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    <TD class=3DTextSmall><A class=3DTextSmall=20
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      <P><SPAN style=3D"FONT-SIZE: 14pt"><STRONG><IMG height=3D115 =
src=3D""=20
      width=3D115>Opinion issued May 31, 2007</STRONG></SPAN></P>
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"></SPAN></P><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR =
WP=3D"BR2"><BR=20
      WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>In=20
      The</STRONG></SPAN><SPAN style=3D"FONT-SIZE: 18pt"></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 18pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG>Court of=20
      Appeals</STRONG></SPAN></P>
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>For=20
      The</STRONG></SPAN><SPAN style=3D"FONT-SIZE: 18pt"></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 18pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG>First=20
      District of Texas</STRONG></SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 18pt; FONT-FAMILY: EngrvrsOldEng Bd BT">
      <HR align=3Dcenter width=3D"15%">
      </SPAN>
      <P></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt"><STRONG>NO. =
01-05-01092-CV</STRONG></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>
      <HR align=3Dcenter width=3D"15%">
      </STRONG></SPAN>
      <P></P>
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>TEXAS =
ALCOHOLIC=20
      BEVERAGE COMMISSION, Appellant</STRONG></SPAN></P><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt"><STRONG>V.</STRONG></SPAN></P><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2">
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>JESUS =
RODRIGUEZ=20
      D/B/A LA GAVIOTA NITE CLUB, Appellee</STRONG></SPAN></P><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2">
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>
      <HR>
      </STRONG></SPAN>
      <P></P>
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>On =
Appeal from the=20
      189th District Court</STRONG></SPAN></P>
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>Harris =
County,=20
      Texas</STRONG></SPAN></P>
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>Trial =
Court Cause=20
      No. 2005-63301</STRONG></SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>
      <HR>
      </STRONG></SPAN>
      <P></P>
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: =
14pt"><STRONG>MEMORANDUM OPINION=20
      </STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt"><A name=3Dstart></A>Appellant, =
the Texas=20
      Alcoholic Beverage Commission (TABC), challenges the judgment of =
the trial=20
      court, which reversed an order by the Honorable Robert Eckels, =
Harris=20
      County Judge, who denied the renewal applications for =
wine-and-beer and=20
      on-premise late-hours licenses to appellee, Jesus Rodriguez d/b/a =
La=20
      Gaviota Nite Club (the night club).<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84331#N_1_"><SUP>=20
      (1)</SUP></A> In its single issue, the TABC contends that the =
trial court=20
      impermissibly substituted its judgment for that of the county =
judge and=20
      therefore exceeded the parameters of the substantial-evidence =
standard and=20
      scope of review. We reverse.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">
      <CENTER><STRONG>Background</STRONG></CENTER></SPAN>
      <P></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">The night club is located at =
8011=20
      Harrisburg, near its intersection with Navigation in Houston, on =
land=20
      owned by Rodriguez. Rodriguez filed applications with the TABC to =
renew=20
      his licenses in May 2004. The TABC denied his applications in =
October=20
      2004, based on protests received from the community. The TABC =
dismissed=20
      the action from the TABC docket without prejudice and referred the =

      applications to Harris County Judge Robert Eckels, who then =
referred them=20
      to a</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">special master.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">The special master conducted a =
hearing in=20
      June 2005 and issued a report in August 2005, recommending that =
renewals=20
      be denied on the grounds that the "the place and manner in which=20
      [Rodriguez] may conduct his business warrants a refusal of his=20
      [a]pplication based on the general welfare, health, peace, morals, =
