[00:00:01] SHOWTIME? EXCELLENT. ALL RIGHT, LADIES AND GENTLEMEN, THE FIRST AGENDA ITEM IS CALLED TO ORDER. [1. Opening Items] THE TIME IS 10:34 A.M. ON TUESDAY, AUGUST 8TH, 2023. WE HAVE A FULL QUORUM. I WANTED TO MY BRIEF OPENING REMARKS MENTION A COUPLE OF THINGS THAT I THINK ARE SOMEWHAT TIMELY. FIRST OF ALL, I WOULD LIKE TO RECOGNIZE TOM SPILLMAN AND THANK YOU FOR INVITING US TO COME TO THE TEXAS PACKAGE STORE ASSOCIATION CONVENTION LAST WEEK AND BEING A PART OF IT, AND ALSO FOR YOUR SUPPORT OF THIS AGENCY FOR SO MANY YEARS, BUT I ALSO WANTED TO THANK OUR TEAM, JAMES AND YOLANDA AND EXECUTIVE DIRECTOR GRAHAM AND JARED, WHO ALL, I THINK SPENT A VERY, VERY PRODUCTIVE TIME SPEAKING TO THE ASSOCIATION ABOUT ISSUES, ABOUT THE LEGISLATURE, THE LAST LEGISLATIVE SESSION AND KEEPING THAT LINE OF COMMUNICATION WITH OUR INDUSTRY. YOU GUYS DID A GREAT JOB. I WAS ALSO PRIVILEGED TO ADDRESS THE GROUP, AND ONE OF THE THINGS THAT I TALK ABOUT AND IT'S JUST I FEEL LIKE IT'S SOMETHING THAT WE NEED TO ALWAYS CONTINUE TO REINFORCE, ESPECIALLY AS A REGULATORY REGULATOR, ESPECIALLY AS A GOVERNMENT AGENCY, ESPECIALLY WHEN THERE CONTINUES TO BE AND IN SOME CASES, A WELL-DESERVED SKEPTICISM AND DISTRUST OF GOVERNMENT. SO I THINK IT IS MINDFUL FOR US AS A REGULATOR TO ACTUALLY GO OUT OF OUR WAY TO ENSURE THAT TRUST IS MAINTAINED AND TO RECOGNIZE THAT WHO WE SERVE ARE THE PEOPLE OF TEXAS AND THE INDUSTRY THAT WE REGULATE AND IT'S NOT THE OTHER WAY AROUND. I JUST HAD AN OPPORTUNITY TO RETURN FROM A SOUTH AMERICAN COUNTRY WHERE I'D SPENT ABOUT FIVE DAYS, AND, YOU KNOW, FORGIVE ME FOR BEING SLIGHTLY TANGENTIAL HERE, BUT THIS WAS A COUNTRY THAT AT ONE TIME HAD A GREATER GDP THAN THE UNITED STATES, A HUGE EXPORTER OF AGRICULTURAL GOODS, OIL AND GAS, WINE, FABULOUS SKI SLOPES, A CAPITAL CITY THAT WOULD RIVAL PARIS OR MADRID IN ITS DAY, AND YOU GO THERE TODAY AND IT IS AT BEST A SHADOW OF ITS FORMER SELF. INFLATION IS OVER 100%. CRIME IS OUT OF CONTROL, AND WHEN I ASKED EVERYONE BECAUSE I JUST YOU KNOW, I'M SORT OF A PEOPLE PERSON, I'D LIKE TO UNDERSTAND HOW DID THIS HAPPEN? AND OBVIOUSLY IT'S BEEN HAPPENING FOR MANY YEARS, BUT EVERY SINGLE PERSON THAT I SPOKE TO, WHETHER IT WAS A SHOPKEEPER OR A HOUSEKEEPER, EVERYONE SAID IT'S BECAUSE THE GOVERNMENT IS CORRUPT AND THE GOVERNMENT EXISTS TO SERVE ITSELF AND NOT THE PEOPLE. SO THEY'VE NATIONALIZED THE COMPANIES, THEY'VE TAKEN AWAY PRIVATE ENTERPRISE, AND THEY PUT THEIR BROTHERS IN LAW AND FAMILY MEMBERS IN CHARGE OF FORTUNE 500 COMPANIES, WHICH IS ALWAYS A DISASTER, AND SO THE REASON WHY I WANT TO SAY THAT IS I KNOW THAT'S EXTREME, BUT NEVER SHALL THAT BE SOMETHING THAT ANYONE SAYS ABOUT THIS AGENCY, AND I BELIEVE THAT THE LEADERSHIP THAT WE HAVE NOW ARE SO FOCUSED ON ENSURING THAT WE EXIST TO SERVE. TOM, YOU AND YOUR CONSTITUENTS AND PEOPLE IN THE INDUSTRY AND NOT THE OTHER WAY AROUND. SO I JUST WE HAVE TO HELP THEM TO SUCCEED. WE HAVE TO HELP THEM NAVIGATE. IT'S HARD ENOUGH TO RUN A BUSINESS, FOLKS, BUT THEN WHEN YOU HAVE REGULATORS WALKING IN, WHICH I'M IN A REGULATED BUSINESS, THAT ALWAYS INCREASES THE ANXIETY. WHAT DID I DO? DID I DO SOMETHING WRONG? AND LIKE I SAID, 95% OF OUR INDUSTRY MEMBERS ARE LAW ABIDING CITIZENS. YES, THEY MAKE MISTAKES, HONEST MISTAKES. OUR JOB IS NOT TO PENALIZE THEM UNJUSTLY, BUT TO KEEP THEM ON THE RIGHT PATH SO THEY CAN CONTINUE TO BE SUCCESSFUL, AND I THINK THAT'S SOMETHING THAT YOU GUYS PREACH AND YOU DELIVER. THE LAST THING I WANTED TO SAY WAS I THINK SOME OF YOU KNOW THAT I HAVE HAD A CERTAIN PASSION ABOUT THE BYOB BUSINESS AND THE PROBLEMS THAT IT FACES. NOW, AGAIN, LIKE EVERYTHING ELSE, THERE ARE PLENTY OF GREAT BYOB, THE ITALIAN RESTAURANT DOWN THE ROAD THAT LETS YOU BRING YOUR WINE VFW HALLS. THAT'S NOT WHAT I'M TALKING ABOUT. I'M TALKING ABOUT PEOPLE THAT HAVE USED BYOB TO GET AROUND US TO BASICALLY RUN UNREGULATED BARS, TO OVER SERVE, TO SERVE MINORS, TO SELL NARCOTICS, TO BE INVOLVED IN IN CRIME. SENATOR MILES FROM HOUSTON AND I SHARE THIS, AND TODAY, TO MY POINT, COVER OF THE HOUSTON CHRONICLE TODAY, BYOB CLUBS AND BARS AVOID SCRUTINY. TABC WAS MENTIONED, AND BASICALLY THE ISSUE IS THEY'RE TRYING TO DO THINGS AT THE LOCAL LEVEL, BUT THEY DON'T HAVE THE CAPACITY TO DO IT. [00:05:07] I'M NOT ADVOCATING FOR LAW CHANGE FROM THIS POSITION, BUT I'M SAYING THAT IT IS SOMETHING FOR THOSE THAT ARE LISTENING THAT WE IN THIS AGENCY ARE MINDFUL OF. WE KNOW IT'S A PROBLEM. WE'RE NOT IGNORING IT, AND WE ARE HOPEFUL THAT THERE WILL COME A TIME WHEN WE CAN COME TO A SOLUTION SO THAT THESE CESSPOOLS WILL STOP DESTROYING PEOPLE'S LIVES, AND JUST THIS IS A HUGE ARTICLE ABOUT THE MURDERS THAT ARE GOING ON, THE VIOLENT CRIMES, AND IT'S VERY CHALLENGING. SO AND PEOPLE COME TO ME AND SAY, WHY AREN'T YOU DOING ANYTHING ABOUT IT? AND I'M SURE THEY COME TO YOU AND YOU AND ASK YOU THE SAME THING, AND WE ARE BEING WE ARE ASSISTING WHEN WE CAN, ESPECIALLY IF WE THINK THEY'RE SERVING ALCOHOL ILLEGALLY, BUT IT'S A PROBLEM AND IT'S SOMETHING THAT WE ARE MINDFUL OF. SO THIS IS A TIMELY ARTICLE. I WANT TO MENTION ALSO THAT THE ASTROS WERE AT THE WHITE HOUSE YESTERDAY, BUT I DID MANAGE TO SHOW THAT ALTHOUGH, JAMES, YOU DID MENTION THAT THE RANGERS ARE IN FIRST PLACE. [CHUCKLING] SO, YOU KNOW, I HAVE TO EAT A LITTLE BIT OF CROW FOR ALL OF OUR FRIENDS FROM DALLAS ADJACENT. SO WITH THAT, THANK YOU ALL FOR BEING HERE. I'D ALSO LIKE TO THANK COMMISSIONER MARINO FOR SERVING AS PRESIDING OFFICER AT THE LAST MEETING. SO THANK YOU VERY MUCH FOR ASSISTING IN THAT REGARD. WITH THAT, LADIES AND GENTLEMEN, LET US HONOR THIS GREAT COUNTRY. THAT WILL CONTINUE TO BE GREAT AS LONG AS WE CONTINUE TO DO OUR JOBS AS CITIZENS AND AS REGULATORS. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. THANK YOU. ALL RIGHT. THE NEXT ITEM IS APPROVAL OF COMMISSION MEETING MINUTES OF MAY 25TH, 2023. I SO MOVE. IS THERE A SECOND? SECOND. COMMISSIONER ATKINS. THANK YOU, SIR. WE WILL NOW VOTE. BY THE WAY, I CHANGED MY AFTERSHAVE, WHICH I'M NOT SURE YOU GUYS COULD HAVE GIVEN ME. FAIR WARNING YOU WEREN'T GOING TO SHOW. [INAUDIBLE] THANK YOU. THE MINUTES ARE APPROVED AS WRITTEN. OUR VOTES HAVE BEEN COUNTED. THANK YOU ALL. ALL RIGHT. [2. Recognitions] SOME OF YOU NOTICED THAT WE HAVE A CAKE OUT FRONT. I WAS SO EXCITED BECAUSE I DON'T THINK IT'S BEEN SINCE COVID, SINCE WE'VE HAD A CAKE, AND IT'S A BITTERSWEET MOMENT, AND IT'S BECAUSE WHENEVER YOU HAVE SOMEBODY THAT HAS PUT THEIR HEART AND SOUL INTO PUBLIC SERVICE. IT'S AN EXTRAORDINARY TIME TO RECOGNIZE THEM. IT'S A HAPPY TIME FOR THEIR SERVICE. IT'S A BITTER TIME FOR THEIR ABSENCE. CHIEF, YOU KNOW HOW MUCH I LOVE. NOW YOU'RE GOING TO GET ME WEEPY HERE. MAYBE I SHOULD STOP, BUT THE WAY YOU OBSERVED YOUR FELLOW CITIZENS, THE WAY YOU HAVE SERVED YOUR STATE, THE WAY YOU HAVE SERVED YOUR NATION, SERVED IN THE MILITARY, LAW ENFORCEMENT. YOU ARE A MODEL PUBLIC SERVANT, AND I AM PERSONALLY GRATEFUL AND HONORED TO HAVE WORKED WITH YOU, AND SO I WOULD LIKE TO AT THIS MOMENT RECOGNIZE VICTOR KUYKENDOLL, EXECUTIVE CHIEF OF ENFORCEMENT AND DEPUTY DIRECTOR HALL, IF YOU WOULD, PLEASE TAKE. GO THE MIC. OH, OKAY. WELL. IS SOMEBODY GOING TO READ PRESENT. OKAY. SHE GOT. YES. YOLANDA. OKAY. IT IS MY HONOR TO RECOGNIZE EXECUTIVE CHIEF KUYKENDOLL. VICTOR KUYKENDOLL BEGAN HIS LAW ENFORCEMENT CAREER AFTER GRADUATING FROM THE EAST TEXAS POLICE ACADEMY IN 1992. HE WAS A CRIMINAL INVESTIGATOR WITH THE WASHINGTON COUNTY