MISSION TODAY. SO THE FIRST AGENDA ITEM IS THE CALL TO ORDER, TIME IS 10:30, TUESDAY, MARCH 28TH, 2023. [1. Opening Items] [00:00:08] WE HAVE A QUORUM AND I HAVE NO OPENING REMARKS. SORRY, YOU'RE UNDER THE WEATHER CHAIRMAN, BUT YEAH. CAN YOU ALL CAN YOU ALL HEAR ME? OKAY. SORRY. SORRY. YOU'RE UNDER THE WEATHER, BUT IF YOU'RE GOING TO BE FELLED BY SOMETHING, IT MIGHT AS WELL BE A MIGHTY OAK. SO THAT'S THAT'S A THAT'S A GOOD THING. I THOUGHT I WOULD START BY MENTIONING THE FACT THAT THIS IS MY THIRD LEGISLATIVE SESSION ON THE COMMISSION. AND IN THE FIRST SESSION, WE HAD BILLS TO ABOLISH THIS AGENCY. IN THE SECOND SESSION, WE HAD EVEN MORE BILLS TO ABOLISH THE AGENCY. MEMBERS OF THE LEGISLATURE SEEM TO BE COMPETING WITH ONE ANOTHER TO TO TO TO TRY TO ABOLISH THE AGENCY. THERE AREN'T ANY BILLS THAT ATTEMPT TO ABOLISH THE AGENCY THIS SESSION. I DON'T THINK THAT'S AN ACCIDENT. I DO THINK THAT THINGS ARE GETTING BETTER HERE. I THINK THAT THAT'S BECAUSE OF YOUR EFFORTS. I THINK IT'S BECAUSE OF THE EXECUTIVE DIRECTOR'S EFFORTS AND HIS TEAM. I WANT TO CONGRATULATE YOU ALL FOR THAT. DOES IT MEAN THAT WE'RE OUT OF THE WOODS? DOES IT MEAN THAT THERE WOULDN'T BE LEGISLATORS WHO WOULD BE THRILLED TO TO SEE US GO? BUT IT DOES MEAN THAT I THINK THAT WE'RE HEADED IN THE RIGHT DIRECTION AND THROUGH A LOT OF HARD WORK AND A COMMITMENT TO THE STATE AND TO HELPING MAKE PEOPLE'S LIVES BETTER AND EASIER RATHER THAN HARDER AND WORSE AND AND DOING DOING THE RIGHT THINGS, I THINK WE CAN CONTINUE TO IMPROVE THE AGENCY. AND AND I'M PROUD OF THE OPPORTUNITY THAT YOU ALL HAVE GIVEN US TO DO THAT. I WANT TO THANK YOU FOR THAT. I WANT TO ENCOURAGE YOU TO KEEP UP THE VERY GOOD WORK. THANK YOU. THANK YOU, COMMISSIONER. SO THE NEXT ITEM IS THE PLEDGE OF ALLEGIANCE. WOULD YOU ALL STAND AND JOIN ME IN PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES? I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA. AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. NEXT ITEM IS APPROVAL OF COMMISSION MEETING MINUTES FOR THE JANUARY 24TH 2023 MEETING. SO I. SO MOVE. IS THERE A SECOND? SECOND. OKAY. THANK YOU, COMMISSIONER ATKINS. WE WILL NOW VOTE. ALL ARE VOTED. OKAY, GREAT. THE MINUTES ARE APPROVED AS WRITTEN. OUR VOTES HAVE BEEN RECORDED. [2. Recognitions] NEXT UP IS RECOGNITION OF MARTIN WILSON. AND LET'S SEE, WE'LL START WITH MARTIN. ARE YOU READY? OKAY, I'M READY. GOOD MORNING, CHAIRMAN LILLY, COMMISSIONER BOATWRIGHT, COMMISSIONERS, EVERYBODY. I'M HONORED TODAY TO PRESENT A FEW ADDITIONS TO OUR EXECUTIVE MANAGEMENT TEAM AND ONE RETIREMENT. MR.. MARTIN, IF YOU'D LIKE TO COME UP. MARTIN WILSON IS RETIRING FROM TVC ON MARCH 31ST WITH OVER 32 YEARS OF SERVICE WITH THE STATE OF TEXAS, INCLUDING 14 YEARS WITH TABC. MARTIN HAS SERVED AS SENIOR COMMISSION COUNSEL FOR TABC SINCE 2021. PRIOR TO THAT, HE SERVED AS ASSISTANT GENERAL COUNSEL BEGINNING IN 2009. BEFORE COMING TO TABC, MARTIN WORKED FOR THE PUBLIC UTILITY COMMISSION OF TEXAS AS THEIR ASSISTANT GENERAL COUNSEL AND CO ACTING GENERAL COUNSEL FOR TELECOMMUNICATIONS FROM 1986 TO 2000. HE ALSO HELD THE POSITIONS OF HEARING EXAMINER AND GENERAL COUNSEL AT THE TEXAS WATER COMMISSION FROM 1984 TO 1986 AND AS A STAFF ATTORNEY FOR THE TEXAS DEPARTMENT OF WATER RESOURCES FROM 1982 TO 1984. MARTIN WAS A LEGAL EDITOR AT LAWYERS COOPERATIVE PUBLISHING IN NEW YORK, AND FROM 1981 TO 1982, HE ALSO HELD A PRIVATE PRACTICE IN EL PASO AND SERVED AS AN ADJUNCT PROFESSOR AT UT EL PASO DEPARTMENT OF CRIMINAL JUSTICE. FROM 1978 TO 1981. MARTIN HOLDS A BACHELOR'S DEGREE FROM UT EL PASO AND A JD AND LLM FROM UT SCHOOL OF LAW. CONGRATULATIONS, MR. WILSON. [00:05:20] PROFITS. OKAY. ALL RIGHT, MR. WILSON. THIS IS A PROCLAMATION FROM THE GOVERNOR. CONGRATULATIONS ON YOUR WELL-DESERVED RETIREMENT AFTER 32 YEARS OF SERVICE TO THE PEOPLE OF TEXAS. PUBLIC SERVICE IS AN HONOR FOR ITS FOUNDATION. IS IN THE PUBLIC TRUST. DAILY STATE EMPLOYEES EARN THIS TRUST, DEMONSTRATING DEPENDABILITY, DEPENDABILITY, INITIATIVE, AND WISE STEWARDSHIP OF PUBLIC RESOURCES. YOUR ENDLESS DEDICATION HIGHLIGHTS THIS STATE'S GREATEST ASSET, THE PEOPLE WHO CALL IT HOME. FIRST LADY CECILIA ABBOTT JOINS ME IN SENDING BEST WISHES FOR AN ENJOYABLE AND FULFILLING RETIREMENT. SINCERELY. GOVERNOR GREG ABBOTT. YOU'RE DOING. PROMISE? THANK YOU VERY MUCH. THANKS. CONGRATULATIONS. WE HAVE ANOTHER. FISH. MRS. MRS. I'M GONNA GET A PHONE. MORNING. IT'S BEEN A TRUE PLEASURE WORKING WITH YOU OVER THE YEARS. THANK YOU FOR EVERYTHING YOU'VE TAUGHT ME AND DONE FOR THIS AGENCY. CONGRATULATIONS. I APPRECIATE ALL THE GOOD THOUGHTS, KIND WORDS. LISTENING TO MY RESUME AS KIND OF PUTTING MY CAREER FOR THE STATE IN PERSPECTIVE. I STARTED OUT AT THE WATER COMMISSION DOING WATER RIGHTS LAW, WHICH IS LOOKING TOWARD THE PAST AND USING SPANISH LAND GRANTS AND WITH THE FEDERAL LAW OF WATER RIGHTS HAS BEEN FOR CENTURIES. AND WHERE WHO OWNS THAT WATER? THAT WAS VERY MUCH LOOKING TO THE PAST. AND THEN I WENT TO THE PUBLIC UTILITY COMMISSION, WORKING TELECOMMUNICATIONS, WHERE WE WERE DEREGULATING THE THE TELEPHONE INDUSTRY. AND THAT WAS VERY FORWARD LOOKING. SO IT WAS VERY MUCH PREDICTING THE FUTURE. WE WERE JUST STARTING TO LOOK AT HOW OR IF YOU REGULATE THE INTERNET, WHAT YOU HAVE, CABLE TV. SO VERY FORWARD LOOKING. THEN I WOUND UP HERE AND I THINK THAT WAS GOOD PREPARATION FOR ME BECAUSE ALCOHOL HAS FOREVER BEEN WITH US AND WILL FOREVER BE. PERFECT. CONGRATULATIONS. NEXT DAY. INJURY. SLIGHT. ALL RIGHT. SO, MISS ANDREA, MISS SARAH HAS PROMOTED TO CHIEF OF REGULATORY AFFAIRS ON SEPTEMBER 1ST, 2022. THIS IS A RESTRUCTURED POSITION WHICH OVERSEES LICENSING, AUDIT AND MARKETING PRACTICES. ANDREA PREVIOUSLY SERVED AS INTERIM DIRECTOR OF BOTH THE LICENSING DIVISION AND EXCISE TAX AND MARKETING PRACTICES DIVISION SINCE AUGUST. BEFORE THAT, SHE WAS DEPUTY DIRECTOR OF EXCISE TAX AND MARKETING PRACTICES. ANDREA BEGAN HER CAREER AT TABC IN 2014. BEFORE JOINING THE AGENCY, SHE WORKED AS A MANAGER AT THE GREATER AUSTIN CHAMBER OF COMMERCE, GIVING HER INVALUABLE EXPERIENCE UNDERSTANDING THE NEEDS AND CHALLENGES OF TEXAS BUSINESSES. ANDREA HOLDS A BACHELOR'S DEGREE IN PUBLIC RELATIONS FROM THE TEXAS STATE UNIVERSITY AND IS A GRADUATE OF THE GOVERNOR'S SENIOR MANAGEMENT