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[1. Opening Items]
THE FIRST AGENDA ITEM IS CALLED TO ORDER.THE TIME IS 10:31 ON TUESDAY, JANUARY 23, 2024.
WE HAVE FORM AS WE BEGIN 2024.
I THINK IT'S IT'S FITTING THAT WE ARE HERE IN THE BEAUTIFUL CITY OF EL PASO.
I'D LIKE TO THANK YOU, COMMISSIONER MAC MAKING THE TRIP HERE AND ALSO WOULD VERY MUCH LIKE TO THANK YOU, COMMISSIONER ADKINS, FOR BEING SUCH A GRACIOUS HOST, OPENING UP YOUR BEAUTIFUL CITY TO US, AND JUST VERY HAPPY TO BE HERE.
I THINK THERE ARE TWO REASONS WHY EL PASO IS AN IMPORTANT PLACE TO START 2024.
NUMBER 1 IS THAT IT'S IMPORTANT FOR US TO GET OUTSIDE OF AUSTIN.
IT'S IMPORTANT FOR US AS AN AGENCY TO REALIZE THAT THERE'S SOMETHING OUTSIDE OF AUSTIN, TEXAS AND THE STATE CAPITAL ARE A GREAT STATE IN WHICH WE HAVE THE RESPONSIBILITY TO COVER, TO GET OUT AND MEET PEOPLE.
TO MEET NOT ONLY THE CITIZENS AND NOT ONLY THE CONSTITUENTS AND BUSINESSES THAT WE REGULATE, BUT ALSO THE EMPLOYEES THAT WE HAVE ALL OVER THE UNITED STATES AND WHICH MANY OF YOU ARE HERE IN THE AUDIENCE.
I THINK IT'S TERRIFIC THAT WE CHOOSE OTHER VENUES BESIDES AUSTIN TO HAVE OUR COMMISSION MEETINGS.
I THINK IT'S ALSO VERY TIMELY THAT WE ARE IN THE CITY OF EL PASO, AS THIS IS ONE OF THE LARGEST PORTS OF ENTRY IN THE UNITED STATES, THAT THE CITY OF EL PASO AND JUAREZ TOGETHER IN EXCESS OF 1.5 MILLION PEOPLE.
THOUSANDS OF VEHICLES AND INDIVIDUALS CROSS THE VARIOUS BRIDGES INTO OUR COUNTRY AND OUT OF OUR COUNTRY.
I HAD THE OPPORTUNITY YESTERDAY, AS DID MY FELLOW COMMISSIONERS AND SOME OF THE EMPLOYEES, TO GO SEE OUR EMPLOYEES THAT WORK TIRELESSLY IN VERY CHALLENGING CONDITIONS ON THE BORDER THROUGHOUT OUR STATE.
WE HAVE 100 INDIVIDUALS FROM THE BORDER WITH NEW MEXICO ALL THE WAY DOWN TO THE RIO GRANDE VALLEY.
OUR REVENUE OFFICERS WHO ARE THERE, WE HAVE REPRESENTATIVES HERE TODAY, WHETHER IT'S 110 DEGREES HEAT OR, AS WE EXPERIENCED LAST WEEK, SINGLE DIGIT WIND CHILLS, OUR TEXAS ALCOHOLIC BEVERAGE COMMISSION REVENUE OFFICERS ARE THERE AT THE BORDER.
I THINK THAT THEY DO TWO THINGS THAT ARE VERY IMPORTANT.
ONE IS THEY COLLECT REVENUE TAXES ON TOBACCO AND ALCOHOL COMING IN FROM MEXICO.
BUT ALSO THEIR PRESENCE IS IMPORTANT, ESPECIALLY IN THE WORLD THAT WE LIVE IN NOW.
I THINK THAT WHILE IT IS NOT THE PURVIEW OF THIS AGENCY TO DICTATE FEDERAL IMMIGRATION POLICY, OBVIOUSLY YESTERDAY WAS A VERY IMPORTANT DAY AS DECISIONS CAME DOWN FROM THE SUPREME COURT THAT WILL AFFECT OUR CITIZENS IN THE STATE.
YET, AS A PRIVATE CITIZEN, AS ALL OF US ARE, IT IMPACTS US AND IT DOES IMPACT THIS AGENCY.
WHILE THOSE THAT ESPOUSE AN OPEN DOOR POLICY, I WOULD ASK THEM, THEY ALL HAVE A FRONT DOOR, DO THEY KEEP THAT FRONT DOOR UNLOCKED AND OPEN? OF COURSE, THEY DON'T. NO ONE IN THIS ROOM DOES.
IT'S NOT TO KEEP PEOPLE OUT, BUT IT'S TO KNOW WHO'S COMING IN, BOTH GOOD AND BAD.
THAT HOUSE IS OUR HOME, IS THE STATE OF TEXAS, OF WHICH ALL OF US ARE CITIZENS.
SOME OF THE HARMFUL THINGS THAT COME THROUGH THAT DOOR AFFECT THIS AGENCY AND AFFECT OUR CONSTITUENTS.
INDEED, LAST YEAR WE WERE PART OF THE GOVERNOR'S ONE PILL KILL CAMPAIGN ABOUT FENTANYL.
AS YOU KNOW, OUR AGENCY HAS WORKED TIRELESSLY ON THE TRAGEDIES OF HUMAN TRAFFICKING, SEX TRAFFICKING, AND LABOR TRAFFICKING, ALL OF WHICH IS CARTEL-DRIVEN AND ALL OF WHICH COMES THROUGH THE BORDER.
IF WE DON'T HAVE A POLICY WHEREBY WE CAN CONTROL THE PROCESS, THIS AGENCY SERVES ON THE FRONT LINE BECAUSE IT IMPACTS US ALL, NOT JUST ON THE BORDER BUT THROUGHOUT AS FENTANYL AND OTHER ITEMS ENTER INTO RESTAURANTS AND BARS WHERE WE WORK, PLACES WE REGULATE, PLACES THAT WE PROTECT.
I BELIEVE AND I HOPE THAT WE WILL CONTINUE TO GROW THIS AGENCY AND PERSONNEL,
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NOT ONLY ON THE BORDER, BUT ALSO THROUGHOUT, BECAUSE IT'S NOT JUST THE BORDER.AS I SAID BEFORE, OUR THREE PRONGED PROCESS TO CONTROL FENTANYL INCLUDES PREVENTION, AND THAT IS HAVING INDIVIDUALS AT THE BORDER, AS WE DO, INTERDICTION BY OUR AGENTS WHO WORK WITHIN THE BARS AND RESTAURANTS, AND THEN ULTIMATELY, EDUCATION THROUGH OUR PUBLIC AFFAIRS EFFORTS TO TEACH AND TO MAKE THE CITIZENS IN TEXAS AWARE THAT THERE ARE CONSEQUENCES FOR LACK OF ACTION AT THE FEDERAL LEVEL.
WHILE I MAY HAVE BROUGHT UP A TOPIC THAT IS SENSITIVE, IT DOES IMPACT THIS AGENCY.
I WOULD LIKE TO THANK ALL OF YOU, ESPECIALLY THOSE HERE TODAY, THAT WORK ALONG THE BORDER, FOR ALL OF YOUR EFFORTS.
WITH THAT, I'D LIKE TO OPEN IT TO MY FELLOW COMMISSIONERS FOR ANY OPENING REMARKS.
I'D JUST LIKE TO THANK EVERYBODY FOR COMING HERE.
ESPECIALLY, I'D LIKE TO THANK HUNDRED COMPANIES FOR GRACIOUSLY ALLOWING US TO HOST THE MEETING HERE IN THEIR BEAUTIFUL CONFERENCE ROOM AND ALL THE STAFF.
I KNOW IT'S NOT EASY TO MAKE A TRAVELING MEETING WORK, ESPECIALLY 600 PLUS MILES FROM AUSTIN, TEXAS.
BUT YOU'VE DONE AN AMAZING JOB AND IT'S VERY IMPORTANT THAT WE'RE HERE, THAT WE KNOW THAT WEST TEXAS IS IMPORTANT, A CRITICAL PART OF THE STATE.
THANK YOU. COMMISSIONER MARINO.
COMMISSIONER BOATRIGHT, ANY OPENING COMMENTS? DITTO.
ALL RIGHT. WELL, THANK YOU ALL VERY MUCH.
LET'S MOVE TO THE NEXT AGENDA ITEM, WHICH IS APPROPRIATE.
LET US HONOR OUR GREAT NATION AND RECITE THE PLEDGE OF ALLEGIANCE.
NEXT ITEM IS APPROVAL OF THE COMMISSION MEETING MINUTES OF NOVEMBER 14, 2023.
I SO MOVE. IS THERE A SECOND? SECOND.
SECONDED BY COMMISSIONER ADKINS. WE WILL NOW VOTE.
>> THE NEXT AGENDA ITEM WILL BE NEW TABC COURSE ON OPIOID OVERDOSE.
