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Tune In TABC License & Permit Holders!

The Texas Alcoholic Beverage Commission (TABC) held its board meeting on Sept 25, 2018.  If you are a TABC license/permit holder, this meeting impacts your business!  Click here to get the information you need.


  1. Call to Order – Kevin J. Lilly


  1. Presentation to TABC Agents for Disaster Relief Deployment – Kevin J. Lilly

Several Agents were recognized for their efforts in assisting communities during the summer floods with a special badge and the appreciation of the board.  Acting Chief Victor Kuykendoll was officially named Chief of Enforcement and took his oath of office.  A short reception was held to honor and congratulate.


  1. Internal Audit Briefing – Alan Sandersen

Sanderson’s focus was given to addressing issues that had been previously brought up by State Auditor’s Office audits with some attention to previous Internal audits. For example, the Agency’s failure to meet the “3-day deposit” rule.  Funding to accomplish this was apparently not requested in the Agency’s Legislative Appropriations Request (LAR) and additional technologies are required.  There was discussion of going to a “Credit Card Only” but it was pointed out this would require a change in law.

Sanderson also reiterated the Poetics system utilized by the Ports of Entry Division is out of date and can not be upgraded.  Major improvement needed.

Sanderson briefly discussed a need for further attention to document retention and assistance in the Open Records area admitting only one person is not enough to keep up with requests.

Sanderson concluded with kudos to staff and their professionalism.   The Board adopted the Audit Report.


  1. Commission Report: Agency Activities, Budget Issues, Staff Updates, Legislative Activities – Bentley Nettles

Highlights included the LAR submission and 6 exceptional items in their budget.  The first two exceptional items are related to technology improvement; the third and fourth items are 64 new law enforcement positions and cars; the fifth is funding for cybersecurity, and the last item is the continued position needed for the CAPS.

Dennis Beal gave a detailed report on Ports of Entry based on his recent visits to the ports.  He highlighted the role this division plays in the collection of taxes as well as the prevention of illicit beverages entering our state.  Beal’s long and detailed report might signal this as a subject to be covered in the upcoming Sunset Commission Report.

Chris Porter gave a brief update on customer service recognition awards, a video concerning Human Trafficking, and social media efforts.

Jarrod Staples gave a brief update on his Industry engagement initiatives including the “Executive Summit Series.”  This was described as executive level communications between staff, other agencies and high-volume permit holders on the issues impacting the industry.  Staples also discussed the online educational videos being presented monthly.

Jay Webster discussed a system implementation which will assist with board meetings and information.

Mindy Carroll gave kudos to her staff for a successful “Back to School” campaign and the award-winning website, “2Young2Drink’.

Clark Smith concluded with information on the new mobile app which will be the vehicle for the newly required self-compliance report to be filed by license/permit holders.


  1. Consideration and Potential Adoption of Amendments to Rule §41.56, Out-of-State Winery Direct Shipper’s Permits – Clark Smith

View Rule approved for adoption.

  1. Consideration and Potential Action on Publication of Proposed Amendments to Rule §33.12, Caterer’s Permits and Request for Caterer Certificate – Clark Smith

View Proposed amendments approved for publication.


  1. Consideration and Potential Action on Publication of Proposed Amendments to Rule §33.15, Use of Winery Festival Permits – Clark Smith

View Proposed amendments approved for publication.


  1. Consideration and Potential Action on Publication of Proposed Amendments to Rule §33.23, Alcoholic Beverage Permit, License and Certificate Surcharges, and Expedited Processing Fees for Caterer Certificates, Temporary Licenses or Permits, and Certificates for Use of Winery Festival Permits – Clark Smith

View Proposed amendments approved for publication.


  1. Consideration and Potential Action on Publication of Proposed New Rule §41.22, Compliance Reporting by License and Permit Holders – Clark Smith

View Proposed rule approved for publication.

  1. Office of Professional Responsibility Briefing – Darrell Dement

This briefing was a bit confusing to me.  As I understood it, the current “OPR” is not comprehensive enough in its scopes and responsibilities, so, therefore, it will be changing to the “Office of Inspector General” and adding additional employees. The additional employees will comprise two separate divisions, “Internal Affairs” and “Oversight and Review” with a third division to be added at a later date in the “Office of Operations and Strategy.”


  1. Executive Session for Private Consultation with General Counsel Under Government Code §551.071 Regarding Pending Litigation – Kevin J. Lilly


  1. Action on Items Discussed in Executive Session – Kevin J. Lilly

No actions taken in Exec. Session.


  1. Public Comment – Kevin J. Lilly

The only public comment consisted of questions and a general discussion on city ordinances and public consumption.  Lilly requested the concerns be put in writing to the agency.


  1. Next Meeting Date: Tuesday, November 27, 2018 – Kevin J. Lilly


  1. Adjourn – Kevin J. Lilly


This commission meeting left me feeling like I have so many times in the past with a bit of sadness that the Licensing Division is not getting more attention with resources and funding.  We all know the time to get an original permit/license issued is longer than it’s been in a decade and yet the additional employees being requested from the legislature are agents.  The “cherry on top” of my disappointment was the presentation that the Internal Affairs Unit would be expanding with higher salaried employees when there is such an obvious need in the Licensing Division.  Rumor has it there are big over haul’s coming in the application process, so maybe a reduction in paperwork and a more cursory review of qualifications are the answer.  Time will tell.


Please review the links for the proposed new rule and rule amendments.  I will be following up with a blog on each proposal along with my public comments.  Thanks for checking in and stay tuned for more information to come!


Let us know your opinions in the comments below.

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