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ALL RIGHT. GOOD MORNING EVERYBODY.

[1. Opening Items]

[00:00:03]

HOPE EVERYBODY HAD A SAFE HALLOWEEN.

THE FIRST AGENDA ITEM IS THE CALL TO ORDER.

THE TIME IS 10:31 ON TUESDAY, NOVEMBER 14TH.

WE HAVE A QUORUM.

BEFORE WE GET STARTED, I WANT TO RECOGNIZE THAT I'M AN EQUAL OPPORTUNITY FAN.

SO I AM WEARING TEXAS RANGER BLUE TIE TODAY IN HONOR OF THE WORLD SERIES.

THE ASTROS DIDN'T QUITE COME TO THE.

IT WAS A GOOD IT WAS A GOOD RUN THOUGH RIGHT.

SO ANYWAY, FOR ALL YOU FOLKS IN DALLAS FORT WORTH METROPLEX, I STILL LOVE YOU.

SO WELCOME EVERYONE.

IT'S NICE TO BE HERE ON THIS BEAUTIFUL DAY.

WE ARE ABOUT TO EMBARK ON ONE OF THE BUSIEST SEASONS IN OUR INDUSTRY.

AND AS YOU ALL KNOW, THE MANUFACTURERS, THE RETAILERS AND DISTRIBUTORS, THIS IS FOR MANY IN OUR INDUSTRY.

THIS IS THEIR THIS IS THEIR YEAR, RIGHT? THE NEXT 30 DAYS ARE CRITICAL FOR THE SURVIVAL IN SOME CASES OF SOME OF THE INDUSTRIES THAT WE SERVE.

SO IT'S A VERY, VERY IMPORTANT TIME, CRITICAL TIME.

BUT IT'S ALSO A BUSY TIME FOR US.

THOUSANDS OF LICENSES.

WE HAVE THE PORT OF ENTRY, PEOPLE PREPARING FOR THE PAISANO SEASON, AS WELL AS OUR ENFORCEMENT AND AUDIT PEOPLE WHO CONTINUE TO WORK.

AND SO WHILE SOME PEOPLE TAKE TIME OFF DURING THE HOLIDAYS, OUR AGENCY CONTINUES TO WORK.

THERE'S NO HOLIDAY FOR PUBLIC SERVANTS.

AND THAT'S AN IMPORTANT DISTINCTION, I THINK, AND SOMETHING THAT WE SHOULD NOT TAKE FOR GRANTED.

WE OBVIOUSLY JUST RECOGNIZE VETERANS DAY, AND I LIKE TO THINK THAT IT'S WE PROBABLY SHOULD HAVE A PUBLIC SERVANTS DAY, BECAUSE EVERY TIME I SEE A FIRST RESPONDER, I ALWAYS THANK THEM FOR THEIR SERVICE BECAUSE THEY'RE OFTEN FIREFIGHTERS AND EMTS, POLICE OFFICERS, THEY DON'T GET MANY. [INAUDIBLE] THE HOLIDAYS, THEY'RE WORKING HARDER.

RIGHT. AND SO I WANTED TO IF YOU'LL INDULGE ME FOR ABOUT FOUR MINUTES.

AT THIS MOMENT, MY WIFE IS IN SAN ANTONIO.

GIVING THE CHIEF ALBERT LILLY MEMORIAL SCHOLARSHIP AT ANTONIAN HIGH SCHOOL IS A CATHOLIC HIGH SCHOOL WHERE I ATTENDED IN SAN ANTONIO, AND THE RECIPIENT MUST BE THE CHILD OF A FIRST RESPONDER OR SERVICE MEMBER.

AND SO A YOUNG LADY NAMED EVELYN GARCIA WAS THE RECIPIENT, AND SHE WROTE AN ESSAY THAT FRANKLY BROUGHT MY WIFE AND I WERE PRACTICALLY TO TEARS.

AND I JUST IN THE IN THE THE SPIRIT OF PUBLIC SERVICE, NOT JUST MILITARY SERVICE.

I WANTED TO READ PART OF HER ESSAY, IF YOU WOULD INDULGE ME, BECAUSE I THOUGHT IT WAS BEAUTIFULLY WRITTEN AND REFLECTIVE OF WHAT WE ALL REPRESENT IN THIS ROOM.

AT THE ONSET OF AMERICA BEING PLUNGED INTO WORLD WAR TWO, ENRIQUE GARCIA DECIDED TO VOLUNTEER IN THE UNITED STATES ARMY.

THE HUMBLE SON OF MEXICAN IMMIGRANTS WOULD TRAVEL THE WORLD FINDING HIMSELF IN AUSTRALIA, TRAINING THE FIRST CAVALRY DIVISION IN THE US FOR MEN AND FOR US SOLDIERS, AS WELL AS ALLIED SOLDIERS.

HIS SON, ESTEBAN GARCIA, WANTED TO CONTINUE THE TRADITION OF SERVICE TO HIS COUNTRY, AND HE DISCOVERED HIS CALLING IN THE UNITED STATES BORDER PATROL.

MY FATHER, ESTEBAN ANTONIO GARCIA, ALWAYS KNEW HIS PATH WOULD BE FOLLOWING EITHER MAN.

IT IS OUR COUNTRY'S GOOD FORTUNE THAT HE FOUND HIMSELF IN THE UNITED STATES ARMY AND THE DEPARTMENT OF HOMELAND SECURITY, WHERE HE CURRENTLY WORKS.

AT THE END, SHE SAID, MY FATHER MAKES A SACRIFICE DAILY TO IMPROVE ME AND MY SIBLINGS LIVES THROUGH CATHOLIC EDUCATION.

BUT HE HAS BEEN MAKING SACRIFICES FOR OVER 20 YEARS FOR HIS FAMILY, FRIENDS AND PEOPLE HE HAS NEVER MET.

AS AN AMERICAN, I'M EXTREMELY THANKFUL FOR ALL THAT HE HAS DONE AS A DAUGHTER I'M NOT ONLY THANKFUL, BUT PROUD THAT HE HAS CHOSEN SERVICE AND SACRIFICE.

HE IS A TREMENDOUS EXAMPLE, AND I HOPE THIS SCHOLARSHIP CAN HELP ME MOVE FORWARD AND BE MORE LIKE HIM.

SO I THANK ALL WHO HAVE SERVED AND WITH THAT, THE NEXT AGENDA ITEM IS THE PLEDGE OF ALLEGIANCE.

ALL RIGHT. AND AS IS FITTING COMMISSIONERS. DO YOU HAVE ANY OPENING COMMENTS? NONE FOR ME. AND I SEE WE HAVE COMMISSIONER ADKINS LIVE FROM EL PASO.

[00:05:03]

INDEED. I'M SORRY I COULDN'T BE THERE IN PERSON TODAY, BUT HAPPY TO JOIN FROM A NICE, CLOUDY, COOL DAY IN EL PASO.

GREAT. WELCOME.

ALL RIGHT. THE NEXT AGENDA ITEM IS APPROVAL OF COMMISSION MEETING MINUTES FROM SEPTEMBER 26TH OF 2023 I SO MOVE.

IS THERE A SECOND? SECOND.

THANK YOU, COMMISSIONER BOATRIGHT.

WE HAVE A SECOND. WE WILL NOW VOTE.

THE MINUTES ARE APPROVED AS WRITTEN.

NEXT AGENDA ITEM WILL BE EMPLOYEE SERVICE AWARD EXECUTIVE CHIEF SWENSON AND DIRECTOR FLETCHER, IF YOU PLEASE.

[2. Recognitions]

ALL RIGHT. GOOD MORNING EVERYBODY.

CHAIRMAN. COMMISSIONERS.

FOR THE RECORD, MY NAME'S AMANDA FLETCHER, DIRECTOR OF HUMAN RESOURCES.

AND TODAY I'M HERE WITH EXECUTIVE CHIEF RON SWENSON.

HAD THE PLEASURE OF INTRODUCING A SERVICE AWARD TODAY.

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

LEADERSHIP RECOGNIZES THE DEDICATION AND LOYALTY OF OUR EMPLOYEES THROUGH OUR SERVICE AWARD PROGRAM.

WE RECOGNIZE EMPLOYEES SERVICE YEAR MILESTONE EVERY FIVE YEARS.

EMPLOYEES WITH 5 TO 20 YEARS OF SERVICE ARE RECOGNIZED DIRECTLY THROUGH THEIR DIRECTORS, AND IT'S ALSO BROADCASTED ON OUR EMPLOYEE COMMUNICATIONS.

BUT THOSE WITH 25 YEARS AND ABOVE, WE LIKE TO RECOGNIZE HERE AT THE COMMISSION MEETING.

SO TODAY, EXECUTIVE CHIEF RON SWENSON AND I HAVE THE PLEASURE OF RECOGNIZING AGENT MICHAEL CANTRELL FOR HIS 25 YEARS OF SERVICE.

AND I'D LIKE TO WELCOME HIM UP TO THE FRONT AT THIS TIME.

THANK YOU. AGENT MICHAEL CANTRELL WAS BORN AND RAISED IN SAN ANTONIO.

AGENT MICHAEL CANTRELL GRADUATED FROM DILLARD COLUMN HIGH SCHOOL IN 1984.

HE RECEIVED A BACHELOR'S DEGREE IN HISTORY FROM SOUTHERN NAZARENE UNIVERSITY IN BETHANY, OKLAHOMA IN 1988.

CANTRELL SERVED IN THE US ARMY MILITARY POLICE CORPS FROM 1988 TO 1992, ATTAINING THE RANK OF SERGEANT.

HE RETURNED TO HIS HOMETOWN TO OBTAIN HIS PEACE OFFICER CERTIFICATION IN 1993, AND SERVED WITH THE SAINT MARY'S UNIVERSITY POLICE DEPARTMENT IN SAN ANTONIO PARK POLICE.

CANTRELL JOINED TABC IN 1998 AND WAS ASSIGNED TO THE SAN ANTONIO OFFICE, WHERE HE CONTINUES TO SERVE TO THIS DAY.

HE ALSO WORKED ALONGSIDE THE SAN ANTONIO POLICE DEPARTMENT'S VICE UNIT, A TEMPORARY ASSIGNMENT THAT LASTED OVER 18 YEARS.

AGENT CANTRELL HAS A MASTER PEACE OFFICER, INSTRUCTOR, AND FIELD OFFICER CERTIFICATIONS.

IN 2016, HE RECEIVED AN FBI ACCOMMODATION FOR ASSISTING WITH THE HUMAN TRAFFICKING CASE THAT RESULTED IN THE RESCUE OF THREE MISSING MINORS.