SHERIFF'S OFFICE BEFORE BECOMING AN TABC AGENT IN 2001. VICTOR WAS THE FIRST WAS FIRST STATIONED AT TABC'S EL PASO REGIONAL OFFICE BEFORE BEING TRANSFERRED TO OFFICES IN BELTON AND BRYAN. HE WAS PROMOTED TO SERGEANT AT THE WACO REGIONAL OFFICE IN 2008 AND AGAIN TO LIEUTENANT IN 2012. VICTOR WAS PROMOTED TO MAJOR OVER REGION TWO AND TRANSFERRED TO ARLINGTON REGIONAL OFFICE. [00:10:02] HE WAS TRANSFERRED TO REGION FOUR AND ASSIGNED TO THE AUSTIN REGIONAL OFFICE IN 2017. SOON AFTER, HE WAS ASKED TO SERVE AS TABC'S ACTING CHIEF OF ENFORCEMENT. HE BECAME CHIEF OF LAW ENFORCEMENT IN SEPTEMBER OF 2018 AND WAS APPOINTED TO HIS CURRENT ROLE OVERSEEING THE ENFORCEMENT DIVISION IN 2021. VICTOR HOLDS A BACHELOR'S DEGREE FROM TARLETON STATE UNIVERSITY IN CRIMINAL JUSTICE ADMINISTRATION AND GRADUATED FROM THE INSTITUTE OF LAW ENFORCEMENT ADMINISTRATION'S SCHOOL OF EXECUTIVE LEADERSHIP. HE ALSO HOLDS A TCOLE MASTER PEACE OFFICER LICENSE. IN 1999, HE RECEIVED THE STATE OF TEXAS VALOR AWARD FOR SAVING THE LIFE OF A TRAPPED TEENAGER FROM A BURNING VEHICLE AFTER AN ALCOHOL RELATED CRASH. IN 2019, HE WAS AWARDED THE JAIME PADRON MEMORIAL HERO AWARD FOR IMPLEMENTING TABC TRACE PROGRAM. VICTOR IS RETIRING AUGUST 31ST, 2023, WITH 31 YEARS OF LAW ENFORCEMENT SERVICE, 22 OF THOSE WHICH WERE AT TABC. IT IS A TRUE HONOR AND WE WISH YOU THE BEST, VICTOR. THANK YOU FOR EVERYTHING THAT YOU'VE DONE. GO AHEAD. OH, YES. SO I'M VERY HUMBLED AND HONORED FOR THIS RECOGNITION. I OWE SO MANY PEOPLE THANK YOU'S. I'M GOING TO START WITH WHAT MATTERS MOST TO ME IS MY FAMILY. MY WIFE, JAMIE, MY BEAUTIFUL WIFE, JAMIE. SHE'S BEEN MY ROCK. YOU'VE BEEN THROUGH IT THICK AND THIN. YOU'VE DEALT WITH THE WORRIES OF A KNOCK ON THE DOOR, AND [INAUDIBLE]. MY GIRLS, I ALWAYS FELT LIKE YOU HELD ME UP ON A PEDESTAL AS YOUR HERO. I ONLY WISH THAT I WAS ABLE TO MEET THAT EXPECTATION AND THAT I WAS ABLE TO REPRESENT YOU ALL'S LOVE AND HONOR FOR ME THROUGHOUT THE MANY YEARS. MY MOTHER WASN'T ABLE TO JOIN US TODAY WHO BUILT THE FOUNDATION THAT MADE IT POSSIBLE FOR ME TO BE SUCCESSFUL IN LIFE AND IN CAREER? TO THE MANY COWORKERS IN THIS ROOM WHO'VE INSPIRED ME, AND I AM IN AWE AT ALL THAT YOU DO. I WAS JUST HERE TO WATCH THE SHOW THAT YOU ALL DID, AND I WAS VERY GRATEFUL FOR THE EXPERIENCES WE'VE HAD, EVEN TO THE INDUSTRY MEMBERS IN HERE. YOU KNOW, I KNOW THAT [INAUDIBLE] SOMETIMES GETS A BAD RAP, BUT I THINK THAT YOU CAN KNOW THAT WE'VE COME A LONG WAY AND THAT THE BADGES AND GUNS ARE HERE ONLY TO GO AFTER THE WORST OF THE WORST. WE WORK COLLABORATIVELY TO ADDRESS THE ISSUES WITHIN THIS INDUSTRY AND TO COME TO A RESOLUTION THAT WORKS FOR BOTH SIDES INVOLVED. YOU'RE HERE TO OUR EXECUTIVE TEAM. I THINK THAT WE HAVE AN EXCELLENT EXECUTIVE TEAM AND A BRIGHT FUTURE, AND I LOOK FORWARD TO YOUR CONTINUED SUCCESS. DIRECTOR GRAHAM, I'VE KNOWN YOU SINCE YOU STARTED HERE, AND I KNOW THAT YOU HAVE A HEART FOR THIS AGENCY AS BIG AS YOUR CHEST, AND I KNOW THAT IF YOU EVER FALTER, IT'S NOT BECAUSE IT WAS A MISTAKE OF THE MIND. IT WAS ONLY BECAUSE OF THE MISTAKE OF THE HEART, AND I CAN [INAUDIBLE] TELL YOU THAT THIS AGENCY IS IN A GOOD PLACE RIGHT NOW. TO THE COMMISSIONERS WHO ARE JOINING US REMOTELY, WISH YOU WERE HERE TODAY, AND ESPECIALLY TO CHAIRMAN LILLY. I'VE NEVER SEEN A COMMISSION SO ACTIVELY ENGAGED IN THE SUCCESS OF A STATE AGENCY AND ESPECIALLY TO GO DOWN TO THE CAPITOL AND ADVOCATE FOR EVERYTHING THAT WE NEEDED AND EVERYTHING THAT YOU DO AND CONTINUE TO DO. YOU HAVE MINE AND ALL OF OUR APPRECIATION TO ALL THE COMMISSIONERS. THANK YOU FOR ALL YOU DO. THANK YOU. I CAN'T SAY ANY MORE THAN THAT. I'M VERY BLESSED AND I'M HONORED AND I'M VERY GRATEFUL FOR THE OPPORTUNITY THAT I'VE BEEN ALLOWED TO SERVE YOU. MY COWORKERS, THE STATE, AND MY FELLOW CITIZENS IN THIS INDUSTRY. THANK YOU VERY MUCH. ALL RIGHT. STATE OF TEXAS. OFFICE OF THE GOVERNOR. GREETINGS. VICTOR KUYKENDOLL. CONGRATULATIONS ON YOUR WELL-DESERVED RETIREMENT AFTER 22 YEARS OF SERVICE TO THE PEOPLE OF TEXAS. [00:15:07] PUBLIC SERVICE IS AN HONOR FOR ITS FOUNDATION. IS IN THE PUBLIC TRUST. DAILY STATE EMPLOYEES EARN THIS TRUST, DEMONSTRATING DEPENDABILITY, INITIATIVE AND WIDE WISE STEWARDSHIP OF PUBLIC RESOURCES. THEIR ENDLESS DEDICATION AND I WOULD UNDERSCORE ENDLESS DEDICATION. HIGHLIGHTS OF THE STATE'S GREATEST ASSET LIES IN THE PEOPLE WHO CALL IT HOME. FIRST LADY CECILIA ABBOTT JOINS ME IN SENDING BEST WISHES FOR AN ENJOYABLE AND FULFILLING RETIREMENT. SINCERELY, GREG ABBOTT, GOVERNOR. FAMILY, PLEASE. THIS IS MY WIFE, JAMIE, MY OLDEST, NICOLE, AND MY YOUNGEST, CASEY. GREAT. THANK YOU. ONE MORE FOR YOU, CHIEF FROM THE AGENCY. HERE'S THE BIGGEST COIN EVER. [CHUCKLING] IT'S BEEN A PLEASURE TO SERVE. THANK YOU. THANK YOU SO MUCH FOR THE FRIENDSHIP. EVERYTHING YOU TAUGHT ME AND FOR SERVING THIS AGENCY. I'M ONLY A PHONE CALL AWAY, AND I REALLY, REALLY. I APPRECIATE THAT VERY MUCH. THANK YOU. YOLANDA JAMES. COME ON. COME ON. COME ON. PLEASE. COME ON. SORRY. [INAUDIBLE] [INAUDIBLE]. OH, GOSH. LET'S GET YOU GUYS TO SQUEEZE IN JUST A LITTLE BIT MORE. THERE YOU GO. I'M NOT AS BIG AS I USED TO BE SO WE CAN [INAUDIBLE]. [CHUCKLING] GOT IT. THANK YOU. THANK YOU. [INAUDIBLE] ALL RIGHT. I'D LIKE TO SAY THE BAR IS OPEN, BUT I CAN'T REALLY DO THAT RIGHT NOW. [CHUCKLING] I GUESS WE COULD. WE WILL NOW BE IN RECESS FOR A RECEPTION HONORING THE KUYKENDOLL FAMILY. SO WE WILL NOW BE IN RECESS. THE TIME IS 10:52. WE'LL BE BACK IN APPROXIMATELY 15 MINUTES. ANYWAY, WE ARE NOW GOING TO RECONVENE THE TEXAS ALCOHOLIC BEVERAGE COMMISSION MEETING. TIME IS 11:10. OUR NEXT AGENDA ITEM IS THE 88TH TEXAS LEGISLATIVE SESSION UPDATE DIRECTOR MORELOCK AND DIRECTOR STAPLES, WHICH, BY THE WAY, BEFORE YOU GET STARTED, [3. Reports] YOU ALL DID A GREAT JOB. IT'S A TOUGH THAT'S A TOUGH THING TO DO, AND YOU ALL REPRESENTED THIS AGENCY HONORABLY, PROFESSIONALLY, AND YOU'VE GOT A LOT OF GREAT THINGS DONE. SO THANK YOU. THANK YOU. WE APPRECIATE THAT, MR. CHAIRMAN. WELL, GOOD MORNING, MR. CHAIRMAN AND COMMISSIONERS. GREAT TO BE WITH YOU TODAY, AND TODAY, WE'RE GOING TO GIVE YOU AN UPDATE ON WHAT'S HAPPENED WITH THE 88TH TEXAS LEGISLATURE SINCE WE ALL LAST MET IN MAY AND WHAT NEW LAWS ARE GOING INTO EFFECT IN SEPTEMBER. NEXT SLIDE, PLEASE. SO SINCE THE LAST COMMISSION MEETING, THE 88TH TEXAS LEGISLATURE ENDED ON MEMORIAL DAY, AND IN JUNE, THE GOVERNOR SIGNED A LOT OF BILLS INTO LAW. HE FILED SOME WITHOUT SIGNATURE AND VETOED SOME OTHERS, AND ALSO THIS SUMMER, IN JUNE AND JULY, THERE WERE TWO SPECIAL SESSIONS. HOWEVER, THERE WERE NO BILLS THAT WERE ADOPTED THAT IMPACT TABC, AND ALSO THERE'S AN UNDERSTANDING THAT THERE WILL BE A THIRD SPECIAL SESSION IN OCTOBER ON THE SUBJECT OF SCHOOL VOUCHERS, AND SINCE LEGISLATORS OFTEN DO FILE BILLS THAT ARE NOT RELATED TO THE SUBJECT OF THE SPECIAL SESSION, TABC WILL BE READY TO MONITOR ANY BILLS THAT GET FILED IN CASE THERE'S SOMETHING THAT COULD IMPACT THE AGENCY, AND WE NEED TO ENGAGE. SO WE'LL KEEP YOU INFORMED ON THAT AS THINGS DEVELOP. NEXT SLIDE, PLEASE. SO NOW ON TO THE STATE BUDGET. WE'VE HAD SEVERAL UPDATES FOR YOU ALL THROUGHOUT THE LEGISLATIVE PROCESS AND NOTHING HAS CHANGED ABOUT THE FUNDS TABC IS RECEIVING SINCE WE LAST UPDATED YOU IN MAY, BUT WE DO HAVE SOME ADDITIONAL INFORMATION ABOUT HOW THIS WILL BE IMPLEMENTED, SPECIFICALLY ABOUT SALARY INCREASES FOR STATE EMPLOYEES. SO FROM THE SUPPLEMENTAL BUDGET, WHICH IMPACTS TABC IMMEDIATELY IN ITS