[2. Reports]
JARED STAPLES.>> GOOD MORNING, MR. CHAIRMAN, COMMISSIONERS.
MY NAME IS JARED STAPLES, I'M THE DIRECTOR OF PUBLIC AND GOVERNMENT AFFAIRS FOR TABC.
AND THIS MORNING, I HAVE A PRESENTATION FOR YOU ON TABC'S RECENT COURSE ON PUBLIC SAFETY, WHICH WE'VE LAUNCHED IN ADDRESSING THE OFTEN FATAL CONSEQUENCES OF THE OPIOID CRISIS HERE IN THE UNITED STATES, WHICH INCLUDES THINGS LIKE OVERDOSES ON FENTANYL AND OTHER DRUGS.
NEXT SLIDE, PLEASE. NOW, AS YOU'RE AWARE, THE TEXAS LEGISLATURE ADOPTED SENATE BILL 998 LAST YEAR, WHICH ESSENTIALLY REQUIRES TABC TO PROVIDE AN ANNUAL COURSE FOR BAR AND CLUB OWNERS AND THEIR STAFF THAT SERVE CUSTOMERS ON HOW TO IDENTIFY THE SIGNS AND SYMPTOMS OF AN OPIOID DRUG OVERDOSE, AND HOW TO ADMINISTER AN OPIOID ANTAGONIST, WHICH REVERSES THE EFFECTS OF AN OVERDOSE.
THE STATE LAUNCHED THIS INITIATIVE TO HELP FIGHT THE GROWING NUMBER OF DEATHS FROM OPIOID RELATED OVERDOSES, WHICH, ACCORDING TO THE CDC, KILLS MORE THAN 150 AMERICANS EACH DAY.
THIS IS ALSO WHY GOVERNOR ABBOTT LAUNCHED HIS ONE PILL KILLS CAMPAIGN, WHICH MR. CHAIRMAN, YOU MENTIONED IN YOUR OPENING REMARKS WHICH TABC GLADLY PARTICIPATED IN.
TO FULFILL OUR RESPONSIBILITY TO EDUCATE SERVERS IN TEXAS ON HOW TO SAVE LIVES, TABC QUICKLY GOT TO WORK IN DEVELOPING THIS COURSE LAST FALL.
WE'RE RELYING A LOT ON INFORMATION THAT WAS PROVIDED BY VARIOUS OFFICIAL GOVERNMENT HEALTH EXPERTS.
I'D LIKE TO GIVE A SPECIAL THANK YOU AT THIS TIME TO TABC'S TRAINING DEPARTMENT, COMMUNICATIONS DEPARTMENT, AND OUR GENERAL COUNSEL WHO HELP TABC TIMELY COMPLETE THIS COURSE.
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NEXT SLIDE, PLEASE. BECAUSE OF THESE EFFORTS, TABC LAUNCHED THE OPIOID OVERDOSE COURSE LAST MONTH, AND WE'RE PROVIDING IT TO THE PUBLIC FOR FREE.WHILE ESSENTIALLY JUST SERVERS AT BARS AND CLUBS ARE REQUIRED TO TAKE THE COURSE, TABC IS ENCOURAGING EVERYONE TO TAKE IT AND EDUCATE THEMSELVES ON HOW TO RESPOND TO AN OVERDOSE SITUATION, BECAUSE IT COULD HELP SAVE A LIFE.
TO ACCESS THIS FREE COURSE, ALL ANYONE NEEDS TO DO IS GO TO TABC'S WEBSITE AND ACCESS THE EDUCATION CENTER WEBPAGE.
FROM ANYWHERE ON THE WEBSITE, IF YOU GO TO THE TOP OF THE PAGE, YOU SEE LAWS AND REGULATIONS.
YOU CLICK "TABC EDUCATION CENTER", AND THEN YOU CAN SEE THE COURSE ON THE LEFT PAGE.
SO PRETTY EASY TO GET TO. NEXT SLIDE, PLEASE.
ONCE A USER ACCESSES THE COURSE, THEY WILL BE ASKED TO REVIEW AND UNDERSTAND VARIOUS TOPICS LIKE JUST HOW SERIOUS THIS OPIOID CRISIS IS, WHAT AN OPIOID IS, AND ALL THE DIFFERENT DRUGS IT ENTAILS, HOW TO IDENTIFY AN OVERDOSE SITUATION AND HOW TO RESPOND TO IT, INCLUDING HOW TO ADMINISTER NALOXONE, WHICH REVERSES THE EFFECTS OF AN OVERDOSE.
AFTER THE COURSE COMPLETION, WE ASK THE USERS TO SUBMIT AN EDUCATION CERTIFICATION FORM.
SO TABC HAS A RECORD OF EVERYONE THAT'S TAKEN THE COURSE AND THE BUSINESS THEY'RE AFFILIATED WITH SO THAT WE CAN MAKE AN EFFORT TO ENSURE COMPLIANCE WITH THIS ANNUAL COURSE REQUIREMENT.
I WANT TO CLOSE OUT THIS PRESENTATION TODAY WITH A FEW QUOTES THAT WE INCLUDED IN OUR PRESS RELEASE LAST MONTH ON THE LAUNCH OF THIS NEW COURSE.
ONE FROM SENATOR ROYCE WEST, WHO IS THE AUTHOR OF THIS NEW LAW, AND ANOTHER FROM GOVERNOR GREG ABBOTT, WHO THANKED TABC FOR OUR IMPLEMENTATION OF THIS COURSE, AND AGAIN, FOR OUR PARTICIPATION IN HIS ONE PILL KILLS CAMPAIGN.
NEXT SLIDE, PLEASE. SO THAT'S ALL THE PREPARED CONTENT I HAVE FOR YOU, BUT TO ANSWER QUESTIONS OR ANY REMARKS YOU HAVE ON.
>> I WOULD I WOULD LIKE TO COMMENT.
THE THIRD LEG OF THE STOOL, WHICH IS EDUCATION IS MANIFESTED IN WHAT WE'RE DOING HERE, AND IT HAD REAL RESULTS.
RECENTLY, THERE WAS AN INCIDENT IN HOUSTON AT A BAR.
TWO OF OUR AGENTS WERE THERE ON ROUTINE DUTY, AND THEY NOTICED A NON-RESPONSIVE YOUNG LADY AND IMMEDIATELY, THEY SAW THE SIGNS OF A FENTANYL OVERDOSE AND THEY IMMEDIATELY ADMINISTERED THE OPIOID ANTAGONIST AND SAVED HER LIFE.
AND IT WAS DETERMINED THAT ACTUALLY THAT WAS PLACED IN HER DRINK WHILE SHE WAS THERE.
THIS IS A REAL ISSUE AND IT'S SOMETHING THAT I'M GLAD AND THANKFUL THAT GOVERNOR ABBOTT HAS BROUGHT THIS TO THE ATTENTION OF THE PEOPLE OF TEXAS, AND I'M VERY GLAD AND PROUD THAT THIS AGENCY IS ON THE FRONTLINE IN DEALING WITH THIS CRISIS.
JARED, THANK YOU AND YOUR TEAM FOR THE GREAT WORK YOU'RE DOING.
>> THE NEXT GENERAL AGENDA ITEM WILL BE AIMS UPDATE.
DEPUTY DIRECTOR SANCHEZ, IF YOU PLEASE NOW.
>> GOOD MORNING, CHAIRMAN, COMMISSIONERS.
MY NAME IS LAURI SANCHEZ, I'M THE DEPUTY DIRECTOR OF IT, AND I'LL BE PRESENTING YOUR AIMS UPDATE.
SINCE WE'VE MET LIVE WITH AIMS THROUGH JANUARY 8 OF 2024, THERE HAVE BEEN 1.7 MILLION INDUSTRY LOGINS INTO AIMS. AND FROM THOSE LOGINS, THERE HAVE BEEN APPROXIMATELY 35,000 ORIGINAL APPLICATIONS SUBMITTED, 68,000 RENEWAL APPLICATIONS SUBMITTED, 63,000 PRODUCT REGISTRATIONS SUBMITTED, AND APPROXIMATELY 18,000 ACCOUNT BUSINESS TRANSACTIONS.
AND THOSE ARE FOR THINGS LIKE CHANGE OF TRADE NAME, CHANGE OF LOCATIONS, OR ANY OTHER SELF SERVICE TRANSACTIONS.
MOVING TO PHASE 2, SCOPE UPDATE, WE CONTINUE TO WORK ON COMPLETING THE PHASE 2 OF AIMS. SINCE THE LAST UPDATE, NO NEW FUNCTIONALITY HAS BEEN IMPLEMENTED.
WE CONTINUE TO WORK ON IN-PROGRESS SCOPE ITEMS AND WE ANTICIPATE TO HAVE THE FOLLOWING ITEMS IMPLEMENTED IN FEBRUARY.
