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OKAY. SO OUR FIRST AGENDA ITEM IS CALL TO ORDER.

[1. Opening Items]

[00:00:04]

THE TIME IS 10:31 ON TUESDAY, MAY 14TH, 2024.

WE HAVE A QUORUM. ON BEHALF OF ALL OF US AT THE TABC, I'D LIKE TO WELCOME EVERYONE HERE.

I'M KEVIN LILLY, CHAIRMAN, TEXAS ALCOHOLIC BEVERAGE COMMISSION, AND THIS IS A THIS IS A GREAT TIME.

IT'S A GREAT TIME OF YEAR.

I'M CURIOUS HOW MANY PEOPLE HAD A LOVED ONE FAMILY, FRIEND, FRIEND, UNCLE, NEPHEW, CHILD THAT GRADUATED THIS LAST WEEK OR WILL? ANYBODY? ALL RIGHT.

I'VE GOT MY LAST DONE.

CROSSED THE STAGE.

THERE WAS A DIPLOMA IN THERE.

YOU ALWAYS HAVE TO DOUBLE CHECK.

SO FOR THOSE OF YOU THAT HAD CHILDREN OR LOVED ONES THAT GRADUATED, CONGRATULATIONS.

IT'S AN ENORMOUS ACHIEVEMENT.

BUT IT'S ALSO REFLECTIVE OF THE TRANSITION THAT'S GOING ON RIGHT NOW.

BECAUSE AS THE SCHOOL YEAR ENDS, YOU KNOW, MANY PEOPLE'S LIVES SLOW DOWN, BUT OUR LIVES SPEED UP BECAUSE ALL OF A SUDDEN WE HAVE A PLETHORA OF KIDS AND TEENAGERS AND COLLEGE KIDS THAT ARE BACK HOME SPREADING OUT ALL OVER THE STATE.

AND SO OUR AGENTS ARE WORKING EXTRA, EXTRA HARD TO HELP OVERSEE AND PROTECT AND SERVE THE 60,000 LICENSED ESTABLISHMENTS THAT WE HAVE.

AND ALSO OUR LICENSING PERSONNEL.

I DON'T KNOW WHAT IT IS ABOUT SUMMER, BUT PEOPLE LIKE TO GET BUSINESSES GOING, AND THIS IS A GREAT TIME IN OUR INDUSTRY.

RIGHT? THIS IS A PEAK PERIOD OF THE YEAR FOR OUR BUSINESS.

AND SO OUR LICENSING FOLKS ARE DOING AN EXTRAORDINARY JOB.

WHEN I JOINED THIS COMMISSION IN 2017, IT TOOK LONGER TO GET A LICENSE THAN TO GET A MORTGAGE.

IT WAS UP TO 60 DAYS AND THAT WAS AN AVERAGE NUMBER.

BUT THANKS TO THE GREAT WORK OF OUR EXECUTIVE STAFF, OF OUR AIMS SYSTEM, OF OUR, OF OUR LICENSING PERSONNEL, WE'VE CUT THAT IN HALF.

AND WHILE THAT DOESN'T SOUND LIKE A LOT, THE AMOUNT OF CAPITAL THAT YOU HAVE TO PUT OUT TO OPEN A RESTAURANT OR BAR IS HUGE.

AND EVERY DAY THAT YOU'RE NOT GENERATING REVENUE, YOU'RE LOSING MONEY.

AND SO THE FASTER WE CAN GET BUSINESSES IN BUSINESS, THE FASTER THEY CAN EMPLOY PEOPLE, THE FASTER THEY CAN GENERATE REVENUES.

AND SO IT IS CRITICAL THAT WE CONTINUE TO WORK TOWARD GETTING PEOPLE IN BUSINESS FASTER.

WE PROTECT THEM ONCE THEY'RE IN BUSINESS, WE REGULATE THEM ONCE THEY'RE IN BUSINESS.

BUT GETTING THEM IN BUSINESS IS AN EXTRAORDINARY JOB AND OUR LICENSING FOLKS DO A GREAT JOB WITH THAT.

SO FOR THOSE OF YOU IN THE LICENSING DIVISION THAT ARE HERE TODAY, WE THANK YOU VERY MUCH.

I ALSO ALWAYS LIKE TO RECOGNIZE THIS TIME OF YEAR, ESPECIALLY OUR PORTS OF ENTRY PEOPLE.

IT'S GETTING HOT ON THE BORDER AND IT'S JUST GOING TO GET HOTTER.

AND YET EVERY DAY WE HAVE 100 PROFESSIONALS ON THE BORDER.

24 OVER SEVEN.

THAT IS A HUGE JOB AND IT'S A TOUGH JOB.

THE ENVIRONMENT IS UNPLEASANT AND SOMETIMES THEY HAVE TO DEAL WITH UNPLEASANT SITUATIONS.

SO JOHN, ALWAYS THANK YOU FOR THE GREAT JOB THAT YOUR PEOPLE DO AT PORT OF ENTRY.

AND WE JUST APPRECIATE THEIR SERVICE VERY MUCH.

ALL RIGHT. LET'S GIVE GRATITUDE FOR THE GREAT COUNTRY THAT WE LIVE IN BY STARTING WITH OUR PLEDGE OF ALLEGIANCE.

PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

ALL RIGHT. I WOULD ALSO BE REMISS IN NOT GIVING A WORD OF GRATITUDE TO A COMMISSIONER WHO HAS NOW LEFT US.

JASON BOATRIGHT HAS SERVED HONORABLY AND PROFESSIONALLY AS A MEMBER OF THIS COMMISSION FOR A NUMBER OF YEARS.

HIS CONTRIBUTIONS HAVE BEEN SIGNIFICANT, AND WE WISH HIM WELL AS HE MOVES ON TO BE COMMISSIONER OF THE TEXAS RACING COMMISSION.

SO, COMMISSIONER BOATRIGHT, THANK YOU VERY MUCH.

GODSPEED AND GOOD LUCK IN YOUR NEW ASSIGNMENT.

SO WITH THAT, WE WILL NOW MOVE TO THE APPROVAL OF THE COMMISSION MEETING MINUTES OF MARCH 26, 2024.

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

WE WILL NOW VOTE.

[00:05:13]

MINUTES ARE APPROVED AS WRITTEN OUR VOTES HAVE BEEN RECORDED.

I'D ALSO LIKE TO RECOGNIZE OUR TWO COMMISSIONERS THAT ARE COMING IN REMOTELY.

COMMISSIONER MARINO, SAN ANTONIO, WELCOME.

ALWAYS GREAT TO HAVE YOU HERE.

AND, COMMISSIONER MACK GREAT TO SEE YOU REMOTELY AS WELL.

AND COMMISSIONER ADKINS, AS YOU MAY KNOW, CAME IN FROM EL PASO LAST NIGHT.

SO WE ALWAYS IT'S NOT A SHORT TRIP.

SO WE APPRECIATE YOU COMING.

THANK YOU SIR. HAPPY TO BE HERE.

ALL RIGHT. NEXT AGENDA ITEM WILL BE THE EMPLOYEE SERVICE AWARD.

[2. Recognitions]

OUTSTANDING 30 YEARS OF SERVICE, DIRECTOR FLETCHER, IF YOU PLEASE, MA'AM.

ALL RIGHT. GOOD MORNING, CHAIRMAN LILLY.

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

AND TODAY I'M PRESENTING AN EMPLOYEE SERVICE AWARD.

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

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

FOR EVERY FIVE YEARS OF CUMULATIVE SERVICE, WE GIVE A SERVICE AWARD TO RECOGNIZE THE EMPLOYEE AND CELEBRATE THEIR MILESTONE.

WE HAVE AN ENGRAVED PLAQUE IF IT'S 25 AND ABOVE, OR A PAPER SIGNED CERTIFICATE IF IT'S 20 OR BELOW.

THEY EACH GET A SERVICE COIN AND A LAPEL PIN RESPECTIVE TO THEIR SERVICE YEAR MILESTONE.

SO TODAY I HAVE THE HONOR OF RECOGNIZING AN EMPLOYEE FROM PORTS OF ENTRY.

SO IF CHIEF RENEY WOULD JOIN ME AND MR. JULIAN HOOPER.

DONATE THE BUTTON, PLEASE.

JULIAN HOOPER JOINED THE TABC PORTS OF ENTRY DEPARTMENT IN APRIL 1994 AND WAS STATIONED FIRST IN EL PASO.

AFTER FIVE MONTHS OF SERVICE, HOOPER WAS ABLE TO TRANSFER TO HIS HOMETOWN OF EAGLE PASS.

HOOPER IS AN ACTIVE MEMBER OF THE ACTS COMMUNITY AT SAINT JOSEPH'S CATHOLIC CHURCH.

HE'S BEEN MARRIED TO HIS WIFE, PATRICIA, WHO'S HERE TODAY FOR 33 YEARS.

THEY ALSO HAVE A SON, JULIAN ALEXANDER.

HOOPER ENJOYS VISITING HIS SON AND FUTURE DAUGHTER IN LAW IN SAN ANTONIO, ALONG WITH THEIR THREE GRAND DOGGIES, BERKEY, TRIXIE AND DAISY BERKLEY.

SORRY. HOOPER'S FOREVER GRATEFUL OF THE OPPORTUNITY TO WORK FOR THE AGENCY FOR THE PAST 30 YEARS, AND PLANS TO BE PART OF THE TABC FAMILY FOR A COUPLE MORE YEARS UNTIL RETIREMENT. CONGRATULATIONS, SIR.

[APPLAUSE] THANK YOU.

THANK YOU FOR YOUR 30 YEARS.

THANK YOU. REAL QUICK, EVERYBODY.

JULIAN HOOPER REGULATORY COMPLIANCE OFFICER, STATIONED IN EAGLE PASS, HIS DUTY TO THE PUBLIC TO THE PEOPLE OF THE STATE OF TEXAS IS FANTASTIC.

DONE A GREAT JOB FOR 30 YEARS, AND IT'S MY PLEASURE TO GIVE HIM THIS 30 YEAR AWARD.

THANK YOU.

WELL, I THINK HE'S STILL ON HIS WAY, I DON'T THINK HE'LL BE HERE.

IS YOUR WIFE HERE? PATRICIA. COME ON UP.

PATRICIA. COME ON. COME ON UP.

AND, MISS HOOPER, THANK YOU FOR.

THANK YOU FOR PUTTING UP WITH HIM.

[LAUGHTER] SHE SAID SHE WAS GOING TO KEEP DOING THAT.

YEAH. RIGHT HERE GUYS.

ON THREE. 123.

THERE YOU GO. THANK YOU.

COMMISSIONERS, THANK YOU, THANK YOU SO MUCH.

THANK YOU. YES.

THANK YOU. THANK YOU SO MUCH.

ALL RIGHT.

YES. WE ARE SO GRATEFUL FOR ALL OF OUR PROFESSIONALS WHO WORK THE BORDER EVERY DAY.

IT'S SUCH AN IMPORTANT JOB.

WE CAN'T SHOW ENOUGH GRATITUDE FOR THOSE FOLKS, SO THANK YOU.

CHAIRMAN. I THINK WE COULD GET A PICTURE OF WHEN HIS SON GETS HERE.

YEAH. OF COURSE. FROM OUR COMMISSION MEETING.

YEAH. OR WHENEVER HE GETS HERE.

GREAT. MAKE IT HAPPEN.

THANK YOU SIR. THANK YOU. WE CAN DO THAT.

ALL RIGHT. THE NEXT AGENDA ITEM WILL BE THE LAW ENFORCEMENT SUPPORT RECOGNITION AWARDS.

CHIEF SWENSON.

THANK YOU SIR.

[00:10:01]

GOOD MORNING, CHAIRMAN, COMMISSIONERS.

I'M GOING TO ASK THAT LIEUTENANT RICK BAILEY COME UP WITH ME.

HE'S GOING TO HELP ME THIS MORNING.

FOR THE RECORD, MY NAME IS RON SWENSON.

I'M THE CHIEF OF ENFORCEMENT.

THANK YOU FOR HAVING US THIS MORNING.

BEFORE WE START, WE'RE GOING TO SHOW A SHORT VIDEO THAT I'D LIKE TO RECOGNIZE THE COMMUNICATIONS DIVISION PUT TOGETHER FOR US.

IT'S REALLY FANTASTIC WORK.

IT REPRESENTS SOME OF THE FANTASTIC EMPLOYEES THAT WE NOT ONLY HAVE IN THE ENFORCEMENT DIVISION, BUT OUR COMMUNICATIONS TEAM.

THEY PUT TOGETHER A REALLY GOOD VIDEO THAT WE PLAN TO USE FOR FUTURE RECRUITMENT.

AND JUST TO HIGHLIGHT SOME OF THE GREAT WORK THAT WE DO, IT WILL SUMMARIZE BASICALLY WHAT THIS RECOGNITION AND AWARDS ARE ABOUT.

SO THUMBS UP JOE.

CALLS ARE MONITORED. YOU'RE BASICALLY ENSLAVED TO THESE PEOPLE.

AND THAT WAS A COMMON THEME OVER AND OVER WITH MOST OF OUR VICTIMS ON THIS CASE.

THAT ADMISSION IN A MCALLEN FEDERAL COURTROOM TODAY.

A BUSINESS OWNER ADMITTING TO FORCING A TEENAGER INTO SEX WORK AT THE BUSINESS SHE OWNED.

65 YEAR OLD RITA MARTINEZ.

SHE AT ONE TIME OPERATED A BAR IN THE MISSION AREA AND HAD SEVERAL NAMES, BUT AS LOUNGE, RITA'S LOUNGE AND RITA'S SPORTS BAR.

THE FEDS SAY SHE FORCED A 16 YEAR OLD MEXICAN GIRL WHO LIVED WITH HER TO PERFORM SEX WORK, AND THEY SAY IT HAPPENED BETWEEN SPRING OF 2005 AND FALL OF 2006. PROSECUTORS ALSO SAY MARTINEZ'S SON, GENARO FUENTES, PLAYED A ROLE IN THAT CRIME.

HE PLEADED GUILTY BACK IN JANUARY.

IT'S A GOOD FEELING KNOWING THAT RITA AND HER SON GENARO ARE APPARENTLY IN JAIL.

IT LETS US KNOW THAT WE WERE ABLE TO WORK WITH THE DISTRICT ATTORNEY'S OFFICE AND DEPARTMENT OF JUSTICE.

I'M AN UNDERCOVER AGENT ASSIGNED TO THE SPECIAL INVESTIGATION UNIT WITH THE TEXAS ALCOHOLIC BEVERAGE COMMISSION.

WHAT IT WAS LIKE INVESTIGATING A CASE LIKE THIS.

IN ONE WORD, IT'S COMPLEX.

AT THE BEGINNING OF THE INVESTIGATION, WHICH STARTED IN JANUARY OF 2018, WE STARTED OUT WITH JUST ONE SIMPLE ALLEGATION.

WE CONDUCTED A BASIC PRELIMINARY INTERVIEW.

FROM THERE, WE DECIDED AN INVESTIGATIVE PATH, WHICH LED US TO CORROBORATING HER INFORMATION AND IDENTIFYING MORE VICTIMS. AT THIS POINT, WE IMMEDIATELY STARTED WORKING WITH MULTIPLE LAW ENFORCEMENT AGENCIES TO CONTINUE AND FURTHER THIS INVESTIGATION.

