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[00:00:02]

WE'RE GOING TO, LADIES AND GENTLEMEN, PLEASE TAKE YOUR PLACES.

THE FUN IS ABOUT TO BEGIN.

MAKE SURE ALL HANDS AND ARTICLES ARE SAFELY PUT IN THE GOOD RIGHT NOW.

WE'RE GOING TO START. OKAY.

THANK YOU ALL FOR COMING.

SO I, OUR FEARLESS CHAIRMAN IS NOT ABLE TO BE HERE TODAY, SO I AM GOING TO DO MY BEST TO TO SIT IN.

I'M GOING TO START WITH SOME OPENING REMARKS AND THEN GET RIGHT TO THE REALLY FUN STUFF AND THEN WE'LL ROLL INTO, OBVIOUSLY, OUR AGENDA.

SO GOOD MORNING, EVERYONE.

ON BEHALF OF ALL OF US AT TEXAS ALCOHOL BEVERAGE COMMISSION, I'D LIKE TO THANK YOU FOR JOINING US AT THIS MORNING'S MEETING.

I'M DEBORAH MARINO.

THE MONTH OF MAY IS TRADITIONALLY A VERY BUSY MONTH, ESPECIALLY HERE AT TABC, ESPECIALLY WHEN THE TEXAS LEGISLATURE IS IN TOWN.

AS MANY OF YOU KNOW, OUR ELECTED LEADERS ARE WRAPPING UP THEIR REGULAR SESSION OF THE 88TH TEXAS LEGISLATURE WITH A FEW BILLS AFFECTING OUR INDUSTRY POISED TO BECOME LAW.

WE'LL HEAR AN UPDATE ON THE SESSION AT TODAY'S MEETING.

AND I EXPECT WE'LL PROVIDE A FULL WRAP UP OF THE SESSION AND ITS IMPACT ON THE ALCOHOLIC BEVERAGE INDUSTRY LATER THIS SUMMER.

WE'LL ALSO BE HEARING THE LATEST ON THE AGENCY'S EFFORTS TO PROMOTE ALCOHOL SAFETY EDUCATION BOTH WITHIN MEMBERS OF THE PUBLIC AS WELL AS OUR PARTNERS IN LAW ENFORCEMENT.

WE'VE RECENTLY UPGRADED OUR ABILITY TO PROVIDE THESE FREE MATERIALS TO THE PUBLIC, AND I'M LOOKING FORWARD TO SHARING MORE INFORMATION WITH YOU AT TODAY'S MEETING.

FINALLY, AND MOST IMPORTANTLY, THIS MORNING, WE HONOR OUR AGENCY'S GREATEST RESOURCE, OUR EMPLOYEES.

TODAY, WE RECOGNIZE FOUR OF OUR NUMBER FOUR OF OUR NUMBERS WHO HAVE SERVED THE PUBLIC FOR EXTRAORDINARY 25 YEARS.

SO THAT'S A TYPO. THAT WASN'T ME, JUST LET YOU KNOW.

AS WELL AS FORMER AGENTS WHO JOIN OUR HALL OF HONOR FOR THEIR ONGOING CONTRIBUTIONS TO MAKING TABC IN TEXAS A BETTER PLACE.

IN CLOSING, I'D ALSO LIKE TO TAKE A MOMENT TO MARK THE UPCOMING MEMORIAL DAY HOLIDAY.

MANY OF US HERE IN THE AGENCY AND ACROSS THE STATE OF TEXAS HAVE EITHER SERVED OR HAVE FAMILY MEMBERS WHO HAVE SERVED IN THE ARMED FORCES.

IT GOES WITHOUT SAYING THAT FREEDOM IS NOT FREE, AND THIS HOLIDAY IS OUR OPPORTUNITY TO HONOR AND REMEMBER THOSE WHO HAVE MADE THE ULTIMATE SACRIFICE SO THAT WE CAN HAVE OUR FREEDOM TODAY.

ALL OF US AT TABC ARE GRATEFUL TO OUR TROOPS FOR ALL THEY CONTINUE TO DO IN SUPPORT OF OUR COUNTRY AND OUR LIBERTY.

AND WITH THAT, I'LL TURN IT OVER TO MY COMMISSIONERS FOR ANY REMARKS.

THANK YOU. HEY, I'M BEING SAID.

GREAT. OPEN RECORDING IN PROGRESS.

I'VE GOT TO DO IT AGAIN. CHECK.

ALL RIGHT. SO WE'VE CALLED THE MEETING TO ORDER AT 10:32.

UM. WE HAVE A QUORUM.

YES. EXCELLENT.

AND NOW IF WE COULD ALL STAND FOR THE PLEDGE OF ALLEGIANCE.

ALL RIGHT. NOW WE MOVE OVER TO THE APPROVAL OF THE MINUTES.

IF WE COULD LOOK AT THAT.

IF WE'VE HAD A MOMENT TO TAKE A LOOK AT THOSE, I MAKE A MOTION TO APPROVE THE COMMISSIONERS MEETING MINUTES ON MARCH THE 28TH OF 2023.

SO I SO MOVE. IS THERE A SECOND? SECOND. THANK YOU, COMMISSIONER MACK.

WE WILL NOW VOTE.

ALL THE. OKAY.

OKAY. THE MINUTES HAVE BEEN APPROVED AS WRITTEN.

OUR VOTES HAVE BEEN RECORDED.

THANK YOU. OKAY.

[2. Recognitions]

SECOND IS OUR RECOGNITIONS.

UM, DO WE HAVE DR.

FLETCHER HERE? THERE YOU ARE. YOU JUST PROMOTED ME, THOUGH? OH. OH, I DID.

SORRY. I THINK I NEED BETTER GLASSES.

DR. DIRECTOR FLETCHER.

JUST KIDDING. ALL RIGHT.

GOOD MORNING, COMMISSIONERS. FOR THE RECORD, I'M AMANDA FLETCHER, DIRECTOR OF HUMAN RESOURCES.

AND TODAY I HAVE THE PRIVILEGE OF INTRODUCING THE HONOREES FOR THE HALL OF HONOR.

SO I'LL ASK RON TO JOIN ME INSTEAD OF.

[00:05:01]

YOU'RE THE NEXT ONE. OH, OKAY.

PERFECT. I'M SORRY. WE REHEARSED.

TODAY. IT'S ALL GOOD.

OH, WAIT. I'M SORRY.

OH, WE HAD HALL OF HONOR ON DECK FIRST, SO I APOLOGIZE.

COME BACK, JOSH? DOCTOR, IN A WAY.

OKAY, SO WE'VE REHEARSED ALL ON HER FIRST, SO MY APOLOGIES.

OKAY, WE'LL GET BACK TO IT.

SO AS YOU ALL KNOW, WE CAN'T ACCOMPLISH OUR MISSION WITHOUT OUR MOST VALUED RESOURCES, OUR EMPLOYEES.

LEADERSHIP RECOGNIZES THE DEDICATION AND LOYALTY OF OUR EMPLOYEES THROUGH OUR SERVICE AWARD PROGRAM FOR EVERY FIVE YEARS OF SERVICE.

WE RECOGNIZE THEIR THEIR MILESTONE WITH US.

FOR THOSE WITH 30 OR MORE YEARS OF SERVICE.

NEXT SLIDE, PLEASE.

WE DO GIVE THEM AN ENGRAVED PLAQUE AND THEN A COIN AND A LAPEL PIN SPECIFIC TO THEIR SERVICE YEAR.

THOSE WITH 5 TO 25 YEARS GET A CERTIFICATE SIGNED BY THE CHAIRMAN AND OUR EXECUTIVE DIRECTOR.

WE'VE RECENTLY MADE SOME CHANGES.

WE USED TO HOLD THEM ALL OFF UNTIL SEPTEMBER AND RECOGNIZE THEM ALL ONCE A YEAR.

NOW WE'RE TRYING TO RECOGNIZE THEM CLOSER TO THEIR ANNIVERSARY DATE.

AND SO WE'RE IDENTIFYING THE COMMISSION MEETING CLOSEST TO THESE INDIVIDUALS ANNIVERSARY DATE.

THAT'S WHY WE'RE RECOGNIZING NOW INSTEAD OF SEPTEMBER.

SO FOR TODAY, WE'LL BE RECOGNIZING FOUR INDIVIDUALS WHO HAVE SERVED 25 YEARS WITH TABC.

FIRST, I'LL ASK DIRECTOR ALEXANDER TO JOIN ME AND MISS JUDITH HOUSE.

COME ON, JUDY. YES, SIR.

ALL RIGHT. THIS IS JUDITH HOUSE, WHO GRADUATED FROM TEXAS A&M UNIVERSITY IN 1978 WITH A DEGREE IN ACCOUNTING.

SHE BEGAN HER CAREER WITH TABC IN APRIL OF 1979 IN THE AUDIT DIVISION.

WHILE WORKING WITH TABC, SHE HELD SUPERVISORY POSITIONS IN MCALLEN AND SAN ANTONIO.

SHE MOVED TO THE COMPTROLLER OF PUBLIC ACCOUNTS IN SAN ANTONIO IN JANUARY OF 1993 WITH A MIXED BEVERAGE TAX.

JUDY, RETIRED FROM THE COMPTROLLER OF PUBLIC ACCOUNTS IN DECEMBER OF 2008.

SHE RETURNED TO TABC IN AUGUST 2012 TO WORK FOR THE AUDIT DEPARTMENT IN THE SAN ANTONIO REGIONAL OFFICE.

JUDY JOINED THE MARKETING INVESTIGATION UNIT IN JUNE OF 2014 AND SHE SERVES AS A KEY MEMBER OF THAT TEAM CONDUCTING HIGH LEVEL THREE TIER INVESTIGATIONS AND TAX AUDITS ON OUR STATE WINERIES THAT DIRECT SHIP TO TEXAS CONSUMERS.

JUDY IS A RESULT ORIENTED INDIVIDUAL.

SHE PAYS CLOSE ATTENTION TO DETAIL AND IS A VALUABLE ASSET TO THE AUDIT DEPARTMENT AND TAC.

FOR DEDICATION TO THE COMMISSION AND THE PEOPLE OF TEXAS IS A TRIBUTE TO TAC.

[APPLAUSE] COME DOWN AND GET A PICTURE WITH YOU.

I'M FINE. YOU CONGRATULATE.

THANK YOU. NICE TO MEET YOU, TOO.

WE'VE GOT TO GET A LITTLE BIT CLOSER TO EACH OTHER.

THANK YOU VERY, VERY MUCH.

I APPRECIATE IT. THANK YOU.

OKAY, JUDY OR JOSH, WOULD YOU LIKE TO SAY ANYTHING? SURE. I WILL SHARE A FEW WORDS.

I THINK OF JUDY AS A SWISS ARMY KNIFE FOR THE DIVISION.

SHE COMES TO US WITH A WEALTH OF DIFFERENT KNOWLEDGE ON CONDUCTING VARIOUS AUDITS.

AND AS YOU HEARD, WHEN SHE CAME BACK TO US, SHE CONDUCTED FIELDWORK ASSIGNMENTS, ROUTINE AUDITS.

AND THEN IN 2014, WE BROUGHT HER ON BOARD TO HELP OUT WITH SOME OF OUR MORE COMPLEX, YOU KNOW, MARKETING INVESTIGATIONS.

AND SO SHE PRETTY MUCH SPEARHEADED THAT SECTION FOR US, YOU KNOW, AS WE TRANSITIONED INTO, YOU KNOW, CONDUCTING AUDITS ON OUR OUT OF STATE WINERIES.

AND SO SHE'S JUST KIND OF ALL OVER THE PLACE.

AND, YOU KNOW, WE'RE REALLY LUCKY TO HAVE HER WITH HER SKILL SET.

AND WE CERTAINLY WANT TO CONGRATULATE HER ON 25 YEARS.