CURRENT FISCAL YEAR, STATE EMPLOYEES ARE RECEIVING A [00:20:06] MINIMUM OF 5% SALARY INCREASE AS OF JULY 1ST. SO THAT'S ALREADY GONE INTO EFFECT AND THAT SALARY INCREASE IS CONTINUED INTO THE NEW FISCAL YEAR STARTING SEPTEMBER 1ST HERE IN JUST LESS THAN A MONTH. ADDITIONALLY, STATE EMPLOYEES WILL RECEIVE A SECOND SALARY INCREASE ON SEPTEMBER 1ST NEXT YEAR, IN 2024, AND I SAID A MINIMUM OF 5% BECAUSE FOR EMPLOYEES MAKING 60,000 OR LESS, THEY ARE RECEIVING MORE THAN A 5% INCREASE SO THAT THEY WILL SEE, YOU KNOW, 3000 IN THEIR ANNUAL ADDITIONAL AND ADDITIONALLY IN THEIR ANNUAL SALARY WITH EACH INCREASE THE TWO INCREASES AND ON TOP OF THAT INCREASE FOR ALL STATE EMPLOYEES, THE AGENCY RECEIVED ADDITIONAL FUNDS FOR ADDITIONAL SALARY INCREASES FOR SPECIFICALLY FOR OUR REGULATORY STAFF IN ORDER TO GET THOSE POSITIONS CLOSER TO THE STATE AUDITOR'S RECOMMENDED MIDPOINT FOR THOSE POSITIONS AND TO ALLOW TABC TO OBTAIN TO RETAIN AND TRAIN AND HAVE A QUALIFIED WORKFORCE TO HELP TEXAS BUSINESSES. SO THAT'S ALL I'VE GOT FOR YOU ON THE BUDGET. IF THERE AREN'T ANY QUESTIONS, I WILL. I HAVE QUESTIONS. YES. SO ON THE JUST ON THE MATH, SO IT LOOKS LIKE THERE'S A 5% IN JULY EFFECTIVE ALREADY, THEN ANOTHER 5%. SO IS THAT ADDITIONAL 5% ON THE PRE JULY OR IS IT ON THE SO IS IT SORT OF MORE THAN 10%? SEE WHAT I'M SAYING? I THINK I THINK IT'S ALL BASED ON WHAT FOLKS WERE MAKING I THINK THE FALL BEFORE THE SESSION. ALL IN ALL, IT'S A 10% INCREASE SPANNED OUT OVER TWO YEARS. THE BASIS IS 2022. CORRECT? OKAY. OKAY. YES, SIR. ANY OTHER QUESTIONS? COMMISSIONERS, DO YOU ALL HAVE ANY QUESTIONS? NO QUESTIONS, BUT GREAT WORK ON TRACKING ALL THIS, AND THANK YOU. THANK YOU, SIR, AND WELL, I'LL TURN IT OVER TO MARY ANN TO TALK ABOUT SOME MORE ITEMS THAT WE WERE TRACKING THROUGHOUT THE SESSION THAT ARE NOW COMING TO LIGHT. SO WHEN WE LAST MET IN MARCH, WE WERE TRACKING ABOUT 300 BILLS WITH POTENTIAL IMPACT ON THE AGENCY. ONCE THE DUST IS SETTLED AND BILLS HAVE BEEN SIGNED AND EVERYTHING IS IN LAW, IT'S ABOUT 50 THAT IMPACT THE AGENCY AND A QUARTER OF THOSE IMPACT THE ALCOHOLIC BEVERAGE CODE. SO I'M GOING TO HIGHLIGHT A FEW OF THE BILLS THAT YOU ALL RECEIVED IN AN EMAIL, I DON'T KNOW, A COUPLE OF MONTHS AGO THAT LISTED THOSE 50 OR SO BILLS. ALSO, MOST ARE EFFECTIVE SEPTEMBER 1ST, SO WE'RE ONLY THREE WEEKS AWAY, SO I'LL JUST TALK ABOUT THEM AS THOUGH THEY'RE ALREADY IN PLACE. NEXT SLIDE, PLEASE. SO THE FIRST THREE IMPACT DISTILLERIES WITH CONTRACT DISTILLING THINK OF IT AS DISTILLER A USES THE FACILITIES OR EQUIPMENT OF DISTILLER B TO MAKE DISTILLER A'S PRODUCT. THAT'S THE SIMPLE VERSION, AND WINERIES AND BREWERIES HAVE SIMILAR AUTHORITIES, ALSO SIMILAR TO WINERIES. OUR DISTILLER SAMPLES. SO NOW A DISTILLERY CAN OFFER SAMPLES OF THEIR PRODUCT AT A FESTIVAL OR OTHER CELEBRATORY EVENT, AND THEN THE DISTILLER SELLS TO CONSUMERS. SO IF YOU WERE TO GO TO A TASTING ROOM OF A DISTILLERY, YOU COULD TAKE TWO BOTTLES TO GO AND NOW YOU CAN TAKE FOUR BOTTLES TO GO. SO IT INCREASE IT FROM 2 TO 4, EXCUSE ME, AND THEN THE NEXT TWO BILLS, SENATE BILL 1322 AND 1932, ARE DIRECTED AT COLLECTORS. SO A WINE COLLECTOR OR A COLLECTOR OF DISTILLED SPIRITS, AND SO THE IDEA IS THAT WINE COLLECTOR OR AN ESTATE THAT HAS A COLLECTION CAN SELL WINE TO A RESTAURANT OR DISTILLED VINTAGE DISTILLED SPIRITS TO A PACKAGE STORE. SO THERE WAS A RIDER IN THE APPROPRIATIONS ACT THAT DIRECTED TABC TO WORK WITH THE DEPARTMENT OF AGRICULTURE TO PREPARE A REPORT WITH INFORMATION THAT WOULD ALLOW THE LEGISLATURE TO MAKE TO EVALUATE THE CURRENT WINERY PERMIT, AS WELL AS POTENTIALLY A NEW PERMIT FOR BUSINESSES THAT GROW THEIR OWN GRAPES AND OR MAKE THEIR OWN WINE. NEXT SLIDE, PLEASE. CAN I? YES, SIR. DO YOU MIND? I JUST WANT TO MAKE SURE WE'RE ALL CLEAR. THE DIFFERENCE, THE DIFFERENCE BETWEEN SB 1322 AND SB 1932. IN LAYMAN'S TERMS. ONE IS DISTILLED FOR VINTAGE DISTILLED SPIRITS AND THE OTHER IS FOR VINTAGE WINE, BUT THE IDEA IS THAT YOU COULD SELL PARTS OF YOUR COLLECTION [00:25:06] NOT HAVING A PERMIT. IF YOU HAVE A WINE COLLECTION, YOU DON'T HAVE TO HAVE A PERMIT WITH TABC, BUT YOU CAN SELL PARTS OF YOUR COLLECTION OR THE ENTIRE COLLECTION TO A RESTAURANT IF IT'S WINE OR A PACKAGE STORE. OKAY, SO IT'S ESSENTIALLY THE SAME THING. IT'S JUST ONE WOULD BE IF YOU HAD SOME VINTAGE COGNAC OR SOME VINTAGE WHISKEY THAT WAS 100 YEARS OLD. OKAY. GOT IT. YES, UNDERSTOOD. THANK YOU, AND IT'S NOT LISTED HERE, BUT IT HAS TO BE 20 YEARS OLD. 20 YEARS OLD, RIGHT? RIGHT. I KNOW THIS WAS NOT IN CIRCULATION. THIS HAS BEEN A BIG ISSUE FOR A LONG TIME, SO. ALL RIGHT. THANK YOU. NEXT SLIDE, PLEASE, AND SO FOR DISTRIBUTOR SAMPLES, A DISTRIBUTOR CAN PROVIDE SAMPLES OF MALT BEVERAGE PRODUCTS TO A RETAILER TO GET THE RETAILER TO PURCHASE THAT PRODUCT. THIS PRIVILEGE WAS IN PLACE BEFORE BEER AND ALE CONSOLIDATION IN SEPTEMBER 2021. IT WAS IN PLACE FOR ALE, SO NOW IT'S IN PLACE FOR ALL MALT MALT BEVERAGE PRODUCTS. SENATE BILL 998. SO TO ADDRESS THE FENTANYL OVERDOSES, WE'RE GOING TO DEVELOP A TRAINING PROGRAM WHICH IS REQUIRED BY THE LAW, AND WE'RE GOING TO INCORPORATE THAT INTO THE CELLAR SERVER TRAINING PROGRAM, WHICH IS AVAILABLE TO ALL PERMIT HOLDERS, AND MANY PERMITS ASK EMPLOYEES TO TAKE THAT TRAINING. THE NEW LAW ALSO REQUIRES THAT TRAINING BE TAKEN ANNUALLY BY CERTAIN EMPLOYEES OF WHAT WE'D CONSIDER BARS AND RESTAURANTS, BARS AND NIGHTCLUBS. OKAY. WHO IS THE AUTHOR OF THAT? SENATOR WEST. SORRY? SENATOR WEST, AND WHO WAS THE AUTHOR OF THE SECONDARY MARKET BILL? DO YOU RECALL? THE WINE? THAT ONE? CREIGHTON. IT'S FINE IF YOU DON'T KNOW, YOU CAN JUST GET BACK TO ME. IT'S OKAY. THANK YOU. I'LL GET THAT TO YOU, THOUGH. NO WORRIES. SO THE HB 139, THE LAST THE THIRD ONE, IT APPLIES TO ALL STATE AGENCIES. SO THE IDEA IS THAT WHEN A BILL DIRECTS AN AGENCY TO ADOPT A RULE THAT IN THE PREAMBLE OR THE EXPLANATION OF WHAT THAT PROPOSED RULE DOES, THAT YOU REFERENCED THE BILL NUMBER, AND THEN WHEN THAT PROPOSED RULE IS SENT TO THE TEXAS REGISTER, WITHIN A FEW DAYS, THE AGENCY WILL SEND THE AUTHOR AND SPONSOR OF THAT BILL THE PREAMBLE. SO LUCKILY WE ALREADY REFERENCED THE BILL AND OUR PREAMBLES WE HAVE FOR MANY YEARS. SO BUSINESS AS USUAL FOR US, BUT IT'S NICE TO BE ABLE TO SEND THAT PREAMBLE TO THE AUTHOR, TOO, SO THEY UNDERSTAND SORT OF THE NEXT STEP IN THE PROCESS OF THEIR BILL, AND THEN THE LAST ITEM IT'S ABOUT FOOD AND SAFETY REGULATIONS HAS NOTHING TO DO WITH THE ALCOHOLIC BEVERAGE CODE. HOWEVER, IT COULD IMPACT PERMIT HOLDERS, SO IT PROVIDES THAT A LOCAL GOVERNMENT, THROUGH THEIR PUBLIC HEALTH DISTRICT, CANNOT ASSESS BOTH A LOCAL RESTAURANT FEE AND THE LOCAL FEE AUTHORIZING THE ALCOHOLIC BEVERAGE CODE. SO IT'S ONE OR THE OTHER. THEY CAN'T ASSESS BOTH TO THE SAME ENTITY. HAS THAT BEEN PROBLEMATIC? THE IT HASN'T KICKED IN YET, BUT WE'VE HAD A LOT OF QUESTIONS ABOUT IT. SO WE'VE ALREADY SENT MATERIALS OUT TO LOCAL GOVERNMENTS, TO OUR SUBSCRIBERS, AND WE'LL HAVE INFORMATION ON OUR WEBSITE TO. THANK YOU. NEXT SLIDE, PLEASE. SO NOW THAT WE'RE. WE HAVE A QUESTION FROM COMMISSIONER. THIS IS MACK. YEAH. ON APRIL 9TH, 98, THE PROGRAM THAT WE'RE SUPPOSED TO ADMINISTER. CAN YOU TALK ABOUT WHAT THE ON SITE TREATMENT THAT THE BILL REFERENCES FOR CERTAIN OPIOID RELATED OVERDOSES? PROBABLY NARCAN. HOW IS THAT PROCESS GOING TO WORK? ARE WE JUST ADVISING OR ASSISTING WITH MATERIAL? CAN YOU JUST GIVE ME A LITTLE BIT OF BACKGROUND ON THAT ONE? WE'RE STILL DEVELOPING IT, BUT