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[1. Opening Items]
THE FIRST AGENDA ITEM IS THE CALL TO ORDER.ON TUESDAY, SEPTEMBER 26TH, 2023.
WE HAVE A QUORUM. A COUPLE OF THINGS.
ONE IS UNFORTUNATELY TOPICAL, ONE IS JUST KIND OF HUMOROUSLY TOPICAL, AND I WANTED TO THANK EVERYONE IN THIS AGENCY FOR THE PROFESSIONALISM WITH WHICH THEY CONDUCT THEIR BUSINESS AND I KNOW IT'S SOMETHING THAT I SHOULD PROBABLY SAY EVERY SINGLE MEETING, AND I HOPE THAT I DO, BUT I THINK THAT THE PROFESSIONALISM IS NOT JUST THE WAY WE CONDUCT BUSINESS, HOW WE CONDUCT BUSINESS AND OUR APPEARANCE AND CONDUCTING BUSINESS.
I REMEMBER SPEAKING WITH ONE OF OUR ENFORCEMENT MAJORS WHO SAID WHENEVER HE SHOWS UP AT A CRIME SCENE, HE ALWAYS HAS A COAT AND TIE ON, AND I SAID, WHY DO YOU? WHY? AND HE SAID, BECAUSE IT CONVEYS A SENSE OF PROFESSIONALISM AND IT ALSO A SERIOUSNESS AND POSITION OF AUTHORITY, AND SO I THINK ABOUT THAT, AND OF COURSE MY MOM USED TO ALWAYS SAY, YOU HAVE ONE OPPORTUNITY TO MAKE A FIRST IMPRESSION, WHICH SOUNDS LIKE A CAPTAIN OBVIOUS STATEMENT, BUT THERE'S MORE TO IT THAN THAT, AND I THINK THAT WHEN WE MEET WITH ELECTED OFFICIALS, WHEN WE MEET WITH APPOINTED OFFICIALS, STAFFERS, MEMBERS OF INDUSTRY, I THINK IT'S NOT JUST THAT IT MAKES YOU DO YOUR JOB BETTER.
I DON'T KNOW IF IT HAS ANY IMPACT.
I THINK IT'S ALSO A SIGN OF RESPECT.
IT'S NOT THAT I JUST ROLLED OUT OF BED OR I JUST PULLED OFF THE GOLF COURSE.
THERE'S BEEN A LOT OF RIDICULOUS TALK ABOUT DRESS CODES, ESPECIALLY IN WASHINGTON, AND I THINK WHEN WE WHEN WE ENTER THE CAPITOL, WE SHOULD DO SO WITH A SENSE OF REVERENCE.
IT'S A SPECIAL PLACE, AND THE PEOPLE OF TEXAS HAVE ELECTED THOSE INDIVIDUALS, AND THAT'S WHO WE WORK FOR.
SO I THINK THAT IT'S JUST I'M GRATEFUL FOR ALL OF YOU AND THE PROFESSIONALISM WITH WHICH YOU CONDUCT YOUR BUSINESS, AND IF SENATORS WANT TO WEAR HOODIES TO THE SENATE FLOOR, I GUESS THAT'S THEIR BUSINESS.
I ALSO WANT TO TALK ABOUT SOMETHING MORE SERIOUS, AND IT I HAD THE THE OPPORTUNITY TO SERVE ON A PANEL DISCUSSION WITH THE GOVERNOR LAST YEAR ON FENTANYL.
IT WAS WHEN HE LAUNCHED THE ONE PILL KILL CAMPAIGN, AND THIS IS FENTANYL POISONING AWARENESS MONTH, AND IT WAS SUCH A TOUGH IT WAS SUCH A TOUGH TIME.
I SAT THERE AND THERE WERE PROBABLY 200 PARENTS CLUTCHING PHOTOS OF THEIR CHILDREN THAT THEY'D LOST TO FENTANYL AND WHEN YOU SEE THAT AND YOU TALK TO THEM, IT'S SO OVERWHELMING.
IT'S SO TRAGIC AND SO I WANT YOU TO BE AWARE OF THAT.
THAT'S SOMETHING THAT WE'RE GOING TO BE FOCUSED ON, AND AS AN AGENCY, IT IS INCUMBENT UPON US TO EDUCATE INDIVIDUALS IN THE INDUSTRY BECAUSE ONE STATISTIC THAT IS FRIGHTENING IS THAT 50% OF THE FENTANYL OVERDOSES IN THE LAST YEAR OCCURRED IN PUBLIC PLACES OR COULD HAVE BEEN AVOIDED.
ONE OF THE THINGS I WANT TO ENCOURAGE THAT I MENTIONED IS I WOULD HOPE THAT ALL BARTENDERS AND ALL BARS WOULD HAVE, I BELIEVE IS IT NARCAN BEHIND THE BAR? I THINK ALL OF OUR AGENTS CARRY AT LEAST 1 OR 2 DOSES WITH THEM AT ALL TIMES.
IT'S A HORRIBLE, HORRIBLE EPIDEMIC, AND IT IS UNFORTUNATE THAT IT'S ALSO BEING WEAPONIZED.
NOW. SO IF YOU HAVE KIDS IN COLLEGE WHO SOMETIMES I KNOW THE KIDS HAVE TAKEN ADDERALL TO HELP STUDY FOR TESTS, THEY NEED TO BE VERY MINDFUL THAT IF THEY'RE NOT GETTING IT FROM YOU, THEIR PARENTS OR A PHARMACY, IT COULD BE SOMETHING VERY, VERY DEADLY FOR THEM, AND I THINK AS AN AGENCY, I SAID THERE ARE THREE WE HAVE THREE METHODS OR THAT WE ARE WORKING WITH.
ONE IS PREVENTION AT THE BORDER THROUGH OUR VERY VIGILANT OFFICERS THAT ARE ON THE BORDER RIGHT
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NOW. NUMBER TWO IS INTERDICTION THROUGH OUR ENFORCEMENT DIVISION, AND NUMBER THREE IS EDUCATION.SO WE ARE DOING OUR BEST TO EDUCATE THE PUBLIC, ESPECIALLY OUR LICENSE HOLDERS, ABOUT THE DANGERS, THE HORRORS OF FENTANYL, AND SO I'M ALSO APPRECIATIVE OF OF EVERYONE IN THIS AGENCY FOR WHAT THEY'RE DOING IN THAT REGARD.
SO WITH THAT, LADIES AND GENTLEMEN, WELCOME, AND PLEASE JOIN ME IN THE PLEDGE OF ALLEGIANCE.
I PLEDGE ALLEGIANCE TO THE FLAG.
THE UNITED STATES OF AMERICA TO THE REPUBLIC FOR WHICH IT STANDS.
ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
NEXT ITEM IS APPROVAL OF COMMISSION MEETING MINUTES.
I SO MOVE. IS THERE A SECOND? SECOND. THANK YOU, COMMISSIONER ADKINS.
THANK YOU. MOTION IS APPROVED.
THE NEXT AGENDA ITEM WILL BE EMPLOYEE SERVICE AWARD.
[2. Recognitions]
CHIEF. DIRECTOR FLETCHER, WHERE ARE WE? THERE WE ARE. OKAY.OH, I GUESS I NEED TO JUST SIT DOWN.
[CHUCKLING] WE'LL CALL YOU DOWN IN A MINUTE.
CHAIRMAN LILLY, COMMISSIONERS.
FOR THE RECORD, I'M DIRECTOR FLETCHER, DIRECTOR OF HUMAN RESOURCES.
JULIE ROSS BEGAN HER CAREER AT TABC IN 1989 AS A CLERK.
SHE BECAME SUPERVISOR OF THE LICENSING RESOURCE SUPPORT TEAM IN 2014.
JULIE HAS EXTENSIVE KNOWLEDGE OF LOCAL, STATE AND FEDERAL LAWS.
SHE HAS INTERACTED WITH ELECTED OFFICIALS AND STAKEHOLDERS ON A WIDE ARRAY OF TOPICS.
DIRECTOR CHIEF MACEYRA WILL JOIN YOU AND COMMISSIONERS.
SO WE HAVE AN ENGRAVED PLAQUE AND A SERVICE YEAR COIN AND A LAPEL PIN.
WE'D LIKE TO WELCOME YOUR FAMILY UP FOR ANOTHER.
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I'M JUST VERY BLESSED TO BE HERE, AND I WOULDN'T WANT TO BE SO THANK ALL OF YOU GUYS FOR HAVING ME HERE.[APPLAUSE] THAT'S A GREAT BABY, BY THE WAY.
IF I HAD MINE HERE BACK IN THE DAY, THEY'D BE PEELING THE PAINT OFF THE WALLS WITH THEIR SCREAMING.
SO THE NEXT AGENDA ITEM WILL BE ENFORCEMENT RECOGNITION.
GOOD MORNING, CHAIRMAN. GOOD MORNING, COMMISSIONERS.
FOR THE RECORD, MY NAME IS RON SWENSON.
I'M THE DEPUTY CHIEF OF THE INVESTIGATIONS BUREAU HERE AT TABC.
AS YOU ARE AWARE, FOR THE PAST TWO LEGISLATIVE SESSIONS, HUMAN TRAFFICKING HAS BEEN MADE A TOP PRIORITY OF THE AGENCY AND TO COMBAT HUMAN TRAFFICKING WITHIN LICENSED LOCATIONS.