ABSOLUTELY. THANK YOU. [APPLAUSE] THANK YOU.

THANK YOU. THANK YOU VERY MUCH.

I APPRECIATE EVERYTHING WITH THE AGENCY.

I'VE ENJOYED WORKING WITH DIFFERENT PEOPLE THROUGH THE YEARS.

IT'S BEEN A LOT OF FUN.

AND THEN IT'S BEEN SOME TOUGH TIMES, TOO, AS JOSH KNOWS.

BUT I THINK EVERYTHING'S TURNED OUT REALLY WELL WITH THE AGENCY, AND IT'S WE'RE GOING IN THE RIGHT PATH.

SO THANK YOU. [APPLAUSE] HAVE CHIEF NORRIS AND CAPTAIN CAVAZOS.

BEING ABLE TO STAY IN THE GALLERY ANYWAYS.

ALL RIGHT. CAPTAIN JOE CAVAZOS IS A 1988 GRADUATE OF PORT ISABEL HIGH SCHOOL.

[00:10:03]

AFTER GRADUATION, JOE ATTENDED HARDIN-SIMMONS UNIVERSITY IN ABILENE, TEXAS.

IN 1993, JOE GRADUATED WITH A BACHELOR'S DEGREE IN BEHAVIORAL SCIENCE WITH A MAJOR IN POLICE ADMINISTRATION.

WHILE AT HARDIN-SIMMONS UNIVERSITY, HE'D BEEN A MEMBER OF THE ARMY ROTC PROGRAM, AND UPON GRADUATION, HE WAS COMMISSIONED AS A LIEUTENANT ASSIGNED TO THE SIGNAL CORPS BRANCH OF THE UNITED STATES ARMY.

JOE COMPLETED HIS MILITARY OBLIGATION AS A UNITED STATES ARMY RESERVES CORPS MEMBER.

JOE BEGAN HIS LAW ENFORCEMENT CAREER IN 1995, WITH SOUTH PADRE ISLAND POLICE DEPARTMENT IN 1997, HE ACCEPTED A POSITION WITH BROWNSVILLE POLICE DEPARTMENT AS A PATROL OFFICER.

1998, JOE WAS HIRED BY TAC AND ASSIGNED TO THE DALLAS REGIONAL OFFICE.

THROUGHOUT HIS 25 YEAR CAREER, HE HAS SERVED IN VARIOUS CAPACITIES IN SEVERAL LOCATIONS THROUGHOUT TEXAS, INCLUDING MCALLEN, ODESSA AND VICTORIA.

JOE WAS PROMOTED TO LIEUTENANT IN 2014 AND TRANSFERRED TO THE HOUSTON OFFICE.

IN NOVEMBER OF 2019 HE RETURNED TO MCALLEN IN THE DISTRICT AS A LIEUTENANT, AND IN AUGUST 22ND HE WAS PROMOTED TO CAPTAIN OF THE SPECIAL INVESTIGATIONS BUREAU.

JOE HAS BEEN MARRIED TO HIS WIFE, DINA, FOR 25 YEARS.

CONGRATULATIONS. [APPLAUSE] WOULD YOU LIKE TO SAY ANYTHING OR WOULD YOU LIKE YOUR WIFE TO JOIN YOU? YEAH, SHE NEEDS TO COME UP HERE.

YEARS TO. CAPTAIN CAVAZOS.

HE'S RECENTLY PROMOTED WITHIN THE PAST YEAR.

AND SO FOR THOSE OF YOU WHO DON'T KNOW, HE HAS BEEN, AS AMANDA SAID, ALL OVER THE STATE AND HAS INFLUENCED PRETTY MUCH EVERY ASPECT OF THIS AGENCY.

SO THERE'S NOT A WHOLE LOT IN THIS AGENCY THAT JOE CAVAZOS IN SOME WAY HASN'T TOUCHED OR IMPACTED.

AND WITHOUT A DOUBT, I CAN SAY THAT WE ARE WHO WE ARE BECAUSE OF YOUR INFLUENCE AND YOUR WORK AND YOUR DEDICATION.

AND SO TO YOU, I SAY A VERY SINCERE THANK YOU TO DINA I SAY A VERY..

EIGHT MOVES IN 25 YEARS.

ONLY EIGHT? YEAH.

NO ONE'S COUNTING. OH, THAT WAS A TITLE.

WELL, HOPEFULLY IT'LL SLOW DOWN SOON, BUT I.

SERIOUSLY, WE OWE YOU A SINCERE THANK YOU FOR YOUR SERVICE, YOUR DEDICATION TO THE AGENCY, TO THE STATE, AND FOR EVERYTHING THAT BOTH OF YOU HAVE DONE.

SO THANK YOU. THANK YOU. THANK YOU.

YES. THANK YOU.

THANK YOU. NO, NOT REALLY.

IT'LL BALANCE OUT IF I GO ON THIS SIDE.

YEAH.

AWESOME. THANK Y'ALL. THANK YOU.

I DON'T WANT TO SAY ANYTHING.

OH, MAN. I TOTALLY FORGOT. WILLING TO GET OUT.

ALL RIGHT. SO 25 YEARS WENT LIKE THAT.

I REMEMBER IT WAS A LITTLE DIFFERENT, RIGHT? THE BACKGROUND OVER HERE, JUST SOME OF THE DIFFERENT THINGS THAT WE WENT THROUGH.

AND IT'S BEEN A JOURNEY.

IT'S BEEN AWESOME.

BEST JOB IN THE STATE AS FAR AS I'M CONCERNED.

AND YEAH, EIGHT MOVES, EIGHT MOVES THROUGHOUT THROUGHOUT THE TIME.

SO YEAH, WE PUT PUT SOME TIME DRIVE IN IN THE STATE OF TEXAS.

SO BUT I'M TRULY APPRECIATIVE FOR EVERYTHING THE AGENCY HAS DONE FOR ME AND DEFINITELY PUT FOOD ON THE TABLE AND JUST PROVIDED SOMETHING THAT I CAN LOOK BACK AND BE PROUD OF.

SO THANK YOU.

THANK YOU.

OKAY. LET'S RAUL SALINAS BEGAN HIS CAREER WITH THE TABC AS AN ENFORCEMENT AGENT IN JANUARY 1998.

PRIOR TO WORKING FOR THE TABC, HE WAS A CRIMINAL INVESTIGATOR WITH THE HARLINGEN POLICE DEPARTMENT ASSIGNED TO THE PROPERTY CRIMES DIVISION.

HIS FIRST DUTY STATION WITH TABC WAS THE MCALLEN OFFICE.

HE LATER TRANSFERRED TO THE CAMERON COUNTY OFFICE.

LIEUTENANT SALINAS WAS PROMOTED TO SERGEANT IN 2005 AND REMAINED IN THE CAMERON COUNTY OFFICE IN 2012, WHERE HE WAS PROMOTED TO LIEUTENANT AND ASSIGNED TO THE SAN ANTONIO REGIONAL OFFICE, WHERE HE REMAINS TODAY.

SALINAS HOLDS A MASTER PEACE OFFICER CERTIFICATE AND A BACHELOR OF ARTS IN CRIMINAL JUSTICE FROM THE UNIVERSITY OF TEXAS FROM SAN ANTONIO.

[APPLAUSE] WOULD YOU LIKE YOUR GUEST TO JOIN YOU? SURE. BRING THEM ON.

YEAH, BECAUSE DEALING WITH NOSEBLEEDS.

YEAH. LITTLE NOSEBLEEDS.

[00:15:09]

SO AGAIN, IF I CAN TAKE REAL QUICK, AGAIN, A VERY SINCERE THANK YOU AND APPRECIATION THAT, YOU KNOW, THE WAY WE'RE ORGANIZED IS A LIEUTENANT, LIEUTENANT SALINAS HAS A DIRECT IMPACT ON THE FIRST LINE AND WHAT THEY GO OUT AND THEY DO EVERY SINGLE DAY WHICH THOSE OF YOU WHO ARE IN THE LAW ENFORCEMENT AGENCY KNOWS THAT IS PROBABLY ONE OF THE MOST, IF NOT THE MOST IMPORTANT POSITION IN AN ORGANIZATION, BECAUSE THAT IS WHERE YOU'RE DEVELOPING OUR FUTURE LEADERS.

THAT IS WHERE YOU ARE TRULY IMPRINTING THE AGENCY.

AND YOU GO IN EVERY DAY, YOU DO IT, YOU DO IT WELL.

AND SO THANK YOU ALL FOR EVERYTHING YOU'VE DONE.

THANK YOU. THANKS. FAMILY FIRST.

I'M JUST SAYING, AS A MOM.

OKAY. NOW I HAVE TO BE TOLD WHERE TO STAND FOR.

FOR SURE. FOR SURE.

WHATEVER DIRECTION I CAN TAKE.

OKAY. THANK YOU, SIR.

YES, THIS IS. YOU TRY TO SCOOT UP JUST A LITTLE BIT LIKE WE'RE ON RIGHT HERE? YES. GOOD.

PERFECT.

THANK YOU. CONGRATULATIONS.

I KNOW. NORMALLY I LIKE TO PREPARE FOR STUFF LIKE THIS, BUT AGAIN, I'VE BEEN VERY FORTUNATE, VERY BLESSED TO HAVE WORKED WITH SOME GREAT PEOPLE AND FOR SOME GREAT PEOPLE.

I'M VERY APPRECIATIVE FOR EVERYTHING THIS AGENCY HAS PROVIDED TO ME AND MY FAMILY.

IT'S A GREAT OPPORTUNITY AND WE MAKE SURE THAT WHEN WE DO THOSE BACKGROUNDS AND WE TALK TO THE NEW APPLICANTS AND WE EXPLAIN TO THEM, HEY, THIS AGENCY ISN'T GREAT TO US, AND AND HOPEFULLY THEY CAN MAKE THE SAME DECISION AND ADD TO THIS AGENCY LIKE CAPTAIN CAVAZOS WAS MYSELF AND AND NICK HAVE DONE OVER THE YEARS.

THANK YOU. [APPLAUSE] ALL RIGHT.

AND FINALLY, WE HAVE AGENT NICOLE HAMILTON.

SHE'S UNABLE TO JOIN US TODAY, BUT SHE IS ONLINE.

SO YOU GUYS CAN SEE AGENT NICOLE HAMILTON JOINED TABC IN JANUARY 1998, ASSIGNED AS AN AGENT TO THE HOUSTON REGIONAL OFFICE.

SHE TRANSFERRED TO THE FORT WORTH DISTRICT OFFICE IN JANUARY 2001, WHICH WAS LATER CONSOLIDATED WITH DALLAS AND RENAMED TO THE ARLINGTON REGIONAL OFFICE.

AGENT HAMILTON GREW UP IN LEAGUE CITY, TEXAS AND ATTENDED BAYLOR UNIVERSITY, WHERE SHE GRADUATED WITH A BA IN SOCIOLOGY.

SHE HAS BEEN MARRIED TO CHRIS HAMILTON FOR 22 YEARS.

TOGETHER THEY HAVE 15 YEAR OLD TRIPLETS, TWO GROWN DAUGHTERS, AND FROM CHRIS'S PREVIOUS MARRIAGE AND SIX GRANDCHILDREN.

SO BIG CONGRATULATIONS TO NICOLE, WHO'S ON THE LINE.

I KNOW SHE I DON'T KNOW IF SHE INTENDS TO SAY ANYTHING, BUT WE'LL GIVE HER A MOMENT IN CASE SHE WANTS TO UNMUTE.

YES, IT'S A PRIVILEGE WORKING FOR THE AGENCY AND I HAVE HAD THE ABILITY TO WORK AROUND AND FOR A NUMBER OF WONDERFUL PEOPLE AND WORKING IN THE BEST REGION IN THE STATE REGION, TOO.

THANK YOU SO MUCH FOR YOUR ACKNOWLEDGMENT.

