUME OF TRAFFIC THAT'S COMING ACROSS.

WE INTERCEPTED 677 ILLICIT CONTAINERS.

WE INTERCEPTED 155 MINORS WERE IN POSSESSION OF ALCOHOL AND ANOTHER 21 MINORS THAT WERE IN POSSESSION OF CIGARETS BECAUSE WE ALSO COLLECT TAXES ON CIGARETS AND WE ENFORCE ALL THE SAME IMPORTATION LAWS ON CIGARETS THAT WE DO ON ALCOHOL.

AND A LOT OF PEOPLE DON'T REALIZE THAT.

UH, THE EXCESS CONTAINERS THAT WE HAD, WHICH IS WHICH MEANS THE ONES THAT YOU HAVE, YOU HAVE A SET LIMIT THAT YOU CAN BRING IN.

YOU CAN BRING IN A CASE OF BEER AND YOU CAN BRING IN TWO BOTTLES OF SPIRITS.

AND IF YOU'RE OVER THAT, THEN YOU'RE IN EXCESS.

SO WE CONFISCATED 1000, FIVE 1464 EXCESS CONTAINERS DURING THIS TIME.

SO IT'S A IT'S AN EXTRAORDINARILY BUSY WEEK.

NEXT SLIDE. SO THIS IS KIND OF WHAT IT LOOKS LIKE IF YOU'RE DOWN AT THE LAREDO BORDER.

WHAT YOU'RE SEEING ON THE PICTURE ON THE LEFT AS YOU'RE LOOKING AT IT.

THIS IS THE CHECKPOINT IS AS AS AS PEOPLE THAT COME BACK INTO THE UNITED STATES, COME THROUGH THE CUSTOMS. THEY COME THROUGH THE CUSTOMS GATE.

AND THAT'S ONE OF OUR AGENTS STANDING THERE.

AND WE HAVE AN AGENT THAT'S UP THERE, YOU SEE, THAT'S OUR AGENT POLICE CAR THAT YOU'LL SEE UP THERE.

WE HAVE AN AGENT THAT STOPS THEM THERE.

THEY THEY DECLARE ANY ALCOHOL THAT COMES DOWN OUR OTHER, WHICH IS THE ONE ON THE RIGHT THEN, THEN OUR AGENT HERE ON THE LEFT, HE DIRECTS THEM OVER TO THE ABC BOOTH.

THIS, THIS, THIS IS EXACTLY WHAT IT LOOKS LIKE.

THIS IS THE CROSSING THERE AT LAREDO.

NEXT SLIDE. AND SO AS THE INDIVIDUAL COMES DOWN AND HAS ALCOHOL IN THEIR POSSESSION, OUR AGENT WILL MOVE THEM TO ONE OF TWO LINES.

WE HAVE ANYWHERE FROM 8 TO 9 PEOPLE ON DUTY ALL THE TIME.

THEY'RE 24 SEVEN BECAUSE OF JUST THE SHEER INCREDIBLE VOLUME OF TRAFFIC.

THEN YOU'LL SEE THE VEHICLE PULLING UP.

THAT'S OUR BOOTH THAT YOU SEE ON THE PICTURE ON THE RIGHT.

AND THEY'LL COME UP. ONE OF OUR TEAM, ONE OF OUR CEOS WILL COME OUT AND CONDUCT A BUSINESS WITH THEM NEXT.

AND THIS IS WHAT IT LOOKS LIKE.

OUR CEOS WILL MEET THEM.

WE'LL WE'LL DO KIND OF LIKE THEY DO AT CHICK FIL A.

WE'LL CATCH THREE OR FOUR VEHICLES ALL IN A LINE.

AND WE WE START PROCESSING THEM.

OUR CEOS HAVE THEIR POETICS MACHINES THAT THEY CAN PROCESS THE ALCOHOL AND THEY CAN TAKE PAYMENT RIGHT FROM THE CAR.

AND YOU SEE, THESE ARE TWO OF OUR REGULATORY COMPLIANCE OFFICERS HERE THAT ARE THAT ARE TAKING CARE OF CUSTOMERS AS THEY COME ACROSS.

NEXT. AND OF COURSE, SOME PEOPLE DON'T UNDERSTAND THE IMPORTATION LIMITS THAT YOU HAVE TO COME INTO THE STATE. AND SO HERE IS AN EXAMPLE OF EXCESSES.

THIS GUY COMES ACROSS IN THE BACK OF HIS PICKUP TRUCK AND HE'S GOT ALL THIS BEER.

AND OF COURSE, YOU CAN'T BRING IN THAT MUCH.

SO THEN THEY HAVE A CHOICE.

THEY CAN TAKE IT BACK ACROSS AND THEN TRY TO GET YOUR MONEY BACK.

AND THAT'S PROBABLY NOT GOING TO HAPPEN.

ON THE OTHER SIDE, YOU CAN SURRENDER TO US OR YOU CAN DESTROY IT YOURSELVES.

AND OF COURSE, VIRTUALLY EVERY TIME THEY SURRENDER IT TO US AND THEN WE TAKE IT, WE CATALOG IT, WE RECORD IT, AND THEN WE.

WE DESTROY IT OURSELVES.

I SAID THIS IS JUST ONE PICTURE OF SOME OF THE OVERAGES.

NEXT. HERE, AS YOU'LL YOU'LL SEE WHERE THIS AREA IS BLACKED OUT HERE. THIS IS A MINER'S ID CARD THAT WE'VE BLACKED IT OUT FOR PURPOSES OF THIS BRIEFING SO THAT WE DON'T DIVULGE THEIR INFORMATION.

BUT THESE ARE BOTTLES THAT WE CONFISCATED FROM MINERS.

THIS IS JUST TWO OF THEM.

WE HAD OVER 155 OF THEM.

BUT THIS IS THIS IS WHAT THE MINERS ATTEMPTED TO IMPORT INTO TEXAS, BECAUSE OUR PEOPLE WERE DILIGENT DOING WHAT THEY'RE SUPPOSED TO DO.

BASICALLY CHECK EVERYONE'S ID WHO LOOKED UNDER THE AGE OF 50.

WE CONFISCATED A LOT OF ALCOHOL AND PREVENTED MINERS FROM BRINGING ALCOHOL INTO THE STATE, POTENTIALLY DRIVING DRUNK AND AND CAUSING AN ISSUE AND GETTING THEMSELVES KILLED OR SOMEONE ELSE. NEXT.

HERE'S SOME MORE OVERAGES YOU SEE ON THIS PICTURE ON YOUR LEFT.

AND THEN THIS PICTURE ON YOUR RIGHT.

WE DON'T REALLY HAVE A CLUE WHAT THAT IS.

NO ONE WAS WILLING TO REALLY TEST IT.

HALF THE STUFF, WHEN YOU OPEN IT AND YOU POUR IT OUT, IT APPEARS THAT SOMETIMES IT IS STRONG ENOUGH TO PROBABLY TAKE THE PAINT OFF OF YOUR CAR.

BUT NEVERTHELESS, THIS CAME IN.

BUT WE DON'T ALLOW THAT.

WE WILL CONFISCATE THIS BOTTLE ON THE RIGHT BECAUSE IT'S NOT A FACTORY CONTAINER.

IT'S NOT LABELED PROPERLY.

AND OF COURSE IT EXCEEDS THE LIMIT ANYWAY.

[00:30:02]

SO AND WE'VE HAD ALCOHOL ATTEMPTED TO BE IMPORTED IN GAS CANS, STP BOTTLES, COKE BOTTLES, BABY FOOD BOTTLES, WATER JUGS, IF YOU CAN NAME IT, AND IF A LIQUID CAN GO INTO IT.

WE HAVE INTERCEPTED IT AT THE BORDER WHERE SOMEONE IS TRYING TO SNEAK IN SOME KIND OF ALCOHOL, HOMEMADE MESCAL, SOME KIND OF HOOCH THAT THEY'RE TRYING TO BRING INTO THE STATE NEXT. OKAY.

SO THIS THIS WAS THIS WAS AN INTERESTING CATCH HERE.

THIS JUST SHOWS YOU HOW OBSERVANT AND HOW PROFESSIONAL OUR REGULATORY COMPLIANCE OFFICERS ARE.

THIS WOUND UP BEING METHAMPHETAMINE, LIQUID METH THAT SOMEBODY HAD PACKAGED IN HERE, WRAPPED THESE CANADA DRY BOTTLES UP.

IT LOOKS SUSPICIOUS TO OUR REGULATORY COMPLIANCE OFFICER.

THEY STOPPED. AND THEN WHAT WE DO WHEN WE DETECT SOMETHING LIKE THIS OR WE SUSPECT IT, WE CALL THE CUSTOMS OFFICERS OVER THE CUSTOMS OFFICERS COME OVER, THEY TAKE IT, THEY GO, THEY TEST IT AND THEY DETAIN THE INDIVIDUAL.

AND SO, OF COURSE, THIS PASSED RIGHT THROUGH CUSTOMS. IT JUST LOOKED LIKE CANADA DRY.

BUT OUR PEOPLE SAW IT AND THOUGHT THERE WAS SOMETHING REALLY STRANGE ABOUT IT.

I'VE EVEN ASKED THEM.

I'VE SAID, YOU KNOW, WHAT DID YOU SEE? OTHER THAN THE FACT THAT THE LIQUID DIDN'T MOVE LIKE IT WAS SUPPOSED TO.

BUT THERE THEY ARE, JUST EXTRAORDINARY.

OUR PEOPLE ON THE BORDER ARE.

NEXT. THESE ARE OTHER MODELS THAT ARE COMING IN.

SOME OF YOU'VE SEEN THESE ONES ON THE LEFT HERE.

ALL THE ONES THAT HAVE THE SCORPIONS AND THE SNAKES AND THE OTHER DESERT REPTILE TYPE ANIMALS IN THEM THAT WE DO NOT ALLOW TO COME INTO THE STATE.

AND THEY COME IN EVERY BOTTLE, CONFIGURATION AND SIZE, AS YOU CAN SEE.

AND SO WE CONFISCATE THESE AND WE AND WE DESTROY THEM.

