ABCC from A to Z

Between
undercover stings, budget cuts, layoffs, department
transfers, and agency overhauls, the Massachusetts Alcoholic
Beverages Control Commission has certainly been busy over
the last year.

In
June of 2OO3 the agency was moved, after actually being
temporarily eliminated in March, from its longtime home of
the Office of Consumer & Business Affairs to the State
Treasurer’s office where it underwent an extensive
operations overhaul. As with any major changes at an
organization, there was a substantial amount of training,
evaluating and general homework to be done. With new
leadership at the helm, the agency has been doing a great
deal of work, some of it behind the scenes, some of it high
profile.

HIT the
GROUND RUNNING Not
only was the Treasurer’s office new to working with the
Alcoholic Beverages Control Commission (ABCC), but the 11
investigators, highly trained and very specialized, had all
been laid off for three months. This left the Treasurer and
his team with a lot of work to do to get up to speed. Once
the ABCC was moved to the Treasurer’s office, Treasurer
Timothy Cahill assembled a transition team to assess the
agency and make recommendations. The team, that included
Suffolk County Sheriff Andrea Cabral, Patrick Moscaritolo,
of the Greater Boston Conventions & Visitors Bureau, and
Alice Moore of the Attorney General’s Office, among others,
evaluated the agency and made recommendations to the
Treasurer and his staff. The recommendations were
substantial and included change in leadership, reinstatement
of the investigative unit, re-organization of the entire
agency, information technology upgrades, and better business
practices in licensing and cash transactions – in short, a
total overhaul. To begin, Treasurer Cahill re-hired 9 of the
11 Investigators who had been laid off and in September, he
appointed Eddie Jenkins, Esq. as the new Chair of the
Commission. A Managing Partner at the offices of Eddie
Jenkins & Associates, Jenkins was the ideal candidate
for the job – being familiar with law enforcement as well as
having represented bars and restaurants in the past. His
responsibilities as the Chair include setting the general
policy for the agency, observing hearings and providing
direction to the senior staff regarding overall operation
and management.

Additionally, the
Investigation and Enforcement Division underwent an
extensive six-week re-training period conducted in-house by
Chief Investigator Frederick Mahony and externally by the
Suffolk County Sheriff’s Department. Upon completion of the
training program, from November 6 through December 31 of
2OO3, the Investigation and Enforcement Division conducted
enforcement operations in over 1OO communities. They
investigated and closed 198 complaints filed with the
Commission since September 15, 2OO3; investigated and closed
355 Operating Under the Influence (OUI) notices reported to
the Commission; completed 2794 license application
investigations filed with the Commission; initiated several
on-going investigations into gaming and organized crime
activity; re-instituted Operation Safe Holidays with
unprecedented success: verified more than 5OO IDs, stopped
117 minors in possession of alcoholic beverages, charged 27
adults with procuring alcohol for minors, charged 12 bars
with serving an intoxicated patron, placed 3O individuals
into protective custody.

They have also seen
impressive revenue growth. In FYO3 the ABCC produced a total
of $1,636,821 in revenue. As of December 31, 2OO3, that
number grew to $2,382,312 through increased fees for new
applicants and license renewals. The ABCC also projected
collecting over $1 million in back taxes owed by delinquent
licensees, in collaboration with the Department of Revenue.
(Statistics provided in the ABCC’s 2OO3 Annual
Report.)

OPERATION
SAFETY Keeping
alcohol out of the hands of minors and stopping drunk
drivers before they get on the road have long been two key
priorities for the ABCC – and continue to be so for this
administration. Operations that the agency conducts
throughout the year are Operation Safe Holidays (consisting
of Operation Last Call and Cops in Shops), Safe Campus, Safe
Spring, Safe Prom and Safe Summer. All of these procedures
take place during periods in the year when statistics show
an increase in alcohol-related incidents. The actions entail
increased investigator and law enforcement presence on the
roads and at bars and retail stores, checking for minors in
possession of alcohol, people being over-served, etc. During
the period when the ABCC was not in service some of these
operations weren’t conducted, which was a significant risk
to take. Although it’s difficult to determine at this time
if the lack of operations led to an increase in incidents,
it’s realistically quite probable. Since being back on
track, the agency has aggressively carried out these safety
operations with strong results.

CRACKING
DOWN on ADULTS The
issue of adults purchasing alcohol for minors has been a
particular concern and the ABCC, and criminal justice
officials have increased their efforts to stop it. Cops in
Shops, a part of Operation Safe Holidays, targets specific
stores that the Investigation and Enforcement Division has
identified as having repeated incidents of adults purchasing
alcohol for minors, as well as underage individuals using
fake IDs to buy alcohol. ABCC investigators, in cooperation
with liquor storeowners, both act as store clerks and
conduct surveillance operations in liquor store parking lots
to try and catch the pass-off of alcohol after the purchase.
Thus far, the operations have gone very well for the
agency.