THANK YOU. THANK YOU.

THANK YOU. [APPLAUSE] ALL RIGHT, COMMISSIONERS, THAT CONCLUDES OUR SERVICE AWARDS.

ARE THERE ANY QUESTIONS? EXCELLENT. THANK YOU VERY MUCH.

I DO LIKE THE FACT THAT WE'RE NOT HOLDING IT OFF TO THE END.

I THINK THE CLOSER TO THE ANNIVERSARY DATE, THE BETTER.

IT GIVES US MORE TIME TO SPEND WITH EVERYBODY.

SO THANK YOU ALL FOR MAKING THE LONG TRIPS THAT YOU ALL MADE TODAY UP AND DOWN 35 AND GODSPEED GOING UP.

ALL RIGHT. OUR NEXT AGENDA ITEM IS THE 88TH TEXAS LEGISLATURE SESSION UPDATE FROM DIRECTOR MORLOCK AND DIRECTOR STAPLES.

I'M SORRY. OH, SORRY.

ALL RIGHT. I'M SORRY.

WE'RE GOING TO GO TO THE HALL OF HONOR.

SEE, I FIGURED WE WERE HONORING EVERYBODY, AND SO ALL OF IT WAS HONORED TOGETHER.

LET ME LET ME REWIND A LITTLE BIT.

ALL RIGHT. WE'RE GOING TO GO TO OUR NEXT AGENDA ITEM, WHICH IS THE HALL OF HONOR.

DR. FLETCHER.

YES, MA'AM.

SO GOOD MORNING, COMMISSIONERS.

AGAIN, FOR THE RECORD, AMANDA FLETCHER, DIRECTOR OF HUMAN RESOURCES.

TODAY I HAVE THE PRIVILEGE OF INTRODUCING OUR NEXT HONOREE TO THE TABC HALL OF HONOR.

YOU MAY RECALL BACK IN 2020, WE ESTABLISHED THIS PROGRAM TO RECOGNIZE INDIVIDUALS WHO RETIRED DIRECTLY FROM THE TABC.

[00:20:04]

AND NEXT SLIDE, PLEASE.

IN ORDER TO BE CONSIDERED, INDIVIDUALS MUST HAVE RETIRED DIRECTLY FROM US AT LEAST THREE YEARS AGO, AND THEY MUST HAVE DISTINGUISHED THEMSELVES OUT OF ONE OF THREE CATEGORIES.

FIRST, THEY EITHER EPITOMIZE THE TABC ORGANIZATIONAL VALUES, SUCH AS OUR FOUR CORNERSTONES SERVICE, COURTESY, INTEGRITY AND ACCOUNTABILITY, OR SECOND, THEY'RE RECOGNIZED AS BEING TRAILBLAZERS WITH EXTRAORDINARY POSITIVE LASTING IMPACT.

OR THIRD, THEY SERVE AS A CRITICAL CHANGE AGENTS CHANGING THE FOCUS AND THE OUTLOOK OF THE ORGANIZATION IN A POSITIVE WAY.

SO THIS YEAR WE HAD NINE NOMINATIONS TO CONSIDER.

WE HAD OUR NOMINATION COMMITTEE REVIEW THOSE, AND WE MADE OUR SELECTION OR RECOMMENDATION TO OUR EXECUTIVE DIRECTOR WHO MADE THE FINAL SELECTION.

BUT BEFORE I INTRODUCE OUR HONOREE NEXT SLIDE, PLEASE, I DO JUST WANT TO SHARE INFORMATION ABOUT THE PROGRAM.

AGAIN, THE NEXT CALL FOR NOMINATIONS WILL GO OUT IN JULY.

WE'LL ACCEPT NOMINATIONS THROUGH SEPTEMBER 30TH.

THE ONE CHANGE WE MADE IN PREVIOUS YEARS, INDIVIDUALS WHO WERE NOT SELECTED, WE JUST CARRIED FORWARD THEIR NOMINATION.

AND THIS YEAR WE DECIDED THAT PEOPLE WOULD NEED TO BE RESUBMITTED FOR THEIR NOMINATION.

I THINK WHEN WE FIRST CONSTRUCTED THE PROGRAM, WE WERE CONCERNED WE WOULDN'T GET ENOUGH NOMINATIONS EACH YEAR.

BUT THAT'S NOT A PROBLEM.

SO BIG THANK YOU TO INDUSTRY AND EMPLOYEES WHO HAVE BEEN NOMINATING THESE INDIVIDUALS.

SO WITHOUT FURTHER ADO, THANK YOU, DEPUTY CHIEF RON SWENSON FOR JOINING ME.

AND NOW I'LL ASK LIEUTENANT NICK GUTIERREZ TO JOIN US AS WELL.

THANK YOU. ALL RIGHT.

WE ARE HONORED TO HAVE RETIRED LIEUTENANT NICK GUTIERREZ JOIN US TODAY.

HE'S BEEN A MEMBER OF THE TABC FAMILY FROM SEPTEMBER 1ST, 1989, TO FEBRUARY 28TH, 2017.

NICK GUTIERREZ BEGAN HIS CAREER AT TABC IN 1989, INITIALLY SERVING AS AN AGENT IN THE RIO GRANDE VALLEY.

BEFORE LONG, HE TRANSFERRED TO THE SAN ANTONIO REGIONAL OFFICE, WHERE HE SPENT THE MAJORITY OF HIS CAREER.

NICK FILLED MANY ROLES THROUGHOUT HIS TENURE AT TABC, SERVING AS THE AGENCY LIAISON TO THE US DRUG ENFORCEMENT AGENCY'S HIGH INTENSITY DRUG TRAFFICKING AREA UNIT, SERVING ON THE FBI'S JOINT TERRORISM TASK FORCE AND SUPERVISING TABC'S SPECIAL INVESTIGATIONS UNIT, CIU.

WHILE SUPERVISING THE SIU, NICK HELPED RECRUIT NEW AGENTS AND GREW THE UNIT FROM 8 TO 20, WHILE CANCELING MORE THAN 100 PERMITS TIED TO ORGANIZED CRIME.

FOLLOWING HIS RETIREMENT, NICK REMAINS INTEGRAL TO THE ABC FAMILY.

HE HELPED DEVELOP THE THREE WEEK TRAINING COURSE DESIGNED TO IDENTIFY HUMAN TRAFFICKING AND ORGANIZED CRIME, VICTIMS OF HUMAN TRAFFICKING AND ORGANIZED CRIME.

NICK'S RECORD OF OUTSTANDING SERVICE TO THE TABC AND TO TEXAS GIVE HIM A WELL-EARNED PLACE IN THE HALL OF HONOR.

CONGRATULATIONS. [APPLAUSE] OKAY, I'M GOING TO SAY SOMETHING.

EVEN THOUGH EXECUTIVE DIRECTOR GRAHAM TOLD ME TO KEEP IT SHORT AND NOT GET INTO ANY WAR STORIES.

AND THERE'S PLENTY OF WAR STORIES THAT I COULD TALK ABOUT.

BUT WHEN WE STARTED SIU, THIS IS ALMOST OUR TEN YEAR ANNIVERSARY.

WE STARTED BACK IN JUNE OF 2013, AND I WAS LUCKY ENOUGH TO COME ON BOARD AS THE AS THE CAPTAIN OVER THE SIU TEAM.

WE HAD EIGHT AGENTS TO COVER THE ENTIRE STATE.

AND ONE THING WE REALIZED REALLY QUICK WAS WE NEEDED SOME HELP, WE NEEDED SOME EXPERIENCE, WE NEEDED SOME SUPERVISION.

AND WE FOUND NICK.

AND I DON'T THINK WE WOULD BE AS SUCCESSFUL AS WE ARE TODAY IF NICK HADN'T HELPED US.

HE WAS THE CORNERSTONE.

WE KIND OF LAID THE FOUNDATION.

BUT NICK CAME IN AND HE REALLY WAS THAT CORNERSTONE.

HE PROVIDED A LEVEL OF INTEGRITY, A LEVEL OF MATURITY, A LEVEL OF JUST PROFESSIONALISM WITH HIS BACKGROUND AND INSTITUTIONAL KNOWLEDGE THAT REALLY HELPED US GROW THE UNIT. HE DID FANTASTIC WORK.

I NEVER CONSIDERED MYSELF A SUPERVISOR.

I THINK I LEARNED MORE FROM HIM THAN THAN ANYTHING.

AND I JUST NOTHING BUT THANKS TO THIS GENTLEMAN, HE'S A GREAT HUMAN BEING, A GREAT LEADER.

AND IF I CAN EVER DO ANYTHING FOR HIM, I PLAN TO DO IT.

SO I'M REALLY HAPPY TO MEET HIS FAMILY TODAY AND SEE HOW IMPORTANT HE IS, HOW MUCH SUPPORT HE HAS, NOT ONLY FROM THE AGENCY, BUT FROM HIS FAMILY.

SO THANK YOU, NICK.

[APPLAUSE] WOULD YOU LIKE TO COME OUT? YEAH. TAKE A PHOTO. NO.

I JUST WANTED TO KEEP IT PG.

OH, OKAY. EVERYBODY GETS.

SO WE'VE GOT HIS WIFE, MICHELLE GUTIERREZ.

DAUGHTER CLARISSA.

CLARISSA GUTIERREZ.

GRANDDAUGHTER. CALLIE GUTIERREZ.

FATHER NICHOLAS GUTIERREZ.

BROTHER ENRIQUE GUTIERREZ.

AND ANOTHER BROTHER, REINALDO GUTIERREZ.

[00:25:03]

THANK YOU FOR BEING HERE.

ALL RIGHT. PHOTO.

THANK. GREAT.

THANKS. PARTING WORDS.

ANY PARTING WORDS.

MY CAREER WITH TABC WAS GREAT.

I ENJOYED IT.

HAD MANY MENTORS ALONG THE WAY.

WITHIN ABC AND WITH THE AGENCIES THAT I GOT TO WORK WITH, CITY, STATE, FEDERAL WAS GIVEN A LOT OF OPPORTUNITIES, TOOK ADVANTAGE OF THOSE OPPORTUNITIES AND WAS ABLE TO BRING THAT KNOWLEDGE BACK AND GOT TO SHARE IT WITH.

MY COWORKERS. I COULDN'T ASK FOR ANYTHING BETTER.

I APPRECIATE IT. THIS IS REALLY AN HONOR.

THANK YOU VERY MUCH. [APPLAUSE] ALL RIGHT. UNLESS YOU GUYS HAVE ANY QUESTIONS.

WE'RE DONE WITH ALL THE RECOGNITIONS NOW.

THANK YOU, DIRECTOR FLETCHER.

OKAY, NOW OUR NEXT AGENDA ITEM.

[3. Reports]

WITHOUT FURTHER ADO, DIRECTOR MORLOCK AND DIRECTOR STAPLES, PLEASE GIVE US AN UPDATE.

GOOD MORNING, COMMISSIONERS.

MY NAME IS JARED STAPLES AND I'M THE DIRECTOR OF PUBLIC AND GOVERNMENT AFFAIRS.

AND I'M MARIANNE MORLOCK, INTERIM DIRECTOR OF GOVERNMENT RELATIONS.

NEXT SLIDE, PLEASE.

SO WE'RE NOW 136 DAYS INTO THE TEXAS LEGISLATIVE SESSION AND WE HAVE FOUR TO GO UNTIL IT ENDS ON MEMORIAL DAY.

AND SINCE WE LAST UPDATED YOU AT THE MARCH COMMISSION MEETING, THE AGENCY HAS CONTINUED TO MONITOR BILLS THAT COULD IMPACT THE AGENCY.

WE'VE CONTINUED TO ATTEND COMMITTEE HEARINGS AND PROVIDE RESOURCE TESTIMONY AS NEEDED.