MY NAME IS EDDIE GUERRA AND I AM THE SHERIFF OF HIDALGO COUNTY.

YOU KNOW, HUMAN TRAFFICKING HAS NO PLACE IN THIS COUNTY.

THERE'S NO PLACE IN TEXAS.

THE RESULT OF THIS CASE SENDS A VERY STRONG MESSAGE THAT HIDALGO COUNTY, TEXAS ALCOHOLIC BEVERAGE COMMISSION, OUR STATE PARTNERS, OUR FEDERAL PARTNERS ARE ALL GOING TO COME AFTER YOU.

I FEEL THAT OUR AGENCY DID AN AMAZING JOB ON THIS CASE.

IT WAS A DIFFICULT PROCESS.

SOME VICTIMS WERE VERY HESITANT AND STILL TO THIS DAY, VERY FEARFUL AND SCARED OF THEIR TRAFFICKERS.

THROUGH PROPER COMMUNICATION, WORKING WITH VICTIM SPECIALISTS, IT LED US TO BUILD A RAPPORT.

WE WERE ABLE TO SPEAK TO THE VICTIMS AFTER THE SENTENCING, AND WE RECEIVED THE MOST SINCERE THANK YOU'S AND GRATITUDE, AND THAT IS QUITE REWARDING.

AGAIN TO. [APPLAUSE] THANK YOU.

AND AGAIN, TO TO REITERATE WHAT WAS SAID IN THAT VIDEO.

FIRST OF ALL, THANK YOU TO THE COMMUNICATIONS TEAM FOR PUTTING TOGETHER SUCH A FANTASTIC VIDEO.

SECOND TO REITERATE WHAT WAS SAID, THIS WAS A VERY COMPLEX CASE.

A LITTLE OVER FIVE YEARS, HAD A LOT OF MOVING PARTS.

IT WOULD NOT HAVE BEEN POSSIBLE WITHOUT OUR TASK FORCE PARTNERS, PRIMARILY THE FBI HIDALGO COUNTY AND SEVERAL OTHERS.

IT IT REALLY SPIDERWEBBED OUT INTO SO MANY DIFFERENT AREAS THAT IT WAS NECESSARY FOR US TO NETWORK WITH THEM.

AND THAT IS WHY WE ARE HERE TODAY TO RECOGNIZE SOME OF THOSE PRIMARY PARTNERS.

WHAT I'M GOING TO DO IS I'M GOING TO CALL UP FIVE PEOPLE WHERE WE'RE GOING TO GIVE THEM THANKS AND ISSUE SOME AWARDS LIEUTENANT [INAUDIBLE] WILL HELP ME WITH AS THEY COME UP MAKING SURE THAT THEY GET UP THERE.

AND IT'D BE GREAT IF WE TOOK SOME PICTURES.

NEXT SLIDE, PLEASE, AS I CALL YOUR NAME.

[00:15:01]

WILL YOU PLEASE COME UP AND LIEUTENANT BAILEY WILL HELP YOU GET YOUR PLAQUE.

FIRST, WE'D LIKE TO RECOGNIZE CASSANDRA RAMIREZ.

SHE IS AN FBI ANALYST.

SHE WAS PART OF THE INVESTIGATION FROM BEGINNING TO END.

SHE WAS INSTRUMENTAL IN LOCATING AND IDENTIFYING 40 PLUS VICTIMS AND WITNESSES IN MEXICO AND THE UNITED STATES.

THANK YOU, CASSANDRA. [APPLAUSE] NORMA CAMPOS. SHE IS AN FBI LANGUAGE SPECIALIST.

SHE MONITORED JAIL CALLS AND MAINTAINED VERBATIM RECORDS.

SHE FURTHER TRANSLATED COUNTLESS AUDIO RECORDINGS AND MAIL, WHICH UNCOVERED VITAL FACTS TO FURTHER THE INVESTIGATIONS AND ENSURED THE VICTIMS SAFETY.

THANK YOU NORMA. [APPLAUSE] NEXT IS VERONICA BERNAL.

SHE IS AN FBI VICTIM SPECIALIST.

SHE WAS CRUCIAL TO ESTABLISHING INITIAL RAPPORT WITH THE VICTIMS AND MAINTAINING THEIR TRUST.

MISS BERNAL PROVIDED NECESSARY REFERRALS AND ASSISTED WITH THE REUNIFICATION OF FAMILIES.

THANK YOU, VERONICA. [APPLAUSE] AND NOW TWO OF OUR INTERNAL EMPLOYEES.

I WOULD LIKE TO STATE RACHEL WELLINGTON.

SHE ACTUALLY USED TO BE A EMPLOYED BY A NON-GOVERNMENTAL ORGANIZATION.

IT'S FUNNY HOW THINGS COME FULL CIRCLE.

SHE WAS THE REPRESENTATIVE FOR THE REFUGEE SERVICES OF TEXAS, WHO INITIALLY LOCATED SOME OF THESE VICTIMS AND MADE THE REFERRAL TO TABC.

SHE NOW WORKS FOR US.

THANK YOU, RACHEL WELLINGTON.

[APPLAUSE] AND DEFINITELY LAST BUT NOT LEAST OUR LEAD AGENT ONORIO PELAYO.

HE IS A TABC SIU AGENT AGENT, BUT HE IS ALSO AN FBI TASK FORCE OFFICER, WHICH REALLY MADE THE NETWORKING POSSIBLE.

HE WAS THE DRIVING FORCE BEHIND THE INVESTIGATION.

HE ORCHESTRATED THE INVESTIGATION BY DECIPHERING THE INFORMATION RECEIVED FROM TEAM MEMBERS, INTERVIEWS, WITNESSES AND SUSPECTS.

AGENT PELAYO ALSO COORDINATED WITH STATE AND FEDERAL PROSECUTORS.

I HAVE BEEN A COP FOR ALMOST 30 YEARS, AND I WILL SAY THAT I DON'T KNOW IF I'VE MET A BETTER DETECTIVE INVESTIGATOR POLICE OFFICER THAN ONORIO PELAYO, HE DOES FANTASTIC WORK.

[APPLAUSE] AND ONE LAST.

OR ACTUALLY, I'D LIKE TO BRING TWO MORE PEOPLE UP, IF I MAY, LIEUTENANT MEJIA, OF COURSE.

OUR FBI ASSISTANT SPECIAL AGENT IN CHARGE, JASON HUDSON, IS HERE TODAY.

HE IS THEIR DIRECT SUPERVISOR, BUT IT WOULD NOT BE POSSIBLE WITHOUT HIS SUPPORT.

THANK YOU, JASON.

[APPLAUSE] ABSOLUTELY. AND WHEN WE STARTED THIS INVESTIGATION MANY YEARS AGO, THE SPECIAL INVESTIGATIONS UNIT ONLY HAD ONE LIEUTENANT.

AND THAT LIEUTENANT THAT STARTED IT IS ALSO HERE TODAY.

HE IS ALSO ON OUR HALL OF HONOR, NICK GUTIERREZ.

NICK, WHERE DID YOU GO? I LOST YOU.

NICK. NICK, COME UP HERE.

COME UP HERE, NICK.

[APPLAUSE] [INAUDIBLE] IN STARTING THIS INVESTIGATION AND MORE IMPORTANTLY, STARTING THE SPECIAL INVESTIGATIONS UNIT, WHICH RESULTED IN A LOT OF THE WORK THAT YOU SEE HERE TODAY.

THIS IS A CASE THAT WAS NEAR AND DEAR TO MY HEART.

RITA IS PROBABLY ONE OF THE MOST EVIL PEOPLE I'VE EVER HAD THE UNFORTUNATE PRIVILEGE OF MEETING.

I'M VERY HAPPY TO SAY THAT.

THAT SHE'S GOING TO SPEND THE NEXT 30 YEARS OF HER LIFE IN JAIL, AND SHE DESERVES EVERY MINUTE OF THAT.

AND IT'S THANKS TO ALL THESE PEOPLE STANDING HERE.

SO. SO THANK YOU TO EVERYONE, I APPRECIATE IT.

THANK YOU. [APPLAUSE] IF WE GET THE PEOPLE WITH THE AWARDS UP TO THE FRONT.

YEAH. AND THEN EVERYBODY ELSE JUST RIGHT BEHIND THEM.

THANK YOU GUYS. THANK YOU. THANK YOU, THANK YOU, THANK YOU.

THANK YOU.

[APPLAUSE]

[00:20:03]

CHIEF THANK YOU FOR THAT.

AND I'D ALSO, AGAIN, I'D LIKE TO EXPRESS OUR SINCERE GRATITUDE TO THE FEDERAL BUREAU OF INVESTIGATION.

YOU KNOW, WE SOMETIMES YOU HEAR STORIES WHERE STATE AGENCIES AND FEDERAL AGENCIES DON'T GET ALONG.

I DON'T THINK THAT'S EVER BEEN AN ISSUE WITH THE FBI.

AND OUR RELATIONSHIP WITH YOU ALL HAS BEEN LONG STANDING.

IT HAS BEEN INCREDIBLY COLLABORATIVE.

WE WORK WELL TOGETHER WITH YOU, AND WE KNOW THAT ON A NATIONAL STAGE YOU FOLKS ARE THE ONES ON THE WALL PROTECTING OUR NATION AS WELL AS OUR STATE.

AND SO WE ARE INDEBTED TO THE INCREDIBLE EFFORTS THAT THE FBI PROVIDES, NOT JUST HERE IN TEXAS, BUT THROUGHOUT THE COUNTRY. AND SO WE'RE GRATEFUL FOR YOU.

AND ALSO, WE'RE GRATEFUL FOR OUR EMPLOYEES WHO WORK SO SEAMLESSLY WITH OUR FEDERAL PARTNERS, WHETHER IT'S THE FBI, WHETHER IT'S THE DOJ, WHETHER IT'S HOMELAND SECURITY, OFFICE OF SECRETARY OF STATE, ETC..

SO IT TAKES AS YOU CAN SEE FROM THIS, IT TAKES A LOT OF PEOPLE TO PUT BAD PEOPLE AWAY.

AND, YOU KNOW, WE GO THROUGH A PROCESS.

IN THIS COUNTRY WE'RE STILL INNOCENT UNTIL PROVEN GUILTY.

SO SOME OF THESE PEOPLE, AS VILE AND EVIL AS THEY ARE, THEY ARE ENTITLED TO DUE PROCESS.

AND SO IT TAKES SOME TIME.

AND WE HAVE A LOT OF INVESTIGATION IS A TOUGH JOB.

A LOT OF, YOU KNOW, T'S HAVE TO BE CROSSED AND I'S HAVE TO BE DOTTED, AND SOMETIMES YOU HAVE TO START ALL OVER AGAIN FROM THE BEGINNING.

SO WE'RE JUST SO GRATEFUL THAT YOU GUYS KEPT AT IT AND THAT YOU WERE NOT DISSUADED BY TIME OR BY COMPLICATIONS.

AND TWO REALLY BAD PEOPLE ARE IN JAIL BECAUSE OF WHAT YOU DID AND THINK OF ALL THE YOUNG LADIES THAT HAVE BEEN SAVED FROM THIS HORROR BASED UPON YOUR EFFORTS.

I JUST CAN'T I FROM THE BOTTOM OF MY HEART, I THANK YOU GUYS VERY MUCH.

COMMISSIONERS, ANY OTHER COMMENTS OR THOUGHTS? THANK YOU. I HAVE A COUPLE OF QUICK COMMENTS.

IF I MAY. YES, INDEED.

FIRST OF ALL, THANK EVERYONE.

BECAUSE THIS WAS A LONG TIME COMING WHEN THE GOVERNOR FIRST TASKED THIS AGENCY TO REALLY LEAN INTO HUMAN TRAFFICKING AND WORK WITH OTHER AGENCIES TO DO THAT.

MY QUESTION IS, AND POSSIBLY TO CHIEF SWENSON OR WHOEVER WANTS TO ANSWER THIS, THE VIDEO IS DONE REALLY WELL.

MY QUESTION IS, HOW DO WE PLAN TO USE THAT COMMUNICATION? A GREAT QUESTION, COMMISSIONER.

MY PLAN IS TO USE IT IN HUMAN TRAFFICKING TRAINING.

WE ARE FREQUENTLY REQUESTED BY NCMEC, THE NATIONAL CENTER FOR MISSING AND EXPLOITED CHILDREN.

HHSC HAS REQUESTED US TO TEACH AT SOME OF THEIR CONFERENCES ON HUMAN TRAFFICKING.

SO I PLAN TO USE IT SPECIFICALLY AS A TOOL FOR TRAINING OTHER PEACE OFFICERS, OTHER PEOPLE THAT MIGHT BE INVOLVED IN FIGHTING HUMAN TRAFFICKING.

I HAVEN'T I WOULD NEED TO TALK PROBABLY WITH THE EXECUTIVE TEAM TO SEE IF IT'S SOMETHING WE COULD USE FOR RECRUITMENT.

I DON'T THINK THERE'S ANYTHING SENSITIVE IN THERE THAT I AM CONCERNED ABOUT, BUT IT MIGHT BE A GOOD RECRUITMENT TOOL ALSO, PROBABLY A LITTLE TOO LONG, BUT SOMETHING THAT MAYBE WE COULD SHORTEN AND PUT ON SOCIAL MEDIA JUST TO HIGHLIGHT SOME OF THE INVESTIGATIONS THAT WE ARE CAPABLE OF DOING.

COMMISSIONER, DO YOU HAVE ANY THOUGHTS, COMMISSIONER MARINO? YES. AND THEN MY OTHER FOLLOW UP IS IN THE PLANNING STAGES OF HAVING TO PUT SOMETHING LIKE THIS TOGETHER. THERE'S A LOT OF RESOURCES THAT I RECALL US AS TALKING ABOUT WHEN WE ARE ABLE TO IDENTIFY A VICTIM AND EXTRACT THEM FROM THAT SITUATION, THAT THERE IS SOME WRAPAROUND SERVICES THAT WE CAN CONNECT THEM TO SO THAT THEY CAN START THEIR PROCESS OF HEALING.

AND WHILE THAT REALLY WASN'T MENTIONED IN THE VIDEO AND IT MAY OR MAY NOT NEED TO BE.

I WOULD LIKE TO, AT SOME POINT IN TIME, MAYBE REVISIT THAT TO MAKE SURE THAT WE'RE STILL IN LINE WITH ALL OF THOSE RESOURCES, BECAUSE WE WILL BE THE FIRST ONES ON THE GROUND.

AND WITH EVERYTHING THAT HAS BEEN IDENTIFIED WITH NONPROFITS AND OTHERS IN THEIR WORK AROUND THIS.

I JUST WANT TO MAKE SURE THAT WE'RE STILL GOING TO BE IN ALIGNMENT WITH THEM AND BE ABLE TO GET THOSE MEN AND WOMEN WHO ARE AFFLICTED BY THE SERVICES THAT THEY NEED.

[00:25:05]

YES MA'AM, I AGREE WHOLEHEARTEDLY.

WE HAVE TWO GRANT FUNDED POSITIONS FROM THE GOVERNOR'S OFFICE FOR VICTIM SERVICES COORDINATORS.

