state office ofadministrative hearings · what he is doing, he is intoxicated. he agreed that the...

20
State Office of Administrative Hearings Lesli G. Ginn Chief Administrative Law Judge August 4, 2017 Ed Swedberg VIA REGULAR MAIL Acting Executive Director Texas Alcoholic Beverage Commission 5806 Mesa Drive Austin, Texas 78731 RE: SOAH Docket No. 458-17-2960; Texas Alcoholic Beverage Commission vs. M.I.S. Enterprises Inc, d/b/a Moulin Rouge Dear Mr. Swedberg: Please find enclosed a Proposal for Decision m this case. It contains _my recommendation and underlying rationale. Exceptions and replies may be filed by any party in accordance with 1 TEX. ADMfN. CODE§ 155.507(c), a SOAH rule which may be found at www.soah.state.tx.u s. Sincerely, < <:?&~ < WHTT,';EY L.~T0Elil\'£R A DMINISTRATIVE LA\V .JUOCE STATE OFFICE OF ADMINISTRATIVE HEARINl;S WLS/s jp Enclosure xc Sheila Lindsey-Sanders, Staff Attorney, Texas Alcoholic Beverage Commission, 427 W. 20 1 h Street, Suite 600, Houston, TX 77008 VIA REGULAR MAIL . . Judith Kennison, Senior Attorney, Texas Alcoholic Beverage Commission, 5806 Mesa Drive, Austin, TX 78731 - VIA REGULAR MAIL Dina Powell, General Counsel's Office, 5806 Mesa Drive, Suite 380, Austin, TX 78731 - - Vt<\ REGULAR MAIL Clyde Burleson, Attorney, 1533 W. Alaba.na, Suite JOO, Houston, TX 77006 -VIA REGULAR MAIL 2020 North Loop West, Suite 111, Houston, Texas 77018 713-957-0010 (Main) 713-812-1001 (Fax) www.soah.state.tx.us

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Page 1: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

State Office of Administrative Hearings

Lesli G Ginn Chief Administrative Law Judge

August 4 2017

Ed Swedberg VIA REGULAR MAIL Acting Executive Director Texas Alcoholic Beverage Commission 5806 Mesa Drive Austin Texas 78731

RE SOAH Docket No 458-17-2960 Texas Alcoholic Beverage Commission vs MIS Enterprises Inc dba Moulin Rouge

Dear Mr Swedberg

Please find enclosed a Proposal for Decision m this case It contains _my recommendation and underlying rationale

Exceptions and replies may be filed by any party in accordance with 1 TEX ADMfN CODEsect 155507(c) a SOAH rule which may be found at wwwsoahstatetx us

Sincerely

~~~1pound ltltamp~ lt WHTTEY L~T0ElilpoundR A DMINISTRATIVE LAV JUOCE STATE OFFICE OF ADMINISTRATIVE HEARINlS

WLSsjp Enclosure xc Sheila Lindsey-Sanders Staff Attorney Texas Alcoholic Beverage Commission 427 W 20

1 h Street Suite

600 Houston TX 77008 ~ VIA REGULAR MAIL Judith Kennison Senior Attorney Texas Alcoholic Beverage Commission 5806 Mesa Drive Austin TX 78731 - VIA REGULAR MAIL Dina Powell General Counsels Office 5806 Mesa Drive Suite 380 Austin TX 78731 - - Vtlt REGULAR MAIL C lyde Burleson Attorney 1533 W Alabana Suite JOO Houston TX 77006 -VIA REGULAR MAIL

2020 North Loop West Suite 111 Houston Texas 77018 713-957-0010 (Main) 713-812-1001 (Fax)

wwwsoahstatetxus

SOAH DOCKET NO 458-17-2960 (TABC CASE NO 64114)4

TEXAS ALCOHOLIC BEVERAGE COMMISSION

Petitioner

v

MIS ENTERPRISES INC DBA MOULIN ROUGE PERMITLICENSE NO(s) MB471800LB HARRIS COUNTY TEXAS

Respondent

sect BEFORE THE STATE OFFICE

OF

ADMINISTRATIVE HEARINGS

sect sect sect sect sect sect sect sect sect sect sect

PROPOSAL FOR DECISION

Staff of the Texas Alcoholic Beverage Commission (TABC) brought this enforcement

action against MlS Enterprises Inc dba Moulin Rouge (Respondent) alleging that

Respondent its agent servant or employee sold an alcoholic beverage to an intoxicated person

The Administrative Law Judge (ALJ) finds that Respondents agent servant or employee

violated a section of the Code by selling serving or delivering an alcoholic beverage to an

intoxicated person The ALJ recommends that Respondents permit be suspended for a period of

18 days without the opportunity to pay a civil penalty

I JURISDICTION NOTICE AND PROCEDURAL HISTORY

The hearing in this matter convened on June 2 2017 before State Office of

Administrative Hearings (SOAH) ALJ Whitney L Stoebner Shelia Lindsey-Sanders Staff

Attorney represented Staff at the hearing Clyde Burleson attorney represented Respondent

After the presentation of evidence and testimony the record remained open until June 16 2017

to allow the parties to submit written closing arguments 1

1 The ALJ also set a deadline of June 7 2017 in order for the Respondent to provide a copy of video evidence offered at the hearing

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE2

The parties stipulated as to notice and jurisdiction Therefore notice and jurisdiction are

addressed only in the findings of fact and conclusions of law

II ALLEGATION AND LEGAL STANDARDS

On May 8 2000 T ABC issued a Mixed Beverage Permit and a Mixed Beverage Late

Hours Pem1it for Respondents premises located at 8930 Winkler Drive Houston Harris

County Texas 77017

The Texas Alcoholic Beverage Code (Code) provides that a permit may be cancelled or

suspended for a period of time not exceeding 60 days if it is found after notice and a hearing

that the pennittee violated a provision of the Code or a rule of the Commission

Staff alleges that on August 6 2016 Respondents agent servant or employee violated a

section of the Code by selling serving or delivering an alcoholic beverage to an intoxicated

person

III DISCUSSION

A Evidence

1 Staffs Evidence

a Agent Jeremiah Sauceda

Agent Sauceda participated in an investigation of Respondents establishment

(the establishment) on August 6 2016 Agent Sauceda and Agent Lopez entered the

establishment in an undercover capacity at approximately 916 pm4 The stage was located to

the left of the entrance the establishments only bar was straight ahead and only one bartender

2 Codesectsect JI61(b)(2) and (14) 3 Codesectsect JI61(b)(2) and (14) 4 Agent Lopezs first name was not provided during the hearing

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE3

was working at the time 5

Staffs Ex 3

The lighting was adequate and the establishment was not dark There

were about 20 patrons in the establishment and approximately six to seven of those patrons were

located at the bar

Agents Sauceda and Lopez proceeded to the seating area and purchased beers from a

waitress While seated at the table they were about ten feet away from the bar and had a clear

unobstructed view Agent Sauceda observed an individual later identified as Javier Sanchez at

the bar Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open

tilting his head back closing his eyes for a few seconds and swaying from side to side while

standing On more than one occasion he attempted to drink from a bottle of beer and missed his

mouth The baiiender was behind the bar approximately two to three feet away from

Mr Sanchez Mr Sanchez was drinking a Michelob Ultra beer He leaned into the bartender

and appeared to order another beer which the bartender provided At one point Mr Sanchez

left the bar and walked to the stage to give money to an entertainer Mr Sanchez swayed from

side to side Agent Sauceda observed Mr Sanchez for almost an hour At approximately

10 10 pm Agent Sauceda notified the open team and provided a description of Mr Sanchez

the alcohol he was consuming and the bartender The open team entered the establishment at

approximately 1015 pm

On cross examination Agent Sauceda admitted he had never met Mr Sanchez before and

was unfamiliar with how he normally speaks or walks He fmiher stated he had never observed

Mr Sanchezs eyes prior to that evening Agent Sauceda agreed that Michelob Ultra is a light

beer He only observed Mr Sanchez consume beer and did not see him take shots of alcohol or

drink mixed drinks During the hour Agent Sauceda observed Mr Sanchez he consumed only

one alcoholic beverage Agent Sauceda further stated that Mr Sanchez did not trip when

walking to the stage nor did he use tables or chairs for balance Agent Sauceda admitted he did

not indicate that Mr Sanchez swayed when walking to the stage in his investigatory report

Agent Sauceda did not recall Mr Sanchez being belligerent falling out of his seat tripping

stating he was going to drive or starting a fight

5

PAGE4SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION

b Agent Henry Landin

On August 6 2016 Agent Landin paiiicipated in an investigation of the establishment as

a member of the open team According to Agent Landin the open team was not on-site during

the investigation but was in close proximity to the establishment awaiting notification of

violations observed by the undercover agents At 1010 pm the undercover agents notified the

open team via text message of a sale to an intoxicated person The open team anived on the

premises about 1015 pm Agent Landin entered the establishment and observed an individual

matching the description provided by the undercover agents At the time Agent Landin entered

the establishment there were only about seven to eight people in the bar area Agent Landin

made contact with the individual identified as Mr Sanchez by his Texas drivers license and

asked him to come outside

6 Staffs Ex 5

When Agent Landin first approached Mr Sanchez he seemed confused Agent Landin

fmiher observed Mr Sanchez had slurred speech and an odor of alcohol on his person

Mr Sanchez stated he had a few drinks but did not provide an exact number He stated that he

had a friend inside the establishment who could take him home but he could not recall his

friends name He then said his sister could come to the establishment to take him home

Agent Landin has encountered intoxicated people previously through his work in law

enforcement He stated that the odor of alcohol slmTed speech and swaying are all signs of

intoxication He further stated that missing ones mouth when drinking a beer would also be a

sign of intoxication and a bartender should pay attention to these signs He stated that

bartenders have a duty to pay attention to their customers and take note of unusual behaviors

Though such signs might not necessarily mean someone is intoxicated a baiiender should make

contact with patrons to ascertain the cause of such behaviors He further stated that not all

intoxicated individuals are belligerent or argumentative

On cross-examination Agent Landin stated that Mr Sanchez did not have red glassy

eyes and he was not belligerent Mr Sanchez was cooperative He did not break bottles start a

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGES

fight or indicate that he intended to drive a vehicle Agent Landin stated Mr Sanchez was not a

danger to himself or others When walking outside Mr Sanchez weaved but did not trip He

did not use the stage for balance Agent Landin stated he had never met Mr Sanchez prior to

that night and was not familiar with his regular speech pattern Agent Landin was trained to

conduct Standardized Field Sobriety Tests (SFST) including the Horizontal Gaze Nystagmus test

(HON) Walk and Turn and One Leg Stand but he did not administer SFST on Mr Sanchez

When Mr Sanchezs sister arrived he did not require assistance getting into her vehicle nor did

he stumble as he did so By the time his sister arrived Mr Sanchez was less intoxicated

Agent Landin stated that if a person has lost his motor skills or cannot fully comprehend

what he is doing he is intoxicated He agreed that the Code does not define intoxication and

that the Penal Code provides two definitions The Driving While Intoxicated (DWI) standard

defines intoxication as the loss of ones mental or physical faculties The definition for the

offense of Public Intoxication requires that an individual be a danger to himself or others

c Agent Dwight Green

On August 6 2016 Agent Green participated on the open team during the investigation

of the establishment The open team received notification that a violation had occurred and

entered the establishment Agent Green made contact with the server identified as Ali Kian

who was familiar with Mr Sanchez and said he was a regular customer of the establishment 8

Mr Kian was the only bartender working that night and two waitresses were also working

Mr Kian provided a receipt to Agent Green and stated that the entire balance did not belong to

Mr Sanchez Mr Kian further stated that Mr Sanchez had been at the bar for about 4 hours

during which time he consumed four beers Agent Green spoke to the manager of the

establishment Jessie Monseveiz and then reported to the parking lot where he observed

7 On re-direct examination Agent Sanchez clarified that SFST are not required by the TABC for this type of an investigation because bartenders are not trained to administer these tests Thus use of SFST to determine intoxication would be unfair because this would not be a skill that bai1enders would be able to utilize

8 Staffs Ex 6 9 Staffs Ex 7 consisted of the receipt Mr Kian provided to Mr Sanchez The receipt was almost entirely illegible with the exception of the total balance which was not clear Accordingly no weight was given to this exhibit

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE6

Mr Sanchez waiting for his ride Agent Green observed that Mr Sanchez had a dazed

expression glossy eyes and swayed from side to side

On cross-examination Agent Green admitted he had very little interaction with

Mr Sanchez Mr Kian told Agent Green that he (Mr Kian) did not believe Mr Sanchez to be

intoxicated

2 Respondents Evidence

a Ali Kian

At the time of this investigation Mr Kian had been employed as a bartender for the

establishment for approximately 4Y years As a bartender he is aware of the signs of

intoxication such as slurred speech making crazy scenes or speaking in a loud voice He needs

to be able to identify the signs of intoxication so that he can control his customers Mr IZian

stated that he never over-serves customers He further stated that his job security is more

important than the few extra dollars he would earn by over-serving

On the night in question Mr Gans shift began around 700 pm He was the only

bartender working and he was the only person serving Mr Sanchez Mr Kian has known

Mr Sanchez for about 2 years and is familiar with his normal appearance and manner of

walking Mr Sanchez normally drinks Michelob Ultra which is what he was drinking that

night Mr Kian did not observe Mr Sanchez acting abnormally that night Mr Sanchez did not

lean on the bar with his eyes closed nor did he sway or trip Additionally Mr Sanchezs eyes

were not red

The T ABC agents entered the bar area and told Mr Kian they needed to speak to him

One of the agents said Mr Sanchez was intoxicated Mr Kian told the agents that Mr Sanchez

had been at the establishment for 4 hours during which time he drank three and a half Michelob

Ultras Mr Kian told the agents he was sure Mr Sanchez was not intoxicated One of the agents

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE

told Mr Kian that Mr Sanchez had red eyes Mr Gan took a flashlight out into the parking lot

to show the agents that Mr Sanchezs eyes were not red

On cross-examination Mr Kian stated that he interacted with Mr Sanchez when he first

started his shift Mr Kian did not ask Mr Sanchez where he had been prior to aniving at the

establishment nor did he ask whether he had consumed alcohol prior to coming to the

establishment Mr Kian stated that he always evaluates his customers before serving them He

has been trained to identify intoxicated individuals by T ABC and by his manager On the night

in question he was not seller-server certified

b Mohammad Espari

Mohammad Espari has been the general manager of the establishment since 2004 As the

general manager his duties include hiring firing and training employees ordering supplies

and ensuring the club runs properly Mr Espari also holds monthly meetings with managers and

bartenders During these meetings he reminds employees not to sell to individuals who are

underage or intoxicated Additionally Mr Espari provides employees with a booklet when they

are hired At the end of the booklet employees sign a statement which provides in relevant part

I understand that our business is dedicated to safe and responsible sales and service of alcohol I will not knowingly serve alcohol to an underage or obviously intoxicated person

On August 6 2016 Mr Espari was not present at the establishment but he was aware

that T ABC agents came to the establishment on that date He acknowledged that the

establishment had a video surveillance system Mr Espari reviewed a segment of the

surveillance video footage during the hearing He stated that the angle of the camera was similar

to the angle from which the agents observed the bar during the investigation He further stated

there is nothing in the video footage to indicate Mr Sanchez was intoxicated

On cross-examination Mr Espari stated that the establishment requires the servers to be

T ABC certified but conceded there is no written policy regarding this requirement He stated

PAGESSOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION

that he understands that Mr Kians certification had expired at the time of this investigation

When he hires employees he asks for a copy of their certification According to Mr Espari the

employees are responsible for renewing their certification upon expiration The establishment

did not track employee certifications

c Video

Respondent offered a copy of the establishments surveillance video from the night of the

incidentdeg The video is approximately 1 I minutes long and depicts three T ABC agents entering

the establishment Two of the agents made contact with Mr Sanchez Mr Sanchez leaned over

to a patron seated to his left and spoke to him Mr Sanchez then walked away from the bar area

with the agents When exiting the establishment Mr Sanchez did not trip or stumble

IV RECOMMENDATION

The evidence establishes that Respondents agent servant or employee violated a section

of the Code by selling serving or delivering an alcoholic beverage to an intoxicated person It is

uncontested that Mr Kian was Respondents agent servant or employee It is further

uncontested that Mr Kian sold served or delivered an alcoholic beverage specifically beer to

Mr Sanchez The parties disagree however regarding the definition of intoxication and

whether Mr Sanchez was intoxicated

Staff argues that intoxication should be defined using the definition found in

Penal Code sect 490 I which is the definition of intoxication used for the offense of Driving While

Intoxicated Respondent argues that intoxication should be defined under Penal Code sect 4902

deg Respondents Ex 2

11 Under Penal Codesect 4901 intoxicated is defined as

(A) not having the normal use of mental or physical faculties by reason of the introduction of alcohol controlled substance a drug a dangerous drug a combination of two or more of those substances or any other substances into the body or

(B) having an alcohol concentration of 008 or more

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE9

which provides the definition for the offense of Public Intoxication 12

12 Under Penal Codesect 4902 it is a crime ifa person appears in a public place while intoxicated to the degree that the person may endanger the person or another In support of this definition Respondent cites 16 Texas Administrative Code (TAC) sect 45103(b) which provides that Penal Code sect 4902 applies to the charge of excessive consumption The charge in this case however is sale to an intoxicated person

After reviewing the briefs

and arguments of both parties the ALJ finds that while the Code may have previously applied

the definition of intoxication found in Penal Code sect 4901 for purposes of sale of alcohol to an

intoxicated person it is no longer clear that this definition applies The Code cu1Tently

references both Penal Code definitions in Appendix F However neither definition is clearly

linked to the sale of alcohol to an intoxicated person

As neither definition of intoxication proposed by the parties clearly applies the ALJ finds

the appropriate analysis is a reasonably prudent person standard A licensee owes a duty to the

general public not to serve alcohol to a patron when the licensee knows or should have known

the patron is intoxicated A specific intent to violate the statute is not required In this case

Mr Kian is held to an objective standard of what a reasonably prudent bartender would have

observed Upon a review of the evidence the ALJ finds Mr Sanchez was intoxicated and

further finds Mr Kian should have recognized the signs of intoxication exhibited by

Mr Sanchez

After observing Mr Sanchez that evening TABC agents and Mr Kian reached opposite

conclusions regarding his sobriety In support of Mr Kians contention that Mr Sanchez was

not intoxicated Respondent offered the surveillance video This footage is brief compared to the

hour of observation conducted by Agent Sauceda Accordingly the ALJ does not find the

surveillance footage to be dispositive of Mr Sanchezs condition on the night in question

Agent Sauceda observed that Mr Sanchez had the following signs of intoxication he

struggled to keep his eyes open tilted his head back closed his eyes for a few seconds and

swayed from side to side while standing Additionally Mr Sanchez missed his mouth when

attempting to drink from a bottle of beer on more than one occasion Agent Landin fmther

observed that Mr Sanchez had slurred speech and an odor of an alcoholic beverage In addition

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 10

Mr Sanchez was unable to recall the name of a friend who was present at the establishment with

him

While Agent Sauceda observed Mr Sanchez from the tables located near the bar

Mr Kian was in even closer proximity to Mr Sanchez and had a _greater opportunity to observe

his behavior By all accounts there were not many other patrons in the bar and Mr Kian should

have been able to focus his attention on Mr Sanchez Additionally as an experienced bartender

Mr Kian should have been able to identify signs of intoxication Mr Kian testified that he was

familiar with Mr Sanchez who was a regular customer and did not believe him to be

intoxicated Though Mr Kian was more familiar with Mr Sanchez than the T ABC agents the

ALT is mindful of Mr Kians potential bias as Respondents employee Accordingly the ALJ

found the testimony of Agents Sauceda and Landin to be more credible regarding

Mr Sanchezs level of intoxication

Staff recommended that Respondents permit be suspended for 18 days without the

option to pay a civil penalty In support of this request Staff notes that this is

Respondents second sale to an intoxicated person a public safety violation in less than

36 months Staff further argues that such a suspension is warranted because Respondent has no

procedure for tracking whether bartenders and servers are maintaining seller certification

Additionally Staff notes that Mr Kian did not have a current seller certification at the time this

incident occurred

Pursuant to Code sect 1 l64(a) a permittee shall be given an opportunity to pay a civil

penalty in lieu of suspension unless the basis for the suspension is a violation of one of several

listed violations including selling to an intoxicated person under Code sect l l61(b)(14) Because

this is Respondents second sale to an intoxicated person in 36 months and given

Respondents inability to track the seller certification for its employees and Mr Kians lack of

seller certification at the time of this incident the ALJ recommends an 18-day suspension

without the opportunity to pay a civil penalty

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE II

V FINDINGS OF FACT

I MIS Enterprises Inc dba Moulin Rouge (Respondent) holds a Mixed Beverage Permit and a Mixed Beverage Late Hours Permit for the premises located at 8930 Winkler Drive Houston Harris County Texas 77017 The permit was issued on May 8 2000 and has been continuously renewed

2 On August 6 2016 Agent Jeremiah Sauceda went to Respondents establishment in an undercover capacity

3 The establishment had only one bar and one bartender working There were about 20 patrons in the establishment six to seven of those patrons were at the bar

4 Agent Sauceda sat at a table about ten feet away from the bar area He had a clear unobstructed view of the bar

5 Agent Sauceda observed patron Javier Sanchez at the bar

6 Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open tilting his head back closing his eyes for a few seconds and swaying from side to side when standing On more than one occasion Mr Sanchez attempted to drink from a beer bottle and missed his mouth

7 Mr Sanchez was drinking a Michel ob Ultra beer

8 Mr Sanchez leaned into the bartender and ordered another beer

9 The bartender identified as Ali Kian served Mr Sanchez another beer

I0 Mr Kian is a bartender for Respondents establishment where he has worked for approximately 41 years

11 On August 6 2016 Agent Henry Landin participated 111 the investigation of the establishment as a member of the open team

12 Agent Landin observed Mr Sanchez exhibited signs of intoxication including slurred speech and an odor of an alcoholic beverage on his person In addition Mr Sanchez stated that he had a friend with him at the establishment but he could not recall the name of his friend

13 On March 7 2017 Staff of the TABC issued a notice of hearing informing all parties of the hearing in this matter Staffs notice contained the time place and nature of the hearing stated the legal authority and jurisdiction under which the hearing was to be held referenced the paiiicular sections of the statutes and rules involved and included a short plain statement of the matters asserted

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 12

14 The hearing convened on June 2 2017 before State Office of Administrative Hearings (SOAH) Administrative Law Judge Whitney L Stoebner Staff was represented by attorney Shelia A Lindsey-Sanders Respondent was represented by attorney Clyde Burleson The record closed on June 16 2017 in order for the parties to submit written closing arguments

VI CONCLUSIONS OF LAW

I TABC has jurisdiction over this matter pursuant to Texas Alcoholic Beverage Code (Code) chapter 5 and sect 1161

2 SOAH has jurisdiction over all matters related to conducting a hearing in this proceeding including the preparation of a proposal for decision with findings of fact and conclusions of law pursuant to Texas Government Code Chapter 2003

3 Notice of the hearing was provided as required by Texas Government Codesectsect 2001051-052

4 Respondent violated Texas Alcoholic Beverage Codesectsect l l6l(b)(2) and (14)

5 Based on the foregoing findings of fact and conclusions of law Respondents permit should be suspended for a period of 18 days without the opportunity to pay a civil penalty Codesect l l6l(b)(2) (14) and 1164 (a)

SIGNED August 4 2017

~~d 8amp4LltLlt WHITNEY k TO EBNER ADMINISTRATIVE LAW TUDGE STATE OFFICE OF ADMINISTRATIVE HEARINGS

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

DOCKET NO 64114

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER

CAME ON FOR CONSIDERATION this 22nd day of January 2018 the above-styled

and numbered cause

After proper notice was given this case was heard by the State Office of Administrative

Hearings (SOAH) with Administrative Law Judge Whitney Stoebner presiding The hearing

convened on June 2 2017 and the SOAH record closed June 16 2017 The Administrative Law

Judge made and filed a Proposal for Decision containing Findings of Fact and Conclusions of

Law on August 4 2017 The Proposal for Decision was properly served on all parties who were

given an opportunity to file exceptions and replies as part of the record herein No exceptions

were filed

After review and due consideration of the Proposal for Decision and I adopt the Findings

of Fact and Conclusions of Law of the Administrative Law Judge that are contained in the

Proposal for Decision and incorporate those Findings of Fact and Conclusions of Law into this

Order as if such were fully set out and separately stated herein

One point made by the ALJ in her analysis merits clarification She disagreed with both

partiesrsquo proffered definitions of the word ldquointoxicatedrdquo as applied to Sections 1161(b)(2) and (14) of the Texas Alcoholic Beverage Code The correct definition of ldquointoxicatedrdquo is that found in Section 4901 of the Penal Code as argued by the Commission in front of the ALJ Section

4901 provides for a legal definition of the term ldquointoxicatedrdquo while Section 4902 codifies the elements of the crime of public intoxication Because Respondent is not being charged with the

__________________________________________

crime of public intoxication that section is inapposite to this analysis Instead the general

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