DEVELOPMENT PROGRAM OF THE UNIVERSITY OF TEXAS LBJ SCHOOL OF PUBLIC AFFAIRS. CONGRATULATIONS, ANDREA. YOU. NOW THE PHOTO OP. SEE THIS? [00:10:10] OKAY. CHIEF, WOULD YOU LIKE TO SAY ANYTHING? I'M JUST PROUD TO BE HERE. I'M PROUD OF THE WORK THAT WE DO FOR TBG, AND I'M JUST LOOKING FORWARD TO CONTINUING. IN THIS LEADERSHIP ROLE TO HELP SUPPORT OUR WONDERFUL EMPLOYEES HERE. THANK YOU. THANK YOU. THANK YOU. LAST UP, WE HAVE GEORGE STOLLARD. GEORGE STOLLARD WAS PROMOTED TO CHIEF INFORMATION OFFICER ON FEBRUARY 15TH. BEFORE GEORGE CAME TO TABC, HE WORKED IN VARIOUS INFORMATION TECHNOLOGY ROLES AT THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY AND TEXAS GENERAL LAND OFFICE. GEORGE STARTED WITH TABC IN OCTOBER 2019 AS THE INFORMATION SECURITY OFFICER AND HAS SERVED AS INTERIM CIO SINCE SEPTEMBER. GEORGE IS A CERTIFIED PROJECT MANAGEMENT PROFESSIONAL THROUGH THE PROJECT MANAGEMENT INSTITUTE, A CERTIFIED INFORMATION SECURITY AUDITOR FROM THE INFORMATION SYSTEMS AUDIT AND CONTROL ASSOCIATION, A CERTIFIED INFORMATION SYSTEM SECURITY PROFESSIONAL THROUGH THE INTERNATIONAL INFORMATION SECURITY SYSTEMS CERTIFICATION CONSORTIUM. AND HE ALSO EARNED A BACHELOR OF SCIENCE IN COMPUTER SCIENCE FROM QUINCY UNIVERSITY. CONGRATULATIONS, GEORGE. ALL RIGHT. WOULD YOU LIKE TO SAY ANYTHING, SIR? JUST EXCITED TO CONTINUE TO THE HARD WORK HERE AT THE AGENCY. AND I APPRECIATE GRAHAM'S VOTE OF CONFIDENCE. SO THANK YOU, EVERYONE. THANKS. THANK YOU. THANK YOU. SO THAT ENDS MY INTRODUCTION TODAY UNLESS COMMISSIONERS HAVE ANY QUESTIONS OR WANT TO SAY ANY COMMENTS. CONGRATULATIONS TO ALL. THANK YOU VERY MUCH. THANK YOU, MADAM. ALL RIGHT. [3. Reports] THE NEXT AGENDA ITEM IS THE TRACE UPDATE. DEPUTY CHIEF SWENSON. GOOD MORNING, CHAIRMAN. COMMISSIONERS. MORNING. I'M A LITTLE UNDER THE WEATHER ALSO, SO I FEEL. I FEEL YOUR PAIN. YOU SHOULD HAVE ONE. SOMEONE TO COME AND SPEAK FOR YOU. CHAIRMAN. I'LL MANAGE. THANK YOU, THOUGH. ALL RIGHT. GOOD MORNING. AND THANK YOU FOR HAVING ME. MY NAME IS RON SWANSON. FOR THE RECORD, I AM THE DEPUTY CHIEF OVER THE INVESTIGATIONS BUREAU, WHICH INCLUDES OUR SPECIAL INVESTIGATIONS, CRIMINAL INTELLIGENCE, AND OF COURSE, OUR TRACE UNIT, WHICH WE'RE GOING TO TALK ABOUT TODAY. TRACE IS SOMETHING THAT WE STARTED ABOUT TWO YEARS AGO, AND I'M JUST GOING TO KIND OF HIGHLIGHT SOME OF THE SUCCESSES THAT WE'VE HAD AND HOW IT WORKS. SO IT'S NOT NOT A LOT OF ROCKET SCIENCE HERE, BUT IT OUR AGENTS ARE OUT IN THE FIELD WORKING WITH THE LOCAL POLICE. AND WHAT WE DID WAS WE SET UP A PROGRAM THROUGH THE TEXAS PARKS AND WILDLIFE DIVISION TO HAVE A1888 NUMBER THAT CAN BE CALLED AT ANY TIME TO GET A HOLD OF OUR OUR TRACE AGENTS. THAT NUMBER IS MONITORED BY A TEXAS PARKS AND WILDLIFE DISPATCHER. THAT DISPATCHER HAS OUR CONTACT INFORMATION AND THEN OUR INVESTIGATORS ARE SENT TO THE FIELD TO HELP INVESTIGATE ANY TYPE OF ALCOHOL RELATED EMERGENCY THAT HAS OCCURRED AT A AT A BAR OR ON THE ROADWAY WHERE WE THINK A CAR, A FATAL CAR ACCIDENT WHERE A PERSON HAS LEFT THE LEFT THE BAR. I'M GOING TO TALK A LITTLE BIT ABOUT IT. I DON'T THINK THIS NUMBER IS USED A WHOLE LOT BECAUSE OUR AGENTS HAVE DONE SUCH A GOOD JOB BUILDING RELATIONSHIPS WITH THE LOCAL LAW ENFORCEMENT THAT WE ACTUALLY HAVE JUST THE COMMON KNOWLEDGE OF WHO IS ON CALL AND HOW THEY RESPOND THAT THIS NUMBER IS VALUABLE AND WE PASS IT OUT LIKE AT EVERY CONFERENCE THAT WE GO TO. BUT IT IS NOT SOMETHING THAT IS UTILIZED PROBABLY AS MUCH. AND THAT'S A GOOD THING. AND I'LL EXPLAIN THAT ON THE NEXT ON A SLIDE. COMING UP NEXT SLIDE, PLEASE. SO WHAT ARE THE BENEFITS TO THIS? WHAT IS IT REALLY DO OBVIOUSLY, WE'RE HERE TO PRESERVE THE EVIDENCE FOR THE INVESTIGATIONS. WHEN WE SHOW UP AT A AT A SCENE, WHETHER IT'S A CRIME SCENE, AT A BAR OR A FATAL CAR ACCIDENT, OUR JOB IS TO FREE UP THAT LOCAL TROOPER, THAT LOCAL POLICE OFFICER, SO THAT THEY CAN WORK ON THAT CRIMINAL INVESTIGATION, SO THAT THEY CAN WORK ON THE SHOOTING OR THEY CAN WORK ON THE CAR ACCIDENT, GET THE PEOPLE THE HELP THAT THEY NEED. AND OUR INVESTIGATIONS GO BACK TO THAT ESTABLISHMENT AND FIGURE OUT, WAS THERE SOMETHING THAT THE BAR COULD HAVE OR SHOULD HAVE DONE TO PREVENT IT? WAS THERE SOMETHING THAT THE BARTENDER COULD HAVE DONE? COULD HAVE THEY HAVE HAD BETTER PROCESSES IN PLACE, MORE SECURITY? [00:15:01] COULD THEY HAVE CHECKED IDS BETTER? ET CETERA. AND THAT'S A VERY VALUABLE TOOL BECAUSE WHAT IT DOES IS IT FREES UP THOSE LOCAL OFFICERS TO WORK ON THEIR CRIMINAL INVESTIGATION. OUR INVESTIGATION CAN TURN CRIMINAL. ALSO, OBVIOUSLY, AN EXAMPLE OF THE MOST RECENT CASE WHERE A EULESS POLICE OFFICER WAS KILLED OFF DUTY. THAT BARTENDER WAS EVENTUALLY ARRESTED FOR SALE TO INTOXICATED PERSON, PARTIALLY AS A RESULT OF OUR INVESTIGATION. SO WE'RE GOING TO GO BACK AND HOLD THAT ESTABLISHMENT ACCOUNTABLE IF IF NECESSARY, TO DO SO. AND AS LISTED HERE, HOPEFULLY IT CORRECTS THAT BEHAVIOR, REDUCES CALLS FOR SERVICE, INCREASES HIGHWAY TRAFFIC SAFETY. OF COURSE, WE WOULD LOVE TO TO REDUCE THE DWI ACCIDENTS THAT ARE OCCURRING ON THE ROADWAY. THAT'S OBVIOUSLY ONE OF OUR NUMBER ONE OBJECTIVES. NEXT SLIDE, PLEASE. SO HERE ARE SOME OF THE STATISTICS OVER THE PAST TWO YEARS THAT YOU CAN SEE. AND THIS IS WHERE THE FIRST SLIDE COMPLAINT PRE-ASSESSMENTS. THE REASON WHY I REALLY WANT TO HIGHLIGHT THIS IS IT'S ONE WAY THAT WE CAN TRIAGE OUR OUR INVESTIGATIONS IF IF WE YOU CAN JUST SEE THE SHEER NUMBER OF INVESTIGATIONS THAT WE WOULD BE DOING. SO WHAT WE DO IS WE DO THESE PRE ASSESSMENTS AND REALLY WHAT IT DOES IS IT PROTECTS THE INDUSTRY FROM GETTING PUT ON BASICALLY A BAD LIST WHERE WE'RE GOING TO OPEN UP A COMPLAINT. SO WE DO THESE PRE ASSESSMENTS FIRST TO ESTABLISH WAS THERE ANYTHING THE BAR COULD HAVE OR SHOULD HAVE DONE TO PREVENT IT? IF THERE ISN'T, WE'RE NOT GOING TO OPEN UP A FULL INVESTIGATION. WE'RE NOT GOING TO GO OUT AND DO GRAND JURY SUBPOENAS OR SEARCH WARRANTS ON THE CAMERAS. WE'RE NOT GOING TO DO THE TOTAL INVESTIGATION. IF THERE IS, YOU CAN SEE BY THE NEXT LEVEL DOWN, COMPLAINTS OPENED. IT'S STILL A SIGNIFICANT NUMBER FOR THE NUMBER OF AGENTS THAT WE HAVE IN OUR TRACE UNIT, WHICH IS 11 AGENTS STATEWIDE. SO YOU CAN SEE WE'RE DOING 289 TO 274 FULL INVESTIGATIONS A YEAR. THAT'S A SIGNIFICANT AMOUNT OF