Agency: Alcoholic Beverage Control Line Item: Alcoholic Beverage Control Function The Department of Alcoholic Beverage Control was created by statute in 1935. The Department is charged with the responsibility of conducting, licensing and regulating the sale of alcoholic beverages in a manner and at prices which reasonably satisfy the public demand and protect the public interest. Liquor sales provide more than $65 million annually to the State's General Fund. Net profits are deposited in the General Fund and used to support state government operations. State law also requires a transfer of 10% of gross sales to support the school lunch program. A portion of the tax on beer goes to local governments to help cover their costs of liquor law enforcement.
Intent Language The Legislature intends that in the process of implementing FY 2012 reductions for the Department of Alcoholic Beverage Control, the department and the Alcoholic Beverage Control Commission give attention to geographic closeness and population density, especially in relation to rural areas, where distances between package agencies and stores are greater than those for urban areas. In addition, the Legislature intends that the department and the Alcoholic Beverage Control Commission give particular consideration to keeping open the following rural package agencies: Parowan, Gunnison, Helper, Richmond, and Eureka. The Legislature intends that the Department of Alcoholic Beverage Control shall use the $100,000 appropriated in this item to hire a consultant to develop a business plan that minimizes costs while maximizing profits. The Department shall consider all relevant factors in arriving at unbiased recommendations, such as: demand price elasticity, proximity analysis, demand shifting, customer service, monopoly considerations, demographics and products offered. The Department shall report to the Business, Economic Development and Labor Appropriations Subcommittee during the 2011 Interim. Performance The Department of Alcoholic Beverage Control measures case sales per FTE, warehouse inventory turnover, and percent of profits to sales as performance measures. Data is shown below.    Funding Detail The main DABC line item, Alcoholic Beverage Control, contains the following programs: Executive Director, Administration, Operations, Warehouse & Distribution, and Stores & Agencies. | Sources of Finance | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Liquor Control Fund | $27,066,000 | $28,704,500 | $27,934,900 | $29,644,400 | $29,944,900 | | Transfers | $100,000 | $0 | $0 | $0 | $0 | | Beginning Nonlapsing | $125,100 | $0 | $0 | $0 | $0 | | Closing Nonlapsing - Highway Safety | $0 | $100,000 | $0 | $0 | $0 | | Lapsing Balance | $8,300 | $17,200 | ($9,100) | $0 | $0 | | Total | $27,299,400 | $28,821,700 | $27,925,800 | $29,644,400 | $29,944,900 |
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| | Programs: | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Executive Director | $1,393,500 | $1,916,600 | $1,781,200 | $1,763,000 | $1,799,200 | | Administration | $1,206,500 | $1,116,500 | $1,088,200 | $5,408,200 | $1,092,200 | | Operations | $2,432,500 | $1,719,000 | $1,507,800 | $2,284,200 | $1,507,500 | | Warehouse and Distribution | $1,310,200 | $1,711,500 | $1,662,200 | $971,500 | $1,504,700 | | Stores and Agencies | $19,023,100 | $20,939,200 | $21,886,400 | $19,217,500 | $24,041,300 | | Eliminate Alcohol Sales to Youth | $1,933,600 | $1,418,900 | $0 | $0 | $0 | | Total | $27,299,400 | $28,821,700 | $27,925,800 | $29,644,400 | $29,944,900 |
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| | Categories of Expenditure | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Personnel Services | $14,290,600 | $15,872,200 | $15,894,900 | $18,420,900 | $14,205,200 | | In-state Travel | $68,700 | $46,200 | $48,600 | $36,200 | $44,900 | | Out-of-state Travel | $12,500 | $20,600 | $7,100 | $7,100 | $7,100 | | Current Expense | $10,696,800 | $11,038,200 | $10,273,700 | $9,160,500 | $11,318,300 | | DP Current Expense | $1,914,400 | $1,673,200 | $1,515,000 | $1,867,500 | $1,521,100 | | DP Capital Outlay | $217,000 | $0 | $45,700 | $92,500 | $0 | | Capital Outlay | $66,700 | $171,300 | $140,800 | $59,700 | $2,848,300 | | Transfers | $32,700 | $0 | $0 | $0 | $0 | | Total | $27,299,400 | $28,821,700 | $27,925,800 | $29,644,400 | $29,944,900 |
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| | Other Indicators | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Budgeted FTE | 341.5 | 352.0 | 352.0 | 387.5 | 352.5 | | Actual FTE | 0.0 | 0.0 | 387.0 | 387.5 | 0.0 | | Vehicles | 20 | 20 | 22 | 28 | 20 |