definition of ldquointoxicatedrdquo as found in Section 4901 is the appropriate definition to apply for the Texas Alcoholic Beverage Code

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law

and any other requests for general or specific relief submitted by any party are denied unless

specifically adopted herein

IT IS THEREFORE ORDERED that the privileges granted by the Commission and the

activities authorized under the above permit by the Code will be SUSPENDED beginning at

1201 am on February 15th 2018 and shall remain suspended for EIGHTEEN (18) DAYS

This Order will become final and enforceable on the 15th day of February 2018

unless a Motion for Rehearing is filed by the 14th day of February 2018

SIGNED this the 22nd day of January 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 2: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

SOAH DOCKET NO 458-17-2960 (TABC CASE NO 64114)4

TEXAS ALCOHOLIC BEVERAGE COMMISSION

Petitioner

v

MIS ENTERPRISES INC DBA MOULIN ROUGE PERMITLICENSE NO(s) MB471800LB HARRIS COUNTY TEXAS

Respondent

sect BEFORE THE STATE OFFICE

OF

ADMINISTRATIVE HEARINGS

sect sect sect sect sect sect sect sect sect sect sect

PROPOSAL FOR DECISION

Staff of the Texas Alcoholic Beverage Commission (TABC) brought this enforcement

action against MlS Enterprises Inc dba Moulin Rouge (Respondent) alleging that

Respondent its agent servant or employee sold an alcoholic beverage to an intoxicated person

The Administrative Law Judge (ALJ) finds that Respondents agent servant or employee

violated a section of the Code by selling serving or delivering an alcoholic beverage to an

intoxicated person The ALJ recommends that Respondents permit be suspended for a period of

18 days without the opportunity to pay a civil penalty

I JURISDICTION NOTICE AND PROCEDURAL HISTORY

The hearing in this matter convened on June 2 2017 before State Office of

Administrative Hearings (SOAH) ALJ Whitney L Stoebner Shelia Lindsey-Sanders Staff

Attorney represented Staff at the hearing Clyde Burleson attorney represented Respondent

After the presentation of evidence and testimony the record remained open until June 16 2017

to allow the parties to submit written closing arguments 1

1 The ALJ also set a deadline of June 7 2017 in order for the Respondent to provide a copy of video evidence offered at the hearing

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE2

The parties stipulated as to notice and jurisdiction Therefore notice and jurisdiction are

addressed only in the findings of fact and conclusions of law

II ALLEGATION AND LEGAL STANDARDS

On May 8 2000 T ABC issued a Mixed Beverage Permit and a Mixed Beverage Late

Hours Pem1it for Respondents premises located at 8930 Winkler Drive Houston Harris

County Texas 77017

The Texas Alcoholic Beverage Code (Code) provides that a permit may be cancelled or

suspended for a period of time not exceeding 60 days if it is found after notice and a hearing

that the pennittee violated a provision of the Code or a rule of the Commission

Staff alleges that on August 6 2016 Respondents agent servant or employee violated a

section of the Code by selling serving or delivering an alcoholic beverage to an intoxicated

person

III DISCUSSION

A Evidence

1 Staffs Evidence

a Agent Jeremiah Sauceda

Agent Sauceda participated in an investigation of Respondents establishment

(the establishment) on August 6 2016 Agent Sauceda and Agent Lopez entered the

establishment in an undercover capacity at approximately 916 pm4 The stage was located to

the left of the entrance the establishments only bar was straight ahead and only one bartender

2 Codesectsect JI61(b)(2) and (14) 3 Codesectsect JI61(b)(2) and (14) 4 Agent Lopezs first name was not provided during the hearing

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE3

was working at the time 5

Staffs Ex 3

The lighting was adequate and the establishment was not dark There

were about 20 patrons in the establishment and approximately six to seven of those patrons were

located at the bar

Agents Sauceda and Lopez proceeded to the seating area and purchased beers from a

waitress While seated at the table they were about ten feet away from the bar and had a clear

unobstructed view Agent Sauceda observed an individual later identified as Javier Sanchez at

the bar Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open

tilting his head back closing his eyes for a few seconds and swaying from side to side while

standing On more than one occasion he attempted to drink from a bottle of beer and missed his

mouth The baiiender was behind the bar approximately two to three feet away from

Mr Sanchez Mr Sanchez was drinking a Michelob Ultra beer He leaned into the bartender

and appeared to order another beer which the bartender provided At one point Mr Sanchez

left the bar and walked to the stage to give money to an entertainer Mr Sanchez swayed from

side to side Agent Sauceda observed Mr Sanchez for almost an hour At approximately

10 10 pm Agent Sauceda notified the open team and provided a description of Mr Sanchez

the alcohol he was consuming and the bartender The open team entered the establishment at

approximately 1015 pm

On cross examination Agent Sauceda admitted he had never met Mr Sanchez before and

was unfamiliar with how he normally speaks or walks He fmiher stated he had never observed

Mr Sanchezs eyes prior to that evening Agent Sauceda agreed that Michelob Ultra is a light

beer He only observed Mr Sanchez consume beer and did not see him take shots of alcohol or

drink mixed drinks During the hour Agent Sauceda observed Mr Sanchez he consumed only

one alcoholic beverage Agent Sauceda further stated that Mr Sanchez did not trip when

walking to the stage nor did he use tables or chairs for balance Agent Sauceda admitted he did

not indicate that Mr Sanchez swayed when walking to the stage in his investigatory report

Agent Sauceda did not recall Mr Sanchez being belligerent falling out of his seat tripping

stating he was going to drive or starting a fight

5

PAGE4SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION

b Agent Henry Landin

On August 6 2016 Agent Landin paiiicipated in an investigation of the establishment as

a member of the open team According to Agent Landin the open team was not on-site during

the investigation but was in close proximity to the establishment awaiting notification of

violations observed by the undercover agents At 1010 pm the undercover agents notified the

open team via text message of a sale to an intoxicated person The open team anived on the

premises about 1015 pm Agent Landin entered the establishment and observed an individual

matching the description provided by the undercover agents At the time Agent Landin entered

the establishment there were only about seven to eight people in the bar area Agent Landin

made contact with the individual identified as Mr Sanchez by his Texas drivers license and

asked him to come outside

6 Staffs Ex 5

When Agent Landin first approached Mr Sanchez he seemed confused Agent Landin

fmiher observed Mr Sanchez had slurred speech and an odor of alcohol on his person

Mr Sanchez stated he had a few drinks but did not provide an exact number He stated that he

had a friend inside the establishment who could take him home but he could not recall his

friends name He then said his sister could come to the establishment to take him home

Agent Landin has encountered intoxicated people previously through his work in law

enforcement He stated that the odor of alcohol slmTed speech and swaying are all signs of

intoxication He further stated that missing ones mouth when drinking a beer would also be a

sign of intoxication and a bartender should pay attention to these signs He stated that

bartenders have a duty to pay attention to their customers and take note of unusual behaviors

Though such signs might not necessarily mean someone is intoxicated a baiiender should make

contact with patrons to ascertain the cause of such behaviors He further stated that not all

intoxicated individuals are belligerent or argumentative

On cross-examination Agent Landin stated that Mr Sanchez did not have red glassy

eyes and he was not belligerent Mr Sanchez was cooperative He did not break bottles start a

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGES

fight or indicate that he intended to drive a vehicle Agent Landin stated Mr Sanchez was not a

danger to himself or others When walking outside Mr Sanchez weaved but did not trip He

did not use the stage for balance Agent Landin stated he had never met Mr Sanchez prior to

that night and was not familiar with his regular speech pattern Agent Landin was trained to

conduct Standardized Field Sobriety Tests (SFST) including the Horizontal Gaze Nystagmus test

(HON) Walk and Turn and One Leg Stand but he did not administer SFST on Mr Sanchez

When Mr Sanchezs sister arrived he did not require assistance getting into her vehicle nor did

he stumble as he did so By the time his sister arrived Mr Sanchez was less intoxicated

Agent Landin stated that if a person has lost his motor skills or cannot fully comprehend

what he is doing he is intoxicated He agreed that the Code does not define intoxication and

that the Penal Code provides two definitions The Driving While Intoxicated (DWI) standard

defines intoxication as the loss of ones mental or physical faculties The definition for the

offense of Public Intoxication requires that an individual be a danger to himself or others

c Agent Dwight Green

On August 6 2016 Agent Green participated on the open team during the investigation

of the establishment The open team received notification that a violation had occurred and

entered the establishment Agent Green made contact with the server identified as Ali Kian

who was familiar with Mr Sanchez and said he was a regular customer of the establishment 8

Mr Kian was the only bartender working that night and two waitresses were also working

Mr Kian provided a receipt to Agent Green and stated that the entire balance did not belong to

Mr Sanchez Mr Kian further stated that Mr Sanchez had been at the bar for about 4 hours

during which time he consumed four beers Agent Green spoke to the manager of the

establishment Jessie Monseveiz and then reported to the parking lot where he observed

7 On re-direct examination Agent Sanchez clarified that SFST are not required by the TABC for this type of an investigation because bartenders are not trained to administer these tests Thus use of SFST to determine intoxication would be unfair because this would not be a skill that bai1enders would be able to utilize

8 Staffs Ex 6 9 Staffs Ex 7 consisted of the receipt Mr Kian provided to Mr Sanchez The receipt was almost entirely illegible with the exception of the total balance which was not clear Accordingly no weight was given to this exhibit

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE6

Mr Sanchez waiting for his ride Agent Green observed that Mr Sanchez had a dazed

expression glossy eyes and swayed from side to side

On cross-examination Agent Green admitted he had very little interaction with

Mr Sanchez Mr Kian told Agent Green that he (Mr Kian) did not believe Mr Sanchez to be

intoxicated

2 Respondents Evidence

a Ali Kian

At the time of this investigation Mr Kian had been employed as a bartender for the

establishment for approximately 4Y years As a bartender he is aware of the signs of

intoxication such as slurred speech making crazy scenes or speaking in a loud voice He needs

to be able to identify the signs of intoxication so that he can control his customers Mr IZian

stated that he never over-serves customers He further stated that his job security is more

important than the few extra dollars he would earn by over-serving

On the night in question Mr Gans shift began around 700 pm He was the only

bartender working and he was the only person serving Mr Sanchez Mr Kian has known

Mr Sanchez for about 2 years and is familiar with his normal appearance and manner of

walking Mr Sanchez normally drinks Michelob Ultra which is what he was drinking that

night Mr Kian did not observe Mr Sanchez acting abnormally that night Mr Sanchez did not

lean on the bar with his eyes closed nor did he sway or trip Additionally Mr Sanchezs eyes

were not red

The T ABC agents entered the bar area and told Mr Kian they needed to speak to him

One of the agents said Mr Sanchez was intoxicated Mr Kian told the agents that Mr Sanchez

had been at the establishment for 4 hours during which time he drank three and a half Michelob

Ultras Mr Kian told the agents he was sure Mr Sanchez was not intoxicated One of the agents

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE

told Mr Kian that Mr Sanchez had red eyes Mr Gan took a flashlight out into the parking lot

to show the agents that Mr Sanchezs eyes were not red

On cross-examination Mr Kian stated that he interacted with Mr Sanchez when he first

started his shift Mr Kian did not ask Mr Sanchez where he had been prior to aniving at the

establishment nor did he ask whether he had consumed alcohol prior to coming to the

establishment Mr Kian stated that he always evaluates his customers before serving them He

has been trained to identify intoxicated individuals by T ABC and by his manager On the night

in question he was not seller-server certified

b Mohammad Espari

Mohammad Espari has been the general manager of the establishment since 2004 As the

general manager his duties include hiring firing and training employees ordering supplies

and ensuring the club runs properly Mr Espari also holds monthly meetings with managers and

bartenders During these meetings he reminds employees not to sell to individuals who are

underage or intoxicated Additionally Mr Espari provides employees with a booklet when they

are hired At the end of the booklet employees sign a statement which provides in relevant part

I understand that our business is dedicated to safe and responsible sales and service of alcohol I will not knowingly serve alcohol to an underage or obviously intoxicated person

On August 6 2016 Mr Espari was not present at the establishment but he was aware

that T ABC agents came to the establishment on that date He acknowledged that the

establishment had a video surveillance system Mr Espari reviewed a segment of the

surveillance video footage during the hearing He stated that the angle of the camera was similar

to the angle from which the agents observed the bar during the investigation He further stated

there is nothing in the video footage to indicate Mr Sanchez was intoxicated

On cross-examination Mr Espari stated that the establishment requires the servers to be

T ABC certified but conceded there is no written policy regarding this requirement He stated

PAGESSOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION

that he understands that Mr Kians certification had expired at the time of this investigation

When he hires employees he asks for a copy of their certification According to Mr Espari the

employees are responsible for renewing their certification upon expiration The establishment

did not track employee certifications

c Video

Respondent offered a copy of the establishments surveillance video from the night of the

incidentdeg The video is approximately 1 I minutes long and depicts three T ABC agents entering

the establishment Two of the agents made contact with Mr Sanchez Mr Sanchez leaned over

to a patron seated to his left and spoke to him Mr Sanchez then walked away from the bar area

with the agents When exiting the establishment Mr Sanchez did not trip or stumble

IV RECOMMENDATION

The evidence establishes that Respondents agent servant or employee violated a section

of the Code by selling serving or delivering an alcoholic beverage to an intoxicated person It is

uncontested that Mr Kian was Respondents agent servant or employee It is further

uncontested that Mr Kian sold served or delivered an alcoholic beverage specifically beer to

Mr Sanchez The parties disagree however regarding the definition of intoxication and

whether Mr Sanchez was intoxicated

Staff argues that intoxication should be defined using the definition found in

Penal Code sect 490 I which is the definition of intoxication used for the offense of Driving While

Intoxicated Respondent argues that intoxication should be defined under Penal Code sect 4902

deg Respondents Ex 2

11 Under Penal Codesect 4901 intoxicated is defined as

(A) not having the normal use of mental or physical faculties by reason of the introduction of alcohol controlled substance a drug a dangerous drug a combination of two or more of those substances or any other substances into the body or

(B) having an alcohol concentration of 008 or more

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE9

which provides the definition for the offense of Public Intoxication 12

12 Under Penal Codesect 4902 it is a crime ifa person appears in a public place while intoxicated to the degree that the person may endanger the person or another In support of this definition Respondent cites 16 Texas Administrative Code (TAC) sect 45103(b) which provides that Penal Code sect 4902 applies to the charge of excessive consumption The charge in this case however is sale to an intoxicated person

After reviewing the briefs

and arguments of both parties the ALJ finds that while the Code may have previously applied

the definition of intoxication found in Penal Code sect 4901 for purposes of sale of alcohol to an

intoxicated person it is no longer clear that this definition applies The Code cu1Tently

references both Penal Code definitions in Appendix F However neither definition is clearly

linked to the sale of alcohol to an intoxicated person

As neither definition of intoxication proposed by the parties clearly applies the ALJ finds

the appropriate analysis is a reasonably prudent person standard A licensee owes a duty to the

general public not to serve alcohol to a patron when the licensee knows or should have known

the patron is intoxicated A specific intent to violate the statute is not required In this case

Mr Kian is held to an objective standard of what a reasonably prudent bartender would have

observed Upon a review of the evidence the ALJ finds Mr Sanchez was intoxicated and

further finds Mr Kian should have recognized the signs of intoxication exhibited by

Mr Sanchez

After observing Mr Sanchez that evening TABC agents and Mr Kian reached opposite

conclusions regarding his sobriety In support of Mr Kians contention that Mr Sanchez was

not intoxicated Respondent offered the surveillance video This footage is brief compared to the

hour of observation conducted by Agent Sauceda Accordingly the ALJ does not find the

surveillance footage to be dispositive of Mr Sanchezs condition on the night in question

Agent Sauceda observed that Mr Sanchez had the following signs of intoxication he

struggled to keep his eyes open tilted his head back closed his eyes for a few seconds and

swayed from side to side while standing Additionally Mr Sanchez missed his mouth when

attempting to drink from a bottle of beer on more than one occasion Agent Landin fmther

observed that Mr Sanchez had slurred speech and an odor of an alcoholic beverage In addition

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 10

Mr Sanchez was unable to recall the name of a friend who was present at the establishment with

him

While Agent Sauceda observed Mr Sanchez from the tables located near the bar

Mr Kian was in even closer proximity to Mr Sanchez and had a _greater opportunity to observe

his behavior By all accounts there were not many other patrons in the bar and Mr Kian should

have been able to focus his attention on Mr Sanchez Additionally as an experienced bartender

Mr Kian should have been able to identify signs of intoxication Mr Kian testified that he was

familiar with Mr Sanchez who was a regular customer and did not believe him to be

intoxicated Though Mr Kian was more familiar with Mr Sanchez than the T ABC agents the

ALT is mindful of Mr Kians potential bias as Respondents employee Accordingly the ALJ

found the testimony of Agents Sauceda and Landin to be more credible regarding

Mr Sanchezs level of intoxication

Staff recommended that Respondents permit be suspended for 18 days without the

option to pay a civil penalty In support of this request Staff notes that this is

Respondents second sale to an intoxicated person a public safety violation in less than

36 months Staff further argues that such a suspension is warranted because Respondent has no

procedure for tracking whether bartenders and servers are maintaining seller certification

Additionally Staff notes that Mr Kian did not have a current seller certification at the time this

incident occurred

Pursuant to Code sect 1 l64(a) a permittee shall be given an opportunity to pay a civil

penalty in lieu of suspension unless the basis for the suspension is a violation of one of several

listed violations including selling to an intoxicated person under Code sect l l61(b)(14) Because

this is Respondents second sale to an intoxicated person in 36 months and given

Respondents inability to track the seller certification for its employees and Mr Kians lack of

seller certification at the time of this incident the ALJ recommends an 18-day suspension

without the opportunity to pay a civil penalty

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE II

V FINDINGS OF FACT

I MIS Enterprises Inc dba Moulin Rouge (Respondent) holds a Mixed Beverage Permit and a Mixed Beverage Late Hours Permit for the premises located at 8930 Winkler Drive Houston Harris County Texas 77017 The permit was issued on May 8 2000 and has been continuously renewed

2 On August 6 2016 Agent Jeremiah Sauceda went to Respondents establishment in an undercover capacity

3 The establishment had only one bar and one bartender working There were about 20 patrons in the establishment six to seven of those patrons were at the bar

4 Agent Sauceda sat at a table about ten feet away from the bar area He had a clear unobstructed view of the bar

5 Agent Sauceda observed patron Javier Sanchez at the bar

6 Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open tilting his head back closing his eyes for a few seconds and swaying from side to side when standing On more than one occasion Mr Sanchez attempted to drink from a beer bottle and missed his mouth

7 Mr Sanchez was drinking a Michel ob Ultra beer

8 Mr Sanchez leaned into the bartender and ordered another beer

9 The bartender identified as Ali Kian served Mr Sanchez another beer

I0 Mr Kian is a bartender for Respondents establishment where he has worked for approximately 41 years

11 On August 6 2016 Agent Henry Landin participated 111 the investigation of the establishment as a member of the open team

12 Agent Landin observed Mr Sanchez exhibited signs of intoxication including slurred speech and an odor of an alcoholic beverage on his person In addition Mr Sanchez stated that he had a friend with him at the establishment but he could not recall the name of his friend

13 On March 7 2017 Staff of the TABC issued a notice of hearing informing all parties of the hearing in this matter Staffs notice contained the time place and nature of the hearing stated the legal authority and jurisdiction under which the hearing was to be held referenced the paiiicular sections of the statutes and rules involved and included a short plain statement of the matters asserted

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 12

14 The hearing convened on June 2 2017 before State Office of Administrative Hearings (SOAH) Administrative Law Judge Whitney L Stoebner Staff was represented by attorney Shelia A Lindsey-Sanders Respondent was represented by attorney Clyde Burleson The record closed on June 16 2017 in order for the parties to submit written closing arguments

VI CONCLUSIONS OF LAW

I TABC has jurisdiction over this matter pursuant to Texas Alcoholic Beverage Code (Code) chapter 5 and sect 1161

2 SOAH has jurisdiction over all matters related to conducting a hearing in this proceeding including the preparation of a proposal for decision with findings of fact and conclusions of law pursuant to Texas Government Code Chapter 2003

3 Notice of the hearing was provided as required by Texas Government Codesectsect 2001051-052

4 Respondent violated Texas Alcoholic Beverage Codesectsect l l6l(b)(2) and (14)

5 Based on the foregoing findings of fact and conclusions of law Respondents permit should be suspended for a period of 18 days without the opportunity to pay a civil penalty Codesect l l6l(b)(2) (14) and 1164 (a)

SIGNED August 4 2017

~~d 8amp4LltLlt WHITNEY k TO EBNER ADMINISTRATIVE LAW TUDGE STATE OFFICE OF ADMINISTRATIVE HEARINGS

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

DOCKET NO 64114

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER

CAME ON FOR CONSIDERATION this 22nd day of January 2018 the above-styled

and numbered cause

After proper notice was given this case was heard by the State Office of Administrative

Hearings (SOAH) with Administrative Law Judge Whitney Stoebner presiding The hearing

convened on June 2 2017 and the SOAH record closed June 16 2017 The Administrative Law

Judge made and filed a Proposal for Decision containing Findings of Fact and Conclusions of

Law on August 4 2017 The Proposal for Decision was properly served on all parties who were

given an opportunity to file exceptions and replies as part of the record herein No exceptions

were filed

After review and due consideration of the Proposal for Decision and I adopt the Findings

of Fact and Conclusions of Law of the Administrative Law Judge that are contained in the

Proposal for Decision and incorporate those Findings of Fact and Conclusions of Law into this

Order as if such were fully set out and separately stated herein

One point made by the ALJ in her analysis merits clarification She disagreed with both

partiesrsquo proffered definitions of the word ldquointoxicatedrdquo as applied to Sections 1161(b)(2) and (14) of the Texas Alcoholic Beverage Code The correct definition of ldquointoxicatedrdquo is that found in Section 4901 of the Penal Code as argued by the Commission in front of the ALJ Section

4901 provides for a legal definition of the term ldquointoxicatedrdquo while Section 4902 codifies the elements of the crime of public intoxication Because Respondent is not being charged with the

__________________________________________

crime of public intoxication that section is inapposite to this analysis Instead the general

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

definition of ldquointoxicatedrdquo as found in Section 4901 is the appropriate definition to apply for the Texas Alcoholic Beverage Code

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law

and any other requests for general or specific relief submitted by any party are denied unless

specifically adopted herein

IT IS THEREFORE ORDERED that the privileges granted by the Commission and the

activities authorized under the above permit by the Code will be SUSPENDED beginning at

1201 am on February 15th 2018 and shall remain suspended for EIGHTEEN (18) DAYS

This Order will become final and enforceable on the 15th day of February 2018

unless a Motion for Rehearing is filed by the 14th day of February 2018

SIGNED this the 22nd day of January 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 3: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE2

The parties stipulated as to notice and jurisdiction Therefore notice and jurisdiction are

addressed only in the findings of fact and conclusions of law

II ALLEGATION AND LEGAL STANDARDS

On May 8 2000 T ABC issued a Mixed Beverage Permit and a Mixed Beverage Late

Hours Pem1it for Respondents premises located at 8930 Winkler Drive Houston Harris

County Texas 77017

The Texas Alcoholic Beverage Code (Code) provides that a permit may be cancelled or

suspended for a period of time not exceeding 60 days if it is found after notice and a hearing

that the pennittee violated a provision of the Code or a rule of the Commission

Staff alleges that on August 6 2016 Respondents agent servant or employee violated a

section of the Code by selling serving or delivering an alcoholic beverage to an intoxicated

person

III DISCUSSION

A Evidence

1 Staffs Evidence

a Agent Jeremiah Sauceda

Agent Sauceda participated in an investigation of Respondents establishment

(the establishment) on August 6 2016 Agent Sauceda and Agent Lopez entered the

establishment in an undercover capacity at approximately 916 pm4 The stage was located to

