Texas Alcoholic Beverage Commission by fdh56iuoui

VIEWS: 12 PAGES: 33

									SUNSET COMMISSION DECISIONS




     Texas Alcoholic
   Beverage Commission


         January 2007
Agency Information
Agency at a Glance
The Texas Alcoholic Beverage Commission (TABC) regulates all phases of the alcoholic beverage
industry to ensure the protection of the welfare, health, peace, temperance, and safety of the people
of Texas. The Legislature created the agency, originally called the Liquor Control Board, in 1935,
in response to the repeal of Prohibition. Today, the agency endeavors to protect the people of
Texas while facilitating fairness, balanced competition, and responsible behavior in the alcoholic
beverage industry through voluntary compliance. To accomplish its mission, the Commission:

♦ licenses alcoholic beverage manufacturers, wholesalers, and retailers;

♦ enforces administrative and criminal laws in the Alcoholic Beverage Code;

♦ collects taxes on alcoholic beverages; and

♦ provides educational programs to address issues such as underage drinking.

Key Facts

♦ Funding. The agency spent more than $38.2 million for its operations in fiscal year 2006 – all
   of which came from licensing fees and surcharges.

♦ Staffing. In fiscal year 2006, the agency had 686 employees, including 300 commissioned law
   enforcement officers. About a quarter of these employees are located at the Headquarters in
   Austin, and the rest work in the agency’s many field offices around the state and ports of entry
   along the Mexico border.

♦ Licensing. The agency issued or renewed 118,657 licenses in fiscal year 2006, including 79,108
   retailer, 1,009 wholesaler, and 2,754 manufacturer licenses. Some businesses require more than
   one license to operate, and so the agency actually licensed 42,414 locations that year

♦ Enforcement.      In fiscal year 2006, the agency issued citations for 13,019 administrative
   violations and 20,487 criminal violations. As a result, the agency collected $2.9 million in fines,
   temporarily suspended licenses or required civil penalties in 2,783 cases, and cancelled 77
   licenses, among other enforcement actions. The agency also received 4,837 complaints and
   resolved 4,735.

♦ Tax Collection. In fiscal year 2006, TABC collected more than $180 million in excise, personal
   importation, airline and passenger train taxes, and associated fees on alcoholic beverages.

♦ Education. The agency presented its educational programs to more than 153,400 people in
   fiscal year 2006, including school children, college students, local law enforcement personnel,
   civic and community group members, and licensed businesses. In that same year, the agency
   received $380,000 in federal grants for educational programs, most of which it passed through
   to local law enforcement, advocacy, and university groups.




Sunset Commission Decisions                       1                   Texas Alcoholic Beverage Commission
Sunset Commission Decisions   2   Texas Alcoholic Beverage Commission
Issues/Recommendations
Issue 1         TABC Lacks the Clear Focus and Strategic Direction
                Needed in Today’s Alcoholic Beverage Regulatory
                Environment.
Recommendations
Change in Statute                                    These changes would provide a framework for
1.1     Update TABC’s mission to better              TABC to have a clear mission that better
        reflect today’s alcoholic beverage           reflects the modern alcoholic beverage
        regulatory environment and the               regulatory environment and the public safety
        agency’s role in public safety               needs of the State.
        issues.                                      Management Action
This recommendation would better define the          1.2     TABC should continue refining its
agency’s mission in statute by updating the                  new performance measures and
existing language to focus the agency on:                    developing   the      capabilities
                                                             necessary to effectively analyze
♦ protecting the public safety by deterring                  this data.
   and detecting violations of the law;
                                                     TABC should continue working with the
♦ promoting legal and responsible alcohol            Legislative Budget Board and the Governor’s
   consumption;                                      Office of Budget, Planning, and Policy to
                                                     ensure its performance measures accurately
♦ ensuring    fair competition within the            reflect its new statutory mission, as laid out in
   alcoholic beverage industry;                      Recommendation 1.1. The agency also needs
                                                     to continue developing its data collection and
♦ ensuring    consistent, predictable,    and        analysis capabilities to be able to report the
   timely enforcement of the law;                    kind of data necessary to support its new
                                                     strategic planning process and performance
♦ ensuring a consistent, predictable, and            measures. Further, since the agency is making
   timely licensing process;                         many changes to its operations as a result of
                                                     the 2004 Sunset recommendations, it will
♦ promoting     and fostering        voluntary
                                                     need to ensure that its strategic planning
   compliance with the law; and
                                                     process reflects these changes and that it
                                                     effectively measures the performance of its
♦ communicating the requirements of the
                                                     new and restructured functions.
   law clearly and consistently.
                                                     Fiscal Implication
                                                     These recommendations would not have a
                                                     fiscal impact to the State.