WE HAVE TAKEN A FOCUS ON PUTTING OUR AGENTS IN PLACES WHERE THEY CAN MAKE THE MOST EFFORT OR DO THE MOST EFFORT AND DO THE MOST GOOD IN COMBATING HUMAN TRAFFICKING. ONE OF THOSE SUCH TASK FORCES WAS THE DEPARTMENT OF HOMELAND SECURITY HUMAN TRAFFICKING TASK FORCE IN NORTH TEXAS, WHERE WE PUT AGENT SHANTEL ROSEMOND AND KEN SHERMAN AS YOU CAN SEE IN THE PICTURE.
I HAVE AGENT SHERMAN AND AGENT SHANTELL HERE TODAY WITH US.
IF THEY WOULD, PLEASE COME UP WITH THEIR PLAQUES.
THIS TASK FORCE HAS BEEN SUCCESSFUL IN TAKING SEVERAL ADMINISTRATIVE CASES AGAINST LICENSED LOCATIONS, MISSING SOMEBODY AND SEVERAL OTHER ARRESTS AND RESCUED INDIVIDUALS FROM THE HUMAN TRAFFICKING AGENT SHANTEL ROSEMOND HAS BEEN WITH THE AGENCY FOR 18 YEARS.
SHE STARTED AS AN AUDITOR AND IN 2013-2014, WE SENT HER TO THE PEACE OFFICER SCHOOL TO BECOME A PEACE OFFICER WITHIN OUR FINANCIAL CRIMES UNIT. SHE HAS DONE A FANTASTIC JOB SINCE THEN.
SHE DOES A LOT OF ASSET FORFEITURE AND A LOT OF MONEY LAUNDERING INVESTIGATIONS.
AGENT SHERMAN HAS OVER 34 YEARS OF LAW ENFORCEMENT.
18 OF THOSE I'M SORRY, WITH TABC AND TEN OF THOSE WITH OUR SPECIAL INVESTIGATIONS UNIT.
I'D LIKE TO JUST SAY THANK YOU TO THE GREAT WORK AND GET THEM RECOGNIZED.
CONGRATULATIONS. THANK YOU, SIR.
NEXT AGENDA ITEM IS THE FY 24 OPERATING BUDGET.
[3. Reports]
CHIEF FINANCIAL OFFICER SWAN, IF YOU PLEASE, SIR.GOOD MORNING, CHAIRMAN. COMMISSIONERS.
FOR THE RECORD, CONRAD SWAN CHIEF FINANCIAL OFFICER AND ALSO FOR THE RECORD, I THINK IT'S UNFAIR THAT I'M FOLLOWING AN ANGEL BABY AND A SERVICE AWARD FOR THE YEAR, [CHUCKLING] BUT I DON'T GET TO PICK WHERE I GO IN THE AGENDA, BUT I HOPE THIS PRESENTATION IS FAMILIAR TO YOU.
WE TRIED TO USE THE SAME TEMPLATE THAT WE PUT BEFORE YOU IN THE PAST, SO HOPEFULLY SOME OF THAT FAMILIARITY IS THERE, AND WE USUALLY START WITH THIS PRESENTATION OF YOUR BUDGET BY STRATEGY, AND I LIKE TO START AT THE BOTTOM LINE AND POINT YOU TO THAT $64 MILLION OPERATING BUDGET THAT TABC IS GOING TO HAVE FOR 2024.
IF YOU HAD A NUMBER IN MIND, IT MIGHT HAVE BEEN ABOUT 62 MILLION COMING OUT OF YOUR GENERAL APPROPRIATIONS ACT, YOUR GAA, AND YOU MIGHT WONDER HOW DID WE GET TO THE 64? SO LET ME JUST KIND OF RECONCILE YOU TO THE $64 MILLION.
YOUR GAA INCLUDED AN ESTIMATE FOR FEDERAL FUNDS.
THAT'S WHERE WE SPEND OUR FEDERAL FORFEITURES.
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HAVE TO REMEMBER THAT OUR AGENCY RECEIVED A SUPPLEMENTAL APPROPRIATION FOR OUR VEHICLES.SO THAT'S HOW YOU HAVE $64 MILLION IS WE'RE COVERING ABOUT $2.7 MILLION OF VEHICLES MOVE FORWARD ON TOP OF OUR GAA FIGURE FOR GENERAL REVENUE AND NOT TO DO A LOT OF SESSION TALK, BUT I WOULD JUST REMIND YOU THAT THIS NUMBER INCLUDES ALL OF OUR EXCEPTIONAL ITEMS THAT WE GOT.
SO THAT WAS ABOUT $14 MILLION ACROSS THE BIENNIUM.
THE LION'S SHARE OF OUR SPENDING IS HAPPENING IN THAT ENFORCEMENT STRATEGY AT 30.5 MILLION OR 48%.
I WOULD ALSO POINT YOU TO THAT INFORMATION RESOURCES LINE, THAT 11.6.
SO IT DOES SKEW OUR PERCENTAGES.
WHEN YOU ADD A $7 MILLION PROJECT TO YOUR INFORMATION RESOURCE LINE.
SO LET'S TAKE A LOOK AT THAT SAME BUDGET, BUT THIS TIME BY OBJECTS OF EXPENSE.
SO YOUR ELBOWS, AS WE CALL THEM, THAT SAME $64 MILLION THAT YOU SEE THAT SALARIES AND WAGES, THAT'S WHERE WE DO THE MAJORITY OF OUR SPENDING, 67% THERE, $43 MILLION.
YOU CAN SEE THE CONVERSATION THAT WE WERE HAVING ABOUT THOSE VEHICLES.
THAT'S YOUR CAPITAL EXPENDITURES, THAT $2.7 MILLION NEAR THE BOTTOM OF THAT CHART THERE, THAT 2.7 PLUS A LITTLE BIT FOR OUR EQUIPMENT IS IN THAT LINE. YOUR TECHNOLOGY TRANSFORMATION ACTUALLY IS IN THAT 2001 PROFESSIONAL FEES AND SERVICES.
SO YOU'RE SEEING ABOUT $7 MILLION OF OUR TECHNOLOGY TRANSFORMATION IS SPENT IN THE FIRST YEAR.
FUEL AND LUBE, $300,000, TRAVEL, $300,000.
I WOULD POINT YOU TO THAT VERY LAST LINE BECAUSE THAT'S AN ODDBALL WHERE WE GO.
SO JUST TO REMIND YOU, THAT'S OUR TRANSFER TO TDA FOR THE WINE ASSISTANCE MARKETING PROGRAM.
IT'S NOT AN EXPENSE, IT'S A TRANSFER.
SO AGAIN, THAT TOP BLOCK, YOUR STRATEGY FOR ENFORCEMENT, THOSE THOSE BLOCKS OF DIVISIONS ALL ROLL UP TO YOUR STRATEGY, YOUR ENFORCEMENT STRATEGY. THAT'S WHERE THE LION'S SHARE OF OUR SPENDING IS COMING FROM.
LICENSING ABOUT 9%, 5.5 MILLION.
I WOULDN'T MAKE ANY ATTEMPT TO TRY TO ADD THESE NUMBERS UP AND TAKE THEM BACK A COUPLE OF SLIDES, AND THAT'S BECAUSE OF THAT VERY LAST LINE OF THE OF THE PRESENTATION, YOUR AGENCY WIDE BUDGET. THAT'S CLEARLY NOT A STRATEGY AND THAT'S CLEARLY NOT A FUNCTIONAL AREA OF OUR ORGANIZATION.
WE NEED TO PAY FOR OUR BUILDING RENT, WE NEED TO DO SOME SOFTWARE ITEMS. WE NEED TO DO OUR TELEPHONES.
THEY SIT IN THIS LAST LINE THAT WE CALL AGENCY WIDE, BUT THEY ACTUALLY BELONG TO THOSE STRATEGIES AND SO WITH THAT, THAT'S THE LAST BUDGET PRESENTATION I HAVE FOR YOU.
SO I WOULD OPEN THE FLOOR FOR QUESTIONS IF YOU HAVE ANY.
COMMISSIONERS, ANY QUESTIONS? THANK YOU.
I CAN GO INTO BOARD DOCS AND AND LOOK AT COMMISSION REPORTS AND FIND AND COMPARE THIS WITH THE 23 OR 22 OR 21 BUDGET JUST OFF THE TOP OF YOUR HEAD, IS THIS UP OR DOWN? ARE THERE ANY LINE ITEMS THAT ARE THAT ARE NOTABLY DIFFERENT FROM PAST YEARS? YEAH. SO IT'S GOING TO BE A TOUGH COMPARISON BECAUSE OF ALL THE SALARY ENHANCEMENTS THAT HAPPENED.
SO YOU'RE DEFINITELY GOING TO SEE A SPIKE ON THAT SALARY LINE FOR SURE.
OKAY. THANKS FOR THE EXPLANATION.
YOU'RE VERY WELCOME. GREAT JOB.
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THE NEXT AGENDA ITEM IS THE FY 24 INTERNAL AUDIT PLAN.DARLENE BROWN AND LIZ MYERS FROM MCCONNELL JONES LLP ARE JOINING US TODAY.