WE'VE ALSO CONTINUED TO ASSIST VARIOUS LEGISLATIVE OFFICES AS ISSUES HAVE ARISEN.

THE ENTITIES ALSO CONTINUE TO ENGAGE IN THE STATE BUDGET PROCESS AND IS MONITORING THE OUTCOME OF THE SOON TO BE FINALIZED STATE BUDGET.

AND SO NOW THAT WE'RE JUST A FEW DAYS LEFT OF THIS LEGISLATIVE SESSION, THE DEADLINES FOR MOST ACTIONS IN THE LEGISLATURE HAVE ALREADY PASSED.

AND THE ONLY ACTION LEFT TO THE LEGISLATURE REALLY IS TO APPROVE OR REJECT CONFERENCE COMMITTEE REPORTS, WHICH IS BASICALLY THE PROCESS FOR THE LEGISLATURE TO RECONCILE THE DIFFERENCES BETWEEN THE HOUSE VERSION AND SENATE VERSIONS OF VARIOUS BILLS.

SO NEXT SLIDE, PLEASE.

THE AGENCY'S ENGAGEMENT ON THE STATE BUDGET OVER THE LAST TWO MONTHS HAS BEEN WE'VE CONTINUED TO MONITOR STATE BUDGET HEARINGS AS THEY'VE HAPPENED. WE'VE SPOKEN WITH VARIOUS APPROPRIATORS ABOUT TABC FISCAL NEEDS, AND WE'VE ALSO BEEN TALKING WITH MEMBERS OF THE LEGISLATURE ABOUT LEGISLATION THAT COULD CREATE ADDITIONAL COSTS FOR THE AGENCY AS THEY'RE IMPLEMENTED.

AND WE'VE WORKED WITH THEM ON WAYS TO MINIMIZE OR COMPLETELY ELIMINATE SOME OF THOSE COSTS.

NEXT SLIDE, PLEASE.

SO ON OUR BUDGET THE LAST LAST MONTH, THE HOUSE AND THE SENATE EACH ADOPTED THEIR VERSION OF THE STATE BUDGET.

AND JUST LAST WEEK, THE CONFERENCE COMMITTEE FOR HOUSE BILL ONE AGREED ON HOW THEY'RE GOING TO SETTLE THE DIFFERENCES BETWEEN THE TWO VERSIONS BETWEEN THE TWO CHAMBERS AND SO HOW THIS IMPACTS TABC'S BUDGET.

OUR EMPLOYEES ARE STILL ON TRACK TO GET A 10% RAISE OVER THE NEXT TWO YEARS, AS WAS INITIALLY PROPOSED IN BOTH THE HOUSE AND SENATE VERSION, BUT VERSIONS OF THE BILL.

BUT ALSO TAC IS ON TRACK TO RECEIVE 14.7 MILLION OF THE EXCEPTIONAL ITEMS THAT WE HAVE REQUESTED.

AND THIS IS NEW MONEY ON TOP OF THE AGENCY'S BASE BUDGET.

SO THIS 14.7 MILLION WILL PROVIDE ADDITIONAL FUNDS FOR RAISES FOR OUR REGULATORY STAFF, WHICH GETS THEM CLOSER TO THE STATE AUDITOR'S RECOMMENDED MIDPOINT FOR THESE POSITION TYPES.

AND WITH THIS FUNDING, IT'S GOING TO ENABLE THE AGENCY TO MORE EFFECTIVELY SERVE THE BUSINESS COMMUNITY AS WE'RE BETTER ABLE

[00:30:02]

TO HIRE, TRAIN AND RETAIN KNOWLEDGEABLE STAFF TO IMPLEMENT COMPLICATED ALCOHOL LAWS.

ALSO, THIS FUND, THIS FUNDING WILL ALLOW THE AGENCY TO COMPLETE ITS PLANNED IT TRANSFORMATION AND OUR USE OF UNSUPPORTED LEGACY SYSTEMS AND WILL ALLOW US TO MORE CLOSELY ADHERE TO THE STATE'S STRATEGIC GOALS FOR MODERNIZATION AND SECURITY.

SO WITH THAT, THIS WILL CREATE EFFICIENCIES FOR THE AGENCY AND ALSO ALLOW US TO BETTER SECURE BUSINESSES SENSITIVE INFORMATION THAT THE AGENCY IS CHARGED WITH MAINTAINING.

SO WITH ALL OF THAT SAID ABOUT OUR BUDGET MOST SUCCESSFUL SESSION FOR EXCEPTIONAL ITEM FUNDING IN RECENT HISTORY, BY RECEIVING MORE THAN 60% OF THE EXCEPTIONAL FUNDS THAT WE'VE REQUESTED.

NEXT SLIDE, PLEASE.

SO THIS IS JUST A QUICK NOTE ON TAC'S BUDGET RIDERS.

NO BIG SURPRISES HERE.

BUDGET RIDERS, THEY DIRECT THE AGENCY.

HOW WE'RE ABLE TO SPEND SOME OF OUR APPROPRIATED FUNDS.

AND WITH THE CONFERENCE COMMITTEE'S DECISION, THEY'RE MOVING FORWARD WITH AN ITEM THAT WAS IN THE HOUSE BUDGET, WHICH IS CREATING A NEW RIDER, DIRECTING THE AGENCY TO CONDUCT A STUDY ON WINE PERMITS.

NEXT SLIDE, PLEASE.

SO FINAL UPDATE ON BUDGET IS ON THE SUPPLEMENTAL BUDGET BILL, WHICH WILL GRANT TABC ADDITIONAL FUNDS IN THIS CURRENT FISCAL YEAR.

THE BILL PROPOSES GIVING TABC STAFF A 5% RAISE OVER THE LAST TWO MONTHS OF THIS FISCAL YEAR, AND IT ALSO PROPOSES GIVING TABC ABOUT 2.7 MILLION TO MODERNIZE ITS AGING FLEET OF STATE VEHICLES.

AND I WILL CORRECT THE LAST BULLET ON THIS SLIDE.

WE JUST FOUND OUT THIS MORNING.

BUT AS OF YESTERDAY, THE CONFERENCE COMMITTEE FOR THE SUPPLEMENTAL BUDGET, THEY MET AND HAVE FINALIZED THEIR DECISIONS ON THE SUPPLEMENTAL BUDGET.

AND THERE AREN'T REALLY ANY MAJOR CHANGES THAT WE'VE BEEN ABLE TO TELL FROM WHAT YOU SEE ON THE SLIDE SO FAR.

BUT IT'S, I GUESS, UP NOW TO FINALIZATION ON THE HOUSE AND SENATE FLOORS.

SO THIS SUMS UP WHERE WE'RE AT WITH OUR BUDGET.

THE AGENCY IS GREATLY APPRECIATIVE TO THE LEGISLATURE FOR ENTRUSTING US WITH THIS FUNDING, AND WE LOOK FORWARD TO USING THIS MONEY WISELY TO BETTER SERVE BUSINESSES. NEXT SLIDE, PLEASE.

ON TO MARIANNE. OKAY.

THANK YOU. SO WE TRACK ABOUT 300 BILLS AS THEY GO THROUGH THE LEGISLATIVE PROCESS.

WE ATTEND HEARINGS FOR THE HOUSE LICENSING AND ADMINISTRATIVE PROCEDURES COMMITTEE AND SENATE STATE AFFAIRS AND ARE THERE TO BE A RESOURCE TO PROVIDE TESTIMONY WHEN CALLED UPON. BUT WE ALSO MONITOR OTHER HEARINGS WITH BILLS IMPACTING HUMAN TRAFFICKING AND PROCUREMENT AND TECHNOLOGY AND PEACE OFFICERS.

SINCE THE LAST COMMISSION MEETING.

SO AT THE END OF MARCH, THE ATTORNEYS AND DIRECTORS WHO ARE THE SUBJECT MATTER EXPERTS GOT INTO A REALLY GOOD RHYTHM OF ANALYZING THOSE 300 BILLS AT EVERY STAGE OF THE PROCESS.

SO ANY TIME THERE IS A CHANGE, THEY PROVIDE AN ANALYSIS ON HOW IT WOULD IMPACT THE AGENCY OPERATIONALLY OR FISCALLY.

AND SO SOME OF THE NAMES THAT ARE LISTED ON THAT SLIDE REPRESENT SOME OF THE AUTHORS THAT THAT WE WOULD VISIT WITH.

SO MAYBE WE WOULD FIND OUT THAT WITH ONE CHANGE IN THE BILL, IT CAUSED A NEGATIVE FISCAL IMPACT TO THE AGENCY.

BUT IF WE LOOKED AT IT AND DETERMINED THAT IF THEY CHANGED A WORD OR TWO OR CHANGED IT IN SOME WAY, BUT STILL MET THE INTENT THAT IT WOULD REDUCE THE FISCAL IMPACT BUT GET THE AUTHOR WHAT THEY WANTED, WE WOULD SHARE THAT AND THEN THEY COULD TAKE THAT INFORMATION AND MAKE WHATEVER CHANGES THEY CHOOSE TO MAKE.

SO NEXT SLIDE, PLEASE.

SO AGAIN, TWO MONTHS AGO WE WERE TRACKING 300 BILLS.

STARTING MAY 9TH, THERE WAS A DEADLINE PRACTICALLY EVERY DAY AND STILL IS.

IN THE LEGISLATURE THAT CALLS THE BILLS THAT ARE ON THAT TRACKING LIST.

AND SO ACTUALLY, WE'RE DOWN TO ABOUT LESS THAN 100 WHEN THIS WAS PRINTED NINE DAYS AGO.

AND OF THOSE 100, ABOUT HALF ARE RELATED TO ALL STATE AGENCIES.

SO PROCUREMENT TECHNOLOGY BENEFITS, ABOUT A QUARTER OF THEM FOR PEACE OFFICERS AND DIFFERENT OFFENSES, AND THEN ABOUT 11 DIRECTLY IMPACTING THAT, IMPACTING THE ALCOHOLIC BEVERAGE CODE. THERE WAS A BIG DEADLINE AT MIDNIGHT LAST NIGHT.

SO BASICALLY, IF A BILL HAD NOT BEEN HEARD BY ON THE FLOOR BY BOTH THE HOUSE AND THE SENATE, IT WAS DEAD.

IT IS DEAD.

SO WHEN I LOOK THIS MORNING AND RECALCULATED, WE'RE DOWN TO 41 BILLS THAT ARE IMPACTING THE AGENCY.

SO NEXT SLIDE, PLEASE.

SO NINE DAYS AGO WHEN I PREPARED THIS SLIDE, THESE ARE THE 11 BILLS THAT IMPACT THE ALCOHOLIC BEVERAGE CODE.

[00:35:01]

ALL HAVE BEEN SENT WITH TWO EXCEPTIONS HAVE BEEN SENT TO THE GOVERNOR'S OFFICE FOR SIGNATURE OR HAVE ALREADY BEEN SIGNED.

THE TWO EXCEPTIONS ARE UNDER THE PACKAGE STORES BULLET ABOUT COUPONS AND EXCESSIVE DISCOUNTS.

THOSE DIDN'T MAKE IT THROUGH THE PROCESS.

EXCUSE ME. SO THERE WILL BE MORE DETAILS ON EXACTLY HOW THESE BILLS IMPACT THE AGENCY.

IF IT INVOLVES RULEMAKING AND POLICIES AND FORMS AND DEADLINES AND OUR TIMELINES FOR IMPLEMENTING THOSE CHANGES, ALL THAT WILL BE PROVIDED TO FOR PUBLIC CONSUMPTION IN A COUPLE OF MONTHS, PROBABLY LESS THAN THAT.

BUT WE HAVE TO WAIT FOR THE VETO PERIOD TO PASS FOR COMMISSIONERS.

YOU ALL GET A LIST AS YOU HAVE THE LAST COUPLE OF MONTHS OF ALL THE BILLS THAT IMPACT THE AGENCY, NOT JUST THE ALCOHOLIC BEVERAGE CODE.