YOU SEE, THE ONE ON THE RIGHT IS IS JUST AN OVERAGE OF ALCOHOL THAT CAME INTO THE STATE.

AND THEY HAD YOU CAN SEE THIS THIS BAG THAT'S HERE TO THE RIGHT, WHICH WOULD LOOK LIKE IT HAD FOOD AND BREAD IN IT THAT WAS TRYING TO COVER IT UP TO TRY TO TRY TO CONCEAL IT, BECAUSE THEY KNOW THERE'S A LIMIT AND THEY STILL TRY TO TRY TO GET IT THROUGH.

BUT OUR PEOPLE CATCH IT 99% OF THE TIME.

NEXT SLIDE, PLEASE.

HERE'S SOME MORE OVERAGES.

AND THIS IS AT THE BUS LOT.

THIS IS WHEN THE BUSSES COME THROUGH AND WE HAVE A LOT OF PEDESTRIAN TRAFFIC, THEN THROUGH THE BUS SLOT.

THEY COME THROUGH, THEY OFFLOAD A BUS.

THEN THEY'LL GO OUT ON THE OTHER SIDE AND THEN THEY REBOARD THE BUS AFTER THEY GO THROUGH CUSTOMS AND THEN THEY COME THROUGH US AND WE FIND THIS IN THEIR LUGGAGE AND EVERYWHERE ELSE. THIS IS ALSO SOME ALCOHOL THAT WE CONFISCATED FROM A MINOR AS WELL.

NOW THIS PICTURE ON THE RIGHT OF THIS TRUCK.

THIS IS PRETTY INTERESTING, ACTUALLY.

YOU SEE THE ALCOHOL THAT'S IN THE PICTURE OUT IN FRONT OF THE TRUCK.

THE TRUCK CAME UP. THE CUSTOMS OFFICERS NOTICED THE ALCOHOL IN THE BACK.

THEY NOW KNOW BECAUSE THEY WORK WITH US EVERY SINGLE DAY, THEY PRETTY MUCH KNOW THE IMPORTATION LIMITS, ALTHOUGH THEY DON'T ENFORCE THEM.

BUT THEY TELL OUR ARCOS WE GO OVER, WE LOOK AT THE AMOUNT, WE TAKE IT OUT, WE CONFISCATE WHAT THE OVERAGE IS, WHAT THE EXCESS AMOUNT IS. AND THEN THEY WE ALLOW THE CUSTOMER TO KEEP WHATEVER HE WANTS TO KEEP, AND THEN HE HAS TO PAY THE TAX ON IT AS LONG AS IT'S WITHIN THE LEGAL LIMIT.

BUT THIS THIS HE COULDN'T KEEP.

AND SO AS WE WERE LOOKING AT IT, WE NOTICED THAT THIS PARTICULAR CUSTOMER WAS ACTING A LITTLE SUSPICIOUS.

HE WAS VERY NERVOUS.

AND SO WE THEN ATTEMPTED AND AND AND CUSTOMS ALONG WITH US STARTED SEARCHING HIS VEHICLE.

SO GO TO THE NEXT SLIDE.

AND SO THIS IS THIS IS HIS VEHICLE.

HIS VEHICLE. AND YOU CAN SEE THERE ARE THE CUSTOMS OFFICERS TO THE RIGHT.

THERE ARE AGENTS THERE RIGHT BEHIND.

SO AS OUR RCO, IF YOU'LL LOOK IN THE LOWER LEFT HAND PORTION OF THE DASH AND THE GRILLE THAT YOU'RE LOOKING AT RIGHT NEXT TO THE RIGHT FRONT HEADLIGHT, THAT'S A BAG STUCK DOWN IN THERE WHERE HE WAS ATTEMPTING TO SNEAK IN ALCOHOL AND THE GRILLE OF THE VEHICLE.

AND SO GO TO THE NEXT SLIDE.

AND THEN WE LOOK DOWN INTO THE HOOD AND YOU CAN SEE ON THE LEFT THERE, ALL THE WAY IN THE BACK, YOU SEE THAT STRING.

HE HAD ANOTHER BOTTLE JAMB DOWN, DOWN DEEP INSIDE THE WHEEL WELL OF THE VEHICLE THAT WE WE CAUGHT DOWN IN THERE.

AND WE DON'T KNOW WHAT THIS WAS, IF IT WAS IT WAS METH OR IF IT WAS ILLEGAL NARCOTICS OR METHAMPHETAMINE, BECAUSE WE GAVE IT TO THE CUSTOMS PEOPLE. THEY TESTED IT.

AND I DON'T KNOW WHAT THE FINAL RESULT WAS.

NEXT SLIDE. AND THEN ON THE SAME TRUCK.

[00:35:08]

IF YOU LOOK DOWN IN THE HOOD, YOU'LL SEE THAT WHITE BAG SITTING THERE RIGHT BEHIND THE AIR MANIFOLD.

AND THEN RIGHT TO THE RIGHT OF IT IS A BLACK PLASTIC BAG THAT ALSO HAS ILLEGAL AND ILLICIT ALCOHOL.

AND WE SENT IT OUT TO BE TESTED BECAUSE HERE'S THE BOTTOM LINE.

IF YOU ARE GOING TO TRY TO SNEAK IN ALCOHOL, YOU JUST PUT IT IN THE BACK OF YOUR TRUCK.

YOU WOULDN'T GO TO THIS TO THIS LEVEL OF EFFORT.

SO THE CUSTOMS PEOPLE SUSPECT THAT THIS WAS ILLEGAL NARCOTICS OR LIQUID METH OR SOMETHING.

AND THERE'S ALSO THE GRILLE.

YOU CAN SEE THE ONE THERE ON THE PICTURE ON THE RIGHT.

THAT'S A LITTLE BIT CLOSER PICTURE OF THE ONE WHERE HE HAD IT STASHED DOWN IN THE GRILLE.

AND THIS IS WHAT OUR REGULATORY COMPLIANCE OFFICERS FOUND AND FIND EVERY DAY ON THE BORDER.

NEXT PICTURE, NEXT SLIDE.

MR.. SO THE TEN YEAR ROLL UP FOR PO, JUST TO GIVE YOU AN IDEA AS TO WHERE WE ARE FROM 12 TO 2022.

WE HAVE CONFISCATED OVER 240,000 OR 236,000 ILLICIT CONTAINERS.

WE'VE STOPPED 8470 MINORS FROM COMING INTO THE TO THE STATE OF TEXAS WITH ILLEGAL ALCOHOL.

AND THE SURGE IN 21 AND 22.

JUST THIS PAST YEAR, WE'VE HAD A HUGE SURGE AND MINOR DISALLOWANCE.

AND THAT'S BECAUSE THE BORDER JUST REOPENED AFTER IT WAS CLOSED FOR ABOUT 18 MONTHS.

THE STUDENTS ARE NOT IN SCHOOL.

AND THERE'S BEEN WE HAVE A REAL INCREASED EMPHASIS BY PO ON CARTING EVERYONE.

AND IT'S NOT THAT WE CAN'T REALLY TELL, IT'S JUST THE FACT THAT FOR SOME REASON OR ANOTHER, THE IMPORTATION BY MINORS HAS INCREASED MARKEDLY.

RIGHT. NEXT SLIDE.

SO BEFORE WE GO TO QUESTIONS, AS I CONCLUDE, I WANT TO MENTION THAT THAT OF THE THREE OPERATIONAL DIVISIONS THAT I HAVE UNDER MY PURVIEW, WHICH IS A LICENSING TAX AND MARKETING AND THE PORT OF ENTRY OF THESE 220 EMPLOYEES, THEY'VE DONE AN ABSOLUTELY SUPERLATIVE JOB DURING THE PAST TWO YEARS ON THIS SHUTDOWN AND EVERYTHING THAT'S BEEN GOING ON, WHICH HAS BEEN EXTRAORDINARILY TRYING, AS WE ALL KNOW.

BUT SPECIFICALLY, I'D LIKE TO POINT OUT THAT WHILE A LARGE PERCENTAGE OF OUR AGENCY AND THE REST OF THE STATE WERE SHUT DOWN AND WORKING FROM HOME AS THEY WERE SUPPOSED TO AND AS THEY WERE DIRECTED TO OUR REGULATORY COMPLIANCE OFFICERS IN THE PORT OF ENTRY DIVISION, THEY WERE AT THEIR POST DAY AND NIGHT, 24 HOURS A DAY WITHOUT FAIL BECAUSE THEY CAN'T DO THEIR JOBS FROM HOME.

AS YOU SAW IN THOSE PICTURES, THEY HAVE TO BE ON THEIR POST AND THEY THEY WERE DILIGENT ABOUT THAT TO THE NTH DEGREE.

AND SO I JUST WANT TO SAY THAT THEY DEMONSTRATED SPARTAN LIKE DEDICATION TO THEIR JOBS.

AND THEY'RE TRULY UNSUNG HEROES, IN MY JUDGMENT.

NOW, THE VERY QUESTIONS, I'LL TAKE THE QUESTIONS.

AND THAT CONCLUDES MY BRIEFING.

THANK YOU, CARL. COMMENTS.

WRITE DOWN. COMMISSIONER MORENO.

COLONEL, THANK YOU VERY MUCH FOR THE DETAILED INFORMATION.

I HAD A QUICK QUESTION FOR YOU.

WHEN YOU ENCOUNTER AN INDIVIDUAL THAT IS BRINGING LIQUID METH INTO THE COUNTRY.

LAW ENFORCEMENT IS WORKING WITH BORDER SECURITY AND ALL OF THAT.

WHAT ARE WHAT ARE THE ARREST RATES OR WHAT ARE THE IMPLICATIONS OF WE IDENTIFY IT AND ITS ILLEGAL ACTIVITY. WHAT'S THAT NEXT STEP? WHAT HAPPENS TO THE INDIVIDUAL? WHAT HAPPENS TO THE MINOR THAT'S TRYING TO BRING ILLEGAL STUFF INTO OUR COUNTRY? WHAT HAPPENS TO PEOPLE THAT CLEARLY KNOW THAT THEY'RE BREAKING THE LAW BY BRINGING MORE CONTAINERS THAN THEY SHOULD OR TAINTED CONTAINERS? REALLY? KIND OF.