I THINK WE'RE SUPPOSED TO IDENTIFY THE SIGNS AND SYMPTOMS OF A POTENTIAL OVERDOSE AND THEN HOW TO ADMINISTER THAT ONSITE TREATMENT. SO I THINK NARCAN IS THE BRAND, BUT IT'S A NASAL INHALANT THAT OUR AGENTS CARRY ON THEIR PREMISE ON THEIR PERSON, AND YOU'RE GOING TO START TO THINK, CORRECT ME IF I'M WRONG, BUT WE ARE OBVIOUSLY, WE CAN'T MANDATE IT, BUT WE'RE NOW ALSO SUGGESTING THAT BAR OWNERS HAVE NARCAN ON THE PREMISES IN CASE THERE IS AN ATTACK. SO IT DOES WONDERS IF YOU CAN GET IT ADMINISTERED QUICKLY. IT SAVES A LOT OF LIVES, AND I BELIEVE THERE ARE SOME OTHER ONSITE TREATMENTS AS WELL THAT ARE OUT THERE. SO I'M SURE THE AGENCY WILL GATHER THAT INFORMATION OF WHAT THE OPTIONS ARE. SO EVERYBODY KIND OF HAS [INAUDIBLE] I'M NOT ADVOCATING A PARTICULAR BRAND. I'M SAYING THAT'S THE ONE THAT SEEMS THE ONE IN COMMON TERMINOLOGY THESE DAYS. [00:30:04] YES, SIR. IT'S JUST INTERESTING. IT SAYS CERTAIN PERMITS ARE REQUIRED TO COMPLETE THE TRAINING. IS THIS. I DON'T UNDERSTAND WHY IT'S A PICK AND CHOOSE. ARE THERE SPECIFIC PERMITS THAT HAVE THIS ISSUE SO THAT'S MORE SIGNIFICANT TO OTHERS, OR IS IT THE LEGISLATURE JUST CHOSE PARTICULAR TYPES OF PERMITS, WOULD HAVE TO HAVE THIS TRAINING. THE BILL FOCUSED ON BARS AND NIGHTCLUBS. SO THEY USED A MIXED BEVERAGE PERMIT AND A PRIVATE CLUB PERMIT AND THEN EXEMPTED THOSE THAT WOULD QUALIFY AS A RESTAURANT PER A CERTAIN DEFINITION, THE ALCOHOLIC BEVERAGE CODE. SO THEY'RE REALLY TARGETING. YEAH, BARS AND NIGHTCLUBS WHERE THE ACTIVITY WOULD BE. YES. OKAY. THAT MAKES SENSE. NEXT SLIDE. SO NOW WE BEGIN IMPLEMENTING THESE LAWS THAT WE'VE BEEN TALKING ABOUT. SO EARLIER IN THE SUMMER, A TEAM GOT TOGETHER AND WE TALKED ABOUT WHAT WE NEED TO DO TO IMPLEMENT EACH OF THE PROVISIONS IN NEW LAWS AND THE TIMING AND WHO'S INVOLVED AND WHAT'S ON FIRST, AND SO THIS SLIDE REPRESENTS JUST SOME OF THE ITEMS ON OUR TO DO LIST, AND I'D SAY THOSE FIRST TWO ARE REALLY CONTINUOUS AND REFLECT ALL THE OTHER BULLETS BECAUSE AS WE UPDATE OUR FORMS OR WE UPDATE, MODIFY AIMS, DISTRIBUTE A NEW POLICY, WE WILL BE INFORMING OUR OWN EMPLOYEES AND WE MAY GO A STEP FURTHER WITH TUTORIALS AND WORK SESSIONS, THAT SORT OF THING, DEPENDING ON WHAT THOSE CHANGES ARE, BUT AND THEN ALSO AS FAR AS COMMUNICATING WITH INDUSTRY, WHEN WE CHANGE RULES OR UPDATE ADVISORIES OR PUT SOMETHING NEW ON THE WEBSITE, WE WILL INFORM STAKEHOLDERS AND INDUSTRY THROUGH STAKEHOLDER MEETINGS AND INDUSTRY NEWSLETTERS, THAT SORT OF THING. DIVISIONS ARE ALREADY WORKING ON EXECUTING THEIR TO DO LIST, AND [INAUDIBLE] SUPPORTS THOSE EFFORTS AND WORKS WITH THEM TO MAKE SURE THAT WE MEET OUR TIMELINES AND FULFILL OUR STATUTORY OBLIGATIONS IN A TIMELY MANNER. NEXT SLIDE. ANY QUESTIONS ON THE IMPLEMENTATION LAW COMMISSIONERS. OKAY. THANK YOU. THANK YOU. WELL DONE. THANKS. THANKS AGAIN. I KNOW YOU'RE GLAD THAT [INAUDIBLE] MAKE A COMMENT REAL QUICK. I WANT TO THANK YOU ALL FOR ALL YOUR HARD WORK [INAUDIBLE]. I KNOW IT'S REALLY, REALLY HARD, AND YOU SPEND A LOT OF TIME IN THE CAPITAL, AND I APPRECIATE YOUR EFFORTS. I SAW A LOT OF ITEMS ABOUT AIMS IN YOUR PRESENTATION, AND I KNOW THAT THE AGENCY IS DOING A LOT OF, LOT OF IMPORTANT THINGS BEHIND THE SCENES WITH AIMS, AND I WOULD LIKE FOR THE PUBLIC TO HAVE AN OPPORTUNITY TO SEE MORE ABOUT THE WORK THAT WE'RE DOING ON AMES AND SO I HOPE THAT IN COMING MEETINGS WE HAVE SOME AGENDA ITEMS TO TALK ABOUT AIMS GETS THE PUBLIC AN OPPORTUNITY TO SEE WHAT WE'RE DOING, GIVES THE PUBLIC AN OPPORTUNITY TO COMMENT ON WHAT WE'RE DOING RIGHT, WHAT WE'RE DOING WRONG, WHAT WE CAN DO BETTER. ANYWAY, THANK YOU ALL AGAIN. THANK YOU. THANK YOU, COMMISSIONER BOATWRIGHT, AND THANK YOU FOR YOUR QUESTIONS, COMMISSIONER MACK. ALL RIGHT. OUR NEXT AGENDA ITEM IS THE OFFICE OF GENERAL COUNSEL REORGANIZATION JAMES PERSON. WELCOME, SIR. THANK YOU, MR. CHAIRMAN. FOR THE RECORD, JAMES PERSON, GENERAL COUNSEL. SO IT'S BEEN A LITTLE OVER NINE MONTHS SINCE I JOINED THE AGENCY, AND DURING THAT SHORT PERIOD OF TIME THERE'S BEEN A NUMBER OF CHANGES TO TAX LEGAL TEAM, BOTH TO ITS STRUCTURE AND TO ITS PERSONNEL. I KIND OF HAD A VISION FOR HOW I WANTED THE TEAM ORGANIZED, AND I WANT TO THANK DIRECTOR GRAHAM FOR GIVING ME THE LIBERTY TO KIND OF SEE THAT VISION THROUGH. WHEN I STARTED, THE AGENCY'S LAWYERS WERE HOUSED IN DIFFERENT DIVISIONS. THERE WAS A HISTORICAL DISTINCTION BETWEEN THE OFFICE OF GENERAL COUNSEL AND THE LEGAL SERVICES DIVISION, WHICH I UNDERSTAND WAS PUT INTO PLACE FOR REASONS THAT AREN'T REALLY RELEVANT ANYMORE. SO MOVING FORWARD, ALL THE AGENCY'S LAWYERS WILL BE OFFICIALLY HOUSED IN THE OFFICE OF GENERAL COUNSEL AND THE LEGAL SERVICES DIVISION WILL TECHNICALLY CEASE TO EXIST. THERE WILL BE CASUAL REFERENCES TO LEGAL, I'M SURE, AND THERE'S NO HARM IN THAT. MY GOAL IS TO MAKE THE AGENCY'S LEGAL OPERATIONS AS STREAMLINED AS POSSIBLE AND WITH A CLEAR UNDERSTANDING THAT I AM ULTIMATELY RESPONSIBLE AND ACCOUNTABLE FOR THE LEGAL WORK AT THIS AGENCY, AND I THINK WE'VE ACCOMPLISHED THAT. SO WITH THE SLIDE SHOWS, GENERAL COUNSEL'S NEW ORG CHART, YOU'LL NOTICE THAT THERE IS NO LONGER A DEPUTY GENERAL COUNSEL POST. AFTER ASHLEY HEALY'S DEPARTURE I DECIDED TO DO AWAY WITH THAT POSITION AND HAVE ALL THE MANAGING ATTORNEYS REPORT DIRECTLY TO ME. [00:35:01] ON THE FAR RIGHT OF THE CHART, YOU'LL SEE THE NEW POSITION OF COUNSEL FOR AGENCY AFFAIRS, WHICH IS HELD BY VETERAN ATTORNEY JOE JAMES. BEFORE JOE JOINED GENERAL COUNSEL, HE SERVED AS THE AGENCY'S HUMAN RESOURCES ATTORNEY AND WAS ACTUALLY EMBEDDED IN THE HUMAN RESOURCES DIVISION. IN HIS NEW ROLE, HE WILL CONTINUE TO HANDLE HR WORK, BUT HAS ALSO TAKEN ON THE CONTRACTING AND PROCUREMENT ROLE THAT ASHLEY USED TO FILL. AMONG SOME OTHER THINGS, AND AS THE AGENCY AFFAIRS TITLE SUGGESTS, I WANT JOE AND HIS TEAM TO FOCUS ON INTERNAL ISSUES IMPACTING THE AGENCY. YOU'LL ALSO NOTICE THAT THERE'S A VACANT ATTORNEY POSITION UNDERNEATH JOE WITH THE NEW DUTIES JOE IS TAKING ON, I THOUGHT IT WAS IMPORTANT FOR HIM TO BE ABLE TO DELEGATE SOME OF HIS WORK, BOTH FOR HIS SANITY AND TO CROSS TRAIN A NEW ATTORNEY IN THOSE AREAS OF THE LAW , AND I HOPE TO FILL THAT POSITION SOON. BACK TO THE CHART. NEXT OVER IS THE POSITION OF SENIOR COUNSEL, WHICH IS HELD BY MATTHEW CHERRY, AND REPORTING TO HIM IS SPECIAL COUNSEL MATT DIAMOND. MY GOAL IS FOR THEM TO HANDLE EXTERNAL MATTERS, INDUSTRY FOCUSED ISSUES, AND THEY WILL ALSO HELP ADVISE THE COMMISSION WHEN WE HAVE CONTESTED CASE HEARINGS COME UP, SIMILAR TO WHAT MARTIN DID. NEXT OVER IS OUR PUBLIC INFORMATION AND RECORDS MANAGEMENT TEAM HEADED BY MARY DOUGHERTY. DOING OPEN RECORDS IS AN INCREDIBLY IMPORTANT BUT UNDERAPPRECIATED ROLE, AND MARY AND HER TEAM ARE DOING A GREAT WORK AND DOING WORKING THROUGH SOME LEGACY ISSUES AND A BIG INCREASE IN THE NUMBER OF RECORDS REQUESTS THAT THIS AGENCY RECEIVES, AND WE ARE LUCKY TO HAVE THEM, AND FINALLY, TO YOUR FAR LEFT IS OUR TEAM OF ENFORCEMENT ATTORNEYS AND STAFF HEADED BY JOHN SUDBURY. IT IS BY FAR THE LARGEST GROUP WITHIN GENERAL COUNSEL, AND I HAVE NOT REALLY CHANGED THE STRUCTURE OR ROLE OF THAT GROUP BUT I WILL NOTE THAT WE RECENTLY HIRED THREE NEW ATTORNEYS TO THIS TEAM FILLING VACANCIES THAT EXISTED FOR TOO LONG. SO THE STAFF IS THAT STAFF IS FULL, THAT TEAM IS FULLY STAFFED NOW AND READY TO ROLL, AND THAT'S OUR NEW WORK CHART. SO I'M HAPPY TO ANSWER ANY QUESTIONS THAT ANYBODY HAS. COMMISSIONERS. ANY QUESTIONS FOR MR. JAMES? SORRY, MR. PERSON. SO