Alcoholic Beverage Control, Division of

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Agency Web Site: https://www.sla.ny.gov/Link to External Website, https://cannabis.ny.gov/Link to External Website

Mission

The Division of Alcoholic Beverage Control (ABC) operates under the direction of the State Liquor Authority (SLA), a three-member Board consisting of a Chairperson, who acts as the agency administrator, and two Commissioners, appointed by the Governor with the advice and consent of the Senate. The Division regulates and controls the manufacture, sale and distribution of alcoholic beverages within the State; issues licenses and permits to manufacturers, distributors, wholesalers and retailers; works with local law enforcement agencies and localities across the State to ensure compliance with the Alcoholic Beverage Control Law; and regulates trade and credit practices for the sale and distribution of alcoholic beverages.

The Office of Cannabis Management (OCM) is an independent state office established by the Marijuana Regulation and Taxation Act (MRTA) and located within the Division of Alcoholic Beverage Control. This office provides a unified and comprehensive regulatory structure to monitor and control the cultivation, processing, manufacturing, distribution, transportation, and sale of cannabis in New York State.

Organization and Staffing

The ABC is organized into three major business units: Administration, Licensing and Compliance. These units are under the direction of an Executive Team including the Chairman's Office, Office of Public Affairs, Licensing Bureau, Wholesale Bureau, Enforcement Bureau, Office of Counsel, Hearing Bureau, Secretary's Office and Internal Audit. The Office of Cannabis Management is an independent state office within ABC.

Budget Highlights

The FY 2023 Executive Budget recommends $111.7 million in All Funds appropriations ($15.7 million in General Fund and $96.0 million in Special Revenue Funds - Other). This includes a year-to-year increase of $2 million in General Fund appropriation for ABC's licensing unit to expedite the review of license applications.

Additionally, the FY 2023 Executive Budget includes an increase of $50 million for the State’s share of a $200 million public-private fund to provide direct capital and startup support to social equity applicants, ensuring that New York's cannabis industry is the most diverse and inclusive in the nation.

The FY 2023 Executive Budget recommends a workforce of 361 FTEs, an increase of 39 FTEs from FY 2022 for additional staffing in ABC's licensing unit. Of the 361 FTEs, 208 are specifically utilized by the Office of Cannabis Management.

Program Highlights

Chairman’s Office

The Chair of the Authority is statutorily responsible and has sole authority for the administration of the State Liquor Authority/Division of Alcoholic Beverage Control. The Office coordinates daily agency operations, providing external support to a wide variety of public and licensed interests, as well as internal support to all agency program units.

Office of Public Affairs

The Office of Public Affairs fosters positive working relationships with federal, state and local legislators, community groups and their staffs. The Office engages in discussions in support of the SLA’s annual legislative program and, where appropriate, Governor’s Program Bills bearing on alcoholic beverage control policy. It also responds to media requests, distributes press releases, and coordinates press-related events and assists in the management of the content of the agency’s website.

Licensing Bureau

The Licensing Bureau coordinates statewide licensing policies, standards and initiatives, and ensures that all license or permit applicants meet the statutory requirements. Staff reviews all license and permit applications, and prepares detailed reports to ensure either the Licensing Board or the Authority Members are able to make a proper determination on each application. This program also handles brand registrations for all alcoholic beverages sold in New York State.

Wholesale Bureau

The SLA regulates the distribution and sale of alcoholic beverages through a tiered system of three independent components: manufacturers, wholesalers and retailers. The Wholesale Bureau provides ongoing assistance and guidance to the industry on trade practices and policy issues.

Enforcement Bureau

The Enforcement Bureau is responsible for investigating possible violations of the Alcoholic Beverage Control Law which are rules and regulations relating to the manufacturing, wholesale, retail, transportation, and storage of alcoholic beverages. This program works with law enforcement agencies and community groups across the State; performs undercover investigations; and conducts training for police departments, licensees, servers and other beverage industry members on alcohol related issues.

Hearing Bureau

The Hearing Bureau is comprised of part-time Administrative Law judges. This program conducts all disciplinary proceedings when licensees are charged with violations and holds hearings to review Licensing Board decisions denying licenses.

Secretary’s Office

This program is responsible for implementing all disciplinary determinations made by the Board; collecting civil penalties and bond payments; and maintaining the repository of agency documentation.

Internal Audit

Internal Audit consists of a shared Special Counsel for Ethics, Risk, and Compliance and Director of Internal Audit. Both positions are shared with the Department of Agriculture and Markets. The Special Counsel position is also shared with the Roosevelt Island Operating Corporation. This program works with the SLA’s employees on identifying risks and ensuring compliance in policies and procedures through evaluations and testing processes.

Office of Cannabis Management

The Office of Cannabis Management (OCM) is responsible for establishing and maintaining a unified, comprehensive regulatory framework for medical cannabis, adult-use cannabis, and cannabinoid hemp in New York State.

OCM is to ensure public health and safety as it relates to regulated cannabis products while also developing a market structure that promotes both economic development and social justice opportunities to those from communities historically impacted by prohibition.