SO SHE WASN'T ABLE TO MAKE IT TODAY.
YEAH, WE'VE ALL LIVED THE CANCELED FLIGHT.
SO THE NOTEBOOK CONTAINS YOUR NOTEBOOK CONTAINS SUMMARIES OF MATERIALS I'LL BE DISCUSSING TODAY.
IF WE GO TO THE NEXT SLIDE, PLEASE, AND NEXT SLIDE.
THANK YOU. WE PLAN TO COMPLETE TWO AUDITS IN FY 24.
THE FIRST WILL BE THE ENFORCEMENT OPERATIONS AND LAW ENFORCEMENT DIVISION, AND THE SECOND AUDIT WILL BE REVIEWING EXECUTIVE OPERATIONS FOR FY 25 AUDIT PLAN.
IT'S CONTEMPLATIVE TO WILL REVIEW THE BUSINESS SERVICES DIVISION, INCLUDING SUPPORT OPERATIONS.
OTHERWISE, I'M SEEKING APPROVAL FOR THE PLAN.
OKAY, COMMISSIONERS, I DO WANT TO NOTE YOU'RE ONLY VOTING ON THE 24 PLAN, NOT THE 25 PLAN.
OKAY. ANY DISCUSSIONS OR QUESTIONS? I'D LIKE TO JUST MAKE A NOTE ABOUT THE AUDIT SINCE COMMISSIONER MACK AND MYSELF SERVE ON THE AUDIT COMMITTEE THAT WE'VE BEEN VERY PLEASED WITH THE COMMUNICATION AND THE TRANSPARENCY THAT WE'VE BEEN ABLE TO GET FROM NOT ONLY THE AGENCY BUT THE CONTRACTORS. WE'VE HAD VERY GOOD AND ROBUST CONVERSATIONS WE FEEL COMFORTABLE WITH WITH WORKING WITH THEM, AND THEN WE'LL ALSO TALK ABOUT SOME HEAT ITEMS THAT WE NEED TO ADDRESS, BUT OVERALL, LIKE I SAID, OUR DISCUSSIONS HAVE BEEN VERY OPEN AND HONEST, AND I'M SURE, COMMISSIONER MACK, I KNOW HE'S NOT HERE TODAY, BUT SINCE HE CHAIRS THE COMMITTEE, I THOUGHT I WOULD SAY A FEW WORDS ON THIS. GREAT. THANK YOU.
I JUST HAVE A QUESTION ABOUT WHAT WE'RE BEING ASKED TO ASK TO APPROVE.
THE CHECKLIST UNDER ACTION ITEM IS [INAUDIBLE] IS THAT IT? THAT IS IT, COMMISSIONER, UNDER THE FY 2024 ESTIMATED HOURS AND CHECKLISTS.
SO YOU'VE GOT 311 HOURS AT $50,000.
OKAY. SO JUST SO JUST 2024 AND WE'RE JUST IF WE THINK 311 TOTAL HOURS AND $50,000 IN FEES IS IS IS GOOD, WE APPROVE IT. IS THAT THE $50,000 IS ACTUALLY GOING TO COME UP LATER WHEN YOU APPROVE ITEM 3.6 WHEN YOU ACTUALLY APPROVE THE RENEWAL OF THE INTERNAL AUDIT SERVICES CONTRACT. RIGHT NOW, THIS VOTE IS JUST ON THE PLAN, WHICH LIZ SAID IS I THINK HER PLAN IS TO DO THE ENFORCEMENT AND EXECUTIVE EXECUTIVE OPERATIONS ALONG WITH A FEW OTHER THINGS IN FISCAL FISCAL YEAR 2024, AND I BELIEVE THAT'S ALL THAT THIS VOTE IS COVERING RIGHT NOW. I SAW ITEM 3.6.
I KNOW ABOUT THE CONTRACT; I WAS JUST WONDERING WHAT EXACTLY WE'RE APPROVING HERE.
IT LOOKS LIKE IT'S STRAIGHTFORWARD.
I JUST WANTED TO MAKE SURE IT WAS AS SIMPLE AS IT APPEARS TO BE.
SO WE'RE IT LOOKS LIKE BACKING INTO THE NUMBER OF HOURS FROM A FIXED FEE.
IS THE NUMBER OF HOURS ENOUGH FOR WHAT YOU'RE TRYING TO ACCOMPLISH WITH THE FY 2024? AS LONG AS BASED ON WHAT WE KNOW TODAY? YES, IT IS. NOW, IF WE HAD FOUND SOMETHING IN BETWEEN THAT COULD POTENTIALLY MAKE IT GREATER, WE WOULD WORK WITH THE EXECUTIVE TEAM AND THE AUDIT COMMITTEE TO DISCUSS THAT, TO DETERMINE IF IT'S SOMETHING THAT WE SHOULD MOVE TO A FUTURE YEAR FOR AN AUDIT OR TO MOVE FORWARD AND INCREASE THE HOURS.
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ONE OF THE THINGS I SAW COMING OUT OF THE LAST AUDIT ADDRESSING SOME OF THE LICENSING AND THE AIMS WAS THAT THERE DIDN'T APPEAR TO ME TO BE ENOUGH HOURS TO REALLY DIG INTO SOME OF THOSE AREAS.SO WE GOT GREAT INFORMATION IN CERTAIN AREAS, IN MY OPINION, SEEM TO BE OKAY WE'VE INTERVIEWED A SINGLE USER AND THEY'VE EXPRESSED AN ISSUE, SO WE'RE REPORTING THAT ISSUE, BUT I DIDN'T HAVE THE HOURS AVAILABLE POTENTIALLY TO ACTUALLY DIVE IN TO SEE IF IT'S A LEGITIMATE ISSUE OR NOT, AND SO THE AGENCY WENT DOWN A RABBIT HOLE IN CERTAIN AREAS TRYING TO UNCOVER WHAT THE ISSUE WAS, ONLY TO FIND OUT, WELL, THAT WASN'T FUNDED IN THE FIRST PART OF AIMS. THAT'S TO BE ADDRESSED LATER ON OR THIS HAS ALREADY BEEN CORRECTED, AND SO I JUST WANT TO MAKE SURE THAT, YES, THIS IS INCREDIBLY IMPORTANT, BUT THAT YOU HAVE THE APPROPRIATE NUMBER OF HOURS AND RESOURCES TO GIVE US DATA AND FACTS THAT ALLOWS US TO FIX ANY ISSUES THAT THERE MAY BE.
CORRECT, AND AGAIN, IF THAT SHOULD HAPPEN AT THIS TIME, IF THAT HAPPENS, WE WOULD ASK FOR THAT AND WORK WITH THE AUDIT COMMITTEE AND THE EXECUTIVE TEAM FIRST TO SEE IF THERE'S BUDGET TO ALLOW FOR THAT TO HAPPEN OR IS IT SOMETHING THAT WE STOP, SAY, IN THIS EXAMPLE WITH THE ENFORCEMENT, WE FIND SOMETHING ADDITIONAL? DO WE WANT TO POSTPONE THE EXECUTIVE OPERATIONS AUDIT AND USE THAT TIME TO COMPLETE THE AUDIT AND STILL STAY WITHIN BUDGET? SO THERE'S DIFFERENT THINGS THAT WE CAN DO TO WORK THAT OUT.
SO WE'RE APPROVING THIS TODAY AND IF WE NEED TO GO ABOVE 311 HOURS.
THAT WOULDN'T BE APPROVED BY COMMISSIONERS.
THAT WOULD BE APPROVED BY THE EXECUTIVE STAFF AND THE COMMITTEE.
JAMES. YEAH, THAT'S WHAT THAT'S.
I MOVE TO APPROVE THE FY 24 INTERNAL AUDIT PLAN AS RECOMMENDED BY STAFF.
IS THERE A SECOND? SECOND. THANK YOU, COMMISSIONER MARINO.
WE HAVE A SECOND. WE'LL NOW VOTE.
ALL RIGHT. OUR VOTES HAVE BEEN RECORDED.
THE NEXT AGENDA ITEM IS LICENSING INTERNAL AUDIT REPORT.
NEXT SLIDE, PLEASE. WE RATED THE INTERNAL CONTROLS AS UNSATISFACTORY FOR THE LICENSING AUDIT REPORT, AND WE PROVIDED FOUR RECOMMENDATIONS IN THREE FOCUS AREAS FOR THIS AUDIT.
INHERENT RISK THAT YOU SEE HERE IS HIGH IS THE IMPACT TO YOUR ORGANIZATION.
BASED ON OUR ASSESSMENT OF THE CONTROLS AND PROCESSES YOU HAVE IN PLACE? SO FOR THIS FIRST FOCUS AREA, WE ASSESSED WITH COMPLIANCE WITH APPLICABLE POLICIES, STATUTES AND RULES, AND WE ASSIGN THIS A RESIDUAL RISK OF LOW AND HAD NO FINDINGS TO REPORT.
THE SECOND FOCUS AREA WE ASSESSED WAS THE IMPLEMENTATION OF APPLICABLE SUNSET COMMISSION RECOMMENDATIONS, AND WE ALSO ASSIGNED THIS A RISK AS LOW AND HAD NO FINDINGS TO REPORT. THE THIRD FOCUS AREA.