AGENT CANTRELL HAS BEEN HAPPILY MARRIED TO HIS WIFE, MARY FOR SEVEN YEARS.

CONGRATULATIONS, SIR [APPLAUSE].

THANKS.

THANKS SO MUCH. WOULD YOU LIKE TO SAY ANYTHING? OH, IT'S JUST A PLEASURE TO WORK WITH ALL YOU GUYS AND HAD A GREAT TIME HERE.

AND I'M STILL GOING TO BE AROUND FOR A LITTLE BIT LONGER.

ALL RIGHT. THANK YOU.

[APPLAUSE] ALL RIGHT.

THE NEXT AGENDA ITEM WILL BE THE TRACE RECOGNITION, CHIEF SWENSON.

GOOD MORNING. CHAIRMAN. COMMISSIONERS.

FOR THE RECORD, MY NAME IS RON SWENSON.

I'M THE EXECUTIVE CHIEF OF THE ENFORCEMENT DEPARTMENT.

I WOULD LIKE TO SAY FROM THE PREVIOUS RECOGNITION, IF YOU NOTICED, 18 YEARS WAS A TEMPORARY ASSIGNMENT, RIGHT.

SO THAT IT'S NOT VERY TEMPORARY.

THAT'S AN ENTIRE CAREER.

HE HAS DONE A FANTASTIC JOB, AND WE REALLY APPRECIATE ALL OF HIS WORK.

NOW WE ARE LOOKING AT THE TRACE UNIT, A GROUP OF INDIVIDUALS WHO HAS ALSO DONE A FANTASTIC BIT OF WORK OVER THE PAST FEW YEARS.

[00:10:08]

IN 2023 THEY RECEIVED THE INNOVATIVE ALCOHOL LAW ENFORCEMENT PROGRAM OF THE YEAR AWARD FROM THE NATIONAL LIQUOR LAW ENFORCEMENT ASSOCIATION.

WHAT'S SO UNIQUE ABOUT THAT IS IT'S NOT ONLY A GROUP OF OUR PEERS IN LAW ENFORCEMENT, BUT IT'S ALSO A GROUP OF OUR PEERS THAT DO ALCOHOL ENFORCEMENT NATIONWIDE.

SO WHEN THEY LOOK AT THE JOB THAT WE'RE DOING, THEY ARE TRULY BASING IT OFF OF SIMILAR JOB DUTIES IN THEIR STATES.

SO WHEN WE'RE RECOGNIZED BY AN ORGANIZATION LIKE THIS, IT REALLY IS A AN AWARD THAT DOESN'T COME EASILY.

THEY HAVE DONE SOME FANTASTIC WORK OVER THE PAST COUPLE OF YEARS, AND TO BE RECOGNIZED NATIONALLY WAS ABSOLUTELY FANTASTIC.

NEXT SLIDE. AND THEY DIDN'T STOP THERE.

THEY WEREN'T ONLY RECOGNIZED NATIONALLY, BUT THEY WERE RECOGNIZED BY MADD, MOTHERS AGAINST DRUNK DRIVING, THE SOUTHEAST TEXAS AWARD CEREMONY FOR OUTSTANDING LAW ENFORCEMENT AGENCY OF THE YEAR AND FOR POLICY SETTER AWARD OF THE YEAR.

AND MAJOR WITTE, WHO REALLY IS KIND OF THE BRAINCHILD TO THE TRACE UNIT AND HAS DONE A FANTASTIC JOB LEADING LEADING THEM, WAS AWARDED THE DIAMOND HERO LEADERSHIP AWARD.

AND AS YOU CAN SEE, THAT'S THE GROUP OF THEM ARE RECEIVING THOSE AWARDS.

IF YOU CAN GO TO THE NEXT SLIDE, BECAUSE OBVIOUSLY THAT'S THE LEADERSHIP THAT ACCEPTED THE AWARDS.

BUT THIS IS IT'S A SMALL GROUP SPREAD OUT THROUGHOUT THE STATE.

AND THIS MAP SHOWS YOU WHERE WE ARE PUTTING OUR RESOURCES STRATEGICALLY IN THE LARGER METROPOLITAN AREAS, BUT ALSO SOME AREAS THAT WE NEED MORE COVERAGE IN.

BUT THEY ARE DOING A FANTASTIC JOB OF WORKING SMARTER, NOT HARDER, AND GETTING THE JOB DONE AS IS RECOGNIZED BY THESE AWARDS.

AND WE HAVE THEM HERE TODAY, MAJOR WITTE AND THE MAJORITY OF HIS TEAM.

I BELIEVE THERE'S JUST TWO OF THEM THAT ARE NOT HERE.

IF IT'S OKAY WITH YOU, I WOULD LIKE TO BRING THEM UP AND HAVE THEM BRING THEM UP.

YEAH, YEAH, YEAH. YOU BET.

MAJOR WITTE AND YOUR TEAM.

MAJOR, WOULD YOU LIKE TO SAY SOMETHING? I WOULD JUST LIKE TO THANK THIS TEAM UP HERE.

THESE 11 MEMBERS, TWO ARE NOT HERE TODAY, HAVE DEDICATED THEMSELVES TO THIS AGENCY AND THE STATE OF TEXAS.

AND THEY WORK 7 DAYS A WEEK, 24 HOURS A DAY TO KEEP OUR STREETS SAFER.

AND THEY ARE THE ONES THAT DO THIS JOB.

MY NAME MAY HAVE BEEN UP THERE FOR SOME THINGS, BUT THESE ARE THE FOLKS DOING THE WORK.

WE APPRECIATE THE COMMISSIONERS, THE CHAIRMAN, OUR ADMINISTRATION, THE EXECUTIVE STAFF FOR THE SUPPORT THEY GIVE US.

THEY LET US DO OUR JOB AND WE'RE BLESSED TO WORK FOR THE AGENCY.

AND I'M REALLY BLESSED TO HAVE THESE TEAM MEMBERS.

THEY ARE FANTASTIC.

THEY KNOW WHAT THEY'RE DOING. THEY'RE EXTREMELY PROFESSIONAL AND I HOPE EVERYONE APPRECIATES THEM AS MUCH AS I DO.

[APPLAUSE] IT'S INTERESTING. I HAD THE OPPORTUNITY TO TALK WITH SPEAK WITH SOME OF THE TRACE PEOPLE IN OUR DALLAS OFFICE.

[00:15:05]

WHEN COMMISSIONER BOATRIGHT AND I WERE UP THERE LAST, I GUESS, IN THE FALL I THINK IT WAS.

AND I TALKED TO ONE OF THE TRACE AGENTS, AND I SAID, YOU'RE WORKING A LOT, AREN'T YOU? AND SHE SAID, YEAH, I AM.

BUT SHE GOES, YOU KNOW, I ACTUALLY LOVE WHAT I DO, AND I THINK I'M MAKING A DIFFERENCE IN PEOPLE'S LIVES.

AND THAT'S WHY I WORK AS HARD AS I DO.

SO I THINK IT'S INCUMBENT UPON US AS COMMISSIONERS TO MAKE SURE THAT THIS AGENCY IS PROPERLY STAFFED, THAT WE HAVE THE RIGHT PEOPLE, THAT WE WORK OUR TAILS OFF TO DELIVER THIS MESSAGE TO AUSTIN, TO MAKE SURE THAT WE CONTINUE TO HAVE THE FUNDING THAT WE NEED, BECAUSE NOBODY WORKS AS HARD AS OUR PEOPLE DO IN EVERY ASPECT, FROM AUDIT TO LICENSING TO, YOU KNOW, HUMAN RELATIONS TO GOVERNMENT AFFAIRS TO MARKETING, OBVIOUSLY ENFORCEMENT. SO THAT'S OUR JOB.

OUR JOB IS TO WAVE THE FLAG AND MAKE SURE THAT THIS AGENCY CONTINUES TO BE VIEWED IN A GREAT LIGHT.

AND I KNOW I CAN SPEAK ON BEHALF OF MY FELLOW COMMISSIONERS THAT WE ARE PASSIONATE ABOUT THAT MISSION.

SO AND THIS RECOGNITION IS I MEAN, IT'S ONE THING TO HAVE US RECOGNIZE, BUT WHEN A NATIONAL GROUP, TWO NATIONAL GROUPS RECOGNIZE THIS AGENCY FOR THE WORK WE'RE DOING, THAT'S IT.

DROP THE MIC. THAT'S JUST OUTSTANDING.

ANY OTHER THOUGHTS? TOTALLY AGREE. SAID IT BETTER THAN I COULD SAY IT.

SO. ALL RIGHT.

THANK YOU ALL.

[3. Reports]

PERMIT STUDY DIRECTOR STAPLES.

THERE YOU ARE. ALL THE WAY BACK.

GOOD MORNING, MR. CHAIRMAN.

COMMISSIONERS. FOR THE RECORD, MY NAME IS JARED STAPLES, DIRECTOR OF PUBLIC AND GOVERNMENT AFFAIRS.

AND TODAY I'LL PROVIDE YOU WITH AN OVERVIEW OF THE WINERY PERMIT STUDY.

THE LEGISLATURE HAS DIRECTED TABC TO CONDUCT, ALONG WITH THE AGENCY'S EFFORTS ON THE STUDY SO FAR, AND OUR PLAN OF ACTION GOING FORWARD.

SO, AS YOU KNOW FROM OUR PRIOR DISCUSSIONS, THE NEW STATE BUDGET DIRECTS TABC TO CONDUCT A WINERY PERMIT STUDY THAT WE MUST SUBMIT TO THE LEGISLATURE NEXT AUGUST.

AND IN CONDUCTING THIS STUDY, THE AGENCY IS TO REVIEW SEVERAL THINGS, INCLUDING THE AUTHORITIES GRANTED TO WINERY PERMITS, WINE PRODUCTION BY WINERY PERMIT HOLDERS, THE CREATION OF A NEW PERMIT FOR THOSE THAT MAKE WINE OUT OF THE GRAPES THAT THEY GROW.

STATE SUPPORT FOR THE WINE INDUSTRY AND OTHER INFORMATION THE LEGISLATURE MAY FIND USEFUL IN CONSIDERING VARIOUS IMPACTS ON THE WINE INDUSTRY.

SO THIS DIRECTIVE WAS ADOPTED IN MAY OF THIS YEAR, AND TABC QUICKLY GOT TO WORK ON IT OVER THE SUMMER AND NOW INTO THE FALL.

NEXT SLIDE PLEASE.

SO THIS SUMMER, TABC MADE AN INITIAL ASSESSMENT AND DETERMINED THERE ARE THREE AREAS OR ITEMS ON WHICH THE AGENCY CAN MAKE RECOMMENDATIONS WITHIN THE WINERY PERMIT STUDIES FRAMEWORK.