Sunset Commission Decisions                      3                  Texas Alcoholic Beverage Commission
Responses
Agency
The agency concurs with these recommendations. (Alan Steen, Administrator – Texas Alcoholic
Beverage Commission)

For
Chuck Courtney, President/CEO – Texas Retailers Association, Austin

Against
None received.




 Recommended Action: Adopt Recommendations 1.1 and 1.2.

 Commission Decision: Adopted Recommendations 1.1 and 1.2.


Sunset Commission Decisions                   4                  Texas Alcoholic Beverage Commission
Issue 2         Statutory Changes Are Needed to Ensure TABC’s
                Enforcement Efforts Are Fair, Consistent, and Focused on
                Public Safety.

Recommendations
Change in Statute                                       The Commission should adopt the new
                                                        schedule of sanctions in rules, providing for
2.1     Require TABC to maintain a
                                                        input from both the industry and the public.
        schedule     of   sanctions   that
                                                        In addition, the agency should post its new
        includes all information necessary
        to ensure fair and consistent                   schedule of sanctions on its website. This
        application of penalties.                       recommendation would ensure that the
                                                        agency is taking more consistent and
This recommendation would require TABC                  appropriate disciplinary actions against
to replace its existing standard penalty chart          licensees.
with one that reflects its full penalty authority
and provides more complete guidance in                  2.2    Require TABC to develop a risk-
assessing penalties. The agency’s schedule of                  based approach to enforcement
                                                               and to better measure the impact
sanctions should include both the number of
                                                               of its enforcement activities on
days of suspension for a particular violation
                                                               public safety.
and the corresponding fine amount.             In
developing the schedule, the agency needs to            This recommendation would require the
reflect the range of fines it can assess, from          agency to develop policies and procedures for
$150 to $25,000, according to the seriousness           more effectively conducting and overseeing its
of the offense, the history of compliance, and          enforcement activities according to the
other criteria set forth in the Alcoholic               following provisions.
Beverage Code.1         The agency’s schedule
should address the most common types of                 ♦ Require TABC to develop a risk-based
violations, including those that apply to                  approach to conducting its enforcement
wholesalers and manufacturers. The schedule                activities by focusing on detecting serious
should also reflect the agency’s more recent               violations with an impact on public safety,
statutory authority with respect to sanctions              and monitoring businesses with a history
against retailers for minor-related offenses.              of complaints and violations, and any
                                                           other factors the agency deems important.
The schedule of sanctions should allow for
deviations due to mitigating or aggravating             ♦ Require TABC to develop benchmarks
factors. However, the agency should develop                and goals to track key enforcement
clear policies to guide its staff in evaluating            activities and their results. The agency
mitigating or aggravating factors in different             should track the number of enforcement
circumstances, and how these factors could                 activities by type, the number of violations
affect the penalty assessment. As part of this             detected from each activity, the amount of
recommendation, the agency should require                  time spent on specific enforcement
staff to report to Headquarters for approval of            activities, and any other information
all cases in which executive management                    determined      necessary    by    executive
determines such approval is needed to allow                management. TABC should also make
deviation from the schedule.                               use of this and other information to