the left of the entrance the establishments only bar was straight ahead and only one bartender

2 Codesectsect JI61(b)(2) and (14) 3 Codesectsect JI61(b)(2) and (14) 4 Agent Lopezs first name was not provided during the hearing

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE3

was working at the time 5

Staffs Ex 3

The lighting was adequate and the establishment was not dark There

were about 20 patrons in the establishment and approximately six to seven of those patrons were

located at the bar

Agents Sauceda and Lopez proceeded to the seating area and purchased beers from a

waitress While seated at the table they were about ten feet away from the bar and had a clear

unobstructed view Agent Sauceda observed an individual later identified as Javier Sanchez at

the bar Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open

tilting his head back closing his eyes for a few seconds and swaying from side to side while

standing On more than one occasion he attempted to drink from a bottle of beer and missed his

mouth The baiiender was behind the bar approximately two to three feet away from

Mr Sanchez Mr Sanchez was drinking a Michelob Ultra beer He leaned into the bartender

and appeared to order another beer which the bartender provided At one point Mr Sanchez

left the bar and walked to the stage to give money to an entertainer Mr Sanchez swayed from

side to side Agent Sauceda observed Mr Sanchez for almost an hour At approximately

10 10 pm Agent Sauceda notified the open team and provided a description of Mr Sanchez

the alcohol he was consuming and the bartender The open team entered the establishment at

approximately 1015 pm

On cross examination Agent Sauceda admitted he had never met Mr Sanchez before and

was unfamiliar with how he normally speaks or walks He fmiher stated he had never observed

Mr Sanchezs eyes prior to that evening Agent Sauceda agreed that Michelob Ultra is a light

beer He only observed Mr Sanchez consume beer and did not see him take shots of alcohol or

drink mixed drinks During the hour Agent Sauceda observed Mr Sanchez he consumed only

one alcoholic beverage Agent Sauceda further stated that Mr Sanchez did not trip when

walking to the stage nor did he use tables or chairs for balance Agent Sauceda admitted he did

not indicate that Mr Sanchez swayed when walking to the stage in his investigatory report

Agent Sauceda did not recall Mr Sanchez being belligerent falling out of his seat tripping

stating he was going to drive or starting a fight

5

PAGE4SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION

b Agent Henry Landin

On August 6 2016 Agent Landin paiiicipated in an investigation of the establishment as

a member of the open team According to Agent Landin the open team was not on-site during

the investigation but was in close proximity to the establishment awaiting notification of

violations observed by the undercover agents At 1010 pm the undercover agents notified the

open team via text message of a sale to an intoxicated person The open team anived on the

premises about 1015 pm Agent Landin entered the establishment and observed an individual

matching the description provided by the undercover agents At the time Agent Landin entered

the establishment there were only about seven to eight people in the bar area Agent Landin

made contact with the individual identified as Mr Sanchez by his Texas drivers license and

asked him to come outside

6 Staffs Ex 5

When Agent Landin first approached Mr Sanchez he seemed confused Agent Landin

fmiher observed Mr Sanchez had slurred speech and an odor of alcohol on his person

Mr Sanchez stated he had a few drinks but did not provide an exact number He stated that he

had a friend inside the establishment who could take him home but he could not recall his

friends name He then said his sister could come to the establishment to take him home

Agent Landin has encountered intoxicated people previously through his work in law

enforcement He stated that the odor of alcohol slmTed speech and swaying are all signs of

intoxication He further stated that missing ones mouth when drinking a beer would also be a

sign of intoxication and a bartender should pay attention to these signs He stated that

bartenders have a duty to pay attention to their customers and take note of unusual behaviors

Though such signs might not necessarily mean someone is intoxicated a baiiender should make

contact with patrons to ascertain the cause of such behaviors He further stated that not all

intoxicated individuals are belligerent or argumentative

On cross-examination Agent Landin stated that Mr Sanchez did not have red glassy

eyes and he was not belligerent Mr Sanchez was cooperative He did not break bottles start a

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGES

fight or indicate that he intended to drive a vehicle Agent Landin stated Mr Sanchez was not a

danger to himself or others When walking outside Mr Sanchez weaved but did not trip He

did not use the stage for balance Agent Landin stated he had never met Mr Sanchez prior to

that night and was not familiar with his regular speech pattern Agent Landin was trained to

conduct Standardized Field Sobriety Tests (SFST) including the Horizontal Gaze Nystagmus test

(HON) Walk and Turn and One Leg Stand but he did not administer SFST on Mr Sanchez

When Mr Sanchezs sister arrived he did not require assistance getting into her vehicle nor did

he stumble as he did so By the time his sister arrived Mr Sanchez was less intoxicated

Agent Landin stated that if a person has lost his motor skills or cannot fully comprehend

what he is doing he is intoxicated He agreed that the Code does not define intoxication and

that the Penal Code provides two definitions The Driving While Intoxicated (DWI) standard

defines intoxication as the loss of ones mental or physical faculties The definition for the

offense of Public Intoxication requires that an individual be a danger to himself or others

c Agent Dwight Green

On August 6 2016 Agent Green participated on the open team during the investigation

of the establishment The open team received notification that a violation had occurred and

entered the establishment Agent Green made contact with the server identified as Ali Kian

who was familiar with Mr Sanchez and said he was a regular customer of the establishment 8

Mr Kian was the only bartender working that night and two waitresses were also working

Mr Kian provided a receipt to Agent Green and stated that the entire balance did not belong to

Mr Sanchez Mr Kian further stated that Mr Sanchez had been at the bar for about 4 hours

during which time he consumed four beers Agent Green spoke to the manager of the

establishment Jessie Monseveiz and then reported to the parking lot where he observed

7 On re-direct examination Agent Sanchez clarified that SFST are not required by the TABC for this type of an investigation because bartenders are not trained to administer these tests Thus use of SFST to determine intoxication would be unfair because this would not be a skill that bai1enders would be able to utilize

8 Staffs Ex 6 9 Staffs Ex 7 consisted of the receipt Mr Kian provided to Mr Sanchez The receipt was almost entirely illegible with the exception of the total balance which was not clear Accordingly no weight was given to this exhibit

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE6

Mr Sanchez waiting for his ride Agent Green observed that Mr Sanchez had a dazed

expression glossy eyes and swayed from side to side

On cross-examination Agent Green admitted he had very little interaction with

Mr Sanchez Mr Kian told Agent Green that he (Mr Kian) did not believe Mr Sanchez to be

intoxicated

2 Respondents Evidence

a Ali Kian

At the time of this investigation Mr Kian had been employed as a bartender for the

establishment for approximately 4Y years As a bartender he is aware of the signs of

intoxication such as slurred speech making crazy scenes or speaking in a loud voice He needs

to be able to identify the signs of intoxication so that he can control his customers Mr IZian

stated that he never over-serves customers He further stated that his job security is more

important than the few extra dollars he would earn by over-serving

On the night in question Mr Gans shift began around 700 pm He was the only

bartender working and he was the only person serving Mr Sanchez Mr Kian has known

Mr Sanchez for about 2 years and is familiar with his normal appearance and manner of

walking Mr Sanchez normally drinks Michelob Ultra which is what he was drinking that

night Mr Kian did not observe Mr Sanchez acting abnormally that night Mr Sanchez did not

lean on the bar with his eyes closed nor did he sway or trip Additionally Mr Sanchezs eyes

were not red

The T ABC agents entered the bar area and told Mr Kian they needed to speak to him

One of the agents said Mr Sanchez was intoxicated Mr Kian told the agents that Mr Sanchez

had been at the establishment for 4 hours during which time he drank three and a half Michelob

Ultras Mr Kian told the agents he was sure Mr Sanchez was not intoxicated One of the agents

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE

told Mr Kian that Mr Sanchez had red eyes Mr Gan took a flashlight out into the parking lot

to show the agents that Mr Sanchezs eyes were not red

On cross-examination Mr Kian stated that he interacted with Mr Sanchez when he first

started his shift Mr Kian did not ask Mr Sanchez where he had been prior to aniving at the

establishment nor did he ask whether he had consumed alcohol prior to coming to the

establishment Mr Kian stated that he always evaluates his customers before serving them He

has been trained to identify intoxicated individuals by T ABC and by his manager On the night

in question he was not seller-server certified

b Mohammad Espari

Mohammad Espari has been the general manager of the establishment since 2004 As the

general manager his duties include hiring firing and training employees ordering supplies

and ensuring the club runs properly Mr Espari also holds monthly meetings with managers and

bartenders During these meetings he reminds employees not to sell to individuals who are

underage or intoxicated Additionally Mr Espari provides employees with a booklet when they

are hired At the end of the booklet employees sign a statement which provides in relevant part

I understand that our business is dedicated to safe and responsible sales and service of alcohol I will not knowingly serve alcohol to an underage or obviously intoxicated person

On August 6 2016 Mr Espari was not present at the establishment but he was aware

that T ABC agents came to the establishment on that date He acknowledged that the

establishment had a video surveillance system Mr Espari reviewed a segment of the

surveillance video footage during the hearing He stated that the angle of the camera was similar

to the angle from which the agents observed the bar during the investigation He further stated

there is nothing in the video footage to indicate Mr Sanchez was intoxicated

On cross-examination Mr Espari stated that the establishment requires the servers to be

T ABC certified but conceded there is no written policy regarding this requirement He stated

PAGESSOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION

that he understands that Mr Kians certification had expired at the time of this investigation

When he hires employees he asks for a copy of their certification According to Mr Espari the

employees are responsible for renewing their certification upon expiration The establishment

did not track employee certifications

c Video

Respondent offered a copy of the establishments surveillance video from the night of the

incidentdeg The video is approximately 1 I minutes long and depicts three T ABC agents entering

the establishment Two of the agents made contact with Mr Sanchez Mr Sanchez leaned over

to a patron seated to his left and spoke to him Mr Sanchez then walked away from the bar area

with the agents When exiting the establishment Mr Sanchez did not trip or stumble

IV RECOMMENDATION

The evidence establishes that Respondents agent servant or employee violated a section

of the Code by selling serving or delivering an alcoholic beverage to an intoxicated person It is

uncontested that Mr Kian was Respondents agent servant or employee It is further

uncontested that Mr Kian sold served or delivered an alcoholic beverage specifically beer to

Mr Sanchez The parties disagree however regarding the definition of intoxication and

whether Mr Sanchez was intoxicated

Staff argues that intoxication should be defined using the definition found in

Penal Code sect 490 I which is the definition of intoxication used for the offense of Driving While

Intoxicated Respondent argues that intoxication should be defined under Penal Code sect 4902

deg Respondents Ex 2

11 Under Penal Codesect 4901 intoxicated is defined as

(A) not having the normal use of mental or physical faculties by reason of the introduction of alcohol controlled substance a drug a dangerous drug a combination of two or more of those substances or any other substances into the body or

(B) having an alcohol concentration of 008 or more

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE9

which provides the definition for the offense of Public Intoxication 12

12 Under Penal Codesect 4902 it is a crime ifa person appears in a public place while intoxicated to the degree that the person may endanger the person or another In support of this definition Respondent cites 16 Texas Administrative Code (TAC) sect 45103(b) which provides that Penal Code sect 4902 applies to the charge of excessive consumption The charge in this case however is sale to an intoxicated person

After reviewing the briefs

and arguments of both parties the ALJ finds that while the Code may have previously applied

the definition of intoxication found in Penal Code sect 4901 for purposes of sale of alcohol to an

intoxicated person it is no longer clear that this definition applies The Code cu1Tently

references both Penal Code definitions in Appendix F However neither definition is clearly

linked to the sale of alcohol to an intoxicated person

As neither definition of intoxication proposed by the parties clearly applies the ALJ finds

the appropriate analysis is a reasonably prudent person standard A licensee owes a duty to the

general public not to serve alcohol to a patron when the licensee knows or should have known

the patron is intoxicated A specific intent to violate the statute is not required In this case

Mr Kian is held to an objective standard of what a reasonably prudent bartender would have

observed Upon a review of the evidence the ALJ finds Mr Sanchez was intoxicated and

further finds Mr Kian should have recognized the signs of intoxication exhibited by

Mr Sanchez

After observing Mr Sanchez that evening TABC agents and Mr Kian reached opposite

conclusions regarding his sobriety In support of Mr Kians contention that Mr Sanchez was

not intoxicated Respondent offered the surveillance video This footage is brief compared to the

hour of observation conducted by Agent Sauceda Accordingly the ALJ does not find the

surveillance footage to be dispositive of Mr Sanchezs condition on the night in question

Agent Sauceda observed that Mr Sanchez had the following signs of intoxication he

struggled to keep his eyes open tilted his head back closed his eyes for a few seconds and

swayed from side to side while standing Additionally Mr Sanchez missed his mouth when

attempting to drink from a bottle of beer on more than one occasion Agent Landin fmther

observed that Mr Sanchez had slurred speech and an odor of an alcoholic beverage In addition

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 10

Mr Sanchez was unable to recall the name of a friend who was present at the establishment with

him

While Agent Sauceda observed Mr Sanchez from the tables located near the bar

Mr Kian was in even closer proximity to Mr Sanchez and had a _greater opportunity to observe

his behavior By all accounts there were not many other patrons in the bar and Mr Kian should

have been able to focus his attention on Mr Sanchez Additionally as an experienced bartender

Mr Kian should have been able to identify signs of intoxication Mr Kian testified that he was

familiar with Mr Sanchez who was a regular customer and did not believe him to be

intoxicated Though Mr Kian was more familiar with Mr Sanchez than the T ABC agents the

ALT is mindful of Mr Kians potential bias as Respondents employee Accordingly the ALJ

found the testimony of Agents Sauceda and Landin to be more credible regarding

Mr Sanchezs level of intoxication

Staff recommended that Respondents permit be suspended for 18 days without the

option to pay a civil penalty In support of this request Staff notes that this is

Respondents second sale to an intoxicated person a public safety violation in less than

36 months Staff further argues that such a suspension is warranted because Respondent has no

procedure for tracking whether bartenders and servers are maintaining seller certification

Additionally Staff notes that Mr Kian did not have a current seller certification at the time this

incident occurred

Pursuant to Code sect 1 l64(a) a permittee shall be given an opportunity to pay a civil

penalty in lieu of suspension unless the basis for the suspension is a violation of one of several

listed violations including selling to an intoxicated person under Code sect l l61(b)(14) Because

this is Respondents second sale to an intoxicated person in 36 months and given

Respondents inability to track the seller certification for its employees and Mr Kians lack of

seller certification at the time of this incident the ALJ recommends an 18-day suspension

without the opportunity to pay a civil penalty

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE II

V FINDINGS OF FACT

I MIS Enterprises Inc dba Moulin Rouge (Respondent) holds a Mixed Beverage Permit and a Mixed Beverage Late Hours Permit for the premises located at 8930 Winkler Drive Houston Harris County Texas 77017 The permit was issued on May 8 2000 and has been continuously renewed

2 On August 6 2016 Agent Jeremiah Sauceda went to Respondents establishment in an undercover capacity

3 The establishment had only one bar and one bartender working There were about 20 patrons in the establishment six to seven of those patrons were at the bar

4 Agent Sauceda sat at a table about ten feet away from the bar area He had a clear unobstructed view of the bar

5 Agent Sauceda observed patron Javier Sanchez at the bar

6 Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open tilting his head back closing his eyes for a few seconds and swaying from side to side when standing On more than one occasion Mr Sanchez attempted to drink from a beer bottle and missed his mouth

7 Mr Sanchez was drinking a Michel ob Ultra beer

8 Mr Sanchez leaned into the bartender and ordered another beer

9 The bartender identified as Ali Kian served Mr Sanchez another beer

I0 Mr Kian is a bartender for Respondents establishment where he has worked for approximately 41 years

11 On August 6 2016 Agent Henry Landin participated 111 the investigation of the establishment as a member of the open team

12 Agent Landin observed Mr Sanchez exhibited signs of intoxication including slurred speech and an odor of an alcoholic beverage on his person In addition Mr Sanchez stated that he had a friend with him at the establishment but he could not recall the name of his friend

13 On March 7 2017 Staff of the TABC issued a notice of hearing informing all parties of the hearing in this matter Staffs notice contained the time place and nature of the hearing stated the legal authority and jurisdiction under which the hearing was to be held referenced the paiiicular sections of the statutes and rules involved and included a short plain statement of the matters asserted

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 12

14 The hearing convened on June 2 2017 before State Office of Administrative Hearings (SOAH) Administrative Law Judge Whitney L Stoebner Staff was represented by attorney Shelia A Lindsey-Sanders Respondent was represented by attorney Clyde Burleson The record closed on June 16 2017 in order for the parties to submit written closing arguments

VI CONCLUSIONS OF LAW

I TABC has jurisdiction over this matter pursuant to Texas Alcoholic Beverage Code (Code) chapter 5 and sect 1161

2 SOAH has jurisdiction over all matters related to conducting a hearing in this proceeding including the preparation of a proposal for decision with findings of fact and conclusions of law pursuant to Texas Government Code Chapter 2003

3 Notice of the hearing was provided as required by Texas Government Codesectsect 2001051-052

4 Respondent violated Texas Alcoholic Beverage Codesectsect l l6l(b)(2) and (14)

5 Based on the foregoing findings of fact and conclusions of law Respondents permit should be suspended for a period of 18 days without the opportunity to pay a civil penalty Codesect l l6l(b)(2) (14) and 1164 (a)

SIGNED August 4 2017

~~d 8amp4LltLlt WHITNEY k TO EBNER ADMINISTRATIVE LAW TUDGE STATE OFFICE OF ADMINISTRATIVE HEARINGS

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

DOCKET NO 64114

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER

CAME ON FOR CONSIDERATION this 22nd day of January 2018 the above-styled

and numbered cause

After proper notice was given this case was heard by the State Office of Administrative

Hearings (SOAH) with Administrative Law Judge Whitney Stoebner presiding The hearing

convened on June 2 2017 and the SOAH record closed June 16 2017 The Administrative Law

Judge made and filed a Proposal for Decision containing Findings of Fact and Conclusions of

Law on August 4 2017 The Proposal for Decision was properly served on all parties who were

given an opportunity to file exceptions and replies as part of the record herein No exceptions

were filed

After review and due consideration of the Proposal for Decision and I adopt the Findings

of Fact and Conclusions of Law of the Administrative Law Judge that are contained in the

Proposal for Decision and incorporate those Findings of Fact and Conclusions of Law into this

Order as if such were fully set out and separately stated herein

One point made by the ALJ in her analysis merits clarification She disagreed with both

partiesrsquo proffered definitions of the word ldquointoxicatedrdquo as applied to Sections 1161(b)(2) and (14) of the Texas Alcoholic Beverage Code The correct definition of ldquointoxicatedrdquo is that found in Section 4901 of the Penal Code as argued by the Commission in front of the ALJ Section

4901 provides for a legal definition of the term ldquointoxicatedrdquo while Section 4902 codifies the elements of the crime of public intoxication Because Respondent is not being charged with the

__________________________________________

crime of public intoxication that section is inapposite to this analysis Instead the general

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

definition of ldquointoxicatedrdquo as found in Section 4901 is the appropriate definition to apply for the Texas Alcoholic Beverage Code

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law

and any other requests for general or specific relief submitted by any party are denied unless

specifically adopted herein

IT IS THEREFORE ORDERED that the privileges granted by the Commission and the

activities authorized under the above permit by the Code will be SUSPENDED beginning at

1201 am on February 15th 2018 and shall remain suspended for EIGHTEEN (18) DAYS

This Order will become final and enforceable on the 15th day of February 2018

unless a Motion for Rehearing is filed by the 14th day of February 2018

SIGNED this the 22nd day of January 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 4: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE3

was working at the time 5

Staffs Ex 3

The lighting was adequate and the establishment was not dark There

were about 20 patrons in the establishment and approximately six to seven of those patrons were

located at the bar

Agents Sauceda and Lopez proceeded to the seating area and purchased beers from a

waitress While seated at the table they were about ten feet away from the bar and had a clear

unobstructed view Agent Sauceda observed an individual later identified as Javier Sanchez at

the bar Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open

tilting his head back closing his eyes for a few seconds and swaying from side to side while

standing On more than one occasion he attempted to drink from a bottle of beer and missed his

mouth The baiiender was behind the bar approximately two to three feet away from

Mr Sanchez Mr Sanchez was drinking a Michelob Ultra beer He leaned into the bartender

and appeared to order another beer which the bartender provided At one point Mr Sanchez

left the bar and walked to the stage to give money to an entertainer Mr Sanchez swayed from

side to side Agent Sauceda observed Mr Sanchez for almost an hour At approximately

10 10 pm Agent Sauceda notified the open team and provided a description of Mr Sanchez

the alcohol he was consuming and the bartender The open team entered the establishment at

approximately 1015 pm

On cross examination Agent Sauceda admitted he had never met Mr Sanchez before and

was unfamiliar with how he normally speaks or walks He fmiher stated he had never observed

Mr Sanchezs eyes prior to that evening Agent Sauceda agreed that Michelob Ultra is a light

beer He only observed Mr Sanchez consume beer and did not see him take shots of alcohol or

drink mixed drinks During the hour Agent Sauceda observed Mr Sanchez he consumed only

one alcoholic beverage Agent Sauceda further stated that Mr Sanchez did not trip when

walking to the stage nor did he use tables or chairs for balance Agent Sauceda admitted he did

not indicate that Mr Sanchez swayed when walking to the stage in his investigatory report

Agent Sauceda did not recall Mr Sanchez being belligerent falling out of his seat tripping

stating he was going to drive or starting a fight

5

PAGE4SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION

b Agent Henry Landin

On August 6 2016 Agent Landin paiiicipated in an investigation of the establishment as

a member of the open team According to Agent Landin the open team was not on-site during

the investigation but was in close proximity to the establishment awaiting notification of

violations observed by the undercover agents At 1010 pm the undercover agents notified the

open team via text message of a sale to an intoxicated person The open team anived on the

premises about 1015 pm Agent Landin entered the establishment and observed an individual

matching the description provided by the undercover agents At the time Agent Landin entered

the establishment there were only about seven to eight people in the bar area Agent Landin

made contact with the individual identified as Mr Sanchez by his Texas drivers license and

asked him to come outside

6 Staffs Ex 5

When Agent Landin first approached Mr Sanchez he seemed confused Agent Landin

fmiher observed Mr Sanchez had slurred speech and an odor of alcohol on his person

Mr Sanchez stated he had a few drinks but did not provide an exact number He stated that he

had a friend inside the establishment who could take him home but he could not recall his

friends name He then said his sister could come to the establishment to take him home

Agent Landin has encountered intoxicated people previously through his work in law

enforcement He stated that the odor of alcohol slmTed speech and swaying are all signs of

intoxication He further stated that missing ones mouth when drinking a beer would also be a

sign of intoxication and a bartender should pay attention to these signs He stated that

bartenders have a duty to pay attention to their customers and take note of unusual behaviors

Though such signs might not necessarily mean someone is intoxicated a baiiender should make

contact with patrons to ascertain the cause of such behaviors He further stated that not all

intoxicated individuals are belligerent or argumentative

On cross-examination Agent Landin stated that Mr Sanchez did not have red glassy

eyes and he was not belligerent Mr Sanchez was cooperative He did not break bottles start a

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGES

fight or indicate that he intended to drive a vehicle Agent Landin stated Mr Sanchez was not a

danger to himself or others When walking outside Mr Sanchez weaved but did not trip He