THEREFORE, I'M TO UNDERSTAND THAT WE HAVE ONLY ONE VACANCY ON YOUR STAFF. YES, SIR, AND WE ACTUALLY STARTED INTERVIEWS FOR THAT ONE ALREADY. SO HOPEFULLY WE'LL FILL THAT ONE SOON. OKAY. ALL RIGHT, GC PERSON. THANK YOU FOR YOUR TIME, SIR. THANK YOU, SIR , AND OUR NEXT AGENDA ITEM IS REGULATORY AFFAIRS REORGANIZATION. CHIEF. GOOD MORNING. YOU HAVE THE ROLL. THANK YOU. GOOD MORNING, CHAIRMAN. THE FLOOR, YOU HAVE THE ROLL TOO. GOOD MORNING, CHAIRMAN AND COMMISSIONERS. FOR THE RECORD, I'M ANDREA MACEYRA, CHIEF OF REGULATORY AFFAIRS, AND I WILL BE TALKING ABOUT THE REORGANIZATION OF REGULATORY AFFAIRS. NEXT SLIDE. AS YOU REMEMBER, BACK IN SEPTEMBER 2022, WE HAD OUR INITIAL CHANGES WITH THE FORMATION OF THE REGULATORY AFFAIRS DIVISION. WE COMBINED OUR FIVE KEY CUSTOMER SERVICE ORIENTED DEPARTMENTS AND PLACED THEM UNDER ONE UMBRELLA. THE LICENSING DEPARTMENT, PRODUCT REGISTRATION, AUDIT AND INVESTIGATIONS, EXCISE TAX AND MARKETING PRACTICES. THESE CHANGES HELP TABC BETTER SERVE TEXANS TO BETTER ALIGN WITH OUR MISSION AND ALCOHOLIC BEVERAGE CODE AND TO IMPROVE COMMUNICATION TO BOTH INTERNAL AND EXTERNAL STAKEHOLDERS THROUGH ONE DIVISION. IN THE PAST 11 MONTHS, WE'VE MADE KEY CHANGES TO ENSURE WE ARE PROVIDING EXCEPTIONAL CUSTOMER SERVICE AND ENSURING LICENSE AND PERMIT HOLDERS ARE SUCCESSFUL WHILE OPERATING IN COMPLIANCE. WE HAD SEVERAL VACANCIES THAT WE HAVE FILLED OVER THE PAST FEW MONTHS, STARTING IN DECEMBER 2022. WE NAMED OUR NEW LICENSING DIRECTOR, JULIE ROSS. IN FEBRUARY 2023. WE NAMED TWO NEW DEPUTY DIRECTORS IN THE AUDIT DEPARTMENT, NICOLE PHILLIPS AND [INAUDIBLE]. PREVIOUSLY, WE ONLY HAD ONE DEPUTY DIRECTOR IN THE AUDIT AND INVESTIGATIONS AND OVER THE PAST FEW MONTHS EXPLORING WITH DIRECTOR JOSH ALEXANDER, WE DECIDED THAT TWO DEPUTY DIRECTORS TO DIVIDE THE WORKLOAD WAS NEEDED, AND LASTLY, IN MARCH OF 2023, WE NAMED OUR NEW DEPUTY DIRECTOR OF RESOURCE AND PLANNING FOR THE LICENSING DEPARTMENT, SARAH [INAUDIBLE]. ON THE SCREEN, YOU'LL SEE IS OUR REGULATORY AFFAIRS STRUCTURE THAT WAS THOUGHTFULLY DESIGNED TO IMPROVE COMMUNICATIONS AND TO BETTER SERVE TEXANS. IT CONSISTS OF AN EXCELLENT GROUP OF PEOPLE, AND I'M VERY FORTUNATE TO WORK WITH SUCH GREAT, HARDWORKING TEAM, AND THAT CONCLUDES MY PRESENTATION. THANK YOU VERY MUCH. DO YOU HAVE ANY QUESTIONS? I HAVE A QUICK QUESTION. JUST I WAITED FOR BOTH OF Y'ALL TO DO YOUR PRESENTATION JUST SO I COULD HAVE A BETTER UNDERSTANDING WITH THE REORGANIZATIONS OF THE GENERAL COUNSEL AND THE REGULATORY AFFAIRS. ARE WE IN A SITUATION WHERE WE'RE IN NET GAIN OF POSITIONS OR IS THIS STREAMLINING AND WE ACTUALLY HAVE LESS [00:40:06] EMPLOYEES? AND I CAN SPEAK FOR REGULATORY AFFAIRS. IT WAS STREAMLINING AND TAKING SOME POSITIONS AND REPURPOSING THEM. OKAY, AND THEN ON GENERAL COUNSEL, I BELIEVE WE ARE DOWN ONE FTE ROLE BECAUSE WE CONSOLIDATED SOME ROLES, BUT I CAN I CAN GET THAT INFORMATION DIRECTLY TO YOU. OKAY. SO IT'S JUST IT'S JUST ONE, AND THEN AND YOU'VE GOT ONE VACANCY, CORRECT? CORRECT. OKAY. THANK YOU, AND WOULD YOU MIND CLARIFYING JUST FOR ALL OF US THE. PRIMARY FUNCTION OF AUDIT AND INVESTIGATIONS, AND THERE ARE TO EDUCATE OUR COMMUNITIES AND STAKEHOLDERS. THEY CONDUCT AUDITS AND THEY GO OUT AND PERFORM THOSE AUDITS TO ENSURE PROPER TAXES PAID , AND THEN THEY DO THE COMPLIANCE PART TO MAKE SURE THAT THEY'RE OPERATING IN COMPLIANCE UNDER THE CODE. DO YOU FEEL YOU HAVE AN ADEQUATE NUMBER OF PERSONNEL TO I MEAN, OBVIOUSLY, WE ALWAYS WANT MORE PEOPLE, BUT HOW ARE YOU DOING? WE'RE DOING GOOD. WE DO HAVE SOME VACANCIES AND WE'RE TRYING TO FILL THOSE. IT'S JUST A COMPETITIVE JOB MARKET RIGHT NOW, BUT WE ARE CURRENTLY IN THE PROCESS OF EVALUATING HOW WE ARE STRUCTURED IN THE AUDIT DEPARTMENT AND THOSE RESOURCES. CHAIRMAN PART OF THAT TWO AND ONE HALF MILLION THAT WE GOT THIS YEAR DURING SESSION, SOME OF THAT'S FOR THE AUDIT STAFF TO BECAUSE WE WERE LOSING SOME OF THOSE FOLKS TO COMPETING AGENCIES. RIGHT I MEAN THAT IS ALWAYS AN ISSUE SO YES. THANK YOU. KEEP UP THE GOOD WORK. THANK YOU. I HAVE A COMMENT. FIRST, THANK YOU ALL FOR YOUR PRESENTATION. I APPRECIATE IT. I HAVE A GENERAL REMARK ABOUT LICENSING AND REGULATION HAS TO DO WITH OUR WITH OUR FEES, AND I WAS LOOKING AT SOME NUMBERS THE OTHER DAY AND SAW THAT WE COLLECTED ABOUT 35% MORE REVENUE FROM LICENSING PERMIT FEES THIS BIENNIUM THAN WE DID IN EITHER OF THE PAST TWO BIENNIUMS, AND WE STILL GOT TWO MONTHS OF BATTLE LEFT TO REPORT IN THIS BIENNIUM. LOOKS LIKE WE MIGHT END UP COLLECTING ABOUT 40% MORE WHEN IT'S ALL SAID AND DONE. MAYBE NOT QUITE 40%, BUT ANYWAY, PRETTY CLOSE TO 40% MORE WHEN IT'S ALL SAID AND DONE. OUR REVENUE TARGETS WERE TIED TO PAST REVENUES. SO WE'RE CHARGING PEOPLE A WHOLE LOT MORE FOR LICENSE OR PERMIT TO MAKE A LIVING THAN WE USED TO, AND, YOU KNOW, THAT DOESN'T HAVE ANYTHING TO DO WITH THE EXECUTIVE LEADERSHIP TEAM OR YOU, ANDREA. WE HAVE IN PLACE NOW YOU ALL ARE DOING A GREAT JOB. IT'S OUR FAULT AND I WANT TO HELP US FIX IT, AND SO OVER THE NEXT TWO YEARS, I HOPE COMMISSIONERS TRY TO COME UP WITH WAYS TO CUT FEES 20, 30, 40% AND LET THE PEOPLE TRYING TO MAKE A LIVING IN THIS STATE KEEP MORE OF THEIR OWN MONEY, AND I THINK IT'D BE GREAT IF WE COULD HAVE SOME AGENDA ITEMS IN THE COMING MONTHS. GET THE BALL ROLLING ON THAT. ANYWAY, GREAT JOB. THANK YOU ALL. JUST WANTED TO THROW IT OUT. THROW THAT OUT THERE FOR FOR FUTURE DISCUSSION. THANKS AGAIN, COMMISSIONER. I PROMISED YOU ABOUT LAST YEAR THAT WE'D BE WORKING THOSE NUMBERS UP AND GETTING THEM BACK TO YOU AND REPORTING ON THEM, AND WE'RE STILL WORKING ON THAT. WE WILL DO THAT AND WE CAN DEFINITELY HAVE THAT AS AN AGENDA ITEM TO DISCUSS HERE IN THE FUTURE. APPRECIATE IT, THOMAS. ABSOLUTELY. AS ALWAYS. THANKS, CHIEF. THANK YOU. NEXT AGENDA ITEM IS DATA GOVERNANCE PROGRAM. DEPUTY DIRECTOR BEARLEY. GOOD MORNING, CHAIRMAN. COMMISSIONERS. MY NAME IS CRYSTAL BEARLEY. I'M THE DEPUTY DIRECTOR OF THE STRATEGIC INITIATIVES AND PERFORMANCE IMPROVEMENT DIVISION. I'M HERE TO TALK ABOUT OUR NEW DATA GOVERNANCE PROGRAM. BACK IN JANUARY, WE GOT THE ASSIGNMENT TO ESTABLISH A CHARTER FOR STANDING UP THE DATA GOVERNANCE PROGRAM WITH THE CENTRALIZED GOAL TO PROMOTE A DATA CENTRIC APPROACH THAT ENSURES THAT OUR OPERATIONS ANALYTICS DECISION MAKING IS CLEARLY DEFINED, ACCURATE AND HIGH QUALITY AS WE USE OUR DATA AS AN ORGANIZATION. THIS STRATEGIC INITIATIVE WAS EMBRACED BY [INAUDIBLE] AS WELL AS THE ITD STAFF, THE INNOVATION AND TECHNOLOGY TEAM. WE TOOK THE PROJECT ONE STEP FURTHER ALONG WITH THE CHARTER. WE ESTABLISHED THE IMPLEMENTATION PLAN WHICH IS IN YOUR PACKET. IT'S A REPORT THAT WE'VE PROVIDED TO YOU. [00:45:03] DATA GOVERNANCE IS A REALLY LARGE TOPIC AND IF YOU START RESEARCHING IT, IT CAN QUICKLY BECOME OVERWHELMING AND IT CAN TAKE ON A DIFFERENT APPROACH DEPENDING ON YOUR BUSINESS INDUSTRY OR THE ENVIRONMENT AS WELL AS THE DATA THAT YOU ARE TRYING TO MANAGE AND SECURE. THIS DATA GOVERNANCE PROGRAM SEES DATA AS AN ASSET JUST AS WE WOULD OUR WORKFORCE, AND WE WANT TO BRING IT TO THE FOREFRONT OF THE ORGANIZATION. I DO WANT TO TAKE A MOMENT AND ON PAGE FOUR OF YOUR PACKET, THERE IS A PAGE OF INITIATIVES THAT THE AGENCY HAS IMPLEMENTED TO TAKE US FURTHER INTO THE DATA GOVERNANCE PROGRAM. WE WILL GROW FROM THESE INITIATIVES. SO WE'RE NOT STARTING FROM GROUND ZERO. NEXT SLIDE. THE FRAMEWORK. I WANT TO TALK A LITTLE BIT ABOUT THE FRAMEWORK AND HOW THIS PROGRAM HAS BEEN ESTABLISHED. WE PRIORITIZED COMPLIANCE