Sunset Commission Decisions                         5                 Texas Alcoholic Beverage Commission
   compare regional performance          and        ♦ Require TABC to develop a standard form
   determine best practices.                           for the public to make a complaint against
                                                       an establishment. The complaint form
♦ Require TABC to track and analyze the                should be available to the public on the
   nature of violations detected, their                agency’s website.
   disposition, and the businesses that
   produce the most serious violations,             ♦ Require      TABC to compile detailed
   statewide and per region. The agency                statistics and analyze trends on complaint
   should compile detailed statistics and              information to get a clearer picture of
   analyze trends to get a clearer picture of          problems people have with its licensees.
   problems facing the state. The agency               This complaint data should include
   should summarize these statistics and               information such as the nature of
   trends for executive management on a                complaints and their disposition, and the
   monthly basis and on a quarterly basis for          length of time to resolve complaints. The
   the Commission, as well as making this              agency should also track this information
   information available on its website.               on a regional basis. The agency should
                                                       report this information monthly to
This recommendation would ensure that the
                                                       executive management and quarterly to
agency places its limited enforcement
                                                       the Commission.          As part of this
resources where they are needed most.
                                                       recommendation, TABC should make
2.3     Require TABC to develop standard               general information about the nature and
        procedures       for      handling             disposition of complaints available on its
        complaints and for tracking and                website.
        analyzing complaint data.
                                                    This recommendation would allow the agency
This recommendation would require the               to identify problems and trends, and focus
agency to develop policies and procedures for       resources where they are needed most.
effectively managing the complaints the
agency receives according to the following          Fiscal Implication
provisions.
                                                    These recommendations would not have a
♦ Require the Commission to adopt rules             fiscal impact to the State.
   that clearly define the agency’s complaint
   process from receipt to disposition.

♦ Require the agency to address complaints
   according to risk by placing complaints in
   priority order so that the agency handles
   the most serious problems first.




Sunset Commission Decisions                     6                 Texas Alcoholic Beverage Commission
Responses
Agency
The agency concurs with these recommendations. (Alan Steen, Administrator – Texas Alcoholic
Beverage Commission)

For
Chuck Courtney, President/CEO – Texas Retailers Association, Austin

Against
None received.




 Recommended Action: Adopt Recommendations 2.1 through 2.3.

 Commission Decision: Adopted Recommendations 2.1 through 2.3.


Sunset Commission Decisions                   7                  Texas Alcoholic Beverage Commission
Sunset Commission Decisions   8   Texas Alcoholic Beverage Commission
Issue 3         Over-Regulation of Certain Business Practices Serves No
                Consumer Interest, Imposes Costs and Delays on the
                Industry, and Creates Excessive Burdens for the Agency.

Recommendations
Change in Statute                                     the alcohol content of their products. TABC
3.1     Eliminate label approval and                  would have the authority to establish
        testing for liquor and wine, and              standards for which labs it considers
        instead authorize TABC to register            acceptable. If a manufacturer chooses not to
        federal certificates of approval for          submit an independent lab analysis, TABC
        these products.                               would test their product. TABC would still
                                                      approve all beer labels since Texas has
This recommendation would authorize the
                                                      additional labeling requirements that go
agency to implement a label registration
                                                      beyond federal regulations.
program to accept federal Certificates of Label
Approval for liquor and wine.              This       3.3    Eliminate fees set in statute for
recommendation would eliminate statutory                     the approval of new alcoholic
requirements for state approval of liquor                    beverage products.
labels, and clearly authorize TABC to                 This recommendation would remove the $25
implement a process to accept federal                 dollar fee set in statute for the approval of
approvals for liquor and wine instead. Once           liquor and wine, and add language that the
TABC registers a federal certificate, the             fee should be set to cover the costs of
manufacturer would be in full compliance              regulation, including implementing a label
with agency standards. Allowing the agency            registration program. This recommendation
to accept federal certificates of approval for        would also eliminate the fee set in statute for
liquor and wine would reduce delays to                the testing and approval of beer, and the
business in getting products to market. In            agency would set this fee to cover the cost of
addition, this recommendation would                   these activities. Eliminating statutory caps on
eliminate the state requirement for chemical          fees for product approval would give the
analysis of liquor and wine under 7 percent           agency the flexibility to set fees at the level
alcohol by volume, which would no longer be           necessary to recover liquor and wine
required when accepting federal product               registration and beer testing program costs as
approvals.                                            conditions change.
3.2     Give beer manufacturers the                   3.4    Allow    distributors to   report
        option of submitting laboratory                      retailers who are delinquent in
        analyses of their products to TABC                   making payments for liquor and
        or having their products tested by                   wine by electronic mail or other
        TABC.                                                means authorized by the agency.
This recommendation would eliminate the               This     recommendation      would     modify
requirement that the agency perform chemical          requirements for liquor and wine distributors
analyses of all new beer products. Instead,           to report in writing delinquent retailers by
beer manufacturers would have the option of           allowing for alternative means, such as e-mail
submitting to TABC analyses from                      or fax, for providing this information to the
independent, reputable laboratories indicating        agency.

