Division of Alcohol Beverage Control

The enacted budget makes no changes to the Executive Budget. The Legislature also enacted the Governor’s Article VII proposal (in S6260-B/A9762-B) that allows all police officers and NY State Department of Tax and Finance peace officers to inspect premises licensed to sell beer, wine, and/or liquor off the premises (e.g. grocery stores and liquor stores). (Analysis as of May 21, 2002)

The 30-day amendments to the Executive Budget recommend (analysis as of Feb. 25, 2002):

·   An amendment to the Article VII legislation which clarifies that peace officers in the New York State Department of Taxation and Finance would be the only peace officers authorized to inspect premises licensed to sell beer, wine, and/or liquor off the premises (e.g. grocery stores and liquor stores).  All police officers and authorized State Liquor Authority representatives would also be authorized to inspect these types of premises under the proposed legislation.  

The Executive Budget recommends (analysis as of February 1, 2002):

·        A recommended workforce of 181 FTEs, which represents a decrease of 11 FTEs in SFY 2002-03.  In addition, 5 FTEs are to be eliminated in SFY 2001-02 in addition to the 12 FTEs that were eliminated in the enacted SFY 2001-02 budget.  Overall from November 2001 to March 31, 2002 the Division of Alcohol Beverage Control will lose 16 FTEs:  3 FTEs in the Administration program, 6 FTEs in the Compliance program, and 6 FTEs in the Licensing and Wholesaler Services program.  According to GOER and DOB, all cuts will be accomplished through attrition.

·        The relatively small reductions in the personal service appropriations for the Administration, Compliance, and Licensing and Wholesaler Services programs indicate that the FTE reductions are likely to be vacant positions.

·        The Division’s non-personal service budget is increasing by $300,000 which is unusual in light of the decrease in the size of their workforce.  The $163,000 increase in the administration’s program is a particularly high increase (almost 12%). None of these increases are explained in the Executive Budget.

·        Article VII legislation which would authorize any peace officer, police officer or authorized representative of the State Liquor Authority to inspect premises licensed to sell beer, wine, and/or liquor off the premises (e.g. grocery stores and liquor stores).  According to the Executive Budget extending these enforcement provisions is necessary to improve enforcement of the alcohol tax law and stem the tax evasion that occurs when one retailer sells alcoholic beverages to another.  The Executive Budget estimates that this legislation is necessary to prevent the loss of $3 million in annual State revenue.  A similar proposal was made by the Executive in 1997 and was not enacted into law.  It should be noted that the Compliance program has lost 11 FTEs and the Licensing and Wholesaler Services program has lost 34 FTEs since SFY 94-95.