AND ACCOUNTABILITY, AND SO WITHIN THE PACKET, THE LENGTHY DOCUMENT THAT IS THERE FOR YOU TO REVIEW. YOU WILL SEE THAT WE ARE ALIGNING WITH LAW, STATE LAW AND GUIDELINES. THE DEPARTMENT OF INFORMATION RESOURCES ASK US TO ABIDE BY. OUR FRAMEWORK ALSO PROMOTES THAT WE HAVE ADEQUATE CONTROLS IN PLACE TO BE COMPLIANT AND THAT WE ARE COORDINATED AND DELIBERATE AS WE PROTECT AND IMPROVE OUR DATA ASSETS, AND LASTLY, WE ARE VERY CONSCIENTIOUS AND THOUGHTFUL IN OUR APPROACH TO REMEDIES AND SOLUTIONS TO ADDRESSING WEAKNESSES AND RISKS THAT HAVE BEEN BROUGHT TO OUR ATTENTION FROM THE STATE AUDITOR'S OFFICE LAST YEAR, AS WELL AS OUR INTERNAL AUDIT ADVISORY REPORT. SO WITHIN THIS MODEL YOU WILL SEE THAT WE HAVE ESTABLISHED CLEAR ROLES AND RESPONSIBILITIES TO STAND UP THE MODEL AND THAT WE ARE FOCUSED ON ON RESOLVING THOSE WEAKNESSES BY COMPLIANCE AND ACCOUNTABILITY. THE NEXT SLIDE IS JUST A LITTLE BIT OF A BREAKDOWN FROM WHAT LAW TELLS US IN STANDING UP A DATA GOVERNANCE PROGRAM, WE ARE REQUIRED TO DESIGNATE A DATA MANAGEMENT OFFICER AND THE DATA MANAGEMENT OFFICER IS RESPONSIBLE FOR THESE BULLETS, SUCH AS COORDINATING WITH THE CHIEF DATA OFFICER AT DIR, AND IF YOU IF YOU GO THROUGH THE SLIDES, WE CAN CHECK WE HAVE CHECKED OFF SOME OF THESE ITEMS. SO WE HAVE A DATA MANAGEMENT OFFICER. WE ARE COORDINATING WITH THE CHIEF DATA OFFICER AT DIR. WE ARE STANDING UP THE DATA GOVERNANCE PROGRAM AS PRESENTED TO YOU TODAY. WHAT WE ARE PRIORITIZING ARE THE ITEMS THAT ARE NOT BULLETED, WHICH IS IDENTIFYING AND MANAGING OUR DATA ASSETS. WE NEED TO CLASSIFY OUR DATA TO DETERMINE APPROPRIATE SECURITY MEASURES. WE ARE DILIGENTLY WORKING ON STANDING UP STRONGER POLICIES AND PROCEDURES TO OVERSEE OUR DATA ASSETS. WE HAVE ALREADY POSTED OUR THREE HIGHEST VALUED ASSETS TO THE DIR PORTAL, WHICH IS REQUIRED. THE NEXT BULLET IS ALL THROUGHOUT THE PROGRAM WHERE WE ARE TAKING THE COORDINATED APPROACH OF HAVING OUR DATA MANAGEMENT OFFICER WORK WITH OUR INFORMATION SECURITY OFFICER, OUR RECORDS MANAGEMENT OFFICER ON OUR LEGAL TEAM, AND MAKING SURE THAT WE ARE COMPLYING WITH RECORDS MANAGEMENT WITH THE TEXAS STATE LIBRARY AND ARCHIVES COMMISSION, AND WE ARE TO CONDUCT A DATA MATURITY AND SECURITY ASSESSMENT EVERY OTHER NOVEMBER OF EVERY EVEN NUMBERED YEAR TO DIR. SO THIS IS WHAT LAW TELLS US WE HAVE TO HAVE IN OUR ELEMENTS. QUICK QUESTION. POST THREE HIGHEST VALUE DATA ASSETS, THE OPEN DATA PORTAL. CAN YOU EXPLAIN A LITTLE BIT MORE ABOUT WHAT WHAT THAT MEANS AND WHAT WAS DONE THERE? SIR, I WOULD GET BACK WITH YOU. I'M SO SORRY. I DON'T HAVE THAT INFORMATION. OKAY, COMMISSIONER, WE WOULD I WOULD DRAG OUR DIRECTOR OF IT UP HERE WHO'S WORKED WITH CRYSTAL REAL CLOSELY ON GETTING THIS SET UP, BUT THEY TODAY AT A CONFERENCE, LEARNING SOME THINGS HOPEFULLY TO HELP MORE WITH THIS BUT WE CAN GET THOSE QUESTIONS ANSWERED FOR YOU WHEN GEORGE GETS BACK. THANK YOU. OKAY. THE NEXT SLIDE IS OUR OBJECTIVES. [00:50:02] SO WHAT WE AIM TO ACCOMPLISH WITH OUR DATA GOVERNANCE PROGRAM AND IT'S BREAKING DOWN OUR SILOS WHERE WE WILL HAVE A CENTRALIZED DECISION MAKING STRUCTURE. AGAIN, TALKING ABOUT THE ROLES AND RESPONSIBILITIES WE HAVE TO FOCUS ON EFFICIENCIES AND REDUCING REDUNDANCIES. WE'LL TALK A LITTLE BIT MORE ABOUT IMPLEMENTATION IN A FEW SLIDES. UNDERSTANDING OUR DATA STORAGE AND SYSTEMS, PROMOTING EFFICIENCY, INTEGRITY AND QUALITY. FOSTERING ACCOUNTABILITY. ONCE WE ESTABLISH ALL OF OUR POLICIES AND PROCEDURES THAT WE'RE WORKING ON, THAT WE HAVE ADEQUATE PRIVACY AND SECURITY PROTECTIONS IN PLACE TO ENSURE TRUST WITH OUR INDUSTRY, BUT ALSO OUR TABC STAFF, AND WE RECOGNIZE THAT WE ARE GOING TO HAVE TO INVEST IN RESOURCES, THAT THE RISKS EVOLVE, EXPOSURES CHANGE AS WITHIN TECHNOLOGY AND DATA AND EVEN PERSONNEL. IT'S AN EVER CHANGING ENVIRONMENT. THE NEXT SLIDE ARE KEY ELEMENTS TO SUPPORT THIS PARADIGM SHIFT AND SO IT'S BEEN A WONDERFUL LEARNING EXPERIENCE FOR ME, AND IN STUDYING THE DATA GOVERNANCE PROGRAM AND DATA MANAGEMENT AND THE PARADIGM SHIFT IS REALLY WHERE THE DATA OWNERSHIP, THE DATA IS OWNED BY OUR BUSINESS PROGRAM DIVISIONS, THAT IT'S OUR INFORMATION AND THAT WE ARE SUPPORTED BY THE TECHNOLOGY. SO PARADIGM SHIFT IS A BIG WORD. WHERE WAS IT PRIOR? I BELIEVE THAT YOU COULD SAY THAT WE LOOK TO OUR ITD STAFF FOR DATA MANAGEMENT FOR THE INFORMATION AND TECHNOLOGY, AND SO THIS HELPS US RECOGNIZE THAT THE DATA INTEGRITY THAT WHY DO WE WANT THE DATA? WHO ARE WE REPORTING IT TO? WHAT IS IT TELLING US IS IS A BUSINESS FUNCTION OF TABC? SO COMMISSIONER ATKINS, WHAT IS INDUSTRY STANDARD IN THAT REGARD? YOU KNOW, I'M NOT SURE, AND SO THAT'S WHY I DO WANT A LITTLE BIT MORE INFORMATION ON THIS SO THAT I CAN JUST UNDERSTAND BECAUSE IT IS DIFFERENT FOR GOVERNMENT VERSUS PRIVATE INDUSTRY VERSUS FINANCIAL INSTITUTIONS VERSUS HIPAA COMPLIANCE VERSUS PCI COMPLIANCE. THERE'S ALL SORTS OF DIFFERENT REGULATIONS THAT ARE OUT THERE, AND SO I'D LOVE TO LEARN A LITTLE BIT MORE ABOUT THIS SO THAT I CAN UNDERSTAND IT BETTER AND PROVIDE ANY INSIGHT THAT I MAY BE ABLE TO. EXCELLENT. SO I THINK IF OUR MY FRIENDS AND ITD WERE HERE, THEY WOULD TELL YOU THAT THE QUALITY OF THE DATA, WHY WE USE THE DATA, THE PURPOSE FOR THE STORY THAT WE'RE TRYING TO TELL WOULDN'T BE THEIR SUBJECT MATTER EXPERTISE. THEIR SUBJECT MATTER EXPERTISE WOULD BE ONCE IT'S CLASSIFIED AND LIKE HE'S SUGGESTING, HIPAA OR PI/PII AND ET CETERA, THAT WE LOOK TO OUR SECURITY OFFICER TO PROTECT THE DATA. ONCE THE BUSINESS OWNERS CLASSIFY IT CORRECTLY THAT SO THAT'S THAT IS REALLY, AS I'M READING THE LITERATURE AND AS I'M LEARNING MORE ABOUT DATA GOVERNANCE, THAT SOMETIMES A THREAT OR A CONSTRAINT, IF YOU PUT THIS INTO AN IT SHOP, IT BECOMES A SHADOW PROJECT AND NOT NECESSARILY AND YOU COULD IMAGINE HERE WITH THE PRESSING PRIORITIES, IT WOULD BE A STRETCH FOR, I THINK, IT TO STAND THIS UP TODAY. SO IS THIS SECURITY OFFICER BASICALLY OUR INTERNAL CYBER EXPERT? THAT'S CORRECT, SIR. YES. YEAH, WE HAVE IT'S A VACANT POSITION TODAY, BUT WE DO HAVE AN INFORMATION SECURITY OFFICER POSITION. IT WAS PREVIOUSLY HELD BY GEORGE. YES. OUR IT DIRECTOR. OKAY. WELL, I DON'T HAVE TO SAY THAT WE HAVE ACCESS TO A LOT OF SENSITIVE INFORMATION WHICH PEOPLE WOULD LOVE TO HACK INTO, AND SO THAT SHOULD BE A MAJOR PRIORITY FOR US TO FIND THIS INDIVIDUAL AS SOON AS POSSIBLE. I DON'T WANT TO SUGGEST THAT OUR DATA IS NOT SECURE. I'M NOT SAYING THAT IT IS EITHER. I'M JUST SAYING MORE OVERSIGHT. BETTER THAN LESS. YES, ABSOLUTELY. YES. YES. IF I COULD FOLLOW UP ON THAT, AND AGAIN, I'M JUST TRYING TO UNDERSTAND THIS [INAUDIBLE] A LITTLE BIT BETTER, BUT I WOULD ASSUME THAT THIS IS YES, IT'S CYBERSECURITY, BUT THE FOCUS IS BACK ON THE DATA. THEY'RE STILL GOING TO BE CYBERSECURITY FUNCTIONS THAT FALL WITHIN IT BECAUSE IT I THINK CYBERSECURITY GOES BEYOND [00:55:06] WHAT WE'RE JUST TALKING ABOUT RIGHT HERE. SO WOULDN'T THERE BE SOME OVERLAP? YES. THANK YOU, SIR. SO OUR INFORMATION. SO THAT'S REALLY WHERE FROM A HOLISTIC PERSPECTIVE AND THE STRATEGIC INITIATIVE, IF YOU WILL, WAS ASSIGNED TO [INAUDIBLE] TO STAND UP THE DATA GOVERNANCE PROGRAM, BUT THE DATA MANAGEMENT OFFICER THAT IS RESPONSIBLE FOR A LOT OF THE PRIMARY ROLES, INCLUDING COORDINATING WITH THE INFORMATION SECURITY OFFICER AND OUR RECORDS MANAGEMENT OFFICER IS ACTUALLY HOUSED IN ITD. SO OUR DATA MANAGEMENT OFFICER THERE, WE HAVE AN ORGANIZATION, A TEAM OF DATA SERVICES SUPPORT , BUT YOU, YOU HEAR THE SUPPORT ROLE WHEN THEY'RE