Sunset Commission Decisions                       9                  Texas Alcoholic Beverage Commission
Fiscal Implication
These recommendations would not result in a
significant fiscal impact to the State. The
agency would be authorized to set fees for
testing and approval to cover the cost of these
activities. Laboratory analysis would also be
on a cost-recovery basis.



Responses
Agency
The agency concurs with these recommendations. (Alan Steen, Administrator – Texas Alcoholic
Beverage Commission)

For
Supports Recommendations 3.1 and 3.2: Robert Maxwell, President – National Association of
Beverage Importers, Rockville, MD.

Against
None received.

Modification

1. Include beer in recommendation 3.1 so that importers can register a federal label approval rather
   than submitting their labels to TABC for approval. (Robert Maxwell, President – National
   Association of Beverage Importers, Rockville, MD)

2. Allow a malt beverage with an alcohol content in excess of 4 percent to be labeled with its
   alcohol content or a symbol such as “TX+” instead of requiring it to be labeled as an ale.
   (Robert Maxwell, President – National Association of Beverage Importers, Rockville, MD)




 Recommended Action: Adopt Recommendations 3.1 through 3.4.

 Commission Decision: Adopted Recommendations 3.1 through 3.4.


Sunset Commission Decisions                       10                 Texas Alcoholic Beverage Commission
Issue 4         TABC Should Continue Efforts to                                     Resolve         and
                Communicate Marketing Practices Issues.

Recommendation                                            Fiscal Implication
Change in Statute                                         This recommendation would not result in a
4.1     Require TABC to develop a formal                  fiscal impact to the State. The agency should
        process    for    making     policy               implement this recommendation with existing
        decisions regarding marketing                     resources.
        practices regulations, and for
        communicating these decisions to
        agency staff and the industry.
This recommendation would require the
agency to develop a formal process to
improve both its overall decision-making
processes for marketing practices regulatory
issues, and how the agency communicates
these decisions to its staff and to the regulated
community.           In     implementing      this
recommendation, TABC staff should meet
with a cross section of industry members to
discuss regulatory issues and gather input for
the drafting of marketing practices policies.
The agency should document its decisions by
using a precedents manual, or drafting formal
advisories, and making these documents
available to regional staff, as well as to
industry members, through the agency’s
website, electronic mail, and agency
publications.
This recommendation would improve
TABC’s ability to effectively regulate
marketing practices by providing better
information to the regulated community.
Requiring the agency to consult with industry
members on marketing practices issues, and
making advisory opinions readily available,
would provide agency staff with clearer
guidance on how to enforce state law and
provide the industry with greater regulatory
certainty.




Sunset Commission Decisions                          11                 Texas Alcoholic Beverage Commission
Responses
Agency
The agency concurs with the recommendation.        (Alan Steen, Administrator – Texas Alcoholic
Beverage Commission)

For
Chuck Courtney, President/CEO – Texas Retailers Association, Austin

Against
None received.




 Recommended Action: Adopt Recommendation 4.1.

 Commission Decision: Adopted Recommendation 4.1.


Sunset Commission Decisions                   12                  Texas Alcoholic Beverage Commission
Issue 5         TABC Should Ensure a Consistent and Formal Approach
                to Investigating and Resolving Complaints Against Its
                Employees.