safety,=20
      and sense of decency of the people." <EM>See</EM> Tex. Alco. Bev. =
Code=20
      Ann. =A7 61.42(a)(3) (Vernon Supp. 2006). The master supported =
this=20
      conclusion of law with nine fact findings, and his report lists =
the=20
      parties who appeared at the hearing. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">In addition to Rodriguez and =
the night=20
      club, who appeared through counsel, those at the hearing included =
an agent=20
      of the TABC, an assistant City of Houston attorney appeared on =
behalf of=20
      Houston Mayor Bill White, as well as the president of the Magnolia =

      Park/Pineview Civic Association. The report identifies seven =
witnesses,=20
      who included police officers and a representative of the Houston =
Mayor's=20
      Citizens' Assistance Office.<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84331#N_2_"><SUP>=20
      (2)</SUP></A> </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">When Judge Eckels adopted the =
special=20
      master's report in October 2005, the decision became the ruling of =
the=20
      TABC and thus subject to judicial review under the Administrative=20
      Procedure Act (APA), Tex. Gov't Code Ann. =A7 2001.171 (Vernon =
2000).=20
      <EM>See Lindsay v. Sterling</EM>, 690 S.W.2d 560, 562 (Tex. 1985)=20
      (construing former version of APA, Tex. Rev. Civ. Stat. Ann. =
6252-13a, =A7=20
      19(a)); Tex. Alco. Bev. Code Ann. =A7 61.34(a), 11.67(a)-(b) =
(Vernon 1995).=20
      </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">The night club's motion for =
rehearing=20
      challenged three of the findings in the special master's report =
adopted by=20
      Judge Eckels, but did not specifically challenge the conclusion =
that=20
      renewals be denied pursuant to section 61.42(a)(3) of the =
Alcoholic=20
      Beverage Code, which considers "the general welfare, health, =
peace,=20
      morals, safety, and sense of decency of the people." <EM>See</EM> =
Tex.=20
      Alco. Bev. Code Ann. =A7 61.42(a)(3). After the night club's =
motion for=20
      rehearing was overruled as a matter of law, the TABC sought =
judicial=20
      review in the trial court, which reversed the county's judge's =
ruling and=20
      ordered the nightclub's applications remanded to the TABC. This =
appeal=20
      challenges that ruling.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">
      <CENTER><STRONG>This Court's and the Trial Court's Review of TABC=20
      Order</STRONG></CENTER></SPAN>
      <P></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">The TABC contends that the =
trial court=20
      erred by reversing the order of the TABC, acting through the =
county judge,=20
      and by remanding the applications to the TABC, because substantial =

      evidence supports the order. We agree.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>A. "Place and Manner" =
of=20
      Conducting Business Rationale</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">Section 61.42 of the Alcoholic =
Beverage=20
      Code lists mandatory grounds for refusal to issue a license to a=20
      distributor or retailer. Tex. Alco. Bev. Code Ann. =A7 61.42. =
Pursuant to=20
      section 61.42(a)(3), on which the ruling challenged here is based, =
the=20
      county judge "shall refuse to approve an application . . . if he =
has=20
      reasonable grounds to believe and finds that the place and manner =
in which=20
      the applicant . . . may conduct his business warrants a refusal of =
a=20
      license based on the general welfare, health, peace, morals, =
safety, and=20
      sense of decency of the people." Tex. Alco. Bev. Code Ann. =A7 =
61.42(a)(3).=20
      An applicant who is denied an application may appeal to the =
district court=20
      of the pertinent county "under the substantial evidence rule." =
Tex. Alco.=20
      Bev. Code Ann. =A7 61.34(a), 11.67(a)-(b) (Vernon 1995); =
<EM>see</EM> Tex.=20
      Gov't Code Ann. =A7 2001.174(1)-(2)(E) (Vernon 2000). </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>B. "Substantial =
Evidence"=20
      Review</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">The substantial evidence rule =
governs our=20
      review of both the trial court's judgment and the final order of =
the TABC,=20
      acting through Judge Eckels. <A name=3DSearchTerm></A><EM>Four =
Stars Food=20
      Mart v. Tex. Alcoholic Beverage Comm'n</EM>, 923 S.W.2d 266, 269 =