RACHEL WELLINGTON IS ONE OF THEM, AND WE FREQUENTLY TAKE THEM WITH WHEN WE DO OPERATIONS, WHERE WE SUSPECT THAT WE MIGHT ENCOUNTER VICTIMS OF HUMAN TRAFFICKING SO THAT WE HAVE IMMEDIATE RESOURCES ON THE GROUND.

SO WE'RE CONTINUING TO GROW THAT TEAM AND SEE HOW WE CAN IMPROVE IT.

BUT IT'S WORKED OUT WELL.

RACHEL WELLINGTON WAS WAS ONE OF THEM.

WE STOLE HER FROM ONE OF THOSE NGOS.

I'M VERY HAPPY TO SAY THAT.

AND NOT ASHAMED TO SAY THAT I WILL STEAL GOOD, GOOD EMPLOYEES WHEN THEY CAN BENEFIT TABC.

AND WE'RE SUCCESSFUL IN DOING THAT WITH RACHEL.

EXCELLENT. THANK YOU VERY MUCH.

THANK YOU CHAIR. THANK YOU. THANKS, CHIEF.

THANK YOU. ALL RIGHT.

THE NEXT AGENDA ITEM WILL BE AIMS UPDATE.

[3. Reports]

DEPUTY DIRECTOR SANCHEZ, IF YOU PLEASE.

GOOD MORNING. GOOD MORNING.

GOOD MORNING CHAIRMAN, COMMISSIONERS, MY NAME IS LAURI SANCHEZ.

I'M THE DEPUTY DIRECTOR OF ITD, AND I'LL BE PRESENTING YOUR AIMS UPDATE.

SO WE'LL START WITH THE BUSINESS TRANSACTIONS THAT HAVE BEEN CONDUCTED IN AIMS SINCE IT WENT LIVE THROUGH MAY 6TH.

SO WE'VE HAD APPROXIMATELY 39,000 ORIGINAL APPLICATIONS SUBMITTED, APPROXIMATELY 77,000 RENEWAL APPLICATIONS, 72,000 PRODUCT REGISTRATIONS, AND 23,000 ACCOUNT BUSINESS TRANSACTIONS.

AND JUST AS A REMINDER, ACCOUNT BUSINESS TRANSACTIONS ARE THINGS LIKE CHANGE OF TRADE NAME, CHANGE OF LOCATION, OR OTHER SELF-SERVICE TRANSACTIONS.

WE CONTINUE TO WORK ON COMPLETING PHASE TWO SCOPE.

SINCE MARCH, THERE HAS NOT BEEN ANY NEW FUNCTIONALITY THAT'S BEEN IMPLEMENTED, BUT WE CONTINUE TO WORK ON THE EXPUNGEMENT FUNCTIONALITY, WHICH ALLOWS TABC USERS TO EXPUNGE DATA BASED ON LEGAL ORDER, AND THE OPEN RECORDS REQUEST FUNCTIONALITY, WHICH ALLOWS USERS TO EXTRACT INFORMATION TO FULFILL OPEN RECORDS REQUESTS.

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

SO FOR EACH CHALLENGE, A REALIZED RISK, WE FOCUS ON HIGH IMPACT AND HIGH PROBABILITY ITEMS. THIS APPROACH HAS ALLOWED AIMS TO CONTINUOUSLY BE DEVELOPED BY CONSTANTLY EVALUATING RISKS, EVALUATING IMPACT ON STAFF AND INDUSTRY, AND CONSIDERING BUDGET LIMITATIONS.

SO SOME OF THE CURRENT KEY CHALLENGES THAT RELATE TO AIMS PHASE TWO ARE THE DESIGN REQUIREMENTS AND EXPECTATIONS.

SO THERE'S OPPORTUNITY FROM BOTH THE VENDOR AND TABC SIDE TO IMPROVE ON THIS POINT DEVELOPMENT QUALITY, VENDOR QUALITY ASSURANCE TESTING.

AND SO WE'VE TAKEN SOME ACTIONS TO ADDRESS THESE CHALLENGES THAT WE'VE ENCOUNTERED.

SO THE VENDORS CONDUCTING SHADOW SESSIONS WITH OUR END USERS TO UNDERSTAND DEFECTS FIRSTHAND.

THE EXECUTIVE TEAM HAS BEEN MEETING WITH THE VENDOR TO DISCUSS CHALLENGES AS THEY OCCUR, THE VENDORS REVISING THEIR QUALITY ASSURANCE PLAN, AND THIS WILL BE REFLECTED IN THE CONTRACT AMENDMENT.

AND THEN WE'RE WORKING TO REVISE THE REQUIREMENTS AND DESIGN PROCESS FOR PHASE THREE, WHICH WILL ALSO BE UPDATED IN THE CONTRACT AMENDMENT.

AS WE TRANSITION INTO PHASE THREE, WE ARE MAKING CHANGES TO OUR INTERNAL PROCESSES TO ENSURE THE SUCCESS FOR AIMS FOR STAFF AND INDUSTRY.

SO WE'RE WORKING ON COMPLETING PHASE TWO SCOPE.

WE'VE CREATED AN ALL INCLUSIVE IT PROJECT GOVERNANCE COUNCIL CALLED THE TECHNOLOGY PROJECT OVERSIGHT COUNCIL, OR INTERNALLY WHAT WE REFER TO AS TPOC.

THIS TPOC REVIEWS, PRIORITIZES AND MAKES DECISIONS ON ALL IT PROJECTS, INCLUDING AIMS THEY REVIEW, RISKS AND POTENTIAL CHANGE REQUESTS, AND THIS COUNCIL HAS PRIORITIZED AND CONTINUES TO PRIORITIZE AIMS PHASE THREE SCOPE.

AND AS A RESULT OF AN INTERNAL AUDIT AND THIRD PARTY VENDOR RISK ASSESSMENT, WE CONTINUE TO REVISE OUR VENDOR MANAGEMENT.

AND THESE REVISIONS WILL BE REFLECTED IN THE CONTRACT AMENDMENT AS WELL AS OUR PROJECT PROCESSES.

AND THIS WILL PROVIDE [INAUDIBLE] WITH OUR VENDOR.

WE CONTINUE TO WORK ON REVISING THE COMMUNICATION PLAN, WHICH WILL CLEARLY IDENTIFY WHAT WILL BE COMMUNICATED, WHO WILL BE COMMUNICATED TO AND BY WHOM FOR BOTH STAFF AND INDUSTRY.

AND WE CONTINUE TO WORK ON IDENTIFYING FUNCTIONALITY ENHANCEMENTS.

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

AND THEN LASTLY, WE HAVE STARTED WORKING WITH THE INDEPENDENT VERIFICATION AND VALIDATION VENDOR, WHO WILL PROVIDE A THIRD PARTY, IMPARTIAL ASSESSMENT OF THE PROCESS AND PRODUCT USING INDUSTRY STANDARD BEST PRACTICES.

AND THEY WILL DETERMINE IF THE PRODUCT FULFILLS THE REQUIREMENTS OF EACH SOFTWARE DEVELOPMENT LIFE CYCLE PHASE.

AND THEY DETERMINE IF WE RECEIVE WHAT WAS AGREED UPON.

SO FOR PHASE THREE SCOPE, WE HAVE IMPLEMENTED ONE ENHANCEMENT FOR THE COMPLIANCE REPORTING APPLICATION THAT ALLOWS TEN LICENSE AND PERMIT SUBORDINATE COMBINATIONS THE

[00:30:02]

ABILITY TO COMPLETE AND SUBMIT COMPLIANCE REPORTS.

INITIALLY, THEY WERE NOT ABLE TO DUE TO A LITTLE BIT OF AN OVERSIGHT, BUT WE GOT THEIR FUNCTIONALITY IN THERE TO SUBMIT.

AND THEN CURRENTLY WE'RE WORKING ON PAYMENT PROCESSING ENHANCEMENTS, WHICH INCLUDE AUTOMATING A MANUAL PAPER CHECK PROCESS AND MONEY MATCHING, AND ADDITIONAL MODIFICATIONS TO THE CREDIT ENTRY CREDIT ENTRY FUNCTIONALITY, WHICH INCLUDE THINGS LIKE EDIT AND DELETE CAPABILITIES. SO MOVING ON TO PLANNED PHASE THREE SCOPE.

SO THINGS THAT ARE UPCOMING.

THERE'S A FEW FUNCTIONS THAT IMPACT INDUSTRY SPECIFICALLY.

AND SO THAT WOULD BE THE CASH CREDIT LAW FUNCTIONALITY THAT ALLOWS DISTRIBUTORS AND WHOLESALERS TO REPORT CASH AND CREDIT LAW VIOLATIONS ON RETAIL LICENSEES.

THE RETAIL LICENSEES WILL BE NOTIFIED THE RESPECTIVE VIOLATIONS THROUGH AIMS, AND THE FUNCTIONALITY WILL ALLOW TABC TO MANAGE THE VIOLATIONS THAT HAVE BEEN REPORTED.

THEN WE HAVE ORDER MANAGEMENT, WHICH ALLOWS THE ABILITY TO INTAKE ORDERS FOR PRIVATE CLUB MEMBERSHIP CARDS FOR PRIVATE CLUB LICENSEES.

AND THEN LASTLY, WE HAVE AN ENHANCEMENT TO THE CITY COUNTY DATA UPDATE FUNCTIONALITY.

SO THIS IS UPDATES TO THE SYSTEM SUMMARY AND THE LAYOUT TO FURTHER SUPPORT CURRENT CITY AND COUNTY COMPTROLLER CERTIFICATION PROCESSES.

AND THEN FOR THE REMAINING SCOPE ITEMS LISTED HERE THEY PRIMARILY AFFECT INTERNAL STAFF FUNCTIONALITY DIRECTLY AND IT ALSO INDIRECTLY, WILL CREATE EFFICIENCIES FOR INDUSTRY.

AND THOSE ITEMS ARE THE AUDIT CASE WORKSHEET INTEGRATION, EXCISE TAX RECONCILIATION, ANOMALY DETECTION, AUTOMATED REFUND WORKFLOW, BOND GROUPING, MANAGEMENT, RECORD RETENTION, AUTOMATED MANAGEMENT REVIEW AND THEN CASE MANAGEMENT REFINEMENT.

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

JUST SOME ADDITIONAL FEEDBACK.

WE HAD OUR MAJOR IT PROJECT COMMITTEE MEETING THIS MORNING.

ONE OF OUR INDUSTRY MEMBERS MARK, IS ACTUALLY HERE TODAY, AND I'M HAPPY TO REPORT THAT WE WERE JUST GETTING VERY, VERY POSITIVE FEEDBACK FROM THE INDUSTRY MEMBERS AS FAR AS THE AIMS SPACING SIDE OF IT.

STILL A FEW TWEAKS, AND I KNOW WE'RE WORKING ON THAT.

WE'RE COMMUNICATING WITH THE INDUSTRY AS WE FIND SOME ISSUES, WE'RE ADDRESSING THOSE AS QUICKLY AS POSSIBLE.

I KNOW THAT THIS PHASE TWO, WHICH IS ALL MORE INTERNAL FACING IT, IS A TREMENDOUS UNDERTAKING.

AND WE'RE ABSOLUTELY GOING TO HAVE CHALLENGES.

THAT'S TO BE EXPECTED.

BUT I'M VERY IMPRESSED BY THE COMMITMENT FROM THE TEAM TO MOVE FORWARD WITH THIS AND MAKE IT HAPPEN.

I KNOW THAT THIS CAN BE FRUSTRATING FOR STAFF.

ANY CHANGE OF THIS MAGNITUDE IS GOING TO BE DIFFICULT.

BUT AGAIN, I SEE THAT WE'RE MANAGING THROUGH THIS EXTREMELY WELL.

AND I'M JUST I'M VERY IMPRESSED WITH THE ENTIRE TEAM AS THEY MOVE FORWARD INTO THIS.

AND WE LOOK AT AT PHASE THREE.

SO THANK YOU.

THANK YOU FOR THE FEEDBACK. ALL RIGHT.

THANK YOU, MA'AM. WELL DONE.

THE NEXT AGENDA ITEM WILL BE THE FY 24 BUDGET REPORTING CFO SWAN.

WELCOME SIR. THANK YOU SIR.

GOOD MORNING. GOOD MORNING.

GOOD MORNING. I AM CONRAD SWAN FOR THE RECORD AT CHIEF FINANCIAL OFFICER, AND I AM HERE TO GIVE YOU A BUDGET UPDATE.

THE AS OF.

I WEAR MY EMOTIONS ON MY FACE.

YEAH RIGHT.

[LAUGHTER] ON THAT TITLE PAGE THERE, YOU MIGHT HAVE SEEN THAT IT SAYS AS OF APRIL THE 18TH.

THAT IS NOT A TYPO.

WE NORMALLY SHOW YOU DATA AS OF THE END OF A MONTH, BUT WE HAD TO DRAW A LINE IN THE SAND TO PREPARE FOR THIS MATERIAL.

PREPARE FOR THIS PRESENTATION.

SO THAT WAS OUR LINE IN THE SAND.

I DIDN'T WANT TO SPEAK TO MAY 31ST DATA SITTING HERE, AND I'M SORRY TO MARCH 31ST DATA SITTING HERE IN MAY.

I GOT IT, I UNDERSTAND.

ALL RIGHT, SO SOMETIMES YOU LIKE TO, THOUGH, RIGHT? I DO. I'D LIKE TO BURY THE [INAUDIBLE] ESPECIALLY.

NO KIDDING. YEAH.

OKAY, SO LET'S JUMP IN AND SHOW YOU YOUR BUDGET BY STRATEGY.

I'D LIKE TO SHOW YOU THE BOTTOM LINE FIRST, AND THEN WE'LL WORK OUR WAY BACKWARDS.

SO SITTING THERE AT YOUR CURRENT BUDGET, YOU GOT A $65.3 MILLION BUDGET.

THE LAST TIME I SHOWED YOU SOME BUDGET MATERIALS WAS IN JANUARY, AND THAT BUDGET WAS ALSO $65.3 MILLION.

SO THAT JUST GOES TO SAY WE HAVEN'T CHANGED OUR BUDGET.

THE CHANGE THAT YOU SEE IS REALLY SLIGHT.

IT'S THOUSANDS OF DOLLARS.

IT'S $3,000.

THAT'S THE MOVEMENT FROM JANUARY TO NOW.

AND THAT'S AS EXPECTED BECAUSE WE ARE IN THE FIRST YEAR OF A BIENNIUM.

SO YOU DON'T SEE THINGS LIKE UB COMING INTO THE YEAR AND MAKING THAT BUDGET MOVE.

YOU DON'T SEE GRANTS, NEW GRANTS, THINGS LIKE THAT FIRST YEAR OF THE BIENNIUM.

THAT BEING SAID, THIS REPORT, YOU'RE SEEING A REMAINING BALANCE AFTER YOU ACCOUNT FOR YOUR OBLIGATIONS OF 56.9 OF $8.3 MILLION.

[00:35:08]

THE LAST TIME YOU SAW THIS PRESENTATION, IT WAS SOMEWHERE IN THE NEIGHBORHOOD OF TEN.

SO THAT'S SHOWING EVIDENCE THAT WE'RE EXPENDING MONEY.

WE'RE MOVING THINGS FROM REMAINING BUDGET INTO ENCUMBRANCES.

AND SO THAT NUMBER SHOULD BE WALKING ITS WAY DOWN.

SO 8.3 IS OUR REMAINING BUDGET AT APRIL 18TH.