AND THOSE ARE TO PROVIDE OPTIONS FOR A WINERY PERMIT OFFERED BY TABC AT A LOWER PERMIT FEE, SUGGESTING CHANGES FOR HOW THE STATE DETERMINES THE AMOUNT OF WINE, WINE MARKETING AND RESEARCH DOLLARS THAT ARE AVAILABLE FOR COLLEGES EACH YEAR, WITH THE GOAL TO CREATE A MORE STABLE, STEADY, RELIABLE STREAM OF FUNDING FOR THEM, AND TO ALSO PROVIDE RECOMMENDATIONS ON HOW THE STATE CAN CRACK DOWN ON ILLEGAL WINE SHIPMENTS COMING INTO TEXAS, WHICH NEGATIVELY IMPACTS ALL PERMIT HOLDERS THAT ARE PLAYING BY THE RULES AND HAS AN IMPACT ON ON THE REVENUE THAT TEXAS BUSINESSES AND THE STATE ITSELF RECEIVES.

SO ONCE WE HAD THESE CONCEPTS IN PLACE, WE BEGAN MEETING WITH VARIOUS STAKEHOLDERS WITHIN THE FIRM TRADE ASSOCIATIONS REPRESENTING VARIOUS SECTORS OF THE ALCOHOL INDUSTRY TO DISCUSS THESE AREAS WE'VE IDENTIFIED, ALONG WITH THE OTHER ELEMENTS OF THE WINERY PERMIT STUDY AND TO TALK ABOUT OUR TIMELINE FOR COMPLETING IT AND HOW EVERYBODY CAN ENGAGE IN THE PROCESS.

AND BASED ON THOSE MEETINGS, WE'VE ALREADY RECEIVED A LOT OF CONSTRUCTIVE FEEDBACK THAT'S NOW POSITIVELY IMPACTING HOW WE'RE DEVELOPING THIS STUDY.

NEXT SLIDE PLEASE.

SO FOR THE AGENCY TO PRODUCE A FINAL PRODUCT BY THE END OF NEXT SUMMER, WE'RE TAKING THE FOLLOWING STEPS THAT YOU SEE ON THE SCREEN BEFORE

[00:20:03]

YOU. AND YOU'LL NOTICE THE PROCESS HEAVILY RELIES ON RECEIVING INPUT FROM THE ALCOHOLIC BEVERAGE INDUSTRY.

AND THIS IS CRITICAL BECAUSE WHILE TABC CAN PROVIDE DATA AND MAKE RECOMMENDATIONS ABOUT AGENCY OPERATIONS AND THE TOOLS WE MIGHT NEED TO ADDRESS VARIOUS KNOWN ISSUES, A SIGNIFICANT PART OF THE STUDY RELATES TO PUBLIC POLICY RECOMMENDATIONS AND THE LEGAL AUTHORITIES THAT THE BUSINESSES PROVIDED TO THE BUSINESSES THAT TABC REGULATES.

AND SO WE, AS A REGULATOR, AN UNELECTED BODY OF REGULATORY OFFICIALS THAT ARE IN CHARGE OF ENFORCING THE LAW, WE HAVE TO BE CAREFUL NOT TO GET INTO THE BUSINESS OF MAKING POLICY RECOMMENDATIONS.

SO BY INCLUDING THE VARIOUS POSITIONS OF RECOMMENDATIONS FOR FROM OUR PARTNERS IN THE BUSINESS WORLD, ALONG WITH TABCS OPERATIONAL DATA AND RECOMMENDATIONS ALONG THOSE LINES, WE'RE CONFIDENT WE CAN PROVIDE A STUDY THAT WILL MEET THE LEGISLATURE'S DIRECTIVE, WHAT THEY'VE ASKED FOR, AND AND GIVE EVERYONE AN APPROPRIATE VOICE IN THIS. SO WE'RE WELL ON OUR WAY TO ACCOMPLISHING THE MISSION WE'VE BEEN CHARGED WITH THERE, AND GLAD TO TAKE ANY QUESTIONS YOU MIGHT HAVE ABOUT IT.

GREAT REPORT. THANKS.

GREAT. THANK YOU.

THANKS.

OKAY. THE NEXT AGENDA ITEM WILL BE THE FISCAL YEAR 23 FEE REVENUE DISCUSSION.

CHIEF FINANCIAL OFFICER SWANN, WELCOME.

THANK YOU SIR. GOOD MORNING ALL.

SO YEAH, I AM HERE TO PRESENT TO YOU YOUR ACTUALIZED REVENUES FOR 22 AND 23.

MY UNDERSTANDING IS THE LAST TIME THAT WE SET BEFORE YOU, WE HAD ABOUT TEN MONTHS WORTH OF DATA INTO FISCAL YEAR 2022.

AND SO THIS IS INTENDED TO SORT OF BE A CONTINUATION OF THAT CONVERSATION, TO GIVE YOU A FULL LOOK AT TWO YEARS WORTH OF DATA SO THAT WE CAN BEGIN IN EARNEST TO START THINKING ABOUT WHAT WE'RE DOING WITH OUR FEE STRUCTURE.

AND SO WHAT I'VE TRIED TO DO HERE, THIS SHOULD LOOK FAMILIAR TO YOU.

THIS IS THE WAY WE REPORT OUR REVENUES TO YOU EACH MONTH IN YOUR COMMISSIONERS REPORT.

WE'VE JUST SORT OF COMMANDEERED THAT SAME FORMAT TO JUST SHOW YOU THESE INDIVIDUAL YEARS OF 22 AND 23.

I KNOW IT'S A LOT ON ONE SCREEN.

SO THE BALANCE OF OUR PRESENTATION, WE WILL TAKE SOME TIME TO SORT OF BREAK EACH SEGMENT OF THIS SUMMARY APART.

AND SOME OF THOSE SEGMENTS ARE YOUR LICENSE AND PERMITTING FEES, YOUR MISCELLANEOUS REVENUE, YOUR TAXES.

AND THEN WE HAVE A CATEGORY WE'RE CALLING OTHER.

BUT WHILE WE'RE HERE AT THIS SORT OF AT A GLANCE LOOK, WE CAN LOOK AT THAT BOTTOM LINE AND SEE IN 2022, WE FINISHED OUT THAT YEAR WITH $381 MILLION COLLECTED IN 22.

FOR 23, WE HAD ABOUT $373 MILLION COLLECTED.

AND FOR THAT BIENNIUM THOSE TWO REVENUE FIGURES ARE $754 MILLION.

SO YOUR DECREASE INTO 23 WAS ABOUT A $7.8 MILLION DECREASE.

SO WE'RE TALKING ABOUT 1%.

SO PRETTY MUCH YOUR REVENUES HELD PRETTY CONSTANT FROM ONE YEAR TO THE NEXT.

AND NOW LET'S TAKE A LOOK AT LET'S MAKE IT A LITTLE MORE DIGESTIBLE AND START TAKING A LOOK AT EACH SEGMENT.

SO HERE'S YOUR LICENSE AND PERMITTING FEES 22 THAT WAS $101 MILLION COLLECTED FOR THAT.

AND THEN IN 23 THERE'S YOUR DECREASE TO $94 MILLION.

SO WHEN WE'RE LOOKING AT THAT FULL SUMMARY WE SAW THERE WAS ABOUT A $7.8 MILLION DECREASE AT OUR BOTTOM LINE.

WE CAN SEE NOW THAT MOST OF THAT DECREASE CAME FROM YOUR LICENSE AND PERMIT FEES.

I DON'T THINK THIS IS ANYTHING TO BE ALARMED ABOUT.

I THINK THERE'S A LONG PATTERN THAT SHOWS THE FIRST YEAR TYPICALLY HAS MORE ACTIVITY THAN THE SECOND YEAR.

SO THERE IS NATURALLY A HISTORY OF US HAVING THAT DECREASE.

BUT AGAIN, IT'S A 1% DECREASE WHEN YOU LOOK AT THE BOTTOM LINE.

AND IT GETS OFFSET. SO THAT WAS AN $8 MILLION DECREASE THAT WE'RE TALKING ABOUT TO THE LICENSE PERMITS OFFSET BY SOME INCREASES TO OUR EXPEDITED AND LATE FEES.

OUR NEXT SEGMENT THAT WE WERE TALKING ABOUT IS MISCELLANEOUS REVENUE.

SO THESE ARE YOUR ADMIN FEES, SELLER SERVER PRODUCT REGISTRATION.

IN 22 WE HAD $9.3 MILLION COLLECTED IN MISCELLANEOUS.

AND WE HAD $8.5 MILLION COLLECTED IN 23 FOR A BIENNIAL TOTAL OF $17.8 MILLION ARE A SMALL, SLIGHT REDUCTION OF ABOUT $800,000 FROM THE FIRST YEAR TO THE SECOND.

NO BIG NUMBERS THIS TIME WE SAW THAT $8 MILLION CAME FROM ONE LINE OF DATA IN FEES.

YOUR BIGGEST NUMBER IS ABOUT $400,000.

AGAIN, NOTHING THAT I WOULD BE ALARMED ABOUT AT THIS POINT.

AS A PERCENTAGE OF THE TOTAL COLLECTIONS, IT'S SMALL.

AND ALSO I THINK IT'S TYPICAL THAT WE CAN'T CONTROL THE TRAFFIC THAT'S HAPPENING ON THOSE POE ADMIN FEES.

WHATEVER TRAFFIC COMES ACROSS THE BRIDGE AND WHAT THEY HAPPEN TO COME WITH IS SORT OF OUT OF OUR CONTROL.

[00:25:02]

BUT THAT WOULD BE MY GUESS FOR WHY YOU'RE SEEING $400,000.

I HAVE A QUESTION ON THAT. SO THE POE ADMIN FEES ARE JUST SIMPLY WHAT WE ARE CHARGING PEOPLE WHO ARE BRINGING ALCOHOL AND OR TOBACCO INTO THE INTO THE STATE.

IS THAT CORRECT? THAT'S CORRECT.

YES, SIR. THE TOBACCO IS ACTUALLY A CIGARETTE TAX, WHICH YOU'LL SEE ON THE TAXES LINE.

OKAY. BUT THIS IS THIS IS THE OTHER ITEMS THAT AREN'T THE TOBACCO.

AND OH, YOU CAN SEE WE GIVE YOU A SUBTOTAL AT THE BOTTOM.