THOSE ITEMS WOULD BE THE ENFORCEMENT UPDATES, LEGAL CASE MANAGEMENT, AND INTERNAL USER INTERFACE UPDATES.
THE TABC PROJECT TEAM MEMBERS ARE WORKING DILIGENTLY TO COMPLETE USER ACCEPTANCE TESTING WHILE CONTINUING TO DO THEIR NORMAL DAY-TO-DAY ACTIVITIES.
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ALSO TO BE IMPLEMENTED SHORTLY AFTER, THESE THREE ITEMS WOULD BE THE EXPUNGEMENT FUNCTIONALITY, WHICH WOULD ALLOW TABC USERS TO EXPUNGE DATA ON LEGAL ORDERS, AND ALSO THE OPEN RECORDS REQUEST FUNCTIONALITY, WHICH ALLOWS OUR TABC STAFF TO EXTRACT OPEN RECORDS REQUEST INFORMATION.SOME CHALLENGES THAT WE FACED ON PHASE 2 OR THROUGH THE SECOND PHASES OF AIMS, WE FACED CHALLENGES THERE AND WE'RE CURRENTLY FACING THOSE IMPACTS.
FROM EACH CHALLENGE OR REALIZED RISK, WE FOCUS ON HIGH IMPACT, HIGH PROBABILITY ITEMS. THIS APPROACH HAS ALLOWED AIMS TO CONTINUOUSLY BE DEVELOPED BY CONSTANTLY EVALUATING RISKS AND EVALUATING IMPACT TO STAFF AND INDUSTRY, AND CONSIDERING OUR BUDGET LIMITATIONS.
CURRENT KEY CHALLENGES RELATED TO THE PHASE 2 IN-PROGRESS ITEMS ARE DESIGN REQUIREMENTS AND EXPECTATIONS.
THERE'S OPPORTUNITIES FROM BOTH THE VENDOR AND INTERNAL TABC STAKEHOLDERS TO IMPROVE UPON THAT DOCUMENTATION DEVELOPMENT QUALITY AND VENDOR QUALITY ASSURANCE TESTING.
WE'VE TAKEN SOME ACTIONS TO ADDRESS THESE CHALLENGES THAT WE'RE CURRENTLY EXPERIENCING, WHICH INCLUDE THE VENDOR CONDUCTING SOME SHADOW SESSIONS WITH OUR INTERNAL STAFF TO UNDERSTAND THE DEFECTS FIRSTHAND.
THAT'S NOT CORRECT. [INAUDIBLE] IF YOU GO BACK ONE. THANK YOU.
THE ACTIONS WE'RE TAKING TO ADDRESS THE CHALLENGES THAT WE'RE CURRENTLY EXPANDING OR THE VENDOR CONDUCTED SHADOW SESSIONS SO THEY CAN UNDERSTAND OUR DEFECTS FIRSTHAND.
THE EXECUTIVE TEAM IS CONDUCTING MEETINGS WITH THE VENDOR TO ENSURE THAT THEY UNDERSTAND OUR CHALLENGES THAT WE'RE ENCOUNTERING.
AND THE VENDORS WORKING TO REVISE THEIR QUALITY ASSURANCE PLAN AND PROVIDING TRANSPARENCY WHICH WE WILL UPDATE IN THE NEXT PHASE 3 CONTRACT.
ALSO REVISING THE REQUIREMENTS OF THE DESIGN PROCESS.
WE'RE ACTIVELY WORKING WITH THE VENDOR TO WORK THROUGH AND SOLIDIFY THOSE UPDATES TO THE PROJECT MANAGEMENT PLAN.
AND THAT WILL ALSO BE INCLUDED IN OUR PHASE 3 CONTRACT UPDATE.
AS WE TRANSITION OR FOLLOW UP TO THE PREVIOUS TRANSITION INTO PHASE 3, WE'RE MAKING CHANGES TO OUR INTERNAL PROCESSES, AS I JUST MENTIONED, TO ENSURE THE SUCCESS FOR AIMS, FOR STAFF AND INDUSTRY.
WE'RE WORKING ON COMPLETING PHASE 2 SCOPE.
WE'VE CREATED AN EXCLUSIVE COUNSEL FOR ALL IT PROJECT GOVERNANCE, WHICH IS CALLED THE TECHNOLOGY PROJECT OVERSIGHT COUNCIL.
THIS COUNCIL REVIEWS, PRIORITIZES, AND MAKES DECISIONS ON ALL TECHNOLOGY PROJECT SCOPE INCLUDING AIMS. WE PRIORITIZE PHASE 3 SCOPE OF THIS NEW GOVERNING BODY, AND WE CONTINUE TO REVIEW RISK AND POTENTIAL PROJECT CHANGES.
WE'RE CONTINUING ALSO TO REVISE OUR VENDOR MANAGEMENT, THANKS TO THE INTERNAL AUDITS THAT WE PREVIOUSLY DISCUSSED AND REPORTS, WE'RE UPDATING THEIR CONTRACTS AND PROCESSES.
WE'RE REVISING OUR COMMUNICATION PLAN TO CLEARLY IDENTIFY WHAT'S BEING COMMUNICATED, WHO IT WILL BE COMMUNICATED TO AND BY WHOM, FOR BOTH STAFF AND INDUSTRY.
AND WE'RE IDENTIFYING FUNCTIONALITY ENHANCEMENTS.
SO WE'RE WORKING WITH OUR BUSINESS UNITS TO IDENTIFY GAPS AND FUNCTIONALITY NECESSARY TO IMPROVE OUR PROCESS UPFRONT.
THIS CONCLUDES MY PRESENTATION AND I'M HAPPY TO ANSWER ANY QUESTIONS.
>> I THOUGHT THE PRESENTATION WAS GREAT.
I'D LIKE TO, I DON'T KNOW IF IT'S POSSIBLE IF WE CAN GET A STATUS UPDATE FROM THE AUDITOR AS IT RELATES TO HOW THE PARTIES HAVE BEEN WORKING SINCE OUR LAST AUDIT PLAN [INAUDIBLE] APPROACH WHERE THE AUDITOR WOULD CHECK THE WORK OF OTHER VENDORS [INAUDIBLE].
I'D LIKE TO GET A STATUS UPDATE TO SEE HOW THEY'VE BEEN PROGRESSING FOR THE NEXT [INAUDIBLE] FALLS UNDER AUDIT.
AGAIN, WE CAN CERTAINLY CHECK WITH THE AUDITOR.
[INAUDIBLE] IT SOUNDS LIKE THE AIMS PROCESS IS FALLING IN PLACE.
BUT GIVEN THAT WE'VE ALREADY TASKED ONE INDIVIDUAL AND CONSULTANT TO MONITOR THAT, I THINK IT MAKES SENSE TO HAVE THEM COME IN AS WELL TO GIVE AN UPDATE ON WHAT THEY'RE SEEING FROM THERE.
>> NO, I THINK COMING OUT OF THE AUDIT, ONE OF THE BIGGEST THINGS IS VENDOR MANAGEMENT.
WHEN YOU'RE DOING A CUSTOM APPLICATION DEVELOPMENT, WHICH IS WHAT THIS IS, IT'S NEVER BEEN CREATED BEFORE.
THIS IS SOMETHING THAT IS BEING DEVELOPED ON THE FLY, SPECIFIC FOR US.
THERE'S CHALLENGES IN THAT PERIOD, BUT THAT NOR MANAGEMENT PIECE IS HUGE.
THE IMPLEMENTATION OF THE TECHNOLOGY PROJECT OVERSIGHT COMMITTEE IS MAKING A GIANT DIFFERENCE.
I THINK YOU'RE TAKING ALL THE RIGHT STEPS TO MAKE THIS A SUCCESSFUL PROJECT AND JUST NEED TO CONTINUE DOWN THAT PATH UNTIL WE'RE DONE.
>> COMMISSIONER BOATRIGHT, OR MARINO, ANY COMMENTS OR QUESTIONS?
>> NONE FOR ME. THANKS FOR THE PRESENTATION.
>> YEAH. THANK YOU FOR THE PRESENTATION.
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I CAN HEAR WHAT YOU GUYS ARE SAYING ABOUT THE AUDIT.I THINK COMMISSIONER MAC, YOU'RE RIGHT.
THAT WAS SOMETHING THAT WE REALLY NEED TO BE IN LOCKSTEP WITH AT LEAST FOR FEEDBACK PURPOSES.
I ALSO UNDERSTAND IN VISITING WITH STAFF THAT GOT IS IS NOW BROUGHT PEOPLE THAT ARE IN OFFICE THREE DAYS A WEEK TO HELP MAKE SURE THAT THERE'S NO MISSTEP AND THAT THE COMMUNICATION IS MORE TRANSPARENT.
MY QUESTION IS ON THE SLIDE PRESENTATION, WE TALKED ABOUT PHASE 3.