I'M GOING TO TALK A LITTLE MORE ABOUT THAT STUFF AS WE GET INTO SOME OF THE OTHER PAGES.

BUT FIRST LET'S JUST POINT OUT OUR PERCENTAGE OF OBLIGATIONS.

WE'RE 80% OBLIGATED.

WE'RE 60 ISH PERCENT THROUGH THE YEAR AT THAT APRIL MARK.

SO WE'RE AHEAD OF SCHEDULE.

SO I'D LIKE TO SEE THAT NUMBER WITH 12% REMAINING.

YOUR BUDGETS BETWEEN STRATEGIES HAS ONLY CHANGED VERY SLIGHTLY.

NOTHING OF NOTE.

SO YOU GOT ABOUT $31.7 MILLION SITTING IN ENFORCEMENT AS A CURRENT BUDGET COMPLIANCE, 7 MILLION 11.6 IN IT.

ALL RIGHT. SO LET'S JUMP INTO SOME WEEDY INFORMATION HERE.

SO THIS IS SHOWING YOU THAT SAME BUDGET YOU CAN SEE AT THE BOTTOM LINE THERE'S YOUR $65.3 MILLION.

IT'S JUST BREAKING IT OUT INTO YOUR BUDGET CATEGORIES I'M GOING TO GIVE A QUICK CALL BACK BEFORE WE START LOOKING AT THAT 8.3 REMAINING BALANCE TO OUR PRESENTATION TO YOU LAST COMMISSION MEETING, WE STARTED TALKING ABOUT A CALENDAR OF EVENTS.

AND IN THAT CALENDAR OF EVENTS WE TALKED ABOUT FORECASTING, WHICH IS US TRYING TO PULL OUT OUR CRYSTAL BALL AND PREDICT WHERE OUR EXPENSES ARE HEADED, HOW MUCH MONEY MIGHT FALL OUT OF THE OPERATING BUDGETS THAT WE'VE GIVEN TO EACH DIVISION? WHAT CAN WE DO TO SPEND THOSE FUNDS TO THE BEST OF OUR ABILITIES FOR THE SAKE OF THIS AGENCY? THAT IS STUFF THAT WE JUST WRAPPED UP, WE'VE SET WITH EACH DIVISION.

SO WE HAVE A GOOD IDEA OF WHAT THAT $8.3 MILLION IS, WHAT MIGHT BE SPENT.

AND SO JUST TO GET YOU READY FOR THE FUTURE, YOUR NEXT REPORT, WE HOPE TO START MOVING THAT FUNDS AROUND.

SO YOU'LL SEE A PRESENTATION THAT SHOWS THIS IS WHERE WE THINK THAT 8.3 WILL BE SPENT.

BUT LET'S TALK ABOUT THAT 8.3.

WE'RE NOT TRYING TO SPEND 8.3.

WE DON'T HAVE A LACK OF IDEAS OF WHERE THAT 8.3 IS GOING TO BE SPENT.

WE KNOW A LOT OF WHAT THAT IS.

YOU JUST HEARD LAURI SPEAKING TO THE IT TRANSFORMATION PROJECT, AND HOW THERE'S SOME ADDITIONAL SCOPE THAT'S LEFT TO BE DONE.

THAT'S ABOUT $2.7 MILLION IN THAT 8.3 REMAINING BUDGET.

SO YOU CAN SORT OF WALK THAT OUT, GOING, WE ALREADY KNOW WHERE THAT MONEY IS GOING TO BE SPENT.

YOU ALSO CAN SEE ON THAT ONE TIME LINE THERE'S A $2 MILLION NUMBER THERE.

WE TALK ABOUT THAT BEING OUR SALARIES, SALARY LAPSE ACTUALLY.

SO THAT'S VACANT SALARIES FROM SEPTEMBER THROUGH APRIL THAT WENT UNSPENT, THAT WE NOW HAVE PULLED IN THAT ONE TIME LINE SO THAT WE CAN BEGIN TO EVALUATE HOW DO WE PIVOT, WHAT CAN WE BUY FOR THIS AGENCY OR HOW CAN WE SPEND THAT FOR THIS AGENCY? SO THAT'S A PART OF OUR FORECASTING AND OUR PLANNING FOR SPENDING.

SO WHEN YOU TAKE THAT $2 MILLION OUT OF THE EQUATION, WE WERE AT 8.3.

WE TALKED ABOUT 2.7 OF IT.

WE'RE TALKING ABOUT $2 MILLION FROM SALARY LAPSE.

THERE'S ANOTHER 300 K FOR OUR CYBERSECURITY THAT'S UNSPENT.

ONCE YOU START TAKING THAT OUT, THAT'S $5 MILLION WORTH OF STUFF THAT COMES OUT OF THAT 8.3.

IN ADDITION TO THAT, YOU CAN SEE THAT 1001 LINE, THE 1002 LINE.

THERE'S SOME PROJECTED REMAINDERS THERE THAT'S ADDING UP TO ABOUT $1.3 MILLION AS WELL.

THAT IS THINGS LIKE OUR OVERTIME THAT WE HAVE FOR OUR GRANTS.

WHEN WE WERE IN EL PASO CHAIRMAN LILY, YOU WERE ASKING SOME QUESTIONS ABOUT THAT.

YOU CAN SEE THAT REMAINING BALANCE IS FOR OUR GRANT OVERTIME.

A PIECE OF IT IS THERE FOR THAT PURPOSE.

YOUR OTHER PERSONNEL COSTS, THOSE THINGS GET SPENT WITH PAYROLL.

I WHOLLY EXPECT THAT 560 TO GET SPENT AS WE MOVE FORWARD FROM HERE.

BUT YOU CAN ALREADY START TO TAKE THAT OUT OF YOUR 8.3.

IF WE START DOING ALL OF THAT MATH, WE'RE TALKING ABOUT A MUCH SMALLER NUMBER.

THAT'S A REMAINING BALANCE THAT WE REALLY START TO HAVE TO START THINKING THROUGH ABOUT WHAT THAT WILL BE AT 831, HOW MUCH WE SHOULD START TO PIVOT NOW AT 831. AND THAT'S A NUMBER CLOSER TO $2 MILLION.

SO NOT TO PANIC.

WE'RE NOT SITTING ON THREE MONTHS LEFT IN THE YEAR THINKING ABOUT HOW TO SPEND 8.3.

IT'S MORE LIKE WE'RE SITTING WITH THREE MONTHS OF THE YEAR THINKING ABOUT $2 MILLION THAT WE NEED TO THINK THROUGH.

AND JUST A REAL QUICK REMINDER, WE TALK ABOUT THINGS THAT ARE IN THE REMAINING BALANCE THAT NEVER GET ENCUMBERED.

THEY ONLY MOVE OUT ONCE THEY'RE EXPENDED JUST TO POINT THOSE THINGS OUT.

YOU'VE GOT THINGS LIKE FUEL AND LUBRICATION.

SO AS WE MAINTAIN OUR VEHICLES, AS WE'RE PUTTING MILES AND FUEL AND YOU'LL SEE THAT NUMBER MOVE YOUR TRAVEL, IT MOVES AS WE ARE REIMBURSING PEOPLE FOR THEIR TRAVEL.

[00:40:02]

SO THERE'S JUST A FEW LITTLE ITEMS IN THAT FIGURE THAT WON'T LEAVE.

WE WON'T ENCUMBER IT.

IT WILL MOVE AS EXPENSES HAPPEN.

SO YOU MAY SEE IT THERE THROUGH 831.

THE LAST SLIDE I WANT TO SHOW TO YOU ALL IS JUST YOUR CAPITAL BUDGETS.

SO YOUR CAPITAL BUDGET SLIDE IS SITTING AT $12.9 MILLION.

IF YOU WERE TO LOOK BACK AT YOUR LAST PRESENTATION, IT IS THAT EXACT NUMBER.

WE HAVEN'T MOVED IT BY EVEN A DOLLAR.

ALL OF YOUR PROJECTS, YOUR BOTTOM LINE IS STILL THE EXACT SAME.

THE ONLY THING THAT'S CHANGING IS OUR OBLIGATIONS, HOW MUCH WE SPENT.

BUT I WANT TO AGAIN FOCUS YOUR ATTENTION BECAUSE OF OUR FORECASTING EXERCISES ON THOSE REMAINING BALANCES.

GIVE YOU AN IDEA OF WHERE WE'RE HEADED.

THAT $241,000 THAT YOU SEE IN PC REFRESH, WE EXPECT A CHUNK OF THAT TO GET SPENT.

I'VE ALREADY SEEN AN ENCUMBRANCE COME THROUGH THAT'S GOING TO PUT A DENT IN THAT NUMBER.

IT'S JUST THE CADENCE OF THINGS.

SOMETIMES THINGS PAY EQUALLY THROUGHOUT THE MONTH.

SOME THINGS PAY EARLY.

SOME THINGS PAY IN THE SUMMER.

THIS YEAR, PC REFRESH IS JUST ONE OF THOSE THINGS THAT WE'RE DOING DURING THE SUMMER.

AND SO YOU'LL SEE THAT NUMBER COME DOWN.

HARDWARE, SOFTWARE AGAIN, IT'S A LITTLE TOO EARLY TO CALL.

I DO EXPECT THAT WE'LL HAVE SOME CADENCE OF HARDWARE, SOFTWARE, THINGS THAT COME THROUGH, BUT I EXPECT TO SEE THAT NUMBER REDUCED.

PUBLIC SAFETY EQUIPMENT.

OUR FRIENDS AND ENFORCEMENT HAVE SOME REALLY GOOD SPEND PLAN IDEAS FOR THAT.

I'M EXPECTING TO SEE THAT 105 SPEND.

AND THEN WE TALKED ABOUT CYBERSECURITY.

WE TALKED ABOUT IT TRANSFORMATION.

THESE THINGS ARE IN OUR CAPITAL BUDGET.

SO WE DO HAVE AUTHORITY IN THE GAA TO TAKE THIS MONEY AND MOVE IT FORWARD, COMMISSIONERS.

SO IT'S NOT A QUESTION OF WHAT WE SPEND BY 8-31.

IN ACTUALITY, IT'S WHAT WE CAN [INAUDIBLE] FORWARD.

WHATEVER GOES UNSPENT, WE WILL MOVE IT INTO 25 AND THEN IT BECOMES A QUESTION OF, OKAY, WHAT CAN WE REALISTICALLY ACCOMPLISH BY 8-31 OF 2025? SO LOOKING AT THIS 3.5 REMAINING BALANCE IN CAPITAL BUDGETS, JUST KEEP IN MIND WE HAVE SOME AUTHORITY WHERE WE CAN CARRY THESE BALANCES FORWARD WHATEVER THEY END UP BEING.

AND FINAL POINT, JUST ANOTHER CALLBACK TO OUR PRESENTATION WHERE WE BROUGHT UP OUR CALENDAR.

WHEN WE TAKE ALL OF THESE THINGS INTO ACCOUNT, THAT CALENDAR THAT WE SHOWED YOU IN THE LAST PRESENTATION, WE TALKED ABOUT THE BASE RECONCILIATION AND GETTING A NUMBER FOR THE LAR.

SO WHAT YOU'RE SEEING IN THIS REPORT, WE'RE GOING TO HAVE THAT $65.3 MILLION REPORTED EXTERNALLY TO THE LBB THROUGH OUR BASE RECONCILIATION PROCESS.

SO THIS IS CONSISTENT WITH WHAT YOU'LL SEE IN SOME OTHER REPORTS.

WE'RE GOING TO SHOW 24'S EXPECTATION IS TO SPEND ABOUT $65.3 MILLION.

AND MAYBE WE'LL ACTUALIZE THAT DOWN THE ROAD WITH SOME UB'S AND 24'S NUMBERS COME DOWN.

BUT JUST THAT'S JUST A CALLBACK TO THAT CALENDAR THAT WE WERE TALKING ABOUT.

AND WITH THAT, THAT ENDS MY PREPARED REMARKS, AND I AM HAPPY TO TAKE ANY QUESTIONS IF YOU HAVE ANY.

THANK YOU. ALL RIGHT.

THANK YOU, MR. SWAN. YOU'RE VERY WELCOME.

ONE OF THE BIGGEST COMPLAINTS THAT GOVERNMENT AGENCIES RECEIVE IS THAT WE ARE TAX FUNDED.

THAT MEANS THE MONEY THAT RUNS THIS OPERATION ARE MONEY THAT COME FROM THE CITIZENS OF THE STATE OF TEXAS, JUST LIKE OUR FEDERAL PARTNERS.

FEDERAL TAXES GO TO RUN YOUR OPERATION.

AND SO IT IS INCUMBENT, THEREFORE, UPON US TO HAVE METRICS, TO HAVE PERFORMANCE MEASURES TO BASICALLY GIVE THE PEOPLE WHO WE SERVE A REPORT CARD ON HOW WE'RE DOING.

ACCOUNTABILITY, LADIES AND GENTLEMEN, IS A HALLMARK OF NOT ONLY THE CIVILIAN SECTOR, BUT ALSO THE GOVERNMENT SECTOR AS WELL.

AND THAT'S SOMETHING THAT WE TAKE VERY SERIOUSLY AT THIS AGENCY.

AND SO IT'S MY PLEASURE TO HAVE DIRECTOR MORELOCK TALKING ABOUT PERFORMANCE MEASURES.

THANK YOU. I AM MARIANN MORELOCK, DIRECTOR OF STRATEGIC INITIATIVES AND PERFORMANCE IMPROVEMENT.

SO ABOUT A YEAR AGO, SIPI WAS GIVEN A RESPONSIBILITY FOR REPORTING ON AND SETTING TARGETS FOR AND MAKING CHANGES TO PERFORMANCE MEASURES. NEXT SLIDE PLEASE.

SO BEFORE I GET INTO PERFORMANCE MEASURES I WANT TO SORT OF SET THE STAGE.

OUR CFO JUST TALKED ABOUT OUR APPROPRIATIONS.

IT'S NOT GIVEN TO US IN A LUMP SUM.

IN FACT THAT FIRST SLIDE OF HIS OUTLINED ALL THE DIFFERENT STRATEGIES, WHICH RELATES BACK TO THE BUDGET STRUCTURE.

THAT'S HOW THE LEGISLATURE APPROPRIATES OUR FUNDS BASED ON OUR BUDGET STRUCTURE, WHICH IS NOT NECESSARILY IN LINE WITH OUR ORGANIZATIONAL STRUCTURE.

THAT CAN CHANGE, BUT THE BUDGET STRUCTURE RARELY DOES.

SO FOR US, GOAL ONE IS ALL ABOUT OUR PUBLIC SAFETY MISSION, OUR COMMISSION PEACE OFFICERS.

GOAL TWO IS FOCUSED ON LICENSING AND PRODUCT REGISTRATION.

AND GOAL THREE IS SPLIT INTO TWO OBJECTIVES.

[00:45:01]

ONE IS FOCUSED ON AUDIT.

SO AUDITS INSPECTIONS INVESTIGATIONS EXCISE TAXES.

AND THEN THE OTHER OBJECTIVE IS PORTS OF ENTRY.

SO PERSONNEL COLLECTING THOSE PERSONAL IMPORTATION TAXES AT PORTS OF ENTRY.

AND GOAL FOUR IS NOT LISTED HERE.

IT IS CENTRAL ADMINISTRATION.