AND EVEN IN THAT THIRD TIER OF DRUGS INTO THE COUNTRY.

CAN YOU ELABORATE ON THAT A LITTLE BIT? YES, MA'AM, I CAN.

THE TAKING THAT KIND OF AN INVERSE ORDER HERE.

WHEN A MINOR COMES ACROSS OR SOMEONE COMES ACROSS WITH EXCESS, THEY JUST HAVE MORE ALCOHOL THAN THE LAW ALLOWS THEM TO BRING IN.

WE JUST WE CONFISCATE IT FROM THEM AND WE TELL THEM YOU CAN DESTROY IT OR WE CAN DESTROY IT, OR THEY CAN TAKE IT BACK ACROSS AND THEY CAN TRY TO GET THEIR MONEY BACK SO THEY'RE NOT ARRESTED.

THERE'S NO LEGAL IMPLICATIONS.

THERE'S NOTHING STATUTORY THAT WE DO AGAINST THEM, NOTHING PUNITIVE.

WE JUST CONFISCATE THE ALCOHOL.

THEY GET TO KEEP WHATEVER THEY'RE ALLOWED TO IMPORT AND THEY HAVE TO PAY TAXES ON IT.

AS FAR AS MINORS GO, WHEN THE MINORS COME ACROSS, WE DO THE SAME THING.

WE JUST TELL THEM YOU CAN'T BRING IT IN YOUR YOU'RE BELOW THE AGE OF 21.

WE TAKE IT FROM THEM AND WE DON'T GIVE THEM THE OPTION OF DESTROYING IT BECAUSE WE WERE ALL 19 MONTHS.

[00:40:06]

AND SO WE TAKE IT, WE DESTROY THE ALCOHOL.

OR IF THEY DO WANT TO TAKE IT AND GO BACK ACROSS, WE'LL ALLOW THEM TO DO THAT.

IN REGARDS TO THE NARCOTICS, THE LIQUID METH, THE OXYCODONE AND THE FENTANYL.

THINGS LIKE THIS THAT WE FIND AS SOON AS WE DETECT THAT IF WE HAVE AN AGENT ON THE SCENE, A TBC AGENT, WE BRING THEM IN BECAUSE THEY'RE A LAW ENFORCEMENT OFFICER. BUT FOR THE MOST PART, OTHER THAN JUST A FEW DAYS DURING PERSONAL SEASON, WE DON'T HAVE AGENTS DOWN THERE.

SO WHAT WE DO IS WE WE REPORT IT TO THE CUSTOMS OFFICERS.

UNITED STATES CUSTOMS OFFICER WILL COME OVER, THEY'LL LOOK AT IT.

THEY USUALLY CONFISCATE IT.

THEY TAKE THE INDIVIDUAL BACK INTO THEIR AREA.

THEY CAN FIND THEM IN THEIR AREA AND THEY HOLD THEM THERE UNTIL THEY TEST THE THE PRODUCT, IF WHATEVER IT IS, TEST AND TEST POSITIVE.

AND SOMETIMES WE'RE WE KNOW FOR A FACT THIS IS THIS IS METHAMPHETAMINE, LIQUID METH.

WE GO IN THERE AND THEY TEST IT AND IT'S NOT OTHER TIMES IT LOOKS VERY, VERY INNOCENT, LIKE IN THOSE BOTTLES OF CANADA, DRY GINGER, ALL YOU SAW.

AND IT TURNS OUT TO BE METHAMPHETAMINE.

SO WHAT HAPPENS IS THE CUSTOMS PEOPLE TAKE THAT THEN IMPORTATION OF DRUGS IS IN FACT A FEDERAL OFFENSE.

AND SO THEY DO THE PROSECUTION AND THEY TAKE CARE OF IT FROM THERE.

AS FAR AS THE STATS GO.

WE CAN WORK THAT UP AS TO HOW MANY WE INTERCEPT, BUT WE WE INTERCEPT A SIGNIFICANT AMOUNT OF NARCOTICS, LIKE I SAID, METH, FENTANYL, OXYCODONE THAT COME ACROSS.

WHAT OUR PEOPLE WILL DO IS WHEN THEY'RE GOING THROUGH COUNTING BOTTLES, THEY'LL NOTICE BAGGIES OF PILLS AND CONTAINERS.

NOW, YOU'RE NOT GOING TO PUT A BAGGIE OF PILLS OR CONTAINERS DOWN INSIDE A PRE SHRINK WRAPPED CASE OF COKE OR BEER UNLESS THERE'S SOMETHING NEFARIOUS GOING ON.

SO OUR CUSTOMS OFFICERS ARE OUR REGULATORY COMPLIANCE OFFICERS.

YOU'LL SEE THAT TO BRING THE CUSTOMS PEOPLE OVER, THE CUSTOMS PEOPLE TAKE POSSESSION OF IT AND THEY GO IN AND THE PROSECUTIONS UP TO THE FEDS.

DOES THAT ANSWER YOUR QUESTION? YES. THANK YOU VERY MUCH.

YEAH, I HAVE A QUESTION.

COLONEL BEAL, I WANT TO, ON BEHALF OF THE COMMISSION, THANK ALL OF THE 200 PLUS POWS WHO WORK SOMETIMES IN VERY DIFFICULT CONDITIONS AROUND THE CLOCK, ESPECIALLY DURING KITSILANO.

BUT JUST TO REMIND PEOPLE.

DURING THE LAST SUNSET COMMISSION, THERE WAS SOME CONCERN THAT WE DIDN'T NEED THESE.

WHAT I CONSIDER DILIGENT AND BRAVE EMPLOYEES ON THE BORDER.

THERE WAS AN EFFORT TO DO AWAY WITH OUR ISSUES AND FORTUNATELY FOR THE LEGISLATORS THAT WORKED WITH US THAT LIVE THERE TO DEAL WITH THIS EVERY DAY, THEY SAID, WAIT A MINUTE. WE NEED MORE BOOTS ON THE GROUND.

AND IF YOU THINK ABOUT 236,000 CONFISCATIONS OF ILLEGAL CONTAINERS OVER THE LAST DECADE, THAT'S A HUGE PUBLIC SAFETY BENEFIT.

THINK ABOUT WHERE THOSE MIGHT HAVE ENDED UP.

THINK ABOUT THE CHILDREN THAT MIGHT HAVE DIED BECAUSE OF THIS OR THE MINORS IN POSSESSION.

SO THERE'S AN ABSOLUTE THE TERM FORCE MULTIPLIER OF OUR POWS ON THE BORDER EVERY DAY DOING THE PUBLIC SAFETY TO PROTECT CITIZENS OF TEXAS.

AND I THINK THEY'RE GREAT UNSUNG HEROES OF THIS AGENCY.

SO, COLONEL BEAL, PLEASE, PLEASE CONVEY TO ALL OF THEM ON BEHALF OF THIS COMMISSION HOW GRATEFUL WE ARE FOR THEIR HARD WORK, ESPECIALLY DURING PASAR SEASON.

YES, SIR, WE WILL. THANK YOU.

ALL RIGHT. THE NEXT AGENDA ITEM IS FY 21 NON FINANCIAL REPORT SUMMARY WITH DIRECTOR MEO.

MA'AM, WELCOME.

THANK YOU. GOOD MORNING, CHAIRMAN.

COMMISSIONERS, FOR THE RECORD, MY NAME IS VANESSA MAYO, AND I SERVE AS THE CFO FOR THE AGENCY.

TODAY, I WILL PRESENT A BRIEF SUMMARY OF THE ANNUAL REPORT OF NON FINANCIAL DATA.

THIS IS AN ANNUAL REPORT THAT WE DO EVERY DECEMBER.

SO THIS IS IN CONJUNCTION WITH OUR ANNUAL FINANCIAL REPORT THAT IS DUE IN NOVEMBER.

NEXT SLIDE, PLEASE.

THIS REPORT CURRENTLY INCLUDES SOME NONFINANCIAL SCHEDULES THAT WERE PREVIOUSLY REQUIRED IN THE ANNUAL FINANCIAL REPORT.

SOME OF THE LARGER SCHEDULES THAT ARE SEEN HERE ARE THE HUB OR THE UNUTILIZED BUSINESS PLAN.

THE LISTING OF OUR PROFESSIONAL FEES FOR THE FISCAL YEAR, A LISTING OF OFFICES THAT WE OCCUPY AND A SCHEDULE INCLUDING VEHICLE PURCHASES FOR THE YEAR.

SO AGAIN, THIS IS REQUIRED BY THE GOVERNMENT CODE.

THE SECTION IS LISTED HERE AND IS DUE TO 31ST OF EACH YEAR.

OUR HUB IS ESSENTIALLY OUR HUB SCHEDULE OR HUB PLAN SHOWS OUR GOALS AND ACTUAL RESULTS.

THIS INCLUDES ANY TYPE OF CONSTRUCTION SERVICES OR COMMODITIES THAT ARE PURCHASED FROM AN ASSORTMENT OF UTILIZED BUSINESSES, MINORITY OWNED AND VETERAN OWNED.

A PROFESSIONAL FEE SCHEDULE INCLUDES THINGS SUCH AS CONSULTING, LEGAL, OTHER MISCELLANEOUS FEES.

[00:45:02]

HERE WOULD BE OUR INTERNAL AUDIT CONTRACT WITH LISTED.

ANY MEDIATION SERVICES OR EMPLOYEE ASSISTANCE PROGRAM THAT WE HAVE IS ALSO LISTED IN THIS SCHEDULE.

SPACE OCCUPIED AND OFFICE PLANETARY.

THOSE ARE OUR LEASES THROUGHOUT THE STATE.

FOR SUMMARY, WE HAVE 42 PAID LEASES, 13 FREE SPACES, TWO STATE SPACES, AND 16 FEDERAL SPACES WHERE WE RENT FROM GSA. MOST OF THOSE OBVIOUSLY ARE ALONG THE BORDER WHERE WE RENT GSA BOOTHS FOR PORTS OF ENTRY OR VEHICLE PURCHASES.