ALL FUNDS
APPROPRIATIONS
(dollars)
Category Available
FY 2022
Appropriations
Recommended
FY 2023
Change From
FY 2022
Reappropriations
Recommended
FY 2023
State Operations 59,668,000 61,711,000 2,043,000 44,573,000
Aid To Localities 0 50,000,000 50,000,000 0
Total 59,668,000 111,711,000 52,043,000 44,573,000

ALL FUND TYPES
PROJECTED LEVELS OF EMPLOYMENT BY PROGRAM
FILLED ANNUAL SALARIED POSITIONS
Program FY 2022
Estimated FTEs
03/31/22
FY 2023
Estimated FTEs
03/31/23
FTE Change
Administration
General Fund 15 15 0
Cannabis Management
Special Revenue Funds - Other 208 208 0
Compliance
General Fund 49 49 0
Licensing and Wholesaler Services
General Fund 50 89 39
Total 322 361 39

STATE OPERATIONS
ALL FUNDS FINANCIAL REQUIREMENTS BY FUND TYPE
APPROPRIATIONS
(dollars)
Fund Type Available
FY 2022
Recommended
FY 2023
Change
General Fund 13,668,000 15,711,000 2,043,000
Special Revenue Funds - Other 46,000,000 46,000,000 0
Total 59,668,000 61,711,000 2,043,000
Adjustments:
Transfer(s) From
Special Pay Bill
General Fund (355,000)
Appropriated FY 2022 59,313,000

STATE OPERATIONS
ALL FUNDS FINANCIAL REQUIREMENTS BY PROGRAM
APPROPRIATIONS
(dollars)
Program Available
FY 2022
Recommended
FY 2023
Change
Administration
General Fund 2,851,000 2,901,000 50,000
Cannabis Management
Special Revenue Funds - Other 46,000,000 46,000,000 0
Compliance
General Fund 5,914,000 5,824,000 (90,000)
Licensing and Wholesaler Services
General Fund 4,903,000 6,986,000 2,083,000
Total 59,668,000 61,711,000 2,043,000

STATE OPERATIONS - GENERAL FUND
SUMMARY OF PERSONAL SERVICE APPROPRIATIONS AND CHANGES
FY 2023 RECOMMENDED
(dollars)
Program Total Personal Service Regular
(Annual Salaried)
Amount Change Amount Change
Administration 1,432,000 50,000 1,417,000 50,000
Compliance 4,779,000 (90,000) 3,964,000 (90,000)
Licensing and Wholesaler Services 5,003,000 2,083,000 4,802,000 2,083,000
Total 11,214,000 2,043,000 10,183,000 2,043,000
STATE OPERATIONS - GENERAL FUND
SUMMARY OF PERSONAL SERVICE APPROPRIATIONS AND CHANGES
FY 2023 RECOMMENDED CONTINUED
(dollars)
Program Temporary Service
(Nonannual Salaried)
Holiday/Overtime Pay
Amount Change Amount Change
Administration 5,000 0 10,000 0
Compliance 800,000 0 15,000 0
Licensing and Wholesaler Services 151,000 0 50,000 0
Total 956,000 0 75,000 0

STATE OPERATIONS - GENERAL FUND
SUMMARY OF NONPERSONAL SERVICE AND MAINTENANCE UNDISTRIBUTED
APPROPRIATIONS AND CHANGES
FY 2023 RECOMMENDED
(dollars)
Program Total Supplies and Materials
Amount Change Amount Change
Administration 1,469,000 0 176,000 0
Compliance 1,045,000 0 108,000 0
Licensing and Wholesaler Services 1,983,000 0 60,000 0
Total 4,497,000 0 344,000 0
STATE OPERATIONS - GENERAL FUND
SUMMARY OF NONPERSONAL SERVICE AND MAINTENANCE UNDISTRIBUTED
APPROPRIATIONS AND CHANGES
FY 2023 RECOMMENDED CONTINUED
(dollars)
Program Travel Contractual Services
Amount Change Amount Change
Administration 27,000 0 1,214,000 0
Compliance 32,000 0 732,000 0
Licensing and Wholesaler Services 20,000 0 1,848,000 0
Total 79,000 0 3,794,000 0
STATE OPERATIONS - GENERAL FUND
SUMMARY OF NONPERSONAL SERVICE AND MAINTENANCE UNDISTRIBUTED
APPROPRIATIONS AND CHANGES
FY 2023 RECOMMENDED CONTINUED
(dollars)
Program Equipment
Amount Change
Administration 52,000 0
Compliance 173,000 0
Licensing and Wholesaler Services 55,000 0
Total 280,000 0

STATE OPERATIONS - OTHER THAN GENERAL FUND
SUMMARY OF APPROPRIATIONS AND CHANGES
FY 2023 RECOMMENDED
(dollars)
Program Total Personal Service
Amount Change Amount Change
Cannabis Management 46,000,000 0 13,482,000 0
Total 46,000,000 0 13,482,000 0
STATE OPERATIONS - OTHER THAN GENERAL FUND
SUMMARY OF APPROPRIATIONS AND CHANGES
FY 2023 RECOMMENDED CONTINUED
(dollars)
Program Nonpersonal Service
Amount Change
Cannabis Management 32,518,000 0
Total 32,518,000 0

AID TO LOCALITIES
ALL FUNDS FINANCIAL REQUIREMENTS BY FUND TYPE
APPROPRIATIONS
(dollars)
Fund Type Available
FY 2022
Recommended
FY 2023
Change
Special Revenue Funds - Other 0 50,000,000 50,000,000
Total 0 50,000,000 50,000,000

AID TO LOCALITIES
ALL FUNDS FINANCIAL REQUIREMENTS BY PROGRAM
APPROPRIATIONS
(dollars)
Program Available
FY 2022
Recommended
FY 2023
Change
Cannabis Management
Special Revenue Funds - Other 0 50,000,000 50,000,000
Total 0 50,000,000 50,000,000

Note: Most recent estimates as of 05/11/2020

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