THIS TIME I'LL INCLUDE EVERYTHING ALL 41 OR LESS.

SO THAT SUMMARIZES SORT OF WHAT HAPPENED TO THE INDUSTRY THIS SESSION.

NEXT SLIDE, PLEASE.

CAN I ASK A QUICK. OH, ABSOLUTELY.

I GUESS QUESTION IS, IS THE THE PACKAGE STORE ONE YOU'RE SAYING THAT YOU SAID IT DIDN'T MAKE IT THROUGH THE PROCESS, IT WASN'T KILLED.

IT JUST DIDN'T MEET ONE OF THE TIME RESTRICTION THRESHOLDS.

OKAY. YES, SIR. SO IT'S SAFE TO SAY THAT WE'LL PROBABLY COME BACK NEXT SESSION.

I THINK THAT'S QUITE POSSIBLE.

OKAY. AND THEN I HAVE SOME BUDGET QUESTIONS.

SURE. SO WHEN I LOOKED AT THE BASE BUDGET AND THEN THE SUPPLEMENTAL ON [INAUDIBLE] IS IT SAFE TO ASSUME THAT IF BOTH OF THOSE PASS IN CURRENT FORM, EACH EMPLOYEE WOULD RECEIVE THOSE TWO AMOUNTS COMBINED BECAUSE SB 30 WAS $250 PER EMPLOYEE AND THEN HOUSE BILL ONE WAS 6000, IT SAID PER EMPLOYEE.

BUT I THINK YOU GUYS SAID IN YOUR TESTIMONY THAT'S JUST FOR REGULATORY STAFF.

SO FOR SENATE BILL 30 IS THE SUPPLEMENTAL BUDGET BILL, THERE'D BE A 5% RAISE THAT FOLKS WOULD START TO, I GUESS WOULD IMPACT THEIR SALARY FOR THE LAST TWO MONTHS OF THIS FISCAL YEAR.

SO IT WOULD AFFECT THEIR JULY AND AUGUST.

AND THEN WHEN THE NEW FISCAL YEAR KICKS IN AND HB ONE, THE NEW STATE BUDGET IS EFFECTIVE, THAT 5% WILL CONTINUE.

SO THEY DON'T GET AN ADDITIONAL BUMP, BUT IT'S A CONTINUATION OF THE 5%.

AND THEN AT THE START OF THE NEXT FISCAL YEAR, SO NEXT SEPTEMBER, THEN THERE'S ANOTHER 5% THAT YOU GET.

SO THAT'S THAT'S WHEN YOU FEEL THE EFFECT OF THE FULL 10%.

GOT IT. BUT FOR THE EXCEPTIONAL ITEM THAT WE WE RECEIVED, THAT IS ADDITIONAL FUNDING THAT WE WERE ABLE TO ALLOCATE TO OUR REGULATORY STAFF. SO THEY ARE GETTING EFFECTIVELY THEY WILL SEE MORE THAN A 5% RAISE WHEN IT AFTER SEPTEMBER 1ST WHEN THE HOUSE BILL ONE KICKS IN.

SO THAT IS RESTRICTED TO REGULATORY ONLY.

CORRECT? YES. OKAY.

AND THEN CAN YOU JUST GIVE A LITTLE BIT OF BACKGROUND ON THE THE THE AMES SUBSCRIPTION BEING PARTIALLY FUNDED AND HOW AND IF ANY, IMPACT TO THE AMES PROCESS THAT WOULD HAVE WITH A PARTIAL FUNDING? SURE. SO WE RECEIVED PART OF THAT FUNDING, BUT I UNDERSTAND THAT WE ALSO RECEIVED A CAPITAL BUDGET AUTHORITY TO DO, I GUESS, BASICALLY SPEND THE REST OF WHAT WE NEED TO GET TO THE 2.4 TO COVER THOSE COSTS.

SO WE'RE ABLE TO USE IT FOR, I GUESS, LOOK AT OTHER PARTS OF OUR BUDGET WHERE WE CAN FIND IT TO FILL THAT NEED.

SO THERE'S A THERE'S A METHOD IN WHICH WE CAN GET TO WHAT WE ASK FOR IN OTHER LINE ITEMS IN OUR BUDGET TO THE EXTENT THERE IS A SURPLUS. IS THAT WHERE WE'RE AS FAR AS MY UNDERSTANDING AND CORRECT ME IF I'M WRONG, BUT WE'LL HAVE TO CONTINUE ITS PRACTICE OF PULLING FROM SOMEWHERE ELSE TO FILL THIS HOLE.

I MEAN, WE DID EXPLAIN TO THE LEGISLATURE LIKE THESE ARE ALL ONGOING COSTS THAT WE'RE GOING HAVE TO COVER NO MATTER WHAT.

THEY WERE NOT INCLUDED IN REQUESTS THE LAST LEGISLATIVE SESSION OR IN OUR LAST APPROPRIATIONS REQUEST.

SO OVER THE LAST TWO YEARS, THE AGENCY HAS BEEN COVERING IT OUT OF OUT OF EXISTING FUNDS.

AND SOMETIMES WHETHER THAT'S LIKE MOST OF OUR OUR BUDGET IS SALARIES.

SO IT'S UNFORTUNATELY SOMETIMES HAVING TO LEAVE OPEN POSITIONS TO TO PAY FOR THAT.

SO BUT TO THE EXTENT WE CAN AVOID THAT, WE WILL.

AND THEY GAVE US PART OF IT THIS SUMMER.

YES. SO WE'RE NOT TAKING IT ALL OUT OF POCKET ANYMORE.

AND THEN THEY GAVE US THE OPTION OF WHERE WE PULL IT FROM.

WE HAVE A BIGGER, BIGGER OPPORTUNITY AND OPTIONS WITHIN OUR BUDGET TO MOVE THE MONEY OVER.

SO BUT WE ARE STILL GOING TO HAVE TO MOVE HALF OF IT OVER.

SO THEY COVERED HALF OF IT, OF COURSE.

SO WITH THE EXTRA FLEXIBILITY TO MOVE, IS IT YOUR OPINION THAT WE CAN GET TO THE AMOUNT THAT WE ASKED OF 2.4? WE HAVE TO COVER THAT COST.

I UNDERSTAND, BUT I DON'T KNOW.

[00:40:03]

I'M TRYING TO FIND OUT DID WE GET ENOUGH FLEXIBILITY IN YOUR BELIEF TO BASED ON WHAT WE KNOW IN PAST FISCAL YEARS, WOULD WE BE ABLE TO SOLVE FOR THAT DELTA BY MAKING TRANSFERS FROM OTHER AREAS IN THE AMOUNT OF WHAT IS THAT, 800,000? YEAH, ABOUT $800,000.

YES. YES. OKAY.

ALL RIGHT, GOOD. COMMISSIONERS, DO WE HAVE ANY OTHER ADDITIONAL COMMENTS FOR.

JUST CONGRATULATIONS ON A GREAT SESSION.

THANK YOU. COULD WE TAKE THIS OPPORTUNITY TO SAY THANKS? SURE. OKAY. SO FIRST OF ALL, TO THE COMMISSION.

THANK YOU FOR YOUR GUIDANCE AND SUPPORT ALONG THE WAY, TOO.

AND THIS IS FROM BOTH OF US.

SO WE WANT TO THANK THE THE ATTORNEYS AND THE DIRECTORS AS THE SUBJECT MATTER EXPERTS.

THEY WERE ANALYZING THOSE BILLS EVERY STEP OF THE WAY.

THEY HAVE A REGULAR JOB, TOO.

BUT, YOU KNOW, SIX MONTHS, EVERY TWO YEARS IS THIS CRAZY TIME WHERE THEY ARE ASKED TO TO DO EVEN MORE AND SOMETIMES IN A WITHIN A MATTER OF HOURS. SO IT'S NOT EASY.

SO IT'S A LOT TO ASK.

SO WE APPRECIATE IT AND NOT QUITE DONE WITH THEM.

SO AND THEN TO DIRECTOR SWANN AND HIS CREW AND BSD OF ALL THINGS BUDGET AND EXPLAINING THE BUDGET TO SOME OF US AND KEEPING US ON TRACK AND AND A SPECIAL SHOUT OUT FOR ME TO TIFFANY FORSTER FOR HER HELP WITH FISCAL NOTE ADMINISTRATION AND THEN TO LEADERSHIP TO MY RIGHT.

SO TO EXECUTIVE DIRECTOR GRAHAM AND DEPUTY EXECUTIVE DIRECTOR HALL FOR THEIR LEADERSHIP AND GUIDANCE.

AND IT ALL STARTED BEFORE SESSION WITH A VERY THOUGHTFUL BUDGET, VERY FOCUSED BUDGET REQUEST.

AND THEN THE ONE ON ONE MEETINGS THAT THEY WOULD HAVE WITH LEGISLATORS AND STAFF AND PUSHING TRANSPARENCY, PUSHING CUSTOMER SERVICE.

AND IT CAME ACROSS IN THOSE MEETINGS, IT WAS EVIDENT.

SO ANYWAY, THANK YOU TO EVERYBODY.

IT TAKES A VILLAGE. THANK YOU FOR ALL YOUR HARD WORK.

THANK YOU. IT'S NOT OVER YET.

IT WILL BE SOON.

YES. THANK YOU VERY MUCH.

ALL RIGHT. OUR NEXT AGENDA ITEM IS OUR BUDGET UPDATE.

SHE FINANCIAL OFFICER SWAN.

GOOD MORNING. GOOD MORNING.

FOR THE RECORD, I AM CONRAD SWAN, CHIEF FINANCIAL OFFICER.

I BROUGHT SOMEONE WITH ME TODAY, JAY KOLTERMAN.

HE IS OUR NEW DEPUTY CFO.

HE JOINED US IN MARCH, END OF MARCH.

SO HE'S GOT ABOUT 60 DAYS IN.

WANTED TO INTRODUCE HIM.

HE CAME TO US FROM THE OFFICE OF THE ATTORNEY GENERAL.

HE SPENT 18 YEARS IN THEIR ACCOUNTING SHOP, A DECADE OF THAT AS A DEPUTY ACCOUNTING DIRECTOR.

SO WE'RE HAPPY TO HAVE HIM.

LUIS IS HAPPY THAT WE HAVE HIM.

HE GOT HIS LIFE BACK.

HE'S ON VACATION.

AND SO I'M HAPPY THAT HE'S JOINING ME AT THE TABLE.

WHAT HE DOESN'T KNOW IS, IS IF YOU HAVE ANY QUESTIONS, HE'LL BE ANSWERING.

ALL RIGHT. SO THIS PRESENTATION WILL BE OF OUR BUDGET AT A SNAPSHOT IN TIME OF APRIL 30TH.

I'LL POINT OUT SOME HIGHLIGHTS AGAIN, LIKE WE DID LAST TIME, SHOWING YOU FIRST THE BUDGET JUST AS A BIAS STRATEGY TYPE, IF YOU'LL AGAIN HIGHLIGHTS LOOK AT THAT BOTTOM LINE THERE.

THAT CURRENT BUDGET IS NOW SITTING AT $53.9 MILLION, I'M ROUNDING UP THERE.

THE LAST TIME YOU SAW THIS, IT WAS SITTING AT AROUND 53.7.

SO WE GREW OUR BUDGET BY AROUND $200,000 NET.

WHAT THAT WAS WAS WE WERE ABLE TO TAKE UNEXPENDED BALANCES FROM 2022 THAT WENT UNSPENT FOR OUR AIMS PROJECT, AND WE USED UNEXPENDED BALANCE FORWARD INTO 23 FOR OUR CAPITAL PROJECT FOR AIMS THAT WAS ABOUT $300,000.