SLIDE. NEXT SLIDE PLEASE WAS WITH REGARDS TO THE AIMS LICENSING MODULE, WE ASSESSED THE RESIDUAL RISK AS HIGH AND MADE FOUR RECOMMENDATIONS WHICH I WILL DISCUSS IN A MINUTE.
IT'S IMPORTANT TO NOTE THAT TABC WAS IN YEAR FOUR OF A SIX YEAR PLANNED IMPLEMENTATION.
STAFF DO THEIR BEST TO MEET OBJECTIVES WHILE DEALING WITH SEVERAL CHALLENGES THAT LICENSING THE LICENSING DIVISION FACES WHEN PROCESSING TRANSACTIONS THROUGH THE AIM SYSTEM. THESE CHALLENGES ARE PRIMARILY ATTRIBUTED TO A LACK OF VENDOR MANAGEMENT GAPS AND SYSTEM FUNCTIONALITY AND DATA INTEGRITY.
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THAT IMPACT THE LICENSING DIVISION SYSTEM UPDATES OR FIXES ARE NOT EFFECTIVELY VETTED BY THE SOFTWARE VENDOR.THIS CAUSES PREVIOUS UPDATES OR FIXES TO BE REVERTED TO THE ORIGINAL PRE-UPDATE STATE.
SYSTEM UPDATES OR FIXES WILL CHANGE DATA RELATING TO APPLICATIONS GOING FORWARD, BUT NOT UPDATE INFORMATION PRE-CHANGE RESULTING IN THE STAFF'S ABILITY TO DETERMINE WHICH APPLICATIONS SHOULD BE PRIORITIZED AND TABC STAFF LOST VISIBLE VISIBILITY TO OUTSTANDING TICKETS IN THE SYSTEM.
THE VENDOR PROVIDED A REPORT FOR TABC TO TRACK AGED OUTSTANDING TICKETS MANUALLY.
WE NOTED THE FOLLOWING ISSUES THAT IMPACTED THE LICENSING DIVISION.
THE ENTITY CHANGE MERGER FUNCTIONALITY DOES NOT UPDATE RECORDS AFTER INDIVIDUALS SUBMIT A MERGER OF ENTITIES ONLINE DATA CORRUPTION OCCURS WHEN THE CLIENT HAS BEEN HAS MORE THAN ONE SCREEN OPEN WITH APPLICATIONS.
ERRORS AND WARNINGS RELATED TO POTENTIAL LEGISLATIVE AND REGULATORY VIOLATIONS DO NOT ACCURATELY DISPLAY WITHIN AIMS SPECIFICALLY PROHIBITIVE AND TIED HOUSE WARNINGS DO NOT WORK. THE BOND PROCESSING FUNCTIONALITY WAS NOT IMPLEMENTED DUE TO COST CONCERNS AND THERE IS AN INABILITY TO MODIFY OR EDIT LICENSING PERMIT APPLICATIONS.
THE PROXY FUNCTION REFLECTS THE WRONG USER AS MAKING CHANGES.
THE FORM VALIDATION FUNCTION ALLOWS INCOMPLETE AND INACCURATE APPLICATIONS AND ABILITY TO CREATE ACCURATE AND RELIABLE REPORTS OR INQUIRIES DUE TO INACCURATE DATA.
THE SEARCH FUNCTION WITHIN THE SYSTEM DOES NOT WORK EFFECTIVELY.
AIMS DOES NOT INTERFACE WITH THE DPS FOR BACKGROUND CHECKS OF APPLICATIONS OR APPLICANTS, AND THE FUNCTION IS IMPLEMENTED BY TABC HAS NOT ACTIVATED IT BECAUSE THE PROCEDURES ARE NOT WRITTEN.
EXCUSE ME. WE ALSO IDENTIFIED DATA INTEGRITY ISSUES AS MAJOR IMPROVEMENT NEEDED.
AIMS PERFORMS INACCURATE AGING CALCULATIONS ON LICENSING APPLICATIONS.
THE RECOMMENDATIONS ARE: REVIEW THE VENDOR CONTRACT FOR AGREED UPON DELIVERABLES FOR EACH PHASE OF DEPLOYMENT AND COMPARE TO WHAT WAS ACTUALLY IMPLEMENTED, AND THEN WORK WITH THE VENDOR TO SET A TIMELINE FOR PROVIDING AGREED UPON DELIVERABLES.
PERFORM A FULL EVALUATION OF AIMS TO IDENTIFY ADDITIONAL GAPS IN MISSING FUNCTIONALITY AND HAVE THE VENDOR PROVIDE FULL READ ACCESS TO ABC'S HISTORICAL SERVICE TICKETS AND ITS STATUS.
THE FULL REPORT WAS PROVIDED BY EMAIL.
THAT IS THE END OF MY REPORT AND I'M HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.
ANY QUESTIONS? OKAY. THANK YOU VERY MUCH.
NEXT AGENDA ITEM IS LICENSING.
GOOD MORNING. GOOD MORNING, CHAIRMAN, COMMISSIONERS, FOR THE RECORD, MY NAME IS ANDREA MACEYRA.
I'M THE CHIEF OF REGULATORY AFFAIRS.
THIS MORNING GEORGE AND I WILL BE PRESENTING ON THE AGENCY'S RESPONSE FOR THE LICENSING INTERNAL AUDIT REPORT THAT WAS COMPLETED IN MAY 2023 BY OUR INTERNAL AUDITORS, MCCONNELL AND JONES.
THERE ARE FOUR RECOMMENDATIONS REVIEW THE VENDOR CONTRACT FOR AGREED UPON DELIVERABLES.
WORK WITH THE VENDOR TO IDENTIFY AND CORRECT DATA INTEGRITY ISSUES.
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PERFORM A FULL EVALUATION OF AIMS, AND LASTLY, HAVE THE VENDOR PROVIDE A FULL READ ACCESS TO TABC'S HISTORICAL SERVICE TICKETS AND THEIR STATUS.THE AGENCY HAS INITIATED SEVERAL ACTIVITIES.
I WILL TURN TO GEORGE TO TALK ABOUT OUR MANAGEMENT RESPONSES.
THANK YOU. GOOD MORNING, CHAIRMAN AND COMMISSIONERS.
FOR THE RECORD, MY NAME IS GEORGE STOLARD.
I'M THE CHIEF INFORMATION OFFICER FOR THE TABC.
FIRST, I WOULD LIKE TO THANK THE BOARD FOR ALLOWING DIRECTOR MACEYRA AND I TO HAVE THE OPPORTUNITY TO ANSWER ANY QUESTIONS ON THE LICENSING AUDIT, AND I WOULD LIKE TO THANK OUR INTERNAL AUDITORS, MCCONNELL AND JONES, FOR THEIR AND THEIR TEAM FOR THAT WORK WITH US ON THE AUDIT.
AS DIRECTOR MACEYRA IS RESPONDING ABOUT THE THREE FOCUS AREAS, I WANTED TO PROVIDE SOME HIGH LEVEL DETAILS ABOUT OUR MANAGEMENT RESPONSE FOR LACK OF VENDOR MANAGEMENT GAPS IN SYSTEM FUNCTIONALITY AND DATA INTEGRITY.
ONE OF THE FIRST TASKS WE ACCOMPLISHED WAS CONTRACTING WITH GARTNER'S CONSULTING ARM TO CONDUCT A CONTRACT RISK ASSESSMENT OF THE CONTRACTS ASSOCIATED WITH AIMS. GARTNER HAS SINCE PROVIDED SEVERAL RISK RECOMMENDATIONS IN THEIR FINAL REPORT, WHICH THE TABC HAS AND WILL BE PUTTING INTO PRACTICE.
FOR THE VENDOR ACCESS, IT AND THE VENDOR HAVE PARTNERED TO CREATE THE MECHANISM TO PROVIDE THE VENDOR WITH FULL READ ACCESS FOR ALL IN SCOPE LEGACY SYSTEMS. FOR THE LAST BULLET UNDER RISK, IT PLANS A FULL EVALUATION REVIEW LEADING UP TO THE END OF OUR SIX YEAR TIMELINE.
IN ADDITION TO THOSE STEPS TAKEN TO ADDRESS RISKS, THE AGENCY HAS ALSO MADE SOME NEW HIRES.
THE NEW MANAGER OF THE PROJECT MANAGEMENT OFFICE STARTED IN LATE JUNE.
THIS ROLE, OR I'M SORRY, SINCE AUGUST OF LAST YEAR, THIS ROLE NOW WILL BE RESPONSIBLE FOR MANAGING AGENCY STRATEGIC PROJECTS, MONITORING PROGRESS, RISK ISSUES, CHANGE REQUESTS AND SCHEDULES FOR ALL AIMS ACTIVITIES.
THIS IS A DEDICATED RESOURCE FOR ALL AGENCY CONTRACTS, INCLUDING AIMS. SHE WILL BE DEVELOPING SOLICITATIONS AND CONTRACTS AND REVIEW INVOICES AND CONTRACTS FOR ACCURACY AND COMPLIANCE.
ALSO WITHIN THE CONTRACT CHANGES WILL BE I, V AND V.