SO SO FAR WHEN YOU TALK ABOUT THOSE FEES WITH THESE MISCELLANEOUS, YOU HAD $111 MILLION IN THE FIRST YEAR, $102 MILLION IN THE SECOND YEAR FOR BIENNIAL, $213 MILLION . CAN I ASSUME THAT THE MAJORITY OF THE POE FEES COME DURING THE PAISANO SEASON, OR IS IT FAIRLY EVENLY DISTRIBUTED THROUGHOUT THE YEAR? YOU KNOW, SO I'VE LOOKED AT SOME GRAPHS, SOME LINE GRAPHS THAT SHOW ME WHAT TYPE OF COLLECTION I GET FROM MONTH TO MONTH.

AND IT'S DEFINITELY I SEE IT'S A SPIKING GRAPH.

I WILL LOOK AT THAT SPECIFIC SPECIFIC ITEM TO KNOW FOR SURE, BUT WE CAN FIND THAT OUT FOR YOU.

OKAY. THANK YOU.

OKAY. SO HERE'S YOUR TAX REVENUE.

AND SO CHAIRMAN LILLY THIS IS WHERE I WAS SAYING YOU WOULD SEE THOSE CIGARETTE TAXES THAT ARE AT THE [INAUDIBLE] BORDER THERE.

IT'S THE LAST LINE IN THIS SEGMENT.

SO YOUR AUDITS YOUR EXCISE TAXES.

CIGARETTE TAX TOTALING IN 2022 $268 MILLION.

AND THEN 2023 $268 MILLION.

SO THIS HELD PRETTY CONSTANT.

OUR TAX REVENUE A DECLINE OF $77,000 COMBINED.

NOT A LOT.

AND THEN FINALLY, OUR LAST SEGMENT WE WANTED TO SHOW YOU HERE IS THE OTHER REVENUE.

YOU HAVE DEPOSITS TO WHAT WE CALL SUSPENSE.

AND THEN YOU HAVE YOUR CREDIT CARD FEES.

THE DEPOSIT TO SUSPENSE IS KIND OF JUST THE HOLDING SPOT.

SO THAT YOU ALL KNOW WE HAVE TO FIGURE OUT WHAT THE FINAL DISPOSITION WILL BE FOR SOME REVENUES THAT ARRIVE.

AND UNTIL WE DO THAT, IT SITS HERE IN SUSPENSE.

BUT EVENTUALLY, WHEN WE KNOW THAT FINAL DISPOSITION, IT'LL MOVE UP INTO ONE OF THOSE THREE SEGMENTS THAT WE JUST COVERED.

LICENSE PERMITS, MISCELLANEOUS, OUR EXCISE TAX.

MY PREDICTION IS, IS MOST OF THAT IS GOING TO BE EXCISE TAX.

THAT'S THE TAXES AREA IS WHERE THEY'LL GO YOUR CREDIT CARD AND CONVENIENCE FEES.

THOSE ARE NOT COLLECTED BY US.

I MEAN THE TRANSACTIONS HAPPEN AND THEY CYCLE THROUGH US, BUT THEY END UP GETTING SENT OFF TO DIR FOR DOLLARS, PERCENTAGE OF RUNNING THE CREDIT CARD MACHINE, BASICALLY.

AND THEN THEY'LL ALSO GO TO NIC USA FOR THEIR PART IN PROCESS.

AND SO YOUR TOTAL REVENUE FROM ALL OF THOSE SEGMENTS, THERE'S YOUR ONCE AGAIN, FROM THAT SUMMARY PAGE, THERE'S YOUR $381,000,022.

THERE'S YOUR $373,000,023.

AND THERE'S THAT $7.8 YEAR OVER YEAR DECLINE INTO 2023.

SO NOW THIS IS THAT FOUNDATION THAT WE WERE TALKING ABOUT.

WE'VE SHOWN YOU NOW A FULL TWO YEARS, 24 MONTHS WORTH OF COLLECTION ACTIVITY.

THIS IS CLEARLY NOT GOING TO BE THE END.

YOU SEE WE HAVE SOME MONEY IN SUSPENSE THAT WE HAVE TO FIGURE OUT.

SO IF WE SHOW YOU SOME OF THESE NUMBERS AGAIN IN THE FUTURE, THEY MAY BE SUBJECT TO SOME CHANGE FOR SOME OF THE ACTUALIZING THAT STILL HAPPENS AFTER THIS POINT.

BUT THIS IS THAT FOUNDATION.

SO WHERE DO WE GO FROM HERE? I WANTED TO GIVE YOU A SMALL GLIMPSE INTO WHAT WE'RE GOING TO DO WITH THIS DATA.

WE'RE GOING TO COMPARE IT TO THE TO THE PRIOR BIENNIUM.

AND THE PRIOR BIENNIUM MIGHT BE SIGNIFICANT CONSIDERING THAT THAT WAS PRE SOME OF OUR FEE STRUCTURE CHANGES.

AND SO NOW YOU CAN SEE FROM 2021 TO 22-23 WHERE WE'VE GOT THIS NEW STRUCTURE WHAT'S TRANSPIRED.

SO THIS TOP BLOCK OF CHART INFORMATION IS JUST GIVING YOU THE DOLLARS FOR THOSE INDIVIDUAL YEARS.

AND THEN AT THE BOTTOM BLOCK WE JUST TRIED TO TAKE THOSE SAME DOLLARS BUT GIVE YOU SOME DELTA INFORMATION AS A DOLLAR AND AS A PERCENTAGE.

SO I THINK THE BOTTOM RIGHT QUADRANT THERE IS WHAT YOU'LL HAVE THE GREATEST INTEREST IN, BECAUSE THAT'S GOING TO SHOW YOU THE DOLLAR CHANGE GOING INTO 22 AND 23 VERSUS THE PRIOR BIENNIUM.

IT'LL SHOW YOU THE PERCENTAGE CHANGE OF 22-23 FROM THE PRIOR BIENNIUM.

SO LET'S JUST POINT OUT SOME NUMBERS IN THAT BOTTOM QUADRANT.

THAT BOTTOM RIGHT QUADRANT YOU CAN SEE 22-3 COLLECTED $78.6 MILLION, MORE THAN 20-21 DEAD FROM THOSE SAME REVENUE COLLECTION ACTIVITIES.

AS A PERCENTAGE, THAT'S ABOUT 11.6% GROWTH.

BUT IF WE START LOOKING AT THE INDIVIDUAL LINES, WE ACTUALLY SEE THAT THE BIGGEST DOLLAR CHANGE IS COMING FROM OUR LICENSE AND PERMIT FEES.

THERE'S A $49.

$49 MILLION INCREASE IN THAT BIENNIUM TO 22-23.

AND THAT'S ABOUT A 33.7% CHANGE IN OUR INCREASE FROM THE PRIOR BIENNIUM RIGHT THERE ALONE.

YOUR OTHER NUMBER THAT'S BIG IS FROM TAXES, BUT IT'S A SMALL PERCENTAGE OF WHAT TAXES ARE.

SO THERE WAS A $23 MILLION CHANGE IN THE TAX REVENUE.

BUT THAT'S ONLY THAT'S LESS THAN 5%.

[00:30:03]

I WOULD POINT OUT ONE OTHER THING.

NOT IN THAT BOTTOM RIGHT QUADRANT, BUT IN THAT BOTTOM TABLE ON THAT LEFT SIDE, YOU'LL SEE THAT WE DID PROVIDE YOU WITH SOME DOLLAR CHANGE AND PERCENTAGE CHANGES, BUT WE'RE NOT SHOWING YOU 18 AND 19.

SO YOU COULD BACK YOUR WAY INTO WHAT WAS HAPPENING IN 18 AND 19.

WE JUST DIDN'T WANT TO SHOW A BUNCH OF NAS IN THOSE TWO COLUMNS, BUT THAT'S WHAT WE'RE DOING THERE.

SO DON'T BE THROWN OFF THAT YOU'RE NOT SEEING 18 AND 19 NUMBERS.

AND WITH THAT, I'LL BE HAPPY TO TAKE ANY QUESTIONS IF YOU HAVE ANY.

IT'S VERY GOOD. THANK YOU.

THANK YOU. COMMISSIONER, WE'RE GOING TO TAKE ALL THIS DATA AND GO BACK AND REVIEW OUR LICENSE AND PERMIT FEES AS WE'VE BEEN DISCUSSING.

ACTUALLY, HE REMINDED ME.

I HAVE ONE MORE SLIDE. I WAS WAITING, I WAS WAITING.

THANK YOU. THANK YOU FOR THE ASSIST.

I WANTED TO SEE IF HE WAS.

YOU PASSED. YOU PASSED THE TEST.

ALL RIGHT. YEAH. WE DO HAVE SOME NEXT STEPS.

SO WE GAVE YOU THAT SMALL PREVIEW OF WHAT WE AND THE BSD ARENA ARE GOING TO LOOK AT WHEN WE'RE LOOKING AT THESE NUMBERS AND COMPARING THEM.

BUT THEN WE HAVE A BIGGER TASK AT HAND, WHICH IS TO CONDUCT A THOROUGH REVIEW.

SO WE'LL EVALUATE THOSE CURRENT FEES.

WE'LL EVALUATE THE PROCESS FOR JUST SETTING FEES.

AND THEN WE WILL RETURN TO YOU AND WE'LL WE'LL DEDICATE ANOTHER SEGMENT OF TIME TO PROVIDE AN UPDATE TO YOU AT THE NEXT COMMISSION MEETING.

OKAY. AND NOW I'VE LEFT TIME FOR QUESTIONS IF THERE ARE ANY.

YEAH, I DON'T REALLY THINK.

FIRST OF ALL, THANKS A LOT. APPRECIATE IT.

IT'S A LOT OF A LOT OF DATA.

I'VE BEEN WAITING ON IT AND IT WAS WORTH THE WAIT.

THANK YOU. ALL RIGHT.

VERY GOOD. I JUST HOPE THAT AS WE GO THROUGH THE PROCESS OF EVALUATING OUR FEE SETTING STRUCTURE, THAT WE THINK ABOUT OUR ADMINISTRATIVE COSTS RATHER THAN A REVENUE TARGET.

IF WE KIND OF PUT THE CART FOR COURSE OF 2 TO 3 YEARS AGO AND, AND HAD A REVENUE TARGET AND TRIED TO MEET IT AND THEN WE MET IT AND OVER OVERSHOT IT BY TENS OF MILLIONS OF DOLLARS.

SO YOU KNOW, THAT'S THAT'S NOT NOT OUR MONEY.

WE'RE NOT ENTITLED TO IT.

WE'RE HERE TO SERVE PEOPLE AS [INAUDIBLE] COMMISSIONERS WOULD AGREE.

