Chairman D’Allesandro, Senate President Larsen, and Honorable Members of the Finance Committee, I am Tricia Lucas and I serve as the Policy Director at New Futures, a nonpartisan, nonprofit advocacy organization working to reduce underage alcohol problems and to increase access to alcohol and other drug treatment.  Over the course of two very long evenings, the Committee has, with great patience, listened to individuals speak with passion and conviction about the need for substance abuse prevention and treatment services and the importance of level funding for the Alcohol Fund.  I am not here to reprise this testimony but to speak with you about two issues of significant importance to New Futures:

• The provisions in HB 2 (Sections 158 – 173) that would transfer the enforcement functions of the Liquor Commission Bureau of Enforcement and Licensing to the Department of Safety. 
• The proposal presented by the NH Grocers Association, but not included in HB 1 or HB 2, to expand the distribution of spirits to all grocery and convenience stores.   

New Futures strongly supports the current organizational structure of the Bureau of Enforcement and Licensing and opposes the proposed transfer of the Bureau to the Department of Safety.

• Enforcement and licensing are core functions of the Liquor Commission.  Pursuant to RSA 176: 3, the second of the “primary duties of the liquor commission” is to “maintain proper controls.”  The central responsibilities of the Bureau - education, licensing, and enforcement – are directly linked to the Commission’s core responsibility to maintain proper controls.  Proper control is necessary to enable the Commission to maximize profit and ensure public health and safety.   Proper control is achieved by the efficient licensing of establishments; the education of licensees regarding their legal responsibilities under the liquor laws; and effective enforcement that both encourages voluntary compliance with licensing and regulatory standards and holds licensees accountable for compliance with these standards. 
• The current organization structure is efficient and effective.  Assigning the education and licensing of establishments to liquor investigators with enforcement authority ensures both operational efficiency and effective enforcement.
• Liquor investigators, as sworn officers, are able as part of the licensing process to educate prospective licensees not only about the administrative requirements of their licenses, but also about their critical legal public health and safety responsibilities to refuse service to minors and to intoxicated individuals. 
• A liquor investigator who identifies a possible violation during a licensing visit is able to immediately begin an investigation, ensuring a prompt resolution of the matter – to the benefit both of the licensee and the Commission. 
• Through the consolidation of education, licensing, and enforcement, the current organizational structure has been effective in reducing violations for over service and sales to minors.  The most recent annual Bureau statistics indicate that out of 4500 licensees, there were 51 violations for over service and that compliance checks for sales to minors showed an 85% compliance rate.  At the 2007 National Conference on Enforcing Underage Drinking Law sponsored by the Office of Juvenile Justice and Delinquency Prevention within the United States Department of Justice, the Bureau of Enforcement was recognized as the enforcement entity of the year.
  • The vast majority of states (72%) utilize organizational structures akin to that currently in effect in New Hampshire – in which the responsibility for alcohol regulatory enforcement is assigned either to the state’s liquor control commission or the state’s department of revenues.
  • New Futures is joined in its opposition to Sections 158 – 173 of HB 2 as passed by the House by the NH Association of Chiefs of Police, the NH Lodging and Restaurant Association, and numerous community prevention coalitions. 

New Futures opposes any significant expansion of access to spirits and strongly opposes the proposal of the NH Grocers Association to allow all grocery and convenience stores to sell spirits.

• Under current law, spirits can only be purchased in the 77 state liquor stores and the three agency stores. 
• Under the NH Grocers Association proposal, spirits could be sold at as many as 1400 additional outlets, from the largest grocery store to the smallest convenience store. 
• New Futures’ opposition to the NH Grocers Association proposal is derived from our mission to reduce underage alcohol problems and our belief that such an expansion presents a significant risk to youth. 
• Research shows that youth are increasingly exposed to advertisements for spirits.  Research also shows that increased exposure to alcohol advertising affects the age of onset of drinking and the amount of alcohol consumed by youth.  Exposure to on site advertising would dramatically increase if spirits were sold in grocery and convenience stores.
• Because of their high alcohol content, spirits are high risk products for youth and are increasingly a product of choice. 
• To increase the distribution of these high risk products without the controls provided in state stores, including regular staff training and restricted access, is irresponsible.   We note that access to tobacco products is significantly restricted in grocery and convenience store because of the risk such products present to youth. 

Thank you for the opportunity to speak with you today,