KNOWING THAT PHASE 3 IS OUT THERE, BUT WE STILL HAVE ALL THESE ISSUES THAT WE'RE DEALING WITH IN PHASE 2.
IS THERE A TIMELINE THAT WE'RE LOOKING AT TO GET INTO PHASE 3?
YES, WE ARE CURRENTLY EVALUATING THE TIMELINES, ESPECIALLY SINCE WE HAVE TWO OTHER PHASE 2 MODULES TO IMPLEMENT AFTER PHASE 3 THAT ARE IN FEBRUARY.
YES, THAT IS SOMETHING THAT WE'RE CURRENTLY LOOKING AT AND WE'RE TRYING TO ENSURE THAT THE VENDOR HAS APPROPRIATE RESOURCES TO POTENTIALLY WORK THINGS IN PARALLEL.
IT'S NOT SOMETHING THAT HAS TO BE START TO FINISH AND THEN START TO FINISH.
THEY CAN CONDUCT ACTIVITIES IN PARALLEL TO ENSURE WE WE CAN START PHASE 3 POTENTIALLY WHILE WE'RE STILL WORKING ON PHASE.
THAT'S AGAIN, UP TO THE GOVERNING BODY TO THAT.
>> ARE YOU ABLE TO HEAR THAT, COMMISSIONER [INAUDIBLE]?
THEN ONE MORE FOLLOW UP QUESTION.
IS THERE A PHASE 4 OR IS PHASE 3 WHERE WE'LL BE IN CONJUNCTION WITH AT THIS POINT?
>> AS OF RIGHT NOW, PHASE 3, IS IT WE INITIALLY ASKED FOR THE TECHNOLOGY TRANSFORMATION.
IT WOULD BE A SIX YEAR PROJECT.
THIS IS FINISHING UP THOSE FIVE AND SIX YEARS OF THE PROJECT.
NEXT AGENDA ITEM WILL BE THE EVALUATION OF LICENSE AND PERMIT FEES, MORELOCK.
>> THANK YOU. I AM MARIANN MORELOCK.
I'M THE DIRECTOR OF STRATEGIC INITIATIVES AND PERFORMANCE IMPROVEMENT.
LET'S GO TO THE NEXT SLIDE AND RECAP HOW WE GOT HERE.
TVC WENT THROUGH THE SUNSET PROCESS IN 2018, 2019, AND THE SUNSET COMMISSION, THROUGH THE SUNSET BILL, MADE SIGNIFICANT CHANGES TO THE ALCOHOLIC BEVERAGE CODE.
THE TWO THAT ARE RELATED TO THIS PARTICULAR PRESENTATION.
OTHER REQUIREMENT THAT THE COMMISSION SET FEES FOR PERMITS AND LICENSES, AND THEN ALSO CHANGE IN THE LICENSE AND PERMIT STRUCTURE.
SOME OF THOSE CHANGES, INCLUDING THE CONSOLIDATION OF BEER AND L INTO A MALT BEVERAGE, IT ALSO TOOK SUBORDINATE PERMITS AND PUT THOSE AUTHORITIES INTO A PRIMARY PERMIT, AND THEN ELIMINATED SUBORDINATE.
THEY MERGED SOME PERMITS, GOT RID OF SOME TEMPORARY PERMITS.
ULTIMATELY, WE WENT FROM 75 PERMIT TYPES DOWN TO 0.30.
ALL THOSE CHANGES EFFECT SEPTEMBER 1, 2021.
WHEN THE COMMISSION WAS ADOPTING FEES IN 2021, YOU ASKED STAFF, WHEN CAN YOU EVALUATE THESE NEW FEES? THE RESPONSE WAS WE NEED AT LEAST TWO YEARS.
THE REASON FOR THAT IS A PERMIT OR A LICENSE LAST TWO YEARS BEFORE IT'S TO BE RENEWED.
WE KNEW AT THAT TIME WE NEEDED TWO FULL YEARS OF DATA.
AT LEAST ONE CYCLE IN A LICENSE PERMIT TO GO THROUGH BEFORE WE COULD START GATHERING THE DATA.
THAT'S WHERE WE ARE NOW. NEXT SLIDE, PLEASE.
THAT TWO YEAR PERIOD HAS PASSED, SO WE ARE IN THE INITIAL STAGES OF EVALUATING THOSE FEES.
WE PUT A WORK GROUP TOGETHER COMPOSED OF DIVISIONS AND DEPARTMENTS THAT HAVE SOMETHING TO DO WITH LICENSING PERMITS.
PRETTY MUCH THE ONLY DIVISION NOT CAPTURED HERE IS HR, COMMUNICATIONS AND PORTS ENTRY.
THE WORK GROUP MET THE FIRST WEEK OF JANUARY, 2 WEEK OF JANUARY, GOING TO MEET AGAIN LATER THIS WEEK.
WE'LL CONTINUE TO MEET, BUT RIGHT NOW WHAT THEY ARE DOING SINCE THAT SECOND WEEK OF JANUARY, THEY'RE GATHERING DATA.
THE DATA THAT WE HAVE NOW IS MUCH DIFFERENT THAN THE DATA WE HAD IN 2019 WHEN THE WORK GROUP WAS FIRST FORMED FORM.
AT THE TIME THE DATA THAT WE HAD IN 2019 REPRESENTED THAT OLD PERMIT STRUCTURE, SO THE 75 PERMITS, IT ALSO REPRESENTED DIFFERENT AUTHORITIES AND PRIVILEGES ASSOCIATED WITH THOSE LICENSES AND PERMITS BECAUSE EVERYTHING CHANGED TWO YEARS LATER.
AT THAT TIME, THERE WAS NO WAY TO KNOW IF THOSE NEW AUTHORITIES WOULD CHANGE, WOULD HAVE A PERMIT HOLDER CHANGE FROM ONE TYPE OF PERMIT TO ANOTHER, OR BECAUSE OF NEW AUTHORITIES OF A CERTAIN PERMIT TYPE, THERE WOULD BE MORE PERMITS ISSUED FOR THAT TYPE.
WHAT WE'RE LOOKING AT IS DATA THAT REPRESENTS SEPTEMBER 1,
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2021 THROUGH AUGUST 31, 2023.YES, IT IS A LICENSE OR PERMIT.
WE HAVE A LICENSING DIVISION, BUT IT GOES WELL BEYOND LICENSING DIVISION.
WE NEED TO LOOK AT ALL THE ASPECTS OF A LICENSE OR PERMIT AND WHO IT TOUCHES.
SOME OF THE GROUPS THAT ARE REPRESENTED HERE TOUCH A LICENSE OR PERMIT IN A DIFFERENT WAY.
EXCISE TAXES, FOR EXAMPLE, HAVE LITTLE TO DO WITH THE RETAIL TIER, BECAUSE EXCISE TAXES ARE PAID BY THE PRODUCTION AND THE DISTRIBUTION TIER, WHEREAS ENFORCEMENT FOCUSES ON THE RETAIL TIER BECAUSE THE MAJORITY OF PERMITS ARE IN THE RETAIL TIER.
ALSO MORE COMPLAINTS ABOUT THE RETAIL SECTOR THAN THE OTHERS.
IT'S IMPORTANT TO GATHER DATA FROM ALL THE PERSPECTIVES WE DON'T KNOW YET IF WE'RE GOING TO ALSO LOOK AT THE PRIVILEGES ASSOCIATED WITH CERTAIN PERMITS.
IF WE'RE GOING TO LOOK AT THE GEOGRAPHIC SCOPE OF A PERMIT, MAYBE WE'LL LOOK WITHIN THE INDIVIDUAL TIERS OF MANUFACTURING DISTRIBUTION, RETAIL, OR IT COULD BE SIMILAR PERMIT TYPES LIKE PREMISE VERSUS OFFERS.
I JUST WANT TO ASSURE EVERYONE THAT THE PROCESS IS WELL UNDERWAY AND WE HAVE DEDICATED SIGNIFICANT RESOURCES TO THE EFFORT.
NEXT STEPS. THE WORK GROUP WILL CONTINUE TO MEET IN JANUARY AND IN FEBRUARY.
WHAT I'D LIKE TO DO IS GIVE THEM THE OPPORTUNITY TO GATHER THE DATA, TALK ABOUT THE DATA, USE THEIR EXPERTISE, TALK TO LEADERSHIP, AND THEN COME BACK TO YOU ALL IN MARCH, TO THE COMMISSION, AND TELL YOU WHAT THE RECOMMENDATION IS IN TERMS OF HOW WE SHOULD EVALUATE THESE, AND TALK ABOUT THE GAME PLAN GOING FORWARD AT THAT TIME.
ONE FOOTNOTE I WANT TO MAKE IS THAT ANYTIME THERE IS A CHANGE TABLE, WELL FIRST OF ALL, FEES ARE SET BY THE COMMISSION, NOT BY STAFF, AND IT'S THROUGH A RULE.