(Tex.=20
      App.--Fort Worth 1996, no writ)<A name=3DSR;451></A>. The test in =
applying=20
      this rule "is whether the evidence as a whole is such that =
reasonable=20
      minds could have reached the same conclusion that the agency must =
have=20
      reached in order to justify its action." <EM>Tex. Alcoholic =
Beverage=20
      Comm'n v. Sierra</EM>, 784 S.W.2d 359, 360 (Tex. 1990). Whether=20
      substantial evidence supports an administrative decision is a =
question of=20
      law. <EM>Tex. Dep't of Public Safety v. Alford</EM>, 209 S.W.3d =
101, 103=20
      (Tex. 2006). We direct our review to whether the county judge's =
order is=20
      reasonable, rather than whether it is correct, and we may presume =
that=20
      substantial evidence supports the special master's findings, =
inferences,=20
      conclusions, and decisions, as adopted by the county judge. =
<EM>See Garza=20
      v. Tex. Alcoholic Beverage Comm'n</EM>, 138 S.W.3d 609, 613 (Tex.=20
      App.--Houston [14th Dist.] 2004, no pet.); <EM>Four Stars</EM>, =
923 S.W.2d=20
      at 269. To warrant the trial court's having set these aside, the =
night=20
      club had to establish the lack of substantial evidence to support =
them.=20
      <EM>See Four Stars</EM>, 923 S.W.2d at 269-70. Regardless of the =
county=20
      judge's stated reasons for its order, we may uphold the decision =
if there=20
      is any valid basis for it in the record. <EM>Garza</EM>, 138 =
S.W.3d at=20
      613. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">The trial court's role in =
determining, in=20
      a suit for judicial review, whether substantial evidence supports =
the=20
      county judge's ruling differs from and is more limited than when =
it=20
      conducts a trial de novo. <EM>Four Stars</EM>, 923 S.W.2d at<A=20
      name=3DSR;487></A> 269 (citing <EM>City of San Antonio v. Tex. =
Water=20
      Comm'n</EM>, 407 S.W.2d 752, 756 (Tex. 1996)). Substantial =
evidence need=20
      only amount to more than a mere scintilla; proof by preponderance =
of the=20
      evidence is not necessary. <EM>See Garza</EM>, 138 S.W.3d at 613 =
(citing=20
      <EM>Tex. Health Facilities v. Charter Med.-Dallas</EM>, 665 S.W.2d =
446,=20
      453 (Tex. 1984)). Accordingly, the evidence from the =
administrative=20
      proceeding may satisfy the substantial-evidence test even if the =
evidence=20
      preponderates against the county judge's decision. <EM>Id</EM>.; =
<EM>Four=20
      Stars</EM>, 923 S.W.2d at 269 (citing <EM>Haynes v. City of =
Abilene</EM>,=20
      659 S.W.2d 638, 640 (Tex. 1983)). Neither this Court nor the trial =
court=20
      may weigh the evidence independently or substitute its judgment =
for that=20
      of the county judge. <EM>See Sierra</EM>, 784 S.W.2d at 361. The =
burden is=20
      on the licensee to show that substantial evidence did not support =
the=20
      administrative order, <EM>Four Stars</EM>, 923 S.W.2d at 269-70, =
which may=20
      be reversed only if the challenging party establishes that it =
lacked any=20
      reasonable basis. <EM>See Mireles v. Tex. Dep't of Pub. =
Safety</EM>, 9=20
      S.W.3d 128, 131 (Tex. 1999). </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>C. Substantial Evidence =

      Analysis</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">The dispositive issue in a =
proceeding=20
      that seeks denial of renewal of an application brought pursuant to =
section=20
      61.42(a)(3) is whether the county judge "has reasonable grounds to =
believe=20
      and finds that the place and manner in which the applicant . . . =
may=20
      conduct his business warrants a refusal of a license based on the =
general=20
      welfare, health, peace, morals, safety, and sense of decency of =
the=20
      people." Tex. Alco. Bev. Code Ann. =A7 61.42(a)(3). No set formula =

      determines the "place and manner" determination under section =
61.42(a)(3),=20
      by which the county courts exercise great discretion pursuant to=20
      legislative grant. <EM>See Four Stars</EM>, 923 S.W.2d at =
272.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">1. <EM>Evidence presented to=20
      Master</EM></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">Rodriguez not only owns, but =
manages the=20
      night club, and he works there every day. The nightclub opens =
daily at 5=20
      p.m. Closing is at 2 a.m. on Monday through Wednesday, at 3 a.m. =
on=20