Recommendations
Change in Statute                                        ensure due process for employees who have
5.1     Require TABC to maintain an                      complaints filed against them.
        internal affairs function to ensure              5.2    Require the agency to track and
        fair, effective, and impartial                          report complaint information to
        investigations       of      alleged                    the    Administrator   and     the
        misconduct by law enforcement                           Commission on a regular basis.
        officers and other employees.
                                                         This recommendation would require the
This recommendation would establish
                                                         internal affairs staff to report to the
TABC’s internal affairs function in statute,
                                                         Administrator, at least monthly, information
with original jurisdiction over all personnel
                                                         about the nature and status of each complaint.
complaints. The internal affairs staff would
                                                         It would also require the staff to report to the
coordinate and be the central reporting point
                                                         Alcoholic Beverage Commission, quarterly, a
for, but need not conduct, all employee
                                                         summary of information relating to
investigations.     The staff may initiate
                                                         investigations, including analysis of the
complaint investigations independently, but
                                                         number, type, and outcome of investigations,
would require the approval of a division
                                                         trend information, and recommendations to
director level or above to investigate an
                                                         avoid      future    complaints.            This
employee if no complaint had been made.
                                                         recommendation would ensure internal affairs
The Commission, by rule, should outline
                                                         staff report necessary information to the
general guidelines to inform the public of
                                                         Commission, the Administrator, division
how to file a complaint and what steps the
                                                         directors, and other appropriate personnel
agency will take to address that complaint.
                                                         that can be used to help facilitate good
The Administrator should appoint and
                                                         management and policy decisions.
directly oversee the head of internal affairs.
This recommendation would ensure that, as a              Fiscal Implication
law enforcement agency, TABC has an                      These recommendations would not have a
appropriate structure in place and follows               fiscal impact to the State. The agency has
standard     procedures       for     complaint          established internal affairs policies and
investigations to ensure that the agency fairly          procedures, and installed a computerized
and effectively addresses any valid concerns             tracking system. These efforts are underway
raised. This recommendation would also help              and being achieved with existing resources.
ensure that the internal affairs staff is able to
perform its work with an appropriate degree
of independence. Overall, these changes
would result in a more consistent handling of
complaints against agency employees within
and across administrations, and would help



Sunset Commission Decisions                         13                  Texas Alcoholic Beverage Commission
Responses
Agency
The agency concurs with these recommendations. (Alan Steen, Administrator – Texas Alcoholic
Beverage Commission)

For
None received.

Against
None received.




 Recommended Action: Adopt Recommendations 5.1 and 5.2.

 Commission Decision: Adopted Recommendations 5.1 and 5.2.


Sunset Commission Decisions                 14                Texas Alcoholic Beverage Commission
Issue 6          TABC Should Continue Working to Make as Much of Its
                 Licensing Process Available Online as Possible.

Recommendation                                            Fiscal Implication
Change in Statute                                         This recommendation would not have a fiscal
6.1     Direct TABC to reduce delays in                   impact to the State as it can be implemented
        the licensing process by providing                using existing technology resources and
        for online license application,                   funding.
        renewal, and payment of fees.
This recommendation would ensure that
applicants have access to an automated system
that reduces delays in the licensing process by
making license applications available online.
Licensees could use the automated system to
renew their licenses, check the status of license
applications and renewals, and pay licensing
fees.



Responses
Agency
The agency concurs with the recommendation.              (Alan Steen, Administrator – Texas Alcoholic
Beverage Commission)

For
Chuck Courtney, President/CEO – Texas Retailers Association, Austin

Against
None received.
Modification
1.    Improve technology to enable electronic processing of applications at both state and local
      levels. Allow regulatory bodies to share electronic information to expedite the licensing
      process. (Chuck Courtney, President/CEO – Texas Retailers Association, Austin)




 Recommended Action: Adopt Recommendation 6.1.

 Commission Decision: Adopted Recommendation 6.1.


Sunset Commission Decisions                         15                  Texas Alcoholic Beverage Commission
Sunset Commission Decisions   16   Texas Alcoholic Beverage Commission
Issue 7          The State Has Not Made Sufficient Efforts to Inform the
                 Public of the Health Risks of Drinking Alcohol During
                 Pregnancy.