JUST LIKE ANY OTHER RULE, IF STAFF WANTED TO RECOMMEND A CHANGE TO THE COMMISSION, THEY WOULD GO THROUGH A PROCESS.
PART OF THAT PROCESS IS HAVING A STAKEHOLDER MEETING.
WHETHER IT'S ONE STAKEHOLDER MEETING OR MULTIPLE STAKEHOLDER MEETINGS.
IF WE DO RECOMMEND A CHANGE TO A RULE, WE WOULD HAVE A STAKEHOLDER MEETING BEFORE WE WOULD EVER RECOMMEND TO THE COMMISSION A CHANGE IN RULE FOR CONSIDERATION FOR PUBLICATION.
I JUST WANTED TO MAKE EVERYONE AWARE, REMIND THEM OF THE PROCESS THAT'S INVOLVED WITH MAKING A CHANGE TO RULE.
LAST SLIDE. THAT IS ALL MY PRESENTATION, BUT I LOOK FORWARD TO YOUR INPUT AND GUIDANCE. YOU CAN NOW PROCEED.
>> ANY QUESTIONS? MR. BOATRIGHT, COMMISSIONER MARINO, ANY QUESTIONS OR COMMENTS?
>> THANKS FOR THE PRESENTATION.
I'M GLAD THAT WE'RE DOING THIS.
I THINK IT'S NECESSARY BECAUSE WE RAISED WAY TOO MUCH MONEY FROM FEES OVER THE LAST COUPLE OF YEARS.
AND I THINK IT WAS UNNECESSARY AND IT COULD HAVE BEEN AVOIDED.
I THINK IT PROBABLY WOULD HAVE BEEN IF WE'D STARTED WITH SOME DIFFERENT FIRST PRINCIPLES.
SO I'VE NEVER TRIED TO MICROMANAGE ANYTHING THAT WE'VE DONE, BUT I HAVE INSISTED ON BIG PICTURE STANCES ABOUT WHO WE WANT TO BE, WHAT WE'RE SUPPOSED TO DO ANYWAY.
CONSISTENT WITH THAT, I HAVE BASICALLY NOTHING TO SAY ABOUT HOW THE TEAM IS GOING TO WORK AND WHAT YOU ALL ARE GOING TO COME UP WITH HERE OR THERE.
THAT'S UP TO YOU ALL. BUT FROM A MATTER OF FIRST PRINCIPLES, I THINK THAT WE SHOULD LOOK AT OUR FEES AS SOMETHING THAT RECOUPS OUR COST, IT'S NOT AN AMOUNT OF MONEY THAT WE WANT TO RAISE.
THOSE ARE DIAMETRICALLY OPPOSED IDEAS.
WE STARTED WITH THE LATTER IN I GUESS '19 OR '20, I ONLY SAW IT IN 2021, BUT WE STARTED WITH THE IDEA THAT WE NEEDED TO RAISE A CERTAIN AMOUNT OF MONEY, WHICH I DON'T AGREE WITH, BUT THAT'S OKAY.
THE REASONABLE MINDS CAN DIFFER ABOUT THAT.
BUT NOT ONLY DID WE START FROM THE STANDPOINT OF HOW MUCH MONEY WE THOUGHT WE NEEDED, WE STARTED FROM THE STANDPOINT OF HOW MUCH MONEY WE WANTED.
I DO NOT THINK THAT THAT IS WHAT WE ARE HERE TO DO.
IT IS NOT OUR MONEY, AND WE NEED TO BE VERY CAREFUL ABOUT HOW MUCH OF IT WE WANT TO TAKE FROM THE PEOPLE OF THE STATE WHO WE SERVE.
[00:30:03]
SO THAT'S THE FIRST THING. WE SHOULD START OUT BY LOOKING AT HOW MUCH MONEY WE ACTUALLY NEED TO COVER OUR COSTS RATHER THAN HOW MUCH MONEY WE WANT.I THINK THAT IF WE START OUT THERE, EVERYTHING ELSE WILL PROBABLY FALL INTO PLACE.
I'M NOT TRYING TO DOWNPLAY HOW MUCH WORK YOU ALL ARE GOING TO HAVE TO DO ON THIS, BUT STARTING FROM THE RIGHT PLACE I THINK WILL HELP.
>> NEXT AGENDA ITEM WILL BE THE FY24, BUDGET REPORTING, CHIEF FINANCIAL OFFICER SWAN.
>> GOOD MORNING, SIR. FOR THE RECORD, I AM CONRAD SWAN, CHIEF FINANCIAL OFFICER.
AND YES, I WILL BE GIVING YOU A BUDGET UPDATE FROM THE LAST TIME THAT YOU SAW IT WHEN WE WERE DOING OUR INTERNAL AUDIT.
THE DATA THAT YOU'RE LOOKING AT HERE, WE TOOK A SNAPSHOT FROM DECEMBER 31.
SO THIS IS A PERFECT THIRD OF THE YEAR'S BUDGET CONCERN.
SINCE THE LAST TIME YOU SAW THIS BUDGET, I'M GOING TO START AT THAT BOTTOM LINE.
WE'RE NOW SITTING AT A 65.3 MILLION DOLLAR BUDGET.
THE LAST TIME YOU SAW IT, IT WAS SITTING AT A LITTLE OVER 64 MILLION.
SO WE'VE GROWN THIS BUDGET BY ABOUT 1.2 MILLION DOLLAR.
I'LL JUST SUMMARIZE WHAT THAT GROWTH HAS BEEN.
WHEN WE PRESENTED OUR INTERNAL OPERATING BUDGET TO YOU, IT WAS A BUDGET WITH JUST GR IN IT, WE WANTED TO FOCUS ON OUR APPROPRIATED GR AND HOW WE'RE ALLOCATING THAT WITHIN THE AGENCY.
SINCE THEN, WE'VE ADDED OUR GRANTS THAT WAS ABOUT $990,000 FOR OUR GRANTS AND THAT INCLUDES CARRYING FORWARD OUR GRANTS THAT SIT ON A FEDERAL CALENDAR.
YOU'VE GOT ONE MONTH THERE THAT GETS SPENT IN THIS YEAR.
THAT 990 INCLUDES YOU BEING FORWARD SOME MONEY FOR THAT.
IN ADDITION TO THAT, WE'VE TAKEN FORWARD OUR ASSET FORFEITURES, SO THE BALANCE THAT SET FOR ASSET FORFEITURES, WHICH IS ABOUT 240, $250,000 WE BROUGHT THAT INTO THE BUDGET.
AND THEN FINALLY, JUST A SMALL AMOUNT PAST THAT SHOULD RECONCILE YOU FOR THAT 1.2 AND THAT'S FOR BENEFIT REPLACEMENT PAY, ABOUT $5,000.
NOW WHEN YOU'RE LOOKING AT THIS BUDGET, I THINK WE'RE PRETTY MUCH WHERE WE SHOULD BE AT THIS STAGE OF THE YEAR.
THAT PERCENT OBLIGATED WE'RE 80% OBLIGATED.
THERE'S ONLY ABOUT 16% OF OUR BUDGET NOT OBLIGATED.
WHEN YOU LOOK AT THE DOLLAR AMOUNTS IN THE REMAINING BALANCE, YOU DO SEE ABOUT $11 MILLION THERE, NOT CONCERNING AT THIS STAGE.
YOUR BIGGEST NUMBERS 3.8 ARE SITTING IN THAT ENFORCEMENT STRATEGY.
WE'LL TALK ABOUT WHAT SOME OF THAT IS HERE AS WE GO THROUGH THE PRESENTATION.
YOU SEE $5 MILLION IS ANOTHER BIG NUMBER SITTING WITH YOUR INFORMATION RESOURCE STRATEGY.
THAT'S MOSTLY YOUR IT TRANSFORMATION PROJECT, WHICH AS YOU HEARD FROM LAURIE'S UPDATE IS IN PROCESS.
THE 3.8 A LOT OF THAT IS GOING TO BE SALARIES AND SOME OTHER THINGS THAT JUST DON'T GET ENCUMBERED AS WE GO THROUGHOUT THE YEAR.
SO THIS IS AN EASY WAY OF JUST SEEING WHERE YOUR MONEY IS BY STRATEGY.
ON OUR NEXT SLIDE, WE'LL SHOW YOU THAT SAME BUDGET, BUT WE'RE GOING TO PRESENT IT TO YOU BY OBJECTS OF EXPENSE. HERE'S THAT SAME 65.3 MILLION.
NOW IT'S EASIER TO SEE, WHEN WE WERE TALKING ABOUT THAT REMAINING BALANCE, YOU SEE THREE COLUMNS IN THERE.
YOU CAN SEE YOUR 10.9 AND YOU CAN SEE THE TYPE OF EXPENDITURES THAT THE MONEY IS SITTING IN.
TWO MILLION DOLLARS OF THAT 10 IS IN YOUR SALARIES LINE.
