Item 192 Alcoholic Beverage Control DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL ITEM 192 of the Budget Bill , Budget page 490 FOR SUPPORT OF THE DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL FROM THE .GENERAL FUND Amount requested ______________________________________________ $4,215,790 Estimated to be expended in 1962-63 fiscal year_____________________ 4,120,173 Increase (2.3 percent) __________________________________________ $95,617 TOTAL RECOMMENDED REDUCTION__________________________ $4,524 Summary of Recommended Reductions Budget Operating Expenses: A.mount Page Line Communications ~ _____________________________________ $2,827 490 77 Traveling, in-state ____________________________________ 1,697 490 78 GENERAL SUMMARY The Department of Alcoholic Beverage Control was created by Arti­ cle 20, Section 22 of the State Constitution effective January 1, 1955. The director is appointed, subject to confirmation by the majority vote of the Senate, and serves at the pleasure of the Governor. The director currently has four assistants exempt from civil service including one deputy director and three area administrators. The organization of the department includes a headquarters, three area, 18 district and 6 branch offices. Departmental· workload may be grouped into two general categories, licensing and enforcement. The department issues new licenses, handles transfers, and collects license fees for the renewal of 32 different types of licenses issued to retailers, wholesalers, manufacturers and importers. Workload relating to licensing activities has increased over the last two years. The department estimates that in 1960-61 there were a total of 56,000 licensing transactions involving approximately 45,500 licensed premises. Licensing activities for 1961-62 indicate that there were ap­ proximately 67;000 licensing transactions involving 46,145 licensed premises. As of December 1, 1962, a total of 241 new licenses had been issued since the effectuation of Chapter 783, Statutes of 1961. Workload relating to the enforcement of the Alcoholic Beverage Con­ trol Act has been increasing also. In 1960-61 there were 1,627 disciplin­ ary actions against licensees, in 1961-62 the total rose to 1,922. Personal Services , The Department of Alcoholic· Beverage Control has a total of 424.4 authorized positions. It is estimated that $3,294,237 will be spent dur­ ing 1963-64 for Personal Services, representing an increase of $9,030 (0.3%) over the current year. This increase is the net result of merit salary increases and adding four new clerical positions while salary savings are estimated to be higher for 1963-64 than the current year and State Employees' Retirement is somewhat lower. Four clerical positions (budget page 490, line 63) ___________ "- $16,560 The department is requesting four additional clerical positions for three district offices located in the southern part of the State. The posi. 595 Alcoholic Beverage Co'ntrol Item 192 Department of Alcoholic Beverage Control-Continued tions are being 'requested on the basis that increased workload, prin­ cipally due to applications for new licenses and an increasing number of license transfers has resulted .in investigators performing clerical functions such as typing and waiting on applicants at public counters in district offices. We recommend approval of the four proposed new clerical positions in the 1963-64 budget at a cost of $16,560. The issuance of new licenses and the authorization by the Legislature in 1961 of intercounty transfers has had its major impact on the south­ ern districts of the department which have experienced substantial pop­ ulation growth in recent years. This has resulted in the necessity for investigators in those areas to spend proportionately more of their time on license application investigation and less on enforcement. Applica­ tion investigations in turn require more clerical support than enforce­ ment activities. The departmental policy of requiring more thorough application investigations as well as the growing complexity of licensee relationships as more corporate and lessee situations develop, particu­ larly in suburban shopping or recreation center developments, also has increased the amount of clerical activity in relation to application in­ vestigations. This policy is intended in the long run to reduce the neces­ sity for extensive enforcement activity and to lessen the danger that widespread violations will become common in the industry once more. These considerations appear to justify the addition of clerical help as requested at this time. While we approve the additional clerical help requested, we, suggest that a clerical yardstick should be developed by the dep~rtment whic4 will provide a means by which the department can