did not use the stage for balance Agent Landin stated he had never met Mr Sanchez prior to

that night and was not familiar with his regular speech pattern Agent Landin was trained to

conduct Standardized Field Sobriety Tests (SFST) including the Horizontal Gaze Nystagmus test

(HON) Walk and Turn and One Leg Stand but he did not administer SFST on Mr Sanchez

When Mr Sanchezs sister arrived he did not require assistance getting into her vehicle nor did

he stumble as he did so By the time his sister arrived Mr Sanchez was less intoxicated

Agent Landin stated that if a person has lost his motor skills or cannot fully comprehend

what he is doing he is intoxicated He agreed that the Code does not define intoxication and

that the Penal Code provides two definitions The Driving While Intoxicated (DWI) standard

defines intoxication as the loss of ones mental or physical faculties The definition for the

offense of Public Intoxication requires that an individual be a danger to himself or others

c Agent Dwight Green

On August 6 2016 Agent Green participated on the open team during the investigation

of the establishment The open team received notification that a violation had occurred and

entered the establishment Agent Green made contact with the server identified as Ali Kian

who was familiar with Mr Sanchez and said he was a regular customer of the establishment 8

Mr Kian was the only bartender working that night and two waitresses were also working

Mr Kian provided a receipt to Agent Green and stated that the entire balance did not belong to

Mr Sanchez Mr Kian further stated that Mr Sanchez had been at the bar for about 4 hours

during which time he consumed four beers Agent Green spoke to the manager of the

establishment Jessie Monseveiz and then reported to the parking lot where he observed

7 On re-direct examination Agent Sanchez clarified that SFST are not required by the TABC for this type of an investigation because bartenders are not trained to administer these tests Thus use of SFST to determine intoxication would be unfair because this would not be a skill that bai1enders would be able to utilize

8 Staffs Ex 6 9 Staffs Ex 7 consisted of the receipt Mr Kian provided to Mr Sanchez The receipt was almost entirely illegible with the exception of the total balance which was not clear Accordingly no weight was given to this exhibit

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE6

Mr Sanchez waiting for his ride Agent Green observed that Mr Sanchez had a dazed

expression glossy eyes and swayed from side to side

On cross-examination Agent Green admitted he had very little interaction with

Mr Sanchez Mr Kian told Agent Green that he (Mr Kian) did not believe Mr Sanchez to be

intoxicated

2 Respondents Evidence

a Ali Kian

At the time of this investigation Mr Kian had been employed as a bartender for the

establishment for approximately 4Y years As a bartender he is aware of the signs of

intoxication such as slurred speech making crazy scenes or speaking in a loud voice He needs

to be able to identify the signs of intoxication so that he can control his customers Mr IZian

stated that he never over-serves customers He further stated that his job security is more

important than the few extra dollars he would earn by over-serving

On the night in question Mr Gans shift began around 700 pm He was the only

bartender working and he was the only person serving Mr Sanchez Mr Kian has known

Mr Sanchez for about 2 years and is familiar with his normal appearance and manner of

walking Mr Sanchez normally drinks Michelob Ultra which is what he was drinking that

night Mr Kian did not observe Mr Sanchez acting abnormally that night Mr Sanchez did not

lean on the bar with his eyes closed nor did he sway or trip Additionally Mr Sanchezs eyes

were not red

The T ABC agents entered the bar area and told Mr Kian they needed to speak to him

One of the agents said Mr Sanchez was intoxicated Mr Kian told the agents that Mr Sanchez

had been at the establishment for 4 hours during which time he drank three and a half Michelob

Ultras Mr Kian told the agents he was sure Mr Sanchez was not intoxicated One of the agents

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE

told Mr Kian that Mr Sanchez had red eyes Mr Gan took a flashlight out into the parking lot

to show the agents that Mr Sanchezs eyes were not red

On cross-examination Mr Kian stated that he interacted with Mr Sanchez when he first

started his shift Mr Kian did not ask Mr Sanchez where he had been prior to aniving at the

establishment nor did he ask whether he had consumed alcohol prior to coming to the

establishment Mr Kian stated that he always evaluates his customers before serving them He

has been trained to identify intoxicated individuals by T ABC and by his manager On the night

in question he was not seller-server certified

b Mohammad Espari

Mohammad Espari has been the general manager of the establishment since 2004 As the

general manager his duties include hiring firing and training employees ordering supplies

and ensuring the club runs properly Mr Espari also holds monthly meetings with managers and

bartenders During these meetings he reminds employees not to sell to individuals who are

underage or intoxicated Additionally Mr Espari provides employees with a booklet when they

are hired At the end of the booklet employees sign a statement which provides in relevant part

I understand that our business is dedicated to safe and responsible sales and service of alcohol I will not knowingly serve alcohol to an underage or obviously intoxicated person

On August 6 2016 Mr Espari was not present at the establishment but he was aware

that T ABC agents came to the establishment on that date He acknowledged that the

establishment had a video surveillance system Mr Espari reviewed a segment of the

surveillance video footage during the hearing He stated that the angle of the camera was similar

to the angle from which the agents observed the bar during the investigation He further stated

there is nothing in the video footage to indicate Mr Sanchez was intoxicated

On cross-examination Mr Espari stated that the establishment requires the servers to be

T ABC certified but conceded there is no written policy regarding this requirement He stated

PAGESSOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION

that he understands that Mr Kians certification had expired at the time of this investigation

When he hires employees he asks for a copy of their certification According to Mr Espari the

employees are responsible for renewing their certification upon expiration The establishment

did not track employee certifications

c Video

Respondent offered a copy of the establishments surveillance video from the night of the

incidentdeg The video is approximately 1 I minutes long and depicts three T ABC agents entering

the establishment Two of the agents made contact with Mr Sanchez Mr Sanchez leaned over

to a patron seated to his left and spoke to him Mr Sanchez then walked away from the bar area

with the agents When exiting the establishment Mr Sanchez did not trip or stumble

IV RECOMMENDATION

The evidence establishes that Respondents agent servant or employee violated a section

of the Code by selling serving or delivering an alcoholic beverage to an intoxicated person It is

uncontested that Mr Kian was Respondents agent servant or employee It is further

uncontested that Mr Kian sold served or delivered an alcoholic beverage specifically beer to

Mr Sanchez The parties disagree however regarding the definition of intoxication and

whether Mr Sanchez was intoxicated

Staff argues that intoxication should be defined using the definition found in

Penal Code sect 490 I which is the definition of intoxication used for the offense of Driving While

Intoxicated Respondent argues that intoxication should be defined under Penal Code sect 4902

deg Respondents Ex 2

11 Under Penal Codesect 4901 intoxicated is defined as

(A) not having the normal use of mental or physical faculties by reason of the introduction of alcohol controlled substance a drug a dangerous drug a combination of two or more of those substances or any other substances into the body or

(B) having an alcohol concentration of 008 or more

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE9

which provides the definition for the offense of Public Intoxication 12

12 Under Penal Codesect 4902 it is a crime ifa person appears in a public place while intoxicated to the degree that the person may endanger the person or another In support of this definition Respondent cites 16 Texas Administrative Code (TAC) sect 45103(b) which provides that Penal Code sect 4902 applies to the charge of excessive consumption The charge in this case however is sale to an intoxicated person

After reviewing the briefs

and arguments of both parties the ALJ finds that while the Code may have previously applied

the definition of intoxication found in Penal Code sect 4901 for purposes of sale of alcohol to an

intoxicated person it is no longer clear that this definition applies The Code cu1Tently

references both Penal Code definitions in Appendix F However neither definition is clearly

linked to the sale of alcohol to an intoxicated person

As neither definition of intoxication proposed by the parties clearly applies the ALJ finds

the appropriate analysis is a reasonably prudent person standard A licensee owes a duty to the

general public not to serve alcohol to a patron when the licensee knows or should have known

the patron is intoxicated A specific intent to violate the statute is not required In this case

Mr Kian is held to an objective standard of what a reasonably prudent bartender would have

observed Upon a review of the evidence the ALJ finds Mr Sanchez was intoxicated and

further finds Mr Kian should have recognized the signs of intoxication exhibited by

Mr Sanchez

After observing Mr Sanchez that evening TABC agents and Mr Kian reached opposite

conclusions regarding his sobriety In support of Mr Kians contention that Mr Sanchez was

not intoxicated Respondent offered the surveillance video This footage is brief compared to the

hour of observation conducted by Agent Sauceda Accordingly the ALJ does not find the

surveillance footage to be dispositive of Mr Sanchezs condition on the night in question

Agent Sauceda observed that Mr Sanchez had the following signs of intoxication he

struggled to keep his eyes open tilted his head back closed his eyes for a few seconds and

swayed from side to side while standing Additionally Mr Sanchez missed his mouth when

attempting to drink from a bottle of beer on more than one occasion Agent Landin fmther

observed that Mr Sanchez had slurred speech and an odor of an alcoholic beverage In addition

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 10

Mr Sanchez was unable to recall the name of a friend who was present at the establishment with

him

While Agent Sauceda observed Mr Sanchez from the tables located near the bar

Mr Kian was in even closer proximity to Mr Sanchez and had a _greater opportunity to observe

his behavior By all accounts there were not many other patrons in the bar and Mr Kian should

have been able to focus his attention on Mr Sanchez Additionally as an experienced bartender

Mr Kian should have been able to identify signs of intoxication Mr Kian testified that he was

familiar with Mr Sanchez who was a regular customer and did not believe him to be

intoxicated Though Mr Kian was more familiar with Mr Sanchez than the T ABC agents the

ALT is mindful of Mr Kians potential bias as Respondents employee Accordingly the ALJ

found the testimony of Agents Sauceda and Landin to be more credible regarding

Mr Sanchezs level of intoxication

Staff recommended that Respondents permit be suspended for 18 days without the

option to pay a civil penalty In support of this request Staff notes that this is

Respondents second sale to an intoxicated person a public safety violation in less than

36 months Staff further argues that such a suspension is warranted because Respondent has no

procedure for tracking whether bartenders and servers are maintaining seller certification

Additionally Staff notes that Mr Kian did not have a current seller certification at the time this

incident occurred

Pursuant to Code sect 1 l64(a) a permittee shall be given an opportunity to pay a civil

penalty in lieu of suspension unless the basis for the suspension is a violation of one of several

listed violations including selling to an intoxicated person under Code sect l l61(b)(14) Because

this is Respondents second sale to an intoxicated person in 36 months and given

Respondents inability to track the seller certification for its employees and Mr Kians lack of

seller certification at the time of this incident the ALJ recommends an 18-day suspension

without the opportunity to pay a civil penalty

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE II

V FINDINGS OF FACT

I MIS Enterprises Inc dba Moulin Rouge (Respondent) holds a Mixed Beverage Permit and a Mixed Beverage Late Hours Permit for the premises located at 8930 Winkler Drive Houston Harris County Texas 77017 The permit was issued on May 8 2000 and has been continuously renewed

2 On August 6 2016 Agent Jeremiah Sauceda went to Respondents establishment in an undercover capacity

3 The establishment had only one bar and one bartender working There were about 20 patrons in the establishment six to seven of those patrons were at the bar

4 Agent Sauceda sat at a table about ten feet away from the bar area He had a clear unobstructed view of the bar

5 Agent Sauceda observed patron Javier Sanchez at the bar

6 Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open tilting his head back closing his eyes for a few seconds and swaying from side to side when standing On more than one occasion Mr Sanchez attempted to drink from a beer bottle and missed his mouth

7 Mr Sanchez was drinking a Michel ob Ultra beer

8 Mr Sanchez leaned into the bartender and ordered another beer

9 The bartender identified as Ali Kian served Mr Sanchez another beer

I0 Mr Kian is a bartender for Respondents establishment where he has worked for approximately 41 years

11 On August 6 2016 Agent Henry Landin participated 111 the investigation of the establishment as a member of the open team

12 Agent Landin observed Mr Sanchez exhibited signs of intoxication including slurred speech and an odor of an alcoholic beverage on his person In addition Mr Sanchez stated that he had a friend with him at the establishment but he could not recall the name of his friend

13 On March 7 2017 Staff of the TABC issued a notice of hearing informing all parties of the hearing in this matter Staffs notice contained the time place and nature of the hearing stated the legal authority and jurisdiction under which the hearing was to be held referenced the paiiicular sections of the statutes and rules involved and included a short plain statement of the matters asserted

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 12

14 The hearing convened on June 2 2017 before State Office of Administrative Hearings (SOAH) Administrative Law Judge Whitney L Stoebner Staff was represented by attorney Shelia A Lindsey-Sanders Respondent was represented by attorney Clyde Burleson The record closed on June 16 2017 in order for the parties to submit written closing arguments

VI CONCLUSIONS OF LAW

I TABC has jurisdiction over this matter pursuant to Texas Alcoholic Beverage Code (Code) chapter 5 and sect 1161

2 SOAH has jurisdiction over all matters related to conducting a hearing in this proceeding including the preparation of a proposal for decision with findings of fact and conclusions of law pursuant to Texas Government Code Chapter 2003

3 Notice of the hearing was provided as required by Texas Government Codesectsect 2001051-052

4 Respondent violated Texas Alcoholic Beverage Codesectsect l l6l(b)(2) and (14)

5 Based on the foregoing findings of fact and conclusions of law Respondents permit should be suspended for a period of 18 days without the opportunity to pay a civil penalty Codesect l l6l(b)(2) (14) and 1164 (a)

SIGNED August 4 2017

~~d 8amp4LltLlt WHITNEY k TO EBNER ADMINISTRATIVE LAW TUDGE STATE OFFICE OF ADMINISTRATIVE HEARINGS

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

DOCKET NO 64114

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER

CAME ON FOR CONSIDERATION this 22nd day of January 2018 the above-styled

and numbered cause

After proper notice was given this case was heard by the State Office of Administrative

Hearings (SOAH) with Administrative Law Judge Whitney Stoebner presiding The hearing

convened on June 2 2017 and the SOAH record closed June 16 2017 The Administrative Law

Judge made and filed a Proposal for Decision containing Findings of Fact and Conclusions of

Law on August 4 2017 The Proposal for Decision was properly served on all parties who were

given an opportunity to file exceptions and replies as part of the record herein No exceptions

were filed

After review and due consideration of the Proposal for Decision and I adopt the Findings

of Fact and Conclusions of Law of the Administrative Law Judge that are contained in the

Proposal for Decision and incorporate those Findings of Fact and Conclusions of Law into this

Order as if such were fully set out and separately stated herein

One point made by the ALJ in her analysis merits clarification She disagreed with both

partiesrsquo proffered definitions of the word ldquointoxicatedrdquo as applied to Sections 1161(b)(2) and (14) of the Texas Alcoholic Beverage Code The correct definition of ldquointoxicatedrdquo is that found in Section 4901 of the Penal Code as argued by the Commission in front of the ALJ Section

4901 provides for a legal definition of the term ldquointoxicatedrdquo while Section 4902 codifies the elements of the crime of public intoxication Because Respondent is not being charged with the

__________________________________________

crime of public intoxication that section is inapposite to this analysis Instead the general

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

definition of ldquointoxicatedrdquo as found in Section 4901 is the appropriate definition to apply for the Texas Alcoholic Beverage Code

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law

and any other requests for general or specific relief submitted by any party are denied unless

specifically adopted herein

IT IS THEREFORE ORDERED that the privileges granted by the Commission and the

activities authorized under the above permit by the Code will be SUSPENDED beginning at

1201 am on February 15th 2018 and shall remain suspended for EIGHTEEN (18) DAYS

This Order will become final and enforceable on the 15th day of February 2018

unless a Motion for Rehearing is filed by the 14th day of February 2018

SIGNED this the 22nd day of January 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 5: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

PAGE4SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION

b Agent Henry Landin

On August 6 2016 Agent Landin paiiicipated in an investigation of the establishment as

a member of the open team According to Agent Landin the open team was not on-site during

the investigation but was in close proximity to the establishment awaiting notification of

violations observed by the undercover agents At 1010 pm the undercover agents notified the

open team via text message of a sale to an intoxicated person The open team anived on the

premises about 1015 pm Agent Landin entered the establishment and observed an individual

matching the description provided by the undercover agents At the time Agent Landin entered

the establishment there were only about seven to eight people in the bar area Agent Landin

made contact with the individual identified as Mr Sanchez by his Texas drivers license and

asked him to come outside

6 Staffs Ex 5

When Agent Landin first approached Mr Sanchez he seemed confused Agent Landin

fmiher observed Mr Sanchez had slurred speech and an odor of alcohol on his person

Mr Sanchez stated he had a few drinks but did not provide an exact number He stated that he

had a friend inside the establishment who could take him home but he could not recall his

friends name He then said his sister could come to the establishment to take him home

Agent Landin has encountered intoxicated people previously through his work in law

enforcement He stated that the odor of alcohol slmTed speech and swaying are all signs of

intoxication He further stated that missing ones mouth when drinking a beer would also be a

sign of intoxication and a bartender should pay attention to these signs He stated that

bartenders have a duty to pay attention to their customers and take note of unusual behaviors

Though such signs might not necessarily mean someone is intoxicated a baiiender should make

contact with patrons to ascertain the cause of such behaviors He further stated that not all

intoxicated individuals are belligerent or argumentative

On cross-examination Agent Landin stated that Mr Sanchez did not have red glassy

eyes and he was not belligerent Mr Sanchez was cooperative He did not break bottles start a

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGES

fight or indicate that he intended to drive a vehicle Agent Landin stated Mr Sanchez was not a

danger to himself or others When walking outside Mr Sanchez weaved but did not trip He

did not use the stage for balance Agent Landin stated he had never met Mr Sanchez prior to

that night and was not familiar with his regular speech pattern Agent Landin was trained to

conduct Standardized Field Sobriety Tests (SFST) including the Horizontal Gaze Nystagmus test

(HON) Walk and Turn and One Leg Stand but he did not administer SFST on Mr Sanchez

When Mr Sanchezs sister arrived he did not require assistance getting into her vehicle nor did

he stumble as he did so By the time his sister arrived Mr Sanchez was less intoxicated

Agent Landin stated that if a person has lost his motor skills or cannot fully comprehend

what he is doing he is intoxicated He agreed that the Code does not define intoxication and

that the Penal Code provides two definitions The Driving While Intoxicated (DWI) standard

defines intoxication as the loss of ones mental or physical faculties The definition for the

offense of Public Intoxication requires that an individual be a danger to himself or others

c Agent Dwight Green

On August 6 2016 Agent Green participated on the open team during the investigation

of the establishment The open team received notification that a violation had occurred and

entered the establishment Agent Green made contact with the server identified as Ali Kian

who was familiar with Mr Sanchez and said he was a regular customer of the establishment 8

Mr Kian was the only bartender working that night and two waitresses were also working

Mr Kian provided a receipt to Agent Green and stated that the entire balance did not belong to

Mr Sanchez Mr Kian further stated that Mr Sanchez had been at the bar for about 4 hours

during which time he consumed four beers Agent Green spoke to the manager of the

establishment Jessie Monseveiz and then reported to the parking lot where he observed

7 On re-direct examination Agent Sanchez clarified that SFST are not required by the TABC for this type of an investigation because bartenders are not trained to administer these tests Thus use of SFST to determine intoxication would be unfair because this would not be a skill that bai1enders would be able to utilize

8 Staffs Ex 6 9 Staffs Ex 7 consisted of the receipt Mr Kian provided to Mr Sanchez The receipt was almost entirely illegible with the exception of the total balance which was not clear Accordingly no weight was given to this exhibit

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE6

Mr Sanchez waiting for his ride Agent Green observed that Mr Sanchez had a dazed

expression glossy eyes and swayed from side to side

On cross-examination Agent Green admitted he had very little interaction with

Mr Sanchez Mr Kian told Agent Green that he (Mr Kian) did not believe Mr Sanchez to be

intoxicated

2 Respondents Evidence

a Ali Kian

At the time of this investigation Mr Kian had been employed as a bartender for the

establishment for approximately 4Y years As a bartender he is aware of the signs of

intoxication such as slurred speech making crazy scenes or speaking in a loud voice He needs

to be able to identify the signs of intoxication so that he can control his customers Mr IZian

stated that he never over-serves customers He further stated that his job security is more

important than the few extra dollars he would earn by over-serving

On the night in question Mr Gans shift began around 700 pm He was the only

bartender working and he was the only person serving Mr Sanchez Mr Kian has known

Mr Sanchez for about 2 years and is familiar with his normal appearance and manner of

walking Mr Sanchez normally drinks Michelob Ultra which is what he was drinking that

night Mr Kian did not observe Mr Sanchez acting abnormally that night Mr Sanchez did not

lean on the bar with his eyes closed nor did he sway or trip Additionally Mr Sanchezs eyes

were not red

The T ABC agents entered the bar area and told Mr Kian they needed to speak to him

One of the agents said Mr Sanchez was intoxicated Mr Kian told the agents that Mr Sanchez

had been at the establishment for 4 hours during which time he drank three and a half Michelob

Ultras Mr Kian told the agents he was sure Mr Sanchez was not intoxicated One of the agents

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE

told Mr Kian that Mr Sanchez had red eyes Mr Gan took a flashlight out into the parking lot

to show the agents that Mr Sanchezs eyes were not red

On cross-examination Mr Kian stated that he interacted with Mr Sanchez when he first

started his shift Mr Kian did not ask Mr Sanchez where he had been prior to aniving at the

establishment nor did he ask whether he had consumed alcohol prior to coming to the

establishment Mr Kian stated that he always evaluates his customers before serving them He

has been trained to identify intoxicated individuals by T ABC and by his manager On the night

in question he was not seller-server certified

b Mohammad Espari

Mohammad Espari has been the general manager of the establishment since 2004 As the

general manager his duties include hiring firing and training employees ordering supplies

and ensuring the club runs properly Mr Espari also holds monthly meetings with managers and

bartenders During these meetings he reminds employees not to sell to individuals who are

underage or intoxicated Additionally Mr Espari provides employees with a booklet when they

are hired At the end of the booklet employees sign a statement which provides in relevant part

I understand that our business is dedicated to safe and responsible sales and service of alcohol I will not knowingly serve alcohol to an underage or obviously intoxicated person

On August 6 2016 Mr Espari was not present at the establishment but he was aware

that T ABC agents came to the establishment on that date He acknowledged that the

establishment had a video surveillance system Mr Espari reviewed a segment of the

surveillance video footage during the hearing He stated that the angle of the camera was similar

to the angle from which the agents observed the bar during the investigation He further stated

there is nothing in the video footage to indicate Mr Sanchez was intoxicated

On cross-examination Mr Espari stated that the establishment requires the servers to be

T ABC certified but conceded there is no written policy regarding this requirement He stated

PAGESSOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION

that he understands that Mr Kians certification had expired at the time of this investigation

When he hires employees he asks for a copy of their certification According to Mr Espari the

employees are responsible for renewing their certification upon expiration The establishment

did not track employee certifications

c Video

Respondent offered a copy of the establishments surveillance video from the night of the

incidentdeg The video is approximately 1 I minutes long and depicts three T ABC agents entering

the establishment Two of the agents made contact with Mr Sanchez Mr Sanchez leaned over

to a patron seated to his left and spoke to him Mr Sanchez then walked away from the bar area

with the agents When exiting the establishment Mr Sanchez did not trip or stumble

IV RECOMMENDATION

The evidence establishes that Respondents agent servant or employee violated a section