THOSE FIRST TWO OOES 1,001 AND 1,002.
WE ALSO NEED TO ACCOUNT FOR THAT ONE TIME LINE AT THE VERY BOTTOM, THAT IS SALARIES THAT HAS FALLEN OUT OF THE BUDGET OF 700,000.
YOU'VE GOT 2.7 OF THAT $10.9 MILLION, THAT'S FOR SALARY RELATED ITEMS. ANOTHER TRICKY PART OF A SALARY RELATED COST IS WE PAY ABOUT 1% PAYROLL HEALTH CONTRIBUTION.
THAT'S A SALARY RELATED COST, BUT IT APPEARS IN 2009, OTHER OPERATING EXPENSES, THAT'S 170,000.
YOU ALSO HAVE A CLOTHING ALLOWANCE THAT GETS PAID BY PAYROLL AND THAT'S ANOTHER 80,000.
WHEN YOU ACCOUNT FOR THOSE, REALLY YOU GOT ABOUT $3 MILLION OF THAT 10.9, THAT'S JUST RELATED TO SALARIES THAT AREN'T BEING USED AT THE MOMENT.
THEN WE TALKED ABOUT OUR IT TRANSFORMATION.
YOU CAN SEE IT IN 2001, THAT PROFESSIONAL FEES AND SERVICES LINE.
THAT 4.8 ABOUT 4.6 OF THAT IS FROM THE IT TRANSFORMATION.
WHEN YOU FACTOR FOR JUST THOSE TWO THINGS ALONE, SALARIES, THE IT TRANSFORMATION, IT PUTS A BIG DENT IN THAT 10.9 AND THE REST IS WHY I'M SAYING WE'RE WITHIN REACH, WE'RE WHERE WE SHOULD BE ONLY A THIRD OF THE YEAR COMPLETE.
JUST A REMINDER, WHEN WE WERE TALKING ON SOME OF MY OTHER PRESENTATIONS,
[00:35:03]
I TOLD YOU THERE ARE THINGS THAT WE DO THAT DON'T MOVE OUT OF THAT REMAINING BALANCE BECAUSE THEY MOVE WHEN THEY GET SPENDED.UNLIKE OTHER THINGS THAT THE MOMENT THEY'RE ENCUMBERED, THEY MOVE OVER TO THAT HERE TODAY ENCUMBERED LINE.
REMEMBER, FUEL AND LUBRICATIONS, YOU'VE GOT 300K THERE THAT WILL STAY THERE UNTIL IT'S SPENT.
YOUR TRAVEL, YOU GOT 350K THAT WILL STAY THERE UNTIL IT'S SPENT.
WE TALKED ABOUT THAT 990K IN GRANTS.
A BIG PORTION OF THAT IS FOR OVERTIME GRANTS.
WHEN WE WERE JUST TALKING ABOUT NOT OVERTIME GRANTS, BUT A BIG PORTION OF THE GRANT HAS OVERTIME IN IT, IS WHAT I SHOULD SAY.
WHEN WE WERE TALKING ABOUT THOSE SALARIES, DON'T THINK ALL THREE MILLION OF THAT WAS JUST UNSPENT SALARY.
SOME OF IT IS WAITING FOR THE OVERTIME TO BOOK AND IT'LL LOOP OVER TO YOUR YEAR TO DATE OBLIGATIONS.
BUT I THINK THIS SHOWS ONCE WE FACTOR FOR THOSE UNKNOWNS THAT I'M SPEAKING TO, THAT WE'RE PRETTY WELL WITHIN REACH, WE'RE WHERE WE SHOULD BE AT THIS STAGE.
THE NEXT SLIDE I WANTED TO SHOW YOU IS JUST OUR CAPITAL BUDGETS.
IT'S EASY TO SEE IN THE PICTURE THERE THAT OUR IT TRANSFORMATION BALLOON THERE IS IN ITS OWN STRATOSPHERE AND ALL THE OTHERS ARE IN A LESSER STRATOSPHERE THERE.
TO GET YOU READY FOR WHAT YOU SHOULD SEE THROUGH THE REMAINDER OF THE YEAR, WE COULD TALK ABOUT THESE REMAINING BALANCES FOR YOUR PC REFRESH.
THAT'S GOING TO GET ENCUMBERED.
THAT'S GOING TO PAY FOR OUR LAPTOPS AND DEVICES, OUR SURFACE PRO LEASE.
I DON'T EXPECT THAT YOU'LL SEE THAT AS WE GO THROUGHOUT THE YEAR.
HARDWARE SOFTWARE ACQUISITION, WE GOT A LOT OF THAT ENCUMBERED, ONLY 24% REMAINS, THAT 90K, I EXPECT WE'LL HAVE SOME OF THAT SPENT.
FLEET, THAT $2.7 MILLION BUDGET, WE'VE ENCUMBERED 2.67.
THAT'S GOING TO BUY US 25 SILVERADO, 24 TAHOES.
THERE'S ABOUT $43,000 REMAINING WHICH WE THINK WE'RE GOING TO BE ABLE TO GET US ONE, I THINK IT'S A TOYOTA TUNDRA.
I'M EXPECTING THAT WHOLE LINE TO BE PRETTY NEAR ZERO.
>> DID WE MAKE A DECISION? I THOUGHT WE WERE MOVING AWAY FROM TRUCKS AND JUST SUVS.
IS THERE A PURPOSE WHY WE NEED PICKUPS? IS IT JUST THE AVAILABILITY THAT'S OUT THERE?
>> IT'S COME DOWN TO AVAILABILITY.
>> LET'S SEE. YOUR PUBLIC SAFETY EQUIPMENT, THAT 152, I'VE ALREADY HEARD AND SEEN PLANS STARTING TO WORK THROUGH.
I'M SURE THAT 152, AS WE MOVE FORWARD FROM HERE, MOST OF THAT WILL BE DEPLETED.
CYBERSECURITY. THAT'S NOT UNEXPECTED THAT WE HAVE THAT THERE.
WE'VE BEEN TRYING TO HIRE INFORMATION SECURITY OFFICER, HAVEN'T GOTTEN A PERMANENT HIRE IN PLACE, BUT WE'VE BEEN SAVING THAT BUDGET FOR THEM TO MAKE DECISIONS ON.
I EXPECT TO SEE THAT TO GET SPENT AS WE MOVE FORWARD AND MAKE THAT HIGHER.
THEN FINALLY, THERE'S YOUR IT TRANSFORMATION.
WE TALKED ABOUT 4.6 BEING LEFT OVER THERE AND WE'VE GOT THINGS IN PROCESS, BUT WE'RE STARTING TO TRANSITION TOWARDS PHASE 3.
WE'LL SEE SOME OF THAT SPENT AS WELL.
WHAT DOESN'T GET THERE, REMEMBER, WE HAVE AUTHORITY ON THAT CAPITAL PROJECT TO BE TO 2025.
IT'S REALLY ABOUT WHAT WE GET SPENT BY 8,31,2025.
AGAIN, I THINK WE'RE WHERE WE NEED TO BE ON THAT.
THAT CONCLUDES MY PREPARED REMARKS.
I'LL TAKE ANY QUESTIONS THAT YOU MAY HAVE.
>> CAN YOU EXPAND ON THE RETIREMENT OVERTIME? PLEASE EXPLAIN THAT TO ME.
>> YEAH. WE HAVE THREE GRANTS IN OUR AGENCY.
TWO WITH THE OFFICE OF THE GOVERNOR FOR HUMAN TRAFFICKING SERVICES CONNECTING VICTIMS TO SERVICES, IS WHAT I SHOULD SAY.
THEN WE HAVE A THIRD GRANT WITH TEXTILE, AND THAT GRANT HAS A BIG PORTION OF IT, THAT IS FOR OVERTIME.
USUALLY WE SEE A LOT OF IT SPENT DOWN ON THE PISANO EVENT.
THEN BEYOND THAT, YOU'LL SEE INVOICE, PLANNED INVOICE, BUT YOU'LL SEE ACTIVITY ONCE A MONTH THAT DRAWS FROM THAT.
>> THAT BUCKET WE CAN USE TO PAY OVERTIME DURING PISANO SEASON? IS THAT HOW THAT WORKS?
>> WE WROTE OFF FOR THE GRANT FOR SPECIFICALLY THAT PURPOSES.
IT'S BEEN WRITTEN AND APPROVED FOR THAT PURPOSE.
>> IS THAT AN ONGOING GRANT THAT WE SHOULD RECEIVE INDEFINITELY?
>> THIS IS OUR THIRD YEAR, WE CAN'T GUARANTEE THAT WE'LL GET IT, BUT WE'VE GOT [OVERLAPPING]
>> THAT'S NOT HOW GRANTS WORK, BUT OKAY.