IT IS EVERYTHING ELSE.

THE REASON I DIDN'T PUT IT ON THIS SLIDE IS BECAUSE IT DOES NOT HAVE ANY PERFORMANCE MEASURES, BUT FOR GOALS ONE, TWO AND THREE, AND THEY'RE RELATED TO OBJECTIVES AND STRATEGIES. THEY HAVE PERFORMANCE MEASURES.

IN FACT TABC FOR THIS BIENNIUM HAS 51 MEASURES.

NEXT SLIDE PLEASE. SO SEPTEMBER 1ST, 2023, WE STARTED SPENDING THOSE APPROPRIATED FUNDS THAT WERE GIVEN TO US FOR THE FY 2024, 2025 BIENNIUM AND THROUGHOUT THE BIENNIUM LEGISLATORS AND OTHERS WANT TO KNOW HOW WE'RE DOING.

SO ARE WE SPENDING THOSE FUNDS APPROPRIATELY TO MEET OUR MISSION EFFECTIVELY, EFFICIENTLY? AND ALSO, I WANT TO CONNECT THE DOTS FOR ALL THE COMMISSIONERS.

YOU ALL RECEIVED THESE ON A MONTHLY BASIS IN YOUR COMMISSIONER'S REPORT.

SO THERE'S A TABLE AT THE TOP OF THE LICENSING SECTION AND POE SECTION AND ENFORCEMENT AND AUDIT SECTION.

AND IT LISTS THOSE INDIVIDUAL THOSE PERFORMANCE MEASURES APPLICABLE TO THOSE DIVISIONS.

SO WE REPORT TO THE COMMISSION ON A MONTHLY BASIS, BUT REPORT TO LBB ON A QUARTERLY AND ANNUAL BASIS.

AND PERFORMANCE MEASURES ARE LINKED TO THE APPROPRIATIONS PROCESS THERE IN THE APPROPRIATIONS BILL.

SO IT CAN AFFECT OUR APPROPRIATIONS.

BUT IT IS A REPORT CARD, AS YOU SAID, CHAIRMAN IT COMMUNICATES OUR EFFECTIVENESS AT MEETING THE GOALS, THE OBJECTIVES AND STRATEGIES, IN OUR STRUCTURE. EACH MEASURE HAS THESE EIGHT ELEMENTS THAT DEFINE IT.

NEXT SLIDE PLEASE. SO THIS IS A MEASURE FROM GOAL TWO LICENSING.

AND YOU PROBABLY HEARD US TALK ABOUT THIS BEFORE.

AND IN FACT YOU MENTIONED IT IN YOUR OPENING REMARKS ABOUT AVERAGE TIME IT TAKES US TO ISSUE AN ORIGINAL PERMIT.

I'M GOING TO HIT SOME HIGHLIGHTS ON HERE BECAUSE THERE ARE A LOT OF DETAILS.

BUT THE THIRD ITEM, DATA SOURCE, IS A DESCRIPTION OF WHERE ARE WE PULLING THE DATA.

IS IT AIMS IS IT ARTS, IS IT EXCEL? BIG CHIEF TABLET. WHAT IS IT? WHERE ARE WE CAPTURING THAT INFORMATION.

AND THEN THE METHODOLOGY IS HOW DO WE PERFORM THE CALCULATION.

WHAT'S THE NUMERATOR DENOMINATOR.

ARE WE PULLING FROM OTHER MEASURES.

SO THAT'S THAT DESCRIPTION.

AND THE BOTTOM RIGHT HAND CORNER IS TARGET ATTAINMENT.

SO DO YOU WANT THE NUMBER THAT YOU REPORT TO BE HIGHER OR LOWER.

AND IT'S ALL AROUND A TARGET.

SO ALL OF THESE MEASURES HAS A TARGET WHETHER IT'S A NUMBER A PERCENTAGE RATE AN AVERAGE COST.

AND THOSE TARGETS ARE SET.

EXCUSE ME. I'M GOING TO BACK UP SO THAT THE MEASURE, THE TARGET FOR THIS PARTICULAR MEASURE FOR THIS FISCAL YEAR IS 37 DAYS.

FOR THE FIRST SIX MONTHS OF THIS YEAR, WE'RE HITTING 27 DAYS, SO WE'RE ABLE TO ISSUE A NEW PERMIT IN 27 DAYS, WHICH IS OUTSTANDING.

AND OBVIOUSLY THE TARGET ATTAINMENT IS LOWER.

WE WANT TO BE LOWER THAN THE 37 TARGET AND WE ARE.

PART OF THE REPORTING THAT WE HAVE TO DO ON A QUARTERLY AND ANNUAL BASIS IS IF WE ARE OFF BY 5% FROM THAT TARGET, WE HAVE TO EXPLAIN WHY IT'S CALLED A VARIANCE STATEMENT.

AND SO EVEN THOUGH IT'S QUITE IMPRESSIVE THAT WE'RE WELL BELOW THE MARK, WE HAVE TO EXPLAIN WHY WE'RE DOING SO WELL.

NEXT SLIDE PLEASE.

AND SO TO ASSIST INTERNALLY WITH PROVIDING THOSE STATEMENTS AND UNDERSTANDING THE MONTHLY REPORTS, QUARTERLY REPORTS, ANNUAL REPORTS, WE HAVE THESE INTERNAL SPREADSHEETS.

AND THE FIRST THING WE DID IS FOR THOSE VARIANCE STATEMENTS, WE CAME UP WITH SOME GUIDELINES TO HELP EVERYBODY.

WE ALSO AND IT'S HARD TO TELL FROM WHAT YOU SEE ON THE SCREEN.

BUT YOU SORT OF GOT TO TRUST ME THAT WE THREW OUT THE SPREADSHEET WE WERE USING FOR THE LAST COUPLE OF DECADES AND WORKED WITH THE NEW ONE, AND WE CAN FILTER IT AND WE CAN SORT DIFFERENT WAYS, AND IT HAS FORMULAS IN IT SO THAT WE DON'T HAVE TO DO ALL THE WORK.

AND IT'S JUST EASIER INTERNALLY FOR US TO WORK WITH AND INTERNALLY TO REVIEW.

WHETHER IT'S THE SUBJECT MATTER EXPERT THROUGH THE DIRECTORS CHIEFS UP TO THE DEPUTY EXECUTIVE DIRECTOR AND ED.

SIPI HAS ALSO ESTABLISHED SOME GUIDELINES AND MADE SURE THE RESPONSIBILITIES ARE OUTLINED FOR ALL THE DIFFERENT INDIVIDUALS THAT ARE INVOLVED WITH PERFORMANCE MEASURES.

AND THE AGENCY NOW HAS A POLICY AND PROCEDURE FOR PERFORMANCE MEASURES.

NEXT SLIDE PLEASE. SO ONCE WE FINISH THE TRAINING AND ESTABLISH THOSE FOUNDATIONAL DOCUMENTS, WE STARTED A NEW INITIATIVE.

THIS ONE INVOLVED 20 OR SO MEETINGS, EACH WITH BUSINESS SERVICES DIVISION, ITD DATA SERVICES, SIPI, AND THEN THE SUBJECT MATTER EXPERT, DIRECTOR, AND CHIEF OF THE OPERATIONAL DIVISION ASSOCIATED WITH THE MEASURES THAT WE WERE TALKING ABOUT IN THAT MEETING.

WE HAD SEVERAL GOALS AND WE MET THEM ALL.

THE FIRST ONE WAS WE NEEDED AN INTERNAL DESCRIPTION.

[00:50:01]

SO THE DESCRIPTIONS THAT YOU SEE IN YOUR MONTHLY REPORT, THOSE ARE THE ONES THAT ARE PUBLISHED ON OUR WEBSITE THAT ARE IN THE APPROPRIATIONS BILL THAT LBB APPROVED AND THE GOVERNOR'S OFFICE APPROVED, AND WE CAN'T CHANGE THOSE.

THOSE ARE ESTABLISHED TWO YEARS AGO FOR THIS BIENNIUM.

BUT WE HAVE OUR OWN JARGON.

WE HAVE CERTAIN TERMINOLOGY WE USE WITH RESPECT TO ARTS AND AIMS AND HOW WE CAPTURE INFORMATION.

SO WE NEEDED TO HAVE OUR OWN VERSION OF EACH OF THESE DESCRIPTIONS.

THE EXAMPLE.

THERE ARE TWO EXAMPLES HERE THAT THE BOTTOM ONE, IF YOU CAN READ IT THAT'S THE INTERNAL VERSION.

AND YOU CAN SEE WE HAVE BW, D, GDS, ALL THOSE DIFFERENT ACRONYMS WE USE TO DESCRIBE OUR PERMIT TYPES.

THAT'S INTERNAL, ALTHOUGH WE DO USE THAT IN PUBLIC TOO.

WE TRY NOT TO, BUT SO IT'S JUST USING OUR OWN JARGON TO HELP US UNDERSTAND WHAT IT IS WE'RE REPORTING.

AND WE REPEATED THIS PROCESS FOR ALL 51 MEASURES.

AND THEN THE NEXT THING THAT WE DID WAS TO PREPARE FOR FUNCTIONALITY NAMES.

SO ONE THING THAT THOSE MEASURES THAT WE ARE WORKING WITH NOW, THEY DIDN'T ACCOUNT FOR THE FACT THAT NEW FUNCTIONALITY WOULD BE ROLLED OUT IN AIMS MIDWAY THROUGH THIS FIRST FISCAL YEAR OF THE BIENNIUM, SO THAT NEW FUNCTIONALITY BECAME EFFECTIVE MARCH 1ST.

AND IT'S NOT, YOU KNOW, A SWITCHOVER WE DIDN'T SHUT DOWN ARCH THE OLD SYSTEM AT THE END OF FEBRUARY AND START THE NEW ONE, MARCH 1ST.

IT'S A TRANSITION.

SO WE HAD TO ACCOUNT FOR THAT.

SO WE HAD TO MAKE SURE AND CLARIFY FOR OURSELVES HOW THE NEW TECHNOLOGY WOULD BE ABLE TO GENERATE THE REPORTS THAT WOULD STAY WITHIN THE CONFINES OF THE DESCRIPTIONS THAT WERE PROVIDED TO US FOR THE BIENNIUM.

AND WE WERE ABLE TO DO THAT.

NEXT SLIDE PLEASE. SO ANOTHER GOAL OF THE INITIATIVE WAS TO UNDERSTAND THE RELATIONSHIP BETWEEN THE MEASURES.

THIS IS HARD TO READ AND THIS IS JUST A SNAPSHOT.

BUT YOU CAN SEE A LOT OF ARROWS GOING, A LOT OF DIFFERENT DIRECTIONS.

AND WHAT WE LEARNED IS THAT WE HAVE A DELICATE STACK OF DOMINOES.

AND SO IF ONE MEASURE IS PERFORMING REALLY WELL OR POORLY, THEN IT CAN HAVE A DOMINO EFFECT ON SEVERAL OTHER MEASURES.

SO IT WAS UNDERSTANDING THESE IMPACTS AND HOW SOME OF THESE MEASURES REALLY DEPEND ON OTHERS WAS EYE OPENING FOR ALL OF US.

NEXT UP AND NEXT SLIDE PLEASE.

SO UNDERSTANDING THE MEASURES, THE RELATIONSHIPS BETWEEN THE MEASURES THAT FOR THIS BIENNIUM PREPARED US FOR THE FIRST STEP OF THE STRATEGIC PLAN, WHICH IS TO REQUEST CHANGES TO YOUR MEASURES FOR THE NEXT BIENNIUM.

SO THAT WOULD BE FY 26-27.

SO WE SUBMITTED SOME CHANGES ON APRIL 5TH.

IN FACT, WE SUGGESTED CHANGES TO ALL 51 MEASURES.

AND SOMETIMES IT WAS A SIGNIFICANT CHANGE.

OTHER TIMES IT WAS TO REORGANIZE THE INFORMATION AND TO SIMPLIFY THE LANGUAGE.

BUT THE PART OF THE MOTIVATION BEHIND DOING THAT WAS TO BE TRANSPARENT.

WE WANTED TO MAKE IT CLEAR WHAT WE'RE REPORTING IN THESE MEASURES.

SECONDLY, WE WANTED ANYONE TO BE ABLE TO READ IT AND UNDERSTAND IT, WHETHER THAT WAS INTERNALLY OR TO OUR EXTERNAL STAKEHOLDERS AS WELL.

AND I DON'T THINK THAT HAD HAPPENED IN THE PAST.

SO THERE'LL BE IN THE GOVERNOR'S OFFICE TO LET US KNOW IN THE COMING WEEKS IF THEY APPROVE THE CHANGES OR IF THEY HAVE CHANGES OF THEIR OWN.

AND THE PRELIMINARY FEEDBACK WE RECEIVED IS POSITIVE.

SO. FINGERS CROSSED.

SO ONCE WE GET THE FEEDBACK, WE WILL TAKE THAT INFORMATION, PUT IT INTO THE STRATEGIC PLAN.

SO THOSE WILL BE OUR MEASURES THAT WE WILL LIVE WITH BEGINNING SEPTEMBER 1ST, 2025 FOR THE FY 2627 BIENNIUM.

EACH OF THOSE MEASURES ALSO NEEDS A TARGET, THAT NUMBER, AVERAGE COST PERCENTAGE.

AND SO THAT PROCESS IS ALREADY STARTED FOR US.

WE STARTED IN APRIL, AND WE GAVE EACH OF THE DEPARTMENTS THAT ARE IMPACTED BY PERFORMANCE MEASURES A HISTORICAL LOOK AT THOSE MEASURES SO THAT THEY CAN BETTER DETERMINE WHAT THE TARGETS SHOULD BE FOR THE NEXT BIENNIUM BASED ON THE NEW MEASURES, WHATEVER CHANGES WE MAKE.

AND THAT IS ALL PART OF THE LAR PROCESS.

AND WE BE PROVIDED TO BSD TO SUBMIT IN MID-AUGUST WHEN THE LARS DUE.

AND. THAT IS MY PRESENTATION.

HAPPY TO ANSWER QUESTIONS.

YEAH. THIS IS SO IMPORTANT.

EVERYBODY WANTS TO KNOW HOW THE PROVERBIAL SAUSAGE IS MADE.

AND THIS IS AN OPPORTUNITY FOR US TO BASICALLY HAVE A REPORT CARD TO JUSTIFY WHAT WE ASKED FOR.

SO THANKS. ALL RIGHT.

NEXT UP. OH, SORRY.

I HAVE A QUICK. SORRY.

I HAVE A QUICK COMMENT.

[00:55:01]

FIRST OF ALL, I WANT TO I JUST WANT TO CONGRATULATE DIRECTOR MORELOCK AND THANK HER FOR THE LITERALLY HUNDREDS OF HOURS THAT I KNOW THAT THIS HAS TAKEN.

HER PRESENTATION TOOK ONLY A FEW MINUTES, BUT WHAT SHE DID TO GET TO THIS LEVEL TO REPORT TO US I JUST WANT TO MAKE SURE THAT THAT DOES NOT GO UNNOTICED.

AND HER DEDICATION TO GETTING THIS DONE.

