SUMMARY OF: A Sunset Review of the Department of Commerce,

Community, and Economic Development,

Alcoholic Beverage Control Board

Why DLA Performed This Audit

The purpose of the audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2018, and will have one year from that date to conclude its administrative operations.

Report Conclusions

In all areas except licensing, the audit found the board was operating in the public’s interest. Meetings were conducted effectively, investigations were processed timely, and the board developed and adopted regulations necessary to implement statutes.

The audit concluded the board should improve its procedures for issuing renewals, recreational site licenses, and beverage dispensary licenses that encourage tourism. Testing found these licenses were not consistently issued in accordance with statutes. Additionally, operational improvements are needed in enforcing laws, monitoring board-related local law enforcement activity, and processing refunds to municipalities.

In accordance with AS 44.66.010(a)(1), the board is scheduled to terminate on June 30, 2018. We recommend the legislature extend the board’s termination date to June 30, 2022.

Findings and Recommendations

  1. The authority to renew licenses should be limited to the board.
  2. The board should issue recreational site licenses in accordance with statutory requirements.
  3.  The board should issue beverage dispensary licenses in accordance with statutory requirements.
  4.  The board, AMCO director, and enforcement supervisor should work together to formally establish an enforcement plan to direct AMCO’s limited enforcement resources.
  5.  The board and AMCO director should implement a process to monitor and track complaints to ensure they are assessed for follow up action and investigated in a timely manner.
  6. The board and AMCO director should develop written procedures for updating the statewide database with restricted purchasers.
  7.  The board and AMCO director should improve procedures to ensure municipalities report violations of alcoholic beverage laws.
  8.  The AMCO director should develop and implement procedures to ensure refunds to municipalities are appropriately reviewed.