WE SHOULD CHARGE PEOPLE OUR COSTS FOR THE SERVICES THAT WE PROVIDE.

WE SHOULD NOT TRY TO MAKE MONEY THROUGH OUR FEES THAT WE JUST PILE UP AND GET BACK TO THE STATE AND HOPE THEY GIVE US, GIVE BACK TO US IN SOME FORM FTES OR NEW CARS OR SOMETHING LIKE THAT.

I DON'T THINK THAT'S HOW GOVERNMENT SHOULD WORK.

WE HAVE THE RIGHT TEAM IN PLACE NOW.

YOU, THOMAS, JAMES, EVERYBODY.

WE'VE GOT THE RIGHT PEOPLE TO DO IT RIGHT AND I LOOK FORWARD TO SEEING WHAT HAPPENS.

THANK YOU ALL, SIR.

THANK YOU. YOU'LL CONTINUE TO PROVIDE THE BIENNIAL COMPARISONS EVEN IF WE DO AN ADJUSTMENT OR WE CHANGE OUR POLICY WITH REGARDS TO FEES, BECAUSE THE POLICY WAS A REVENUE TARGET.

I'M IMAGINING THAT WE'RE NO LONGER GOING TO GO TO A REVENUE TARGET, BUT YOU'RE WORKING ON WHATEVER THAT POLICY WILL LOOK LIKE AS WE GO TO THE NEXT MEETING.

I WOULD THINK THAT WHATEVER WE DO ADOPT, WE MAKE A CHANGE FROM REVENUE TARGET.

WE'LL STILL GO ON AND WANT TO SEE THIS BIENNIAL COMPARISON TO MAKE SURE THAT THAT POLICY IS NOW WORKS.

RIGHT, BECAUSE WE'VE GOT TO STILL MEET A NUMBER, SOME KIND OF NUMBER.

OKAY. YES, SIR. THANKS AGAIN.

ALL RIGHT. THANK YOU.

WELL DONE. NEXT AGENDA ITEM WILL BE CUSTOMER SERVICE UPDATE, CHIEF MACEYRA.

GOOD MORNING. CHAIRMAN.

COMMISSIONERS. FOR THE RECORD, MY NAME IS ANDREA MACEYRA.

I'M THE CHIEF OF REGULATORY AFFAIRS.

THIS MORNING, I'LL BE TALKING ABOUT PHONE QUEUE INITIATIVE IMPLEMENTED BY THE LICENSING DEPARTMENT TO BETTER IMPROVE OUR BUSINESS OPERATIONS.

THIS PILOT PROGRAM WAS PROMPTED BY A VALID CONCERN RAISED BY OUR LICENSING STAFF.

THEY WERE EXPERIENCING LARGE VOLUMES OF PHONE CALLS, WHICH CREATED SIGNIFICANT DISTRACTIONS WHICH IMPACTED THEIR PRODUCTIVITY WHILE IN PROCESSING APPLICATIONS.

WE ALWAYS FELT THAT IF OUR LICENSING STAFF WAS ABLE TO SEPARATE APPLICATION PROCESSING AND PHONE DUTY COVERAGE, IT WOULD GREATLY ENHANCE OUR CUSTOMER SERVICE EFFORTS AND PRODUCTIVITY.

WE DOCUMENTED CALLS FOR TWO WEEKS TO DETERMINE PARAMETERS FOR THE PROGRAM.

AFTER REVIEW, A SCHEDULE WAS CREATED REQUIRING EACH DIVISION.

THE PHONE COVERAGE FOR TWO DAYS A WEEK, ALLOWING THE OTHER DAYS TO PROCESS APPLICATIONS.

I WOULD LIKE TO POINT OUT THAT THE PHONE QUEUE INITIATIVE IS JUST FOR THE LICENSING DEPARTMENT AND SEPARATE FROM THE OVERALL AGENCY PHONE QUEUE, WHICH KEVIN PRESENTED ON A FEW MONTHS AGO.

I'M TALKING ABOUT THE PHONE CALLS THAT ARE JUST COMING STRAIGHT INTO THE LICENSING QUEUE.

NEXT SLIDE. SOME KEY CHANGES AND OUTCOMES, WE FOUND, WAS OUR ABILITY TO FOCUS ON SPECIFIC TASKS WITHOUT THE NEED TO SWITCH BETWEEN PHONES AND PROCESSING.

AS A RESULT, THIS HAS BOOSTED OVERALL PRODUCTIVITY AND MORALE.

CUSTOMER SERVICE SATISFACTION INCREASED AND THE NUMBER OF DAYS TO APPROVE APPLICATIONS WERE REDUCED.

[00:35:04]

SO THE OUTCOME OF THE PROGRAM WAS VERY SUCCESSFUL, AS YOU CAN SEE, IN THREE MONTHS, THE AVERAGE DAYS DROPPED BY TEN DAYS WHILE ISSUING TWICE AS MANY APPLICATIONS.

THIS POSITIVE IMPACT TO THE PROGRAM NOT ONLY BENEFITS OUR LICENSING STAFF, BUT ALSO ENHANCES THE OVERALL QUALITY OF CUSTOMER SERVICE FOR OUR CUSTOMERS BY GETTING THEM INTO BUSINESS QUICKER. THANK YOU.

I CAN TAKE ANY QUESTIONS.

THAT'S OUTSTANDING.

WHAT? FROM TWO MONTHS TO 25 DAYS.

HE'S GREAT.

WELL, THAT'S VERY IMPRESSIVE.

YES. JUST BY SHIFTING PHONE COVERAGE AND PROCESSING LESS DISTRACTIONS.

WELL DONE. THANK YOU.

THANK YOU.

NEXT AGENDA ITEM WILL BE AIMS UPDATE.

DEPUTY DIRECTOR SANCHEZ.

GOOD MORNING. 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 THE BUSINESS TRANSACTIONS CONDUCTED SINCE AIMS WENT LIVE.

AS OF OCTOBER 15TH, 2023, WE'VE TOTALED MORE THAN 1.6 MILLION INDUSTRY LOGINS, WHICH CONTINUES TO SHOW THE USAGE OF THE SYSTEM.

THERE HAVE BEEN APPROXIMATELY 31,000 ORIGINAL APPLICATIONS SUBMITTED, 60,000 RENEWAL APPLICATIONS, 58,000 PRODUCT REGISTRATIONS, AND 16,000 ACCOUNT BUSINESS TRANSACTIONS.

AND THOSE TRANSACTIONS ARE CHANGE OF TRADE NAME, CHANGE OF LOCATION, OR OTHER SELF SERVICE TRANSACTIONS.

CURRENTLY WE'RE WORKING ON COMPLETING PHASE TWO SCOPE.

SINCE THE LAST UPDATE NO NEW FUNCTIONALITY HAS BEEN IMPLEMENTED FROM PHASE TWO.

WE'RE CONTINUING TO WORK ON THE IN PROGRESS SCOPE ITEMS, AND WE ANTICIPATE TO HAVE THE FOLLOWING ITEMS IMPLEMENTED IN FEBRUARY.

AND THOSE ITEMS WOULD BE THE ENFORCEMENT UPDATES, THE LEGAL CASE MANAGEMENT, AND THE INTERNAL USER INTERFACE UPDATE.

AND THEN SHORTLY THEREAFTER, WE WILL FOLLOW UP WITH AN IMPLEMENTATION FOR EXPUNGEMENT AND THE OPEN RECORDS FUNCTIONALITY.

THROUGH THE SECOND PHASE OF AIMS, WE'VE FACED CHALLENGES AND ARE CURRENTLY FACING IMPACTS OF THOSE CHALLENGES.

FOR EACH CHALLENGE OR REALIZED RISK, WE FOCUS ON THE HIGH IMPACT AND HIGH PROBABILITY ITEMS. THIS APPROACH HAS ALLOWED AIMS TO CONTINUOUSLY BE DEVELOPED BY CONSTANTLY EVALUATING RISK, EVALUATING IMPACT ON STAFF AND INDUSTRY, AND CONSIDERING BUDGET LIMITATIONS. SO THE CURRENT KEY CHALLENGES RELATED TO THE PHASE TWO IN PROGRESS ITEMS ARE THE DESIGN REQUIREMENTS AND EXPECTATIONS.

THERE ARE OPPORTUNITIES FROM BOTH THE VENDOR AND TABC TO IMPROVE ON THIS ITEM.

DEVELOPMENT QUALITY AND VENDOR QUALITY ASSURANCE TESTING.

WE'VE TAKEN ACTIONS TO ADDRESS THE CHALLENGES WE'RE CURRENTLY EXPERIENCING.

VENDOR CONDUCTED SHADOW SESSIONS WITH THE END USERS TO UNDERSTAND DEFECTS FIRSTHAND.

EXECUTIVE MET WITH THE VENDOR TO DISCUSS THOSE CHALLENGES ENCOUNTERED, AND THE VENDORS REVISING THEIR QUALITY ASSURANCE PLAN AND PROVIDING TRANSPARENCY.

REVISING THE REQUIREMENTS AND DESIGN PROCESS FOR PHASE THREE IS A BIG CHANGE THAT WE'RE LOOKING FORWARD TO IMPLEMENTING AS WE BEGIN PHASE THREE, AND EVEN MAKING THAT RETROACTIVE FOR THE END OF PHASE TWO, AS WELL AS WE MOVE TO EXPUNGEMENT AND OPEN RECORDS.

JUST SOME FOLLOW UP ON THE TRANSITION ITEMS THAT WE PRESENTED LAST TIME.

SO WE'RE MAKING CHANGES TO OUR INTERNAL PROCESSES TO ENSURE THE SUCCESS OF AIMS FOR STAFF AND INDUSTRY.

WORKING ON FINALIZING PHASE TWO SCOPE AS JUST PRESENTED, CREATING AN INCLUSIVE COUNSEL FOR ALL IT PROJECT GOVERNANCE CALLED THE TECHNOLOGY PROJECT OVERSIGHT COUNCIL.

THIS COUNCIL REVIEWS, PRIORITIZES AND MAKES DECISIONS ON ALL TECHNOLOGY PROJECTS SCOPE, INCLUDING AIMS. THIS COUNCIL HAS ALREADY FOCUSED ON AND PRIORITIZED THE PHASE THREE SCOPE OF TEAMS. WE ALSO CONTINUE TO REVISE OUR VENDOR MANAGEMENT, THANKS TO THE INTERNAL AUDITS AND REPORTS THAT YOU ALL HEARD LAST TIME AT THE LAST MEETING.

