Program C: Alcohol and Tobacco Control

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Program C: Alcohol and Tobacco Control

Program Authorization: R.S. 14:93.20; R.S. 15:578 (A)(1); Title 26 of the La. Revised Statutes; R.S. 36:451(B) and (C), 458(E), 459(F), and 921(C).

PROGRAM DESCRIPTION

The mission of the Alcohol and Tobacco Control Program in the Office of Revenue is to oversee the alcoholic beverage and tobacco industries within the State of Louisiana, providing the state with an effective system of regulation of the alcoholic beverage and tobacco industries wherein any of those people qualified under law are allowed to participate in the industry and the interest of the public is protected by keeping illegal activities to a minimum.

The goals of the Alcohol and Tobacco Control Program in the Office of Revenue are:

Reduce underage consumption of alcohol and tobacco through professional, knowledgeable and courteous service to taxpayers of the state.

Assist taxpayers applying for alcohol and tobacco permits with prompt and quality service, in an effort to deliver permits in the shortest time possible.

The Alcohol and Tobacco Control Program in the Office of Revenue mincludes the following activities: Administrative and Compliance and Enforcement and Field Certification.

The Administrative and Compliance activity is responsible for licensing alcoholic beverage manufacturers, native wineries, retailers, and wholesalers, and retail and wholesale tobacco product dealers. This division issues approximately 30,000 permits annually.

The Enforcement and Field Certification activity is responsible for enforcing Title 26 of the Louisiana Revised Statutes, the Beer and Liquor Law, and the Youth Access to Tobacco Law. Enforcement agents, in conjunction with local law enforcement personnel, conduct random inspections at locations where alcoholic beverages and tobacco products are sold. Agents also investigate current license holders' operations to assure compliance with the sometimes complex fair trade laws that govern the industries. Annually, the division conducts over 15,000 inspections and responds to 10,000 dealer requests.

OBJECTIVES AND PERFORMANCE INDICATORS

Unless otherwise indicated, all objectives are to be accomplished during or by the end of FY 1999-2000. Performance indicators are made up of two parts: name and value. The indicator name describes what is being measured. The indicator value is the numeric value or level achieved within a given measurement period. For budgeting purposes, performance indicator values are shown for the prior fiscal year, the current fiscal year, and alternative funding scenarios (continuation budget level and Executive Budget recommendation level) for the ensuing fiscal year (the fiscal year of the budget document).

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

This program is funded with Fees and Self-generated Revenues, Interagency Transfers and Federal Funds. The Fees and Self-Generated Revenues are generated through fees assessed the industry through the required purchase of various licenses, permits, etc. Also included are fines for violations. The Interagency Transfers are from the Department of Health and Hospitals for enforcement of the Prevention of Youth Access to Tobacco Law; from the Department of Public Safety for the enforcement of State and Federal laws prohibiting the sale of alcoholic beverages to underage consumers; and from the Department of Health and Hospitals for the "Combating Underage Drinking" Grant. The Federal Funds are received through the U.S. Food and Drug Administration to support unannounced compliance checks throughout the State. The checks are targeting compliance with federal laws concerning the sale and distribution of tobacco products to minors.

ANALYSIS OF RECOMMENDATION

GENERAL FUND	TOTAL	T.O.	DESCRIPTION

$0	$2,947,393	78	ACT 19 FISCAL YEAR 1998-1999

			BA-7 TRANSACTIONS:
$0	$191,720	0	Carry forward for acquisitions which could not be delivered prior to June 30, 1998
$0	$612,566	0	Increase to pay enforcement agents at the mid-range level; increase to reflect 5,000 unannounced compliance checks at those retailers that sell tobacco products

$0	$3,751,679	78	EXISTING OPERATING BUDGET - November 20, 1998

$0	$36,365	0	Annualization of FY 1998 - 1999 Classified State Employees Merit Increase
$0	$36,819	0	Classified State Employees Merit Increases for FY 1999 - 2000
$0	($5,410)	0	Risk Management Adjustment
$0	$380,469	0	Acquisitions and Major Repairs
$0	($62,212)	0	Nonrecurring Acquisitions and Major Repairs
$0	($191,720)	0	Nonrecurring Carry Forward for Acquisitions
$0	($831)	0	Rent in State-owned Buildings
$0	($5,407)	0	Maintenance of State-owned Buildings
$0	$209,531	0	Salary Base Adjustment
$0	($121,639)	0	Attrition Adjustment
$0	($48,081)	(2)	Personnel Reductions
$0	($92,790)	0	Salary Funding from Other Line Items
$0	$318,500	7	Workload - Salaries, Operating Services, Supplies and Acquisitions for the Responsible Vendor Program
$0	$2,471	0	Other Adjustments - Automatic Reallocations within various job training series of the program
$0	$59,229	0	Other Adjustments - Enforcement and Responsible Vendor Division lease
$0	$100,000	0	Other Adjustments - Additional overtime to enhance efforts to reduce underage alcohol and tobacco usage
$0	($9,084)	0	Other Adjustments - Reduce Interagency Transfers with DHH – Office of Alcohol and Drug Abuse for excess compliance checks
$0	($66,787)	(2)	Technical Adjustment – Transfers two (2) positions to the Tax Collection Program to reflect funding in the appropriate program

$0	$4,341,102	81	TOTAL RECOMMENDED

$0	$589,423	3	DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 115.7% of the existing operating budget. It represents 91.7% of the total request ($4,735,642) for this program. The increase in the recommended level is primarily attributed to the funding of overtime to enhance efforts to reduce underage drinking, an increase of seven (7) positions and related funding for the Responsible Vendor Program and the funding of acquisitions.

PROFESSIONAL SERVICES

$5,500		Provide web site for the Office of Alcohol and Tobacco Control
$10,000		Create and maintain database for new software programs
$10,400		Provide legal research and brief to the Commissioner of the Alcohol and Tobacco Control
$10,000		Provide advice, opinion and expert testimony, brochures, etc.
$50,000		Production company to provide a media campaign to reduce underage drinking and announce the new requirements for the Responsible Vendor Law which becomes mandatory on January 1, 2000.

$85,900		TOTAL PROFESSIONAL SERVICES

OTHER CHARGES

		Interagency Transfers:
$94,359		Rent in State-owned Buildings
$5,407		Maintenance of State Buildings
$2,154		Payments to the Department of Civil Service
$26,605		Department of Public Safety - computer line usage

$123,118		TOTAL INTERAGENCY TRANSFERS

ACQUISITIONS AND MAJOR REPAIRS

$10,069		Replacement office equipment including desks, chairs, printers, bookcases and computer hatches
$370,400		Replacement of thirteen vehicles and law enforcement equipment including radios, uniforms, and cameras

$492,569		TOTAL ACQUISITIONS AND MAJOR REPAIRS

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