THAT WAS AN EASY ONE. THAT WAS ZERO.

WE SPENT NO MONEY ON VEHICLES DUE TO A 5% CUT.

UNFORTUNATELY, WE HAD TO CUT OUR VEHICLE SPENDING.

NEXT SLIDE, PLEASE. THE ADDENDUM PORTION INCLUDES SOME AGENCY SPECIFIC INFORMATION.

THE INSTRUCTIONS PROVIDED HERE ARE SOMEWHAT VAGUE.

EVERY AGENCY HAS THE OPPORTUNITY TO SHOWCASE THE THINGS THAT MAKE THEM UNIQUE.

SO WITH THE ADDITION OF OUR EXCEPTION OF OUR ORGANIZATION CHARTS, WHICH ARE UNIQUE TO US, SOME OF THE COOL THINGS THAT WE TALK ABOUT ARE WET, DRY STATUS.

WHEN YOU PRESENT THE MAP AND ALL THE LOCAL ELECTIONS.

OUR INVENTORY OF CONFISCATED ALCOHOLIC BEVERAGES AND ENFORCEMENT SEIZES AND THEN OUR STATEMENT OF REVENUE COLLECTION.

SO A HANDFUL OF THINGS THAT MAKE TVC UNIQUE AS A STATE AGENCY.

NEXT SLIDE, PLEASE.

SO THIS MAY BE DIFFICULT TO SEE AS IT SHOWCASES ALL OF OUR COUNTIES, BUT IT IS A COOL THING.

THE 17 YEARS THAT I'VE WORKED WITH THE AGENCY, THIS HAS GOTTEN MORE AND MORE COLORFUL.

IT WAS A LOT MORE WHITE IN THE NORTHERN PART.

SO AS TIME GOES ON, WE'RE GETTING MORE AND MORE LOCAL ELECTIONS THAT ARE MOVING TO WET OR DAMP STATUS COUNTIES, AS WE CALL THEM.

I WILL NOTE THAT THERE ARE ONLY FIVE COUNTIES REMAINING THAT ARE ENTIRELY DRY IN THE STATE OF TEXAS, AND WE HAVE ONE COUNTY WHERE ONLY 4% BEER IS LEGAL.

SO THAT'S GOING TO BE A UNIQUE THING.

MOST OF THE DARK GREEN AND LIGHT GREEN AREAS, THEY HAVE SOME SORT OF ALCOHOL BEVERAGES ILLEGAL FOR SALE IN THOSE AREAS.

NEXT SLIDE, PLEASE.

THIS SLIDE SHOWS A SUMMARY OF CONFISCATED ALCOHOLIC BEVERAGES.

THESE INCLUDE DISTILLED SPIRITS, WINE, BEER, LIQUOR.

THESE ARE DONE BY REGION.

SO THESE ARE ITEMS THAT ARE SEIZED BY OUR ENFORCEMENT STAFF IN CONJUNCTION WITH A CRIMINAL OR ADMINISTRATIVE CASE.

THIS ISN'T SOME OF THE COOL STUFF THAT WE GET FROM PEYOTE WITH THE SCORPIONS IN IT.

THIS IS JUST REGULAR THINGS FROM LEXUS LOCATIONS OR UNLICENSED LOCATIONS AND ENFORCEMENT WHERE A CITY IS INVESTIGATING.

SO THAT'S WHERE THESE COME FROM.

OBVIOUSLY, OUR NUMBERS ARE A LOT SMALLER HERE.

OUR TOTAL FOR THE YEAR WE HAD 5510 ITEMS. THE MAJORITY WIN BEER OR BRANDY WOULD BE ABLE TO SPEAK TO WHAT TYPE OF CASES WOULD LEAD TO THIS.

BUT TRADITIONALLY, THERE'S A COMMITTEE THAT'S ALREADY BEING INVESTIGATED AND THERE'S SOME ILLICIT BEVERAGES THAT ARE SEIZED BY OUR ENFORCEMENT STAFF.

I'M LOOKING AT THE OUTLIER AUSTIN AS COMPARED TO HOUSTON.

CAN YOU. EXPLAIN HOW HOUSTON, WITH SUCH A LARGE POPULATION, WE JUST DON'T DRINK.

I DOUBT THAT YOU'RE JUST GOING TO SAY I'M NOT LIVING IN HOUSTON BEFORE.

I WOULD DOUBT THAT. MORE THAN LIKELY, IT WAS PROBABLY ONE BIG CASE THAT RESULTED IN A LARGER SEIZURE IN THAT AREA.

WE COULD RESEARCH IT, AND I'LL GO WITH CHIEF NORRIS AND SEE IF WE CAN GET YOU SPECIFICS ON THAT.

BUT FROM MY EXPERIENCE IN THE FIELD, I WOULD VENTURE TO SAY THAT THAT WAS ONE CASE THAT RESULTED IN A LARGER SEIZURE THAT WOULD INFLATE THOSE NUMBERS FOR THAT AREA.

AND I MEAN, THE BEER IS REALLY HIGH.

THERE'S SOME DECENT SPIRITS ALSO, BUT THE BEER IS REALLY HIGH.

SO THAT MIGHT BE AS A RESULT OF JUST ONE ONE CASE.

SO ONE ISSUE, BUT WE CAN GET YOU.

THANKS. ANY OTHER QUESTIONS ON THE CONSTITUTION? CAN YOU JUST FOR EVERYONE'S EDIFICATION, I THINK YOU SAID IT EARLIER.

I MAY HAVE MISSED IT. PARTIALLY WET VERSUS WET.

DEFINE PARTIALLY WHAT WOULD BE IF MIX OF BEVERAGES WITH A RESTAURANT ARE LEGAL, BUT NO OTHER BARS ARE LEGAL IN THAT AREA.

SO BECAUSE IT'S A LEGAL OPTION ELECTION, THE LOCAL MUNICIPALITY VOTES AND WHAT THEY PREFER.

SO IF AN AREA IS COMPLETELY DRY, THEY WE DON'T WANT A BAR IN THEIR AREA, BUT THEY MIGHT BE OKAY WITH THE CHILI'S COMING IN BECAUSE IT'S A RESTAURANT.

AND SO THEY WOULD VOTE THAT IN OR THEY MAY ONLY WANT TO GO, BUT NO ON PREMISE.

SO THERE'S ALL KINDS OF VARIATIONS OF HOW THESE ARE VOTED IN, BUT IT'S DONE BY THE LOCAL CONSTITUENCY.

SO IT JUST DEPENDS.

AGAIN, THERE'S ONLY THE FIVE THAT ARE COMPLETELY DRY WHERE YOU HAVE TO GO, YOUR COUNTY IF YOU LIKE TO GO, BUT THE REST OF THEM ARE WHAT WE CALL DAMP COUNTIES OR THEY'RE NOT FULLY LEGAL FOR ALL PERMITS AND LICENSES IN THEIR AREA.

IT'S A HYBRID OR COMBINATION OF DIFFERENT THINGS.

I HAVE A LONG LIST OF THOSE.

AND THEN THE OTHER QUESTION, ALL THE DISTILLED SPIRITS THAT WE MAY NOT KNOW THE ANSWER TO.

SO THE 839 DISTILLED SPIRITS THAT WERE CONFISCATED OR ANY OF THEM, WHAT WE WOULD CONSIDER BOOTLEG MEN FOR ILLEGALLY MANUFACTURED ALCOHOL, THAT COULD BE INCLUDED IN THE STEPS YOU.

I'M NOT SURE IF YOU'VE SEEN ANY STILLS IN THE LAST YEAR.

IT'S JUST UNTAGGED AND NOT PROPERLY STAMPED.

[00:50:03]

COULD HAVE BEEN BROUGHT IN ELSEWHERE.

I THINK MAJORITY OF THE TIME IT'S ILLICIT, IT'S SOMETHING THAT'S EXPIRED, HAS BUGS IN IT OR SOMETHING OF THAT NATURE, OR WAS PURCHASED ILLEGALLY OR DONE THROUGH THE PROPER CHANNELS AND THEN IT'S SEIZED.

SO THOSE ARE SOME OF THE EXAMPLES THAT I CAN THINK OF.

ALL RIGHT. NEXT SLIDE, PLEASE.

AND THEN THE LAST AGENDA THAT WE INCLUDED AS PART OF OUR NON FINANCIAL REPORT AGAIN ON ACCESSIBILITY IS OUR REVENUE COLLECTIONS.

HERE WE HAVE A DIVIDED UP BY LICENSE TYPE CONFISCATED LIQUOR SALES, MISCELLANEOUS.

AND THEN OUR TOTAL AND THEN OUR CIGARET TAX IS SEEN AS KIND OF ITS OWN LINE ITEM HERE BECAUSE CIGARET TAX WE DO COLLECT FROM CONTROL ALONG THE BORDER OR PORTS OF ENTRY TO COLLECT THE CIGARET TAX ON BEHALF OF THE CONTROLLER.

SO THAT'S MONEY THAT WE DEPOSIT, BUT IT GOES STRAIGHT INTO A CONTROLLER ACCOUNT.

IT DOESN'T COME TO OUR COFFERS AT ALL WHERE OUR FUNDING THAT WE THE REST OF THE ITEMS, WE BRING IT IN AND THEN WE MOVE IT OR IT TAX GOES STRAIGHT TO THE CONTROLLER.

THAT IS IN PART AS PART OF AN INTERVIEW WITH THE CONTROLLER SYSTEM.

STATISTICALLY, THAT'S BEEN GOING DOWN EVERY YEAR, LESS TRAFFIC ON THE BORDER AND I THINK LESS PEOPLE SMOKING.

THE CIGARET TAX HAS GONE DOWN EVERY YEAR, BUT OVERALL THESE ARE REVENUE TYPES.