THIS IS GOING TO BE REALLY BIG FOR OUR AGENCY IF ALL THE CHANGES ARE APPROVED AND WE'RE HOPING THAT THEY ARE. SO THAT WHEN WE MEASURED OR THAT WE'RE SCORED, OUR REPORT CARD WILL BE MORE REFLECTIVE, REALLY, OF WHAT IT IS THAT WE'RE ABLE TO ACCOMPLISH AS AN AGENCY.

AND GET BETTER SCORING.

SO I JUST WANT TO MAKE SURE THAT SHE KNOWS HOW APPRECIATED SHE IS.

AND WE LOOK FORWARD TO GETTING SOME POSITIVE FEEDBACK FROM THE LBB HOPEFULLY.

THANK YOU COMMISSION. THANK YOU.

THANK YOU MA'AM. SINCE SHE SAID SOMETHING, CAN I MAKE A COMMENT TOO? SURE. I NEED TO THANK A LOT OF PEOPLE.

I WON'T LIST THEIR NAMES, DON'T WORRY.

BUT BETWEEN BSD, ITD, THE REST OF SIPI.

AND THE DIVISIONS WE HAD EVERYTHING FROM SUBJECT MATTERS ALL THE WAY UP TO THE CHIEFS IN ALL THOSE MEETINGS.

SO EVERYBODY REALLY PUT ATTENTION TO IT, AND THEY WERE DEDICATED TO THE PROCESS.

SO IT WAS DEFINITELY A COLLABORATIVE EFFORT.

THANK YOU. WELL DONE TEAM.

THANK YOU. NEXT AGENDA ITEM WILL BE CONSIDERATION AND POTENTIAL ACTION ON APPROVAL OF THE DRAFT TABC STRATEGIC PLAN FOR FISCAL YEARS 2025 THROUGH 29.

DIRECTOR MORELOCK, THANK YOU.

AND DEPUTY DIRECTOR BEARLEY.

THANK YOU. GOOD MORNING, CHAIRMAN AND COMMISSIONERS.

MY NAME IS CRYSTAL BEARLEY.

I'M THE DEPUTY DIRECTOR OF THE STRATEGIC INITIATIVES AND PERFORMANCE IMPROVEMENT DIVISION.

I WORK WITH MARIANN.

WE ARE PRESENTING TO YOU TODAY THE NEXT FIVE YEAR STRATEGIC PLAN, OUR TABC STRATEGIC PLAN, WHICH WILL BE FY 25 THROUGH 29.

AND THIS WILL BEGIN SEPTEMBER 1ST OF THIS NEXT AFTER THE SUMMER.

AS WE EMBARK ON THE PLANNING PROCESS I KNOW THAT YOU'VE BEEN THROUGH THIS SEVERAL TIMES.

WE DO THIS EVERY EVEN NUMBERED YEAR.

THIS DOVETAILS WITH A LOT OF WHAT YOU'VE HEARD TODAY IN TERMS OF FORECASTING OUR BUDGET AS OUR CFO TALKED ABOUT AND THE INSTRUMENTAL CHANGES WE'RE MAKING TO THE PERFORMANCE MEASURES.

SO THIS IS REALLY OUR OUR OPPORTUNITY TO CONNECT ALL THE DOTS.

WE'VE LOOKED AT OUR OPERATIONAL GOALS AND OBJECTIVES OUR APPROPRIATIONS, EXCEPTIONAL ITEMS THAT WE WANT TO BRING FORWARD.

AND THEN ALIGNING WITH THE STATE WIDE GOALS OF THE LBB AND GOVERNOR'S OFFICE.

ASK OF US.

I WANT TO CLARIFY, BEFORE WE GET STARTED THAT THESE ARE OUR OPERATIONAL GOALS.

MARIANN TALKED ABOUT OUR BUDGETARY GOALS.

THOSE ARE NOT CHANGING FOR THIS BIENNIUM.

SO DON'T DON'T I WANT TO KIND OF MINIMIZE THE CONFUSION ON THAT.

WE ARE MANDATED TO GO THROUGH THIS PROCESS BY THE TEXAS GOVERNMENT CODE AND THE LBB AND, AND GOVERNOR'S OFFICE GIVES US VERY DETAILED INSTRUCTIONS THAT WE FOLLOW THAT INCLUDES TEMPLATES.

SO THE PLAN THAT IS BEFORE YOU IS IN IN IS IN DRAFT FORM.

AND JUST KNOW THAT WE EMBARKED ON THIS PROCESS AS EARLY AS POSSIBLE WHERE WE GOT THE INSTRUCTIONS BACK IN FEBRUARY.

SO WE'VE BEEN WORKING ON THIS FOR A FEW MONTHS.

AGAIN, JUST REITERATING THE DRAFT DOCUMENT IS BEFORE YOU AS WE'RE WAITING ON THE PERFORMANCE MEASURES FEEDBACK.

ONCE WE RECEIVE THAT, THAT WILL BE EMBEDDED IN IN THE DOCUMENT AND PREPARED FOR SUBMISSION.

WE WILL ONCE WE HAVE EVERYTHING AND IT'S FINALIZED AND APPROVED BY YOU, WE WILL SUBMIT IT AS AS REQUIRED AND THEN POST IT ON OUR PUBLIC WEBSITE.

ALONG WITH THAT AT A GLANCE DOCUMENT THAT WAS PROVIDED TO YOU, WHICH WILL MAKE IT EASIER FOR STAFF TO KIND OF DIGEST THE LENGTHY DOCUMENT.

THE NEXT SLIDE IS KIND OF THE STRATEGIC PLANNING PROCESS OF OF WHAT WE WENT THROUGH.

WHEN YOU LOOK BACK AT THE LAW, I KIND OF GIGGLED BECAUSE THIS HAS BEEN IN LAW SINCE THE 1900S.

IT BECAME LAW IN, IN THE EARLY 90S.

BUT KNOWING THAT THE PROCESS HASN'T CHANGED AND THE REQUIREMENTS THAT ARE MANDATED OF US, WE STILL WANTED TO LET YOU KNOW WHAT OUR PROCESS

[01:00:10]

WAS. TO TO GET TO THE POSITION OF HAVING THE DRAFT DOCUMENT.

TO YOU. SO WHAT WE DID, THIS IMAGE HELPS DEPICT THE PROCESS AT A VERY, VERY HIGH LEVEL.

SO THE VERY FIRST THING THAT WE DID, WE ASSESSED OUR PROGRESS OVER THE PAST COUPLE OF YEARS.

WE LOOKED AT WHAT WE WERE DOING.

WELL, WE ASSESSED GAPS AND WEAKNESSES.

WE ASSESSED OPPORTUNITIES AND STRENGTHS.

AND WE ENDED UP HAVING AN OPPORTUNITY TO REFINE THE GOALS AND OBJECTIVES THAT ARE BEFORE YOU.

SO THERE'S FOUR OPERATIONAL GOALS THAT WE'RE GOING TO TALK ABOUT.

I ALSO WANT TO JUST MENTION THE SIGNIFICANT CHANGE OF OUR ORGANIZATION OVER THE PAST TWO YEARS.

AND SO THE PEOPLE WHO COLLABORATED ON THIS WORK PRODUCT, MANY OF THEM WERE NOT IN THEIR ROLE TWO YEARS AGO.

SO THIS IS A SIGNIFICANT REVISION AND UPDATE TO THE PROCESS.

WHEN WE LOOKED AT THE OPERATIONAL GOALS AND WHAT WE WANT TO LOOK FORWARD TO FOR THE NEXT FIVE YEARS, WE ALSO HAD THE OPPORTUNITY TO REFINE OUR MOTTO.

AND SO THE MOTTO IS NOW SUPPORTING BUSINESSES AND PROTECTING TEXANS, WHICH IS JUST CLARIFIED AND REFINED.

VERY SIMILAR TO TO MARIANNE'S REMARKS, IS EACH DIVISION DIVISIONAL DIRECTOR, THEIR DEPUTY, AND OFTENTIMES THEIR MANAGEMENT STAFF CONTRIBUTED TO ALIGNING DETAILED ACTION ITEMS. SO EACH OF OUR FOUR GOALS AND OBJECTIVES HAS ACTION ITEMS ASSOCIATED TO MAKE SURE THAT WE'RE MEETING OUR GOALS AS AS PRESENTED TO YOU. THOSE ACTION ITEMS HAVE DELIVERABLE DATES WITHIN THE NEXT FIVE YEARS, UNLESS THEY'RE ONGOING.

AND THEN WE ESTABLISH INDICATORS OF SUCCESS.

WHAT DOES SUCCESS LOOK LIKE.

SO WE'LL WE'LL TRACK THOSE.

AND THEN LASTLY IN THE CENTER OF THE IMAGE IS OUR ALIGNMENT WITH THE GOVERNOR'S OFFICE AND THE LBB'S STATEWIDE GOALS, WHICH ARE THAT THAT WE ARE ACCOUNTABLE, WHICH CHAIRMAN LILLY SPOKE TO AT THE OPENING REMARKS, THAT WE ARE EFFICIENT, EFFECTIVE, THAT WE'RE CUSTOMER ORIENTED AND THAT WE ARE TRANSPARENT. SO OUR GOALS ALIGN WITH EACH ONE OF THOSE OVERARCHING RESPONSIBILITIES.

THE NEXT SLIDE IS A GLIMPSE INTO KIND OF A TABLE OF CONTENTS THAT YOU SEE WITHIN THE DRAFT DOCUMENT.

THE FIRST SECTION IS OUR STRATEGIC PLAN.

SO WHEN YOU OPEN THE DOCUMENT, YOU SEE OUR MISSION WITH OUR NEW MOTTO.

YOU SEE THE GOALS AND ACTION ITEMS DETAILED SPECIFICALLY THERE FOR YOU.

AND THEN YOU SEE REDUNDANCIES AND IMPEDIMENTS.

DIRECTOR MORLOCK WILL TALK TO YOU MORE ABOUT THAT.

THE SECOND PORTION OF THE STRATEGIC PLAN IS WHAT WE WHAT THE TEMPLATES AROUND THE SUPPLEMENTAL SCHEDULES.

SO THE FIRST ELEMENT THERE IS THE PERFORMANCE MEASURES.

SO THAT IS STILL PENDING AS WE DISCUSSED WHICH IS WHY THE DOCUMENT IS STILL IN DRAFT FORM, WE HAVE A SCHEDULE WHERE WE ARE ALIGNING OUR HISTORICALLY UNDERUTILIZED BUSINESS PLAN WITH THAT OF THE COMPTROLLER.

WE DETAIL OUR WORKFORCE PLAN.

AND INCLUDED IN THE GRAPHICS ARE THE LAST AND NEWEST SURVEY OF EMPLOYEE ENGAGEMENT.

SO THAT IS A SURVEY ADMINISTERED THROUGH THE THROUGH UT.

AND THEN THE REPORT OF CUSTOMER SERVICE, WHICH IS ALSO MANDATED.

THE LAST ELEMENT WHICH IS NEW IS THE CERTIFICATE OF COMPLIANCE WITH CYBERSECURITY TRAINING.

SO WE WILL ATTEST THAT WE ARE IN COMPLIANCE WITH THAT.

AND I'LL TALK MORE ABOUT THAT HERE.

SO THAT'S KIND OF THE TABLE OF CONTENTS AND WHAT THE STRATEGIC PLAN FROM A HOLISTIC PERSPECTIVE LOOKS LIKE.

THE FIRST STRATEGIC GOAL.

AND I'M GOING TO WALK YOU THROUGH THIS SO YOU GET AN IDEA OF HOW THE ACTION ITEMS ALIGN WITH OUR GOALS AND OBJECTIVES.

OUR GOAL NUMBER ONE IS TO PROMOTE COMPLIANCE WITH TEXAS LAWS THROUGH TRANSPARENT AND TIMELY COMMUNICATIONS.

THAT IS A VERY BROAD AND OVERARCHING GOAL.

AND SO WE HAVE OBJECTIVES WITHIN THAT GOAL TO HELP US MEET AND ASSESS BENCHMARKS TOWARD ACHIEVING THAT GOAL.

THIS THE SECOND OBJECTIVE ON THIS SLIDE IS IMPROVE PUBLIC SERVICE ANNOUNCEMENTS AND OTHER COMMUNICATION STRATEGIES TO RELEASE TIMELY AND TRANSPARENT INFORMATION. ONE OF THE ACTIONS THAT THE THAT THE DIVISIONS HAVE BASICALLY WRITTEN DOWN AS AN

[01:05:04]

ACTION ITEM TO ACHIEVE IS WITHIN 2026 FY 2026, WE'RE GOING TO DESIGN AND RELEASE NEW APPROACHES TO RECEIVING CUSTOMER SERVICE SURVEYS AND THEN ACTION ITEMS AROUND WHAT DO WE DO WITH THAT FEEDBACK AND HOW CAN WE MAKE THE AGENCY BETTER AND AND MORE ORIENTED TO CUSTOMER SERVICE? GOAL NUMBER TWO ON THE NEXT SLIDE IS IMPROVE AND SUPPORT A SAFE AND COMPETITIVE TEXAS ALCOHOLIC BEVERAGE INDUSTRY.

THIS THIS GOAL ALIGNS DIRECTLY A PART OF THE STRATEGIC PLAN AS FROM THE AGENCY PERSPECTIVE, IS THAT WE HAVE TO ALIGN OURSELVES WITH THE DEPARTMENT OF INFORMATION AND RESOURCES STRATEGIC GOALS.

AND THIS THIS GOAL DOES THAT.

I WANT TO HIGHLIGHT HERE TWO SIGNIFICANT GOVERNANCE OVERSIGHT COMMITTEES THAT THE AGENCY STOOD UP LAST SUMMER.

THE FIRST IS THE DATA GOVERNANCE PROGRAM WHERE WE HAVE STRENGTHENED OUR DATA OWNERSHIP RESPONSIBILITIES, HOW WE CLASSIFY OUR DATA ACCESS MANAGEMENT TO THE DATA.

AND THIS IS WHERE WE'VE REALLY HONED IN ON OUR CYBERSECURITY TRAINING.

SO ON AN ANNUAL BASIS, WE HAVE CYBERSECURITY TRAINING CAMPAIGNS THAT ALL STAFF TAKE.

AND THOSE THOSE REPORTS AND BENCHMARKS ARE PROVIDED TO THE EXECUTIVE DIRECTOR.

THE OTHER IS KIND OF A TALKING ABOUT WHAT LORI SANCHEZ, DEPUTY DIRECTOR SANCHEZ TALKED ABOUT IS THE TECHNOLOGY OVERSIGHT PROGRAM, WHERE WE PRIORITIZE AS AN ORGANIZATION NEW TECHNOLOGY, EXISTING TECHNOLOGY, AND WE'RE LOOKING AT MITIGATING MITIGATING RISKS OR CONSTRAINTS AS EARLY AS POSSIBLE.

THESE ARE OVERSIGHT MECHANISMS TO TO HELP US BECOME MORE EFFICIENT AND EFFECTIVE WITHIN OUR TECHNOLOGY.

THE THIRD GOAL, AT A VERY HIGH LEVEL IS TO ENHANCE REGULATORY OVERSIGHT AND LAW ENFORCEMENT SERVICES, FOCUS ON PROTECTING PEACE AND SAFETY OF THE COMMUNITIES WE SERVE. AGAIN, WE HAVE OBJECTIVES THAT THAT DETAIL OUT HOW WE'LL MEET THAT GOAL AND ACTION ITEMS WITHIN THE DRAFT PLAN.