of the Code by selling serving or delivering an alcoholic beverage to an intoxicated person It is

uncontested that Mr Kian was Respondents agent servant or employee It is further

uncontested that Mr Kian sold served or delivered an alcoholic beverage specifically beer to

Mr Sanchez The parties disagree however regarding the definition of intoxication and

whether Mr Sanchez was intoxicated

Staff argues that intoxication should be defined using the definition found in

Penal Code sect 490 I which is the definition of intoxication used for the offense of Driving While

Intoxicated Respondent argues that intoxication should be defined under Penal Code sect 4902

deg Respondents Ex 2

11 Under Penal Codesect 4901 intoxicated is defined as

(A) not having the normal use of mental or physical faculties by reason of the introduction of alcohol controlled substance a drug a dangerous drug a combination of two or more of those substances or any other substances into the body or

(B) having an alcohol concentration of 008 or more

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE9

which provides the definition for the offense of Public Intoxication 12

12 Under Penal Codesect 4902 it is a crime ifa person appears in a public place while intoxicated to the degree that the person may endanger the person or another In support of this definition Respondent cites 16 Texas Administrative Code (TAC) sect 45103(b) which provides that Penal Code sect 4902 applies to the charge of excessive consumption The charge in this case however is sale to an intoxicated person

After reviewing the briefs

and arguments of both parties the ALJ finds that while the Code may have previously applied

the definition of intoxication found in Penal Code sect 4901 for purposes of sale of alcohol to an

intoxicated person it is no longer clear that this definition applies The Code cu1Tently

references both Penal Code definitions in Appendix F However neither definition is clearly

linked to the sale of alcohol to an intoxicated person

As neither definition of intoxication proposed by the parties clearly applies the ALJ finds

the appropriate analysis is a reasonably prudent person standard A licensee owes a duty to the

general public not to serve alcohol to a patron when the licensee knows or should have known

the patron is intoxicated A specific intent to violate the statute is not required In this case

Mr Kian is held to an objective standard of what a reasonably prudent bartender would have

observed Upon a review of the evidence the ALJ finds Mr Sanchez was intoxicated and

further finds Mr Kian should have recognized the signs of intoxication exhibited by

Mr Sanchez

After observing Mr Sanchez that evening TABC agents and Mr Kian reached opposite

conclusions regarding his sobriety In support of Mr Kians contention that Mr Sanchez was

not intoxicated Respondent offered the surveillance video This footage is brief compared to the

hour of observation conducted by Agent Sauceda Accordingly the ALJ does not find the

surveillance footage to be dispositive of Mr Sanchezs condition on the night in question

Agent Sauceda observed that Mr Sanchez had the following signs of intoxication he

struggled to keep his eyes open tilted his head back closed his eyes for a few seconds and

swayed from side to side while standing Additionally Mr Sanchez missed his mouth when

attempting to drink from a bottle of beer on more than one occasion Agent Landin fmther

observed that Mr Sanchez had slurred speech and an odor of an alcoholic beverage In addition

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 10

Mr Sanchez was unable to recall the name of a friend who was present at the establishment with

him

While Agent Sauceda observed Mr Sanchez from the tables located near the bar

Mr Kian was in even closer proximity to Mr Sanchez and had a _greater opportunity to observe

his behavior By all accounts there were not many other patrons in the bar and Mr Kian should

have been able to focus his attention on Mr Sanchez Additionally as an experienced bartender

Mr Kian should have been able to identify signs of intoxication Mr Kian testified that he was

familiar with Mr Sanchez who was a regular customer and did not believe him to be

intoxicated Though Mr Kian was more familiar with Mr Sanchez than the T ABC agents the

ALT is mindful of Mr Kians potential bias as Respondents employee Accordingly the ALJ

found the testimony of Agents Sauceda and Landin to be more credible regarding

Mr Sanchezs level of intoxication

Staff recommended that Respondents permit be suspended for 18 days without the

option to pay a civil penalty In support of this request Staff notes that this is

Respondents second sale to an intoxicated person a public safety violation in less than

36 months Staff further argues that such a suspension is warranted because Respondent has no

procedure for tracking whether bartenders and servers are maintaining seller certification

Additionally Staff notes that Mr Kian did not have a current seller certification at the time this

incident occurred

Pursuant to Code sect 1 l64(a) a permittee shall be given an opportunity to pay a civil

penalty in lieu of suspension unless the basis for the suspension is a violation of one of several

listed violations including selling to an intoxicated person under Code sect l l61(b)(14) Because

this is Respondents second sale to an intoxicated person in 36 months and given

Respondents inability to track the seller certification for its employees and Mr Kians lack of

seller certification at the time of this incident the ALJ recommends an 18-day suspension

without the opportunity to pay a civil penalty

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE II

V FINDINGS OF FACT

I MIS Enterprises Inc dba Moulin Rouge (Respondent) holds a Mixed Beverage Permit and a Mixed Beverage Late Hours Permit for the premises located at 8930 Winkler Drive Houston Harris County Texas 77017 The permit was issued on May 8 2000 and has been continuously renewed

2 On August 6 2016 Agent Jeremiah Sauceda went to Respondents establishment in an undercover capacity

3 The establishment had only one bar and one bartender working There were about 20 patrons in the establishment six to seven of those patrons were at the bar

4 Agent Sauceda sat at a table about ten feet away from the bar area He had a clear unobstructed view of the bar

5 Agent Sauceda observed patron Javier Sanchez at the bar

6 Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open tilting his head back closing his eyes for a few seconds and swaying from side to side when standing On more than one occasion Mr Sanchez attempted to drink from a beer bottle and missed his mouth

7 Mr Sanchez was drinking a Michel ob Ultra beer

8 Mr Sanchez leaned into the bartender and ordered another beer

9 The bartender identified as Ali Kian served Mr Sanchez another beer

I0 Mr Kian is a bartender for Respondents establishment where he has worked for approximately 41 years

11 On August 6 2016 Agent Henry Landin participated 111 the investigation of the establishment as a member of the open team

12 Agent Landin observed Mr Sanchez exhibited signs of intoxication including slurred speech and an odor of an alcoholic beverage on his person In addition Mr Sanchez stated that he had a friend with him at the establishment but he could not recall the name of his friend

13 On March 7 2017 Staff of the TABC issued a notice of hearing informing all parties of the hearing in this matter Staffs notice contained the time place and nature of the hearing stated the legal authority and jurisdiction under which the hearing was to be held referenced the paiiicular sections of the statutes and rules involved and included a short plain statement of the matters asserted

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 12

14 The hearing convened on June 2 2017 before State Office of Administrative Hearings (SOAH) Administrative Law Judge Whitney L Stoebner Staff was represented by attorney Shelia A Lindsey-Sanders Respondent was represented by attorney Clyde Burleson The record closed on June 16 2017 in order for the parties to submit written closing arguments

VI CONCLUSIONS OF LAW

I TABC has jurisdiction over this matter pursuant to Texas Alcoholic Beverage Code (Code) chapter 5 and sect 1161

2 SOAH has jurisdiction over all matters related to conducting a hearing in this proceeding including the preparation of a proposal for decision with findings of fact and conclusions of law pursuant to Texas Government Code Chapter 2003

3 Notice of the hearing was provided as required by Texas Government Codesectsect 2001051-052

4 Respondent violated Texas Alcoholic Beverage Codesectsect l l6l(b)(2) and (14)

5 Based on the foregoing findings of fact and conclusions of law Respondents permit should be suspended for a period of 18 days without the opportunity to pay a civil penalty Codesect l l6l(b)(2) (14) and 1164 (a)

SIGNED August 4 2017

~~d 8amp4LltLlt WHITNEY k TO EBNER ADMINISTRATIVE LAW TUDGE STATE OFFICE OF ADMINISTRATIVE HEARINGS

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

DOCKET NO 64114

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER

CAME ON FOR CONSIDERATION this 22nd day of January 2018 the above-styled

and numbered cause

After proper notice was given this case was heard by the State Office of Administrative

Hearings (SOAH) with Administrative Law Judge Whitney Stoebner presiding The hearing

convened on June 2 2017 and the SOAH record closed June 16 2017 The Administrative Law

Judge made and filed a Proposal for Decision containing Findings of Fact and Conclusions of

Law on August 4 2017 The Proposal for Decision was properly served on all parties who were

given an opportunity to file exceptions and replies as part of the record herein No exceptions

were filed

After review and due consideration of the Proposal for Decision and I adopt the Findings

of Fact and Conclusions of Law of the Administrative Law Judge that are contained in the

Proposal for Decision and incorporate those Findings of Fact and Conclusions of Law into this

Order as if such were fully set out and separately stated herein

One point made by the ALJ in her analysis merits clarification She disagreed with both

partiesrsquo proffered definitions of the word ldquointoxicatedrdquo as applied to Sections 1161(b)(2) and (14) of the Texas Alcoholic Beverage Code The correct definition of ldquointoxicatedrdquo is that found in Section 4901 of the Penal Code as argued by the Commission in front of the ALJ Section

4901 provides for a legal definition of the term ldquointoxicatedrdquo while Section 4902 codifies the elements of the crime of public intoxication Because Respondent is not being charged with the

__________________________________________

crime of public intoxication that section is inapposite to this analysis Instead the general

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

definition of ldquointoxicatedrdquo as found in Section 4901 is the appropriate definition to apply for the Texas Alcoholic Beverage Code

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law

and any other requests for general or specific relief submitted by any party are denied unless

specifically adopted herein

IT IS THEREFORE ORDERED that the privileges granted by the Commission and the

activities authorized under the above permit by the Code will be SUSPENDED beginning at

1201 am on February 15th 2018 and shall remain suspended for EIGHTEEN (18) DAYS

This Order will become final and enforceable on the 15th day of February 2018

unless a Motion for Rehearing is filed by the 14th day of February 2018

SIGNED this the 22nd day of January 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 6: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGES

fight or indicate that he intended to drive a vehicle Agent Landin stated Mr Sanchez was not a

danger to himself or others When walking outside Mr Sanchez weaved but did not trip He

did not use the stage for balance Agent Landin stated he had never met Mr Sanchez prior to

that night and was not familiar with his regular speech pattern Agent Landin was trained to

conduct Standardized Field Sobriety Tests (SFST) including the Horizontal Gaze Nystagmus test

(HON) Walk and Turn and One Leg Stand but he did not administer SFST on Mr Sanchez

When Mr Sanchezs sister arrived he did not require assistance getting into her vehicle nor did

he stumble as he did so By the time his sister arrived Mr Sanchez was less intoxicated

Agent Landin stated that if a person has lost his motor skills or cannot fully comprehend

what he is doing he is intoxicated He agreed that the Code does not define intoxication and

that the Penal Code provides two definitions The Driving While Intoxicated (DWI) standard

defines intoxication as the loss of ones mental or physical faculties The definition for the

offense of Public Intoxication requires that an individual be a danger to himself or others

c Agent Dwight Green

On August 6 2016 Agent Green participated on the open team during the investigation

of the establishment The open team received notification that a violation had occurred and

entered the establishment Agent Green made contact with the server identified as Ali Kian

who was familiar with Mr Sanchez and said he was a regular customer of the establishment 8

Mr Kian was the only bartender working that night and two waitresses were also working

Mr Kian provided a receipt to Agent Green and stated that the entire balance did not belong to

Mr Sanchez Mr Kian further stated that Mr Sanchez had been at the bar for about 4 hours

during which time he consumed four beers Agent Green spoke to the manager of the

establishment Jessie Monseveiz and then reported to the parking lot where he observed

7 On re-direct examination Agent Sanchez clarified that SFST are not required by the TABC for this type of an investigation because bartenders are not trained to administer these tests Thus use of SFST to determine intoxication would be unfair because this would not be a skill that bai1enders would be able to utilize

8 Staffs Ex 6 9 Staffs Ex 7 consisted of the receipt Mr Kian provided to Mr Sanchez The receipt was almost entirely illegible with the exception of the total balance which was not clear Accordingly no weight was given to this exhibit

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE6

Mr Sanchez waiting for his ride Agent Green observed that Mr Sanchez had a dazed

expression glossy eyes and swayed from side to side

On cross-examination Agent Green admitted he had very little interaction with

Mr Sanchez Mr Kian told Agent Green that he (Mr Kian) did not believe Mr Sanchez to be

intoxicated

2 Respondents Evidence

a Ali Kian

At the time of this investigation Mr Kian had been employed as a bartender for the

establishment for approximately 4Y years As a bartender he is aware of the signs of

intoxication such as slurred speech making crazy scenes or speaking in a loud voice He needs

to be able to identify the signs of intoxication so that he can control his customers Mr IZian

stated that he never over-serves customers He further stated that his job security is more

important than the few extra dollars he would earn by over-serving

On the night in question Mr Gans shift began around 700 pm He was the only

bartender working and he was the only person serving Mr Sanchez Mr Kian has known

Mr Sanchez for about 2 years and is familiar with his normal appearance and manner of

walking Mr Sanchez normally drinks Michelob Ultra which is what he was drinking that

night Mr Kian did not observe Mr Sanchez acting abnormally that night Mr Sanchez did not

lean on the bar with his eyes closed nor did he sway or trip Additionally Mr Sanchezs eyes

were not red

The T ABC agents entered the bar area and told Mr Kian they needed to speak to him

One of the agents said Mr Sanchez was intoxicated Mr Kian told the agents that Mr Sanchez

had been at the establishment for 4 hours during which time he drank three and a half Michelob

Ultras Mr Kian told the agents he was sure Mr Sanchez was not intoxicated One of the agents

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE

told Mr Kian that Mr Sanchez had red eyes Mr Gan took a flashlight out into the parking lot

to show the agents that Mr Sanchezs eyes were not red

On cross-examination Mr Kian stated that he interacted with Mr Sanchez when he first

started his shift Mr Kian did not ask Mr Sanchez where he had been prior to aniving at the

establishment nor did he ask whether he had consumed alcohol prior to coming to the

establishment Mr Kian stated that he always evaluates his customers before serving them He

has been trained to identify intoxicated individuals by T ABC and by his manager On the night

in question he was not seller-server certified

b Mohammad Espari

Mohammad Espari has been the general manager of the establishment since 2004 As the

general manager his duties include hiring firing and training employees ordering supplies

and ensuring the club runs properly Mr Espari also holds monthly meetings with managers and

bartenders During these meetings he reminds employees not to sell to individuals who are

underage or intoxicated Additionally Mr Espari provides employees with a booklet when they

are hired At the end of the booklet employees sign a statement which provides in relevant part

I understand that our business is dedicated to safe and responsible sales and service of alcohol I will not knowingly serve alcohol to an underage or obviously intoxicated person

On August 6 2016 Mr Espari was not present at the establishment but he was aware

that T ABC agents came to the establishment on that date He acknowledged that the

establishment had a video surveillance system Mr Espari reviewed a segment of the

surveillance video footage during the hearing He stated that the angle of the camera was similar

to the angle from which the agents observed the bar during the investigation He further stated

there is nothing in the video footage to indicate Mr Sanchez was intoxicated

On cross-examination Mr Espari stated that the establishment requires the servers to be

T ABC certified but conceded there is no written policy regarding this requirement He stated

PAGESSOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION

that he understands that Mr Kians certification had expired at the time of this investigation

When he hires employees he asks for a copy of their certification According to Mr Espari the

employees are responsible for renewing their certification upon expiration The establishment

did not track employee certifications

c Video

Respondent offered a copy of the establishments surveillance video from the night of the

incidentdeg The video is approximately 1 I minutes long and depicts three T ABC agents entering

the establishment Two of the agents made contact with Mr Sanchez Mr Sanchez leaned over

to a patron seated to his left and spoke to him Mr Sanchez then walked away from the bar area

with the agents When exiting the establishment Mr Sanchez did not trip or stumble

IV RECOMMENDATION

The evidence establishes that Respondents agent servant or employee violated a section

of the Code by selling serving or delivering an alcoholic beverage to an intoxicated person It is

uncontested that Mr Kian was Respondents agent servant or employee It is further

uncontested that Mr Kian sold served or delivered an alcoholic beverage specifically beer to

Mr Sanchez The parties disagree however regarding the definition of intoxication and

whether Mr Sanchez was intoxicated

Staff argues that intoxication should be defined using the definition found in

Penal Code sect 490 I which is the definition of intoxication used for the offense of Driving While

Intoxicated Respondent argues that intoxication should be defined under Penal Code sect 4902

deg Respondents Ex 2

11 Under Penal Codesect 4901 intoxicated is defined as

(A) not having the normal use of mental or physical faculties by reason of the introduction of alcohol controlled substance a drug a dangerous drug a combination of two or more of those substances or any other substances into the body or

(B) having an alcohol concentration of 008 or more

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE9

which provides the definition for the offense of Public Intoxication 12

12 Under Penal Codesect 4902 it is a crime ifa person appears in a public place while intoxicated to the degree that the person may endanger the person or another In support of this definition Respondent cites 16 Texas Administrative Code (TAC) sect 45103(b) which provides that Penal Code sect 4902 applies to the charge of excessive consumption The charge in this case however is sale to an intoxicated person

After reviewing the briefs

and arguments of both parties the ALJ finds that while the Code may have previously applied

the definition of intoxication found in Penal Code sect 4901 for purposes of sale of alcohol to an

intoxicated person it is no longer clear that this definition applies The Code cu1Tently

references both Penal Code definitions in Appendix F However neither definition is clearly

linked to the sale of alcohol to an intoxicated person

As neither definition of intoxication proposed by the parties clearly applies the ALJ finds

the appropriate analysis is a reasonably prudent person standard A licensee owes a duty to the

general public not to serve alcohol to a patron when the licensee knows or should have known

the patron is intoxicated A specific intent to violate the statute is not required In this case

Mr Kian is held to an objective standard of what a reasonably prudent bartender would have

observed Upon a review of the evidence the ALJ finds Mr Sanchez was intoxicated and

further finds Mr Kian should have recognized the signs of intoxication exhibited by

Mr Sanchez

After observing Mr Sanchez that evening TABC agents and Mr Kian reached opposite

conclusions regarding his sobriety In support of Mr Kians contention that Mr Sanchez was

not intoxicated Respondent offered the surveillance video This footage is brief compared to the

hour of observation conducted by Agent Sauceda Accordingly the ALJ does not find the

surveillance footage to be dispositive of Mr Sanchezs condition on the night in question

Agent Sauceda observed that Mr Sanchez had the following signs of intoxication he

struggled to keep his eyes open tilted his head back closed his eyes for a few seconds and

swayed from side to side while standing Additionally Mr Sanchez missed his mouth when

attempting to drink from a bottle of beer on more than one occasion Agent Landin fmther

observed that Mr Sanchez had slurred speech and an odor of an alcoholic beverage In addition

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 10

Mr Sanchez was unable to recall the name of a friend who was present at the establishment with

him

While Agent Sauceda observed Mr Sanchez from the tables located near the bar

Mr Kian was in even closer proximity to Mr Sanchez and had a _greater opportunity to observe

his behavior By all accounts there were not many other patrons in the bar and Mr Kian should

have been able to focus his attention on Mr Sanchez Additionally as an experienced bartender

Mr Kian should have been able to identify signs of intoxication Mr Kian testified that he was

familiar with Mr Sanchez who was a regular customer and did not believe him to be

intoxicated Though Mr Kian was more familiar with Mr Sanchez than the T ABC agents the

ALT is mindful of Mr Kians potential bias as Respondents employee Accordingly the ALJ

found the testimony of Agents Sauceda and Landin to be more credible regarding

Mr Sanchezs level of intoxication

Staff recommended that Respondents permit be suspended for 18 days without the

option to pay a civil penalty In support of this request Staff notes that this is

Respondents second sale to an intoxicated person a public safety violation in less than

36 months Staff further argues that such a suspension is warranted because Respondent has no

procedure for tracking whether bartenders and servers are maintaining seller certification

Additionally Staff notes that Mr Kian did not have a current seller certification at the time this

incident occurred

Pursuant to Code sect 1 l64(a) a permittee shall be given an opportunity to pay a civil

penalty in lieu of suspension unless the basis for the suspension is a violation of one of several

listed violations including selling to an intoxicated person under Code sect l l61(b)(14) Because

this is Respondents second sale to an intoxicated person in 36 months and given

Respondents inability to track the seller certification for its employees and Mr Kians lack of

seller certification at the time of this incident the ALJ recommends an 18-day suspension

without the opportunity to pay a civil penalty

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE II

V FINDINGS OF FACT

I MIS Enterprises Inc dba Moulin Rouge (Respondent) holds a Mixed Beverage Permit and a Mixed Beverage Late Hours Permit for the premises located at 8930 Winkler Drive Houston Harris County Texas 77017 The permit was issued on May 8 2000 and has been continuously renewed

2 On August 6 2016 Agent Jeremiah Sauceda went to Respondents establishment in an undercover capacity

3 The establishment had only one bar and one bartender working There were about 20 patrons in the establishment six to seven of those patrons were at the bar

4 Agent Sauceda sat at a table about ten feet away from the bar area He had a clear unobstructed view of the bar

5 Agent Sauceda observed patron Javier Sanchez at the bar

6 Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open tilting his head back closing his eyes for a few seconds and swaying from side to side when standing On more than one occasion Mr Sanchez attempted to drink from a beer bottle and missed his mouth

7 Mr Sanchez was drinking a Michel ob Ultra beer

8 Mr Sanchez leaned into the bartender and ordered another beer

9 The bartender identified as Ali Kian served Mr Sanchez another beer

I0 Mr Kian is a bartender for Respondents establishment where he has worked for approximately 41 years

11 On August 6 2016 Agent Henry Landin participated 111 the investigation of the establishment as a member of the open team

12 Agent Landin observed Mr Sanchez exhibited signs of intoxication including slurred speech and an odor of an alcoholic beverage on his person In addition Mr Sanchez stated that he had a friend with him at the establishment but he could not recall the name of his friend

13 On March 7 2017 Staff of the TABC issued a notice of hearing informing all parties of the hearing in this matter Staffs notice contained the time place and nature of the hearing stated the legal authority and jurisdiction under which the hearing was to be held referenced the paiiicular sections of the statutes and rules involved and included a short plain statement of the matters asserted

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 12

14 The hearing convened on June 2 2017 before State Office of Administrative Hearings (SOAH) Administrative Law Judge Whitney L Stoebner Staff was represented by attorney Shelia A Lindsey-Sanders Respondent was represented by attorney Clyde Burleson The record closed on June 16 2017 in order for the parties to submit written closing arguments

VI CONCLUSIONS OF LAW

I TABC has jurisdiction over this matter pursuant to Texas Alcoholic Beverage Code (Code) chapter 5 and sect 1161

2 SOAH has jurisdiction over all matters related to conducting a hearing in this proceeding including the preparation of a proposal for decision with findings of fact and conclusions of law pursuant to Texas Government Code Chapter 2003

3 Notice of the hearing was provided as required by Texas Government Codesectsect 2001051-052

4 Respondent violated Texas Alcoholic Beverage Codesectsect l l6l(b)(2) and (14)

5 Based on the foregoing findings of fact and conclusions of law Respondents permit should be suspended for a period of 18 days without the opportunity to pay a civil penalty Codesect l l6l(b)(2) (14) and 1164 (a)

SIGNED August 4 2017

~~d 8amp4LltLlt WHITNEY k TO EBNER ADMINISTRATIVE LAW TUDGE STATE OFFICE OF ADMINISTRATIVE HEARINGS

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

DOCKET NO 64114

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER

CAME ON FOR CONSIDERATION this 22nd day of January 2018 the above-styled

and numbered cause

After proper notice was given this case was heard by the State Office of Administrative

Hearings (SOAH) with Administrative Law Judge Whitney Stoebner presiding The hearing