THE NEW PMO MANAGER WILL BE ONE OF THE MAIN POINTS OF CONTACT FOR THE FUTURE INDEPENDENT VERIFICATION AND VALIDATION VENDOR AND AS A FRIENDLY REMINDER, THE FUNCTION OF I, V AND V WILL BE TO HAVE A VRR APPROVED THIRD PARTY WHO IS INDEPENDENT OF TABC TO AID IN MAKING SURE THAT OUR AIMS, CONTRACT AND SERVICES ARE MEETING AND FULFILLING OUR REQUIREMENTS.
LASTLY, IN REGARD TO HISTORIC TICKETS, TABC HAS RECEIVED A LIST OF HISTORIC TICKETS.
THESE INCLUDE SOME ITEMS SUBMITTED DURING PHASE ONE.
SOME WERE DEFECTS, SOME WERE DUPLICATES OF ISSUES AND SOME JUST COSMETIC CHANGES.
THIS WILL ALLOW FOR A MUCH CLEARER AND MORE CONSISTENT PICTURE OF PENDING ISSUES AND PAIN POINTS SO THAT WORK CAN BE PRIORITIZED AND COMMUNICATED IN A MORE STREAMLINED FASHION. ON THE TOPIC OF GAP IN SYSTEM FUNCTIONALITY, TBAC CONTINUES TO WORK WITH THE VENDOR TO IMPROVE ALL FACETS OF AIMS FOR THE ENTITY CHANGE MERGER.
WE HAVE AN OPEN TICKET TO ADDRESS THIS FUNCTIONALITY.
THE VENDOR HAS WORKED WITH TBAC TO ENSURE ANY IMMEDIATE NEEDS FOR THIS FUNCTIONALITY ARE MET.
THE PERMANENT SOLUTION IS BEING WORKED ON THROUGH REQUIREMENTS, BUT OUR TEAM IS ESTIMATING THE END OF THIS MONTH FOR WHEN WE SHOULD BE ABLE TO FINISH THOSE REQUIREMENTS.
AFTER THAT, WE WILL STILL NEED TO THOROUGHLY TEST THIS POTENTIAL FIX.
SOME SYSTEM TRAINING HAS BEEN CREATED, BUT CREATING TRAINING TO ADDRESS ALL ASPECTS OF FUNCTIONALITY WILL TAKE TIME AND RESOURCES, AND SO THIS WILL BE AN ONGOING PREVIOUSLY BOND.
THE BOND PROCESSING WAS REMOVED FROM PHASE ONE.
IT WAS REMOVED FROM THE SCOPE DUE TO COST, THOUGH SOME ASPECTS OF THE BOND PROCESSING ARE AVAILABLE IN THE SYSTEM, WE HAVE NOT COMPLETELY REPLACED ALL FUNCTIONALITY PRESENT IN LEGACY SYSTEMS. THEREFORE, THE CURRENT PLAN IS TO DEPLOY THIS FUNCTIONALITY WITHIN OUR PHASE THREE DEPLOYMENT.
TABC CONTINUES TO WORK WITH THE VENDOR TO ENSURE WE ADDRESS ALL DATA INTEGRITY ISSUES.
[00:40:04]
ANY TEMPORARY WORKAROUNDS ARE DESIGNED TO BE TEMPORARY UNTIL STAFF ARE CONFIDENT WE NO LONGER NEED TO RELY ON LEGACY SYSTEMS OR MANUAL PAPER PROCESSES.IF THERE'S NO IMMEDIATE QUESTIONS, I WILL PASS IT BACK TO DIRECTOR MACEYRA.
OKAY. SO THE NEXT FOCUS AREA OF THE AUDIT WAS COMPLIANCE WITH POLICY STATUTES AND RULES BY IMPLEMENTING AND MAINTAINING RULES, POLICIES AND PROCEDURES TO PROMOTE AN EFFECTIVE CONTROLLED ENVIRONMENT.
THE RESIDUAL RISK FOR LICENSING IS LOW.
AS NOTED IN THE AUDIT REPORT, THE AUDIT REPORT FOUND NO RECOMMENDATIONS OR FINDINGS.
THE THIRD FOCUS AREA WAS IMPLEMENTATION OF SUNSET COMMISSION RECOMMENDATIONS.
AS INDICATED IN THE REPORT, THE INHERENT RISK FOR SUNSET IMPLEMENTATION WAS HIGH BECAUSE OF ITS IMPACT ON MORE THAN $40 BILLION INDUSTRY BUT RESIDUAL RISK IS LOW BECAUSE THE STATUTORY PROVISIONS IN THE SUNSET BILL WERE IMPLEMENTED.
NO RECOMMENDATIONS WERE FOUND.
THE RECENT INTERNAL AUDIT HAS GIVEN US THE OPPORTUNITY TO TAKE ADDITIONAL MEASURES TO ENSURE PROPER OVERSIGHT OF OUR CONTRACTS AND PROJECTS FOR SUCCESSFUL SUCCESSFUL COMPLETION IN 2025.
THIS CONCLUDES OUR PRESENTATION.
SHOULD YOU HAVE ANY QUESTIONS WE'RE HERE TO ANSWER.
THANK YOU. I'VE GOT SOME COMMENTS.
I WANT FIRST TO APPLAUD THE STAFF FOR THE QUICK RESPONSE AND ALL THE HARD WORK THAT WENT INTO RESPONDING TO THIS AUDIT WHEN YOU FIRST READ THIS AUDIT, IT SEEMS DISASTROUS AT A VERY HIGH LEVEL WHEN YOU READ THIS, BUT AS YOU DIG IN, WHAT WHAT I THINK WE FOUND WAS, YES, THERE ARE SOME AREAS OF CONCERN AND YOU'VE DONE AN EXCELLENT JOB IN ADDRESSING THOSE, AND I THINK THAT WILL HELP TREMENDOUSLY AS WE LOOK AT THE IMPLEMENTATION OF THIS NEXT CHUNK OF MONEY THAT WE HAVE TO COMPLETE THIS PROJECT, BUT A LOT OF WHAT WAS BROUGHT UP IN THE AUDIT ARE CONCERNS WE ALL KNEW ABOUT BECAUSE WE WEREN'T FULLY FUNDED.
SO A GREAT EXAMPLE IS BOND PROCESSING.
WELL, WE KNOWINGLY MOVED BOND PROCESSING BECAUSE WE DIDN'T HAVE THE DOLLARS.
SO IT'S TOUGH TO AS YOU NAVIGATE THIS AND LISTEN TO THE AUDIT.
WELL, YEAH, I UNDERSTAND THAT'S A CONCERN.
SO A BIG PIECE OF WHAT WAS OUT THERE WAS OUR HANDS ARE TIED UNLESS WE HAVE THE DOLLARS TO DO THIS AND DECISIONS HAD TO BE MADE AS TO WHAT CAN BE DONE NOW AND WHAT'S GOING TO HAVE TO BE DONE LATER.
NOW WE'VE GOT THE DOLLARS TO DO THAT LATER AND I THINK WE'VE GOT SOME REALLY GOOD GUIDANCE SPECIFICALLY ON THE VENDOR MANAGEMENT TO HELP MAKE SURE THAT WE ADDRESS ALL THESE NOW THAT WE HAVE THE FUNDING IN PLACE.
SO AGAIN, I'VE SEEN THE RESPONSE.
I THINK YOU'VE TAKEN ALL THE RIGHT STEPS AND I LOOK FORWARD TO THIS NEXT IMPLEMENTATION.
I THINK IT'LL BE VERY SUCCESSFUL.
THANK YOU, COMMISSIONER ADKINS.
ANY OTHER COMMENTS? YEAH, I LIKE THE PRESENTATION.
THANK YOU VERY MUCH I THINK THAT THIS REPRESENTS A CULTURE CHANGE, AT LEAST A PUBLIC FACING CULTURE CHANGE, WHICH WE'RE OWNING UP TO IN PUBLIC. WE'RE OWNING UP TO TWO PROBLEMS WITH AIMS AND WE'RE BEING VERY CLEAR ABOUT WHAT WE'RE DOING TO ADDRESS THEM.
I APPLAUD YOU AND OTHER PEOPLE AT THE AGENCY OR THAT I THINK IT'S GREAT.
I THINK THAT'S HOW THIS THIS ENDS UP BEING A SUCCESS.
SO THANK YOU SINCERELY VERY MUCH FOR THE ATTITUDE OF OF WANTING TO FIX THIS.
NOT THAT PEOPLE HAVEN'T WANTED TO FIX IT BEFORE.
THAT'S ABSOLUTELY NOT TRUE, BUT THERE'S A STRAIGHTFORWARD, CANDID RECKONING WITH WITH PROBLEMS HERE AND SOLUTIONS FOR FIXING THEM THAT I THINK IS WONDERFUL, AND I THINK IT SPEAKS WELL TO WHERE THE AGENCY IS NOW, AND THANK YOU FOR ALL THAT.
HAVING SAID ALL THAT, THOUGH, IS THERE ANYTHING THAT YOU ALL DISAGREE WITH THE INTERNAL AUDIT REPORT ABOUT? IS THERE ANYTHING THAT WE'RE RESISTING OR THAT WE QUIBBLE WITH? NO, COMMISSIONER, WE'RE GRATEFUL TO HAVE THE INFO AND THE DIRECTION THAT WE NEEDED TO GO.