Recommendation                                          Fiscal Implication
Change in Statute                                       This recommendation would not have a fiscal
7.1     Require TABC to develop rules                   impact to the State. TABC could incur some
        requiring establishments that sell              costs associated with printing and postage;
        alcohol       for        on-premise             however, the agency should be able to cover
        consumption to display health                   the cost within its current operating budget.
        warning signs on restroom doors
        to inform the public of the risks of
        drinking alcohol during pregnancy.
The recommendation would require TABC to
adopt rules that require establishments selling
alcohol for on-premise consumption, such as
restaurants and bars, to post signs on men’s
and women’s bathroom doors that remind the
public of the health risks posed to unborn
children when pregnant women drink alcohol.



Responses
Agency
The agency concurs with the recommendation.            (Alan Steen, Administrator – Texas Alcoholic
Beverage Commission)

For
Jim Haire – Tyler

Against
None received.




 Recommended Action: Adopt Recommendation 7.1.

 Commission Decision: Adopted Recommendation 7.1.



Sunset Commission Decisions                       17                  Texas Alcoholic Beverage Commission
Sunset Commission Decisions   18   Texas Alcoholic Beverage Commission
Issue 8          Texas Has a Continuing Need for the Texas Alcoholic
                 Beverage Commission.

Recommendation                                      Fiscal Implication
Change in Statute                                   If the Legislature continues the current
8.1     Continue      the Texas Alcoholic           functions of the Texas Alcoholic Beverage
        Beverage       Commission for 12            Commission, using the existing organizational
        years.                                      structure, the agency’s annual appropriation
                                                    of approximately $35.3 million would
This recommendation would continue TABC
                                                    continue to be required for its operation.
as an independent agency, responsible for
                                                    Licensing fees and surcharges the agency
regulating the alcoholic beverage industry.
                                                    collects from the alcoholic beverage industry
                                                    more than cover TABC’s entire appropriation.



Responses
Agency
The agency concurs with the recommendation.        (Alan Steen, Administrator – Texas Alcoholic
Beverage Commission)

For
Chuck Courtney, President/CEO – Texas Retailers Association, Austin

Against
None received.




 Recommended Action: Adopt Recommendation 8.1.

 Commission Decision: Adopted Recommendation 8.1.


Sunset Commission Decisions                   19                  Texas Alcoholic Beverage Commission
Sunset Commission Decisions   20   Texas Alcoholic Beverage Commission
Issue 9         Texas’ System of Alcoholic Beverage Regulation Is Based on
                Prohibition-Era Concerns and Is in Need of Revision.

Recommendations
Change in Statute                                      The Lieutenant Governor and Speaker of the
9.1     Require     the     Legislature  to            House of Representatives would determine
        establish a joint interim committee            the composition of the interim committee.
        to study revision of the regulatory            The committee should report its findings and
        structure for alcoholic beverages              recommendations      to   the      Governor,
        in Texas.                                      Lieutenant Governor, and Speaker of the
                                                       House by January 1, 2009.
The study should include at least the
following:                                             Fiscal Implication
♦ placing all responsibility for assessing and         This recommendation would not have a fiscal
   collecting taxes with the Comptroller;              impact to the State.

♦ licensing only persons or entities that
   produce, manufacture, brew or distill
   regulated substances; or sell regulated
   substances to the public;

♦ placing all responsibility for the issuance
   and renewal of licenses with the Texas
   Department of Licensing and Regulation;

♦ charging TABC with enforcing all laws,
   rules, and regulations applicable to
   alcoholic beverages to foster, protect, and
   maintain the health and safety of the
   citizens of the State of Texas; and to
   promote open markets and competition in
   the sale of alcoholic beverages; and

♦ abolishing provisions in the Code related
   to marketing practices and retailer
   independence, and instead authorize
   TABC to adopt and enforce regulations
   on those subjects similar to the regulations
   promulgated by the Alcohol and Tobacco
   Tax and Trade Bureau for liquor, beer,
   and wine.