      Thursdays and Sundays, and at 4 a.m. on Fridays and Saturdays. =
Rodriguez=20
      employs one part-time server on the weekend. He employs one =
security=20
      officer on Thursdays and Sundays and two security officers on =
Fridays and=20
      Saturdays, but he serves as security officer himself from Monday =
through=20
      Wednesday. He personally cleans up the empty beer bottles and =
trash that=20
      accumulate in the club's parking lot personally and on a daily =
basis. He=20
      described the area as commercial, but acknowledged that a =
residence is=20
      directly behind the nightclub and that his customers park "all =
along" 80th=20
      Street and on Avenue C, where he also picks up trash. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">Rodriguez denied that any =
fights occurred=20
      at the night club during the previous year and stated that he had =
no=20
      memory of a stabbing alleged to have occurred on May 29, 2004. He =
denied=20
      serving any alcohol after 2 a.m., when he serves only nonalcoholic =
beer,=20
      mineral water, and soft drinks, but acknowledged that customers =
might=20
      arrive in an intoxicated state from other bars that have closed. =
Rodriguez=20
      had recently hired a new security company and indicated to the =
master that=20
      he would close the night club at 2 a.m. if his application were=20
      granted.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">A resident whose home is a =
block away=20
      from the night club described his concerns with loud music, =
traffic, and=20
      his fear for the safety of his children because of speeding cars =
leaving=20
      the club parking lot. Another life-long resident of the area =
stated that=20
      she had observed "people getting out of the La Gaviota Night =
Club[,]=20
      speeding with loud music and abusive language[,] and urinating =
outside,=20
      [in] daylight [sic]." A third resident stated that she narrowly =
avoided a=20
      collision with a vehicle that had pulled out quickly from the =
night club=20
      lot, and that she and her family "simply cannot and do not drive =
by the=20
      [night club] on Friday or Saturday nights." </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">A Houston Police officer who =
testified at=20
      the hearing before the special master stated that he had =
participated in=20
      27 arrests that occurred in the parking lot of the night club on =
the night=20
      of April 16 and early morning of April 17, 2004. Of these arrests, =
23 were=20
      for public intoxication, two were on outstanding warrants, one was =
for=20
      solicitation of sale of alcohol, and another was for possession of =
a=20
      controlled substance. The officer who patrolled the area regularly =
stated=20
      that he had responded to between 20 and 30 calls concerning the =
night club=20
      during the year preceding the applications for renewal. =
</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">2. <EM>TABC Findings Challenged =
by Night=20
      Club</EM></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt"><EM></EM>In its motion for =
rehearing to=20
      the county judge and in the trial court, the night club challenged =
the=20
      following findings by the TABC, acting through the county=20
judge:</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">6. On April 17, 2004, HPD vice =
officers=20
      entered La Gaviota Nite Club at 3:00 AM and arrested 23 patrons =
for Public=20
      Intoxication. Another patron was arrested for Possession of a =
Controlled=20
      Substance (cocaine). An employee was arrested for Solicitation of =
an=20
      Alcoholic Beverage by an Employee.</SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt">7. An HPD officer who regularly =
patrols=20
      near Applicant's premises has received 20-30 Calls for Service to =
Gaviota=20
      Nite Club within the last year. Some of these calls led to the =
filing of=20
      criminal charges against club patrons.</SPAN></P><BR =
WP=3D"BR1"><BR=20
WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt">8. On May 29, 2004, a patron =
was stabbed=20
      inside La Gaviota Nite Club.</SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt">The night club challenged these =
findings=20
      by attempting to impeach, discredit, and dismiss consideration of =
the=20
      evidence presented to the county judge on several different =
grounds,=20