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Subcommittee Table of ContentsProgram: Executive Director Function The Executive Director's Office sets department policies and procedures. The office provides information to the part-time Liquor Control Commission on where to locate liquor stores, issuance of licenses and permits, and other direction in keeping with state statute. Within this budget is funding for licensing and liquor compliance specialists. Specialists train licensees to comply with Utah's liquor laws and make recommendations regarding license applications, suspensions, and revocations. The Department of Public Safety also has liquor enforcement officers who police the licensees. They are funded through the Executive Offices and Criminal Justice Appropriations Subcommittee. Funding Detail The Department draws the majority of its funding from the Liquor Control Fund. | Sources of Finance | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Liquor Control Fund | $1,160,100 | $1,899,400 | $1,790,300 | $1,763,000 | $1,799,200 | | Transfers | $100,000 | $0 | $0 | $0 | $0 | | Beginning Nonlapsing | $125,100 | $0 | $0 | $0 | $0 | | Lapsing Balance | $8,300 | $17,200 | ($9,100) | $0 | $0 | | Total | $1,393,500 | $1,916,600 | $1,781,200 | $1,763,000 | $1,799,200 |
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| | Categories of Expenditure | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Personnel Services | $1,206,900 | $1,402,600 | $1,503,900 | $1,490,000 | $1,512,600 | | In-state Travel | $11,900 | $11,700 | $12,700 | $9,700 | $12,700 | | Out-of-state Travel | $7,900 | $18,400 | $5,800 | $5,200 | $5,800 | | Current Expense | $133,900 | $482,300 | $247,500 | $246,600 | $256,800 | | DP Current Expense | $200 | $1,600 | $11,300 | $11,500 | $11,300 | | Transfers | $32,700 | $0 | $0 | $0 | $0 | | Total | $1,393,500 | $1,916,600 | $1,781,200 | $1,763,000 | $1,799,200 |
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| | Other Indicators | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Budgeted FTE | 17.0 | 17.0 | 17.0 | 17.0 | 18.0 | | Actual FTE | 0.0 | 0.0 | 18.0 | 17.0 | 0.0 |
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Subcommittee Table of ContentsProgram: Administration Function Administration provides centralized administrative services to other programs within the DABC. This includes budgeting, accounting, and auditing stores and package agencies. Funding Detail Funding for the Administration of the Department of Alcoholic Beverage Control comes from the Liquor Control Fund. | Sources of Finance | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Liquor Control Fund | $1,206,500 | $1,116,500 | $1,088,200 | $5,408,200 | $1,092,200 | | Total | $1,206,500 | $1,116,500 | $1,088,200 | $5,408,200 | $1,092,200 |
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| | Categories of Expenditure | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Personnel Services | $579,800 | $605,400 | $564,700 | $598,900 | $569,100 | | In-state Travel | $2,000 | $2,800 | $1,700 | $4,400 | $1,700 | | Out-of-state Travel | $0 | $0 | $500 | $0 | $500 | | Current Expense | $624,300 | $465,000 | $519,200 | $4,800,100 | $518,800 | | DP Current Expense | $400 | $5,400 | $2,100 | $4,800 | $2,100 | | Capital Outlay | $0 | $37,900 | $0 | $0 | $0 | | Total | $1,206,500 | $1,116,500 | $1,088,200 | $5,408,200 | $1,092,200 |
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| | Other Indicators | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Budgeted FTE | 9.0 | 9.0 | 9.0 | 9.0 | 8.0 | | Actual FTE | 0.0 | 0.0 | 8.5 | 9.0 | 0.0 |
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Subcommittee Table of ContentsProgram: Operations Function Operations provides data processing to the Department and manages the operation of the warehouse, delivery, stores and package agencies. All liquor is traced by computer from when it is delivered to the warehouse to when it is sold to the consumer. Liquor is sold through several channels in the state including: state stores, package agencies, clubs, restaurants, airport lounges, and on premise banquet businesses. As mentioned previously, Utah is one of 17 liquor control states and one of only two that have totally state-run systems, Pennsylvania being the other state. Utah buys from the manufacturer, stores, distributes and sells the products and collects the taxes in state-run stores. The state sets the types of retail establishments by law, based on population. Funding Detail The funding for the Operations of the Department of Alcoholic Beverage Control comes from the Liquor Control Fund. | Sources of Finance | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Liquor Control Fund | $2,432,500 | $1,719,000 | $1,507,800 | $2,284,200 | $1,507,500 | | Total | $2,432,500 | $1,719,000 | $1,507,800 | $2,284,200 | $1,507,500 |