>> CORRECT. I SUSPECT, AND I MAY BE SPEAKING FOR CHIEF SWENSON ON THAT, BUT I SUSPECT THAT WILL BE SOMETHING THAT HE DOES WANT TO APPLY FOR AS AN ONGOING THING.
>> AS LONG AS THEY HAVE THAT MONEY, WE'LL APPLY FOR IT AND HOPEFULLY, THEY'LL GIVE US SOME.
[00:40:06]
>> [INAUDIBLE] GENERAL COUNSEL HAS SAID THERE IS NO PUBLIC COMMENT. WE'LL MOVE ON.
NEXT AGENDA ITEM IS CONSIDERATION AND POTENTIAL ACTION,
[4. Rules]
ADOPTION OF AMENDED RULES 33.70 THROUGH 72-3376-77 [INAUDIBLE] AT A TEMPORARY LOCATION.>> GOOD MORNING, CHAIRMAN AND COMMISSIONERS. CAN EVERYONE HEAR ME?
>> PERFECT. FOR THE RECORD, I'M MATTHEW CHERRY, SENIOR COUNSEL FOR TABC.
THE FIRST SET OF RULES THAT ARE UP FOR ADOPTION ARE THE AMENDMENTS TO CHAPTER 33, WHICH PERTAIN TO TEMPORARY EVENTS.
AS YOU MAY RECALL FROM THE LAST COMMISSION MEETING, THESE AMENDMENTS PRIMARILY IMPLEMENT SENATE BILL 926 RELATING TO TEMPORARY EVENTS THAT ARE CONDUCTED BY A MIXED BEVERAGE PERMIT HOLDER AT CERTAIN RACING FACILITIES, AS WELL AS SENATE BILL 13.75, WHICH RELATED TO PROVIDING SAMPLES OF DISTILLED SPIRITS AT TEMPORARY EVENTS THAT ARE CONDUCTED BY HOLDERS OF A DISTILLERS AND RECTIFIERS PERMIT.
THE PROPOSED RULES THAT YOU APPROVED AT THE LAST COMMISSION MEETING WERE PUBLISHED IN THE DECEMBER 1ST ISSUE OF THE TEXAS REGISTER.
STAFF DID RECEIVE ONE COMMENT FROM THE TEXAS DISTILLED SPIRITS ASSOCIATION IN SUPPORT OF THE AMENDMENTS.
AS OF NOW, THESE AMENDMENTS ARE READY FOR YOUR ADOPTION.
I'M HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.
I MOVE TO APPROVE ADOPTION OF AMENDED RULES 33.70 THROUGH 72,33.76 77,81, EVENTS OF A TEMPORARY LOCATION AS RECOMMENDED BY STAFF. IS THERE A SECOND?
>> THANK YOU, COMMISSIONER MATT.
THANK YOU. THE NEXT AGENDA ITEM IS CONSIDERATION AND POTENTIAL ACTION ON ADOPTION OF AMENDED RULE 41.25 PROVIDING SAMPLES, DISTILLERS, AND RECTIFIERS PERMIT. ATTORNEY DIAMOND.
>> THANK YOU, MR. CHAIRMAN. GOOD MORNING, COMMISSIONERS.
AGENDA ITEM 4.2 IS CONSIDERATION AND POTENTIAL ACTION ON ADOPTION OF AMENDED RULE 41.25 RELATED TO PROVIDING SAMPLES BY DISTILLER AND RECTIFIERS PERMITTEES.
AS YOU RECALL, THE PROPOSED RULE AMENDMENTS WERE APPROVED FOR PUBLICATION AT OUR LAST MEETING IN NOVEMBER.
AS YOU RECALL ALSO, THE PROPOSED RULE AMENDMENTS ARE FOCUS ON TWO THINGS PRIMARILY.
THEY CLARIFIED THAT DISTILL AND RECTIFIER PERMITTEES WERE AUTHORIZED TO CONDUCT SAMPLINGS AND TASTINGS AT TEMPORARY EVENTS.
THEY ALSO CLARIFIED THAT THESE SAMPLES THAT WERE TAKEN FOR THESE TASTINGS QUALIFIED AS FIRST SALE FOR TAX PURPOSES.
THE PROPOSED RULE AMENDMENTS WERE PUBLISHED IN THE DECEMBER 1, 2023 ISSUE OF THE TEXAS REGISTER.
TABC RECEIVED NO WRITTEN COMMENTS FOLLOWING PUBLICATION AND RECEIVED NO COMMENTS DURING THE PUBLIC COMMENT HEARING ON DECEMBER 14, 2023.
THE ITEM IS NOW BEFORE YOU FOR YOUR VOTE ON THE ADOPTION OF THIS PROPOSED RULE AMENDMENT.
>> ALL RIGHT. I MOVE TO APPROVE ADOPTION OF AMENDED RULE 41.25 PROVIDING SAMPLES OF DISTILLERS AND RECTIFIERS PERMIT AS RECOMMENDED BY STAFF. SECOND?
>> THANK YOU, COMMISSIONER ADKINS. WE'LL NOW VOTE.
>> MOTION CARRIES. NEXT AGENDA ITEM IS CONSIDERATION AND POTENTIAL ACTION ON ADOPTION OF AMENDED RULE 45.117, GIFTS AND ADVERTISING SPECIALTIES.
>> THANK YOU, MR. CHAIRMAN. IF YOU'LL INDULGE ME, I FELT TO INTRODUCE MYSELF FOR THE RECORD.
MY NAME IS MATT DIAMOND, I'M SPECIAL COUNSEL WITH TBC'S GENERAL COUNSEL DIVISION.
ITEM 4.3 ON THE AGENDA IS THE CONSIDERATION AND POTENTIAL ACTION ON ADOPTION OF AMENDED RULE 45.117, GIFTS AND ADVERTISING SPECIALTIES.
THE PROPOSED RULE AMENDMENTS WERE APPROVED FOR PUBLICATION AT OUR PREVIOUS COMMISSION MEETING.
AS YOU RECALL, THE PROPOSED AMENDMENTS ALLOW TBC TO INCREASE
[00:45:03]
OR DECREASE THE TOTAL AMOUNT OF ADVERTISING SPECIALTIES FURNISHED TO YOUR RETAILER AS PERMITTED UNDER ALCOHOL MEMBERS CODE 102.07B BY ORDER OF THE EXECUTIVE DIRECTOR, AS OPPOSED TO FORMAL ADMINISTRATIVE RULE MAKING.THE PROPOSED AMENDMENTS WERE PUBLISHED IN THE DECEMBER 1ST, 2023 ISSUE OF THE TEXAS REGISTER.
TBC DID NOT RECEIVE ANY WRITTEN COMMENTS FOLLOWING PUBLICATION, AND NOR RECEIVED ANY COMMENTS DURING THE PUBLIC COMMENT HEARING ON DECEMBER 14TH, 2023.
THIS MATTER IS NOW BEFORE YOU FOR YOUR VOTE ON THE ADOPTION OF THE PROPOSED RULE AMENDMENT.
>> THANK YOU, MR. DIAMOND. I MOVED TO APPROVE ADOPTION AND AMENDED RULE 45.117, GIFTS AND ADVERTISING SPECIALTIES AS RECOMMENDED BY STAFF. IS THERE A SECOND?
>> COMMISSIONER MAC. WE WILL NOW VOTE.
THE NEXT AGENDA ITEM IS CONSIDERATION AND POTENTIAL ACTION ON ADOPTION OF AMENDED RULE FOR 50.3, MANDATORY COURSE CURRICULUM.
SENIOR COUNSEL CHERRY, PLEASE SIR.
>> THIS AGENDA ITEM IS THE LAST RULE THAT IS UP FOR YOUR CONSIDERATION FOR ADOPTION.
IT'S AN AMENDMENT TO CHAPTER 50 WHICH RELATES TO THE AGENCY'S SELLER SERVER TRAINING COURSE.
THE PROPOSED AMENDMENTS THAT YOU APPROVED AT THE LAST COMMISSION MEETING WERE PUBLISHED IN THE DECEMBER 1ST ISSUE OF THE TEXAS REGISTER.
STAFF DID RECEIVE A COMMENT FROM THE TEXAS RESTAURANT ASSOCIATION OPPOSING SOME OF THE PROPOSED AMENDMENTS, AND STAFF WORKED WITH THE RESTAURANT ASSOCIATION AND THEY ARE IN AGREEMENT WITH MOVING FORWARD WITH AN AMENDMENT TO RULE 50.3, WHICH SIMPLIFIES THE GENERAL PROCESS FOR AGENCY UPDATES TO THE SELLER SERVER TRAINING CURRICULUM.
AT THIS TIME, ALL THAT'S UP FOR ADOPTION IS THE AMENDMENT TO 50.3 AS PUBLISHED IN THE TEXAS REGISTER.
I'M HAPPY TO ANSWER ANY QUESTIONS IF YOU MAY HAVE, BUT OTHERWISE THIS IS READY FOR YOUR CONSIDERATION.