AND THEN THE FOURTH GOAL, THE FIRST THREE GOALS YOU WILL NOTICE ARE EXTERNALLY FOCUSED.

HOW ARE WE SUPPORTING THE INDUSTRY AND ENFORCING THE ALCOHOLIC BEVERAGE LAW AND CODE? THIS GOAL IS INTERNALLY FOCUSED.

HOW CAN WE BECOME A BETTER EMPLOYEE, EMPLOYEE, EMPLOYER? HOW CAN WE HAVE LEADERSHIP WITHIN OUR ORGANIZATION THAT ACHIEVES THE EMPLOYEE FIRST MENTALITY? AND SO THIS GOAL IS TO PROMOTE A CULTURE OF EXCELLENCE.

AND AGAIN, THERE'S VERY DETAILED ACTION ITEMS WITHIN THE PLAN THAT THE DIRECTORS HAVE COMMITTED TO.

THIS SLIDE THAT I WANT TO TAKE YOU TO NEXT IS KIND OF HOW WE PUT THE STRATEGIC PLAN PLANNING PROCESS IN MOTION.

AND IT JUST SHOWS YOU HOW WE TOOK THAT FIRST IMAGE, WHICH GIVES YOU THE, YOU KNOW, THE THOUSAND FOOT VIEWPOINT TO REALLY WHAT WE DID.

AND THIS IS AN EXAMPLE OF HOW WE, HOW WE CAME TO GOAL NUMBER FOUR, WHICH IS PROMOTE A CULTURE OF EXCELLENCE, IS WE REALLY STUDIED STAFF'S RESPONSIVENESS TO THE UT ADMINISTERED SURVEY OF EMPLOYEE ENGAGEMENT.

AND WE KNOW THAT THERE'S OPPORTUNITIES FOR US TO BE BETTER.

AND SO WE ESTABLISHED THIS GOAL WHICH AND TEASING DOWN ONE MORE LEVEL OF AN ACTION ITEM IS YOU SEE HERE WE WANT TO PROMOTE A BETTER WORK LIFE BALANCE AND WHAT WE WANT TO GET FROM THAT, OR WHAT WE EXPECT TO SEE FROM THAT IS AN INCREASE IN JOB SATISFACTION. WE WANT TO SEE INCREASE IN RETENTION AND RETAINING THOSE EMPLOYEES THAT ARE SO DESPERATELY HARD TO ACQUIRE.

AND JUST LISTENING TO DIRECTOR FLETCHER WHEN SHE WAS GIVING HER RECOGNITION OF THE 30 YEAR IS WE KNOW THAT OUR EMPLOYEES ARE OUR LARGEST ASSET AND WE CAN'T ACHIEVE ANY OF OUR GOALS OR OBJECTIVES WITHOUT HAVING THE WORKFORCE.

SO THAT'S THAT'S AN EXAMPLE OF HOW DO WE COME UP WITH THE FOUR GOALS [INAUDIBLE].

THE NEXT SLIDE IS DIRECTOR MORELOCK TAKING US THROUGH THE REDUNDANCIES AND IMPEDIMENTS, WHICH IS THE THIRD BULLET OF THE STRATEGIC PLAN.

THANK YOU. SO THE OTHER MAJOR COMPONENT OF THE STRATEGIC PLAN ARE REDUNDANCIES AND IMPEDIMENTS.

SO REDUNDANCIES.

WELL, THIS SECTION IS AN OPPORTUNITY FOR AN AGENCY TO IDENTIFY A STATUTORY PROVISION, A REGULATION, A SERVICE

[01:10:05]

THAT THE AGENCY PERFORMS THAT MERITS ADDITIONAL LEGISLATIVE OR EXECUTIVE REVIEW BECAUSE IT MAY NEGATIVELY IMPACT OUR MISSION.

IT POSES AN ECONOMIC BARRIER OR PRODUCES COSTS FOR STAFF OR THE INDUSTRY THAT WAS NOT EXPECTED WHEN IT WAS FIRST IMPLEMENTED.

SO SOME OF THE REDUNDANCIES AND IMPEDIMENTS THAT WE PLAN TO INCLUDE IN THE STRATEGIC PLAN ARE ONE, TO REMOVE THE OUT OF STATE TRAVEL BAN.

THIS WOULD GIVE THE AGENCY AN OPPORTUNITY TO COLLABORATE WITH OTHER STATE REGULATORS ABOUT BEST PRACTICES AND LESSONS LEARNED.

TAKE ADVANTAGE OF TRAINING OPPORTUNITIES FOR ESPECIALLY FOR OUR LAW ENFORCEMENT COMMUNITY.

AND YES.

SO FOR THE NEXT TWO, THERE ARE SEVERAL PROVISIONS IN THE ALCOHOLIC BEVERAGE CODE THAT ARE ESTABLISHED TO NOTIFY THE COMMUNITY WHEN A NEW APPLICATION IS SUBMITTED FOR A LOCATION.

AND SO AND IT'S TO GIVE THE OPPORTUNITY, GIVE THE PEOPLE THE COMMUNITY AN OPPORTUNITY TO PROTEST AND JUST TO MAKE THEM AWARE.

FOR THIS SECOND BULLET, A LOCATION THAT HASN'T HAD A LIQUOR LICENSE.

A SIGN HAS TO BE POSTED.

IT'S A POSTER SIZE SIGN.

YOU PROBABLY SEEN IT BEFORE, BUT IT HAS TO BE POSTED OUTSIDE THE LOCATION, AND IT HAS TO REMAIN FOR 60 DAYS BEFORE WE'RE ABLE TO ISSUE A PERMIT.

AS WE'VE TALKED ABOUT IN THE PREVIOUS SECTION PREVIOUS AGENDA ITEM WE'RE ISSUING ON AVERAGE 27 DAYS.

SO IN MANY SITUATIONS WE WILL HAVE EVERYTHING READY TO GO IN THAT 27TH DAY, BUT WE HAVE TO WAIT FOR ANOTHER 30 PLUS DAYS BEFORE WE'RE ACTUALLY ABLE TO ISSUE THE PERMIT.

AND, CHAIRMAN, YOU SPOKE ABOUT THE ECONOMIC IMPACT IN YOUR OPENING REMARKS ABOUT GETTING PERMITS ISSUED AS QUICKLY AS POSSIBLE.

SO THE RECOMMENDATION WOULD BE TO CHANGE IT FROM A 60 DAY REQUIREMENT TO A 30 DAY REQUIREMENT, AND THEN NEW APPLICANTS HAVE TO PUBLISH IN THE NEWSPAPER AND TWO CONSECUTIVE PUBLICATIONS.

SO IT WOULD BE THE LOCAL NEWSPAPER, WHEREVER THAT LOCATION IS, IF A NEW PERMIT.

FOR CERTAIN PERMITS. EXCUSE ME.

AND PAPER PUBLICATIONS ARE SORT OF ON THEIR WAY OUT.

IT'S MORE DIGITAL, BUT FOR MOST OF THE PERMIT TYPES THAT HAVE THIS REQUIREMENT, DIGITAL IS NOT ALLOWED.

SO THE RECOMMENDATION WOULD BE TO REMOVE THIS REQUIREMENT COMPLETELY.

IT DOESN'T MEAN THAT THE COMMUNITIES WILL NOT STILL BE INFORMED.

THERE ARE OTHER AVENUES FOR THAT THAT ARE STILL IN THE CODE, INCLUDING THE 60 DAY OR HOPEFULLY 30 DAY SIGN.

SO IN THE LAST ONE BEFORE SUNSET.

SO BEFORE WE CHANGED OUR LICENSE AND PERMIT STRUCTURE, A NONPROFIT COULD GET A TEMPORARY PERMIT TO JUST SELL WINE AND MALT BEVERAGES.

AND THEN THEY COULD ALSO THEY COULD GET A SEPARATE TYPE OF PERMIT TO SELL WINE, MALT BEVERAGES AND DISTILLED SPIRITS.

SO MIXED BEVERAGES.

WHEN THEY DID THAT, THEY WOULD BE SUBJECT TO THE MIXED BEVERAGE TAX, MIXED BEVERAGE GROSS RECEIPTS TAX.

AFTER SUNSET WITH THE CONSOLIDATION.

NOW THERE IS ONE PERMIT THAT'S ISSUED TO A NONPROFIT.

IT'S A NONPROFIT ENTITY TEMPORARY EVENT PERMIT.

AT THE SAME TIME, THE TAX CODE WAS CHANGED, AND IT SAID THAT THE NONPROFIT ENTITY TEMPORARY PERMIT IS SUBJECT TO THE MIXED BEVERAGE TAX.

SO WHAT HAPPENS SOMETIMES IS IF A NONPROFIT ONLY INTENDS TO SELL AND DOES SELL ONLY WINE AND MALT BEVERAGES, THEY STILL HAVE TO PAY THE MIXED BEVERAGE TAX ON THEIR ALCOHOL SALES.

SO THE RECOMMENDATION WOULD BE TO AMEND THE ALCOHOLIC BEVERAGE CODE OR THE TAX CODE TO ALLOW THE MIXED BEVERAGE TAX TO ONLY APPLY WHEN MIXED BEVERAGES ARE BEING SOLD BY THE NONPROFIT.

AND I'M GOING TO PASS IT BACK TO DIRECTOR BEARLEY.

OKAY. THE NEXT STEPS.

SO WHERE ARE WE AND WHERE ARE WE HEADED IN A FEW SHORT WEEKS? WE ARE WAITING OPTIMISTICALLY FROM THE LBB AND GOVERNOR'S OFFICE ON THE PERFORMANCE MEASURES, CHANGES AND THE MODIFICATIONS.

WE ARE STANDING READY TO ANSWER ANY QUESTIONS THAT THEY HAVE OR CLARIFICATION THAT THEY NEED.

WE WILL THEN TAKE THAT INFORMATION AND EMBED IT INTO THE DRAFT DOCUMENT, AND WE WILL SUBMIT IT AS SOON AS POSSIBLE, KNOWING THAT THE MANDATE SAYS JUNE 1ST.

SO WE'RE HOPING TO GET THAT AS SOON AS POSSIBLE.

WE THEN TURN INTO IMPLEMENTATION SEPTEMBER 1ST, IMPLEMENTING THE PLAN.

WE'LL MONITOR PROGRESS AND CONTINUE TO EVALUATE OUTCOMES AND THOSE INDICATORS OF SUCCESS.

[01:15:02]

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

CONGRATULATIONS. I KNOW IT'S VERY DIFFICULT.

THANK YOU. YEAH.

TREMENDOUS AMOUNT OF WORK. TREMENDOUS AMOUNT OF WORK, ALL CONSISTENT WITH THE NOTION OF ACCOUNTABILITY.

RIGHT? SO MEASURABILITY, ACCOUNTABILITY, ETC..

SO THANK YOU FOR YOUR THANK YOU FOR YOUR SUMMARY.

HOW ARE YOU FEELING ON THE IMPEDIMENTS? BECAUSE THOSE ARE PRETTY BIG.

IS THAT LOOKING GOOD.

WHAT'S THE. IT'S AN OPPORTUNITY TO FOR TO PUT IT OUT THERE.

AND THEN IF SOMEONE IN THE LEGISLATURE WOULD LIKE TO CARRY A BILL RELATED TO IT, THAT WOULD BE FANTASTIC.

YOU KNOW. OKAY.

THANK YOU. I WANT.

I DO HAVE A QUESTION.

ONE OF THE COMMENTS YOU SAID WAS IMPROVED PUBLIC SERVICE ANNOUNCEMENTS AND OTHER COMMUNICATION STRATEGIES.

DO YOU FEEL WE'RE NOT DOING A GOOD JOB THERE? I DO BELIEVE WE'RE DOING A GOOD JOB, AND THE COMMUNICATIONS DIRECTOR IS TAKING IT A STEP FURTHER BY REVAMPING OUR PUBLIC WEBSITE.

BUT NO, I WOULDN'T SAY THAT WE'RE NOT DOING A GOOD JOB.

THERE ARE OPPORTUNITIES, THOUGH.

WE WANT TO INCREASE WHAT WE'RE RECEIVING BACK IN CUSTOMER SERVICE AND BY THE NUMBERS LIKE THAT VOLUME OF FEEDBACK. THE LOOP BACK.

YEAH. NO, I THINK THAT'S GREAT.

YEAH, AND I AGREE I THINK OUR COMMUNICATIONS TEAM IS TOP NOTCH.

BUT YOU KNOW, IT'S A BIG WORLD AND INFORMATION IS TRAVELING SO RAPIDLY NOW.

NEWS BECOMES STALE IN 12 HOURS.

THAT'S RIGHT. RIGHT. SO WE HAVE TO KIND OF CONTINUE, WHICH PUTS MORE A LOT MORE PRESSURE ON OUR COMMS TEAM, YOU KNOW, AND YOU KNOW, THEY DO A GREAT JOB.

BUT I THINK THAT'S A LAUDABLE GOAL.

THANKS. ALL RIGHT.

THANK YOU ALL. THANK YOU.

OKAY. WE NEED TO VOTE.

OH, I BEG YOUR PARDON.

I MOVE TO APPROVE ADOPTION OF THE DRAFT STRATEGIC PLAN FOR FISCAL YEARS 25 TO 29, SUBJECT TO CHANGES MADE BY THE DIRECTION OF THE GOVERNOR'S OFFICE, THE LEGISLATIVE BUDGET BOARD, AS RECOMMENDED BY STAFF.

IS THERE A SECOND? SECOND.

THANK YOU. COMMISSIONER ADKINS.

WE WILL NOW VOTE.

MIC]. MOTION CARRIES.

THANK YOU. NOW IS PUBLIC COMMENT.

[4. Public Comment]

GENERAL COUNCIL PERSON.

DO YOU HAVE ANYONE SIGNED UP FOR PUBLIC COMMENT? YES, SIR. WE HAVE ONE, MR. EDGAR KORZENOWSKI.

MAY I APPROACH. PLEASE COME FORWARD.

YES, SIR. ALL RIGHT. THANK YOU, CHAIRMAN LILLY.

GOOD TO SEE YOU AGAIN.

GOOD SEEING YOU AS WELL, SIR.

THANK YOU FOR HAVING ME.

MY NAME IS FOR THOSE WHO DON'T KNOW, MY NAME IS EDGAR KORZENIOWSKI.

I'M AN ATTORNEY WITH THE LAW FIRM OF GRIFFITH AND HUGHES.

WE'RE BASED OUT OF THE DFW AREA, AND OUR PRIMARY PRACTICE AREA IS REPRESENTING BUSINESSES REGULATED BY TABC AND TTB.

HAVE SOME COMMENTS ABOUT THE CONDUCT SURETY BOND RULE 3341, WHICH IS UP FOR ADOPTION.

WE BELIEVE THAT A COUPLE OF SUBSECTIONS RUN AFOUL THE PLAIN AND UNAMBIGUOUS LANGUAGE OF 106 14 AS THE SAFE HARBOR STATUTE, ALSO KNOWN AS THE RESTRAINT STATUTE.

106 14 STATES THAT VIOLATIONS OR CERTAIN VIOLATIONS COMMITTED BY EMPLOYEES OR PERMIT HOLDERS ARE RESTRAINED.

IN OTHER WORDS, THEY SHALL NOT BE ATTRIBUTABLE TO THE PERMIT HOLDER IF CERTAIN CONDITIONS ARE MET.