[00:45:02]
IT HELPED US GO IN AND DIG INTO WHAT WE NEEDED TO DO, SEND US IN THE DIRECTION OF HIRING GARTNER TO MAKE SURE WE HAD ALL THE FACTS AND ALL THE TOOLS TO MOVE FORWARD TO MAKE SURE WE GET THIS THING DONE IN THE NEXT TWO YEARS AND GET IT DONE RIGHT.I HAVE TO APPLAUD AND ECHO MY COMMISSIONERS AS WELL.
THE WORK THAT HAS GONE BEHIND THE SCENES AND THE LEADERSHIP THAT IT HAS TAKEN TO GET US TO THIS POINT, THIS MEETING TODAY WOULD NOT HAVE GONE AS SMOOTHLY AS IT DID TODAY IF IT HADN'T BEEN FOR THE COUNTLESS HOURS THAT THIS LEADERSHIP HAS TAKEN AND THE TYPE OF JUST SERIOUSNESS THAT THEY'VE TAKEN THESE ISSUES AND JUST REALLY WANT TO APPLAUD THE STAFF FOR DOING THAT AND EXECUTIVE DIRECTOR GRAHAM, YOU'VE DONE AN INCREDIBLE JOB IN PULLING IT ALL TOGETHER.
SO JUST WANT TO THANK YOU FOR YOUR LEADERSHIP.
SO THANK YOU. THANK YOU, CHAIRMAN.
THANK YOU, COMMISSIONERS. THANK YOU.
OUR NEXT AGENDA ITEM IS THE SHOW GOES ON FOREVER AND THE PARTY NEVER ENDS.
.. [CHUCKLING] THE AIMS UPDATE.
DEPUTY DIRECTOR SANCHEZ, WELCOME.
THANK YOU. GOOD MORNING, CHAIRMAN.
COMMISSIONERS. MY NAME IS LAURIE SANCHEZ.
I'M THE DEPUTY DIRECTOR OF IT, AND I'LL BE PRESENTING YOUR AIMS UPDATE.
STARTING WITH AN OVERVIEW OF BUSINESS TRANSACTIONS CONDUCTED SINCE AIMS WENT LIVE, WE'VE HAD A TOTAL OF MORE THAN 1.5 MILLION INDUSTRY LOGINS, WHICH HAVE EQUATED TO APPROXIMATELY 29,000 ORIGINAL APPLICATIONS SUBMITTED 56,000 RENEWAL APPLICATIONS, 55,000 PRODUCT REGISTRATIONS, AND THEN APPROXIMATELY 15,000 ACCOUNT BUSINESS TRANSACTIONS, WHICH WOULD BE LIKE YOUR CHANGE OF TRADE, NAME, CHANGE OF LOCATION AND OTHER SELF-SERVICE TRANSACTIONS. I'D LIKE TO POINT OUT THAT THOSE ARE ALL IN LINE, WHEREAS IN THE PAST THEY WERE ALWAYS ON PAPER.
YES. THANK YOU. CURRENTLY WE'RE WORKING ON COMPLETING PHASE TWO.
SCOPE OF AIMS. SO WE'VE IMPLEMENTED COMPLIANCE REPORTING, INDUSTRY FIXES AND ENHANCEMENTS WHICH INCLUDE BUT ARE NOT LIMITED TO UPDATE PRINCIPAL PARTIES, PAYMENT CARD FUNCTIONALITY, EXTERNAL PERMISSION UPDATES AND MASS COMMUNICATIONS, WHICH IS A WAY FOR TABC USERS TO EXTRACT CONTACT INFORMATION FOR LICENSEES AND THEN THE PAYMENT DUE FUNCTION WHICH ALLOWS USERS TO REQUEST PAYMENTS FROM LICENSEES.
ITEMS WE'RE CURRENTLY WORKING TO FINALIZE AND IMPLEMENT IN OCTOBER ARE ENFORCEMENT UPDATES, LEGAL CASE MANAGEMENT EXPUNGEMENT, INTERNAL USER INTERFACE UPDATES AND THEN TO BE IMPLEMENTED SHORTLY AFTER THOSE ITEMS WOULD BE OUR OPEN RECORDS FUNCTIONALITY.
THROUGH THE SECOND PHASE OF AIMS, WE FACED A FEW CHALLENGES FOR EACH CHALLENGE OR REALIZED RISK.
WE HAVE FOCUSED ON HIGH IMPACT AND HIGH PROBABILITY ITEMS. THIS APPROACH HAS ALLOWED AIMS TO CONTINUOUSLY BE DEVELOPED BY CONSTANTLY EVALUATING RISKS, EVALUATING IMPACT ON STAFF AND INDUSTRY AND CONSIDERING BUDGET LIMITATIONS. KEY CHALLENGES THAT WE'VE ENCOUNTERED HAVE BEEN KEY RESOURCE TURNOVER, COMPETING PRIORITIES, BUDGET CONSTRAINTS, CLEAR DESIGN REQUIREMENTS AND EXPECTATIONS, COMMUNICATIONS OF PROJECT ACTIVITIES.
SO SOME OF THE ACTIONS THAT WE'VE TAKEN OR ARE TAKING IS WE'VE FILLED OUR KEY POSITIONS, WE'VE REVISED OUR PROJECT GOVERNANCE PROCESS, WE'RE REVISING THE REQUIREMENTS AND DESIGN PROCESS, AND WE'RE REVISING OUR COMMUNICATION PLAN AS WE TRANSITION INTO PHASE THREE.
WE'RE MAKING SOME CHANGES TO OUR INTERNAL PROCESS TO ENSURE SUCCESS OF AIMS FOR STAFF AND INDUSTRY.
SO WE'RE WORKING TO FINALIZE PHASE TWO SCOPE.
WE'RE PRIORITIZING PHASE THREE SCOPE WITH OUR REVISED GOVERNANCE PROCESS.
WE'RE REVISING OUR VENDOR MANAGEMENT THANKS TO THE INTERNAL AUDITS AND REPORTS.
WE'RE ALSO WORKING TO REVISE OUR COMMUNICATION PLAN TO CLEARLY IDENTIFY WHAT WILL BE COMMUNICATED, WHO WILL BE COMMUNICATED WITH AND BY WHOM, AND THAT'S FOR BOTH STAFF AND INDUSTRY. IDENTIFYING FUNCTIONALITY ENHANCEMENTS, WHICH WILL WORK WITH OUR BUSINESS UNITS TO IDENTIFY GAPS IN FUNCTIONALITY THAT'S NECESSARY TO IMPROVE OUR PROCESS PERFORMANCE. LOOKING FORWARD TO PHASE THREE.
THE AGENCY IS STARTING THE FIFTH YEAR OF A SIX YEAR PROJECT AND GETTING AIMS TO A STEADY STATE, MEANING COMPLETING THE INITIALLY PLANNED FUNCTIONALITY DEFINED SO KEY FUNCTIONALITY IS TO BE COMPLETED. ARE LEGISLATIVE UPDATES FROM THIS PAST SESSION.
[00:50:02]
CASH CREDIT LAW MODULE AUDIT FUNCTIONALITY EXCISE TAX RECONCILIATION, AUTOMATED REFUND WORKFLOW BOND MANAGEMENT RECORD RETENTION ORDER MANAGEMENT SYSTEM AND THEN CASE MANAGEMENT REFINEMENT, AND SO THIS CONCLUDES MY PRESENTATION AND I'M HAPPY TO ANSWER ANY QUESTIONS.SO IF YOU GO BACK TO THE BUSINESS TRANSACTION SLIDE, PLEASE, IF POSSIBLE.
ALL RIGHT. SO THAT'S ABOUT ALMOST SIX.
I GUESS THAT WOULD BE OVER 150,000.
APPLICATIONS OF SOME SORT THROUGH THE ENGINE.
SO THE PROBLEMS THAT WE IDENTIFIED IN THE AUDIT, MAYBE COMMISSIONER ADKINS, YOU CAN ADDRESS.
SO ARE YOU SAYING OF THESE 150,000 APPLICATIONS, WERE THEY COMPLETED FLAWLESSLY OR ARE THEY STILL SUBJECT TO SOME OF THE PROBLEMS THAT WE DISCUSSED PRIOR? THESE ARE SUBMITTED APPLICATIONS, AND SO THERE HAVE BEEN SOME THAT HAVE BEEN WITHDRAWN.
THERE HAVE BEEN DENIED FOR WHATEVER REASON, BUT THE MAJORITY OF THEM HAVE BEEN APPROVED.
I THINK I'M GOING TO ADDRESS THIS FROM FROM TWO ASPECTS.
ONE IS AS CHAIRMAN OF THE MAJOR IT PROJECT COMMITTEE, RIGHT.