convened on June 2 2017 and the SOAH record closed June 16 2017 The Administrative Law

Judge made and filed a Proposal for Decision containing Findings of Fact and Conclusions of

Law on August 4 2017 The Proposal for Decision was properly served on all parties who were

given an opportunity to file exceptions and replies as part of the record herein No exceptions

were filed

After review and due consideration of the Proposal for Decision and I adopt the Findings

of Fact and Conclusions of Law of the Administrative Law Judge that are contained in the

Proposal for Decision and incorporate those Findings of Fact and Conclusions of Law into this

Order as if such were fully set out and separately stated herein

One point made by the ALJ in her analysis merits clarification She disagreed with both

partiesrsquo proffered definitions of the word ldquointoxicatedrdquo as applied to Sections 1161(b)(2) and (14) of the Texas Alcoholic Beverage Code The correct definition of ldquointoxicatedrdquo is that found in Section 4901 of the Penal Code as argued by the Commission in front of the ALJ Section

4901 provides for a legal definition of the term ldquointoxicatedrdquo while Section 4902 codifies the elements of the crime of public intoxication Because Respondent is not being charged with the

__________________________________________

crime of public intoxication that section is inapposite to this analysis Instead the general

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

definition of ldquointoxicatedrdquo as found in Section 4901 is the appropriate definition to apply for the Texas Alcoholic Beverage Code

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law

and any other requests for general or specific relief submitted by any party are denied unless

specifically adopted herein

IT IS THEREFORE ORDERED that the privileges granted by the Commission and the

activities authorized under the above permit by the Code will be SUSPENDED beginning at

1201 am on February 15th 2018 and shall remain suspended for EIGHTEEN (18) DAYS

This Order will become final and enforceable on the 15th day of February 2018

unless a Motion for Rehearing is filed by the 14th day of February 2018

SIGNED this the 22nd day of January 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 7: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE6

Mr Sanchez waiting for his ride Agent Green observed that Mr Sanchez had a dazed

expression glossy eyes and swayed from side to side

On cross-examination Agent Green admitted he had very little interaction with

Mr Sanchez Mr Kian told Agent Green that he (Mr Kian) did not believe Mr Sanchez to be

intoxicated

2 Respondents Evidence

a Ali Kian

At the time of this investigation Mr Kian had been employed as a bartender for the

establishment for approximately 4Y years As a bartender he is aware of the signs of

intoxication such as slurred speech making crazy scenes or speaking in a loud voice He needs

to be able to identify the signs of intoxication so that he can control his customers Mr IZian

stated that he never over-serves customers He further stated that his job security is more

important than the few extra dollars he would earn by over-serving

On the night in question Mr Gans shift began around 700 pm He was the only

bartender working and he was the only person serving Mr Sanchez Mr Kian has known

Mr Sanchez for about 2 years and is familiar with his normal appearance and manner of

walking Mr Sanchez normally drinks Michelob Ultra which is what he was drinking that

night Mr Kian did not observe Mr Sanchez acting abnormally that night Mr Sanchez did not

lean on the bar with his eyes closed nor did he sway or trip Additionally Mr Sanchezs eyes

were not red

The T ABC agents entered the bar area and told Mr Kian they needed to speak to him

One of the agents said Mr Sanchez was intoxicated Mr Kian told the agents that Mr Sanchez

had been at the establishment for 4 hours during which time he drank three and a half Michelob

Ultras Mr Kian told the agents he was sure Mr Sanchez was not intoxicated One of the agents

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE

told Mr Kian that Mr Sanchez had red eyes Mr Gan took a flashlight out into the parking lot

to show the agents that Mr Sanchezs eyes were not red

On cross-examination Mr Kian stated that he interacted with Mr Sanchez when he first

started his shift Mr Kian did not ask Mr Sanchez where he had been prior to aniving at the

establishment nor did he ask whether he had consumed alcohol prior to coming to the

establishment Mr Kian stated that he always evaluates his customers before serving them He

has been trained to identify intoxicated individuals by T ABC and by his manager On the night

in question he was not seller-server certified

b Mohammad Espari

Mohammad Espari has been the general manager of the establishment since 2004 As the

general manager his duties include hiring firing and training employees ordering supplies

and ensuring the club runs properly Mr Espari also holds monthly meetings with managers and

bartenders During these meetings he reminds employees not to sell to individuals who are

underage or intoxicated Additionally Mr Espari provides employees with a booklet when they

are hired At the end of the booklet employees sign a statement which provides in relevant part

I understand that our business is dedicated to safe and responsible sales and service of alcohol I will not knowingly serve alcohol to an underage or obviously intoxicated person

On August 6 2016 Mr Espari was not present at the establishment but he was aware

that T ABC agents came to the establishment on that date He acknowledged that the

establishment had a video surveillance system Mr Espari reviewed a segment of the

surveillance video footage during the hearing He stated that the angle of the camera was similar

to the angle from which the agents observed the bar during the investigation He further stated

there is nothing in the video footage to indicate Mr Sanchez was intoxicated

On cross-examination Mr Espari stated that the establishment requires the servers to be

T ABC certified but conceded there is no written policy regarding this requirement He stated

PAGESSOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION

that he understands that Mr Kians certification had expired at the time of this investigation

When he hires employees he asks for a copy of their certification According to Mr Espari the

employees are responsible for renewing their certification upon expiration The establishment

did not track employee certifications

c Video

Respondent offered a copy of the establishments surveillance video from the night of the

incidentdeg The video is approximately 1 I minutes long and depicts three T ABC agents entering

the establishment Two of the agents made contact with Mr Sanchez Mr Sanchez leaned over

to a patron seated to his left and spoke to him Mr Sanchez then walked away from the bar area

with the agents When exiting the establishment Mr Sanchez did not trip or stumble

IV RECOMMENDATION

The evidence establishes that Respondents agent servant or employee violated a section

of the Code by selling serving or delivering an alcoholic beverage to an intoxicated person It is

uncontested that Mr Kian was Respondents agent servant or employee It is further

uncontested that Mr Kian sold served or delivered an alcoholic beverage specifically beer to

Mr Sanchez The parties disagree however regarding the definition of intoxication and

whether Mr Sanchez was intoxicated

Staff argues that intoxication should be defined using the definition found in

Penal Code sect 490 I which is the definition of intoxication used for the offense of Driving While

Intoxicated Respondent argues that intoxication should be defined under Penal Code sect 4902

deg Respondents Ex 2

11 Under Penal Codesect 4901 intoxicated is defined as

(A) not having the normal use of mental or physical faculties by reason of the introduction of alcohol controlled substance a drug a dangerous drug a combination of two or more of those substances or any other substances into the body or

(B) having an alcohol concentration of 008 or more

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE9

which provides the definition for the offense of Public Intoxication 12

12 Under Penal Codesect 4902 it is a crime ifa person appears in a public place while intoxicated to the degree that the person may endanger the person or another In support of this definition Respondent cites 16 Texas Administrative Code (TAC) sect 45103(b) which provides that Penal Code sect 4902 applies to the charge of excessive consumption The charge in this case however is sale to an intoxicated person

After reviewing the briefs

and arguments of both parties the ALJ finds that while the Code may have previously applied

the definition of intoxication found in Penal Code sect 4901 for purposes of sale of alcohol to an

intoxicated person it is no longer clear that this definition applies The Code cu1Tently

references both Penal Code definitions in Appendix F However neither definition is clearly

linked to the sale of alcohol to an intoxicated person

As neither definition of intoxication proposed by the parties clearly applies the ALJ finds

the appropriate analysis is a reasonably prudent person standard A licensee owes a duty to the

general public not to serve alcohol to a patron when the licensee knows or should have known

the patron is intoxicated A specific intent to violate the statute is not required In this case

Mr Kian is held to an objective standard of what a reasonably prudent bartender would have

observed Upon a review of the evidence the ALJ finds Mr Sanchez was intoxicated and

further finds Mr Kian should have recognized the signs of intoxication exhibited by

Mr Sanchez

After observing Mr Sanchez that evening TABC agents and Mr Kian reached opposite

conclusions regarding his sobriety In support of Mr Kians contention that Mr Sanchez was

not intoxicated Respondent offered the surveillance video This footage is brief compared to the

hour of observation conducted by Agent Sauceda Accordingly the ALJ does not find the

surveillance footage to be dispositive of Mr Sanchezs condition on the night in question

Agent Sauceda observed that Mr Sanchez had the following signs of intoxication he

struggled to keep his eyes open tilted his head back closed his eyes for a few seconds and

swayed from side to side while standing Additionally Mr Sanchez missed his mouth when

attempting to drink from a bottle of beer on more than one occasion Agent Landin fmther

observed that Mr Sanchez had slurred speech and an odor of an alcoholic beverage In addition

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 10

Mr Sanchez was unable to recall the name of a friend who was present at the establishment with

him

While Agent Sauceda observed Mr Sanchez from the tables located near the bar

Mr Kian was in even closer proximity to Mr Sanchez and had a _greater opportunity to observe

his behavior By all accounts there were not many other patrons in the bar and Mr Kian should

have been able to focus his attention on Mr Sanchez Additionally as an experienced bartender

Mr Kian should have been able to identify signs of intoxication Mr Kian testified that he was

familiar with Mr Sanchez who was a regular customer and did not believe him to be

intoxicated Though Mr Kian was more familiar with Mr Sanchez than the T ABC agents the

ALT is mindful of Mr Kians potential bias as Respondents employee Accordingly the ALJ

found the testimony of Agents Sauceda and Landin to be more credible regarding

Mr Sanchezs level of intoxication

Staff recommended that Respondents permit be suspended for 18 days without the

option to pay a civil penalty In support of this request Staff notes that this is

Respondents second sale to an intoxicated person a public safety violation in less than

36 months Staff further argues that such a suspension is warranted because Respondent has no

procedure for tracking whether bartenders and servers are maintaining seller certification

Additionally Staff notes that Mr Kian did not have a current seller certification at the time this

incident occurred

Pursuant to Code sect 1 l64(a) a permittee shall be given an opportunity to pay a civil

penalty in lieu of suspension unless the basis for the suspension is a violation of one of several

listed violations including selling to an intoxicated person under Code sect l l61(b)(14) Because

this is Respondents second sale to an intoxicated person in 36 months and given

Respondents inability to track the seller certification for its employees and Mr Kians lack of

seller certification at the time of this incident the ALJ recommends an 18-day suspension

without the opportunity to pay a civil penalty

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE II

V FINDINGS OF FACT

I MIS Enterprises Inc dba Moulin Rouge (Respondent) holds a Mixed Beverage Permit and a Mixed Beverage Late Hours Permit for the premises located at 8930 Winkler Drive Houston Harris County Texas 77017 The permit was issued on May 8 2000 and has been continuously renewed

2 On August 6 2016 Agent Jeremiah Sauceda went to Respondents establishment in an undercover capacity

3 The establishment had only one bar and one bartender working There were about 20 patrons in the establishment six to seven of those patrons were at the bar

4 Agent Sauceda sat at a table about ten feet away from the bar area He had a clear unobstructed view of the bar

5 Agent Sauceda observed patron Javier Sanchez at the bar

6 Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open tilting his head back closing his eyes for a few seconds and swaying from side to side when standing On more than one occasion Mr Sanchez attempted to drink from a beer bottle and missed his mouth

7 Mr Sanchez was drinking a Michel ob Ultra beer

8 Mr Sanchez leaned into the bartender and ordered another beer

9 The bartender identified as Ali Kian served Mr Sanchez another beer

I0 Mr Kian is a bartender for Respondents establishment where he has worked for approximately 41 years

11 On August 6 2016 Agent Henry Landin participated 111 the investigation of the establishment as a member of the open team

12 Agent Landin observed Mr Sanchez exhibited signs of intoxication including slurred speech and an odor of an alcoholic beverage on his person In addition Mr Sanchez stated that he had a friend with him at the establishment but he could not recall the name of his friend

13 On March 7 2017 Staff of the TABC issued a notice of hearing informing all parties of the hearing in this matter Staffs notice contained the time place and nature of the hearing stated the legal authority and jurisdiction under which the hearing was to be held referenced the paiiicular sections of the statutes and rules involved and included a short plain statement of the matters asserted

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 12

14 The hearing convened on June 2 2017 before State Office of Administrative Hearings (SOAH) Administrative Law Judge Whitney L Stoebner Staff was represented by attorney Shelia A Lindsey-Sanders Respondent was represented by attorney Clyde Burleson The record closed on June 16 2017 in order for the parties to submit written closing arguments

VI CONCLUSIONS OF LAW

I TABC has jurisdiction over this matter pursuant to Texas Alcoholic Beverage Code (Code) chapter 5 and sect 1161

2 SOAH has jurisdiction over all matters related to conducting a hearing in this proceeding including the preparation of a proposal for decision with findings of fact and conclusions of law pursuant to Texas Government Code Chapter 2003

3 Notice of the hearing was provided as required by Texas Government Codesectsect 2001051-052

4 Respondent violated Texas Alcoholic Beverage Codesectsect l l6l(b)(2) and (14)

5 Based on the foregoing findings of fact and conclusions of law Respondents permit should be suspended for a period of 18 days without the opportunity to pay a civil penalty Codesect l l6l(b)(2) (14) and 1164 (a)

SIGNED August 4 2017

~~d 8amp4LltLlt WHITNEY k TO EBNER ADMINISTRATIVE LAW TUDGE STATE OFFICE OF ADMINISTRATIVE HEARINGS

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

DOCKET NO 64114

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER

CAME ON FOR CONSIDERATION this 22nd day of January 2018 the above-styled

and numbered cause

After proper notice was given this case was heard by the State Office of Administrative

Hearings (SOAH) with Administrative Law Judge Whitney Stoebner presiding The hearing

convened on June 2 2017 and the SOAH record closed June 16 2017 The Administrative Law

Judge made and filed a Proposal for Decision containing Findings of Fact and Conclusions of

Law on August 4 2017 The Proposal for Decision was properly served on all parties who were

given an opportunity to file exceptions and replies as part of the record herein No exceptions

were filed

After review and due consideration of the Proposal for Decision and I adopt the Findings

of Fact and Conclusions of Law of the Administrative Law Judge that are contained in the

Proposal for Decision and incorporate those Findings of Fact and Conclusions of Law into this

Order as if such were fully set out and separately stated herein

One point made by the ALJ in her analysis merits clarification She disagreed with both

partiesrsquo proffered definitions of the word ldquointoxicatedrdquo as applied to Sections 1161(b)(2) and (14) of the Texas Alcoholic Beverage Code The correct definition of ldquointoxicatedrdquo is that found in Section 4901 of the Penal Code as argued by the Commission in front of the ALJ Section

4901 provides for a legal definition of the term ldquointoxicatedrdquo while Section 4902 codifies the elements of the crime of public intoxication Because Respondent is not being charged with the

__________________________________________

crime of public intoxication that section is inapposite to this analysis Instead the general

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

definition of ldquointoxicatedrdquo as found in Section 4901 is the appropriate definition to apply for the Texas Alcoholic Beverage Code

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law

and any other requests for general or specific relief submitted by any party are denied unless

specifically adopted herein

IT IS THEREFORE ORDERED that the privileges granted by the Commission and the

activities authorized under the above permit by the Code will be SUSPENDED beginning at

1201 am on February 15th 2018 and shall remain suspended for EIGHTEEN (18) DAYS

This Order will become final and enforceable on the 15th day of February 2018

unless a Motion for Rehearing is filed by the 14th day of February 2018

SIGNED this the 22nd day of January 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 8: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE

told Mr Kian that Mr Sanchez had red eyes Mr Gan took a flashlight out into the parking lot

to show the agents that Mr Sanchezs eyes were not red

On cross-examination Mr Kian stated that he interacted with Mr Sanchez when he first

started his shift Mr Kian did not ask Mr Sanchez where he had been prior to aniving at the

establishment nor did he ask whether he had consumed alcohol prior to coming to the

establishment Mr Kian stated that he always evaluates his customers before serving them He

has been trained to identify intoxicated individuals by T ABC and by his manager On the night

in question he was not seller-server certified

b Mohammad Espari

Mohammad Espari has been the general manager of the establishment since 2004 As the

general manager his duties include hiring firing and training employees ordering supplies

and ensuring the club runs properly Mr Espari also holds monthly meetings with managers and

bartenders During these meetings he reminds employees not to sell to individuals who are

underage or intoxicated Additionally Mr Espari provides employees with a booklet when they

are hired At the end of the booklet employees sign a statement which provides in relevant part

I understand that our business is dedicated to safe and responsible sales and service of alcohol I will not knowingly serve alcohol to an underage or obviously intoxicated person

On August 6 2016 Mr Espari was not present at the establishment but he was aware

that T ABC agents came to the establishment on that date He acknowledged that the

establishment had a video surveillance system Mr Espari reviewed a segment of the

surveillance video footage during the hearing He stated that the angle of the camera was similar

to the angle from which the agents observed the bar during the investigation He further stated

there is nothing in the video footage to indicate Mr Sanchez was intoxicated

On cross-examination Mr Espari stated that the establishment requires the servers to be

T ABC certified but conceded there is no written policy regarding this requirement He stated

PAGESSOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION

that he understands that Mr Kians certification had expired at the time of this investigation

When he hires employees he asks for a copy of their certification According to Mr Espari the

employees are responsible for renewing their certification upon expiration The establishment

did not track employee certifications

c Video

Respondent offered a copy of the establishments surveillance video from the night of the

incidentdeg The video is approximately 1 I minutes long and depicts three T ABC agents entering

the establishment Two of the agents made contact with Mr Sanchez Mr Sanchez leaned over

to a patron seated to his left and spoke to him Mr Sanchez then walked away from the bar area

with the agents When exiting the establishment Mr Sanchez did not trip or stumble

IV RECOMMENDATION

The evidence establishes that Respondents agent servant or employee violated a section

of the Code by selling serving or delivering an alcoholic beverage to an intoxicated person It is

uncontested that Mr Kian was Respondents agent servant or employee It is further

uncontested that Mr Kian sold served or delivered an alcoholic beverage specifically beer to

Mr Sanchez The parties disagree however regarding the definition of intoxication and

whether Mr Sanchez was intoxicated

Staff argues that intoxication should be defined using the definition found in

Penal Code sect 490 I which is the definition of intoxication used for the offense of Driving While

Intoxicated Respondent argues that intoxication should be defined under Penal Code sect 4902

deg Respondents Ex 2

11 Under Penal Codesect 4901 intoxicated is defined as

(A) not having the normal use of mental or physical faculties by reason of the introduction of alcohol controlled substance a drug a dangerous drug a combination of two or more of those substances or any other substances into the body or

(B) having an alcohol concentration of 008 or more

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE9

which provides the definition for the offense of Public Intoxication 12

12 Under Penal Codesect 4902 it is a crime ifa person appears in a public place while intoxicated to the degree that the person may endanger the person or another In support of this definition Respondent cites 16 Texas Administrative Code (TAC) sect 45103(b) which provides that Penal Code sect 4902 applies to the charge of excessive consumption The charge in this case however is sale to an intoxicated person

After reviewing the briefs

and arguments of both parties the ALJ finds that while the Code may have previously applied

the definition of intoxication found in Penal Code sect 4901 for purposes of sale of alcohol to an

intoxicated person it is no longer clear that this definition applies The Code cu1Tently

references both Penal Code definitions in Appendix F However neither definition is clearly

linked to the sale of alcohol to an intoxicated person

As neither definition of intoxication proposed by the parties clearly applies the ALJ finds

the appropriate analysis is a reasonably prudent person standard A licensee owes a duty to the

general public not to serve alcohol to a patron when the licensee knows or should have known

the patron is intoxicated A specific intent to violate the statute is not required In this case

Mr Kian is held to an objective standard of what a reasonably prudent bartender would have

observed Upon a review of the evidence the ALJ finds Mr Sanchez was intoxicated and

further finds Mr Kian should have recognized the signs of intoxication exhibited by

Mr Sanchez

After observing Mr Sanchez that evening TABC agents and Mr Kian reached opposite

conclusions regarding his sobriety In support of Mr Kians contention that Mr Sanchez was

not intoxicated Respondent offered the surveillance video This footage is brief compared to the

hour of observation conducted by Agent Sauceda Accordingly the ALJ does not find the

surveillance footage to be dispositive of Mr Sanchezs condition on the night in question

Agent Sauceda observed that Mr Sanchez had the following signs of intoxication he

struggled to keep his eyes open tilted his head back closed his eyes for a few seconds and

swayed from side to side while standing Additionally Mr Sanchez missed his mouth when

attempting to drink from a bottle of beer on more than one occasion Agent Landin fmther

observed that Mr Sanchez had slurred speech and an odor of an alcoholic beverage In addition

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 10

Mr Sanchez was unable to recall the name of a friend who was present at the establishment with

him

While Agent Sauceda observed Mr Sanchez from the tables located near the bar

Mr Kian was in even closer proximity to Mr Sanchez and had a _greater opportunity to observe

his behavior By all accounts there were not many other patrons in the bar and Mr Kian should

have been able to focus his attention on Mr Sanchez Additionally as an experienced bartender

Mr Kian should have been able to identify signs of intoxication Mr Kian testified that he was

familiar with Mr Sanchez who was a regular customer and did not believe him to be

intoxicated Though Mr Kian was more familiar with Mr Sanchez than the T ABC agents the

ALT is mindful of Mr Kians potential bias as Respondents employee Accordingly the ALJ

found the testimony of Agents Sauceda and Landin to be more credible regarding

Mr Sanchezs level of intoxication

Staff recommended that Respondents permit be suspended for 18 days without the

option to pay a civil penalty In support of this request Staff notes that this is

Respondents second sale to an intoxicated person a public safety violation in less than

36 months Staff further argues that such a suspension is warranted because Respondent has no

procedure for tracking whether bartenders and servers are maintaining seller certification

Additionally Staff notes that Mr Kian did not have a current seller certification at the time this

incident occurred

Pursuant to Code sect 1 l64(a) a permittee shall be given an opportunity to pay a civil

penalty in lieu of suspension unless the basis for the suspension is a violation of one of several

listed violations including selling to an intoxicated person under Code sect l l61(b)(14) Because

this is Respondents second sale to an intoxicated person in 36 months and given

Respondents inability to track the seller certification for its employees and Mr Kians lack of

seller certification at the time of this incident the ALJ recommends an 18-day suspension

without the opportunity to pay a civil penalty

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE II

V FINDINGS OF FACT

I MIS Enterprises Inc dba Moulin Rouge (Respondent) holds a Mixed Beverage Permit and a Mixed Beverage Late Hours Permit for the premises located at 8930 Winkler Drive Houston Harris County Texas 77017 The permit was issued on May 8 2000 and has been continuously renewed

2 On August 6 2016 Agent Jeremiah Sauceda went to Respondents establishment in an undercover capacity

3 The establishment had only one bar and one bartender working There were about 20 patrons in the establishment six to seven of those patrons were at the bar

4 Agent Sauceda sat at a table about ten feet away from the bar area He had a clear unobstructed view of the bar

5 Agent Sauceda observed patron Javier Sanchez at the bar

6 Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open tilting his head back closing his eyes for a few seconds and swaying from side to side when standing On more than one occasion Mr Sanchez attempted to drink from a beer bottle and missed his mouth

7 Mr Sanchez was drinking a Michel ob Ultra beer

