Division of Alcohol Beverage Control

The enacted budget makes the following changes to the Executive Budget (analysis as of March 29, 2006):

• Adds $700,000 to the Compliance Program for nine field investigators.
• Adds $250,000 to the Compliance Program for a problem premises task force to investigate offenses that pose threats to public safety.
• Rejects the authorization for the State Liquor Authority to have general rule and regulation making ability and to increase the maximum fines the Division can impose.

• Reduces the Administration Program by $2,044,000 in nonpersonal services due to the rejection of the Governor’s proposal to raise fines. The Administration’s program’s nonpersonal services appropriation is still 5.7% higher than the SFY2005-06 enacted nonpersonal services appropriation.
• Reduces the Compliance Program by $764,000 in nonpersonal services, fringe benefits and indirect costs due to the rejection of the Governor’s proposal to raise fines. The Compliance program’s appropriations are still significantly increased from its enacted SFY2005-06 appropriation.

The Executive Budget recommends (analysis as of January 25, 2006):

• An increase of 28 FTEs over the adjusted SFY2005-06 FTE level, all in the Compliance Program.  The number of beverage inspectors will double from 28 to 56.

• An increase of $4.85 million to the All-Funds appropriation for State Operations of $19.8 million, a 32.5% increase over SFY2004-05.  This increase million increase is attributable mainly to an increase of $2.2 million (84%) in nonpersonal service in the Administration program and $1.4 million (38%) in personal service in the Compliance Program, reflecting the new beverage inspectors.

·        According to the Assembly analysis, the increases discussed  above include:

·        $2.2 million for doubling the number of beverage inspectors (including fringe and indirect costs)

·        $2.0 million for information technology enhancements to increase on-line transactions by licensees and submission of data such as price postings.

·        $115,000 for relocation costs of ABC from the Donovan Building in Buffalo

·        $47,000 in nonpersonal services costs for per-diem Administrative Law Judges to reduce the backlog of cases requiring review by the State Liquor Authority ; and

·        $477,000 for general salary increases and fringe benefit adjustments

• Article VII legislation would increase fines for serving alcohol to minors and other violations, including higher fines for repeat offenders; and allow the Division to promulgate rules and regulations.