WORK. WHAT IS PROBABLY MOST IMPRESSIVE TO ME, AS YOU CAN SEE, THAT THE ALLEGATIONS SUSTAINED. SO THAT MEANS WE'RE REALLY PUTTING OUR RESOURCES WHERE THEY MATTER. WE'RE NOT CHASING OUR TAIL, LOOKING AT EVERY INVESTIGATION. WE'RE FOCUSING ON THE THINGS THAT MATTER. AND LAST AND HAVING REALLY GOOD SUCCESS RATES, THEY'RE ALLEGATIONS SUSTAINED 28 POINT ALMOST 5% THE FIRST YEAR THAT WE CREATED THE UNIT AND WE'RE UP TO 36% THIS YEAR. ANOTHER GREAT, I THINK, DEMONSTRATION OF OUR EFFICIENCY IS THE AVERAGE DAYS TO CLOSE. WE'RE AT 66, 64 DAYS. LIKE I SAID, THESE ARE INVESTIGATIONS WHERE WE HAVE EITHER SHOOTINGS, STABBINGS AT BARS, MAJOR FATALITY, CAR ACCIDENTS. WE'RE WAITING ON SOMETIMES BLOOD RESULTS FROM THE LOCAL DPS OR THE LOCAL PD, OR WE'RE WAITING ON CAMERAS, WHICH WE USUALLY DO GRAND JURY SUBPOENAS TO, TO RETRIEVE THE CAMERA EVIDENCE. SO THAT'S A LOT OF WORK TO GET DONE IN 60 DAYS. AND WE'VE BEEN EXTREMELY SUCCESSFUL AT DOING IT. AND THIS GOES BACK TO WHEN I TALKED ABOUT THE NUMBER, THE DISPATCH NUMBER. I'M NOT SAYING THE NUMBER. THE NUMBER IS NECESSARY. IT'S VALUABLE. IT'S SOMETHING THAT WE PASS OUT AND SHARE WITH ALL OF OUR LAW ENFORCEMENT PARTNERS. BUT THIS IS WHERE REALLY THE NETWORKING AND THE RELATIONSHIPS HAS PROVEN THE SUCCESS IS. WE'VE MADE CONTACT WITH, ON AVERAGE, 3800 TO 3600 LAW ENFORCEMENT PARTNERS PER YEAR. SO WE'RE ACTUALLY GETTING OUT THERE SHAKING HANDS AND PASSING OUT BUSINESS CARDS AND GETTING THEM TO KNOW US. I THINK THAT'S THE MOST VALUABLE THING. THEY DON'T JUST CALL A DISPATCH NUMBER AND WAIT FOR AN AGENT TO SHOW UP. THEY CALL WRONG AND THEY SAY, RON, THIS IS WHAT I GOT. I'M TROOPER SO-AND-SO. THIS IS WHAT'S GOING ON AT THIS BAR. CAN YOU COME HELP? AND WHEN YOU HAVE THAT RELATIONSHIP BUILT UP WITH THE LOCAL LAW ENFORCEMENT OR WITH THE STATE TROOPERS, THAT'S WHEN YOU START SEEING SUCCESS LIKE THIS. NEXT SLIDE, PLEASE. AND SOME MORE GREAT SUCCESS BEFORE TRACE, WE WE WE WERE NOT AS SUCCESSFUL. AND I THINK IT'S JUST BECAUSE WHEN YOU'RE A JACK OF ALL TRADES, YOU'RE A MASTER OF NONE BASICALLY. RIGHT. YOU'RE WE HAVE TAKEN THIS AND WE HAVE MADE IT EFFICIENT TO WHERE THIS IS WHAT THIS GROUP OF AGENTS DO. AND THEY HAVE GOTTEN EXTREMELY GOOD AT IT. AND SEE, OUR TARGET WAS TO GET TO A SUSTAINED RATE OF 22%. WE'RE AT AN AVERAGE OVER THE TWO YEAR. THIS IS THE TWO YEAR RATE HERE OF ALMOST 30%. OUR AVERAGE DAYS TO CLOSE BEFORE WAS AROUND 100 DAYS. OUR TARGET WAS 70 AND WE'RE AVERAGING 66 DAYS. SO I THINK THE THE THE SUCCESSES ARE QUITE EVIDENT. I'M REALLY PROUD OF THIS UNIT WE HAVE WE INCORPORATED THEM INTO THE INVESTIGATIONS BUREAU ABOUT TWO YEARS AGO AND THEY HAVE BEEN A GREAT ADDITION. THEY WORK A LOT OF ALONGSIDE OUR OUR ENFORCEMENT AGENTS, OUR OPERATIONS BUREAU AGENTS ON A REGULAR BASIS. SO WE COULDN'T DO IT WITHOUT THEM. THEY SUPPLEMENT OUR SPECIAL INVESTIGATIONS UNIT EXTREMELY WELL, ALSO BECAUSE OF THEIR INVESTIGATIVE BACKGROUND. WE HAVE A COUPLE OF FORMER HOMICIDE DETECTIVES THAT ARE ATTACHED TO THIS UNIT. SO WHEN THEY SHOW UP AT A AT A SHOOTING AT A BAR, THERE'S THAT INSTANT CREDIBILITY AND RECOGNITION THAT IS IS GIVEN TO THEM. [00:20:01] SO NEXT SLIDE AND THIS IS JUST KIND OF A NOD TO SOME OF THE PEOPLE, TEX-DOT, DPS GAME WARDENS, ALL OF OUR LOCAL SHERIFFS, ALL OF OUR LOCAL POLICE DEPARTMENTS THAT ARE PART OF THESE ASSOCIATIONS HAVE WE COULDN'T DO IT WITHOUT THEM. SO THAT PARTNERSHIP IS IS IS REALLY THE KEY TO SUCCESS. AND I THINK THAT SUMS EVERYTHING UP. NEXT SLIDE IS IF YOU HAVE ANY QUESTIONS, OKAY, I'M GOING TO TRY TO MAKE A STATEMENT BECAUSE, YOU KNOW, WE ONE OF THE THINGS THAT I'VE MENTIONED IN MANY TIMES IS THE COLLABORATIVE NATURE OF LAW ENFORCEMENT AND HOW FORCE MULTIPLICATION IS REALLY WHAT WE NEED. AND I THINK THE DAYS OF SILOED THIS IS THIS IS MY SANDBOX. DON'T GET INVOLVED, ESPECIALLY AS IT RELATES TO US, HAS DRAMATICALLY CHANGED. I HAD LUNCH WITH CHIEF TROY FINNER AND SHERIFF GONZALEZ. YES, SIR. CHIEF FINNER IS THE CHIEF AT HPD AND SHERIFF GONZALEZ, THE SHERIFF OF HARRIS COUNTY. AND BOTH OF THEM WERE RAVING ABOUT THIS BECAUSE WHAT IT DOES IS IT REDUCES, IT MAKES THEIR AGENCIES, MAKES THEIR DEPARTMENTS MORE EFFECTIVE SO THEY CAN FOCUS ON THAT SIDE. AND THEN WE COME IN AND DO THIS INVESTIGATION AND THEY HAD NOTHING BUT PRAISE, CHIEF, FOR YOUR GROUP. SO KEEP UP THE GOOD WORK. IT'S OUTSTANDING. THANK YOU, SIR. THANK YOU VERY MUCH. THANK YOU VERY MUCH. THANK YOU. I APPRECIATE IT. THANK YOU. THANK YOU. ALL RIGHT. THE NEXT AGENDA ITEM IS SPRING BREAK 2023. DEPUTY CHIEF DOGGETT. WELCOME. GOOD MORNING, CHAIRMAN. COMMISSIONERS. MY NAME IS DAVID DOGGETT. I'M THE DEPUTY CHIEF OF THE FIELD OPERATIONS BUREAU IN THE ENFORCEMENT DIVISION. THIS YEAR, WE HAD A SAFE AND SUCCESSFUL SPRING BREAK OPERATIONS. THE MAJORITY OF THE SPRING BREAKS RUN BETWEEN MARCH 6TH AND MARCH 24TH. AS YOU KNOW, THOUSANDS OF STUDENTS FROM ALL OVER THE UNITED STATES CONVERGE ON TEXAS BEACHES AND ENTERTAINMENT DISTRICTS TO CELEBRATE SPRING BREAK. MOST OF THE OPERATIONS THAT WE CONDUCTED UTILIZED OUR GRANT FUNDS TO PAY FOR OVERTIME. AND THESE OPERATIONS ALSO COINCIDED WITH SOUTH BY SOUTHWEST AND HOUSTON RODEO PATROLS. THE SPRING BRICK OPERATIONS. WE UTILIZED COVERT UNDERCOVER OPERATIONS. UNDERAGE COMPLIANCE OPERATIONS AND HIGH VISIBILITY OPEN INSPECTIONS. OUR COVERT OPERATIONS, OR COVERT UNDERCOVER OPERATIONS WERE USED TO IDENTIFY LOCATIONS THAT SELL ALCOHOL TO MINORS AND INTOXICATED RELATED OFFENSES. WE ALSO INCLUDED OUR COOPERATIVE RETAIL OPERATIONS, WHICH IS OUR COPS AND SHOPS AND OUR OPERATION FAKE OUT. THIS IS A PARTNERSHIP BETWEEN TABC AND THE RETAILERS TO IDENTIFY LOCATIONS THAT ARE HAVE A HIGH PROPENSITY OF VIOLATING MINOR RELATED OFFENSES AS WELL AS MINORS UTILIZING FAKE IDS. AND THEN WE ALSO TARGETED OTHER LOCATIONS FOR ORGANIZED CRIMINAL ACTIVITIES SUCH AS NARCOTICS AND HUMAN TRAFFICKING. OUR UNDERCOVER COMPLIANCE OPERATIONS WE USE TO IDENTIFY LOCATIONS THAT ARE SELLING ALCOHOL TO MINORS. THESE LOCATIONS INCLUDE MAJOR TRAVEL ROUTES TO SPRING BREAK HOTSPOTS, AS WELL AS LOCATIONS NEAR MAJOR UNIVERSITIES. PRIOR TO THE OPERATIONS BEING CONDUCTED, TPC AUDITORS WENT OUT AND EDUCATED THESE RETAILERS ON. BEING RESPONSIBLE ALCOHOL SERVERS AND SELLERS. AND LASTLY, WE CONDUCTED HIGH VISIBILITY, OPEN