      including hearsay challenges and discovery-based objections. The =
club did=20
      not, however, focus on the county judge's ultimate "place and =
manner"=20
      conclusion not to renew the night club's licenses under section=20
      61.42(a)(3) of the Alcoholic Beverage Code. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">With respect to the sixth =
finding, the=20
      night club argued that public intoxication was not a violation of =
the=20
      Code; that, though sale of alcohol to an intoxicated person is a =
violation=20
      of the Code, there was no admissible evidence that the offense =
occurred;=20
      and that it was never shown that the cocaine arrest or the =
solicitation of=20
      alcohol arrest resulted in a conviction. The night club asserted =
similar=20
      objections to the eighth finding and generally argued that the =
number of=20
      calls was not excessive, that there were actually fewer calls, or, =
in the=20
      alternative, that the calls were not probative of conduct that =
warranted=20
      denying the night club's application. The night club dismissed the =
eighth=20
      finding, that a stabbing occurred on the premises, based on its=20
      hearsay-within-hearsay objections and relied on Rodriguez's lack =
of any=20
      recollection that a stabbing occurred. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">3. <EM>Substantial Evidence =
Supports=20
      "Place and Manner"Ruling</EM></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">By reversing the ruling of the =
TABC,=20
      acting through the county judge, the trial court effectively =
determined=20
      that the TABC lacked any reasonable basis, <EM>see Mireles</EM>, 9 =
S.W.3d=20
      at 131, to deny the night's club's requests to renew its =
applications for=20
      a wine and beer license and an after-hours license because "the =
place and=20
      manner in which [Rodriguez] . . . may conduct his business =
warrants a=20
      refusal of a license based on the general welfare, health, peace, =
morals,=20
      safety, and sense of decency of the people." <EM>See </EM>Tex. =
Alco. Bev.=20
      Code Ann. =A7 61.42(a)(3). We cannot agree that the county judge =
lacked a=20
      reasonable basis for this determination. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">Section 61.42(a)(3) authorized =
the county=20
      judge to refuse to renew the night club's applications because the =
place=20
      and manner in which Rodriguez "may" conduct his business warranted =
refusal=20
      because of the general welfare, health, peace, morals, safety, and =
sense=20
      of decency of the people. By employing the word "may," the statute =
does=20
      not require a finding that Rodriguez conducted the business in a =
place or=20
      manner that warranted the refusal, but only that the manner in =
which he=20
      might conduct it warranted refusal. <EM>See id.</EM></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">It is undisputed that the night =
club=20
      remained open until at least 2 a.m. early in the week, and until 3 =
or 4=20
      a.m. later in the week and on weekends. It is also undisputed, =
through=20
      Rodriguez's own testimony, that customers who arrived at the night =
club=20
      after other clubs closed could be intoxicated, though he denied =
serving=20
      alcohol to them. Rodriguez denied knowledge of any fights at the =
club and,=20
      in response to a direct question from the special master =
concerning the=20
      stabbing inside the night club on May 29, 2004, also denied =
knowledge of=20
      that incident. Yet, Rodriguez had only one part-time server and =
limited=20
      security personnel and also claimed that he was present at the =
night club=20
      daily to manage it. In determining, in the eighth finding, that =
the=20
      stabbing had occurred, the special master may have reconciled =
Rodriguez's=20
      conflicting testimony based on a credibility determination that we =
may not=20
      disturb. <EM>See Sierra</EM>, 784 S.W.2d at 361. A stabbing on the =

      premises, coupled with Rodriguez's testimony acknowledging that =
his=20
      late-arriving customers may have become intoxicated elsewhere is=20
      substantial evidence of a manner of operating the night club in =
disregard=20
      of the general welfare, health, peace, morals, safety, and sense =
of=20
      decency of the public. <EM>See Four Stars</EM>, 923 S.W.2d at 271. =