SO THE NET EFFECT IS WE HAD TO GIVE BACK ABOUT $100,000 FOR ESTIMATED COST OR ESTIMATED APPROPRIATION THAT WE GOT FOR OUR CPO SALARY INCREASES.

SO THEY ESTIMATED HOW MUCH WE NEEDED.

WE'VE ACTUALIZED IT AND WE'VE SENT SOME BACK.

SO THAT'S YOUR NET $200,000 MOVE TO OUR BUDGET FROM THE LAST TIME YOU SAW THIS REPORT.

ANOTHER AREA WE'D LIKE TO HIGHLIGHT IS THAT REMAINING BALANCE WE TALKED ABOUT LAST TIME, HOW THIS IS WHERE THINGS THAT HAVEN'T REACHED AN ENCUMBRANCE, HAVEN'T REACHED AN EXPENDITURE YET.

THAT'S WHERE THAT TOTAL IS COMING FROM.

SO WE'VE GOT ABOUT $2.8 MILLION IN THAT NUMBER.

THE LAST TIME YOU SAW IT, IT WAS 5 MILLION.

AND YOU MAY RECALL I GO, IT WON'T STAY 5 MILLION.

I EXPECT THAT IT'LL BE WALKED DOWN.

AND SO HERE'S SOME EVIDENCE THAT THAT'S HAPPENED.

I'D SAY THAT AGAIN, I DON'T EXPECT THIS NUMBER TO BE 2.7 MILLION WHEN WE REACH 831.

I EXPECT THAT IT WILL COME DOWN.

WE JUST DON'T KNOW WHERE IT WILL LAND.

IT WON'T BE ZERO, IT WON'T BE 2.7.

BUT WE'LL SEE WHAT THAT NUMBER ENDS UP BEING HERE AT THE END OF THE YEAR.

[00:45:02]

IF YOU GO TO THE NEXT SLIDE, YOU'LL SEE OUR OPERATING BUDGET, SAME NUMBERS, BUT JUST PRESENTED BY OBJECTS OF EXPENSE WE TALKED ABOUT LAST TIME.

THESE ARE THE LVB'S WAY OF LOOKING AT YOUR YOUR BUDGET.

SO THOSE CATEGORIES 1001 ALL THE WAY DOWN TO 5000, THOSE ARE THEIR CATEGORIES.

BUT THIS IS A NICE PRESENTATION TO SEE A BREAKOUT OF YOUR BUDGET.

AND SO I WOULD HIGHLIGHT JUST THAT $2.7 MILLION WE WERE TALKING ABOUT AS A REMAINING BUDGET.

YOU CAN NOW SEE THAT IT'S PRIMARILY MADE UP OF MAYBE 3 TO 4 SPOTS OF OUR BUDGET.

I WOULD POINT TO YOUR SALARIES HAS ABOUT THOSE FIRST TWO LINES, OBJECTS 1 TO 1 AND 1 OR 2 THAT HAS ABOUT $600,000 OF THAT 2.7.

BUT THEN ANOTHER SALARY LIKE ITEM THAT WE CALL ONE TIME AT THE VERY BOTTOM ROW, YOU GOT ABOUT $250,000 THERE.

SO WHEN YOU COMBINE THAT, YOU CAN SEE WE'VE GOT OVER $800,000 IN SALARIES IN THAT 2.7.

ANOTHER TWO ITEMS I WOULD POINT AT TOGETHER BECAUSE THEY SORT OF GO HAND IN HAND IS YOUR FUEL AND LUBRICATION, $170,000, YOUR TRAVEL 380, THOSE KIND OF GO TOGETHER. THAT'S ALSO CONTRIBUTING TO YOUR 2.6.

AND AS WE TALKED ABOUT LAST TIME, THOSE ARE THINGS WE DON'T COVER.

SO THEY'LL ALWAYS BE IN THAT NUMBER THERE UNTIL THEY'RE SPENT.

SO THAT'S WHY I'M TELLING YOU.

I THINK WE'LL KEEP WALKING DOWN AS WE SEE TRAVEL AND FUEL CONTINUE TO HAPPEN.

AND THEN THERE'S ONE BIG NUMBER THERE, THAT MILLION DOLLARS IN OTHER OPERATING.

THAT ONE IS NOT JUST A CONDENSED STATEMENT OF THAT SALARIES, THAT'S FUEL.

RIGHT. OTHER OPERATING IS A BIG CATCHALL BUCKET.

IT'S GOT LOTS OF THINGS IN IT.

YOU'VE GOT TRAINING COSTS, YOU'VE GOT SOFTWARE, YOU'VE GOT EQUIPMENT.

SO THERE'S A HODGEPODGE OF TOTALS IN THAT NUMBER.

AND THAT'S WHERE I EXPECT WE WON'T SEE A LOT OF WALK DOWN.

WE'LL GET SOME, BUT THAT'S GOING TO CONTRIBUTE TO WHAT'S SITTING AT 831.

I EXPECT IF I'M PUTTING ON MY CRYSTAL CRYSTAL BALL OR PUTTING ON MY HAT AND THINKING ABOUT WHAT WILL HAPPEN THERE.

ONE FINAL CONVERSATION ON THIS PAGE IS WE ALWAYS TALK ABOUT SALARIES BEING ROUGHLY 80% OF OUR BUDGET.

AND WHEN YOU LOOK AT THAT PIE GRAPH, YOU CAN SEE THAT BIGGEST SHAPE IS THE MOUTH OF IT IS STARTING TO OPEN WIDE, RIGHT? THAT'S WHERE WE STOP SITTING AT A PERFECT 80%.

WE START COMING DOWN TO 75% OR WHEREVER WE LAND.

BECAUSE AS JARED WAS SPEAKING TO EARLIER, TO YOUR QUESTION, WHEN WE HAVE OPPORTUNITIES TO TAKE WHAT WAS A BUDGET FOR SALARIES, BUT BECAUSE OF VACANCIES WON'T GET SPENT, WE CAN TAKE THAT ONE TIME SAVINGS BECAUSE IT WASN'T FILLED AS A POSITION AND REDEDICATE IT TO SOMETHING ELSE IN THE BUDGET.

AND WHEN WE DO THAT, IT STOPS APPEARING IN THAT SALARIES PIE AND IT APPEARS IN THE OTHER SMALLER SLICES, RIGHT? AND SO IF I CAN GO BACK I KNOW YOU ASKED JARED, BUT I SAW YOU.

YOU SAW I WANTED I WANTED TO JUMP IN THERE.

THAT'S HOW WE WILL BE IN FINE SHAPE.

AND I THINK EDDIE GRAHAM PUT IT PERFECTLY THAT THAT PART OF OUR ASK WAS TO MAKE US WHOLE FOR WHAT WE'RE ALREADY DOING.

SO IN A SENSE, OUR BASE ALREADY HAS MONEY TO DO IT.

THEY MADE US WHOLE SO THAT WE CAN SPEND AT LEAST 1.6 ON OTHER THINGS THAT WE WEREN'T ABLE TO DO.

SO I DON'T SEE ANY NEGATIVE IMPACT OTHER THAN WE WEREN'T MADE COMPLETELY WHOLE TO WHAT WE WERE ABLE TO GET FROM THAT 1.6.

UM, NEXT.

JOE, PLEASE. AND THEN FINALLY, THE LAST PRESENTATION WE'D LIKE TO SHOW YOU IS JUST YOUR CAPITAL BUDGETS AND WHAT THEY LOOK LIKE.

AGAIN, A HIGHLIGHT FROM WHERE WE WERE LAST TIME YOU SAW THIS REPORT TO WHERE WE ARE NOW.

OUR CURRENT BUDGET IS SITTING AT 5.7 MILLION.

THAT'S ABOUT A $600,000 INCREASE TO THESE TYPES OF BUDGETS SINCE THE LAST TIME YOU SAW THEM.

IF YOU GO BACK TO THAT CONVERSATION WE HAD AT THE START WHERE I SAID WE TOOK A UB MONEY FROM ONE YEAR AND BROUGHT IT FORWARD, THAT CONTRIBUTES TO THIS CURRENT BUDGET.

THAT'S THAT $300,000 THAT WE PUT IN AMES.

AND THEN IN ADDITION TO THAT, WE DID A LITTLE MOVEMENT.

THOSE BUBBLES THAT YOU SEE IN THE GRAPHIC, THE ONE THAT MOVED AND GREW BIGGEST WAS THE AMES BUDGET.

THAT ONE GREW. AND HOW WE DID THAT WAS, AGAIN, THOSE CONVERSATIONS ABOUT OPPORTUNITY TO TAKE SALARY DOLLARS THAT WERE VACANT, UNUSED AND TO USE THEM ELSEWHERE.

WE PULLED A LEVER TO DO THAT HERE, WHICH IS HOW YOU SEE YOUR CAPITAL BUDGETS GREW JUST A LITTLE BIT.

ANOTHER HIGHLIGHT OF THIS BUDGET IS THE REMAINING BALANCE.

WE GOT ABOUT $280,000 LEFT.

SIMILAR CONVERSATION ABOUT THAT 5.7.

THIS IS A PART OF THAT 5.7.

BUT ON THIS ONE, I FEEL STRONGLY I HAVE A HIGH DEGREE OF CONFIDENCE THAT WE'LL START SEEING THAT BALANCE REALLY WALK ITSELF DOWN.

VERY LIKELY IT MAY END UP BEING ZERO AT THE END OF THE YEAR BECAUSE THIS SNAPSHOT IS AS OF APRIL.

I'VE ALREADY SEEN REQUISITIONS THAT ARE SPENDING FROM THESE BUCKETS HERE DURING THE 20 SOMETHING DAYS OF MAY THAT WE HAD.

SO I ALREADY KNOW THIS NUMBER IS COMING DOWN AND I EXPECT IT TO GO FURTHER.

AND WITH THAT, IF YOU HAVE ANY QUESTIONS, WE WOULD BE GLAD TO ANSWER THEM.

COMMISSIONERS, DO YOU ALL HAVE ANY ADDITIONAL COMMENTS ON THE BUDGET OR ANY QUESTIONS?

[00:50:02]

THAT'S GREAT INFORMATION.

THANK YOU. YEAH. THANK YOU ALL.

AND WELCOME TO THE TEAM.

OKAY. OUR NEXT ITEM.

OUR NEXT AGENDA ITEM IS ALCOHOL SAFETY EDUCATION UPDATE FROM DIRECTOR PORTER.

CONGRATULATIONS, DIRECTOR PORTER.

THANK YOU, COMMISSIONERS. FOR THE RECORD, MY NAME IS CHRIS PORTER.

I'M THE DIRECTOR OF COMMUNICATIONS FOR TABC.

OUR NEW OUR NEWLY PROMOTED.

YES, MA'AM. THAT'S RIGHT. THANK YOU TO THE LEADERSHIP FOR THIS OPPORTUNITY AND LOOKING FORWARD TO WORKING WITH ALL OF YOU OVER THE NEXT SEVERAL YEARS WITH LOVE.

SO THIS MORNING, WE'RE GOING TO TALK ABOUT AN UPDATE FOR ALCOHOL SAFETY EDUCATION.

WE HAVE A NUMBER OF EFFORTS THAT ARE IN PLAY RIGHT NOW.

JUST BY WAY OF BACKGROUND, A LITTLE BIT OF DATA.

TEXAS, AS YOU MAY KNOW, HAS THE HIGHEST NUMBER OF ALCOHOL RELATED DRIVING FATALITIES IN THE NATION IN 2019.

AS YOU CAN SEE, THAT NUMBER WAS ABOUT 1300.

CALIFORNIA AND FLORIDA CAME IN A DISTANT SECOND BEHIND TEXAS.

WE ARE NOT IN FIRST PLACE WHEN IT COMES TO PER CAPITA DRIVING FATALITIES.

WE'RE ACTUALLY FIFTH BEHIND SOME OF THE MOUNTAIN WEST STATES THAT HAVE A LOWER POPULATION DENSITY THAN TEXAS.