INSPECTIONS. THIS IS TO PROVIDE A VISIBLE PRESENCE DURING LARGE EVENTS TO DETER CRIMINAL ACTIVITY. SOME OF OUR OPERATIONAL RESULTS. WE CONDUCTED 70 UNDERCOVER OPERATIONS, 1726 UNDERAGE COMPLIANCE OPERATIONS, 780 OPEN INSPECTIONS. WE DETECTED 127 ADMINISTRATIVE VIOLATIONS, 164 CRIMINAL VIOLATIONS. WE MADE TEN ARRESTS WITH ZERO CRITICAL INCIDENTS, AND WE LOGGED 1607 HOURS OF OVERTIME. SOME COMPARISON DATA BETWEEN LAST YEAR AND THIS YEAR. IN 2022, OUR COMPLIANCE RATE WAS 91%. THIS YEAR, I'M HAPPY TO REPORT OUR COMPLIANCE RATE IS UP TO 93%. WE CONDUCTED 466 MORE UNDERCOVER UNDERAGE COMPLIANCE OPERATIONS THIS YEAR. WITH THAT, I WILL TAKE ANY QUESTIONS. YOU MAY HAVE PARTICULARLY IMPRESSED WITH IMPROVING THE RATE FROM 91 TO 93. [00:25:08] THAT'S THAT'S GREAT. IT SHOWS THAT THE MESSAGE IS GETTING OUT AND IT'S WORKED IN THE PAST. ABSOLUTELY. SO THANK YOU. THANK. OKAY. THE NEXT AGENDA ITEM IS AGENCY REORGANIZATION. GOOD MORNING, CHAIRMAN AND COMMISSIONERS. I'M KEVIN WALTERS, DIRECTOR OF COMMUNICATIONS HERE AT TABC. AND TODAY I'M GOING TO BE GOING OVER A AGENCY REORGANIZATION THAT IS HAPPENED FROM AUGUST THROUGH NOW. SO THIS HAS BEEN SOMETHING THAT'S KIND OF BEEN ROLLED OUT OVER THOSE MONTHS AS OUR NEW LEADERSHIP CAME IN. SO FIRST SLIDE HERE. I HAVE AN AGENCY REORGANIZATION FIRST. THE MAIN GOAL IS TO BETTER SERVE TEXANS. SO TO DO THAT, WHAT THE AGENCY LOOKED AT IS HOW TO BETTER ALIGN THE AGENCY AND HOW IT'S STRUCTURED WITH THE AGENCY'S MISSION AND THE ALCOHOLIC BEVERAGE CODE. SO THERE WERE THINGS DONE LIKE A SINGLE DEPUTY EXECUTIVE DIRECTOR POSITION, WHICH ALIGNS A LITTLE BIT BETTER WITH THE CODE AS WELL AS OUR MISSION, WHICH WE SUMMARIZE AS HELPING BUSINESSES AND PROTECTING COMMUNITIES. SO THERE'S NOW A DIVISION REGULATORY AFFAIRS. YOU SAW THE CHIEF OF REGULATORY AFFAIRS UP HERE EARLIER THAT WILL BE DEALS WITH THE HELPING BUSINESSES PORTION OF THINGS. AND THEN THERE'S THE ENFORCEMENT DIVISION THAT FOCUSES MORE ON THE PUBLIC SAFETY SIDE OF THINGS. SO IT'S BETTER ORGANIZED AS THAT DIVISION. I'M GOING TO GET INTO MORE DETAIL IN THE NEXT SLIDES. AND THEN THE LAST THING IS TO IMPROVE COMMUNICATION WITHIN THOSE DIVISIONS AND BETWEEN THOSE DIVISIONS SO THAT WE CAN BETTER SERVE THE INDUSTRY AND THE PUBLIC. NEXT SLIDE, PLEASE. SO THIS IS THE TIMELINE. IN AUGUST, THERE WERE SOME INITIAL CHANGES, THE RESTRUCTURING AND ACTUALLY MOVING POSITIONS AND TEAMS INTO THEIR RESPECTIVE DIVISIONS HAPPENED AND COMPLETED IN DECEMBER. AND THEN THIS MONTH THERE WERE SOME NEW NAMING CONVENTIONS ADOPTED JUST TO MAKE THINGS MORE CONSISTENT AND REFLECT THAT REORGANIZATION. AGAIN, I'M PRESENTING TODAY AS THE DIRECTOR OF COMMUNICATIONS BECAUSE THIS IS A CROSS DIVISION THING AND I'M REALLY PRESENTING ON BEHALF OF OUR EXECUTIVE LEADERSHIP AND THE DECISIONS THEY MADE THERE. AND SO THANK YOU FOR ALL THE DIVISIONS AS WELL FOR WORKING THROUGH THIS. THERE ARE A LOT OF DIVISIONS THAT PUT WORK INTO THIS. NEXT SLIDE, PLEASE. SO FIRST, THERE'S THE REGULATORY AFFAIRS DIVISION. AND SO REGULATORY AFFAIRS INCLUDES TAX MOST CUSTOMER SERVICE ORIENTED DEPARTMENTS. SO THOSE DEPARTMENTS ARE WITHIN REGULATORY AFFAIRS AND THAT'S THE LICENSING DEPARTMENT. AUDIT AND INVESTIGATIONS AND MARKETING PRACTICES. THE LICENSING DEPARTMENT. ONE THING THERE IS THE PRODUCT OR DISTRIBUTION TEAM. THE TEAM USED TO BE CALLED LABEL APPROVAL BEFORE THE SUNSET BILL IS ACTUALLY APPROVING PRODUCTS TO GO TO MARKET AFTER THOSE APPLICATIONS THAT WAS MOVED UNDER LICENSING. SO NOW LICENSING IS THE PRIMARY DEPARTMENT PROCESSING APPLICATIONS FOR THE AGENCY. AND THEN THERE'S THE AUDIT AND INVESTIGATIONS DEPARTMENT, WHICH NOW INCLUDES EXCISE TAX BECAUSE AUDIT WAS ALREADY DOING A LOT OF EXCISE TAX WORK AND LOOKING AT THOSE EXCISE TAX REPORTS. SO THEY ARE NOW THE EXCISE TAX TEAM IS NOW PART OF AUDIT AND INVESTIGATIONS AS WELL. AND THEN FINALLY THERE'S THE MARKETING PRACTICES DEPARTMENT, WHICH IS LOOKING AT THE MARKETING PRACTICES REGULATIONS, AND THEY'RE THE ONES WHO ARE GOING TO REVIEW, UPDATE AND ISSUE GUIDANCE THAT'S AUTHORIZED ON THEIR CODE CALLED THE MARKETING PRACTICES ADVISORIES. NEXT SLIDE, PLEASE. SO NOW LOOKING AT THE ENFORCEMENT DIVISION INSIDE THE ENFORCEMENT DIVISION, THERE ARE TWO MAIN PUBLIC SAFETY DEPARTMENTS. FIRST, THERE'S THE LAW ENFORCEMENT DEPARTMENT, AND SECOND, THERE'S THE BORDER INFORMATION OPERATIONS DEPARTMENT. THE LAW ENFORCEMENT DEPARTMENT INCLUDES FIELD OPERATIONS AND THE INVESTIGATIONS BUREAU. SO THIS IS YOUR TRADITIONALLY WHAT WAS CALLED THE ENFORCEMENT DIVISION IS THE LAW ENFORCEMENT DEPARTMENT. AND THEN SECONDLY, THERE'S THE BORDER INFORMATION OPERATIONS DEPARTMENT, FORMERLY KNOWN AS PORTS OF ENTRY. AND THE REASON THERE IS, AGAIN, BORDER INFORMATION OPERATIONS PRODUCTS THAT MINERS MIGHT BE TRYING TO BRING IN, STOPPING ILLICIT PRODUCTS FROM ENTERING THE TEXAS MARKET. SO THERE'S A PUBLIC SAFETY COMPONENT TO THEIR MISSION AS WELL AS TAX AND FEE COLLECTION. SO THAT IS TO BETTER COORDINATE WITH THEM AS WELL AS DURING PEAK SEASONS. A LOT OF TIMES THERE WILL BE LAW ENFORCEMENT AGENTS THAT HELP OUT ON THE BORDER, AND THIS WILL IMPROVE THAT COMMUNICATION AND COORDINATION BETWEEN THOSE TWO DEPARTMENTS. NEXT SLIDE, PLEASE. SO THIS IS THE OVERVIEW OF THE AGENCY BROKEN UP BY DEPARTMENT. I HAVE IT ON THE SLIDE HERE. IT MIGHT BE TOO LONG TO TAKE A LOOK AT. SO REALLY IT'S LOOKING AT THE REGULATORY AFFAIRS PORTION OF THINGS AND THE ENFORCEMENT PORTION OF THINGS IS THE TWO MAIN LINES. THE REST OF THE DIVISIONS ARE, AS THEY WERE REPORTING TO THE DEPUTY EXECUTIVE DIRECTOR POSITION. AND THEN YOU CAN SEE OVER TO THE RIGHT WE HAVE THE THINGS LIKE INSPECTOR GENERAL, PUBLIC AND GOVERNMENT AFFAIRS, COMMUNICATIONS AND THE OFFICE OF GENERAL COUNSEL. AND ON OUR NEXT SLIDE, BECAUSE I KNOW THAT SLIDE IS QUICK AND PEOPLE ARE GOING TO NEED TO TAKE A LONGER LOOK AT IT. NEXT SLIDE, PLEASE. YEAH, THIS ONE HERE ON THE FOOTER OF OUR PUBLIC WEBSITE. THERE IS A BUTTON FOR LEADERSHIP AND DIVISIONS SO YOU CAN FIND THE MOST UP TO DATE ORG CHART DESCRIPTIONS OF EACH OF THE DIVISIONS. WE ALSO HAVE QR CODES SO THAT YOU CAN SCAN THOSE AND THOSE CAN BE LOOKED AT ONLINE IF ANYBODY WANTS TO TAKE A CLOSER LOOK AFTERWARD. [00:30:09] THAT'S ANOTHER REASON FOR THE PRESENTATION TODAY IS JUST SO