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| | Categories of Expenditure | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Personnel Services | $333,200 | $349,900 | $348,200 | $378,600 | $357,800 | | In-state Travel | $200 | $0 | $0 | $0 | $0 | | Current Expense | $52,300 | $42,300 | $34,900 | $38,600 | $25,000 | | DP Current Expense | $1,885,600 | $1,278,200 | $1,124,700 | $1,810,300 | $1,124,700 | | DP Capital Outlay | $161,200 | $0 | $0 | $56,700 | $0 | | Capital Outlay | $0 | $48,600 | $0 | $0 | $0 | | Total | $2,432,500 | $1,719,000 | $1,507,800 | $2,284,200 | $1,507,500 |
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| | Other Indicators | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Budgeted FTE | 14.0 | 14.0 | 14.0 | 5.0 | 5.0 | | Actual FTE | 0.0 | 0.0 | 5.5 | 5.0 | 0.0 | | Vehicles | 2 | 2 | 2 | 2 | 2 |
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Subcommittee Table of ContentsProgram: Warehouse and Distribution Function The Alcohol Beverage Control Warehouse is the storage center and general distribution facility for all alcoholic beverages sold in the state of Utah. The building consists primarily of storage and warehouse space. The rack-support system stands over 100 feet tall. The warehouse also features an automated retrieval system Funding Detail Funding for the Warehouse and Distribution at the Department of Alcoholic Beverage Control comes from the Liquor Control Fund. | Sources of Finance | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Liquor Control Fund | $1,310,200 | $1,711,500 | $1,662,200 | $971,500 | $1,504,700 | | Total | $1,310,200 | $1,711,500 | $1,662,200 | $971,500 | $1,504,700 |
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| | Categories of Expenditure | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Personnel Services | $912,500 | $1,299,900 | $1,320,100 | $1,242,400 | $1,127,400 | | In-state Travel | $0 | $0 | $0 | $200 | $0 | | Out-of-state Travel | $200 | $0 | $0 | $1,000 | $0 | | Current Expense | $325,000 | $298,400 | $231,600 | ($335,400) | $231,600 | | DP Current Expense | $0 | $39,300 | $0 | $3,600 | $45,700 | | DP Capital Outlay | $5,800 | $0 | $45,700 | $0 | $0 | | Capital Outlay | $66,700 | $73,900 | $64,800 | $59,700 | $100,000 | | Total | $1,310,200 | $1,711,500 | $1,662,200 | $971,500 | $1,504,700 |
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| | Other Indicators | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Budgeted FTE | 22.0 | 25.0 | 25.0 | 22.0 | 22.0 | | Actual FTE | 0.0 | 0.0 | 25.8 | 22.0 | 0.0 |
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Subcommittee Table of ContentsProgram: Stores and Agencies Function The State currently operates 44 liquor stores. These stores are located in large and medium-sized communities where the volume of business is high enough to support the costs of operating a store. The State owns 39 stores and leases the other 5. Employees working in the stores are state employees. Package agencies are liquor outlets operated by private individuals or corporate entities under contract with the state for the purpose of selling packaged liquor, wine and heavy beer to the general public for off premise consumption. Package agencies are located in communities too small to warrant the establishment of a state store, and in resorts and hotels where the outlets exist primarily for the benefit of their guests. Package agencies are also located in Utah breweries, wineries, and Utah's newest distillery. Funding Detail The funding for the Stores and Agencies of the Department of Alcoholic Beverage Control comes from the Liquor Control Fund. | Sources of Finance | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Liquor Control Fund | $19,023,100 | $20,939,200 | $21,886,400 | $19,217,500 | $24,041,300 | | Total | $19,023,100 | $20,939,200 | $21,886,400 | $19,217,500 | $24,041,300 |
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| | Categories of Expenditure | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Personnel Services | $11,146,300 | $12,214,400 | $12,158,000 | $14,711,000 | $10,638,300 | | In-state Travel | $52,200 | $31,700 | $34,200 | $21,900 | $30,500 | | Out-of-state Travel | $0 | $2,200 | $800 | $900 | $800 | | Current Expense | $7,747,100 | $8,331,300 | $9,240,500 | $4,410,600 | $10,286,100 | | DP Current Expense | $27,500 | $348,700 | $376,900 | $37,300 | $337,300 | | DP Capital Outlay | $50,000 | $0 | $0 | $35,800 | $0 | | Capital Outlay | $0 | $10,900 | $76,000 | $0 | $2,748,300 | | Total | $19,023,100 | $20,939,200 | $21,886,400 | $19,217,500 | $24,041,300 |
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| | Other Indicators | 2008
Actual | 2009
Actual | 2010
Actual | 2011
Actual | 2012
Approp | | Budgeted FTE | 279.5 | 287.0 | 287.0 | 334.5 | 299.5 | | Actual FTE | 0.0 | 0.0 | 329.2 | 334.5 | 0.0 | | Vehicles | 18 | 18 | 20 | 18 | 18 |
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Subcommittee Table of Contents |