>> YEAH, I JUST WANT TO THANK STAFF FOR WORKING WITH EVERYBODY, INCLUDING ELECTED OFFICIALS AND STAKEHOLDERS, TO GET THIS RIGHT.
I APPRECIATE THE EXTRA WORK, AND I'M HAPPY WITH THE RESULT.
YEAH, ALSO I WOULD ECHO THAT AND JUST SAY THE WILLINGNESS FOR US TO WORK WITH TRA, AND TO RECOGNIZE THAT INDUSTRY IS SUCH A VITAL PART OF THIS PROCESS, AND HAVING IT HERE TO THOSE THAT WE REGULATE IS IMPORTANT, AND IT'S AN IMPORTANT STEP, AND I THINK THAT IS GOVERNANCE AT ITS BEST.
THANK YOU. I MOVE TO APPROVE ADOPTION OF AMENDED RULE 50.3, MANDATORY COURSE CURRICULUM AS RECOMMENDED BY STAFF, IS THERE A SECOND TO THE MOTION.
>> THANK YOU. COMMISSIONER ADKINS. WE WILL NOW VOTE.
THE NEXT AGENDA ITEM IS CONSIDERATION AND POTENTIAL ACTION ON PUBLICATION OF PROPOSED AMENDED RULE 45.4, PRODUCT REGISTRATION REQUIRED.
>> THE FINAL RULE FOR YOUR CONSIDERATION IS A PROPOSED AMENDMENT TO RULE 45.4 RELATING TO PRODUCT REGISTRATION.
THIS PROPOSED AMENDMENT IMPLEMENTS SENATE BILLS 1322 AND 1932 FROM THE 88TH REGULAR SESSION.
SENATE BILL 1322 AUTHORIZED THE SALE OF VINTAGE DISTILLED SPIRITS BY VINTAGE DISTILLED SPIRIT SELLER, AND SENATE BILL 1932 AUTHORIZED THE SECONDARY SALE OF WINE BY WINE COLLECTION SELLER.
REALLY, WHAT THOSE BILLS AUTHORIZED IS INDIVIDUALS THAT ARE GENERALLY COLLECTORS OF OLD, OR MAYBE RARE DISTILLED SPIRITS OR WINE, AND THEY WANT TO HAVE THE ABILITY TO BE ABLE TO SELL TO A RETAILER LIKE A PACKAGE STORE, SO THEN THAT AUTHORIZED RETAILER COULD THEN RESELL THAT PRODUCT DOWN TO A CONSUMER.
CURRENTLY UNDER SUBSECTION A OF RULE 45.4 THAT PROHIBITS ALCOHOLIC BEVERAGES FROM BEING SOLD IN THE STATE PRIOR TO THAT PRODUCT BEING REGISTERED WITH TABC, UNLESS THE SPECIFIC TYPE OF ALCOHOLIC BEVERAGE IS ACCEPTED FROM THE REGISTRATION REQUIREMENT.
GENERALLY, ALL DISTILLED SPIRITS AND WINE ARE REQUIRED TO HAVE A CERTIFICATE OF LABEL APPROVAL,
[00:50:01]
COMMONLY REFERRED TO AS A COLA, THAT'S ISSUED BY THE UNITED STATES ALCOHOL AND TOBACCO TAX AND TRADE BUREAU IN ORDER TO BE REGISTERED WITH TABC, AND THE REGISTRANT MUST ALSO BE AN AUTHORIZED TABC PERMIT T.DUE TO THE NATURE OF THE SPECIFIC TYPES OF DISTILLED SPIRITS AND WINE THAT WERE AUTHORIZED BY THE SENATE BILLS, THOSE PRODUCTS MAY BE INELIGIBLE TO RECEIVE A COLA, AND THE AUTHORIZED SELLERS ARE UNABLE TO CURRENTLY APPLY FOR PRODUCT REGISTRATION, BECAUSE THEY ARE PROHIBITED FROM HOLDING A TABC ISSUED LICENSE OR PERMIT.
THEREFORE, THE CURRENTLY PROPOSED AMENDMENT ADDS PRODUCTS THAT ARE SOLD BY A VINTAGE DISTILLED SPIRIT SELLER, OR A WINE COLLECTION SELLER, TO THE CURRENT LIST OF PRODUCTS THAT DO NOT REQUIRE REGISTRATION WITH THE AGENCY.
STAFF DID PRESENT THESE PROPOSED AMENDMENTS AT A STAKEHOLDER MEETING ON DECEMBER 7, 2023 AND RECEIVED NO COMMENTS.
THAT CONCLUDES THE RULES THAT ARE UP FOR YOUR CONSIDERATION, AND I'M HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE.
>> EXCELLENT. I THINK THAT IS A GREAT EXAMPLE ALSO OF THE COLLABORATION OF THIS AGENCY AND THE LEGISLATURE AND STAKEHOLDERS, BECAUSE IF YOU'RE NOT FAMILIAR WITH THE BILL, BASICALLY IT ALLOWS US TO RECEIVE REVENUE THAT WE WOULD NOT OTHERWISE GET.
HERE BEFORE IN THE PAST, IF YOU WERE A COLLECTOR OF VINTAGE WINES AND YOU WANTED TO SELL IT, YOU'D HAVE TO SELL IT THROUGH AN AUCTION HOUSE TYPICALLY IN NEW YORK CITY, AND NEW YORK WOULD GET ALL THE REVENUE.
SO WE FINALLY CAME TO THE REALIZATION THAT WE HAVE ENORMOUS QUANTITIES OF VINTAGE WINE IN THE STATE, THAT IF AN INDIVIDUAL WANTS TO SELL THAT, ESPECIALLY AN ESTATE FOR EXAMPLE, WE NOW HAVE THE ABILITY TO SELL THAT WITHIN THE STATE OF TEXAS, CAPTURE THAT REVENUE, AND PREVENT IT FROM GOING ELSEWHERE.
I THINK IT WAS IT WAS A TERRIFIC COLLABORATION BETWEEN INDIVIDUALS, BETWEEN OUR CONSTITUENTS, BETWEEN THE LEGISLATURE AND THIS BODY, AND WE SPECIFICALLY RECEIVED KUDOS FROM THE SENATOR FOR OUR ASSISTANCE IN ADVISING HIS STAFF WITH THAT BILL.
THANK YOU EVERYONE IN THE AGENCY BECAUSE THAT WAS SOMETHING THAT DIDN'T WORK FOR A LONG TIME.
ANY OTHER COMMENTS? YOU WANT A WINE YOU WANT TO SELL? [LAUGHTER] I MOVE TO APPROVE PUBLICATION.
GOOD JOB EXPLAINING THAT, MR. CHERRY. THANK YOU.
>> I MOVE TO APPROVE PUBLICATION OF PROPOSED AMENDED RULE 45.4, PRODUCT REGISTRATION REQUIRED AS RECOMMENDED BY STAFF.
IS THERE A SECOND TO THIS MOTION?
>> THANK YOU, COMMISSIONER MAC.
THE NEXT AGENDA ITEM IS EXECUTIVE SESSION, AND AS WE HAVE NO ITEMS TO DISCUSS, WE WILL NOT GO INTO EXECUTIVE SESSION, AND THERE WERE NO ITEMS TO DISCUSS.
NEXT IS THE ANNOUNCEMENT OF OUR NEXT MEETING DATE.
[6. Closing Items]
NEXT SCHEDULED COMMISSION MEETING DATE IS PLANNED FOR TUESDAY, MARCH 26, 2024.COMMISSIONERS, ANY ISSUES WITH THAT DATE?
>> I DO, BUT THAT'S OKAY. YOU CAN MEET WITHOUT ME.
>> [OVERLAPPING] THAT WOULD BE THE 26TH [INAUDIBLE].
WE HAVE SOME ISSUES ON THAT DATE.
DO WE HAVE TO DECIDE ON THAT DATE NOW?
>> OKAY. CAN WE CIRCLE UP LATER AND FIND OUT A CONVENIENT DATE THAT WON'T BE FORCED?
>> OKAY. COMMISSIONER MARINO, DOES THAT WORK FOR YOU? WE'LL GET BACK WITH AN ALTERNATE DATE.
>> YES, BUT YOU DON'T HAVE TO MOVE IT IF I'M THE ONLY ONE THAT CAN'T MAKE IT.
>> WELL, WE WOULD BE GLAD TO MOVE IT FOR YOU.
[00:55:05]
NEXT IS ADJOURNMENT. TIME IS NOW, GO BACK TO CENTRAL TIME, IS 11:26, AND WE ARE ADJOURNED.THANK YOU ALL LADIES AND GENTLEMEN, THANKS FOR BEING HERE.
>> THANK YOU EVERYONE. GREAT JOB ON THE MEETING. VERY EFFICIENT.
>> BYE BYE.
* This transcript was compiled from uncorrected Closed Captioning.