I WANT TO POINT OUT ON THE MISCELLANEOUS THAT INCLUDES FINES, ADMINISTRATIVE FEES, LABELS AND BOND FORFEITURES FOR ANY ADMINISTRATIVE CASES WE FILE IN ANY INSURANCE SETTLEMENTS FOR MAYBE VEHICLE ACCIDENTS OR IN LEGAL SETTLEMENTS FEES FOR OPEN RECORDS REQUESTS WHERE WE COLLECT SOME OF THESE CENTS PER PAGE, THINGS LIKE THAT.

THAT'S ALL KIND OF RUN INTO THAT MISCELLANEOUS.

BUT BIG PORTION OF MISCELLANEOUS IS THE FEES I'M SORRY, THE FINES AND BOND FORFEITURES.

SO THOSE DECLINED A BIT BECAUSE IN 2020 TO 2021.

SO THAT'S WHERE YOU SEE A LITTLE BIT OF A DECLINE THERE IN THE TOTAL MISCELLANEOUS SECTION.

THAT CONCLUDES MY PRESENTATION ON YOUR QUESTIONS.

GO AHEAD. SURE. THIS IS ALL GENERAL REVENUE.

WE DON'T HOLD ANY OF THESE FUNDS.

YES, THEY ARE. IT'S ALL GENERAL REVENUE.

THE 2020 2021 LICENSE AND PERMIT FEES DOES NOT INCLUDE THE CHANGES THAT WE'VE MADE TO LICENSE FEES. SO THIS IS ALL SCALE AS WELL, BECAUSE IT'S STRANGE.

OUR REPORT IS FOR AUGUST, BUT I DON'T SUBMIT IT UNTIL DECEMBER.

SO THE DATA DOES SEEM STALE.

BUT IT IS FOR THE F Y 21 FOR THE.

YOUR REPORT WILL BE INTERESTING TO LOOK AT BECAUSE IT WILL SHOW THE CLASS CONSOLIDATED FEES AND IT WILL ONLY BE ONE YEAR.

SO THE TWO YEAR PERMIT.

IT WILL BE INTERESTING TO SEE THE REPORT RESUBMIT NEXT YEAR.

THANK YOU. IN HIS QUESTIONS.

THAT'S RIGHT. THANK YOU. THANK YOU.

THE NEXT AGENDA ITEM IS ENFORCEMENT, SPRING BREAK OPERATIONS.

CHIEF NORRIS, WELCOME BACK TO BREAKING OUR SECRET LAW ENFORCEMENT.

SO IT IS A LITTLE BIT ABOUT THE SPRING BREAK OPERATIONS THAT ARE COMING UP IN THE SPRING BREAK RIGHT AROUND THE CORNER.

LIKE. SO SPRING BREAK 2020, 20, 2022.

WE HAVE TENS OF THOUSANDS OF HIGH SCHOOL AND COLLEGE STUDENTS WHO WILL CONVERGE ON OUR ENTERTAINMENT DISTRICTS AND OUR BEACHES TO TAKE THEIR SPRING BREAKS, BOTH IN-STATE AND OUT-OF-STATE COME IN OR PLAN FOR EACH REGION THAT WILL.

WE WILL UTILIZE GRANT FUNDS TO PAY FOR THE OVERTIME WE'RE GOING TO BE PAYING OVER TIME FOR AGENTS TO GO DOWN AND DO ALL OF THIS.

WE ARE ALSO GOING TO BE ABLE TO UTILIZE A NEW SOFTWARE THAT WE PURCHASE THAT'S GOING TO HELP VERIFY IDS OR VERIFY FAKE NEWS, AS THE CASE MAY BE.

IF YOU HAVEN'T SEEN ANY OF THE FAKE IDS THAT ARE OUT THERE THESE DAYS, THEY ARE VERY, VERY GOOD.

AND SO WE'RE HAVING TO UP OUR GAME A LITTLE BIT AND WE'VE PURCHASED SOME SOFTWARE TO BE ABLE TO SWIPE ON THE TO CONFIRM WHETHER OR NOT THEY'RE IDS OR NOT.

NEXT SLIDE. SO THE THING TO KNOW IS ALL REGIONS ARE GOING TO BE DOING UNDERAGE COMPLIANCE OFFICE.

THEY'RE GOING TO BE DOING UNDERCOVER OPS, ALL OF THEM FOCUSING ON THE BORDER DISTRICTS IN THEIR AREAS, WHEREVER THAT MAY BE.

WE'RE ALSO GOING TO BE FOCUSING ON THE SCHOOLS THAT ARE AROUND THEIR AREAS.

WE DO HAVE SOME REGIONS WHO HAVE SOME UNIQUE CHALLENGES, AS YOU CAN IMAGINE, REGION FIVE OR SECONDARY, AND IT IS GOING TO BE UNIQUE.

AND SO I'M GOING TO TALK ABOUT SOME OF THOSE UNIQUE CHALLENGES AND WHAT WE'RE DOING TO ADDRESS THOSE.

NEXT SLIDE. REGION THREE HAS THE HOUSTON LIVESTOCK SHOW AND RODEO THAT RUNS FROM FEBRUARY 28TH THROUGH MARCH 20TH. WHILE THAT'S NOT NECESSARILY SPRING BREAK RELATED, IT IS A TIME WHEN THE KIDS ARE OUT OF SCHOOL, AND SO IT DRAWS LARGE CROWDS.

WE DID MEET WITH THE FOLKS FROM HOUSTON LIVESTOCK SHOW AND RODEO LAST WEEK, AND THEY ARE GOING FULL SPEED AHEAD.

THEY ARE PLANNING FULL CROWDS AND HOPING HOPEFUL THAT IT WILL BE BUSY AND LOTS OF GOODS COMING IN.

[00:55:07]

SO WE ARE GOING TO BE DOING SOME UPS THERE.

REGION THREE IS ALSO HAS GALVESTON ISLAND, BUT THEY HAVE TO FOCUS ON SO THOSE UNDERAGE COMPLIANCE OFFICERS, UNDERCOVER OPS, STAKEOUT OPS, WHICH ARE WHERE AGENTS GO IN WITH LOCATIONS AND WORK THE DOOR TO TRY TO CATCH THE FAKE IDS THAT ARE COMING IN.

SO WE'RE GOING TO BE DOING ALL OF THAT IN REGION FOUR, WHICH IS AUSTIN HAS SOUTH BY SOUTHWEST THAT RUNS MARCH 17 THROUGH 19.

AGAIN, NOT NECESSARILY SPRING BREAK OR LATER, BUT IT ALL FALLS RIGHT IN THE SAME TIME.

AND SO BECAUSE OF THAT, WE'RE ADDRESSING EACH OF THESE.

NEXT SLIDE. AND THEN WE HAVE REGION FIVE, WHICH IS WHERE SOUTH PADRE ISLAND.

SO THIS IS A PICTURE THAT WAS TAKEN LAST YEAR.

IT'S GOOD TO KNOW HE DID HAVE TWO CASES OF WATER.

WE'RE GLAD TO KNOW THAT HE'S THINKING HEALTH WISE, RIGHT? THAT'S RIGHT. HYDRATION IS IMPORTANT.

SO WE ARE GOING TO BE WORKING WITH PARKS AND WILDLIFE ON THE BEACHES DURING SPRING BREAK.

THOSE WEEKS, WE'LL ALSO BE CONDUCTING UNDERCOVER OPS, INCLUDING COPS AND SHOPS, STAKEOUTS, AGAIN, LOOKING FOR THE FAKE IDS.

UNDERCOVER TEAMS ARE GOING TO BE INSIDE AS WELL AS CONDUCTING OPERATIONS.

AND ONE THING THAT ALL REGIONS ARE GOING TO CHECK ON, BUT IF WE REALISTICALLY THINK IT'S GOING TO HAPPEN, WE THINK IT'S PROBABLY GOING TO HAPPEN DOWN IN SOUTH PADRE, WHICH IS THE 24 SEVEN HOTEL OPS.

AND YOU'LL KNOW WE HAVE A NEW LAW THAT ALLOWS HOTELS TO SERVE 24 SEVEN TO THEIR REGISTERED GUESTS.

AND ALL REGIONS WILL CHECK IT, WE FIGURE SOUTH PADRE AND MAYBE WHERE IT ACTUALLY OCCURS.

IF THAT IS OCCURRING, WE'RE GOING TO BE RUNNING UNDERCOVER OPS IN THOSE AS WELL TO CONFIRM THAT THEY ARE ONLY SELLING TO REGISTERED GUESTS.

AND NEXT SLIDE.

DO WE ALWAYS WHEN WE DO THESE OPERATIONS, WE'RE ALWAYS DOING IT IN CONJUNCTION WITH LOCAL LAW ENFORCEMENT IN THE AREA, OR DO WE INDIVIDUALLY GO OUT AND DO THESE WITHOUT TOUCHING BASE? MOST OF THE TIME WE ARE GOING OUT AND CREATING OUR OWN OPS AND DOING OUR OWN PADRES BECAUSE IT'S SO MASSIVE.

WE WORK WITH PARKS AND WILDLIFE, WE WORK WITH SOUTH PADRE ISLAND, SOUTH PADRE ISLAND, AND ALSO BRINGS IN OUTSIDE AGENCIES AS WELL TO HELP.

BUT FOR THE MOST PART, WE'RE DOING NOTHING ELSE.

SAME WITH HOUSTON LIVESTOCK SHOW AND RODEO.

WE DO IT ON OUR OWN ACCORD.

THE NEW SOFTWARE, DOES IT REQUIRE A HANDHELD DEVICE TO PURCHASE AND DISTRIBUTE AS WELL? SO THERE IS A LIMIT TO THOSE THAT WE HAVE, OR IT IS WITH THE AGENCY PURCHASING CELL PHONES FOR THE AGENTS.

WE TESTED THIS SOFTWARE MANY YEARS PASSED BEFORE WE HAD THE CELL PHONES AND THAT WAS THE BARRIER THAT WE HAD.

ALL THE AGENTS HAVE AGENCY ISSUES, CELL PHONES NOW, SO IT'S JUST AN APP THAT GOES IN THEIR PHONE AND IT COMPARES THE DRIVER'S LICENSE TO OPEN SOURCE DATA.

IT JUST WORKS THROUGH THE CELL PHONES.

YES, IT'S JUST AN APP.