REALLY SUPPORTING THE DIVISIONS, OUR CHIEFS AND OUR DIVISION DIRECTORS IN THE DATA THAT THEY NEED SO THAT DMO DOES RESIDE IN ITD AS WELL AS OUR FUTURE HIRE OUR INFORMATION SECURITY OFFICER. SO THOSE FUNCTIONS YOU'RE ABSOLUTELY CORRECT, COMMISSIONER, THOSE DO RESIDE IN IT. OKAY. THANKS. ALL RIGHT. YOU ASKED EARLIER YOU HAD A COUPLE OF QUESTIONS ABOUT A PARADIGM SHIFT, AND I THINK ONE WAY I'LL SIMPLIFY IT, BUT ONE OF THE THINGS THAT I SEE HERE FOR US IS THAT AS AN AGENCY HISTORICALLY AND THIS I THINK IS PART OF AS A WHOLE OF THE INFORMATION TECHNOLOGY TRANSITION THAT WAS STARTED SIX YEARS OR FOUR YEARS AGO AND THIS TIES INTO THAT, BUT THE AGENCY LOOKED AT THE DATA THAT MAYBE OUR LICENSING STAFF ENTERED INTO THE SYSTEM, THE DATA THAT WE STORED FOR CASES AND THE DATA THAT WE EVEN HAVE WITH OUR OWN EMPLOYEES AS BEING A FUNCTION OF IT. SO ONCE IT WAS ENTERED INTO THE COMPUTER SYSTEM, IT WAS ITS JOB TO FIGURE OUT HOW TO CLASSIFY IT. IT WAS IT'S JOB TO FIGURE OUT WHAT KIND OF PROTECTIONS IT NEEDED AND WHO HAD AUTHORITY TO LOOK AT THOSE FILES OR SHARE THOSE FILES OR WHATEVER IT MAY BE. WE'RE REQUIRED TO PUT THIS PROGRAM TOGETHER, AND CRYSTAL'S FOLKS HAVE DONE A GREAT JOB BUILDING OUT THE POLICIES FOR IT BECAUSE AND IT'S A HUGE LIFT SEEING EVERYTHING. ONCE THEY STARTED DIGGING THROUGH IT AND ONCE THE AGENCY AS A WHOLE STARTED MEETING ABOUT IT, YOU'VE GOT TO HAVE THESE POLICIES IN PLACE TO ENSURE THAT WE'RE DOING WHAT WE NEED TO BE DOING AND THAT STAFF KNOWS THEY'RE RESPONSIBLE FOR CERTAIN PIECES OF THE DATA AND HOW WHETHER THE DATA IS CLEAN, WHETHER WHO IS SUPPOSED TO BE SHARED BY, BUT WE'RE IT'S SHIFTING RESPONSIBILITY MORE APPROPRIATELY. SO THE SUBJECT MATTER EXPERT FOR THE LICENSING DATA IS GOING TO KNOW WHAT PIECES OF THAT NEED TO BE SHARED, WHO IT CAN BE SHARED WITH, ETCETERA. THEY COORDINATE WITH IT. IT REALLY PULLS IN ALL THOSE PARTIES TOGETHER AND IT'S A REQUIREMENT THAT HELPS MAKE SURE DOWN THE ROAD WE ARE A LOT MORE SECURE WITH WHAT WE HAVE AND THAT OUR STAFF FULLY UNDERSTANDS WHAT THEIR ROLE IS IN MAINTAINING THE DATA AND MAINTAINING CLEAN DATA. COULD I SUGGEST THAT OUR NEXT COMMISSION MEETING HAVE AN ORG CHART OF BOTH YOUR DIVISION? IT SIMILAR TO WHAT WE'VE DONE WITH THE GC'S DIVISION. ET CETERA. WE DO THAT. WE'LL PULL YOU AN ORG CHART TOGETHER, AND I KNOW THAT YOU ALL HAVE SOME AND SOME OF THE STUFF YOU'VE DONE THAT SHOWS EACH DEPARTMENT'S REALLY PIECE OF THIS ROLE AND WHAT THEY'RE DOING. THAT'D BE GREAT. DOES THAT WORK FOR YOU? COMMISSIONER ATKINS? IT DOES, AND BACK TO YOUR QUESTION EARLIER, CHAIRMAN, ABOUT BEST PRACTICE. WHAT I'M SEEING IS EXACTLY THAT PARADIGM SHIFT THAT DIRECTOR GRAHAM WAS DESCRIBING, AND NOW THAT I'M UNDERSTANDING A LITTLE BIT BETTER HOW WE'RE ORGANIZING THIS, IT'S NOT JUST A FUNCTION OF IT ANYMORE, ALTHOUGH IT LIVES AND IS PART OF IT, BUT IT'S ACTUALLY SEGMENTING OUT AND RECOGNIZING THAT THIS IS A GIANT. IT'S SOMETHING THAT HAS TO BE ADDRESSED AND HAS TO BE MANAGED AT A VERY HIGH LEVEL, AND SO I BELIEVE THAT WE ARE DOING THAT AND WE'RE GOING DOWN THE BEST PRACTICE ROUTE. OKAY. IF YOU WOULD LOVE TO SEE THAT ORG CHART AS CHAIRMAN LILLY SAID AND UNDERSTAND THIS A LITTLE BIT BETTER. EXCELLENT. AS WE GET TO SOME OF THE SLIDES, THE VISUALS, THOSE WILL HELP, I THINK, SEE HOW WE'RE STANDING UP THE PROGRAM, AND THEN ALSO ON PAGE 11 OF THE PACKET THAT I THAT WE PROVIDED TO YOU BREAKS DOWN OUR DATA GOVERNANCE COUNCIL MEMBERS AND YOU CAN SEE THAT THERE'S COUNCIL MEMBERS THAT REPRESENT EVERY DIVISION IN OUR ORGANIZATION AND THEN WE HAVE IDENTIFIED WHO OUR DATA OWNERS ARE OUR RESPONSIBLE PARTIES IN OUR ORGANIZATION, WHO OWNS OUR DATA. [01:00:01] THERE ARE 16 MEMBERS THAT ARE DESCRIBED IN THE DOCUMENT, AND THEN WE'LL SUPPLEMENT THAT WITH AN ORGANIZATIONAL CHART TO. YES, AND PARADIGM SHIFT IS A LARGE WORD. IT'S A LARGE TERM, AND WHERE WE'RE HEADED IS A BIG ENDEAVOR, AND RECOGNIZING EVEN THAT THE QUALITY OF OUR DATA IS EVERYONE'S RESPONSIBILITY, REGARDLESS OF WHO PUTS IT IN THE SYSTEM OR WHERE THAT DATA MIGRATES FROM, AND SO IF YOU ARE RUNNING A REPORT AND YOU KNOW THAT INFORMATION CANNOT BE RIGHT, YOU HAVE TO GO UPSTREAM AND SEE, WELL, WHERE IS THAT INFORMATION COMING FROM? WHO'S RESPONSIBLE FOR IT, AND WORK COLLABORATIVELY WITH THAT AREA? BECAUSE IF YOUR DATA IS INCORRECT, THEN, YOU KNOW, WHEREVER THAT INFORMATION IS FEEDING TO IS ALSO INCORRECT. SO REALLY BEING MINDFUL, AND ANOTHER IS I MAY HAVE SKIPPED IT OVER THE SLIDE BEFORE, BUT BEING HOLISTIC AND AS WE'RE MAKING DECISIONS ABOUT OUR DATA, DOING IT IN A FORUM WITH WITH ALL PARTIES THAT COULD BE AFFECTED OR IMPACTED AT THE TABLE , AND WHEN I SAY CHANGES, IT COULD MEAN YOU'RE NAMING SOMETHING DIFFERENT OR YOU WANT TO PULL SOMETHING IN DIFFERENTLY THAN YOU DID BEFORE, AND THAT'S NOT YOUR DATA. YOU ONLY WANT TO SEE IT OR DISPLAY IT, AND SO IF YOU'RE MAKING CHANGES, YOU COULD BE INADVERTENTLY AFFECTING SOMEONE ELSE'S INFORMATION. SO NOT THAT THE DECISION WOULDN'T STILL BE THE SAME OR THAT IT'S NOT A RIGHT DECISION. IT'S JUST WE'RE ASSESSING THOSE RISKS TOGETHER AND WE'RE WE'RE ESTABLISHING TOLERANCE. SO THAT'STHAT'S WHAT THE GOVERNANCE STRUCTURE REALLY DOES. OKAY. SO THE NEXT PARADIGM SHIFT IS THAT THIS IS A PROGRAM THAT WE'RE STANDING UP A DATA GOVERNANCE PROGRAM. THIS IS NOT A PROJECT. THIS DOESN'T HAVE AN END DATE ONCE IT'S IMPLEMENTED THAT WE'RE OFF AND WE DON'T LOOK AT IT AGAIN, THIS IS ONGOING AND WILL MATURE AND CHANGE OVER TIME AND THE LAST BULLET IS REALLY THAT IT INCORPORATES BUSINESS PEOPLE, TECHNOLOGY AND PROCESSES ALL TOGETHER. OKAY. SO THE NEXT SLIDE. THIS IS WHAT WE'VE TRIED TO DO IS CREATE SO SYNTHESIZE A LOT OF INFORMATION AND PRESENT TO YOU THE DATA GOVERNANCE MODEL BY DESIGN FOR TABC, AND SO YOU SEE, THE GOVERNANCE IS ACCOUNTABLE. IT SETS AT THE TOP. IT'S THE OVERSIGHT STRUCTURE OF BIG DECISIONS, BIG STRATEGIES, OVERSIGHT ON THE REQUIREMENTS OF THE DATA OWNERS , AND AS YOU SEE IN THE TO THE LEFT, WHERE THE ARROWS, THE DIRECTION COMES DOWN FROM THE GOVERNANCE, THE PRIORITIES AND THE RISKS OFTENTIMES ARE IDENTIFIED AS AN ORGANIZATION AND THAT DIRECTION COMES DOWN. THE BUSINESS PROCESS, THE BLUE TIER IS COMMISSIONER ATKINS, WHERE WE'RE REALLY TALKING ABOUT THE DATA OWNER. THESE INDIVIDUALS ARE OUR CHIEFS, OUR DIVISION DIRECTORS, AND THEY ARE THE DECISION MAKERS OVER THEIR OWN DATA AND THEIR OWN DOMAIN. THEY ARE THE ONES RESPONSIBLE FOR CLASSIFYING THE DATA CORRECTLY. THEY ARE THE REASON WHY WE HAVE THE DATA OR NEED THE DATA AND THEN THE INFORMATION SYSTEMS. THE MORE OF OUR IT EXPERTS ARE THE DATA ADMINISTRATORS, THEY'RE OUR CUSTODIAN. THIS IS HOW WE GET THE INFORMATION. I THINK OF IT AS THE FREEWAY. THE FREEWAY OF GETTING OUR INFORMATION. IT'S WHERE OUR DATA RESIDES. IT'S OUR TECHNICAL CONTROL OVER OUR DATA ASSET AND THE STRUCTURE OF OUR TECHNOLOGY. SO THAT KIND OF, I HOPE, HELPS AS WE EMBRACE THIS IDEA. THE NEXT SLIDE IS HOW WE ARE PUTTING OUR MODEL INTO PLAY, AND SO OUR DATA GOVERNANCE COUNCIL IT'S THE EIGHT MEMBERS OF OUR EXECUTIVE BODY REPRESENT THE COUNCIL AND THEY WILL MEET ON A QUARTERLY BASIS. SO WE ARE LITERALLY TODAY WORKING ON A READINESS ASSESSMENT. WE HAVE RISKS. WE ARE TAKING A RISK BASED APPROACH TO WHAT WE'RE WORKING ON. THE DATA OWNER COMMITTEE, THE 16 MEMBERS OF THE DATA OWNERS ARE SUBJECT MATTER EXPERTS OVER OUR DATA WILL MEET ON A MONTHLY BASIS IS WHAT WE'RE [01:05:03] SUGGESTING, AND THEN THE PROJECTS THAT WILL BE WORKED ON THROUGH THE ACCOUNTABILITY