AND THE GOOD NEWS IS WE ARE REDUCING THAT NUMBER.

AND OUR GOAL AT TABC IS OBVIOUSLY TO GET THAT NUMBER DOWN EVEN FURTHER, WORKING WITH PARTNERS LIKE THE TEXAS DEPARTMENT OF TRANSPORTATION.

NEXT SLIDE. SO SINCE 2001, TABC HAS RECEIVED GRANT FUNDING FROM TXDOT TO CONDUCT EDUCATION ON ALCOHOL RELATED ROAD SAFETY.

THE GOAL, AS YOU CAN IMAGINE, IS TO REDUCE DUIS, DWI, DWI OVER SERVICE AND SALES OF ALCOHOL TO MINORS.

AND SOME OF THE WAYS WE USE THAT MONEY ARE THROUGH INCREASING THE NUMBER OF INSPECTIONS THAT OUR ENFORCEMENT AGENTS DO AT SOME OF THE BUSINESSES WE LICENSE ACROSS THE STATE, MORE THAN 60,000 NOW, ADDITIONALLY, OUR RCO'S AT THE PORTS OF ENTRY ALSO CONDUCT ADDITIONAL COMPLIANCE EFFORTS TO INTERDICT ANY ALCOHOL THAT IS BROUGHT INTO THE COUNTRY ILLEGALLY.

AND FINALLY, WHAT THE COMMUNICATIONS DEPARTMENT HANDLES MORE DIRECTLY IS INCREASING EDUCATION EFFORTS FOR OUR RETAIL PARTNERS, AS WELL AS OUR LAW ENFORCEMENT PARTNERS ACROSS THE STATE. AND JUST BY WAY OF BACKGROUND, THIS GRANT CYCLE, BEGINNING LAST OCTOBER, WE RECEIVED JUST UNDER HALF $1 MILLION, AND THAT'S GOING TOWARD THOSE THREE BUCKETS THAT I OUTLINED THERE. NEXT SLIDE.

SO ONE OF THE THINGS THAT WE DO TO HELP RETAILERS AVOID SOME OF THE MOST COMMON VIOLATIONS RELATED TO OVER SERVICE IS WE PROVIDE FREE EDUCATIONAL MATERIALS.

THAT'S BOTH IN-PERSON TRAINING COURSES THAT WE CONDUCT AS WELL AS DIGITAL AND PRINTED MATERIALS.

SOME OF THEM INCLUDE THINGS LIKE VIDEO COURSES THAT WE PROVIDE AS WELL AS PAMPHLETS, NOTEBOOKS, THINGS OF THAT NATURE TO REALLY HELP THEM IMPLEMENT BEST PRACTICES AT THEIR FACILITIES, HELP EMPOWER STAFF TO DECLINE TYPES OF SALES, THAT COULD BE RISKY.

ONE OF THE THINGS WE DID WITH THIS GRANT MONEY IS WE WORKED WITH TXDOT TO BOTH IDENTIFY A NUMBER OF COMMUNITIES AND COUNTIES ACROSS THE STATE WHERE THERE ARE HIGHER NUMBERS OF ALCOHOL RELATED FATALITIES THAN ELSEWHERE.

AND ONCE WE HAD THAT LIST, WE USED IT TO GENERATE A LIST OF ABOUT 50, ALMOST 54,000 BUSINESSES IN THOSE LOCATIONS.

SO WHAT WE DID WAS WE REACHED OUT TO EACH OF THEM AND OFFERED THEM FREE TRAINING, BOTH, AGAIN, DIGITAL AND IN-PERSON TRAINING COURSES.

AND OF THAT NUMBER THAT WE REACHED OUT TO LAST DECEMBER, ABOUT 12,300 ACCEPTED.

THAT'S ABOUT A 23% ACCEPTANCE RATE.

AND WE ARE GOING TO CONTINUE REACHING OUT TO FOLKS OVER THE NEXT FEW MONTHS TO SEE IF WE CAN GET THAT NUMBER UP.

NEXT SLIDE, PLEASE.

ADDITIONALLY, WE ALSO REACHED OUT TO A NUMBER OF LAW ENFORCEMENT AGENCIES THAT WE PARTNERED WITH ACROSS THE STATE TO OFFER THEM TRAINING, PARTICULARLY RELATED TO THE TRACE UNIT AND THE RESOURCES THAT PROVIDES TO LOCAL COMMUNITIES IN TERMS OF INVESTIGATING ALCOHOL RELATED FATALITIES.

OF THE 67 THAT WERE REACHED OUT TO, SEVEN HAVE ACCEPTED.

SO THAT DOESN'T APPEAR TO BE A HIGH NUMBER.

BUT ONE THING WE DO WANT TO STRESS IS THAT A NUMBER OF THESE BUSINESSES HAVE PREVIOUSLY BEEN CONTACTED BY TABC, PARTICULARLY AS IT RELATES TO THE TRACE UNIT.

AND AS YOU CAN IMAGINE, IT'S A PRACTICE OF OUR ENFORCEMENT AGENTS TO MAKE CONTACT WITH THEIR LOCAL PARTNERS AT THE LOCAL LEVEL AND AT THE COUNTY LEVEL TO MAKE SURE THEY CAN MAINTAIN THAT GOOD WORKING RELATIONSHIP.

SO WHAT WE'LL DO FOR THESE FOLKS IS WE'RE GOING TO PROVIDE AN HOUR LONG COURSE INVOLVED THAT OUTLINES THE TRACE PROGRAM AND HOW IT CAN HELP THEM IN THEIR COMMUNITIES.

ADDITIONALLY, WE'RE ALSO PROVIDING ADDITIONAL MEDIA OR TOOLKITS FOR THESE FOLKS GOING TO PRIMARILY CONSIST OF DIGITAL AND PRINT MATERIALS, AS WITH THE RETAILERS.

NEXT SLIDE, PLEASE. SO THAT TAKES ME TO MY NEXT TOPIC.

AS YOU MAY HAVE NOTICED, WE HAVE RECENTLY UPGRADED THE FORMER TOO YOUNG TO DRINK.COM WEBSITE.

JUST BY WAY OF BACKGROUND.

THAT WAS THE SITE THAT WE USED TO HOST THE MAJORITY OF OUR EDUCATIONAL MATERIALS, BOTH VIDEO COURSES AS WELL AS SOME OF THE PRINT MATERIALS THAT THEY COULD ORDER THROUGH OUR FOLKS DOWN AT THE WAREHOUSE.

SO BECAUSE TOO YOUNG TO DRINK, IT'S BEEN AROUND FOR A WHILE.

IT WAS A GREAT WEBSITE, BUT WE STARTED HAVING ISSUES WITH THE VENDOR REFUSING OR I GUESS DECLINING RATHER, TO SUPPORT THAT PLATFORM BECAUSE THEY SIMPLY MOVED ON.

AND SO WHAT WE DID WAS WE LAUNCHED A NEW WEB PAGE WITH A NEW ESHOP FUNCTION THROUGH SHOPIFY TO HELP US UPGRADE THAT AND GIVE PEOPLE MORE OPTIONS AND MORE ABILITY TO ORDER THOSE MATERIALS.

[00:55:02]

ADDITIONALLY, AS YOU CAN SEE, WE ALSO CONDUCTED A LIGHT REBRAND OF TOO YOUNG TO DRINK.

WHAT WE REALLY WANTED TO DO WAS MAKE SURE THAT THE WEBSITE FOCUSED BEYOND PREVENTING THE SIMPLE PREVENTING ALCOHOL TO SALES TO MINORS.

WE WANTED TO REALLY EXPAND THAT AND BE INCLUSIVE OF ALL OF OUR EFFORTS RELATED TO PREVENTION OF OVER SERVICE, AS WELL AS ANY OTHER ALCOHOL SAFETY RELATED MATERIALS.

SO THOSE MATERIALS ARE AVAILABLE BOTH DIGITALLY AND PRINT.

AND ONE OF OUR NEXT STEPS IS GOING TO BE TO CONTINUE DEVELOPMENT OF SOME OF THE TOOLKITS THAT WE HAVE IN THE PIPELINE.

NEXT SLIDE, PLEASE. SO BECAUSE WE ARE WORKING WITH TXDOT ON THIS GRANT FUNDED PROJECT, WE DO NEED TO MAINTAIN APPROVAL FOR ALL OF THE MATERIALS THAT WE DEVELOP.

IN FACT, YESTERDAY TXDOT CAME BACK AND APPROVED ONE OF OUR STATEMENTS OF WORK FOR A VIDEO SERIES THAT WE'RE DEVELOPING THROUGHOUT THE SUMMER ON THE REAP PROGRAM.

AND THEN ONCE EVERYTHING IS BUILT OUT, IT'S GOING TO BE PROVIDED ON THE TABC PREVENTION WEBSITE, BOTH AGAIN, DIGITALLY FOR PEOPLE TO DOWNLOAD THEMSELVES AT THEIR HOME OR AT THEIR PLACE OF WORK. AND ADDITIONALLY THEY CAN ALSO ORDER THEM THROUGH THE WEBSITE AND WE'LL HAVE THAT DELIVERED TO THEM VIA FEDEX.

ALL RIGHT, NEXT SLIDE. WITH THAT, HAPPY TO ANSWER YOUR QUESTIONS.

IS THIS AN ANNUAL? HOW LONG IS THIS PROGRAM GOING? SO THERE'S THREE KIND OF AREAS OF FOCUS.

SO MY QUESTION IS GOING TO BE, DO YOU HAVE A METRICS THAT YOU'RE FOLLOWING IN ORDER TO DEFINE SUCCESS AFTER THIS CAMPAIGN IS OVER? IN THOSE THREE SPECIFIC AREAS? WE DO. WE ARE KEEPING TRACK OF WHO WE PROVIDE TRAINING TO AND HOW MANY HOURS AND HOW MANY DIFFERENT PIECES OF EDUCATIONAL MATERIAL THAT WE PROVIDE TO THESE FOLKS.

AND THEN, OF COURSE, I THINK THE OTHER METRICS ARE GOING TO BE THROUGH OUR FOLKS, OUR FRIENDS DOWN IN TXDOT.

THEY'LL BE ABLE TO LOOK AND SEE IF WE'RE ABLE TO HAVE AN IMPACT ON MOVING THE NEEDLE AS IT RELATES TO ALCOHOL FATALITIES IN THOSE AREAS.

AND IS THE CAMPAIGN A 12 MONTH CAMPAIGN OR IS IT IT'S 12 MONTH PER GRANT CYCLE? WE'RE GOING TO CONTINUE APPLYING FOR THE GRANT IN THE ENSUING YEARS AND FINDING WAYS TO USE THAT MONEY BOTH ON THE ENFORCEMENT SIDE AND THE PORTS OF ENTRY SIDE, AS WELL AS THE EDUCATIONAL AND PREVENTIONAL SIDE.

OKAY. AND IS THAT A CALENDAR YEAR OR IS IT A FISCAL YEAR? IT'S THE GRANT CYCLE RUNS FROM SEPTEMBER TO OCTOBER OF EVERY YEAR.

OCTOBER. OKAY. SO OCTOBER, WE SHOULD BE ABLE TO GET SOME DATA BACK? THIS YEAR OVER THE LAST YEAR'S EFFORTS, WE SHOULD BE ABLE TO GET SOME DATA THIS YEAR.

OKAY. YES, MA'AM. GREAT.

ANY OTHER QUESTIONS, COMMISSIONER? COMMISSIONERS ON THIS? NO. ALL RIGHT.

THANK YOU VERY MUCH. THANK YOU, DIRECTOR PORTER.

OKAY. OUR NEXT AGENDA ITEM IS PUBLIC COMMENT.

GENERAL COUNSEL DO WE HAVE ANYONE SIGNED UP FOR.