WE CONTINUE TO UPDATE THE CONTRACTS AND PROCESSES WITH OUR VENDOR TO ENSURE CLEAR UNDERSTANDING AND EXPECTATIONS.

WE'RE ALSO REVISING THE COMMUNICATION PLAN TO CLEARLY IDENTIFY WHAT WILL BE COMMUNICATED, WHO WILL BE COMMUNICATED TO, WHO OR TO AND BY WHOM FOR BOTH STAFF AND INDUSTRY. AND THEN WE'RE IDENTIFYING FUNCTIONALITY ENHANCEMENTS.

SO WE'RE WORKING WITH THE BUSINESS UNITS TO IDENTIFY GAPS IN FUNCTIONALITY NECESSARY TO IMPROVE PROCESS PERFORMANCE.

THIS CONCLUDES MY PRESENTATION AND I'M HAPPY TO ANSWER ANY QUESTIONS.

YOU MAY HAVE SAID THIS AND I MAY HAVE MISSED IT.

THE OVERSIGHT COUNCIL.

WHAT IS THAT COUNCIL? WHO REPRESENTS THE OVERSIGHT COUNCIL? SURE. SO WE HAVE THE EXECUTIVE DIRECTOR, THE DEPUTY EXECUTIVE DIRECTOR, THE EXECUTIVE CHIEF OF ENFORCEMENT, THE EXECUTIVE CHIEF OF REGULATORY AFFAIRS, THE CFO, THE CIO.

AND THEN WE HAVE SOME SUPPORT STAFF AS WELL.

[00:40:03]

OKAY. KNOW THAT THAT COUNCIL WOULD NEED INDUSTRY REPRESENTATION.

THIS IS ALL JUST INTERNAL, RIGHT? IT'S PRIORITIZING SORTING THROUGH WHAT NEEDS TO BE DONE.

IS IT JUST FOR AIMS OR IS IT IS THIS A COUNCIL THAT WOULD BE ANY NEW TECHNOLOGY IMPLEMENTATION.

IT'S A WAY TO ENSURE WE'RE MANAGING THE PROJECT.

EVERYBODY IS ON THE SAME PAGE, AND WE'RE NOT WALKING AWAY WITH ONE PERSON THINKING ONE THING AND SOMEBODY ELSE THINKING SOMETHING ELSE.

GOTCHA. OKAY. VERY GOOD.

THAT'S GOOD. MR. ADKINS, DO YOU HAVE ANY COMMENTS OR QUESTIONS FROM EL PASO? NO. UM, YOU KNOW, THEY'VE VERY MUCH BEEN KEEPING ME IN THE LOOP AND INFORMED.

I'VE MET WITH THE VENDOR, BEEN ASSISTING HOWEVER WE CAN.

UM, AND THEN WE WILL BE FOLLOWING UP WITH THE IT MAJOR PROJECTS COMMITTEE, WHICH WILL HAVE VENDOR INPUT INTO THIS.

UM, NOT THE LEVEL OF DETAIL AND WEEKLY OVERSIGHT THAT THE TECHNOLOGY PROJECT OVERSIGHT COUNCIL WILL BE PROVIDING.

BUT CERTAINLY, UM, AS WE'RE MOVING INTO PHASE THREE, I'D LIKE TO HAVE A QUARTERLY MEETING OF THE IT MAJOR PROJECTS COMMITTEE TO BE ABLE TO HAVE THAT INDUSTRY INSIGHT AND OVERSIGHT AS WE CONTINUE TO PHASE THREE.

I HAVE A QUESTION ON.

I KNOW THAT IN THE PAST AND I'VE HEARD THIS, AND I'M NOT SURE I UNDERSTAND IT, THAT YOU SAID IN PROGRESS WE HAVE ENFORCEMENT UPDATES, LEGAL CASE MANAGEMENT, ETCETERA, OPEN RECORDS REQUESTS. SO HOW WOULD ENFORCEMENT UPDATES BE IMPLEMENTED IN AIMS? HOW DO I KNOW THAT'S BEEN A DEFICIENCY? BUT HOW WHY IS IT A DEFICIENCY AND HOW CAN IT BE USED WITHOUT GETTING TOO MUCH IN THE WEEDS? SURE. SO FROM PHASE ONE WE HAD AN IMPLEMENTATION FOR ENFORCEMENT AND IT WAS BASICALLY KEY COMPONENTS.

AND SO THERE ARE OTHER THINGS THAT NEEDED TO BE INTRODUCED TO ENSURE THAT THE ENFORCEMENT STAFF AND EVEN THE AUDIT STAFF COULD USE THAT FUNCTIONALITY FOR THEIR PROCESSES.

AND SO THAT'S WHAT THE ENFORCEMENT FUNCTIONALITY THAT WE'RE WORKING ON CURRENTLY IS TO IMPLEMENT THOSE ADDITIONAL ITEMS THAT WERE LEFT OUT FROM PHASE.

GIVE ME AN EXAMPLE.

HOW HOW WOULD AN AGENT USE AIMS. SURE. SO THEY CAN CONDUCT INVESTIGATIONS AND TRACK THOSE INVESTIGATIONS IN ONE SYSTEM VERSUS HAVING TO GO TO TWO OTHER SYSTEMS AND DO THEIR WORK IN TWO LEGACY SYSTEMS. SO THIS PUTS IT ALL IN AIMS TO DO INVESTIGATIONS, INSPECTIONS, ISSUE TRACK VIOLATIONS OR ALLEGATIONS.

THOSE TYPE OF AND WHEN.

SO IN PROGRESS MEANS WHAT EXACTLY? THAT THEY'RE IN FLIGHT.

WE WERE CURRENTLY WORKING IN UAT, IF YOU WILL.

SO WE'RE IN USER ACCEPTANCE TESTING.

WE'VE HAD TO EXTEND THAT UAT A FEW TIMES BASED ON SOME FACTORS THAT ARE CHALLENGES THAT WE'RE ENCOUNTERING.

BUT CURRENTLY WE'RE IN UAT.

SO THAT CAN BE COMPLETED IN A YEAR, SIX MONTHS.

DO YOU HAVE A? FEBRUARY IS WHEN WE'RE LOOKING TO DEPLOY THIS FUNCTIONALITY.

WE'RE JUST TRYING TO MAKE SURE WE HAVE SUFFICIENT TIME FOR THE VENDOR TO DO THEIR PART, AND THEN OUR AGENCY STAFF TO CONDUCT THEIR USER ACCEPTANCE TESTING TO ENSURE WE HAVE A GOOD SYSTEM PUTTING IN PLACE FOR DEPLOYMENT IN FEBRUARY.

OKAY. THANK YOU.

EXCELLENT. THANK YOU.

THANKS. THANK YOU.

OUR TICKETS ARE FALLING ALL AROUND, ON OR AROUND.

YEAH. NEXT AGENDA ITEM IS PUBLIC COMMENT.

[4. Public Comment]

GENERAL COUNCIL PERSON DO WE HAVE ANYONE SIGNED UP? WE DO, SIR KELSEY [INAUDIBLE] WITH THE TEXAS RESTAURANT ASSOCIATION AND SHE IS ONLINE.

YOU ARE WELCOME MA'AM.

THANK YOU.

HOPEFULLY Y'ALL CAN HEAR ME. OKAY.

I'M SORRY. I'M IN A VERY DARK HOTEL ROOM IN ARIZONA FOR A CONFERENCE, SO BEAR WITH ME HERE.

AND THANK YOU FOR THE CHANCE TO SPEAK TODAY.

MY NAME IS KELSEY ERICKSON [INAUDIBLE].

I'M THE CHIEF PUBLIC AFFAIRS OFFICER FOR THE TEXAS RESTAURANT ASSOCIATION.

THE TRA JUST WANTED TO FLAG ONE OF THE RULE PROPOSALS BEFORE YOU TODAY.

AND WE HAVE SIGNIFICANT CONCERNS WITH THE CURRENT DRAFT OF THE PROPOSED AMENDMENTS TO RULES 50.436 AND 50.29.

THIS IS THE ONE THAT DEALS WITH THE OPIOID TRAINING, AND WE'RE CONCERNED THE CURRENT VERSION WILL REQUIRE ALL ALCOHOL SELLER SERVER COURSES TO INCLUDE THIS OPIOID OVERDOSE TRAINING CREATED BY SENATE BILL 998.

WE ACTUALLY WORKED CLOSELY WITH SENATOR WEST, WHO AUTHORED THAT BILL, AND AT OUR REQUEST, HE REWROTE THE BILL TO ENSURE THAT RESTAURANTS AND RESTAURANT EMPLOYEES ARE EXEMPT FROM THE NEW OPIOID OVERDOSE TRAINING REQUIREMENTS.

OUR CONCERN IS THAT THE RULE IS PROPOSED TODAY, CODIFIES THE INTRODUCED VERSION OF THE BILL, AND NOT THE VERSION THAT FINALLY PASSED THE LEGISLATURE, SO WE APPRECIATE THE OPPORTUNITY TO RAISE THE CONCERN.

AND MOST IMPORTANTLY, WE STAND READY TO HELP TABC DRAFT AN ALTERNATIVE THAT ALIGNS WITH THE FINALLY PASSED VERSION OF SENATE BILL 998.

[00:45:05]

THANKS SO MUCH.

THANK YOU KELSEY. THANK YOU.

SO I'VE GOT A QUICK QUESTION.

YOU'RE SAYING THAT THE FINAL VERSION EXCLUDED RESTAURANTS? YES, EXACTLY.

THANK YOU. ABSOLUTELY.

AND AS I MENTIONED, WE WORKED CLOSELY WITH SENATOR WEST AND TO GET THAT CHANGE IN THE LAW.

SO WE JUST WANT TO MAKE SURE IT'S REFLECTED IN THE FINAL RULES AS WELL.

EXCELLENT. THANK YOU MA'AM.

THANK YOU. THANK YOU.

ALL RIGHT. NO OTHER PUBLIC COMMENT.

OKAY. THE NEXT AGENDA ITEM IS CONSIDERATION AND POTENTIAL ACTION ON PUBLICATION OF PROPOSED

[5. Rules]

AMENDED RULES 33.70-72, 33.76, 33.77 AND 33.81 EVENTS AT A TEMPORARY LOCATION, SENIOR COUNSEL CHERRY.

GOOD MORNING, CHAIRMAN. COMMISSIONERS, THANK YOU FOR HAVING US.

FOR THE RECORD, I'M MATTHEW CHERRY, SENIOR COUNSEL FOR TABC.

SO THE FIRST SET OF RULES UP FOR CONSIDERATION TODAY ARE PROPOSED AMENDMENTS TO CHAPTER 33, WHICH, LIKE YOU JUST SAID, PERTAIN TO TEMPORARY EVENTS.