readily ascertain its clerical needs based on some standard of performance. It is felt that' such a yardstick cannot be as simple as a ratio between professional positions and clerks because of differences in workload emphasis be­ tween district offices. A time allowance representing a standard of work should be computed to represent the amount of clerical time needed to complete a given function, for example, the renewal of a license or the issuance of a new license. Such time factors could be assigned to the total workload of a district office to determine the clerical needs of that office. Clear job descriptions should also be developed and properly enforced and investigators should be prevented from performing functions which can be accomplished by clerks. In the 1960-61 fiscal year, 206 agents were reclassified as special investigators and given a one-step pay raise because the Personnel Board felt that current investigative responsibili­ ties warranted such an increase. Proper responsibilities must be as­ sumed by investigative personnel if the reclassification is to be justified. If continuing evidence exists of investigators performing clerical func­ tions next year, consideration should be given to reducing the number of investigators in favor of more clerical help. The current salary range for special investigators is $536-650. ' 596, Item 192 Alcoholic Beverage Oontrol Department of Alcoholic Beverage Control-Continued Operating Expenses Operating expenses for 1963-64 total $861,497, which represents $50,- 646 (6.2 percent) over the $810,851 estimated to be expended in the current year. Increases in operating expenses are mainly due to in­ creases in printing, Office of Administrative Procedure Services, com­ munication, in-state travel and rent. Printing costs are expected to in­ crease approximately 5 percent. Postage increased on January 1, 1963, and in-state travel is increasing due to .a gradual trend toward the use of pool cars instead of .agency cars. Rent is up slightly because of the addition of 706 square feet for a larger accounting office and supply room at headquarters. Oommunications (budget page 490, line 77) _________________ $84,242 The department is requesting a $10,913 or 15 percent increase in this item over actual expenditures in 1961-62 for postage, telephone and telegraph services. A substantial portion of the increase ($6,207) is due toin~reasesin postal rates. The balance reflects increases in telephone charges. We recommend that communications be reduced to $81,415 for a savings of $2,827. A flat rate of $2.36 per station is being charged in 1963-64 for lease .line calls. Lease line coverage will be greatly expanded by 1~63-64 thus thercost for lease line service should be offset by reductions in the cost of long distance toll charges. Communications-Long Distance Calls Aotual Proposed 1961-62 . 1963·64 Long distance toll charges ______ ~-------------- $20,119 $18,900 Lease. line service _____________________________ 1,222 5,268 Totals ___________________________________ $21,341 $24,168 Less Recommended Reduction ______________________ _ ""':'2,821 $21,341 A reductjon in long distance calls should stimulate increases in the use of lease line facilities. In any event, the total cost for long distance calls in. 1963-64 should not exceed actual costs for 1961-62, bec.ause the Department of Finance is increasing lease line service on the basis that it is. more economical. Traveling-in-state (budget page .490, line 78) _____________ $176,869 In-state travel reflects an increase of 10 percent, or $16,501, over actual expenditures in 1961-62; This item includes per diem costs, com­ mon carrier expenses, relocation expenses, training and automobile operations. Major proposed increases are due to increases in meal and hotel costs plus a 5 percent estimated increase in the number of travel­ ing days, We recommend a red~wtion in traveling in-state to $175,172 for a savings of $1,697. 597 Alcoholic Beverage Oontrol Item 192 Department of Alcoholic 'Beverage Control-Continued Since there is no increase in the number of employees who will travel in the budget year, there is no basis for increasing the estimated num­ ber of traveling days by 5 percent for meal and hotel allowanc~s. Adjusting the actual number of man-days of travel in 1961-62 to re­ flect increases in meals and hotels but not for increases in man-days of travel will permit the above reduction in the proposed budget. Equipment The 1963-64 budget reflects an increase in equipment from $28,115 in the current budget year to $64,056. Major increases are due to the purchase of 16 new cars, the purchase of files and Kardveyors which constitute part of the conversion cost from a manual to a mechanical licensing process plus the purchase of additional.