OKAY. INTERESTING.

SO YOU HAVE A QUESTION AS PART OF THE OPERATIONS DOWN THERE, ARE WE ALSO LOOKING FOR POTENTIAL OR HUMAN TRAFFICKING? OH, ESPECIALLY THOSE LARGE EVENTS.

AND THAT WAS ONE THING WE ACTUALLY DIDN'T TOUCH ON WITH THE LIVESTOCK SHOW RODEO FOLKS.

AND SO, AS YOU ALL KNOW, OUR AGENTS GO THROUGH TRAINING TO KNOW THE SIGNS AND THE THINGS TO LOOK FOR.

AND SO THAT'S A THAT'S ALWAYS ON THE SURFACE.

AND IT MAY BE FOCUSING ON OPS OR COMPLIANCE OPS, BUT THAT'S ALWAYS ON THE SURFACE AND TO BE VIGILANT AND LOOKING.

ALL RIGHT. THANK YOU. OKAY, OC.

THANK YOU, MA'AM. THANK YOU.

AS YOU ALL KNOW, WE RECENTLY MODIFIED OUR PERMIT AND LICENSE FEES.

SO THE NEXT AGENDA ITEM IS DISCUSSION OF TAXI PERMIT AND LICENSE FEES.

AND COMMISSIONER BOATWRIGHT FLOOR'S YOURS, SIR.

SO, I MEAN.

YOU'RE ON MUTE. STOP, MR. BOATWRIGHT, YOUR HONOR. THERE YOU GO.

CAN YOU HEAR ME NOW? GOOD.

THANKS. THANKS, MR. CHAIRMAN.

I ASK THAT THE FEES BE PLACED ON THE AGENDA OF THIS MEETING BECAUSE I THINK WE NEED TO TAKE ANOTHER LOOK AT THEM.

WE NEED TO HAVE A DISCUSSION ABOUT THEM.

AND I THOUGHT I'D KICK THAT OFF.

WHEN WE VOTED ON FEES BACK IN AUGUST.

COMMISSIONERS WERE LED TO BELIEVE THAT THE AGENCY MIGHT NOT BE ABLE TO FUND ITS OPERATIONS IF PROJECTED REVENUE FROM FEES DIPPED BELOW THE AMOUNT WE COLLECTED FROM FEES IN A RECENT BIENNIUM, WHICH WAS ABOUT $152 MILLION.

BUT AS I SAID AT THAT TIME, THAT'S NOT CORRECT.

A BUDGET RIDER REQUIRES US TO COLLECT ENOUGH REVENUE TO COVER THE COST OF OUR APPROPRIATION, AND IT AUTHORIZES THE HLB TO INSTRUCT THE COMPTROLLER TO REDUCE OUR APPROPRIATION AUTHORITY IF WE FAIL TO COLLECT ENOUGH REVENUE TO COVER THE COST OF OUR APPROPRIATION.

[01:00:04]

NOT IF WE FAIL TO COLLECT AS MUCH REVENUE AS WE COLLECTED IN THE PAST.

THOSE TWO THINGS THE COST OF OUR APPROPRIATION ON THE ONE HAND AND PAST REVENUE ON THE OTHER ARE COMPLETELY DIFFERENT.

AND IT MATTERS.

THE COST OF OUR APPROPRIATION IS ABOUT $131 MILLION.

IT IS NOT $152 MILLION.

AND WE GENERATE ENOUGH REVENUE FROM EXCISE TAXES ALONE, AS WE SAW IN A SLIDE JUST A FEW MINUTES AGO TO COVER THE COST OF OUR APPROPRIATION MANY TIMES OVER. SO WE DON'T HAVE TO COLLECT 152 MILLION OR EVEN 131 MILLION FROM FEES.

BUT COMMISSIONERS WERE GIVEN THE MISTAKEN IMPRESSION THAT WE HAD TO COLLECT AT LEAST 152 MILLION FROM FEES OR JEOPARDIZE THE AGENCY'S OPERATIONS.

SO WE VOTED TO INCREASE FEES TO AN AMOUNT THAT WOULD GENERATE ABOUT AROUND $160 MILLION FROM FEES.

THERE WAS ABSOLUTELY NO REASON TO DO THAT.

NOW I THINK WE NEED TO FIX IT.

WE NEED TO GET THE BALL ROLLING.

I SUGGEST THAT WE ASK STAFF TO START WORKING ON A PROPOSAL TO SET FEES AND AMOUNTS THAT WOULD GENERATE $152 MILLION IN REVENUE FROM FEES AVERAGED OVER THE BIENNIUM.

THAT'S MORE THAN WE NEED TO COLLECT, BUT AT LEAST IT WOULD KEEP FEES THE SAME AS THEY WERE BEFORE, SO WE WOULDN'T BE INCREASING FEES FOR THE BIENNIUM.

WE'D BE REVENUE NEUTRAL AND THAT WOULD BE GREAT.

SO THAT'S WHAT I WANTED TO SAY.

BE HAPPY TO PARTICIPATE IN ANY DISCUSSION WITH MY FELLOW COMMISSIONERS ABOUT THAT.

AND THAT'S THAT'S IT.

ON ON THAT HALF OF IT.

I ALSO WANTED TO TALK ABOUT A STATUTE THAT THAT APPLIES TO US, THAT THAT DOES REQUIRE US TO DO SOME SOME SOME IMPORTANT AND DIFFICULT THINGS ON FEES. IT'S A STATUTE THAT I MENTIONED AT THE LAST MEETING, GOVERNMENT CODE SECTION THREE 16.045.

I'M HAPPY TO TALK ABOUT THAT, BUT I WANTED TO LEAD OFF ON THE DIFFERENCE BETWEEN WHAT THE THE BUDGET RIDER TALKS ABOUT, WHICH IS THE COST OF OUR APPROPRIATION VERSUS, I THINK THE IMPRESSION THAT THE COMMISSIONERS WERE GIVEN THE LEAD UP TO THE TO THE LAST MEETING, WHICH IS THAT WE HAD TO COLLECT AS MUCH REVENUE AS WE HAD IN THE PAST FOR OUR AND IF WE DIPPED BELOW PROJECTED REVENUE THAT WE WOULDN'T BE ABLE TO FUND OUR OPERATIONS.

IT'S SIMPLY NOT TRUE.

SO ANYWAY, THAT'S THAT'S WHAT I'VE GOT FOR NOW.

I'M HAPPY TO PARTICIPATE IN ANY DISCUSSIONS ALL MAY WANT TO HAVE.

THANKS. THANK YOU, COMMISSIONER BOATWRIGHT.

ANY COMMENTS AND QUESTIONS? YEAH. THE ONLY COMMENT I HAVE IS I THINK PART OF THE DIFFICULTY WAS WE COULD LOOK AT HISTORICAL DATA BASED UPON THE NUMBER OF PERMITS AND THE FEE STRUCTURE BASED UPON THE NUMBER OF PERMITS.

BUT WE CHANGED ALL THAT.

AND SO IT WAS VERY DIFFICULT TO THEN LOOK AT THE FORECAST, WHICH IS WHY WE REQUESTED THESE UPDATES.

SO I'M ANXIOUS TO SEE THE DATA, BUT IT'S NOT VERSUS THE PAST 80 YEARS.

WE COMPLETELY REDID THE FEE STRUCTURE AND SO IT'S DIFFICULT TO THEN FORECAST WHAT THOSE REVENUE AMOUNTS ARE GOING TO BE, WHICH IS WHY I THINK WE WE ENDED UP WHERE WE WERE.

SO I COMPLETELY AGREE.

IF WE NEED TO MAKE ADJUSTMENTS, WE WANT TO MAKE ADJUSTMENTS.

BUT I WANT TO MAKE SURE THAT WE'RE BASING IT ON REAL DATA.

AND I DON'T KNOW THAT WE HAVE THAT YET.

I THINK IT'S JUST GOING TO TAKE SOME MORE TIME TO SEE WHERE THE NEW FEES ARE GOING TO BE BASED UPON THE NEW PERMIT STRUCTURE THAT WE HAVE.

SO I JUST CAUTION IN IN MAKING A CHANGE AND THEN AGAIN, HAVING TO COME BACK SIX MONTHS LATER AND BUMP THESE BACK UP.

I DON'T WANT TO BE IN THAT SITUATION WHERE EVERY TWO MONTHS WE'RE HAVING TO MAKE ADJUSTMENTS TO THE FEE STRUCTURE BECAUSE WE WENT A LITTLE TOO LOWER AND WENT TOO HIGH.

WE'VE GOT TO FIND THAT RIGHT SPOT.

AND I JUST WANT TO MAKE SURE THAT WE HAVE GOOD DATA TO MAKE THAT DECISION.

AND SECOND, THAT DATA AND POLICY KIND OF GO HAND IN HAND.

IN THIS INSTANCE, IT'S THE LEGISLATURE GIVING US A POLICY TO SET FEES.

BUT I THINK WHAT COMMISSIONER BOATWRIGHT HAS HIT UPON THAT I MAY NOT HAVE REALLY APPRECIATED WHEN WE WERE GOING THROUGH THE ORIGINAL EXERCISE WAS THE INTERPRETATION OF THE STATUTE AND WHAT OUR TRUE TASK WAS.

AND SO I THINK YOU'RE RIGHT. YOU KNOW, I THINK THE COMMISSIONER.

BUT. RIGHT, YOU'RE RIGHT AS WELL.

I'D ASK FOR OUR COUNSEL TO BRIEF THIS ISSUE, THESE STATUTE, THE RIDER AND THE GOVERNMENT CODE.

I BELIEVE IT'S THREE 16.045.

COMMISSIONER BOATWRIGHT, I'D LIKE TO KNOW WHAT IS OUR TASK BEFORE WE DO ANYTHING WHEN WE DO GET THIS ADDITIONAL POLICY INFORMATION? I WANT TO KNOW, WHAT IS IT THAT THE LAW IS ASKING US TO DO? IS IT TO HIT THE NUMBER OR IS IT TO BE REASONABLE IN OUR ASSESSMENT, WHEN WE GET THIS NEW INFORMATION? BECAUSE INFORMATION WILL BE COMING AND WE WILL HAVE RELEVANT DATA.