AND THAT IS, OF COURSE, IF THE BUSINESS REQUIRES SAFE HARBOR TRAINING AND THE INDIVIDUAL INVOLVED HAD A CURRENT SELLER SERVER TRAINING.

THE CONCERN FOR 3341 THERE'S TWO PROVISIONS E6C AND E3.

E6C BASICALLY SAYS RESTRAINTABLE OFFENSES ARE COUNTED AS A STRIKE FOR PURPOSES OF CONDUCT SURETY BOND FORFEITURE.

THE OBVIOUS CONCERN, OF COURSE, HERE IS YOU HAVE THREE RESTRAINT OFFENSES.

YOU KNOW, IT COULD BE YEARS APART.

THAT POTENTIALLY COULD BE A HIT.

WE'D RECOMMEND TO THE COMMISSION TO CONSIDER REPEALING THAT PROVISION ALTOGETHER.

AND THEN E3 SUFFERS FROM A SIMILAR PROBLEM.

THIS ONE INVOLVES WHERE AN EMPLOYEE IS CONVICTED OF A TABC CODE VIOLATION OR RECEIVES A DEFERRED ADJUDICATION.

[01:20:08]

THAT'S ALSO CONSIDERED A STRIKE, EVEN IF THE BUSINESS IS OTHERWISE ELIGIBLE FOR SAFE HARBOR.

OUR RECOMMENDATION WOULD BE THAT THE COMMISSION CONSIDER REMOVING REFERENCE TO SAFE HARBOR.

THEN WE ALSO HAVE VERY, VERY BRIEF COMMENT ABOUT OPIOID TRAINING.

WE UNDERSTAND THAT THIS IS BRAND NEW STUFF.

NEW TERRITORY CAME OUT IN SEPTEMBER OF LAST YEAR.

WE'D ASK THAT THE COMMISSION CONSIDER PROMULGATING SOME GUIDELINES SET FORTH WHAT ARE THE COMPLIANCE OBLIGATIONS OF BUSINESSES, PARTICULARLY ON THE LINES OF VERIFICATION ON THE FRONT END, RECORD KEEPING AND RECORD RETENTION? ALSO, WE'D ASK THAT THE COMMISSION CONSIDER HAVING A PUBLIC INQUIRY EXPANDED SO BUSINESSES CAN LOOK UP THE STATUS OF THE TRAINING OF YOU KNOW, OF THE EMPLOYEES THAT DID THE OPIOID TRAINING MUCH, AGAIN, LIKE [INAUDIBLE] SERVER TRAINING.

THANK YOU VERY MUCH. THANK YOU FOR YOUR TIME, SIR.

THANK YOU. NEXT AGENDA ITEM IS CONSIDERATION OF POTENTIAL ACTION

[5. Rules]

ON READOPTION OF CHAPTER 33, SUB CHAPTERS A AND B RELATING TO THE LICENSING APPLICATION FEES AND PAYMENTS.

SENIOR COUNSEL CHERRY, IF YOU PLEASE, SIR, WELCOME.

THANK YOU FOR HAVING ME. GOOD MORNING CHAIRMAN AND COMMISSIONERS.

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

SO STAFF HAS COMPLETED THE RULE REVIEW THAT WAS PROPOSED AT THE LAST COMMISSION MEETING, WHICH CONSISTED OF SUBCHAPTERS A AND B OF CHAPTER 33, WHICH RELATES TO LICENSING APPLICATIONS, FEES AND PAYMENTS.

THIS REVIEW WAS CONDUCTED PURSUANT TO SECTION 2001.039 OF THE GOVERNMENT CODE, WHICH DIRECTS STATE AGENCIES TO REVIEW AND CONSIDER FOR READOPTION EACH OF THEIR RULES WITHIN FOUR YEARS. THE PROPOSED RULE REVIEW WAS PUBLISHED IN THE APRIL 5TH, 2024 ISSUE OF THE TEXAS REGISTER, AND STAFF DID NOT RECEIVE ANY COMMENTS.

STAFF FOUND THAT THE REASONS FOR ADOPTING RULES 33.1 THROUGH 33.29 CONTINUED TO EXIST, AND AT THIS TIME WE WOULD RECOMMEND READOPTION.

I ALSO WANT TO MENTION THAT WITHIN THIS REVIEW WAS THE RULE THAT SETS THE APPLICATION FEES FOR LICENSES AND PERMITS.

SO THAT'S RULE 33.23.

AND WITHIN SUBSECTION A OF THAT RULE, IT REQUIRES TABC TO REVIEW ALL OF ITS LICENSING AND PERMITTING FEES ONCE EVERY FOUR YEARS AND MAKE ADJUSTMENTS AS NEEDED.

UPON INITIAL ADOPTION OF THE FEES IN 2021, STAFF REPORTED TO THE COMMISSION THAT TWO YEARS OF ACTUAL COLLECTIONS AND PERFORMANCE WAS NEEDED TO EVALUATE WHETHER THE NEW FEE AMOUNTS WERE APPROPRIATE.

AS WE PRESENTED AT THE LAST COMMISSION MEETING, THE FEE REVIEW PROCESS BEGAN IN EARLY 2024 AND INVOLVED AN INTERNAL WORK GROUP CONSISTING OF MULTIPLE INDUSTRY FACING TABC DEPARTMENTS. THIS GO AROUND THE GROUPS APPROACH GREATLY EXPANDED ON THE METHODOLOGY THAT WAS USED BACK IN 2020 TO ADOPT THE RULES THAT WE DID IN 2021.

THESE FEES ARE INTENDED TO COVER THE STATE'S COSTS RELATED TO PUBLIC SAFETY ENFORCEMENT AT LICENSED BUSINESSES, REGULATORY OVERSIGHT AT LICENSED LOCATIONS, AS WELL AS PROCESSING COSTS RELATED TO EACH APPLICATION.

STAFF'S REVIEW OF THE FEES SO FAR HAS FOUND THAT THE CURRENT AMOUNTS MEET THESE NEEDS WITHOUT PLACING AN UNDUE FINANCIAL BURDEN ON THE INDUSTRY.

THROUGHOUT THIS PROCESS, AND AFTER FORMAL NOTICE TO THE INDUSTRY, STAFF DID NOT RECEIVE ANY PUBLIC COMMENTS OR FEEDBACK FROM INDUSTRY RELATING TO THE FEES.

FOLLOWING THIS INTERNAL REVIEW AND AT THIS TIME, STAFF WILL RECOMMEND THAT NO CHANGES BE MADE TO THE CURRENT FEE AMOUNTS.

GBC DOES WANT TO MAINTAIN TRANSPARENCY WITHIN THE INDUSTRY REGARDING ALL FEES, AND WE WILL CONTINUE TO COLLECT FEEDBACK FROM THE INDUSTRY AS WELL AS MEMBERS OF THE PUBLIC THROUGHOUT THIS NEXT CYCLE.

UP UNTIL THE REQUIRED FEE REVIEW THAT COMES UP NEXT IN 2028.

AND AT THIS POINT IN TIME, I'LL TAKE ANY QUESTIONS THAT YOU MAY HAVE.

AND IF YOU DON'T HAVE ANY, THEN THIS ITEM IS RIPE FOR YOUR PROPOSED ADOPTION.

RIGHT. I HAVE NO QUESTIONS.

I MOVE TO APPROVE THE ADOPTION OF CHAPTER 33 SUBCHAPTERS A AND B RELATING TO LICENSING APPLICATIONS, FEES AND PAYMENTS AS RECOMMENDED BY STAFF.

IS THERE A SECOND? SECOND.

THANK YOU, COMMISSIONER ADKINS.

WE WILL NOW VOTE.

CALL THE VOTING.

OUR VOTES HAVE BEEN RECORDED. THE MOTION IS APPROVED.

THANK YOU. ALL RIGHT.

NEXT AGENDA ITEM IS CONSIDERATION POTENTIAL ACTION ON PUBLICATION OF RULE.

REVIEW OF CHAPTER 33 SUBCHAPTERS C THROUGH G AS IN GOLF RELATING TO BONDS APPLICATION REVIEW AND PROTEST.

TEMPORARY EVENTS LICENSES AND PERMIT ACTION AND EMERGENCY ORDERS.

ATTORNEY DIAMOND, IF YOU PLEASE, SIR.

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

FOR THE RECORD, MY NAME IS MATT DIAMOND.

I AM SPECIAL COUNSEL HERE FOR THE AGENCY.

AGENDA ITEM 5.2 IS A PROPOSED RULE REVIEW CONDUCTED PURSUANT TO TEXAS GOVERNMENT CODE 2,001.039.

[01:25:03]

AS YOU ARE AWARE, THIS SECTION REQUIRES AGENCIES TO REVIEW ADOPTED RULES WITHIN FOUR YEARS OF THEIR EFFECTIVE DATE EVERY FOUR YEAR PERIOD THEREAFTER, TO DETERMINE IF THE REASONS FOR INITIALLY ADOPTING THE RULES CONTINUE TO EXIST, STAFF IS PROPOSING TO CONDUCT A REVIEW OF CHAPTER 33, SUBCHAPTER C THROUGH G, ENCOMPASSING RULES 33.40 THROUGH 33.105.

DURING THIS REVIEW, STAFF WILL CONSIDER AND MAKE RECOMMENDATIONS WHETHER THESE RULES SHOULD BE REPEALED, RE-ADOPTED, RE-ADOPTED WITH AMENDMENTS.

SHOULD THE COMMISSION APPROVE THIS PROPOSAL, STAFF WILL POST THE REVIEW.

PUBLIC COMMENT CONSIDER COMMENTS RECEIVED BY JULY 1ST, 2024 AS PART OF THIS REVIEW PROCESS.

SO, PIGGYBACKING ON OF WHAT SENIOR COUNSEL CHERRY DID FOR THIS IS THE REST OF CHAPTER 33.

OKAY. AND THAT'S ALL I HAVE.

I'M HAPPY TO ANSWER ANY QUESTIONS OR COMMENTS.

MR. CHAIRMAN, IF I MAY, THE RULES THAT MR. KORZENOWSKI COMMENTED ON ARE PART OF THIS BATCH, SO WE WILL CERTAINLY CONSIDER HIS COMMENTS.

OKAY. SHOULD YOU PROPOSE THIS FOR REVIEW? VERY WELL, THANK YOU.

I DO MOVE TO APPROVE ACTION ON PUBLICATION OF RULE REVIEW FOR CHAPTER 33 SUBCHAPTERS C THROUGH G RELATING TO BONDS, APPLICATION REVIEW AND PROTEST TEMPORARY EVENTS, LICENSES, PERMIT ACTION AND EMERGENCY ORDERS.

IS THERE A SECOND? SECOND. THANK YOU, COMMISSIONER ADKINS.

WE'LL NOW VOTE.

ALL RIGHT. THE RULE REVIEW HAS PASSED.

MOTION IS APPROVED.

NEXT ITEM EXECUTIVE SESSION.

[6. Executive Session]

I KNOW YOU ALL HAVE BEEN WAITING A LONG TIME FOR THIS.

YEAH. THE TEXAS ALCOHOLIC BEVERAGE COMMISSION HAS CONCLUDED ITS EXECUTIVE SESSION AND IS NOW IN REGULAR OPEN SESSION. THE DATE IS TUESDAY, MAY 14TH.

THE TIME IS 12:13 P.M..

THE NEXT AGENDA ITEM IS POTENTIAL ACTION ON ITEMS DISCUSSED IN EXECUTIVE SESSION.

AS PERMITTED BY SECTION 551.074 OF THE TEXAS GOVERNMENT CODE, WE DISCUSSED THE EVALUATION, EMPLOYMENT, AND COMPENSATION OF OUR EXECUTIVE DIRECTOR AND WOULD LIKE TO TAKE ACTION ON THESE DISCUSSIONS.

OUR EXECUTIVE DIRECTOR, I THINK, HAS DONE AN EXTRAORDINARY JOB IN THIS TRANSITION.

WE TRIED TO DO THIS TWO YEARS AGO AND WE WERE UNSUCCESSFUL.

AND SO HE'S SORT OF GONE WITHOUT A RAISE FOR A WHILE, SO WE'RE TRYING TO TRUE HIM UP.

AND I THINK THAT EXECUTIVE DIRECTOR GRAHAM, NOT ONLY THE WORK THAT YOU'VE DONE, BUT ALSO THE EXECUTIVE TEAM, I MEAN, EVERYTHING THAT WE SAW TODAY IS EXTRAORDINARY.

ALL THE WORK THAT WENT INTO EVERYTHING THAT WE'VE DONE IS EXTRAORDINARY.

AND THAT IS AN ABSOLUTE TESTAMENT TO THE LEADERSHIP OF THIS AGENCY OF THE EXECUTIVE TEAM, BECAUSE IT'S NOT JUST ONE PERSON.

RIGHT? ABSOLUTELY.

AND SO, YOU KNOW, WE ARE DELIGHTED AND PROUD OF WHAT YOU HAVE ALL DONE.

AND WHILE THIS PARTICULAR ACTION AFFECTS YOU PERSONALLY, IT'S ALSO A REFLECTION ON EVERYONE'S EFFORT HERE.

SO I AM HAPPY TO CONSISTENT WITH ARTICLE NINE OF SECTION 304 OF THE GENERAL APPROPRIATIONS ACT.

I MOVE THAT THE COMMISSION APPROVE A REQUEST TO THE GOVERNOR AND THE LEGISLATIVE BUDGET BOARD.

THE TABC EXECUTIVE DIRECTOR'S RATE OF COMPENSATION BE SET AT $230,000 ANNUALLY.

IS THERE A SECOND? SECOND.

I HAVE A SECOND FROM COMMISSIONER ADKINS.

WE WILL NOW VOTE. THAT'S NOT BITCOIN, BY THE WAY.

[LAUGHTER] ALL VOTED.

ALL RIGHT. OUR VOTES HAVE BEEN RECORDED.

THE MOTION IS APPROVED.

LET US MOVE FORWARD WITH CONFIDENCE.

NEXT IS THE ANNOUNCEMENT OF NEXT MEETING DATE.

[7. Closing Items]

THE NEXT SCHEDULED COMMISSION MEETING DATE IS PLANNED FOR TUESDAY, JULY 23RD, 2024.

COMMISSIONERS, IS EVERYONE OKAY WITH THIS DATE? YES. COMMISSIONER MARINO, ARE WE GOOD? DID YOU SAY JULY 24TH? 23RD? I JUST WANT TO MAKE SURE.

[01:30:13]

ARE WE GOOD? OH, YES, I WAS.

YES. SORRY, SORRY.

OKAY. FOR THE RECORD, I MAY NOT BE IN ATTENDANCE.

I MAY BE COMING IN REMOTELY.

AND IF SO COMMISSIONER ADKINS HAS AGREED TO SERVE AS THE ACTING PRESIDING OFFICER.

IS THAT OKAY? YES, SIR.

OKAY. ALL RIGHT.

GREAT. COMMISSION MEETING IS SCHEDULED TO MEET ON TUESDAY, JULY 23, 2024.

ADJOURNMENT. TIME IS NOW 12:17 AND WE ARE ADJOURNED.

HAVE A GREAT SUMMER, EVERYBODY.

THANK YOU EVERYONE. THAT'S FINE.

* This transcript was compiled from uncorrected Closed Captioning.