THAT, YOU KNOW, THERE ARE INDUSTRY MEMBERS THAT ARE USED TO WORKING WITH OUR AGENCY AND THE AGENCY GOES THROUGH CHANGES EVERY YEAR AND WE WANT TO MAKE SURE THAT THEY KNOW. WHERE PEOPLE ARE KIND OF LIVING WITHIN THE DEPARTMENT NOW SO THAT THEY KNOW WHO THEY'RE TALKING TO AND THEY CAN GET IN CONTACT WITH THE PROPER PEOPLE. AND WITH THAT, I AM OPEN TO TAKE ANY QUESTIONS. THANK YOU. SURE. THANK YOU. ALL RIGHT. THANK YOU VERY MUCH. THANK YOU. THANK YOU. NEXT AGENDA ITEM IS THE 88TH TEXAS LEGISLATIVE SESSION UPDATE. DIRECTOR MORELOCK AND DIRECTOR STAPLES, WELCOME. THANK YOU. GOOD MORNING, COMMISSIONERS. MY NAME IS JARED STAPLES, DIRECTOR OF PUBLIC AND GOVERNMENT AFFAIRS FOR TABC. AND I'M MIRIAM MORLOCK, INTERIM DIRECTOR OF GOVERNMENT RELATIONS. SO ON THE NEXT SLIDE, WE'LL GO INTO WHERE WE'RE AT IN THE LEGISLATIVE SESSION RIGHT NOW, WE'RE 78 DAYS INTO THE TEXAS LEGISLATIVE SESSION AND THERE ARE 62 TO GO UNTIL IT ENDS ON MEMORIAL DAY. AND SINCE WE UPDATED YOU AT THE LAST COMMISSION MEETING, THE HOUSE SPEAKER AND THE LIEUTENANT GOVERNOR HAVE ANNOUNCED ALL OF THEIR COMMITTEE ASSIGNMENTS. THE LEGISLATURE IS WELL INTO THE BUDGET PROCESS AND THE DEADLINE FOR LEGISLATORS TO FILE BILLS FOR THIS SESSION PASSED EARLIER THIS MONTH. SO NOW TABC CONTINUES TO WORK THROUGH THE STATE BUDGET PROCESS. WE'RE MONITORING BILLS THAT COULD IMPACT THE AGENCY, AND TABC IS PROVIDING RESOURCE WITNESSES AT COMMITTEE HEARINGS ON POLICY BILLS WHICH BEGAN EARLIER THIS MONTH. AND THESE EFFORTS WILL CARRY ON THROUGHOUT THE END OF SESSION. SO ON THE NEXT SLIDE, WE'LL GET INTO SOME OF OUR BUDGET ENGAGEMENTS. OVER THE LAST TWO MONTHS, THE AGENCY HAS HELD MEETINGS WITH KEY LEGISLATORS AND STAFF THAT WILL MAKE DECISIONS RELATED TO TAX BUDGET FOR THE NEXT TWO YEARS. CHAIRMAN LILY AND EXECUTIVE DIRECTOR GRAHAM HAVE TESTIFIED BEFORE THE SENATE FINANCE AND HOUSE APPROPRIATIONS COMMITTEES IN FEBRUARY TO TALK ABOUT THE AGENCY'S CRITICAL FUNDING NEEDS IN ORDER TO BETTER SERVE THE ALCOHOLIC BEVERAGE INDUSTRY OVER THE NEXT TWO YEARS. THE AGENCY IS ALSO ATTENDED VARIOUS BUDGET HEARINGS AND MEETINGS TO MONITOR THE LEGISLATURE'S ACTIVITIES AND PROVIDE RESOURCE INFORMATION WHEN NEEDED FROM THE AGENCY ON THE NEXT SLIDE. SO WHERE DOES TAX BUDGET STAND WITH THE LEGISLATURE RIGHT NOW? IN ADDITION TO THE 10% SALARY INCREASES THAT THE LEGISLATURE IS PROPOSING FOR PRETTY MUCH ALL STATE AGENCIES OVER THE NEXT TWO YEARS, TABC HAS REQUESTED FUNDING FOR FIVE EXCEPTIONAL ITEMS TOTALING 23 MILLION FOR THE NEXT TWO YEARS. AND JUST A BRIEF SUMMARY ON THOSE FIVE ITEMS. ITEM ONE WILL ALLOW TABC TO FULLY STAFF ITS CURRENTLY VACANT ENFORCEMENT POSITIONS AND THEREBY GET THE AGENCY BACK ON TRACK TO MEETING ITS PERFORMANCE MEASURES FOR THE ENFORCEMENT DIVISION, WHICH HAVE BEEN SET BY THE LEGISLATURE. ITEM TWO WILL ALLOW TABC TO PAY ITS REGULATORY STAFF AT LEVELS CLOSER TO THE STATE AUDITOR'S RECOMMENDED MIDPOINT FOR THOSE TYPES OF POSITIONS, WHICH WILL BETTER EQUIP TABC TO HIRE, TRAIN AND RETAIN KNOWLEDGEABLE STAFF TO PROPERLY IMPLEMENT A VERY COMPLICATED ALCOHOLIC BEVERAGE CODE, WHICH WILL BETTER ENABLE THE AGENCY TO EFFECTIVELY SERVE THE BUSINESS COMMUNITY AND FOR ITEMS THREE THROUGH FIVE. BASICALLY, THOSE ALLOW TABC TO COMPLETE ITS PLANNED IT TRANSFORMATION, WHICH WILL END OUR USE OF UNSUPPORTED LEGACY SYSTEMS AND BETTER ALIGN THE AGENCY WITH DEERE'S STRATEGIC PLAN AND STATE MODERNIZATION AND SECURITY GOALS. SO THIS WILL BASICALLY CREATE MORE EFFICIENCIES AT THE AGENCY AND BETTER SECURE BUSINESSES SENSITIVE INFORMATION THAT TABC IS RESPONSIBLE FOR MAINTAINING. SO WITH THOSE REQUESTS, HERE'S WHERE WE STAND. THE SENATE FINANCE COMMITTEE HAS BASICALLY CHOSEN TO FUND TO FULLY FUND TAX IT TRANSFORMATION ITEM AND THEN PARTIALLY FUND ALL OF THE OTHER ITEMS. ON THE OTHER HAND, THE HOUSE, THEY HAVE CHOSEN TO FULLY FUND ALL OF TAX EXCEPTIONAL ITEM REQUESTS EXCEPT FOR ITEM ONE. BUT ALTOGETHER, THIS BASICALLY MEANS THE LEGISLATURE IS ON TRACK TO GRANT TABC 17 OUT OF THE 23 MILLION THAT THE AGENCY HAS ASKED FOR. SO AT THIS POINT, THE SENATE FINANCE COMMITTEE STILL HAS TO GIVE A FINAL VOTE OF APPROVAL ON THEIR BUDGET BEFORE IT CAN ADVANCE TO THE FULL SENATE AND THE HOUSE BUDGET BILL. THE APPROPRIATIONS COMMITTEE APPROVED THAT LATE LAST WEEK, AND THAT WILL SOON MOVE TO THE HOUSE FLOOR FOR DEBATE. BUT AFTER BOTH CHAMBERS CONSIDER THEIR BUDGETS, THERE WILL BE A CONFERENCE COMMITTEE OF VARIOUS HOUSE AND SENATE MEMBERS TO MEET AND NEGOTIATE THEIR DIFFERENCES. SO AT THIS POINT, A LOT CAN STILL CHANGE WITH HOW THE LEGISLATURE DECIDES TO ALLOCATE THIS 17 MILLION IN FUNDING WE LOOK LIKE WE'RE GOING TO GET. BUT TABC SEEMS WELL POSITIONED TO RECEIVE THE NECESSARY RESOURCES THAT WE'VE BEEN ASKING FOR TO OPERATE THE AGENCY IN A RESPONSIBLE WAY. [00:35:08] SO WE'RE VERY ENCOURAGED AND BY THE LEGISLATURE'S DECISION SO FAR AND GRATEFUL FOR THEIR CONFIDENCE IN THE AGENCY WITH THESE DECISIONS. ON THE NEXT SLIDE, BRIEFLY. SO BUDGET RIDERS, THIS IS BASICALLY THE THING AT THE END OF AN AGENCY'S BUDGET THAT DIRECT THEY SEE HOW TO SPEND IT'S APPROPRIATED FUNDS AND THE ONLY CHANGE THERE IS THE HOUSE APPROPRIATIONS COMMITTEE ADOPTED A NEW RIDER TO GET THE AGENCY TO CONDUCT A WINERY PERMIT STUDY OVER THE NEXT FISCAL YEAR. ON THE NEXT SLIDE, THIS IS MY FINAL BUDGET UPDATE TODAY. SO THE HOUSE AND SENATE ARE ALSO IN THE PROCESS OF ADOPTING A SUPPLEMENTAL BUDGET BILL THAT WOULD. GRANT TABC ADDITIONAL FUNDS FOR THIS CURRENT FISCAL YEAR SUPPLEMENTAL BUDGET, IF ADOPTED, WOULD GIVE TABC STAFF A 5% SALARY INCREASE OVER THE NEXT TWO MONTHS OF THIS, THE LAST TWO MONTHS OF THIS FISCAL YEAR, WITH A MINIMUM INCREASE OF AT LEAST $250 PER MONTH AND EMPLOYEES JULY AND AUGUST PAYCHECKS. AND ON TOP OF THAT, THE AGENCY IS ON TRACK TO GET 2.7 MILLION TO MODERNIZE ITS FLEET OF AGING STATE VEHICLES. AND TABC IS ONE OF SEVERAL AGENCIES THAT ARE GETTING THIS VEHICLE FUNDING TO MAKE SURE WE'RE READY TO GO AND PERFORM OUR DUTIES AS AS AS REQUIRED. SO SUPPLEMENTAL BUDGET HAS BEEN ADOPTED BY THE FULL SENATE. IT'S PASSED OUT OF THE HOUSE APPROPRIATIONS COMMITTEE AND WILL NEXT BE DEBATED BY THE FULL HOUSE. AND NOW I WILL TURN THE MIC OVER TO MARIANNE MORLOCK. THANK YOU. SO IN JANUARY AND FEBRUARY, WE OBVIOUSLY SPENT A LOT OF