Sunset Commission Decisions                       21                 Texas Alcoholic Beverage Commission
Responses
Agency
Though the agency concurs with the recommendation for a study of the regulatory structure, it
strongly believes the most effective and efficient regulatory oversight is accomplished through one
agency. (Alan Steen, Administrator – Texas Alcoholic Beverage Commission)

For
Chuck Courtney, President/CEO – Texas Retailers Association, Austin

Against
None received.

Modifications
1.    In addition to the five charges listed in the recommendation, require the joint interim
      committee to consider the current nature and magnitude of Texas’ alcohol problems. (Jim
      Haire – Tyler).




 Recommended Action: Adopt Recommendation 9.1.

 Commission Decision: The Commission did not adopt Recommendation 9.1.


Sunset Commission Decisions                     22                  Texas Alcoholic Beverage Commission
Across-the-Board Recommendations
                              Texas Alcoholic Beverage Commission

 Recommendations                                 Across-the-Board Provisions

    Do not Apply         1.   Require public membership on the agency’s policymaking body.

        Update           2.   Require provisions relating to conflicts of interest.

        Update           3.   Require unbiased appointments to the agency’s policymaking body.

                         4.   Provide that the Governor designate the presiding officer of the
        Update
                              policymaking body.

        Update           5.   Specify grounds for removal of a member of the policymaking body.

        Apply            6.   Require training for members of the policymaking body.

        Apply            7.   Require separation of policymaking and agency staff functions.

  Already in Statute     8.   Provide for public testimony at meetings of the policymaking body.

        Modify           9.   Require information to be maintained on complaints.

        Apply            10. Require the agency to use technology to increase public access.

                         11. Develop and use appropriate alternative rulemaking and dispute
        Apply
                             resolution procedures.




 Recommended Action: Adopt staff recommendations.

 Commission Decision: Adopted staff recommendations.


Sunset Commission Decisions                         23                     Texas Alcoholic Beverage Commission
Sunset Commission Decisions   24   Texas Alcoholic Beverage Commission
New Issues
New Issues
The following issues were raised in addition to the issues raised in the staff report. These issues are
numbered sequentially to follow the staff’s recommendations.

10.   Require TABC to report to the Legislature on its enforcement efforts concerning alcohol sales
      and consumption, specifically reporting the number of individuals or establishments found to
      be operating without a license, selling or serving during prohibited hours, consuming or
      permitting consumption on a licensed premise during prohibited hours, and refusing to allow
      entry to inspectors and law enforcement. These data should be reported on a statewide basis,
      as well as for each region and major metropolitan area. TABC should submit this report to
      the Legislature by October 31 of each even-numbered year. (Drafted by Sunset staff in
      response to a request from Representative Vicki Truitt, Member – Sunset Advisory
      Commission)
11.   Require TABC to suspend a license, rather than offer the option of an administrative penalty
      in lieu of suspension, for licensees who unlawfully sell or serve during prohibited hours,
      consume or permit consumption on their premises during prohibited hours, or refuse to allow
      entry to law enforcement personnel. (Drafted by TABC staff and Sunset staff in response to a
      request from Representative Vicki Truitt, Member – Sunset Advisory Commission)
12.   Give TABC clear legal authority to take enforcement action against establishments that allow
      after hours alcohol consumption by defining premises licensed under the Alcoholic Beverage
      Code as public places. (Drafted by TABC staff and Sunset staff in response to a request from
      Representative Vicki Truitt, Member – Sunset Advisory Commission)
13.   Set specific criminal sanctions for licensees who unlawfully sell or serve during prohibited
      hours, consume or permit consumption on their premises during prohibited hours, or refuse
      to allow entry to law enforcement personnel. Currently, sanctions for these violations are
      governed by TABC’s general penalty authority, which does not define a specific sanction.
      (Drafted by TABC staff and Sunset staff in response to a request from Representative Vicki
      Truitt, Member – Sunset Advisory Commission)
      Staff comment: Staff did not address what the specific sanctions for these violations should
      be. Instead, the Legislature would need to decide the appropriate sanctions.
14.   Create a permit for commercial establishments that do not sell or serve alcoholic beverages,
      but that allow patrons to possess and consume them on their premises. Prohibit permittees
      from allowing patrons to possess and consume alcoholic beverages during prohibited hours.
      (Drafted by TABC staff and Sunset staff in response to a request from Representative Vicki
      Truitt, Member – Sunset Advisory Commission)
15.   Abolish the cash law governing payments for beer deliveries and the credit law governing
      payments for liquor deliveries. (Howard Wolf and Ike Sugg, Public Members – Sunset
      Advisory Commission)
16.   Prohibit TABC from regulating prices charged in any transaction and allow distributors and
      retailers to negotiate discounts based on volume or other commercial criteria. (Howard Wolf,
      Public Member – Sunset Advisory Commission)