THE AMENDMENTS PRIMARILY IMPLEMENT SENATE BILL 926, WHICH RELATED TO TEMPORARY EVENTS CONDUCTED BY MIXED BEVERAGE PERMIT HOLDERS AT CERTAIN RACING EVENTS.

AND SENATE BILL 1375, WHICH RELATES TO PROVIDING SAMPLES OF DISTILLED SPIRITS AT TEMPORARY EVENTS THAT ARE CONDUCTED BY THE HOLDER OF A DISTILLED DISTILLERS AND RECTIFIERS PERMIT. THE AMENDMENTS TO 33.72, 33.77 SUBSECTION F AND 33.81 AUTHORIZE TEMPORARY EVENTS AT CERTAIN RACING FACILITIES TO BE HELD FOR MORE THAN FOUR CONSECUTIVE DAYS.

CLARIFY THE PERMITS USE RECORD KEEPING AND REPORTING REQUIREMENTS FOR THOSE EVENTS, AND CLARIFY WHERE MIXED BEVERAGE PERMITTEES MUST PURCHASE WINE AND MALT BEVERAGES FOR EVENTS THAT ARE HELD OUTSIDE THE COUNTY OF THE HOLDER'S PRIMARY PREMISES.

THE AMENDMENTS TO 33.70.

33.71, 33.76 AND 33.77 SUBSECTION D ADD TEMPORARY EVENTS CONDUCTED BY DISTILLERS AND RECTIFIERS PERMIT TO THE TEMPORARY EVENT RULES.

ACKNOWLEDGE THAT CERTAIN TEMPORARY EVENTS ARE ELIGIBLE FOR FILE USE, EVEN IF SPONSORED BY A WINERY OR A DISTILLERY.

ALLOW DISTILLERS TO PROVIDE DISTILLED SPIRIT SAMPLES AT TEMPORARY EVENTS THROUGH THE FILE AND USE PROCESS, WITHOUT HAVING TO OBTAIN ANY TEMPORARY EVENT APPROVAL.

AND CLARIFY THE REQUIREMENTS FOR VERIFYING THE WET DRY STATUS OF AN EVENT LOCATION FOR ALL TEMPORARY EVENTS CONDUCTED BY ANY LICENSE OR PERMIT HOLDER THAT IS AUTHORIZED TO HAVE OR HOLD A TEMPORARY EVENT.

STAFF DID PRESENT THE PROPOSED AMENDMENTS AT A STAKEHOLDER MEETING ON OCTOBER 5TH, 2023, AND BASED ON THE FEEDBACK THAT WE RECEIVED FROM INDUSTRY AT THE STAKEHOLDER MEETING, WE HAVE MADE SOME ADDITIONAL AMENDMENTS TO THE RULES THAT ARE IN FRONT OF YOU RIGHT NOW.

AND THOSE CHANGES ACTUALLY JUST PERTAIN TO THE FILE AND USE PROCESS FOR DISTILLED SPIRITS SAMPLES.

AND I'M HAPPY TO ANSWER ANY QUESTIONS THAT YOU HAVE.

YOU SAID RACING.

DID I UNDERSTAND. YES. THAT CERTAIN RACING FACILITIES.

YEAH. IT'S A SPECIAL TYPE OF TEMPORARY EVENT UNDER THE CODE.

AND IF THE RACING FACILITY MEETS THE KIND OF THE REQUIREMENTS FOR THE SEATING CAPACITY, THEN THEY CAN HAVE A CERTAIN MIXED BEVERAGE PERMIT HOLDERS CAN OBTAIN A THE AUTHORITY TO CONDUCT A TEMPORARY EVENT AT THAT RACING FACILITY.

I BELIEVE RIGHT NOW IT WOULD UNDER THE UNDER THE REQUIREMENTS BECAUSE F1 HAS MORE.

WELL IT'S A HIGHER DENSITY.

IT'S A HIGHER AMOUNT THAN THE MINIMUM SEATING CAPACITY IN THE LAW.

OKAY. COMMENTS.

ALL RIGHT. THANK YOU. I MOVE TO APPROVE PUBLICATION OF PROPOSED AMENDED RULES 33.70-72, 33.76, 33.77 AND 33.81 . EVENTS AT A TEMPORARY LOCATION IS RECOMMENDED BY STAFF.

IS THERE A SECOND? SECOND. COMMISSIONER MACK.

THANK YOU SIR. SECOND WE'LL NOW VOTE.

MOTION IS APPROVED.

NEXT GEN ITEM IS CONSIDERATION OF POTENTIAL ACTION ON PUBLICATION OF PROPOSED AMENDED RULE 41.25, PROVIDING SAMPLES, DISTILLERS AND RECTIFIERS PERMIT. MATT DAMON PLEASE, SIR.

THANK YOU, MR. CHAIRMAN. GOOD MORNING, COMMISSIONERS, DIAMOND.

SORRY DID I CALL YOU MATT DAMON.

CLOSE RESEMBLANCE TO WHAT'S ON YOUR MIND? IT'S NOT THE FIRST TIME.

SO FOR THE RECORD, MY NAME IS MATT DIAMOND.

[00:50:06]

I'M AN ATTORNEY WITH TABC'S GENERAL COUNSEL DIVISION.

REGARDING AGENDA ITEM 5.2.

STAFF IS RECOMMENDING, AMENDING, RECOMMENDING, AMENDING ADMINISTRATIVE RULE 41.25, RELATING TO THE SAMPLING OF DISTILLED SPIRITS BY DISTILLERY AND RECTIFIER [INAUDIBLE]. THE PROPOSED CHANGES IMPLEMENT LEGISLATION RELATED TO DISTILLED SPIRITS, SAMPLINGS AND TASTINGS AT TEMPORARY EVENTS, AND ENSURE THAT THE CURRENT RULES ALIGN WITH NEWLY ENACTED LAWS.

THESE RECOMMENDED CHANGES ARE FOCUSED ON TWO PRIMARY PURPOSES.

THEY AMEND THE EXISTING RULE TO ALLOW [INAUDIBLE] TO PROVIDE CONSUMERS WITH SPIRIT SAMPLES AT TEMPORARY EVENTS, AND CLARIFIES THAT DISTILLED SPIRITS TAKEN FROM [INAUDIBLE] INVENTORY FOR A SAMPLING OR TASTING AT A TEMPORARY EVENT ARE SUBJECT TO EXCISE TAXES.

TABC DID POST PROPOSED RULE LANGUAGE FOR COMMENT IN ADVANCE OF A STAKEHOLDER MEETING HELD ON OCTOBER 5TH.

TABC DID NOT RECEIVE ANY COMMENTS OR QUESTIONS RELATED TO THE PROPOSED AMENDMENT.

THAT'S ALL I HAVE.

IF YOU HAVE ANY QUESTIONS, I'D BE HAPPY TO ANSWER THEM.

COMMENTS QUESTIONS.

OKAY, I MOVE TO APPROVE PUBLICATION OF PROPOSED AMENDED RULE 41.25 PROVIDING SAMPLES DISTILLERS AND RECTIFIERS PERMIT AS RECOMMENDED BY STAFF.

IS THERE A SECOND? SECOND COMMISSIONER MACK, WE HAVE A SECOND.

WE'LL NOW VOTE.

ALL OF OUR VOTES HAVE BEEN RECORDED.

THE MOTION IS APPROVED.

THE NEXT AGENDA ITEM IS CONSIDERATION AND POTENTIAL ACTION ON PUBLICATION OF PROPOSED AMENDED RULE 45.117 GIFTS AND ADVERTISING SPECIALTIES.

MATT DIAMOND.

THANK YOU, MR. CHAIRMAN.

FOR THE RECORD, MATT DIAMOND, ONCE AGAIN, ATTORNEY WITH GENERAL COUNSEL DIVISION.

WITH REGARD TO THIS AGENDA ITEM, STAFF IS RECOMMENDING AMENDING ADMINISTRATIVE RULE 45.117 RELATING TO ADVERTISING SPECIALTIES PROVIDED TO RETAILERS BY CERTAIN [INAUDIBLE].

CURRENTLY, THE AMOUNT OF ADVERTISING SPECIALTIES IS ALLOWED BY LAW IS SET IN RULE.

STAFF RECOMMENDS AMENDING THIS RULE TO ALLOW THE EXECUTIVE DIRECTOR TO SET THAT AMOUNT BY ORDER, RATHER THAN THROUGH ADMINISTRATIVE RULEMAKING.

STAFF BELIEVES THAT THIS PROPOSED CHANGE MORE CLOSELY FOLLOWS THE WORDING OF THE STATUTORY LANGUAGE FOUND IN ALCOHOLIC BEVERAGE CODE SECTION 102.07 B, AND ALLOWS FOR MORE PROMPT AGENCY RESPONSE.

STAFF DID SUBMIT THE PROPOSED AMENDMENT AT A STAKEHOLDER MEETING HELD ON OCTOBER 5TH.

TABC DID RECEIVE ONE QUESTION.

NO COMMENTS.

THE QUESTION WAS IN REGARDS TO HOW OFTEN TABC WOULD BE AMENDING THIS ADVERTISING SPECIALTY AMOUNT.

THE QUESTION WAS ANSWERED BY CITING THE ADMINISTRATIVE CODE PROVISION, WHICH SAYS NOT MORE THAN ONCE PER YEAR.

THIS AMOUNT WOULD BE CHANGED.

AND THAT WAS THE ONLY COMMENT OR QUESTION.

AND THAT'S ALL I HAVE.

GENTLEMEN, HAPPY TO ANSWER ANY QUESTIONS.

COMMENTS. QUESTIONS? NONE. OKAY.

I MOVE TO APPROVE PUBLICATION OF PROPOSED AMENDED RULE 45.117 GIFTS AND ADVERTISING SPECIALTIES AS RECOMMENDED BY STAFF.

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

WE WILL NOW VOTE.

ALL THE VOTED VOTES HAVE BEEN RECORDED, THE MOTION IS APPROVED.

NEXT AGENDA ITEM IS CONSIDERATION AND POTENTIAL ACTION ON PUBLICATION OF PROPOSED AMENDED RULES 50.3-50.6 AND 50.29 .

ALCOHOLIC BEVERAGE SELLER SERVER AND DELIVERY DRIVER TRAINING.

SENIOR COUNCIL CHAIR, IF YOU PLEASE, SIR.

YES. SO THIS IS THE LAST SET OF RULES UP FOR CONSIDERATION TODAY.