TIME AND FOCUS ON BUDGET MEETINGS AND INTRODUCTIONS, AND WE'RE GOING TO KEEP THAT MOMENTUM GOING. BUT IN MARCH, THE LEGISLATURE ALSO STARTED HEARING BILLS IN OTHER COMMITTEES, AND THAT WILL CONTINUE THROUGH EARLY MAY. AND WE MONITOR ALL THE HEARINGS AND WE ATTEND, OBVIOUSLY IF WE'RE INVITED TO. BUT JUST IN CASE THAT WE IF WE THINK THERE'S A CHANCE THAT WE WOULD BE CALLED UPON TO ANSWER QUESTIONS OR PROVIDE INFORMATION, THEN WE MAKE SURE AND HAVE A PRESENCE. SO BILLS IMPACTING THE ALCOHOLIC BEVERAGE CODE HAVE BEEN HEARD IN THE HOUSE LICENSING AND ADMINISTRATIVE PROCEDURES COMMITTEE, AND THEY'VE BEEN REFERRED TO SENATE STATE AFFAIRS COMMITTEE. BUT THUS FAR NO ALCOHOL BILLS HAVE BEEN HEARD IN THE SENATE. SO I ASSUME IT'S COMING. BUT SO THE MEETINGS THAT ARE LISTED ON THE SLIDE REPRESENT THOSE THAT OCCURRED IN FEBRUARY AND MARCH ONLY. AND REALLY THE FOCUS THERE WAS THOSE THE LICENSING AND ADMINISTRATIVE PROCEDURES AND SENATE STATE AFFAIRS. AND IT WAS AN OPPORTUNITY TO MEET WITH THOSE SENATORS AND REPRESENTATIVES AND INTRODUCE EXECUTIVE DIRECTOR GRAHAM, TALK ABOUT THE AGENCY AND WHAT WE DO, ANSWER ANY QUESTIONS AND THEN MAKE SURE THEY KNEW THAT WE WERE THERE FOR THEM AS A RESOURCE. NEXT SLIDE, PLEASE. SO WE'RE NOT DONE YET. BUT THE 88TH LEGISLATURE HAS ALREADY MADE ITS MARK. SO THEY FILED JUST UNDER 8000 BILLS. THAT NUMBER, 7070. IT'S GONE UP AND THE AVERAGE IS ABOUT 6800. SO. OKAY. AND WE FELT A FLURRY THERE AT THE END. BUT WE MONITOR ALL THE BILLS THAT COULD HAVE A POTENTIAL IMPACT ON THE AGENCY IN ANY WAY. SO AS OF THAT MARCH 10TH FILING DEADLINE, WE'RE TRACKING ABOUT 300 BILLS. SO 40 HAVE A DIRECT IMPACT ON THE ALCOHOLIC BEVERAGE CODE. ANOTHER 40 HAVE A CONNECTION TO THE INDUSTRY, LIKE THROUGH BYOB LEGISLATION OR HUMAN TRAFFICKING OR HAVE A SIGNIFICANT IMPACT ON THE AGENCY. LIKE THERE'S A BILL THAT REQUIRES YOU TO EITHER REJECT AN APPLICANT OR HIRE THEM WITHIN 30 DAYS OF RECEIVING AN APPLICATION. SO ITEMS LIKE THAT. SO THOSE 80 OR SO BILLS ARE THE ONES THAT YOU ALL RECEIVED IN AN EMAIL WEEK AND A HALF AGO. AND THERE'S A SUMMARY OF EACH ONE. IN ADDITION TO THOSE 80 OR SO WE HAVE ANOTHER 60 RELATED TO LAW ENFORCEMENT. SO ANYTHING TO DO WITH THE COMMISSION PEACE OFFICER AT THE STATE LEVEL. SO WHETHER IT'S TRAINING OR REQUIREMENTS OR ANY AUTHORITIES AND THEN ANOTHER 170 OR SO THAT IMPACT ALL STATE AGENCIES, NOT SPECIFICALLY TABC FROM BENEFITS TO CONTRACTING TO TECHNOLOGY. NEXT SLIDE, PLEASE. SO YOU ALL GOT THE DETAILS IN THAT EMAIL ABOUT A WEEK AND A HALF AGO, THIS SLIDE. AND THE NEXT IS A SUMMARY OF THE BILLS THAT IMPACT THE ALCOHOLIC BEVERAGE CODE. AND IT'S DIVIDED BY TIER. SO THE MANUFACTURING DISTRIBUTION IN THE NEXT SLIDE HAS THE RETAIL TIER. [00:40:01] AND I CAN ANSWER ANY QUESTIONS, BUT WE MONITOR THEM AS THEY GO THROUGH THE PROCESS. RIGHT NOW WE'RE SORT OF IN THE COMMITTEE PHASE. THEN THEY'LL GO TO THE HOUSE OR SENATE FLOOR FOR DEBATE. IF THEY GET THAT FAR, AND THEN IT'LL CROSS OVER TO THE OTHER CHAMBER. AND SO WE MONITOR EVERY STEP OF THE WAY TO MAKE SURE THAT ANY OF THE CHANGES MADE ALONG THE WAY DON'T IMPACT US OR HOW THEY IMPACT US THROUGH TECHNOLOGY OR FISCAL IMPLICATIONS OR OPERATIONS. AND WE HAVE 61 DAYS TO GO. AND SO APRIL AND MAY WILL BE A LOT OF FUN. SO I'M GOING TO TURN IT BACK TO JARED SO THAT HE CAN TALK ABOUT SOME MORE EXCITING NEWS. SO WE HAVE JUST ONE FINAL ITEM. AS YOU MAY RECALL, CHAIRMAN LILY WAS REAPPOINTED BY GOVERNOR ABBOTT IN JANUARY, JUST A FEW DAYS BEFORE THE LEGISLATIVE SESSION BEGAN, AND NOW CHAIRMAN LILY'S REAPPOINTMENT IS MOVING THROUGH THE SENATE CONFIRMATION PROCESS. EARLIER THIS MONTH, HE HAD A HEARING WHERE HE APPEARED BEFORE THE SENATE NOMINATIONS COMMITTEE PROVIDED TESTIMONY ABOUT HIS SERVICE OVER THE LAST FEW YEARS AND ANSWERED VARIOUS QUESTIONS FROM SENATORS ON THE COMMITTEE. AND JUST YESTERDAY, WE FOUND OUT THAT THE COMMITTEE UNANIMOUSLY, UNANIMOUSLY APPROVED THE CHAIRMAN LILY'S APPOINTMENT. AND SO NOW THAT WILL GO TO THE FULL SENATE. BUT BECAUSE CHAIRMAN LILY WAS APPOINTED A FEW DAYS BEFORE THE SESSION BEGAN, IT'S A RECESS APPOINTMENT. AND SO HE'S ELIGIBLE TO TAKE THE OATH OF OFFICE NOW. AND SO HE'LL BE DOING THAT LATER TODAY. CONGRATULATIONS, MR. CHAIRMAN. AND THAT'S ALL WE HAVE FOR YOU. UNLESS THERE ARE ANY QUESTIONS ABOUT THE BUDGET OR BILLS MOVING THROUGH THE LEGISLATIVE PROCESS. I DO HAVE A QUESTION, IF I COULD JUMP IN. FIRST OFF, A COMMENT. CONGRATULATIONS. I KNOW A LOT OF HARD WORK WENT INTO THIS AND WE'RE JUST IN SUCH A GREAT POSITION. SO SO FIRST OFF, CONGRATULATIONS AND THANK YOU FOR ALL THE HARD WORK. SECOND, UM, LOOKING AT ITEM FOR THE EXCEPTIONAL ITEM FOUR, WHICH IS THE EHM SUBSCRIPTION HOUSE FULLY APPROVED IT SENATE FINANCE COMMITTEE IS LOOKING AT ONLY PARTIALLY FUNDING. SO ONE OF THE 2.4 MILLION. HOW DOES THAT AFFECT THAT SUBSCRIPTION? MY UNDERSTANDING OF THE SUBSCRIPTION IS THAT THAT IS WHAT OUR THIRD PARTY VENDOR IS REQUIRING TO KEEP AIMS UP AND RUNNING. SO IF THAT FUNDING DOES NOT COME THROUGH, WHAT DOES THAT DO FOR US AS FAR AS THE DEPLOYMENT OF NOW THIS SOFTWARE THAT WE'RE COMPLETELY DEPENDENT UPON? SO LIKE YOU SAID, THAT DOES INCLUDE SOME OF THESE ITEMS ARE ABBREVIATED. SO IT IS THE SUBSCRIPTION COSTS FOR TECH EMPLOYEES TO ACTUALLY USE THE SYSTEM AS IT WAS DESIGNED, AS IS WHAT IS RECOMMENDED BY DER AND STATE AGENCIES GOING FORWARD IN NEW TECHNOLOGY. BUT IT ALSO INCLUDES SOME MAINTENANCE COSTS, MAINTENANCE COSTS OR TO UPKEEP THE SYSTEM. SO THERE'S A LITTLE BIT OF THAT IN THERE. BUT WE HAVE OUR BUDGET FOLKS INTERNALLY, OUR CFO LOOKING AT THE FUNDING AS IT'S LAID OUT. AND BASED ON THE THE SENATE'S PROPOSAL, THE HOUSE'S PROPOSAL, WE'RE CONSIDERING HOW THAT WOULD IMPACT THE AGENCY, WHAT WE NEED TO DO TO MAKE THINGS WORK OVER THE NEXT TWO YEARS. AND WE'LL HAVE SOME FOLLOW UP CONVERSATIONS WITH THE BUDGET DECISION MAKERS AT THE CAPITOL TO MAKE SURE WE'RE GOING TO BE, YOU KNOW, TAKING CARE OF TO EFFECTIVELY PERFORM OUR DUTIES. SO WE'RE WE'RE CURRENTLY ANALYZING WE JUST GOT THIS THE SENATE'S INITIAL DECISIONS YESTERDAY. SO WE'RE STILL TAKING A LOOK AT THAT. BUT WE CAN GIVE YOU AN UPDATE ON THAT. COMMISSIONER, WHAT HAPPENS IF WE IF WE END UP WITH JUST A 1 MILLION WHEN WE NEED THE 2.4, WE'LL HAVE TO TAKE THAT MONEY OUT OF SALARY