Sunset Commission Decisions                       25                  Texas Alcoholic Beverage Commission
17.   Create a single license for large retailers that operate multiple locations. (Howard Wolf,
      Public Member – Sunset Advisory Commission)
18.   Create a license to allow the direct shipment of wine from in-state and out-of-state retailers to
      consumers. (Howard Wolf, Public Member – Sunset Advisory Commission)
19.   Remove restrictions on the off-premise sale of liquor to allow retailers, such as grocery stores,
      to sell liquor in their stores. (Howard Wolf, Public Member – Sunset Advisory Commission)
20.   Allow retailers to return excess stock to distributors for refund or credit if the parties agree.
      (Howard Wolf, Public Member – Sunset Advisory Commission)
21.   Allow retailers to redeem customer coupons issued by manufacturers for the purchase of
      beverages and/or food if the parties agree. (Howard Wolf, Public Member – Sunset Advisory
      Commission)
22.   Allow manufacturers to pay for advertising expenses of retailers that promote specific brands
      if the parties agree. (Howard Wolf, Public Member – Sunset Advisory Commission)
23.   Allow beer tastings at retail establishments, using rules similar to those for wine tastings.
      (Howard Wolf, Public Member – Sunset Advisory Commission)
24.   Allow retailers to sell products they have in stock to manufacturers or other retailers, if the
      parties agree. (Howard Wolf, Public Member – Sunset Advisory Commission)
25.   Take the funding that was given to TABC for its law enforcement officers and give it to local
      police departments to put more officers on the roads, where they can arrest drunk drivers.
      Alternatively, assign TABC officers to DUI enforcement duties in high-risk areas. (Ryan
      Besch – Dallas)
26.   Amend the Alcoholic Beverage Code to allow licenses to be renewed every two years, rather
      than every year. (Chuck Courtney, President/CEO – Texas Retailers Association, Austin)
27.   Allow multiple permit holders the option of having all of their permits renew at the same
      time. (Chuck Courtney, President/CEO – Texas Retailers Association, Austin)
28.   Grant grocers the same ability to receive volume discounts that liquor store chains are
      permitted. Specifically, allow “pallet pricing” for all products purchased from a distributor,
      with the product being distributed among stores with common ownership within that
      distributor’s trade area. (Chuck Courtney, President/CEO – Texas Retailers Association,
      Austin)
29.   Allow cartage permit holders to transfer product between stores without having to transfer
      back to the hub store. Restrictions for grocers should be the same as those for package stores.
      (Chuck Courtney, President/CEO – Texas Retailers Association, Austin)
30.   Clarify that a 24-hour pay period for electronic funds transfer of payments between multi-
      outlet retailers and wholesale distributors is based on the retailer’s total transaction, not on an
      individual store basis. Allow retailers to do end of week batch processing and electronic
      payment for beer deliveries. (Chuck Courtney, President/CEO – Texas Retailers Association,
      Austin)
31.   Require individual consumers to obtain a license to purchase alcohol. (Jimmy Moore)


Sunset Commission Decisions                        26                   Texas Alcoholic Beverage Commission
 Recommended Action: Staff makes no recommendations on the new issues.

 Commission Decision: Adopted New Issues 10, 12, and 13. The Commission also adopted
 New Issue 11 with a modification to authorize, rather than require, TABC to suspend a license
 when a licensee commits one of the listed violations.


Sunset Commission Decisions                   27                 Texas Alcoholic Beverage Commission
Sunset Commission Decisions   28   Texas Alcoholic Beverage Commission

								
To top