WE'RE GETTING CONSTANT FEEDBACK FROM INDUSTRY ON AIMS AND VERY MUCH LOOK FORWARD TO THIS IMPLEMENTATION, AND WE HAD A LOT OF INDUSTRY FACING ISSUES WHEN AIMS WAS INITIALLY ROLLED OUT AND THOSE HAVE BEEN ADDRESSED, AND THE FEEDBACK WE'RE GETTING FROM INDUSTRY IS VERY POSITIVE RELATIVE TO AIMS. IT'S A GOOD EXPERIENCE FROM INDUSTRY IS WHAT WE'RE HEARING AND WHAT WE WANT TO MAKE SURE OF IN PHASE TWO IS THAT WE KEEP IT THAT WAY, AND SO WE REALLY WELCOME THE COMMITTEE WORKING AS WE ROLL THIS OUT SO THAT WE DON'T HAVE SOME OF THOSE SNAGS THAT AT THE INITIAL ROLLOUT WE HAD, AS I LOOK AT THE AUDIT, IT WAS MORE DIRECTED INTERNALLY. SO SO WHAT ARE THE ISSUES THAT WE ARE SEEING INTERNALLY AS WE TRANSITION TO THIS NEW SOFTWARE, NOT NECESSARILY INDUSTRY FACING AGAIN LATELY THE INDUSTRY FACING FEEDBACK I'VE GOTTEN HAS BEEN EXTREMELY SOLID.
SO WE AS AN AGENCY ARE HAVING TO DEAL WITH THE FACT THAT THIS ENTIRE PROJECT WASN'T FULLY FUNDED AND SO WE HAD TO MAKE SACRIFICES AND IT WASN'T WORKING THE WAY THAT WE WANTED TO IN THE END THAT WE WANT.
EXACTLY, AND THEN HAVING AN AUDIT CONDUCTED IN THE MIDDLE OF A PROJECT, TOO, LEADS TO CHALLENGES AS WELL, RIGHT? SO, I THINK THE VENDOR MANAGEMENT ASPECT WAS A VERY VALID CONCERN AND I THINK WE'VE DONE AN EXCELLENT JOB.
I'M VERY APPRECIATIVE OF HOW WE'VE ADDRESSED THAT AND HOW WE'RE GOING TO MANAGE THAT.
ON THE SECOND PART, A LOT OF THE OTHER ISSUES ARE THINGS THAT WE WERE VERY AWARE OF, BUT WE DIDN'T HAVE THE TIME OR THE FUNDS TO FIX THEM YET.
SO RIGHT, AND I ALSO LIKE TO COMMEND COMMISSIONER ADKINS AND THE THE AUDIT TEAM.
THE OTHER WHO ELSE WAS ON THAT COMMISSION OR ON THE COMMITTEE WITH YOU? RIGHT NOW IT'S MYSELF AND THEN THE INDUSTRY FOLKS.
I THINK YOU'VE DONE A GREAT JOB WITH THIS.
IT WAS A THANKLESS JOB, AND YOUR YOUR DILIGENCE ON THIS HAS BEEN EXTRAORDINARY.
I'D ALSO LIKE TO RECOGNIZE THE AUDIT COMMITTEE, COMMISSIONER MARINO AND COMMISSIONER MACK FOR MAKING THIS AS SEAMLESS A TRANSITION AS POSSIBLE AND THE WORK THAT YOU DID IS VERY MUCH APPRECIATED.
SO ANYWAY, THANK YOU VERY MUCH.
SO THANK YOU FOR I JUST SIT UP HERE. YOU ALL DO IT.
[00:55:05]
CONTRACT. JOE JAMES, COUNSEL FOR THE AGENT FOR AGENCY AFFAIRS.GOOD MORNING. I AM JOE JAMES, TABC'S COUNSEL FOR AGENCY AFFAIRS.
YOU HAVE BEEN BRIEFED ON THE COMPLETED AND PROPOSED WORK OF THE AUDIT FIRM MCCONNELL JONES.
WE CURRENTLY HAVE A CONTRACT WITH MCCONNELL JONES THAT EXPIRES IN DECEMBER 2023.
IN ORDER TO COMPLETE THE PROPOSED WORK THAT YOU JUST APPROVED, YOU MUST ALSO APPROVE AN EXTENSION OF THE CONTRACT THAT IS INCLUDED IN YOUR PACKET TO AN EXPIRATION DATE THAT COINCIDES WITH THE END OF THE STATE'S FISCAL YEAR FOR 2024.
THUS, THE CONTRACT'S NEW EXPIRATION DATE.
WITH YOUR APPROVAL AND THE EXECUTION OF THE CONTRACT AMENDMENT BECOMES CONSISTENT WITH THE DRAFT AMENDMENT IN THE MATERIALS YOU'VE BEEN PROVIDED AND WOULD RESULT IN A CONTRACT EXPIRATION DATE OF AUGUST 31ST, 2024.
THANK YOU. I'M HAPPY TO TAKE YOUR QUESTIONS.
THAT KIND OF TURNED INTO A WORD SALAD ON ME.
WAS THE DRAFT AMENDMENT NOT MADE AVAILABLE TO YOU OR ARE YOU ASKING FOR THE ENTIRE CONTRACT, SIR? I GUESS ANY OTHER HAVEN'T SEEN THE AMENDMENT OR.
IT'S A FAIRLY STRAIGHTFORWARD AMENDMENT.
IT EXTENDS THE ISN'T NECESSARILY A DEAL BREAKER, I JUST WANTED TO.
YES, SIR, AND I CAN OUTLINE WHAT CERTAINLY IT'S THE WHAT WE'RE APPROVING.
IT WOULD EXTEND THE CONTRACT FROM DECEMBER OF 2023 TO THE END OF AUGUST 2024 WITH THE $50,000 FIGURE THAT YOU SAW IN THE EARLIER SLIDE.
AGAIN, BACK TO COMMISSIONER BOATWRIGHT'S EARLIER QUESTION, IF ADDITIONAL HOURS ARE NEEDED, HOW IS THAT HANDLED WITHIN THE CONTRACT? IS THAT ALLOWED? BUT IT NEEDS TO COME BACK TO THE COMMISSION FOR APPROVAL OR THAT GOES TO THE EXECUTIVE DIRECTOR OR THE COMMITTEE FOR APPROVAL.
IN AN ABUNDANCE OF CAUTION, I WOULD SUGGEST THAT THIS COMMISSION, IF YOU WANT THAT TO BE MADE, IF YOU WANT THE OPTION OF ALLOWING DELEGATING TO STAFF THE AUTHORITY TO EXCEED THAT FIGURE, THAT YOU WOULD ADOPT A MOTION THAT WOULD ALLOW FOR THAT SHORT OF THAT.
MY INCLINATION, THOUGH, WE HAVE NOT DISCUSSED THE THE LEGAL INS AND OUTS OF THAT.
MY INCLINATION WOULD BE TO COME BACK TO THIS BODY SINCE YOU ARE APPROVING THIS AMOUNT.
IF WE WERE GOING TO EXCEED THAT, I WOULD EXPECT TO COME BACK TO YOU AGAIN.
IF YOU WANT TO DELEGATE THAT AUTHORITY, I WOULD THINK THAT WOULD BE WITHIN YOUR [INAUDIBLE] ON THIS AGENDA ITEM, GIVEN THE PUBLIC POSTING AND THE AND THE NOTICE OF WHAT THIS AGENDA ITEM IS ABOUT APPROVING AN AMENDMENT TO A CONTRACT, AND CAN WE DO THAT DELEGATION NOW OR DO WE HAVE TO WAIT UNTIL A ANOTHER MEETING? I THINK APPROVING THE THE EXTENSION OF THE CONTRACT IS WHAT'S ON THE AGENDA.
THE EXTENT YOU WANT TO AUTHORIZE HANDLING OF THE CONTRACT WITHIN THAT TIME PERIOD, TO ME FALLS WITHIN THE SCOPE OF WHAT'S ON THE AGENDA ALREADY.
I KIND OF ADDRESSED THIS EARLIER.
SO THAT'S BEEN PAST PRACTICE AND I THINK THAT'S CONSISTENT WITH THE LAW.
SO I THINK APPROVING THIS, IF WE DO NEED MORE HOURS, STAFF CAN ADDRESS THAT WITH THE AUDIT COMMITTEE AND THE CONFERENCE ROOMS. I APOLOGIZE IF I GAVE INCORRECT INFORMATION.
COMMISSIONER MARINO, YOU HAVE ANY COMMENTS OR THOUGHTS? THE ONLY COMMENT I HAD WAS THE LONGEVITY OF THE CONTRACT.
DIDN'T GET A CHANCE I GUESS, TO LOOK AT IT OR DIDN'T GET A CHANCE TO PULL IT UP ON BOARD DOCS.
I KNOW WE HAVE TO DO THIS ON AN ANNUAL BASIS, BUT KNOWING THAT SOMETIMES HAVING A LONGER WINDOW OR A LONGER RUNWAY WHEN WE'RE WORKING WITH OUR PARTNERS OR OUR OUTSIDE PARTNERS AND VENDORS IS ALSO SOMETHING THAT IS ADVANTAGEOUS TO US AS AN AGENCY.
[01:00:03]
ANNUAL BASIS WITH THE OPPORTUNITY OF RENEWING FOR TWO YEARS? IF WE DECIDE AS A COMMISSION TO DO SO? IS THAT ADDRESSED IN THIS CONTRACT? I THINK OUR FOCUS HAS BEEN TO ADDRESS DISCRETE SUBJECT MATTER WITHIN EACH ANNUAL PERIOD.YOU KIND OF GOT A LOOK FORWARD.