WE HAVE ONE PERSON SIGNED UP, MR. ENGLE. HE'S NOT.

HE'S NOT ON. SO I GUESS.

OKAY. WELL, WE ALL GET CHANCE.

WE ALL GET TWO MINUTES BACK.

ALL RIGHT. SO WITH NO PUBLIC COMMENT.

[5. Orders on Proposals for Decision]

OUR NEXT AGENDA ITEM IS FOR CONSIDERATION AND POTENTIAL ACTION ON ORDER, ON PROPOSAL FOR DECISION REGARDING.

WHERE ARE WE GOING? OKAY, MA.

OH, MY GOSH. REALLY? I HAVE TO SAY THIS.

MA DE MENDIOLA.

THANK YOU.

RENE'S CLUB. SO WE'VE GOT SENIOR COUNSEL CHERRY TO GIVE THIS PRESENTATION.

THANK YOU. GOOD MORNING, COMMISSIONERS.

THANK YOU FOR HAVING ME. FOR THE RECORD, MY NAME IS MATTHEW CHERRY, SENIOR COUNSEL FOR TABC.

THIS AGENDA ITEM PERTAINS TO [INAUDIBLE] DOCKET NUMBER 458-22-2668.

RESPONDENT MA DE MENDIOLA DOING BUSINESS AS REINAS CLUB CURRENTLY HOLDS A MIXED BEVERAGE PERMIT.

A RETAILER, LATE HOURS CERTIFICATE AND A FOOD AND BEVERAGE CERTIFICATE AGENCY STAFF ALLEGED THAT ON FOUR SEPARATE OCCASIONS, RESPONDENT OR RESPONDENT'S AGENT, SERVANT OR EMPLOYEE SOLICITED SOLICITED A PERSON TO BUY DRINKS FOR CONSUMPTION BY RESPONDENT OR ONE OF RESPONDENT'S EMPLOYEES.

ALSO THAT ON TWO SEPARATE OCCASIONS RESPONDENT OR RESPONDENT'S AGENT, SERVANT OR EMPLOYEE SOLICITED PERSONS FOR IMMORAL OR SEXUAL PURPOSES.

AND FINALLY THAT ON ANOTHER FOUR SEPARATE OCCASIONS, RESPONDENT OR RESPONDENT'S AGENT, SERVANT OR EMPLOYEE SOLD OR PERMITTED OTHERS TO SELL A NARCOTIC ON THE LICENSED PREMISES.

AFTER HEARING EVIDENCE PRESENTED BY BOTH PARTIES, AN ADMINISTRATIVE LAW JUDGE DETERMINED THAT AGENCY STAFF MET ITS BURDEN OF PROOF TO PROVE UP THE AFOREMENTIONED VIOLATIONS AND ISSUED A PROPOSAL FOR DECISION RECOMMENDING THAT RESPONDENT'S MIXED BEVERAGE PERMIT, ALONG WITH ITS TWO SUBORDINATE CERTIFICATES, BE CANCELED.

AT THIS TIME, THIS MATTER IS RIPE FOR YOUR CONSIDERATION AND ISSUANCE OF A FINAL ORDER, EITHER ADOPTING OR MODIFYING THE PROPOSAL FOR DECISION.

ALL RIGHT, COMMISSIONERS, DO YOU HAVE ANY COMMENTS OR QUESTIONS? NO. THANK YOU.

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 TO SIGN THE ORDER ON BEHALF OF THE COMMISSION.

IS THERE A SECOND TO THIS MOTION? SECOND. THANK YOU, COMMISSIONER MACK.

I HAVE A SECOND. WE WILL NOW VOTE.

[01:00:16]

ALL HAVE VOTED. OKAY.

ALL HAVE VOTED.

THANK YOU.

ALL RIGHT. OUR NEXT AGENDA ITEM IS CONSIDERATION AND POTENTIAL ACTION ON ADOPTION OF COMPLETION OF REVIEW OF CHAPTER 50 GENERAL COUNSEL

[6. Rules]

PERSON. HERE'S.

THANK YOU, COMMISSIONERS. FOR THE RECORD, JAMES PERSON, TABC'S, GENERAL COUNSEL.

IN THE MARCH MEETING, YOU VOTED TO PROPOSE AMENDMENTS TO SEVERAL RULES IN CHAPTER 50 OF THE ADMINISTRATIVE CODE.

THOSE RULES COVER SELLER SERVER AND DELIVERY DRIVER TRAINING.

THE SPECIFIC RULES AT ISSUE ARE SECTIONS 50.4, 0.15, 0.17, .19, .20, .23 AND 0.31.

THE PROPOSED CHANGES ARE SIMPLY A CLEANUP.

THEY FIX SOME GRAMMATICAL ERRORS AND CORRECT THE TITLE OF ONE RULE, AND THAT'S IT.

AS EXPECTED, WE DID NOT RECEIVE ANY PUBLIC COMMENTS ON THE PROPOSAL, SO STAFF IS NOW ASKING THAT YOU VOTE TO ADOPT THE AMENDMENTS, AND I'M HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE. COMMISSIONERS.

DO WE HAVE ANY QUESTIONS OR COMMENTS? OKAY. I MOVE TO APPROVE ADOPTION ON COMPLETION OF REVIEW OF CHAPTER 50 AS RECOMMENDED BY STAFF.

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

I HAVE A SECOND. WE WILL NOW VOTE.

ON THE PHONE. ALL RIGHT.

ALL VOTED THANK YOU.

OUR VOTES HAVE BEEN RECORDED AND MOTION IS NOW APPROVED.

THE NEXT ITEM.

THE NEXT ITEM IS EXECUTIVE SESSION.

OH, SORRY. SORRY, SORRY, SORRY.

THE NEXT ITEM. LET ME GET THIS RIGHT.

WELL, NO, WAIT. DO I HAVE THE RIGHT THING? ADMINISTRATIVE RULES. 6.2.

6.2. OKAY, HERE WE GO.

THE NEXT AGENDA ITEM IS CONSIDERATION AND POTENTIAL ACTION ON ADOPTION OF COMPLETION OF REVIEW OF CHAPTER 50.

WE JUST DID THAT.

THE FIRST ONE WAS AMENDMENTS TO SEVERAL OF THE SECTIONS, AND THIS ONE WAS ACTUALLY THE RULE REVIEW.

THE ACTUAL RULE. OKAY.

GENERAL COUNSEL, FLOOR'S ALL YOURS.

SO ALSO AT THE MARCH MEETING, YOU VOTED TO INITIATE THE STATUTORILY MANDATED FOUR YEAR REVIEW OF THE FOLLOWING RULES IN CHAPTER 50 SECTIONS 50.1, .3, .4, .5, .8 0.12 THRU 0.20, 50.23 AND 50.26 THROUGH 50.33. STAFF REVIEWED THESE RULES AND CONCLUDED THAT THE REASONS FOR INITIALLY ADOPTING THESE RULES CONTINUE TO EXIST AND THAT THEY SHOULD BE READOPTED.

WE DID NOT RECEIVE ANY PUBLIC COMMENTS CONCERNING THIS REVIEW AND STAFF IS NOW ASKING THAT YOU VOTE TO READOPT THESE RULES CONSISTENT WITH THE ADMINISTRATIVE PROCEDURE ACT.

OKAY, COMMISSIONERS, DO YOU HAVE ANY COMMENTS OR QUESTIONS? ALL RIGHT. THEN I MOVE TO APPROVE ADOPTION ON COMPLETION ON REVIEW OF CHAPTER 50, AS RECOMMENDED BY STAFF.

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

I HAVE A SECOND. WE WILL NOW VOTE.

OKAY. EVERYONE HAS VOTED.

OUR VOTES HAVE BEEN RECORDED AND MOTION IS APPROVED.

[7. Executive Session]

NOW WE GET TO GO TO OUR NEXT ITEM EXECUTIVE SESSION.

THE COMMISSION WILL NOW GO INTO EXECUTIVE SESSION UNDER GOVERNMENT CODE 551.074, 551.071 AND 551.089.

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

THE DATE IS THURSDAY, MAY 25TH, 2023, AND THE TIME IS 11:47 A.M..

THE NEXT IS POTENTIAL ACTION ON ITEMS DISCUSSED IN EXECUTIVE SESSION AND THERE WILL BE NO ACTION TAKEN.

[8. Closing Items]

THE NEXT IS THE ANNOUNCEMENT OF THE NEXT MEETING DATE.

THE NEXT SCHEDULED MEETING DATE IS PLANNED FOR TUESDAY, JULY THE 5TH, 2020.

[01:05:05]

JULY 25TH.

SORRY, I'M ALREADY GRABBING MY PHONE BECAUSE I KNOW THAT'S PROBABLY NOT GOING TO WORK.

COMMISSIONERS. DO YOU WANT TO DISCUSS THAT DATE? DO WE HAVE ANY ISSUES OR CONFLICTS? I'M GOING TO BE OUT THAT WHOLE WEEK.

I CAN'T MAKE IT. OKAY.

JULY 25TH.

SO WHY DON'T WE.

WE CAN. LOU ANN, WE'LL LOOK AT SOME DATES AND SEND THEM OUT TO THE COMMISSIONERS FOR OUR NEXT MEETING.

I WAS GOING TO ASK THE EXECUTIVE DIRECTOR IF IT'S POSSIBLE TO DO ANOTHER OFFSITE AT ONE OF THE COMMISSIONER CITIES, POSSIBLY EL PASO.

EL PASO AT LONDON.

ANYTHING YOU WOULD LIKE US TO IF IT'S POSSIBLE.

SO THE ONLY THING I'D SAY IS BECAUSE IT'S THE MIDDLE OF THE SUMMER, THERE'S A REALLY HIGH CHANCE THAT THAT AT LEAST ONE OF US IS GOING TO BE IT'S GOING TO BE TRAVELING.

SO LIKE, I'M TRAVELING THE WEEK BEFORE THOSE DATES AND THE WEEK AFTER.

AND PART OF THE REASON WHY I CHOSE THOSE DATES IS IN ANTICIPATION OF HAVING HAVING THE MEETING THAT THAT WEEK.

AND SO ANYWAY, I JUST WANT US TO.

WHAT WEEKS ARE YOU YOU'RE GOING YOU'RE GOING THE WEEK BEFORE AND AFTER WHAT WAS TENTATIVELY SCHEDULED.

YES. IN ANTICIPATION THAT WE WOULD BE HAVING A MEETING THAT'S THAT WEEK 25TH.

BEAR THAT OUT THERE. AND AGAIN, THERE'S PROBABLY GOING TO BE A CONFLICT BETWEEN THE FIVE OF US PRETTY MUCH EVERY WEEK.

SO ANYWAY, JUST WANTED TO MENTION THAT.

OH, LOOK AT YOU.

HAPPY? I CAN'T QUITE FIT, BUT THAT WORKS FOR EVERYONE ELSE.

MAY BE THE BEST DATE STILL.

OKAY, WE'LL BE OUT OF THE COUNTRY.

OKAY. WELL, YOU KNOW, THEY HAVE ZOOM, YOU KNOW, TEN HOURS AHEAD.

I'M JUST KIDDING. COMMISSIONER BOATWRIGHT.

YOU'RE ABSOLUTELY RIGHT.

IT'S JUST GOING TO BE A BUSY SEASON.

BUT WE'LL WORK ON EVERYBODY'S CALENDAR AND WE'LL JUST DO THE BEST THAT WE CAN.

ALL RIGHT. THANK YOU.

THE NEXT IS ADJOURNMENT.

SO THE TIME IS NOW.

11:50 A.M.

AND WE ARE ADJOURNED.

THANK YOU, EVERYBODY, FOR BEING HERE AND BEARING WITH.

THANK YOU, COMMISSIONER BOATWRIGHT.

ALL RIGHT. THANK YOU.

* This transcript was compiled from uncorrected Closed Captioning.