8 Mr Sanchez leaned into the bartender and ordered another beer

9 The bartender identified as Ali Kian served Mr Sanchez another beer

I0 Mr Kian is a bartender for Respondents establishment where he has worked for approximately 41 years

11 On August 6 2016 Agent Henry Landin participated 111 the investigation of the establishment as a member of the open team

12 Agent Landin observed Mr Sanchez exhibited signs of intoxication including slurred speech and an odor of an alcoholic beverage on his person In addition Mr Sanchez stated that he had a friend with him at the establishment but he could not recall the name of his friend

13 On March 7 2017 Staff of the TABC issued a notice of hearing informing all parties of the hearing in this matter Staffs notice contained the time place and nature of the hearing stated the legal authority and jurisdiction under which the hearing was to be held referenced the paiiicular sections of the statutes and rules involved and included a short plain statement of the matters asserted

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 12

14 The hearing convened on June 2 2017 before State Office of Administrative Hearings (SOAH) Administrative Law Judge Whitney L Stoebner Staff was represented by attorney Shelia A Lindsey-Sanders Respondent was represented by attorney Clyde Burleson The record closed on June 16 2017 in order for the parties to submit written closing arguments

VI CONCLUSIONS OF LAW

I TABC has jurisdiction over this matter pursuant to Texas Alcoholic Beverage Code (Code) chapter 5 and sect 1161

2 SOAH has jurisdiction over all matters related to conducting a hearing in this proceeding including the preparation of a proposal for decision with findings of fact and conclusions of law pursuant to Texas Government Code Chapter 2003

3 Notice of the hearing was provided as required by Texas Government Codesectsect 2001051-052

4 Respondent violated Texas Alcoholic Beverage Codesectsect l l6l(b)(2) and (14)

5 Based on the foregoing findings of fact and conclusions of law Respondents permit should be suspended for a period of 18 days without the opportunity to pay a civil penalty Codesect l l6l(b)(2) (14) and 1164 (a)

SIGNED August 4 2017

~~d 8amp4LltLlt WHITNEY k TO EBNER ADMINISTRATIVE LAW TUDGE STATE OFFICE OF ADMINISTRATIVE HEARINGS

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

DOCKET NO 64114

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER

CAME ON FOR CONSIDERATION this 22nd day of January 2018 the above-styled

and numbered cause

After proper notice was given this case was heard by the State Office of Administrative

Hearings (SOAH) with Administrative Law Judge Whitney Stoebner presiding The hearing

convened on June 2 2017 and the SOAH record closed June 16 2017 The Administrative Law

Judge made and filed a Proposal for Decision containing Findings of Fact and Conclusions of

Law on August 4 2017 The Proposal for Decision was properly served on all parties who were

given an opportunity to file exceptions and replies as part of the record herein No exceptions

were filed

After review and due consideration of the Proposal for Decision and I adopt the Findings

of Fact and Conclusions of Law of the Administrative Law Judge that are contained in the

Proposal for Decision and incorporate those Findings of Fact and Conclusions of Law into this

Order as if such were fully set out and separately stated herein

One point made by the ALJ in her analysis merits clarification She disagreed with both

partiesrsquo proffered definitions of the word ldquointoxicatedrdquo as applied to Sections 1161(b)(2) and (14) of the Texas Alcoholic Beverage Code The correct definition of ldquointoxicatedrdquo is that found in Section 4901 of the Penal Code as argued by the Commission in front of the ALJ Section

4901 provides for a legal definition of the term ldquointoxicatedrdquo while Section 4902 codifies the elements of the crime of public intoxication Because Respondent is not being charged with the

__________________________________________

crime of public intoxication that section is inapposite to this analysis Instead the general

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

definition of ldquointoxicatedrdquo as found in Section 4901 is the appropriate definition to apply for the Texas Alcoholic Beverage Code

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law

and any other requests for general or specific relief submitted by any party are denied unless

specifically adopted herein

IT IS THEREFORE ORDERED that the privileges granted by the Commission and the

activities authorized under the above permit by the Code will be SUSPENDED beginning at

1201 am on February 15th 2018 and shall remain suspended for EIGHTEEN (18) DAYS

This Order will become final and enforceable on the 15th day of February 2018

unless a Motion for Rehearing is filed by the 14th day of February 2018

SIGNED this the 22nd day of January 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 9: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

PAGESSOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION

that he understands that Mr Kians certification had expired at the time of this investigation

When he hires employees he asks for a copy of their certification According to Mr Espari the

employees are responsible for renewing their certification upon expiration The establishment

did not track employee certifications

c Video

Respondent offered a copy of the establishments surveillance video from the night of the

incidentdeg The video is approximately 1 I minutes long and depicts three T ABC agents entering

the establishment Two of the agents made contact with Mr Sanchez Mr Sanchez leaned over

to a patron seated to his left and spoke to him Mr Sanchez then walked away from the bar area

with the agents When exiting the establishment Mr Sanchez did not trip or stumble

IV RECOMMENDATION

The evidence establishes that Respondents agent servant or employee violated a section

of the Code by selling serving or delivering an alcoholic beverage to an intoxicated person It is

uncontested that Mr Kian was Respondents agent servant or employee It is further

uncontested that Mr Kian sold served or delivered an alcoholic beverage specifically beer to

Mr Sanchez The parties disagree however regarding the definition of intoxication and

whether Mr Sanchez was intoxicated

Staff argues that intoxication should be defined using the definition found in

Penal Code sect 490 I which is the definition of intoxication used for the offense of Driving While

Intoxicated Respondent argues that intoxication should be defined under Penal Code sect 4902

deg Respondents Ex 2

11 Under Penal Codesect 4901 intoxicated is defined as

(A) not having the normal use of mental or physical faculties by reason of the introduction of alcohol controlled substance a drug a dangerous drug a combination of two or more of those substances or any other substances into the body or

(B) having an alcohol concentration of 008 or more

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE9

which provides the definition for the offense of Public Intoxication 12

12 Under Penal Codesect 4902 it is a crime ifa person appears in a public place while intoxicated to the degree that the person may endanger the person or another In support of this definition Respondent cites 16 Texas Administrative Code (TAC) sect 45103(b) which provides that Penal Code sect 4902 applies to the charge of excessive consumption The charge in this case however is sale to an intoxicated person

After reviewing the briefs

and arguments of both parties the ALJ finds that while the Code may have previously applied

the definition of intoxication found in Penal Code sect 4901 for purposes of sale of alcohol to an

intoxicated person it is no longer clear that this definition applies The Code cu1Tently

references both Penal Code definitions in Appendix F However neither definition is clearly

linked to the sale of alcohol to an intoxicated person

As neither definition of intoxication proposed by the parties clearly applies the ALJ finds

the appropriate analysis is a reasonably prudent person standard A licensee owes a duty to the

general public not to serve alcohol to a patron when the licensee knows or should have known

the patron is intoxicated A specific intent to violate the statute is not required In this case

Mr Kian is held to an objective standard of what a reasonably prudent bartender would have

observed Upon a review of the evidence the ALJ finds Mr Sanchez was intoxicated and

further finds Mr Kian should have recognized the signs of intoxication exhibited by

Mr Sanchez

After observing Mr Sanchez that evening TABC agents and Mr Kian reached opposite

conclusions regarding his sobriety In support of Mr Kians contention that Mr Sanchez was

not intoxicated Respondent offered the surveillance video This footage is brief compared to the

hour of observation conducted by Agent Sauceda Accordingly the ALJ does not find the

surveillance footage to be dispositive of Mr Sanchezs condition on the night in question

Agent Sauceda observed that Mr Sanchez had the following signs of intoxication he

struggled to keep his eyes open tilted his head back closed his eyes for a few seconds and

swayed from side to side while standing Additionally Mr Sanchez missed his mouth when

attempting to drink from a bottle of beer on more than one occasion Agent Landin fmther

observed that Mr Sanchez had slurred speech and an odor of an alcoholic beverage In addition

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 10

Mr Sanchez was unable to recall the name of a friend who was present at the establishment with

him

While Agent Sauceda observed Mr Sanchez from the tables located near the bar

Mr Kian was in even closer proximity to Mr Sanchez and had a _greater opportunity to observe

his behavior By all accounts there were not many other patrons in the bar and Mr Kian should

have been able to focus his attention on Mr Sanchez Additionally as an experienced bartender

Mr Kian should have been able to identify signs of intoxication Mr Kian testified that he was

familiar with Mr Sanchez who was a regular customer and did not believe him to be

intoxicated Though Mr Kian was more familiar with Mr Sanchez than the T ABC agents the

ALT is mindful of Mr Kians potential bias as Respondents employee Accordingly the ALJ

found the testimony of Agents Sauceda and Landin to be more credible regarding

Mr Sanchezs level of intoxication

Staff recommended that Respondents permit be suspended for 18 days without the

option to pay a civil penalty In support of this request Staff notes that this is

Respondents second sale to an intoxicated person a public safety violation in less than

36 months Staff further argues that such a suspension is warranted because Respondent has no

procedure for tracking whether bartenders and servers are maintaining seller certification

Additionally Staff notes that Mr Kian did not have a current seller certification at the time this

incident occurred

Pursuant to Code sect 1 l64(a) a permittee shall be given an opportunity to pay a civil

penalty in lieu of suspension unless the basis for the suspension is a violation of one of several

listed violations including selling to an intoxicated person under Code sect l l61(b)(14) Because

this is Respondents second sale to an intoxicated person in 36 months and given

Respondents inability to track the seller certification for its employees and Mr Kians lack of

seller certification at the time of this incident the ALJ recommends an 18-day suspension

without the opportunity to pay a civil penalty

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE II

V FINDINGS OF FACT

I MIS Enterprises Inc dba Moulin Rouge (Respondent) holds a Mixed Beverage Permit and a Mixed Beverage Late Hours Permit for the premises located at 8930 Winkler Drive Houston Harris County Texas 77017 The permit was issued on May 8 2000 and has been continuously renewed

2 On August 6 2016 Agent Jeremiah Sauceda went to Respondents establishment in an undercover capacity

3 The establishment had only one bar and one bartender working There were about 20 patrons in the establishment six to seven of those patrons were at the bar

4 Agent Sauceda sat at a table about ten feet away from the bar area He had a clear unobstructed view of the bar

5 Agent Sauceda observed patron Javier Sanchez at the bar

6 Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open tilting his head back closing his eyes for a few seconds and swaying from side to side when standing On more than one occasion Mr Sanchez attempted to drink from a beer bottle and missed his mouth

7 Mr Sanchez was drinking a Michel ob Ultra beer

8 Mr Sanchez leaned into the bartender and ordered another beer

9 The bartender identified as Ali Kian served Mr Sanchez another beer

I0 Mr Kian is a bartender for Respondents establishment where he has worked for approximately 41 years

11 On August 6 2016 Agent Henry Landin participated 111 the investigation of the establishment as a member of the open team

12 Agent Landin observed Mr Sanchez exhibited signs of intoxication including slurred speech and an odor of an alcoholic beverage on his person In addition Mr Sanchez stated that he had a friend with him at the establishment but he could not recall the name of his friend

13 On March 7 2017 Staff of the TABC issued a notice of hearing informing all parties of the hearing in this matter Staffs notice contained the time place and nature of the hearing stated the legal authority and jurisdiction under which the hearing was to be held referenced the paiiicular sections of the statutes and rules involved and included a short plain statement of the matters asserted

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 12

14 The hearing convened on June 2 2017 before State Office of Administrative Hearings (SOAH) Administrative Law Judge Whitney L Stoebner Staff was represented by attorney Shelia A Lindsey-Sanders Respondent was represented by attorney Clyde Burleson The record closed on June 16 2017 in order for the parties to submit written closing arguments

VI CONCLUSIONS OF LAW

I TABC has jurisdiction over this matter pursuant to Texas Alcoholic Beverage Code (Code) chapter 5 and sect 1161

2 SOAH has jurisdiction over all matters related to conducting a hearing in this proceeding including the preparation of a proposal for decision with findings of fact and conclusions of law pursuant to Texas Government Code Chapter 2003

3 Notice of the hearing was provided as required by Texas Government Codesectsect 2001051-052

4 Respondent violated Texas Alcoholic Beverage Codesectsect l l6l(b)(2) and (14)

5 Based on the foregoing findings of fact and conclusions of law Respondents permit should be suspended for a period of 18 days without the opportunity to pay a civil penalty Codesect l l6l(b)(2) (14) and 1164 (a)

SIGNED August 4 2017

~~d 8amp4LltLlt WHITNEY k TO EBNER ADMINISTRATIVE LAW TUDGE STATE OFFICE OF ADMINISTRATIVE HEARINGS

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

DOCKET NO 64114

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER

CAME ON FOR CONSIDERATION this 22nd day of January 2018 the above-styled

and numbered cause

After proper notice was given this case was heard by the State Office of Administrative

Hearings (SOAH) with Administrative Law Judge Whitney Stoebner presiding The hearing

convened on June 2 2017 and the SOAH record closed June 16 2017 The Administrative Law

Judge made and filed a Proposal for Decision containing Findings of Fact and Conclusions of

Law on August 4 2017 The Proposal for Decision was properly served on all parties who were

given an opportunity to file exceptions and replies as part of the record herein No exceptions

were filed

After review and due consideration of the Proposal for Decision and I adopt the Findings

of Fact and Conclusions of Law of the Administrative Law Judge that are contained in the

Proposal for Decision and incorporate those Findings of Fact and Conclusions of Law into this

Order as if such were fully set out and separately stated herein

One point made by the ALJ in her analysis merits clarification She disagreed with both

partiesrsquo proffered definitions of the word ldquointoxicatedrdquo as applied to Sections 1161(b)(2) and (14) of the Texas Alcoholic Beverage Code The correct definition of ldquointoxicatedrdquo is that found in Section 4901 of the Penal Code as argued by the Commission in front of the ALJ Section

4901 provides for a legal definition of the term ldquointoxicatedrdquo while Section 4902 codifies the elements of the crime of public intoxication Because Respondent is not being charged with the

__________________________________________

crime of public intoxication that section is inapposite to this analysis Instead the general

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

definition of ldquointoxicatedrdquo as found in Section 4901 is the appropriate definition to apply for the Texas Alcoholic Beverage Code

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law

and any other requests for general or specific relief submitted by any party are denied unless

specifically adopted herein

IT IS THEREFORE ORDERED that the privileges granted by the Commission and the

activities authorized under the above permit by the Code will be SUSPENDED beginning at

1201 am on February 15th 2018 and shall remain suspended for EIGHTEEN (18) DAYS

This Order will become final and enforceable on the 15th day of February 2018

unless a Motion for Rehearing is filed by the 14th day of February 2018

SIGNED this the 22nd day of January 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 10: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE9

which provides the definition for the offense of Public Intoxication 12

12 Under Penal Codesect 4902 it is a crime ifa person appears in a public place while intoxicated to the degree that the person may endanger the person or another In support of this definition Respondent cites 16 Texas Administrative Code (TAC) sect 45103(b) which provides that Penal Code sect 4902 applies to the charge of excessive consumption The charge in this case however is sale to an intoxicated person

After reviewing the briefs

and arguments of both parties the ALJ finds that while the Code may have previously applied

the definition of intoxication found in Penal Code sect 4901 for purposes of sale of alcohol to an

intoxicated person it is no longer clear that this definition applies The Code cu1Tently

references both Penal Code definitions in Appendix F However neither definition is clearly

linked to the sale of alcohol to an intoxicated person

As neither definition of intoxication proposed by the parties clearly applies the ALJ finds

the appropriate analysis is a reasonably prudent person standard A licensee owes a duty to the

general public not to serve alcohol to a patron when the licensee knows or should have known

the patron is intoxicated A specific intent to violate the statute is not required In this case

Mr Kian is held to an objective standard of what a reasonably prudent bartender would have

observed Upon a review of the evidence the ALJ finds Mr Sanchez was intoxicated and

further finds Mr Kian should have recognized the signs of intoxication exhibited by

Mr Sanchez

After observing Mr Sanchez that evening TABC agents and Mr Kian reached opposite

conclusions regarding his sobriety In support of Mr Kians contention that Mr Sanchez was

not intoxicated Respondent offered the surveillance video This footage is brief compared to the

hour of observation conducted by Agent Sauceda Accordingly the ALJ does not find the

surveillance footage to be dispositive of Mr Sanchezs condition on the night in question

Agent Sauceda observed that Mr Sanchez had the following signs of intoxication he

struggled to keep his eyes open tilted his head back closed his eyes for a few seconds and

swayed from side to side while standing Additionally Mr Sanchez missed his mouth when

attempting to drink from a bottle of beer on more than one occasion Agent Landin fmther

observed that Mr Sanchez had slurred speech and an odor of an alcoholic beverage In addition

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 10

Mr Sanchez was unable to recall the name of a friend who was present at the establishment with

him

While Agent Sauceda observed Mr Sanchez from the tables located near the bar

Mr Kian was in even closer proximity to Mr Sanchez and had a _greater opportunity to observe

his behavior By all accounts there were not many other patrons in the bar and Mr Kian should

have been able to focus his attention on Mr Sanchez Additionally as an experienced bartender

Mr Kian should have been able to identify signs of intoxication Mr Kian testified that he was

familiar with Mr Sanchez who was a regular customer and did not believe him to be

intoxicated Though Mr Kian was more familiar with Mr Sanchez than the T ABC agents the

ALT is mindful of Mr Kians potential bias as Respondents employee Accordingly the ALJ

found the testimony of Agents Sauceda and Landin to be more credible regarding

Mr Sanchezs level of intoxication

Staff recommended that Respondents permit be suspended for 18 days without the

option to pay a civil penalty In support of this request Staff notes that this is

Respondents second sale to an intoxicated person a public safety violation in less than

36 months Staff further argues that such a suspension is warranted because Respondent has no

procedure for tracking whether bartenders and servers are maintaining seller certification

Additionally Staff notes that Mr Kian did not have a current seller certification at the time this

incident occurred

Pursuant to Code sect 1 l64(a) a permittee shall be given an opportunity to pay a civil

penalty in lieu of suspension unless the basis for the suspension is a violation of one of several

listed violations including selling to an intoxicated person under Code sect l l61(b)(14) Because

this is Respondents second sale to an intoxicated person in 36 months and given

Respondents inability to track the seller certification for its employees and Mr Kians lack of

seller certification at the time of this incident the ALJ recommends an 18-day suspension

without the opportunity to pay a civil penalty

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE II

V FINDINGS OF FACT

I MIS Enterprises Inc dba Moulin Rouge (Respondent) holds a Mixed Beverage Permit and a Mixed Beverage Late Hours Permit for the premises located at 8930 Winkler Drive Houston Harris County Texas 77017 The permit was issued on May 8 2000 and has been continuously renewed

2 On August 6 2016 Agent Jeremiah Sauceda went to Respondents establishment in an undercover capacity

3 The establishment had only one bar and one bartender working There were about 20 patrons in the establishment six to seven of those patrons were at the bar

4 Agent Sauceda sat at a table about ten feet away from the bar area He had a clear unobstructed view of the bar

5 Agent Sauceda observed patron Javier Sanchez at the bar

6 Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open tilting his head back closing his eyes for a few seconds and swaying from side to side when standing On more than one occasion Mr Sanchez attempted to drink from a beer bottle and missed his mouth

7 Mr Sanchez was drinking a Michel ob Ultra beer

8 Mr Sanchez leaned into the bartender and ordered another beer

9 The bartender identified as Ali Kian served Mr Sanchez another beer

I0 Mr Kian is a bartender for Respondents establishment where he has worked for approximately 41 years

11 On August 6 2016 Agent Henry Landin participated 111 the investigation of the establishment as a member of the open team

12 Agent Landin observed Mr Sanchez exhibited signs of intoxication including slurred speech and an odor of an alcoholic beverage on his person In addition Mr Sanchez stated that he had a friend with him at the establishment but he could not recall the name of his friend

13 On March 7 2017 Staff of the TABC issued a notice of hearing informing all parties of the hearing in this matter Staffs notice contained the time place and nature of the hearing stated the legal authority and jurisdiction under which the hearing was to be held referenced the paiiicular sections of the statutes and rules involved and included a short plain statement of the matters asserted

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 12

14 The hearing convened on June 2 2017 before State Office of Administrative Hearings (SOAH) Administrative Law Judge Whitney L Stoebner Staff was represented by attorney Shelia A Lindsey-Sanders Respondent was represented by attorney Clyde Burleson The record closed on June 16 2017 in order for the parties to submit written closing arguments

VI CONCLUSIONS OF LAW

I TABC has jurisdiction over this matter pursuant to Texas Alcoholic Beverage Code (Code) chapter 5 and sect 1161

2 SOAH has jurisdiction over all matters related to conducting a hearing in this proceeding including the preparation of a proposal for decision with findings of fact and conclusions of law pursuant to Texas Government Code Chapter 2003

3 Notice of the hearing was provided as required by Texas Government Codesectsect 2001051-052

4 Respondent violated Texas Alcoholic Beverage Codesectsect l l6l(b)(2) and (14)

5 Based on the foregoing findings of fact and conclusions of law Respondents permit should be suspended for a period of 18 days without the opportunity to pay a civil penalty Codesect l l6l(b)(2) (14) and 1164 (a)

SIGNED August 4 2017

~~d 8amp4LltLlt WHITNEY k TO EBNER ADMINISTRATIVE LAW TUDGE STATE OFFICE OF ADMINISTRATIVE HEARINGS

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

DOCKET NO 64114

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER

CAME ON FOR CONSIDERATION this 22nd day of January 2018 the above-styled

and numbered cause

After proper notice was given this case was heard by the State Office of Administrative

Hearings (SOAH) with Administrative Law Judge Whitney Stoebner presiding The hearing

convened on June 2 2017 and the SOAH record closed June 16 2017 The Administrative Law

Judge made and filed a Proposal for Decision containing Findings of Fact and Conclusions of

Law on August 4 2017 The Proposal for Decision was properly served on all parties who were

given an opportunity to file exceptions and replies as part of the record herein No exceptions

were filed

After review and due consideration of the Proposal for Decision and I adopt the Findings

of Fact and Conclusions of Law of the Administrative Law Judge that are contained in the

Proposal for Decision and incorporate those Findings of Fact and Conclusions of Law into this

Order as if such were fully set out and separately stated herein

One point made by the ALJ in her analysis merits clarification She disagreed with both

partiesrsquo proffered definitions of the word ldquointoxicatedrdquo as applied to Sections 1161(b)(2) and (14) of the Texas Alcoholic Beverage Code The correct definition of ldquointoxicatedrdquo is that found in Section 4901 of the Penal Code as argued by the Commission in front of the ALJ Section

4901 provides for a legal definition of the term ldquointoxicatedrdquo while Section 4902 codifies the elements of the crime of public intoxication Because Respondent is not being charged with the

__________________________________________

crime of public intoxication that section is inapposite to this analysis Instead the general

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

definition of ldquointoxicatedrdquo as found in Section 4901 is the appropriate definition to apply for the Texas Alcoholic Beverage Code

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law

and any other requests for general or specific relief submitted by any party are denied unless

specifically adopted herein

IT IS THEREFORE ORDERED that the privileges granted by the Commission and the

activities authorized under the above permit by the Code will be SUSPENDED beginning at

1201 am on February 15th 2018 and shall remain suspended for EIGHTEEN (18) DAYS

This Order will become final and enforceable on the 15th day of February 2018

unless a Motion for Rehearing is filed by the 14th day of February 2018

SIGNED this the 22nd day of January 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 11: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 10

Mr Sanchez was unable to recall the name of a friend who was present at the establishment with

him

While Agent Sauceda observed Mr Sanchez from the tables located near the bar