IT GIVES THE AGENCY A LITTLE MORE FLEXIBILITY TO LOOK AT THIS ON AN ANNUAL BASIS, TO SAY, ARE WE HAPPY WITH THE WORK THAT OUR INTERNAL AUDITORS HAVE BEEN DOING, OR IS IT TIME FOR US TO CONSIDER GOING IN A DIFFERENT DIRECTION? THAT'S TRUE OF ALL OUR CONTRACTS.
SO, YES, YOU DO TRY TO BALANCE THOSE INTERESTS OF HAVING ENOUGH TIME, BUT ALSO HAVING FLEXIBILITY TO ENSURE THAT WE ARE BEING AS EFFECTIVE AS POSSIBLE.
SO I THINK THE ONE YEAR PERIOD WAS CHOSEN IN ORDER TO MOST EFFECTIVELY UTILIZE THESE SERVICES.
COMMISSIONER. SO I'M IN THE MIDDLE OF THE JURY TRIAL.
I'M NOT AS I HAVEN'T MASTERED THIS LIKE I WOULD NORMALLY LIKE TO BUT THE SECRETARY OF STATE'S OFFICE HAS THE AGENDA ITEM AS WHAT IS IT? APPROVAL OF INTERNAL AUDIT SERVICES CONTRACT.
YES, AND DON'T I'M JUST THINKING OUT LOUD HERE.
WE DON'T HAVE A CONTRACT TO APPROVE, AND THERE ARE QUESTIONS ABOUT ABOUT DELEGATING.
SO WE EARLIER WE APPROVED THIS $50,000, 331 HOURS OR SOMETHING LIKE THAT, AND I GUESS THAT REQUIRED OUR APPROVAL, BUT THEN STAFF CAN GO CHANGE THAT LATER IF THEY WANT, WITHOUT OUR APPROVAL.
WE WOULD BE WORKING WITH AN EXTENSION TO THIS CONTRACT THAT IS RELATED TO THAT IN SOME WAY, BUT COMMISSIONER DON'T HAVE CONTRACT AND IT SOUNDS LIKE WE MIGHT BE BEING ASKED TO DO SOMETHING THAT'S A LITTLE BIT DIFFERENT FROM WHAT'S ON THE AGENDA ITEM AGAIN ANYWAY, THINKING OUT LOUD, BUT THESE ARE THE KINDS OF QUESTIONS THAT I'M MULLING OVER AS WE'RE SPEAKING.
COMMISSIONER BOATWRIGHT, JUST TO BE CLEAR, WHAT YOU'RE BEING ASKED TO VOTE ON HERE NOW IS ESSENTIALLY JUST AN EXTENSION OF THE CURRENT CONTRACT TO AUGUST 31ST, 2024. THAT'S WHAT WAS POSTED IN THE REGISTER.
THAT'S WHAT THE VOTE IS BEING TAKEN ON.
SO ALL THIS REALLY IS IS DO YOU WANT TO EXTEND MCCONNELL JONES' CONTRACT THROUGH AUGUST 31ST, 2024? JUST ON THE WEBSITE, IT SAYS APPROVAL OF INTERNAL AUDIT SERVICES CONTRACT BUT MAYBE THERE'S SOMETHING ELSE.
I THINK AT THE END OF ONE YEAR WE REALLY NEED TO EVALUATE WHAT WE'RE GETTING BACK FROM THESE AUDITORS AND UNDERSTAND IS 311 HOURS ENOUGH FOR WHAT WE NEED AS AN AGENCY AND AND JUST TAKE A REEVALUATION AT THAT TIME AND LOOK AT THE QUALITY OF THE WORK THAT'S COMING BACK AND REASSESS, BUT MOVING FORWARD WITH THE ACTION PLAN WE'VE ALREADY PROCEEDED AND THE EXTENSION OF THE CONTRACT, I'M I'M OKAY WITH IT.
WE'LL MAKE SURE WHICH IS MORE SPECIFIC.
JAMES KNOWS MORE ABOUT THIS STUFF THAN I DO.
YES, SIR. I MEAN, WHAT WAS PUT ON THERE IS APPROVING THE CONTRACT AMENDMENT.
THAT'S WHAT WE'RE DOING. WE'RE DOING AN EXTENSION.
IT IS A RENEWAL OF THAT CONTRACT.
SO WHILE THE LANGUAGE COULD HAVE BEEN CLEARER, I THINK WE'RE GOOD FROM A OPEN MEETING STANDPOINT AS TO WHAT WE PUT ON THE [INAUDIBLE] . OKAY.
I'LL VOTE FOR IT. THAT'S WHY YOU'RE THE GC.
ALL RIGHT. ANY FURTHER COMMENTS?
[01:05:01]
QUESTIONS? EXCELLENT.ALL RIGHT. I MOVE TO APPROVE THE AMENDMENT TO EXTEND.
THERE WE GO. HERE'S THE PROPER LANGUAGE TO EXTEND THE INTERNAL AUDITOR CONTRACT AND CHANGE ITS TERM FROM A CALENDAR YEAR BASIS TO A FISCAL YEAR BASIS AS RECOMMENDED BY STAFF.
IS THERE A SECOND? SECOND. THANK YOU, COMMISSIONER ADKINS.
THANK YOU. THANKS VERY MUCH, JOE.
ALL RIGHT. THE NEXT AGENDA ITEM IS PUBLIC COMMENTS.
WE HAVE NONE, SIR. WE HAVE NONE.
ALL RIGHT. NEXT AGENDA ITEM IS EXECUTIVE SESSION.
[5. Executive Session]
COMMISSION WILL NOW GO INTO EXECUTIVE SESSION UNDER GOVERNMENT CODE 551.074, 071 AND 089.IT IS 11:39 AND WE ARE IN RECESS.
THE TABC HAS CONCLUDED ITS EXECUTIVE SESSIONS NOW IN REGULAR OPEN SESSION.
DATE IS TUESDAY, SEPTEMBER 26TH, 2023.
NEXT IS POTENTIAL ACTION ON ITEMS DISCUSSED IN EXECUTIVE SESSION.
NO ACTION WILL BE TAKEN, AND THE NEXT ANNOUNCEMENT IS OF OUR NEXT MEETING DATE.
[6. Closing Items]
NEXT SCHEDULE COMMISSION MEETING DATE IS PLANNED FOR TUESDAY, NOVEMBER 28TH, 2023.BE MINDFUL THAT IS IMMEDIATELY AFTER THANKSGIVING.
THAT'S WHY WE ADJUSTED IT, AND THANKSGIVING IS NOVEMBER 23RD.
COMMISSIONERS, DO YOU HAVE ANY PROBLEM WITH THAT DATE? IF YOU'LL ALL TAKE A MOMENT TO CHECK YOUR CALENDARS, PLEASE.
I DO NOT THINK I'M GOING TO BE AVAILABLE ON THE 28TH.
OKAY. I'M EXTENDING THANKSGIVING ON THE BACK END.
RIGHT. COMMISSIONER MARINO, COMMISSIONER BOATWRIGHT, DO YOU HAVE ANY ISSUES WITH THE 28TH? GENERALLY BEFORE THANKSGIVING IS BETTER THAN AFTER ALL THE CHRISTMAS, RIGHT? RIGHT. SO MAYBE TRUE, A WEEK BEFORE THE WEEK OF THANKSGIVING WOULD BE THE 14TH, BETTER THAN ANYTIME BETWEEN THANKSGIVING AND CHRISTMAS.
COMMISSIONER BOATWRIGHT DOES THE 14TH WORK FOR YOU.
COMMISSIONER BOATWRIGHT DOES THE 14TH WORK FOR YOU? YES, SIR. THANK YOU.
COMMISSIONER MARINO? THE 14TH DOES NOT WORK FOR ME, BUT THE 28TH DOES SO SINCE.
SINCE IT WAS ALREADY POSTED AS THE 28TH.
I THINK I'VE ENCOUNTERED INSTANCES BEFORE WHERE I TRY TO PLAN AROUND THE TIME THAT'S POSTED IN BOARD DOCS AND THEN IT GETS CHANGED, AND ANYWAY, WELL I GUESS WE NEED TO CHECK WITH [INAUDIBLE] ON THE 28TH.
WELL WE HAVE TO CHECK WITH COMMISSIONER MACK.
CAN WE TABLE THAT UNTIL WE GET [INAUDIBLE].
OKAY. ALL RIGHT THEN WE'RE GOING TO GO AHEAD AND TABLE THAT DATE TILL WE FIND OUT WHAT WORKS FOR COMMISSIONER MACK, AND WE'LL COME TO I'D LIKE TO HAVE AT LEAST FOUR OF US IF POSSIBLE. SO ALL RIGHT WE WILL TABLE THE DECISION ON THE NEXT MEETING.
IT WILL BE EITHER THE 14TH OR THE 28TH.
HOW ABOUT THAT? IS THAT FAIR? OKAY. NEXT IS ADJOURNMENT.
THANK YOU, LADIES AND GENTLEMEN.
WE'LL SEE YOU SOMETIME IN NOVEMBER.
ADIOS. BYE.
* This transcript was compiled from uncorrected Closed Captioning.