STRUCTURE. AGAIN, YOU SEE THE POLICIES AND PROCEDURES, THE ARCHITECTURE AND MODELING, OUR MASTER DATA HANDLING AND SECURITY RECORDS MANAGEMENT. THOSE INDIVIDUALS ARE SUBJECT MATTER EXPERTS WITHIN THE ORGANIZATION. THEY WILL INFORM OUR DATA OWNERS AND THEY WILL ULTIMATELY INFORM OUR DATA COUNCIL ON ON OUR MATURITY AND HEALTH OF OUR DATA. SO WE THINK THAT THESE INDIVIDUALS AND WORKGROUPS WILL MEET ON A FREQUENT BASIS PROBABLY MORE OFTEN THAN MONTHLY. SO THE AGENCY WE HAVE MET WITH OUR DATA COUNCIL, THE CHARTER AND IMPLEMENTATION PLAN WAS APPROVED. WE WERE AUTHORIZED TO PROCEED. WE MET WITH THE COUNCIL IN JUNE OF THIS YEAR AND JUST IN JULY, THE END OF JULY, WE MET WITH OUR DATA OWNERS. SO WE ARE ALL, AS AN ORGANIZATION, EMBRACING, EMBRACING THIS, THIS STRUCTURE, THIS APPROACH AND THIS PROGRAM. SO IT'S FAIRLY HOT OFF THE PRESS. THE LAST SLIDE I WANT TO TALK ABOUT IS IMPLEMENTATION. SO WE ARE, I WOULD SUGGEST, ALREADY IMPLEMENTING WE ARE ALREADY IMPLEMENTING THE PROGRAM, BUT WE HAVE TO ACKNOWLEDGE OUR CONSTRAINTS, AND SO THAT'S WHERE, YOU KNOW, THOSE OF US ON THE COUNCIL AND THOSE OF US WHO SUPPORT THE COUNCIL HAVE TO BE VERY MINDFUL THAT WE ARE ADDRESSING RISKS METHODICALLY AND THAT WE ARE WORKING ON A LOGIC MODEL THAT WHAT WE WORK ON FIRST WILL END UP FEEDING, YOU KNOW, AND ADDRESSING THE WEAKNESSES THAT WILL COME NEXT. SO WE HAVE TO BE ON HOW WE TAKE ON THE APPROACH. AGAIN, I JUST MENTIONED WE'RE WORKING ON A READINESS ASSESSMENT AND THE YOU KNOW, WE HAVE TO INFORM JUST AS YOU GUYS HAVE A LOT OF QUESTIONS AS WELL, WE ARE EDUCATING AND INFORMING OUR AGENCY ON THEIR ROLES AND RESPONSIBILITIES AND WHAT THAT LOOKS LIKE AND IT IS OVERWHELMING, YOU KNOW, WHEN WE ALREADY HAVE A FULL JOB AND THEN WE'RE ASKING YOU TO ROLL UP YOUR SLEEVES AND DISSECT AND CLASSIFY YOUR DATA, IT CAN BE VERY OVERWHELMING, AND OUR DATA MANAGEMENT OFFICER HAS A VERY THOUGHTFUL APPROACH AND HAS ALREADY STARTED MINING AND HE HAS THE ARCHITECTURE BEHIND THE SCENES TO MAKE THIS AS AS EASY, AS SIMPLE AS POSSIBLE, AND AGAIN, WHERE WE HAVE TO REPORT OUR EFFICIENCY OR OUR ASSESSMENT TO DIR. WE KNOW THAT THIS WILL ALSO INFORM US AS AN ORGANIZATION. SO CAPTURING BASELINE INFORMATION TODAY ON HOW MATURE WE ARE AS A DATA ORIENTED, A DATA CENTRIC ORGANIZATION, POLLING AND SURVEYING US AND SEEING US GROW OVER TIME SO WE CAN NOT ONLY REPORT IT BECAUSE WE HAVE TO, BUT REPORT IT BECAUSE IT'S INFORMATION YOU MAY LIKE TO KNOW, BUT DEFINITELY OUR ORGANIZATION. SO ARE THERE ANY QUESTIONS? ANY MORE QUESTIONS? COMMISSIONERS, DO YOU HAVE ANY QUESTIONS? THANK YOU. I KNOW IT'S A BIG LIFT, AND COMMISSIONER MARINO THOUGHT THIS IS WONDERFUL INFORMATION , AND IT'S SO FORWARD THINKING, EVEN THOUGH WE MIGHT BE A LITTLE BIT BEHIND THE EIGHT BALL, BUT SHIFTING THE PARADIGM AND THE THOUGHT AND PUTTING THE RESOURCES BEHIND THIS BECAUSE IT IS SO INCREDIBLY IMPORTANT FOR OUR AGENCY TO REALLY BE ON THE FOREFRONT OF DATA INTEGRITY AND ALL OF THAT. COMMISSIONER ATKINS, I WAS WONDERING IF WITH THIS NEW STRUCTURE, WITH THE DATA GOVERNANCE STRUCTURE I WOULD THINK WOULD IT WOULD BE GOOD FOR YOUR COMMITTEE TO BE ABLE TO HEAR FROM THEM ON THAT QUARTERLY OR MONTHLY TO REPORT. SO YOU KNOW WHAT'S GOING ON AND YOU CAN BE LOOPED IN BECAUSE LIKE YOU, I'M SURE WE'RE HEARING KIND OF THIS FOR THE FIRST TIME, BUT POSSIBLY HAVING A LITTLE BIT MORE COMMUNICATION FROM STAFF UP TO YOUR COMMITTEE WOULD BE WOULD BE HELPFUL. WHAT ARE YOUR THOUGHTS? SURE THINK THIS COULD BE CONSIDERED A MAJOR IT PROJECT, GIVEN THAT IT'S PART OF IT. SO I THINK WE CAN ADD THIS TO OUR NEXT COMMITTEE AGENDA. NOT TO GIVE YOU MORE WORK. I'M NOT ADVOCATING FOR THAT. JUST MORE [INAUDIBLE]. NO, IT MAKE SENSE. [01:10:02] THIS IS INCREDIBLY IMPORTANT, AND SO WE DEFINITELY LOOK AT ADDING THAT TO OUR NEXT MEETING. GREAT. THANK YOU VERY MUCH FOR YOUR TIME. THANK YOU. OUR NEXT AGENDA ITEM IS PUBLIC COMMENT. [4. Public Comment] WE HAVE ONE. EDGAR [INAUDIBLE]. THANK YOU. MORNING. GOOD MORNING. FAMILIAR CONFINES FOR YOU? WELL, I JUST HAVE A COMMENT ON TWO TOPICS. VICTOR KUYKENDOLL'S RETIREMENT, AS WELL AS THE DE-ESCALATION TRAINING. FIRST OF ALL, I WANT TO THANK VICTOR FOR SERVICE TO THE AGENCY AS WELL AS TO THE COUNTRY. I'VE KNOWN HIM FOR OVER EIGHT YEARS. WE WORKED TOGETHER FOR TWO YEARS WHEN HE WAS A MAJOR IN REGION TWO AND IT'S BEEN A WONDERFUL PRIVILEGE AND PLEASURE WORKING WITH HIM. VICTOR WAS A TIRELESS ADVOCATE OF THE AGENCY, ESPECIALLY WHEN IT CAME TO MATTERS DEALING WITH PUBLIC SAFETY, BUT BENEATH HIS TOUGH VENEER, HE'S ALSO VERY FAIR AND REASONABLE AND KIND MAN. I ALSO WANT TO THANK HIM PERSONALLY. I WOULD HAVE BEEN IN THE CAREER OF BEING IN THE LIQUOR LAW INDUSTRY IF IT WASN'T VICTOR AND A COUPLE OF OTHER FOLKS. VICTOR WAS ON THE HIRING PANEL. THAT GOT ME A START AT THE AGENCY, AND FOR THAT I'LL BE GRATEFUL. I WAS JUST A REGULAR GUY COMING FROM SMALL COUNTRY POLAND. I KNEW SOME LAW, BUT I DIDN'T KNOW ANYBODY, AND HE AND FELLOW PANEL MEMBERS HIRED ME BASED ON WHAT I KNOW AND NOT WHO I KNOW. SO THAT'S VERY IMPORTANT FOR ME AS AN IMMIGRANT. I WANT TO SHIFT GEARS REAL QUICK AND TALK ABOUT THE DE-ESCALATION TRAINING WE'VE HAD. OUR FIRM ATTENDED THE TRAINING AND WE ALSO HAD MANY CLIENTS THAT WERE THERE. THE FEEDBACK FROM THAT WAS VERY, VERY POSITIVE. WE'RE HOPING THAT THE COMMISSION WOULD CONSIDER. EXPANDING THAT TRAINING TO OTHER AREAS IN THE STATE, PARTNERING WITH OTHER GROUPS AND AGENCIES AND MAYBE EVEN OFFERING IT ONLINE. HAVING CONVERSATIONS WITH MANY DIFFERENT BUSINESS OWNERS. NOT ALL OF THEM ARE HIP AND SOPHISTICATED AS TO HOW BEST TO DE-ESCALATE A SITUATION. WHAT MAY SEEM LIKE COMMON SENSE TO YOU AND I IS NOT COMMON SENSE TO AN AGENT AND SO, AGAIN, IT WAS VERY, VERY HELPFUL, IF POSSIBLE, MAYBE EVEN OFFER THAT AS AN ONLINE TRAINING AT SOME POINT. I'D ALSO ENCOURAGE THE COMMISSION TO CONSIDER INCENTIVIZING ATTENDING THESE TYPE OF TRAININGS, WHETHER IT IS THROUGH SAFE HARBOR TYPE ACTIVITY, DEVELOPING SOME RULES FOR THAT, OR MAYBE THE EQUIVALENT OF AN ACCIDENT, FORGIVENESS OR VIOLATION FORGIVENESS DEPENDING ON THE SEVERITY OF THE INCIDENT AND WHATNOT. SO THAT'S ALL I HAVE TO SAY. THANK YOU VERY MUCH FOR YOUR TIME. THANK YOU. DE-ESCALATION IS PROBABLY SOMETHING THAT EVERYONE IN THIS COUNTRY NEEDS TO THINK ABOUT. CERTAINLY IN MY FAMILY, BUT SO THANK YOU, SIR. APPRECIATE YOUR COMMENTS. ALL RIGHT. THE NEXT ITEM IS EXECUTIVE SESSION. [5. Executive Session] THE COMMISSION WILL NOW GO INTO EXECUTIVE SESSION UNDER GOVERNMENT CODE 551.074, 071 AND 089. REGULAR OPEN SESSION. THE TABC WILL BE IN RECESS. TIME IS NOW 12:06. ALL RIGHT. NEXT, OUR AUDIENCE IS DEPLETED. NEXT IS THE RETURN TO SESSION. THE TABC HAS LEFT EXECUTIVE SESSION AND WILL NOW RETURN TO OPEN SESSION. THE TIME IS 12:19. NEXT IS THE ANNOUNCEMENT OF THE NEW MEETING DATE. [6. Closing Items] NEXT SCHEDULED COMMISSION MEETING DATE IS PLANNED FOR TUESDAY, SEPTEMBER 26TH, 2023. COMMISSIONERS, IF YOU WOULD TAKE A MOMENT TO CHECK YOUR CALENDAR AND SEE IF YOU HAVE A PROBLEM WITH THAT DATE. GOOD. MR. BOATRIGHT. [INAUDIBLE] COMMISSIONER MARINO. COMMISSIONER MACK. GOOD HERE. THANK YOU. ME AS WELL. ALL RIGHT. COMMISSIONER IS SCHEDULED TO MEET ON TUESDAY, SEPTEMBER 26TH, WHERE IT WILL BE A WHOLE LOT COOLER THAN IT IS NOW. WE CERTAINLY ARE. NEXT IS ADJOURNMENT. [01:15:02] THE TIME IS NOW, 12:20 P.M, AND WE ARE ADJOURNED. THANK YOU ALL FOR YOUR TIME. * This transcript was compiled from uncorrected Closed Captioning.