AND TO THE EXTENT WE MADE A DECISION THAT WE BELIEVE TO BE ACCURATE BASED ON PROJECTIONS, IF WE ONLY HAVE TO DO THAT BASED ON

[01:05:09]

THE NUMBER, AS COMMISSIONER BOATWRIGHT STATED, REVENUE NEUTRAL.

I THINK THAT THAT WE NEED TO WE NEED TO HAVE THAT IN FRONT OF US AS WE HAVE DATA AS WELL.

SO I APPRECIATE YOU BRINGING THIS FORWARD.

I KNOW THIS IS A IT'S KIND OF NUANCED WHEN YOU START GETTING INTO THE RIDERS AND THE GENERAL APPROPRIATIONS ACT AND THEN TRYING TO MARRY A DIFFERENT STATUTES TOGETHER TO COME TO THE INTENT OF LEGISLATURE.

BUT I THINK WE NEED TO TRY OUR BEST TO FIGURE OUT WHAT THAT INTENT IS FIRST WITH THIS NEW DATA.

SO I'D BE INTERESTED TO SEE WHAT STAT PRESENTS AND THEN MAKE OUR DECISION WHEN WE GET TO THAT POINT.

AS WELL AS YOUR INTERPRETATION OF WHAT WE'RE REQUIRED TO DO.

A. THANKS, JACK.

AND COMMISSIONER ATKINS.

I AGREE. I DON'T WANT TO MOVE FEEDS EVER EVERY COUPLE OF MONTHS.

THAT'S ABSOLUTELY.

THAT WOULD BE A TERRIBLE THING.

THAT'S NOT WHAT I WANT TO DO.

WHAT I WHAT I DID WANT TO DO, THOUGH, IS TO POINT OUT THAT WE USED THE WRONG STUFF TO MAKE A DECISION LAST TIME.

AND AND I WANTED TO EXPLAIN WHY IT WAS WRONG.

AND I WANT TO MAKE SURE THAT GOING FORWARD AFTER WE DO HAVE THE DATA.

THAT WE USE THE RIGHT STUFF, THAT WE USE THE LAW AS IT'S WRITTEN RATHER THAN AS SENIOR STAFF PRETENDS IT IS.

AND THAT WE MAKE A GOOD DECISION GOING FORWARD ONCE WE HAVE ALL THE DATA.

THANKS. ALL RIGHT.

ANY OTHER COMMENTS? ALL RIGHT.

THANK YOU, COMMISSIONER BOATWRIGHT.

ALL RIGHT. THE NEXT AGENDA ITEM IS PUBLIC COMMENTS, AND WE HAVE NO PUBLIC COMMENTS.

[5. Rules]

THANK YOU. ALL RIGHT.

THE NEXT AGENDA ITEM IS CONSIDERATION OF POTENTIAL ACTION ON ADOPTION OF NEW RULE 45.102 AND AMENDED RULES 45.101 45.1050709 THROUGH 12 AND 45.120.

MS.. HORTON, WELCOME.

GOOD MORNING.

YES, GOOD MORNING, COMMISSIONERS.

MR. CHAIRMAN, EXECUTIVE DIRECTOR NETTLES.

ITEM 55.1 IS ADOPTION OF AMENDMENTS TO RULES 45 101, 105 107 10931 12 AND 120 AND NEW RULE 45 ONE AND TWO LOYALTY PROGRAMS. WE HAVE NOT MADE ANY CHANGES TO THE TEXT SINCE IT WAS PUBLISHED.

WE HAVE ONE PUBLIC COMMENT THAT DID NOT RESULT IN A CHANGE.

I'M HAPPY TO ANSWER ANY QUESTIONS YOU HAVE ABOUT THIS, BUT THERE ARE NONE BEFORE YOU FOR YOUR DECISION ON FINAL ADOPTION.

ANY QUESTIONS? I MOVE TO APPROVE ADOPTION OF NEW RULE 45.102 AND AMENDED RULES 45.1050709 THROUGH 12 AND 45.120 AS RECOMMENDED BY STAFF.

IS THERE A SECOND TO THE MOTION? SECOND. THANK YOU.

COMMISSIONER ADKINS, WE HAVE A SECOND VOTE.

ALL OF THEM VOTED.

MOTION IS APPROVED.

THE NEXT AGENDA ITEM IS CONSIDERATION OF POTENTIAL ACTION ON ADOPTION OF NEW RULE 31.7 THROUGH 31.9 REGARDING ADVISORY COMMITTEES.

MS. HORTON AGAIN, THIS IS BEFORE YOU ON ADOPTION AND THESE THREE RULES IN CHAPTER 31 WOULD CREATE THREE NEW COMMITTEES FOR INTERNAL AUDIT, MAJOR INFORMATION TECHNOLOGY PROJECTS AND PUBLIC SAFETY FOR OVERSIGHT OF THOSE FUNCTIONS.

WE DID NOT RECEIVE ANY PUBLIC COMMENTS ON THESE PROPOSALS WHICH WOULD BE ADOPTED PURSUANT TO SECTION 5.2, ONE OF OUR CODE AUTHORIZING US TO ESTABLISH THESE COMMITTEES.

SUBJECT TO YOUR QUESTIONS.

THIS IS NOT BEFORE YOU FOR YOUR DECISION ON ADOPTION.

GO AHEAD, KIM.

AND THIS MAY BE FOR THE PUBLIC MEMBERS, EACH PUBLIC MEMBER.

SO EACH OF THESE COMMITTEES INCLUDES.

I MEAN, WHERE I'M TRYING TO FIND THE SECTION, BUT.

TWO COMMISSIONERS AND THEN IS IT THREE, THREE, THREE YEARS SO WE CAN MEET WITH THE THREE PUBLIC MEMBERS?

[01:10:09]

TO THE EXTENT THAT THERE IS AN ISSUE IN FRONT OF THE RESPECTIVE COMMITTEES AND THERE'S NO WALKING QUORUM ISSUE.

WE DON'T HAVE TO DO ANY NOTICE OR ANYTHING LIKE THAT, CORRECT.

ONLY TWO COMMISSIONERS. I'LL LET YOU COMMISSIONERS SO WE CAN.

AMONGST THOSE TWO WE CAN.

THAT'S RIGHT. AND AS FAR AS THERE'S NOT REALLY ANY MOVING OF ITEMS BECAUSE IT'S ADVISORY.

RIGHT. SO I DON'T NEED THE THREE PUBLIC MEMBERS CANNOT TRUMP THE WILL OF THE TWO COMMISSIONERS TO BRING SOMETHING TO THE FULL BOARD.

CORRECT. THEY'RE JUST TRULY VISUAL.

I THINK IN FUNCTIONAL TERMS. I THINK THAT THAT'S WHY THE THREE PUBLIC MEMBERS COULDN'T FORCE THE TWO BOARD MEMBERS TO NOT DISCUSS WHATEVER WAS DISCUSSED AT A COMMISSION MEETING.

OKAY. OKAY.

THAT'S WHAT I WANTED TO BE.

AND JUST FOR EDIFICATION THAT THE DISCUSSION AND OF STAFFING OR CORRECTION OF THE THE DIFFERENT COMMITTEES FOR LAW ENFORCEMENT.

THE INDICATION OF INTEREST IS COMMISSIONER MORENO AND MYSELF FOR AUDIT.

THE DISCUSSIONS ARE FOR COMMISSIONER MACK AND COMMISSIONER ATKINS FOR TECHNOLOGY CURRENTLY AS COMMISSIONER ATKINS.

AND WE WILL SEEK TO FILL THE OTHER COMMISSION ROLE FOR THAT, THOSE COMMITTEES.

SO I MOVE TO APPROVE ADOPTION OF NEW RULE 31.7 TO 31.9.

REGULATORY ADVISORY COMMITTEES AS RECOMMENDED BY STAFF.

IS THERE A SECOND? I HAVE A QUESTION.

SORRY. SURE. I THOUGHT I'M LOOKING AT THE COMMITTEE, SO I THOUGHT WE WERE GOING TO HAVE A COMMITTEE THAT WAS GOING TO OVERSEE KIND OF.

FOR LACK OF A BETTER TERM LIKE ADMINISTRATIVE.

AND SO WE WERE GOING TO HAVE BE ABLE TO ALSO BE.

HELPING TO MANAGE THE HOLISTIC LEGISLATIVE AGENDA.

BE ABLE TO LOOK ON MARKETING, MESSAGING, KIND OF THOSE THINGS AS WELL AND ALONG WITH.

SO THERE WAS KIND OF THE LAW ENFORCEMENT PIECE, THERE WAS THE ADMINISTRATIVE PIECE, THERE WAS THE AUDITING PIECE, AND THEN TECHNOLOGY.

YEAH, I'M PRETTY SURE WE HAD THAT CONVERSATION.

RIGHT. SO IS THAT SOMETHING THAT DIDN'T GET IN HERE OR WE DECIDED.

STAFF DECIDED NOT TO MOVE FORWARD WITH THAT OR I JUST RECALL THE THREE I DO NEED TO I MEAN, THAT MAY HAVE BEEN PART OF ONE OF THE I'M GOING TO SAY IT WASN'T DISCUSSED. I JUST DON'T REMEMBER SPECIFICALLY THAT WE HAD FOR WELL, I THINK IT WAS GOING TO BE THREE, BUT SPECIFICALLY, I KNOW AUDIT WAS GOING TO BE ONE. BUT THEN ONCE THE AUDIT GOES AWAY, THAT KIND OF DISSEMINATES, BUT THEN IT KIND OF ROLLS UNDER MORE OF A, LIKE I SAID, A LACK OF A BETTER TERM, AN ADMINISTRATIVE KIND OF THING. SO YOU'RE LOOKING AT FINANCIALS.

IT'S NOT SO LIKE IN OTHER COMMITTEES AND OTHER BOARDS, RIGHT? YOU HAVE THE FINANCIAL COMMITTEE.