AND AS YOU JUST STATED, THESE ARE PROPOSED AMENDMENTS TO CHAPTER 50, WHICH IMPLEMENT SENATE BILL 998 THAT REQUIRED TABC TO DEVELOP A TRAINING PROGRAM ON THE SIGNS AND SYMPTOMS OF AN OPIOID RELATED DRUG OVERDOSE AND THE ADMINISTRATION OF AN OPIOID ANTAGONIST.

THE AMENDMENT TO 50.3 SIMPLIFIES THE GENERAL PROCESS FOR AGENCY UPDATES TO SELLER SERVER, TRAINING, CURRICULUM, AND WHOLE, AND THE AMENDMENTS TO 50.4, 50.5, 50.6, AND 50.29 REQUIRE THE OPIOID RELATED TRAINING TO BE INCLUDED IN THE MANDATORY COURSE CURRICULUM FOR SELLER SERVER TRAINING, AND INCREASES THE MINIMUM AMOUNT OF MINUTES OF ACTIVE INSTRUCTION AND STUDENT PARTICIPATION IN THE CURRICULUM FROM 120 MINUTES UP TO 140 MINUTES TO INCORPORATE THE NEW OPIOID RELATED TRAINING.

[00:55:06]

STAFF DID PRESENT THESE PROPOSED AMENDMENTS AT A STAKEHOLDER MEETING ON OCTOBER 5TH.

WE DID HAVE SOME SOME QUESTIONS ABOUT THE RULE, BUT OBVIOUSLY TODAY WE JUST DID HAVE THE SPECIFIC COMMENT THAT WE JUST HEARD IN THE PUBLIC COMMENT SECTION.

SO WE'RE HAPPY TO TAKE THAT INTO CONSIDERATION AND MAYBE MAKING SOME CHANGES TO WHAT YOU HAVE IN FRONT OF YOU TODAY.

OKAY, COMMISSIONER BOATRIGHT.

YEAH. THANKS FOR YOUR PRESENTATION.

I THOUGHT THAT [INAUDIBLE] COMMENTS WERE EXCELLENT AND WELL TAKEN.

AND I'M GOING TO GO AHEAD AND VOTE FOR THIS.

ON THE UNDERSTANDING THAT WE TAKE HER COMMENTS TO HEART AND TRY TO MAKE SURE THAT THE RULE THAT WE END UP WITH TRACKS AS CLOSELY TO THE TEXT OF THE LEGISLATION THAT WAS ENACTED AT THE AT THE LAST LEGISLATIVE SESSION.

AND AND THAT WE COME UP WITH A RULE THAT THAT REFLECTS EXACTLY WHAT WAS PASSED AND WHAT THE STAKEHOLDERS NEED.

ABSOLUTELY. OKAY. YES, SIR.

I DON'T HAVE A PROBLEM WITH [INAUDIBLE] I DO WOULD LIKE TO SEE THE CHANGE IN THE PROCESS.

CAN YOU JUST PROVIDE US THE BILL WHEN IT WAS IN THE STAGE THAT WE HAVE OUR RULE DRAFTED AS IS, AND WHAT SENATOR WEST ACTUALLY AGREED TO IN THE ENROLLED VERSION, I'D LIKE TO SEE THE DIFFERENCES TO BETTER UNDERSTAND HOW WE GOT KIND OF SIDEWAYS ON.

YEAH. I MEAN, THAT IS A QUESTION HOW DID WE GET OFF TRACK HERE? I BELIEVE WHAT THE COMMENT IS RELATING TO IS THERE IS AN EXCEPTION IN THE FINAL ENROLLED VERSION OF THE BILL FOR RESTAURANTS TO NOT HAVE TO TAKE THE OPIOID TRAINING AND WHAT WE DO RIGHT NOW, OR WHEN WE STARTED TO PROPOSE THIS, WE KIND OF HAVE TWO SETS OF THE OPIOID TRAINING.

IT'S THE SAME CURRICULUM.

ONE PATH IS THE OPIOID TRAINING ALL ON ITS OWN AS A STANDALONE TRAINING MODULE.

AND THEN THE OTHER ONE IS WHAT'S IN THIS RULE IS WHERE WE'RE INCORPORATING THAT OPIOID TRAINING PIECE INTO THE LARGER SELLER SERVER CURRICULUM.

ONE OF THE REASONS THAT IT NEEDED TO BE STANDALONE, NO MATTER WHAT, IS BECAUSE RIGHT NOW, UNDER THE ENROLLED VERSION OF THE BILL, THE OPIOID TRAINING HAS TO BE CONDUCTED OR TAKEN ON AN ANNUAL BASIS, AND THE SELLER SERVER TRAINING IS DONE.

THAT CERTIFICATION LASTS FOR TWO YEARS.

MOST LICENSE OR PERMIT HOLDERS, ESPECIALLY ON THE RETAIL LEVEL, ARE ALREADY HAVING THEIR EMPLOYEES TAKE THE SELLER SERVER CURRICULUM BECAUSE IT DOES PROVIDE CERTAIN SAFE HARBOR AND RESTRAINED CASE OPTIONS FOR THEM.

SO BECAUSE OF THAT, WE THOUGHT IT WOULD BE A GOOD IDEA TO THEN TAKE THE OPIOID PIECE AND ADD IT INTO THAT SELLER SERVER CURRICULUM TRAINING.

AND AS OF RIGHT NOW, BASED ON THAT COMMENT, THERE SEEMS TO BE JUST SOME, SOME PUSHBACK ON ON DOING THAT, BECAUSE I GUESS I WOULD IMAGINE BECAUSE OF THE EXCEPTION FOR THE RESTAURANTS, WHICH NORMALLY WOULD NOT HAVE TO TAKE THE OPIOID TRAINING, AND IF THEY'RE HAVING THEIR EMPLOYEES TAKE THE SELLER SERVER TRAINING, THAT MEANS THAT THEY WOULD ALSO BE TAKING THE OPIOID TRAINING AS BASED ON THE LANGUAGE IN THIS TEXT, BECAUSE THAT OPIOID TRAINING WOULD BE INCLUDED IN THE SELLER SERVER CURRICULUM.

SO AS KELSEY'S STATEMENT ACCURATE THAT WE ESSENTIALLY OVERSHOT THE ENROLLED VERSION BECAUSE, WE ADDED IT TO THE OPTIONAL COURSE, WHICH THE SELLER SERVER TRAINING.

AND THAT WAS KIND OF WHAT WAS PROPOSED HERE, AS YOU CAN TAKE IT ALONE, OR IF YOU JUST WANT TO TAKE IT AS PART OF YOUR SELLER SERVER, WHICH YOU DON'T HAVE TO TAKE BY LAW, BUT A LOT OF PEOPLE CHOOSE TO DO IT.

BUSINESSES CHOOSE TO DO IT, AND WE PUT IT IN THERE AS A AS AN EXTRA.

SO BASED ON THEIR COMMENTS, WE'LL PULL IT OUT OF THAT ALTOGETHER AND JUST LEAVE THE SELLER SERVER TRAINING AS IT IS, AND THEN JUST HAVE THE STANDALONE COURSE SO THAT IT MEETS THEIR NEEDS TOO. WE WERE AWARE OF THE LEGISLATIVE CHANGES.

WE DIDN'T MISS THOSE OR ANYTHING LIKE THAT TO YOUR QUESTION . CONSIDERING THE SENSITIVITY OF THIS TOPIC AND THIS SUBJECT AND THE IMPACT THAT IT'S HAD, OBVIOUSLY, WE ARE ACUTELY FOCUSED ON ENSURING THAT THE SAFETY OF OUR CITIZENS IS PARAMOUNT AND EVERYTHING THAT WE DO, ESPECIALLY AS IT RELATES TO FENTANYL.

SO WHEN IT'S ALL DONE, ONCE THIS IS IMPLEMENTED, WHAT WILL BE THE NEW STANDARD FOR RESTAURANTS AND OR BARS? RESTAURANTS WILL ALIGN WITH STATUTE WHERE THEY'RE NOT REQUIRED TO HAVE THEIR EMPLOYEES TAKE THE OPIOID TRAINING.

IT WILL BE AVAILABLE TO THEM SEPARATELY IF THEY WANT TO, BUT IT'S NOT A REQUIREMENT.

AND THEN THE BARS AND EVERYONE ELSE WILL HAVE TO TAKE THAT ANYWAY.

SO WHAT I WAS MISSING IN THAT PART.

OKAY. AND SO THEY'LL HAVE TO TAKE THE STANDALONE COURSE SEPARATELY FROM SELLER SERVER.

SO RESTAURANT EMPLOYEES WILL NOT BE REQUIRED.

HOW DO WE FEEL ABOUT THAT? LET'S JUST SEE WHAT THE, MY SUGGESTION IS THAT WE SEE WHAT THE STAKEHOLDER PROCESS COMES UP WITH.

[01:00:04]

AND WE SEE WHAT WHAT THE INFORMATION THAT COMMISSIONER MACK ASKED FOR LOOKS LIKE.

MAYBE WE CAN CONTINUE TO CONSULT WITH SENATOR WEST'S OFFICE AND OTHER ELECTED OFFICIALS WHO VERY LIKELY HAVE HAVE A LOT TO SAY ABOUT THIS AND SEE WHAT WE COME UP WITH.

HOW ABOUT THAT? ABSOLUTELY.

THAT IS WHAT WE'LL DO.

CONSIDER IT A MAJOR PRIORITY FOR THE STATE AND FOR OUR INDUSTRY.

FAIR ENOUGH. YES.

ALL RIGHT. I MOVE TO APPROVE PUBLICATION OF PROPOSED AMENDED RULE 50.3-50.6 AND 50.29, ALCOHOL BEVERAGE SELLER SERVER AND DELIVERY DRIVER TRAINING AS RECOMMENDED BY STAFF.

IS THERE A SECOND? SECOND.

THANK YOU, COMMISSIONER MACK.

I HAVE A SECOND. WE'LL NOW.

MIC] VOTES HAVE BEEN RECORDED MOTION IS APPROVED.

NEXT ITEM IS EXECUTIVE SESSION.

[6. Executive Session]

THE COMMISSION WILL NOW GO INTO EXECUTIVE SESSION, UNDER GOVERNMENT CODE 551.074, 551.071 AND 551.089, IT IS NOW 11:32 AND WE ARE NOW IN EXECUTIVE SESSION.

[INAUDIBLE] AND WE ARE ADJOURNED.

THANK YOU ALL. HAPPY THANKSGIVING EVERYBODY.

THANKS EVERYONE. HAPPY THANKSGIVING.

WE'LL SEE YOU IN EL PASO.

* This transcript was compiled from uncorrected Closed Captioning.