Mr Kian was in even closer proximity to Mr Sanchez and had a _greater opportunity to observe

his behavior By all accounts there were not many other patrons in the bar and Mr Kian should

have been able to focus his attention on Mr Sanchez Additionally as an experienced bartender

Mr Kian should have been able to identify signs of intoxication Mr Kian testified that he was

familiar with Mr Sanchez who was a regular customer and did not believe him to be

intoxicated Though Mr Kian was more familiar with Mr Sanchez than the T ABC agents the

ALT is mindful of Mr Kians potential bias as Respondents employee Accordingly the ALJ

found the testimony of Agents Sauceda and Landin to be more credible regarding

Mr Sanchezs level of intoxication

Staff recommended that Respondents permit be suspended for 18 days without the

option to pay a civil penalty In support of this request Staff notes that this is

Respondents second sale to an intoxicated person a public safety violation in less than

36 months Staff further argues that such a suspension is warranted because Respondent has no

procedure for tracking whether bartenders and servers are maintaining seller certification

Additionally Staff notes that Mr Kian did not have a current seller certification at the time this

incident occurred

Pursuant to Code sect 1 l64(a) a permittee shall be given an opportunity to pay a civil

penalty in lieu of suspension unless the basis for the suspension is a violation of one of several

listed violations including selling to an intoxicated person under Code sect l l61(b)(14) Because

this is Respondents second sale to an intoxicated person in 36 months and given

Respondents inability to track the seller certification for its employees and Mr Kians lack of

seller certification at the time of this incident the ALJ recommends an 18-day suspension

without the opportunity to pay a civil penalty

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE II

V FINDINGS OF FACT

I MIS Enterprises Inc dba Moulin Rouge (Respondent) holds a Mixed Beverage Permit and a Mixed Beverage Late Hours Permit for the premises located at 8930 Winkler Drive Houston Harris County Texas 77017 The permit was issued on May 8 2000 and has been continuously renewed

2 On August 6 2016 Agent Jeremiah Sauceda went to Respondents establishment in an undercover capacity

3 The establishment had only one bar and one bartender working There were about 20 patrons in the establishment six to seven of those patrons were at the bar

4 Agent Sauceda sat at a table about ten feet away from the bar area He had a clear unobstructed view of the bar

5 Agent Sauceda observed patron Javier Sanchez at the bar

6 Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open tilting his head back closing his eyes for a few seconds and swaying from side to side when standing On more than one occasion Mr Sanchez attempted to drink from a beer bottle and missed his mouth

7 Mr Sanchez was drinking a Michel ob Ultra beer

8 Mr Sanchez leaned into the bartender and ordered another beer

9 The bartender identified as Ali Kian served Mr Sanchez another beer

I0 Mr Kian is a bartender for Respondents establishment where he has worked for approximately 41 years

11 On August 6 2016 Agent Henry Landin participated 111 the investigation of the establishment as a member of the open team

12 Agent Landin observed Mr Sanchez exhibited signs of intoxication including slurred speech and an odor of an alcoholic beverage on his person In addition Mr Sanchez stated that he had a friend with him at the establishment but he could not recall the name of his friend

13 On March 7 2017 Staff of the TABC issued a notice of hearing informing all parties of the hearing in this matter Staffs notice contained the time place and nature of the hearing stated the legal authority and jurisdiction under which the hearing was to be held referenced the paiiicular sections of the statutes and rules involved and included a short plain statement of the matters asserted

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 12

14 The hearing convened on June 2 2017 before State Office of Administrative Hearings (SOAH) Administrative Law Judge Whitney L Stoebner Staff was represented by attorney Shelia A Lindsey-Sanders Respondent was represented by attorney Clyde Burleson The record closed on June 16 2017 in order for the parties to submit written closing arguments

VI CONCLUSIONS OF LAW

I TABC has jurisdiction over this matter pursuant to Texas Alcoholic Beverage Code (Code) chapter 5 and sect 1161

2 SOAH has jurisdiction over all matters related to conducting a hearing in this proceeding including the preparation of a proposal for decision with findings of fact and conclusions of law pursuant to Texas Government Code Chapter 2003

3 Notice of the hearing was provided as required by Texas Government Codesectsect 2001051-052

4 Respondent violated Texas Alcoholic Beverage Codesectsect l l6l(b)(2) and (14)

5 Based on the foregoing findings of fact and conclusions of law Respondents permit should be suspended for a period of 18 days without the opportunity to pay a civil penalty Codesect l l6l(b)(2) (14) and 1164 (a)

SIGNED August 4 2017

~~d 8amp4LltLlt WHITNEY k TO EBNER ADMINISTRATIVE LAW TUDGE STATE OFFICE OF ADMINISTRATIVE HEARINGS

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

DOCKET NO 64114

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER

CAME ON FOR CONSIDERATION this 22nd day of January 2018 the above-styled

and numbered cause

After proper notice was given this case was heard by the State Office of Administrative

Hearings (SOAH) with Administrative Law Judge Whitney Stoebner presiding The hearing

convened on June 2 2017 and the SOAH record closed June 16 2017 The Administrative Law

Judge made and filed a Proposal for Decision containing Findings of Fact and Conclusions of

Law on August 4 2017 The Proposal for Decision was properly served on all parties who were

given an opportunity to file exceptions and replies as part of the record herein No exceptions

were filed

After review and due consideration of the Proposal for Decision and I adopt the Findings

of Fact and Conclusions of Law of the Administrative Law Judge that are contained in the

Proposal for Decision and incorporate those Findings of Fact and Conclusions of Law into this

Order as if such were fully set out and separately stated herein

One point made by the ALJ in her analysis merits clarification She disagreed with both

partiesrsquo proffered definitions of the word ldquointoxicatedrdquo as applied to Sections 1161(b)(2) and (14) of the Texas Alcoholic Beverage Code The correct definition of ldquointoxicatedrdquo is that found in Section 4901 of the Penal Code as argued by the Commission in front of the ALJ Section

4901 provides for a legal definition of the term ldquointoxicatedrdquo while Section 4902 codifies the elements of the crime of public intoxication Because Respondent is not being charged with the

__________________________________________

crime of public intoxication that section is inapposite to this analysis Instead the general

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

definition of ldquointoxicatedrdquo as found in Section 4901 is the appropriate definition to apply for the Texas Alcoholic Beverage Code

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law

and any other requests for general or specific relief submitted by any party are denied unless

specifically adopted herein

IT IS THEREFORE ORDERED that the privileges granted by the Commission and the

activities authorized under the above permit by the Code will be SUSPENDED beginning at

1201 am on February 15th 2018 and shall remain suspended for EIGHTEEN (18) DAYS

This Order will become final and enforceable on the 15th day of February 2018

unless a Motion for Rehearing is filed by the 14th day of February 2018

SIGNED this the 22nd day of January 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 12: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE II

V FINDINGS OF FACT

I MIS Enterprises Inc dba Moulin Rouge (Respondent) holds a Mixed Beverage Permit and a Mixed Beverage Late Hours Permit for the premises located at 8930 Winkler Drive Houston Harris County Texas 77017 The permit was issued on May 8 2000 and has been continuously renewed

2 On August 6 2016 Agent Jeremiah Sauceda went to Respondents establishment in an undercover capacity

3 The establishment had only one bar and one bartender working There were about 20 patrons in the establishment six to seven of those patrons were at the bar

4 Agent Sauceda sat at a table about ten feet away from the bar area He had a clear unobstructed view of the bar

5 Agent Sauceda observed patron Javier Sanchez at the bar

6 Mr Sanchez displayed signs of intoxication including struggling to keep his eyes open tilting his head back closing his eyes for a few seconds and swaying from side to side when standing On more than one occasion Mr Sanchez attempted to drink from a beer bottle and missed his mouth

7 Mr Sanchez was drinking a Michel ob Ultra beer

8 Mr Sanchez leaned into the bartender and ordered another beer

9 The bartender identified as Ali Kian served Mr Sanchez another beer

I0 Mr Kian is a bartender for Respondents establishment where he has worked for approximately 41 years

11 On August 6 2016 Agent Henry Landin participated 111 the investigation of the establishment as a member of the open team

12 Agent Landin observed Mr Sanchez exhibited signs of intoxication including slurred speech and an odor of an alcoholic beverage on his person In addition Mr Sanchez stated that he had a friend with him at the establishment but he could not recall the name of his friend

13 On March 7 2017 Staff of the TABC issued a notice of hearing informing all parties of the hearing in this matter Staffs notice contained the time place and nature of the hearing stated the legal authority and jurisdiction under which the hearing was to be held referenced the paiiicular sections of the statutes and rules involved and included a short plain statement of the matters asserted

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 12

14 The hearing convened on June 2 2017 before State Office of Administrative Hearings (SOAH) Administrative Law Judge Whitney L Stoebner Staff was represented by attorney Shelia A Lindsey-Sanders Respondent was represented by attorney Clyde Burleson The record closed on June 16 2017 in order for the parties to submit written closing arguments

VI CONCLUSIONS OF LAW

I TABC has jurisdiction over this matter pursuant to Texas Alcoholic Beverage Code (Code) chapter 5 and sect 1161

2 SOAH has jurisdiction over all matters related to conducting a hearing in this proceeding including the preparation of a proposal for decision with findings of fact and conclusions of law pursuant to Texas Government Code Chapter 2003

3 Notice of the hearing was provided as required by Texas Government Codesectsect 2001051-052

4 Respondent violated Texas Alcoholic Beverage Codesectsect l l6l(b)(2) and (14)

5 Based on the foregoing findings of fact and conclusions of law Respondents permit should be suspended for a period of 18 days without the opportunity to pay a civil penalty Codesect l l6l(b)(2) (14) and 1164 (a)

SIGNED August 4 2017

~~d 8amp4LltLlt WHITNEY k TO EBNER ADMINISTRATIVE LAW TUDGE STATE OFFICE OF ADMINISTRATIVE HEARINGS

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

DOCKET NO 64114

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER

CAME ON FOR CONSIDERATION this 22nd day of January 2018 the above-styled

and numbered cause

After proper notice was given this case was heard by the State Office of Administrative

Hearings (SOAH) with Administrative Law Judge Whitney Stoebner presiding The hearing

convened on June 2 2017 and the SOAH record closed June 16 2017 The Administrative Law

Judge made and filed a Proposal for Decision containing Findings of Fact and Conclusions of

Law on August 4 2017 The Proposal for Decision was properly served on all parties who were

given an opportunity to file exceptions and replies as part of the record herein No exceptions

were filed

After review and due consideration of the Proposal for Decision and I adopt the Findings

of Fact and Conclusions of Law of the Administrative Law Judge that are contained in the

Proposal for Decision and incorporate those Findings of Fact and Conclusions of Law into this

Order as if such were fully set out and separately stated herein

One point made by the ALJ in her analysis merits clarification She disagreed with both

partiesrsquo proffered definitions of the word ldquointoxicatedrdquo as applied to Sections 1161(b)(2) and (14) of the Texas Alcoholic Beverage Code The correct definition of ldquointoxicatedrdquo is that found in Section 4901 of the Penal Code as argued by the Commission in front of the ALJ Section

4901 provides for a legal definition of the term ldquointoxicatedrdquo while Section 4902 codifies the elements of the crime of public intoxication Because Respondent is not being charged with the

__________________________________________

crime of public intoxication that section is inapposite to this analysis Instead the general

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

definition of ldquointoxicatedrdquo as found in Section 4901 is the appropriate definition to apply for the Texas Alcoholic Beverage Code

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law

and any other requests for general or specific relief submitted by any party are denied unless

specifically adopted herein

IT IS THEREFORE ORDERED that the privileges granted by the Commission and the

activities authorized under the above permit by the Code will be SUSPENDED beginning at

1201 am on February 15th 2018 and shall remain suspended for EIGHTEEN (18) DAYS

This Order will become final and enforceable on the 15th day of February 2018

unless a Motion for Rehearing is filed by the 14th day of February 2018

SIGNED this the 22nd day of January 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 13: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

SOAH DOCKET NO 458-17-2960 PROPOSAL FOR DECISION PAGE 12

14 The hearing convened on June 2 2017 before State Office of Administrative Hearings (SOAH) Administrative Law Judge Whitney L Stoebner Staff was represented by attorney Shelia A Lindsey-Sanders Respondent was represented by attorney Clyde Burleson The record closed on June 16 2017 in order for the parties to submit written closing arguments

VI CONCLUSIONS OF LAW

I TABC has jurisdiction over this matter pursuant to Texas Alcoholic Beverage Code (Code) chapter 5 and sect 1161

2 SOAH has jurisdiction over all matters related to conducting a hearing in this proceeding including the preparation of a proposal for decision with findings of fact and conclusions of law pursuant to Texas Government Code Chapter 2003

3 Notice of the hearing was provided as required by Texas Government Codesectsect 2001051-052

4 Respondent violated Texas Alcoholic Beverage Codesectsect l l6l(b)(2) and (14)

5 Based on the foregoing findings of fact and conclusions of law Respondents permit should be suspended for a period of 18 days without the opportunity to pay a civil penalty Codesect l l6l(b)(2) (14) and 1164 (a)

SIGNED August 4 2017

~~d 8amp4LltLlt WHITNEY k TO EBNER ADMINISTRATIVE LAW TUDGE STATE OFFICE OF ADMINISTRATIVE HEARINGS

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

DOCKET NO 64114

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER

CAME ON FOR CONSIDERATION this 22nd day of January 2018 the above-styled

and numbered cause

After proper notice was given this case was heard by the State Office of Administrative

Hearings (SOAH) with Administrative Law Judge Whitney Stoebner presiding The hearing

convened on June 2 2017 and the SOAH record closed June 16 2017 The Administrative Law

Judge made and filed a Proposal for Decision containing Findings of Fact and Conclusions of

Law on August 4 2017 The Proposal for Decision was properly served on all parties who were

given an opportunity to file exceptions and replies as part of the record herein No exceptions

were filed

After review and due consideration of the Proposal for Decision and I adopt the Findings

of Fact and Conclusions of Law of the Administrative Law Judge that are contained in the

Proposal for Decision and incorporate those Findings of Fact and Conclusions of Law into this

Order as if such were fully set out and separately stated herein

One point made by the ALJ in her analysis merits clarification She disagreed with both

partiesrsquo proffered definitions of the word ldquointoxicatedrdquo as applied to Sections 1161(b)(2) and (14) of the Texas Alcoholic Beverage Code The correct definition of ldquointoxicatedrdquo is that found in Section 4901 of the Penal Code as argued by the Commission in front of the ALJ Section

4901 provides for a legal definition of the term ldquointoxicatedrdquo while Section 4902 codifies the elements of the crime of public intoxication Because Respondent is not being charged with the

__________________________________________

crime of public intoxication that section is inapposite to this analysis Instead the general

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

definition of ldquointoxicatedrdquo as found in Section 4901 is the appropriate definition to apply for the Texas Alcoholic Beverage Code

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law

and any other requests for general or specific relief submitted by any party are denied unless

specifically adopted herein

IT IS THEREFORE ORDERED that the privileges granted by the Commission and the

activities authorized under the above permit by the Code will be SUSPENDED beginning at

1201 am on February 15th 2018 and shall remain suspended for EIGHTEEN (18) DAYS

This Order will become final and enforceable on the 15th day of February 2018

unless a Motion for Rehearing is filed by the 14th day of February 2018

SIGNED this the 22nd day of January 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 14: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

DOCKET NO 64114

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER

CAME ON FOR CONSIDERATION this 22nd day of January 2018 the above-styled

and numbered cause

After proper notice was given this case was heard by the State Office of Administrative

Hearings (SOAH) with Administrative Law Judge Whitney Stoebner presiding The hearing

convened on June 2 2017 and the SOAH record closed June 16 2017 The Administrative Law

Judge made and filed a Proposal for Decision containing Findings of Fact and Conclusions of

Law on August 4 2017 The Proposal for Decision was properly served on all parties who were

given an opportunity to file exceptions and replies as part of the record herein No exceptions

were filed

After review and due consideration of the Proposal for Decision and I adopt the Findings

of Fact and Conclusions of Law of the Administrative Law Judge that are contained in the

Proposal for Decision and incorporate those Findings of Fact and Conclusions of Law into this

Order as if such were fully set out and separately stated herein

One point made by the ALJ in her analysis merits clarification She disagreed with both

partiesrsquo proffered definitions of the word ldquointoxicatedrdquo as applied to Sections 1161(b)(2) and (14) of the Texas Alcoholic Beverage Code The correct definition of ldquointoxicatedrdquo is that found in Section 4901 of the Penal Code as argued by the Commission in front of the ALJ Section

4901 provides for a legal definition of the term ldquointoxicatedrdquo while Section 4902 codifies the elements of the crime of public intoxication Because Respondent is not being charged with the

__________________________________________

crime of public intoxication that section is inapposite to this analysis Instead the general

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

definition of ldquointoxicatedrdquo as found in Section 4901 is the appropriate definition to apply for the Texas Alcoholic Beverage Code

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law

and any other requests for general or specific relief submitted by any party are denied unless

specifically adopted herein

IT IS THEREFORE ORDERED that the privileges granted by the Commission and the

activities authorized under the above permit by the Code will be SUSPENDED beginning at

1201 am on February 15th 2018 and shall remain suspended for EIGHTEEN (18) DAYS

This Order will become final and enforceable on the 15th day of February 2018

unless a Motion for Rehearing is filed by the 14th day of February 2018

SIGNED this the 22nd day of January 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 15: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

__________________________________________

crime of public intoxication that section is inapposite to this analysis Instead the general

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

definition of ldquointoxicatedrdquo as found in Section 4901 is the appropriate definition to apply for the Texas Alcoholic Beverage Code

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law

and any other requests for general or specific relief submitted by any party are denied unless

specifically adopted herein

IT IS THEREFORE ORDERED that the privileges granted by the Commission and the

activities authorized under the above permit by the Code will be SUSPENDED beginning at

1201 am on February 15th 2018 and shall remain suspended for EIGHTEEN (18) DAYS

This Order will become final and enforceable on the 15th day of February 2018

unless a Motion for Rehearing is filed by the 14th day of February 2018

SIGNED this the 22nd day of January 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 16: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

__________________________________________

DocuSign Envelope ID 308D5F54-CC52-42BF-ABDB-477B28768A0D

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 22nd day of January 2018

Dina Powell Legal Assistant

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035677982

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035677999

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 17: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

DOCKET NO 641144

TEXAS ALCOHOLIC BEVERAGE

COMMISSION Petitioner

sect

sect

sect

sect

VS sect

sect

sect

sect

MIS ENTERPRISES INC

DBA MOULIN ROUGE

Respondent

sect

sect

sect

sect

sect

sect

PERMIT MB471800 LB sect

sect

sect

HARRIS COUNTY TEXAS

(SOAH DOCKET NO 458-17-2960)

sect

sect

BEFORE THE TEXAS

ALCOHOLIC

BEVERAGE COMMISSION

ORDER OVERRULING MOTION FOR REHEARING

1

CAME ON FOR CONSIDERATION this 15th day of March 2018 the above-styled

and numbered cause

An Order in this cause was issued on January 22 2018 suspending Respondentrsquos permits for 18 days On February 14 2018 Respondent timely filed a Motion for Rehearing Petitioner

timely filed a response to the motion on March 1 2018

Respondent asserts that by failing to define ldquointoxicationrdquo Alcoholic Beverage Code (ldquoCoderdquo) sect1161(b)(14) is unconstitutionally vague

In Campos v State 623 SW2d 657 (Tex Crim App 1981) the defendant appealed his

conviction for the unlawful sale of an alcoholic beverage to an intoxicated person in violation of

Code sect10163 Defendant contended that the lack of a definition of ldquointoxicatedrdquo or ldquointoxicationrdquo in the Code rendered sect10163 unconstitutional The Court disagreed that the failure to define

ldquointoxicatedrdquo in sect10163 meant that the statute was unconstitutionally vague ldquoA person of

common intelligence can determine with reasonable precision what conduct it is his duty to avoid

under the statuterdquo

Four years later the same court found a provision of the Code unconstitutionally vague

In Cotton v State 686 SW2d 140 (Tex Crim App 1985) the Court ruled that Code sect6171(a)(6)

as then written was unenforceable as a penal sanction At that time the section provided that a

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 18: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

license could be suspended or cancelled if the licensee ldquosold served or delivered beer to a person

showing evidence of intoxicationrdquo [Emphasis added] The Court distinguished Campos because

the statute in question there (which used but did not define the term ldquointoxicatedrdquo) provided sufficient guidance for a person of common intelligence to determine with reasonable precision

the conduct to be avoided In response to the decision in Cotton the legislature amended Code

sect6171(a)(6) which now provides that a license could be suspended or cancelled if the licensee

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

ldquosold served or delivered an alcoholic beverage to an intoxicated personrdquo [Emphasis added]

In this proceeding Respondent was found to have violated Code sect1161(b)(14) which

provides that a permit can be suspended or cancelled if the permittee ldquosold or delivered an alcoholic beverage to an intoxicated personrdquo The use of the undefined term ldquointoxicatedrdquo in Code sect1161(b)(14) mirrors its usage in the amended version of Code sect6171(a)(6)

The Court of Criminal Appeals having found the use of the undefined term ldquointoxicatedrdquo in Code sect10163 not to be unconstitutionally vague in Campos and the legislature having relied

on the use of the undefined term ldquointoxicatedrdquo to remedy the unconstitutionally vague language in

an earlier version of Code sect6171(a)(6) Respondentrsquos contention that the use of the undefined

term ldquointoxicatedrdquo renders Code sect1161(b)(14) unconstitutionally vague is without merit

For the reasons stated in Petitionerrsquos Response to Respondentrsquos Motion for Rehearing and

as stated in the January 22 2018 Order in this proceeding Respondentrsquos contention that the wrong

standard of intoxication was applied is also without merit

Having fully considered the arguments set forth in the Motion for Rehearing and the

Response thereto Respondents Motion for Rehearing is OVERRULED

All motions requests for entry of Proposed Findings of Fact and Conclusions of Law and

any other requests for general or specific relief submitted by any party are denied unless

specifically granted or adopted herein

IT IS THEREFORE ORDERED

IF THIS ORDER IS NOT APPEALED WITHIN THE TIME ALLOWED BY

ALCOHOLIC BEVERAGE CODE sect1167 the privileges granted by the Commission and the

activities authorized under the above permits by the Code will be SUSPENDED beginning at

1201 am on May 9 2018 and shall remain suspended for EIGHTEEN (18)

CONSECUTIVE DAYS

IF THIS ORDER IS APPEALED AND THE DECISION IS AFFIRMED the

privileges granted by the Commission and the activities authorized under the above permits by

the Code will be SUSPENDED beginning at 1201 am on the fifteenth (15th) day following

the date the decision is affirmed whether by Order or by operation of law and shall remain

suspended for EIGHTEEN (18) CONSECUTIVE DAYS

2

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 19: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

__________________________________________

__________________________________________

Pursuant to Government Code sect2001144(a)(2)(A) this Order is effective on the date

it is signed

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

SIGNED this the 15th day of March 2018 at Austin Texas

Matthew Chaplin Deputy Executive Director

Texas Alcoholic Beverage Commission

CERTIFICATE OF SERVICE

I certify that the persons listed below were served with a copy of this Order in the manner

indicated below on this the 15th day of March 2018

Martin Wilson Assistant General Counsel

Texas Alcoholic Beverage Commission

Whitney L Stoebner

ADMINISTRATIVE LAW JUDGE

State Office of Administrative Hearings

2020 North Loop West Suite 111

Houston TX 77018

VIA FACSIMILE (512) 322-2061

MIS Enterprises Inc

dba Moulin Rouge

RESPONDENT

8930 Winkler Dr

Houston TX 77017-5804

VIA FIRST CLASS MAIL CMRRR 70170660000035678224

Clyde Burleson

ATTORNEY FOR RESPONDENT

1533 W Alabama Suite 100

Houston TX 77006

VIA FIRST CLASS MAIL CMRRR 70170660000035678231

3

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4

Page 20: State Office ofAdministrative Hearings · what he is doing, he is intoxicated. He agreed that the Code does not define intoxication, and that the Penal Code provides two definitions

DocuSign Envelope ID 872BD648-4DD2-4507-A9A0-B283406A0300

Shelia Lindsey

ATTORNEY FOR PETITIONER

TABC Legal Division

VIA E-MAIL Shelialindseytabctexasgov

4