DOLLARS AND LEAVE OPENINGS AND FTES TO BE ABLE TO PAY FOR IT. THANK YOU. YES, SIR. OKAY. YOU, MR. MARINO. ALL RIGHT. THANK YOU ALL VERY MUCH. THANK YOU. THANK YOU ALL. THANK YOU. ALL RIGHT. SO NEXT AGENDA ITEM IS PUBLIC COMMENT. [4. Public Comment] GENERAL COUNCIL PERSON. IS ANYONE SIGNED UP FOR COMMENT? WE DO. WE HAVE ONE PUBLIC COMMENTER SOMEBODY I THINK EVERYBODY WILL KNOW. CLERK SMITH. JAMES. GOOD MORNING, CHAIRMAN LILLY, INTERIM CHAIRMAN BOATWRIGHT, COMMISSIONERS. I WANT TO ADD ON TO EVERYTHING THAT AMANDA AND THOMAS SAID ABOUT MARTIN WILSON AND HIS SERVICE HERE AT THE AGENCY AND EMPHASIZE HOW MUCH OF A SOURCE OF CONSTANCY. MARTIN'S BEEN HERE, RIGHT? [00:45:02] CERTAINLY FOR ME. BUT THE LEGAL SERVICES DIVISION AS A WHOLE AND FOR THE FIVEOR CHAIRMAN, YOU REMEMBER WHEN YOU CAME ON BOARD IN 2017, YOU BROUGHT ME IN NEW LEADERSHIP ON BOARD A COUPLE OF MONTHS LATER. IT WAS TUMULTUOUS, RIGHT. AND THIS IS NOT AN EASY INDUSTRY TO REGULATE. IT'S COMPLICATED. IT'S TRICKY. MARTIN EVEN BEFORE I CAME ON BOARD, WAS ALREADY A SOURCE OF INFORMATION FOR ME. IT WAS ALREADY EXTREMELY HELPFUL FOR GUIDING ME THROUGH NOT JUST THE AGENCY, BUT BUT CERTAINLY THE LAW. I'LL GIVE A COUPLE OF EXAMPLES. FIRST OF ALL, BEER AND ALE. THAT USED TO BE A THING. MARTIN EXPLAINED IT. IT'S FORTUNATELY MOVED, MOVED ON, IN MY OPINION, FORTUNATE. AND I REMEMBER TALKING TO HIM ABOUT THE MINI BAR PERMIT AND HOW IS IT THAT TEXAS HAS ITS OWN SEPARATE MINI BAR PERMIT? AGAIN, THAT'S NO LONGER THE CASE. THE SUNSET BILL MOVED ON FROM THAT. I THINK MOST RELEVANT FOR YOU ALL, THOUGH, I JUST WANT TO HIGHLIGHT THAT MARTIN ALWAYS HAD Y'ALL'S BEST INTERESTS FRONT AND CENTER. HE HAD AN IMPORTANT ROLE AS SENIOR COMMISSION COUNSEL. I THINK HE FILLED THAT ROLE VERY, VERY WELL. AND HE DIDN'T EVER GET RECOGNITION OR CREDIT FOR IT BECAUSE THAT'S NOT WHAT THAT POSITION IS FOR. BUT IT WAS CERTAINLY SOMETHING THAT I THINK HE DID EFFECTIVELY. SO, YOU KNOW, I THINK, MARTIN, I JUST WANT TO SAY ON BEHALF OF CERTAINLY MYSELF PERSONALLY AND PROFESSIONALLY, AND I DON'T SPEAK FOR YOU GUYS, BUT I THINK IT'S PROBABLY COMMONLY ACCEPTED THAT YOU WERE REALLY FANTASTIC FOR THE AGENCY. AND AGAIN, FOR ME, I'M IN A BETTER I'M A BETTER ATTORNEY FOR HAVING WORKED WITH YOU FOR THESE YEARS AND CONTINUE TO PROBABLY PICK YOUR BRAIN ON THINGS. BUT JUST ON THE OTHER SIDE OF THE LEDGER NOW THAT I'M IN PRIVATE PRACTICE. SO THANK YOU VERY MUCH. THANK YOU. I APPRECIATE THAT. THANK YOU VERY MUCH, CLARK. I FULLY AGREE. I'VE APPRECIATED MR WILSON'S HELP IN THE FOUR YEARS THAT I'VE BEEN HERE. NOW, I APOLOGIZE FOR THE COMPLETE AMATEUR HOUR OF GIVING YOU YOUR YOUR YOUR PIECES OF RECOGNITION. IF ONE MORE CERTIFICATE TO TO TO GIVE YOU SO SO THE ACCOLADES WILL WILL CONTINUE AS THEY SHOULD FOR FOR YOU THANK YOU VERY MUCH FOR ALL YOU'VE DONE FOR THE AGENCY. THANK YOU. ALL RIGHT. THE NEXT AGENDA ITEM WILL BE. [5. Orders] FOR ADJUSTING PRODUCTION LIMITS UNDER ALCOHOLIC BEVERAGE CODE. SECTION 62.122. SEEING. SENIOR COUNSEL CHARITY FOR YEARS. YES. GOOD MORNING, CHAIRMAN. COMMISSIONERS. THANK YOU FOR HAVING ME. FOR THE RECORD, I'M MATTHEW CHERRY, SENIOR COUNSEL FOR THE AGENCY. SO THE AGENDA AGENDA ITEM UP FOR YOU IS A ORDER CERTIFYING THE ANNUAL PRODUCTION LIMIT UNDER SECTION 60 2.122 OF THE ALCOHOLIC BEVERAGE CODE. PURSUANT TO SUBSECTION F OF THAT SECTION, THE COMMISSION BY RULE OR AN ORDER SHALL ANNUALLY ADJUST THE PRODUCTION LIMIT PRESCRIBED IN SUBSECTION C, SUBSECTION TWO IN AN AMOUNT THAT IS EQUAL TO THE PERCENTAGE OF THE STATE'S POPULATION GROWTH FOR THE PREVIOUS YEAR AS DETERMINED BY THE STATE DEMOGRAPHER. LAST YEAR, THIS BODY ISSUED AN ORDER CERTIFYING THE PRODUCTION LIMIT TO BE A TOTAL OF 184,406 BARRELS, ACCORDING TO THE STATE DEMOGRAPHER FROM JANUARY 1ST, 2022 THROUGH DECEMBER 31ST, 2022. THE POPULATION FOR THE STATE OF TEXAS GREW BY 1.35%. SO APPLYING THAT 1.35% POPULATION GROWTH TO THE PRODUCTION LIMIT THAT WAS SET LAST YEAR AT THE MARCH MEETING WOULD RESULT IN AN INCREASE OF 2489 BARRELS FOR A TOTAL OF 186,895 BARRELS. SO AT THIS TIME, I WILL TAKE ANY QUESTIONS THAT YOU HAVE. GREAT. THANK YOU. COMMISSIONERS, DO YOU ALL HAVE ANY QUESTIONS OR COMMENTS? OKAY. I MOVE TO APPROVE THE ORDER ADJUSTING PRODUCTION LIMITS UNDER ALCOHOLIC BEVERAGE CODE. SECTION 60. 2.122. IS THERE A SECOND TO THIS MOTION? SECOND. MR MORENO. THANKS A LOT. WE'LL NOW VOTE. ALL ABOUT. THANKS. OUR VOTES HAVE BEEN RECORDED AND THE MOTION IS APPROVED. AND NOW WE TURN TO CONSIDERATION AND POTENTIAL ACTION ON ADOPTION OF NEW RULE 33.81 PURCHASE OF ALCOHOLIC BEVERAGES FOR A TEMPORARY EVENT. [7. Rules] GENERAL COUNSEL PERSON. THANK YOU, MR. CHAIRMAN. COMMISSIONERS, FOR THE RECORD, JAMES PEARSON, GENERAL COUNSEL. [00:50:01] IN LAST YEAR'S NOVEMBER MEETING, YOU VOTED TO PROPOSE NEW RULE 33.81 TO CLARIFY WHERE MIXED BEVERAGE PERMIT HOLDERS CAN PURCHASE ALCOHOL FOR TEMPORARY EVENTS IN A COUNTY OTHER THAN WHERE THEIR PRIMARY LICENSED PREMISES IS LOCATED, AND TO COVER WHAT RECORDKEEPING REQUIREMENTS WOULD BE FOR THE SALES OF THE TEMPORARY EVENT. STAFF IS NOW RECOMMENDING THAT YOU ADOPT THE RULE WITH ONLY ONE MINOR EDIT TO THE PROPOSED TEXT, WHICH CLARIFIES AN INTERNAL REFERENCE TO THE ALCOHOLIC BEVERAGE CODE. WE RECEIVED ONLY ONE COMMENT ON THE PROPOSAL AND IT WAS FROM A REPRESENTATIVE OF THE SONORA ECONOMIC DEVELOPMENT CORPORATION. THAT COMMENT TOOK ISSUE WITH ONE PORTION OF THE RULE, SPECIFICALLY THE PROVISION THAT STATES THAT THE RULE DOES NOT PROHIBIT A MIXED BEVERAGE PERMITTEE FROM TRANSPORTING ALCOHOLIC BEVERAGES THAT ARE ALREADY IN STOCK TO THE TEMPORARY EVENT. THE COMMENTER REQUESTED THAT THIS PROVISION BE REMOVED SO THAT PERMITS WOULD BE REQUIRED TO PURCHASE ALL THEIR ALCOHOL AT THE IN THE COUNTY WHERE THE TEMPORARY EVENT WOULD BE HELD. THE COMMENTER WAS GENERALLY CONCERNED ABOUT THE LOSS OF TAX REVENUE IF PERMANENTES WERE ALLOWED TO BRING ALCOHOL INTO TO THE TEMPORARY EVENT FROM OUTSIDE THE COUNTY. STAFF DOES NOT RECOMMEND MAKING ANY CHANGE TO THE RULES IN RESPONSE TO THIS COMMENT. MIXED BEVERAGE PERMITS ARE GENERALLY AUTHORIZED TO TRANSPORT ALCOHOLIC ALCOHOL TO THEIR PERMITTED PREMISES, AND WE ALSO BELIEVE THERE WOULD BE A NEGATIVE ECONOMIC IMPACT ON PERMATEASE IF THEY WEREN'T ALLOWED TO TRANSPORT ALCOHOL