      Customers who might already be intoxicated may have also =
occasioned the=20
      complaints, by neighboring residents, of noise, loud music, =
speeding cars,=20
      abusive language, and urinating in public. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">Rodriguez did not dispute the =
noise from=20
      the night club that formed the basis of the complaints of several=20
      residents, except through the testimony of a single resident who =
lived=20
      directly behind the night club and had "no complaints." But, by=20
      acknowledging that his customers parked not only in his lot, but =
on=20
      neighboring streets Rodriguez underscored residents' complaints =
concerning=20
      excessive traffic. The same testimony concedes the presence of =
abundant=20
      trash, including beer bottles. Despite Rodriguez's testimony that =
he felt=20
      compelled to clean up the trash and picked it up daily, the =
special master=20
      could reasonably have determined that Rodriguez nonetheless =
enabled the=20
      conditions that generated the trash, not only in his lot, but on =
the=20
      neighboring streets. Given Rodriguez's testimony that he refused =
to serve=20
      alcohol after 2 a.m., though he remained open until 3 or 4 a.m. on =

      weekends, the special master may have reasonably found that the =
night club=20
      fostered consumption of alcohol that late-arriving customers may =
have=20
      brought to the area of the night club, where they consumed it and=20
      discarded the containers, not only in his lot, but on the =
surrounding=20
      streets, in disregard of the general welfare, health, peace, =
morals,=20
      safety, and sense of decency of the public. Alternatively, the =
master may=20
      have determined, based on a credibility determination, that =
Rodriguez=20
      actually did provide alcohol after 2 a.m.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">As our sister court emphasized =
in=20
      <EM>Four Stars</EM>, the "general welfare, health, peace, morals, =
safety,=20
      and sense of decency of the people" factors of section 61.42(a)(3) =
of the=20
      Alcoholic Beverage Code permit consideration of conduct that falls =
short=20
      of constituting criminal conduct resulting in a conviction. =
<EM>See=20
      </EM>923 S.W.2d at 271-72 (referring to large scale gang =
gatherings).=20
      Accordingly, the arrests referred to by the officers who testified =
before=20
      the special master also constitute substantial evidence that =
reasonably=20
      supports not only the special master's sixth and seventh findings, =
but=20
      also the master's ultimate conclusion, adopted by the TABC, acting =
through=20
      the county judge, that the place and manner in which Rodriguez =
"may"=20
      conduct his business warranted refusal to renew his applications =
because=20
      of the general welfare, health, peace, morals, safety, and sense =
of=20
      decency of the people.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">Having thus concluded that =
substantial=20
      evidence, as the Government Code defines that term, supports the =
TABC's=20
      refusal to renew the night club's applications, we sustain the =
TABC's sole=20
      issue. </SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt"><STRONG>
      <CENTER>Conclusion</STRONG></CENTER></SPAN>
      <P></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">We reverse the judgment of the =
trial=20
      court and remand the cause.</SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2"><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt">Sherry Radack</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt">Chief Justice</SPAN></P><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt">Panel consists of Chief Justice =
Radack=20
      and Justices Jennings and Bland.</SPAN></P>
      <P><A name=3DN_1_>1. </A>The record reflects that the night club =
did not=20
      serve wine and served only beer, including nonalcoholic beer, and =
mineral=20
      water and soft drinks.=20
      <P><A name=3DN_2_>2. </A>A representative from the office of =
County=20
      Commissioner Sylvia Garcia also appeared to submit a letter, the =
contents=20
      of which do not appear in the record. The record merely reports =
that the=20
      letter was presented, and the trial court accorded it "zero =
weight."=20
    </P></TD></TR></TBODY></TABLE></BODY></HTML>

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