AND SO THEY LOOK AT IT AND SO YOU HAVE A BRIEFING KIND OF BEFORE.

AND SO WE'RE GOING TO KIND OF STRUCTURE THAT THE SAME WAY.

YOU KNOW, I, I KNOW WHERE YOU'RE GOING.

AND I'VE SEEN THAT STRUCTURE.

I THINK AUDIT COULD POSSIBLY BE STANDING.

YOU DON'T HAVE TO JUST DO AN AUDIT.

SO MAYBE THAT'S WHY THE AUDIT AND ADMINISTRATION.

SO THAT REALLY WASN'T JUST AN AUDIT COMMITTEE.

AND I THINK THAT KIND OF GOT US HERE.

THE. IT'S NOT A NARROW INTERPRETATION OF WHAT THE COMMITTEES DO.

SO THE OBVIOUSLY, PUBLIC SAFETY IS GOING TO HAVE THAT COMPONENT TO IT.

BUT AUDIT IS AN AUDIT OF YOUR OPERATIONAL STRUCTURE AND AUDIT COULD BE YOUR FINANCIAL SITUATION.

I TOOK THAT TO BE A MORE OF AN UMBRELLA TYPE.

ADVISORY COMMITTEE IS THAT MAY FIT WITHIN WHAT YOU WERE THINKING.

THAT'S. I THINK IT'S JUST REALLY IMPORTANT THAT WE'RE ABLE TO WORK HAND IN HAND WITH STAFF AND SO WE DON'T GO TO A POINT THAT WE'RE AT A COMMISSIONERS MEETING AND THEN ALL OF A SUDDEN WE'RE GETTING BRIEFED ON SOMETHING, RIGHT? SO WE WANT TO BE ABLE TO KIND OF HELP WORK HAND IN HAND WITH STAFF.

AND, YOU KNOW, WE'RE DOING AUDIT TOGETHER.

RIGHT. SO I AGREE WITH YOU.

I'M SORRY. I MISSPOKE.

SORRY. THAT'S FOR YOU, I THINK.

SO I ACTUALLY NO LONGER ON THE AUDIT AND ADMINISTRATIVE COMMITTEE.

I SAW YOU SWEATING ALONG.

YEAH, I BEG YOUR PARDON.

AND THAT'S HOW I INTERPRETED IT.

SO THAT IF THAT'S SUFFICIENT, I THINK WE PROBABLY HAVE IT COVERED IN THREE.

OUR CLERK TO RESTATE WHAT I SAID PRIOR.

THE LAW ENFORCEMENT COMMITTEE WILL BE COMMISSIONER MORENO AND MYSELF.

THE AUDIT AND ADMINISTRATIVE COMMITTEE WILL BE COMMISSIONER MACK AND COMMISSIONER MORENO AND THE TECHNOLOGY COMMITTEE.

COMMITTEE AT THIS POINT WILL BE COMMISSIONER ATKINS.

TO CLARIFY MY PRIOR STATEMENT.

[01:15:02]

THANK YOU. ALL RIGHT.

WE. I MOVE TO ADOPT.

NEW RULE 31.7 TO 31.9 REGARDING ADVISORY COMMITTEES AS RECOMMENDED BY STAFF.

IS THERE A SECOND? SECOND? Q MR. MACK, FIRST I HAVE A SECOND.

WE WILL NOW BOTH.

FOR. ALL OF THE VOTES HAVE BEEN RECORDED.

MOTIONS APPROVED.

NEXT AGENDA ITEM IS CONSIDERATION OF POTENTIAL ACTION ON PUBLICATION OF AMENDMENTS TO RULE 39.1 AND NEW RULES 39.2 THROUGH 39.5 RELATED TO PORTS OF ENTRY.

MS. HORTON. THANK YOU, MR. CHAIRMAN. THIS IS A RULE ITEM FOR A PROPOSAL WHICH WILL BE PUBLISHED IN THE TEXAS REGISTER FOR COMMENT AND YOU'LL SEE AGAIN AT YOUR NEXT COMMISSION MEETING.

WE PREVIOUSLY HAVE ONLY ONE RULE RELATED TO PORTS OF ENTRY, AND THAT'S RULE 39.1.

AND IN OUR QUADRENNIAL REVIEW, WE NOTED THAT THERE NEEDED TO BE SOME UPDATING SINCE WE DON'T USE THE ANTIQUATED TAX STAMP SYSTEM ANYMORE AT OUR PORTS OF ENTRY.

SO WE DID HAVE A NECESSARY CHANGE TO THAT RULE TO TO BROADEN WHAT WE CAN DO AND BY WAY OF RECEIPT.

SO THAT IS THAT IS THE AMENDMENT THAT YOU SEE THERE.

NOW, AS WE WERE GOING THROUGH AND TALKING WITH OUR PORTS OF ENTRY PERSONNEL, WE REALIZED THAT THEY COULD BENEFIT AND WE THINK THE PUBLIC COULD BENEFIT FROM HAVING ALL OF THE STANDARDS FOR PERSONAL IMPORTATION IN ONE PLACE.

AND THAT'S WHERE THE RULES 39.25 COMES FROM.

ALL OF THOSE RULES REPRESENT EITHER SOMETHING THAT ALREADY EXISTS IN STATUTE OR IS A POLICY PROCEDURE THAT'S ALREADY IN USE AT PORTS OF ENTRY.

HOWEVER, FOR USER FRIENDLINESS SO PEOPLE KNOW EVERYTHING THEY NEED TO KNOW IN ONE PLACE AND DON'T HAVE TO GO LOOKING FOR IT.

WE'VE ESSENTIALLY PLACED THOSE HERE IN THIS CHAPTER.

ADDITIONALLY, AND COLONEL BEAL WAS SAYING EARLIER, SOME PEOPLE JUST DON'T UNDERSTAND IMPORTATION LIMITS.

SOME PEOPLE DON'T KNOW WHAT THE OPTIONS ARE FOR.

THEY CAN'T BRING SOMETHING IN.

WE'VE HAD SOME FOLKS SAY THAT IT'S HARD TO EXPLAIN TO PEOPLE WHY, WHY THEY HAVE TO DO ONE OF THESE THREE THINGS.

SO I'M HOPING THAT IT PUTS THE PUBLIC ON BETTER NOTICE AND ALSO MAKES THE JOB OF THOSE PERSONNEL EASIER WHEN THEY HAVE TO DO SOMETHING LIKE TELL SOMEONE THAT YOU CAN'T READ THEM AND HERE'S WHY. SO BUT NOTHING IN THOSE RULES IS ANYTHING NEW.

IT'S JUST PUTTING IT ALL IN ONE PLACE AND TRYING TO MAKE IT AS EASY TO USE FOR FOR BOTH THE PUBLIC AND FOR OUR STAFFERS.

THANK YOU. ANY QUESTIONS? COMMENTS. I MOVE TO APPROVE PUBLICATION OF AMENDMENTS TO RULE 39.1 AND NEW RULES 39.2.

THROUGH 39.5 RELATED TO PORTS OF ENTRY.

IS THERE A SECOND TO THE MOTION? THANK YOU, COMMISSIONER. BACK.

WE HAVE A SECOND FROM NUMBER.

ALL GOOD REMOTES HAVE BEEN RECORDED.

[6. Executive Session]

THE MOTION IS APPROVED.

THANK YOU. NEXT ITEM IS THE EXECUTIVE SESSION.

I WILL NOW GO INTO EXECUTIVE SESSION UNDER GOVERNMENT CODE 551.074 AND 551.071.

REGULAR OPEN SESSION OF THE ABC WILL BE IN RECESS.

TIME IS NOW 1150.

TUESDAY, JANUARY 25TH, 2022.

AND. THE TEXAS ALCOHOLIC BEVERAGE COMMISSION HAS CONCLUDED ITS EXECUTIVE SESSION IS NOW IN REGULAR OPEN SESSION.

THE DATE IS TUESDAY, JANUARY 25, 2022, ON THE TIMES, 12:36 P.M..

NEXT IS POTENTIAL ACTION ON ITEMS DISCUSSED IN EXECUTIVE SESSION AND.

NO ACTIONS WERE TAKEN.

IS THAT CORRECT? OR DO WE ACTUALLY KNOW ACTIONS WERE TAKEN? NEXT IS THE ANNOUNCEMENT OF THE NEXT MEETING DATE.

THAT'S THE NEXT SCHEDULED COMMISSION MEETING DAY IS PLANNED FOR TUESDAY, MARCH 22ND.

2022, WHICH IS JUST AFTER SPRING BREAK.

SO HOPEFULLY THAT'S NOT A CONFLICT WITH ANY.

SO DOES ANYONE HAVE A PROBLEM WITH THAT DATE?

[7. Closing Items]

OKAY. EXCELLENT.

COMMISSION IS SCHEDULED TO MEET ON TUESDAY, MARCH 22ND, 2022.

NEXT IS ADJOURNMENT. THE TIME IS NOW 1237.

AND BEFORE WE ADJOURN, I JUST ALSO WANTED TO THANK EVERYONE IN THE SAN ANTONIO OFFICE.

I WANTED TO THANK ALL THE STAFF THAT CAME DOWN FROM AUSTIN.

I WANTED TO THANK EVERYONE THAT PUT THIS MEETING ON BECAUSE WE SORT OF STROLL IN HERE, WE SIT DOWN, EVERYTHING'S SET UP, WE GO AND THEN WE WALK OUT AND WE

[01:20:03]

DON'T REALIZE LOU AND JOE, EVERYBODY, ALL THE WORK THAT GOES INTO PUTTING THIS TOGETHER LITERALLY TAKES A MONTH OF PLANNING, IF NOT LONGER. AND SO I JUST WANT FOR THE RECORD TO THANK EVERYONE IN SAN ANTONIO GENERAL.

I THOUGHT IT WAS A GREAT MEETING.

AND COMMISSIONER MORENO, THANK YOU FOR FOR HOSTING SUCH AN EXEMPLARY FASHION.

IT'S EASY WHEN YOU SURROUND YOURSELF WITH GREAT PEOPLE.

SO THE TIME IS NOW? 1238 AND WE ARE ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.