THAT THEY ALREADY HAVE IN STOCK TO THESE TEMPORARY EVENTS. SO I'M HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE ON THIS. BUT AGAIN, STAFF IS RECOMMENDING THAT YOU ALL MOVE FORWARD WITH THE ADOPTION WITH THE ONE MINOR EDIT THAT I ALREADY TALKED ABOUT. COMMISSIONERS, ANY QUESTIONS OR COMMENTS? I'VE ONE QUESTION HAVE YOU SPOKEN WITH, WITH, WITH, WITH THE COMMENTER ABOUT OUR REASONING FOR REJECTING THE PROPOSED REMOVAL OF OF THAT THAT ITEM? YES, SIR, I DID. I EXCHANGED EMAILS WITH HER AND CLARIFIED HER ABILITY TO COME HERE AND OFFER COMMENTS. SHE DECLINED AND WAS APPRECIATIVE THAT STAFF HAD CONSIDERED HER COMMENT AND SHE SEEMED TO UNDERSTAND WHY WE WEREN'T WE WEREN'T RECOMMENDING TO THE FULL COMMISSION THAT THAT HER COMMENT RESULT IN ANY CHANGES. FAIR ENOUGH. ALL RIGHT. THANKS. I MOVED TO APPROVE ADOPTION OF NEW RULE 33.81 PURCHASE OF ALCOHOLIC BEVERAGES FOR A TEMPORARY EVENT AS RECOMMENDED BY STAFF. IS THERE A SECOND? SECOND. THANKS, COMMISSIONER ATKINS. WE WILL NOW VOTE. ALL EVENTS HAVE BEEN RECORDED AND THE MOTION IS APPROVED. THE NEXT AGENDA ITEM IS CONSIDERATION AND POTENTIAL ACTION ON PUBLICATION OF PROPOSED RULE. PROPOSED AMENDED. CHAPTER 50 GENERAL COUNSEL STAFF IS ALSO PROPOSING AMENDMENTS TO SEVERAL RULES IN CHAPTER 50 OF THE ADMINISTRATIVE CODE THAT THESE RULES COVER CELLAR SERVER AND DELIVERY DELIVERY DRIVER TRAINING. THE SPECIFIC RULES AT ISSUE ARE SECTIONS 50.4 0.15, 0.17, 0.19, 0.20 0.23 AND POINT 2031. AND THE PROPOSED CHANGES ARE SIMPLY A CLEANUP. THEY FIX GRAMMATICAL ERRORS AND CORRECT THE TITLE OF ONE RULE. THAT'S IT. WE DON'T EXPECT ANY ISSUES OR CONTROVERSIES WITH THIS PROPOSAL FROM THAT OR ANY QUESTIONS YOU MAY HAVE. COMMISSIONERS. ANY QUESTIONS OR COMMENTS, MR. CHAIRMAN? NO. ALL RIGHT. HEARING NONE, I MOVE TO APPROVE PUBLICATION OF PROPOSED AMENDED CHAPTER 50 AS RECOMMENDED BY STAFF. IS THERE A SECOND? SECOND. THANK YOU, COMMISSIONER MARINO. WE WILL NOW VOTE. ALL. GREAT. OUR VOTES HAVE BEEN RECORDED. MOTION IS APPROVED. NEXT AGENDA ITEM IS CONSIDERATION OF POTENTIAL ACTION ON PUBLICATION OF CHAPTER 50 RULE REVIEW. GENERAL COUNSEL PERSON STAFF IS RECOMMENDING THAT YOU INITIATE THE STATUTORILY MANDATED FOUR YEAR REVIEW OF THE FOLLOWING RULES IN CHAPTER 50 SECTIONS 50.10 .30.40.50.8 50.12 THROUGH POINT 20, 50.23 AND 50.26 THROUGH 50.33. DURING THIS REVIEW, WE WILL CONSIDER WHETHER THE REASONS FOR INITIALLY ADOPTING THESE RULES CONTINUE TO EXIST AND WHETHER THEY SHOULD BE RE ADOPTED. AND YOU'LL NOTE THAT SOME OF THESE RULES THAT WERE THAT ARE UNDER PROPOSED REVIEW ARE ALSO PROPOSED FOR AMENDMENT IN THE PREVIOUS PREVIOUS ONE. [00:55:01] THE APA EXPRESSLY ACKNOWLEDGES THAT YOU CAN YOU CAN DO BOTH AT THE SAME TIME. SO WITH THAT, ANY QUESTIONS? GREAT COMMISSIONERS. ANY QUESTIONS? ALL RIGHT. I MOVED TO APPROVE PUBLICATION OF CHAPTER 50 RULE REVIEW AS RECOMMENDED BY STAFF. IS THERE A SECOND? SECOND. THANK YOU, COMMISSIONER ATKINS. WE'LL NOW VOTE. ALL VOTED THANKS. OUR VOTES HAVE BEEN RECORDED. THE MOTION IS APPROVED. THANK YOU, SIR. WE NEED TO GO BACK TO SECTION. I THINK IT'S THE. NO. OH, I APOLOGIZE. I DID MISS. [6. Orders on Proposals for Decision] AGENDA ITEM 6.1. CONSIDERATION OF POTENTIAL ACTION ON ORDER ON PROPOSAL FOR DECISION REGARDING EXTRAORDINARY HOOKAH LOUNGE. SO IN VIEW OF THAT, THE NEXT AGENDA ITEM IS CONSIDERATION OF POTENTIAL ACTION ON ORDER, ON PROPOSAL FOR DECISION REGARDING EXTRAORDINARY HOOKAH LOUNGE LLC. SO A DOCKET NUMBER 458222492. SENIOR COMMISSIONER, COMMISSION COUNSEL WILSON. THANK YOU. I FEEL LIKE THE BAD PENNY THAT WON'T GO AWAY, BUT THIS WILL BE THE FINAL NAIL IN MY COMMISSION COFFIN. SO THIS IS THIS CASE IS AN APPLICATION FOR TRANSFER OF LICENSE FROM A BAR IN HOUSTON TO CHANGE THE LOCATION OF THAT BAR TO RICHMOND. IT WAS PROTESTED BY THE POLICE CHIEF IN RICHMOND BECAUSE IS THE PROPOSED LOCATION IS A HIGH CRIME AREA. THE ADMINISTRATIVE LAW JUDGE LOOKED AT THE EVIDENCE PRESENTED BY THE CHIEF OF POLICE AND AGREED THAT THAT WOULD BE A BAD LOCATION AND THE ALJ RECOMMENDED DENIAL OF THE PETITION OF THE APPLICATION FOR TRANSFER. AND THAT'S MY RECOMMENDATION AS WELL, THAT THERE'S AN ORDER PREPARED WITH THAT TO ACCEPT TO ADOPT THE FINDINGS AND CONCLUSIONS PROPOSED BY THE ADMINISTRATIVE LAW JUDGE AND DENY THE APPLICATION. BIERI. DO YOU HAVE ANY QUESTIONS OR COMMENTS? OKAY. I MOVE THAT WE ADOPT THE FINDINGS OF FACT AND CONCLUSIONS OF LAW CONTAINED IN THE PROPOSAL FOR DECISION AND THAT WE AUTHORIZE MYSELF OR CHAIRMAN LILLY TO SIGN THE ORDER ON BEHALF OF THE COMMISSION. IS THERE A SECOND TO THIS MOTION? SECOND. THANK YOU, COMMISSIONER MARINO. WE WILL NOW VOTE. ALSO. GOOD. THANKS. OUR VOTES HAVE BEEN RECORDED AND THE MOTION IS APPROVED. THANK YOU. THANKS. RIGHT NOW WE TURN TO ITEM 8.1 ON THE AGENDA. [8. Executive Session] EXECUTIVE SESSION. THE COMMISSION WILL NOW GO INTO EXECUTIVE SESSION UNDER GOVERNMENT CODE SECTIONS 5510740.071 AND 0.089. THE REGULAR OPEN SESSION OF THE TEXAS ALCOHOLIC BEVERAGE COMMISSION WILL BE IN RECESS. THE TIME IS NOW. 11:29 A.M. ON TUESDAY, MARCH 28TH, 2023. OKAY. ALL RIGHT. THE TEXAS ALCOHOLIC BEVERAGE COMMISSION HAS CONCLUDED ITS EXECUTIVE SESSION AND IS NOW IN REGULAR OPEN SESSION. THE DATE IS TUESDAY, MARCH 28TH, 2023, AND THE TIME IS 11:43 A.M.. NEXT IS POTENTIAL ACTION ON ITEMS DISCUSSED IN EXECUTIVE SESSION. NO ACTION WILL BE TAKEN. THE NEXT SCHEDULED COMMISSION MEETING DATE IS PLANNED FOR 23RD, BUT WE MAY LOOK AT CHANGING THAT. [9. Closing Items] ALL RIGHT. CURRENTLY PENCILED IN FOR MAY 23RD, BUT WE MIGHT END UP CHANGING IT. WE'LL KEEP YOU ALL POSTED. COMMISSIONERS, DO YOU ALL HAVE ANY CONFLICTS IN IN LATE MAY OR EARLY JUNE WE NEED TO KNOW ABOUT. OKAY. WE'LL WE'LL KEEP YOU POSTED. BUT FOR NOW. YES, SIR. GO FOR IT. LOOKING AT THE 23RD WOULD NOT BE IDEAL FOR ME EITHER. SO IF WE WERE TO SWITCH ANOTHER DATE, ALMOST ANY OTHER DATE WOULD BE BETTER FOR ME THAN THE 23RD. OKAY. THANKS FOR LETTING US KNOW. ALL RIGHT. WE'LL KEEP YOU ALL POSTED. THE MEETING WILL PROBABLY NOT BE ON THE ON THE 23RD. AND FINALLY IS ADJOURNMENT. THE TIME IS NOW. 11:44 A.M. AND WE ARE ADJOURNED. [01:00:01] THANK YOU. THANK YOU. THANKS, MAN. THANK YOU. EXCELLENT MEETING EVERYONE. * This transcript was compiled from uncorrected Closed Captioning.