Surprisingly, the adults in
question are not necessarily always the 21- or 22-year-olds
one might expect to be buying for their underage friends. In
many instances, it’s the parents who are buying for their
children. Many adults don’t see the harm in providing
alcohol to their children and their friends, usually in the
setting of their own home. The argument often made is that
they would rather know where their children are and that
they aren’t driving anywhere rather than have them be out on
the roads or trying to get into bars. However, aside of the
fact that this is illegal, too many tragic incidents,
including alcohol poisoning, drunk driving accidents and
fatalities, have occurred as a result of these lenient
attitudes over the last few years. Parents and other adults
who host parties are now being held responsible through the
Social Host Law for what takes place on their property.
Chairman Jenkins states, “The Social Host Law was enacted in
August 2OOO as an emergency act. Attention may be more
focused on this law now since criminal justice officials
have recently applied it with more frequency. These
officials have recognized it as the powerful tool it was
intended to be to stop the problems caused by under-age
drinking at parties in private homes.” During the 2OO4 prom
and graduation season many parents were warned of the
ramifications of providing alcohol to minors and that law
enforcement would be checking on parties.

OPEN
BARS OPEN the DOOR to TROUBLE
Another area of concern for the ABCC last year was the
potential violation of the state’s Happy Hour laws during
holiday parties held at bars. During the 2OO3 holiday season
the ABCC noticed ads promoting New Year’s Eve parties at
various bars and clubs offering an open bar with the price
of the ticket. In a release issued last December, Chairman
Jenkins stated, “We are concerned that many establishments
are trying to circumvent our ‘Happy Hour’ regulations. We
continue to see these advertisements in local papers despite
our work over the past few weeks. As stipulated in the
regulation, an establishment cannot hold an ‘open bar’
unless it is an approved private function. By advertising
these events, the license holder is turning them into public
functions.” Although investigators gave fair warning to bars
and clubs that they would be checking up on them New Year’s
Eve, many bars went ahead with their plans and found
themselves with charges against their establishments. There
have been several hearings to date with punishments
generally being a suspension of license for between seven to
ten days. Whether or not bars will promote similar type
events this year remains to be seen, but the ABCC will
undoubtedly be on the lookout.

KEEPING
UP with the KIDS
It’s amazing how innovative kids can be when it comes to
creating fake IDs to beat the system – and the more advanced
that detection systems become, the smarter kids become at
evading them. Regarding the issue of fake IDs, Chairman
Jenkins comments, “The creation and distribution of false
identification continues to be an issue inextricably linked
to under-age drinking. The Commission addresses the question
by holding licensees accountable. Licensees can help
themselves by using the tools within the law to fight back
against the tide of under-age drinkers. Licensees can file
affidavits with the Registry of Motor Vehicles for them to
suspend the driver’s license of persons using false motor
vehicle licenses as a fake ID. Also, Licensees who request
Massachusetts state licenses may be protected by
‘affirmative defenses’.”

So how do the investigators
keep up with the ever-adapting youth? Chairman Jenkins says,
“All investigators are given extensive training by the Chief
Investigator, Sheriff’s offices, and ongoing training with
experts from the Registry of Motor Vehicles. The majority of
the investigative staff have been deputized by the various
Sheriff’s departments across Massachusetts. They also have
access to some of the most sophisticated equipment available
for detecting fake IDs. Unfortunately, college students
always seem to be ahead of the curve when it comes to
producing high quality fakes. The registry of motor vehicles
is constantly trying to develop a fraud proof identification
card, and will continue to improve its production methods to
reduce this problem.”

But licensees and
investigators aren’t the only ones who need to worry about
checking identification. Bouncers, store clerks, bartenders,
waitstaff, and management are all responsible for checking
IDs. Staff need to remember that the ones who actually do
the serving are the most liable. Programs like TIPS, which
train industry workers in verification techniques, have
proven time and time again how valuable they are. TIPS also
teaches how to handle difficult, tricky, belligerent, and
obstinate people who are either trying to get served with
false identification of have been shut off and want more to
drink.

POINT,
CLICK, DRINK The
Internet has become a virtual candy-land for minors looking
to buy alcohol. Almost anyone with a credit card can go to a
website, make an order and get a delivery right to their
front door. Shipping from out-of-state direct to the
consumer also allows companies to avoid paying taxes and
illegally circumvent the 3-tier system for importing and
selling alcohol in Massachusetts. Boston recently made
national news in June when the Attorney General, ABCC and
several minors working undercover conducted a sting against
on-line retailers. The minors were able to order substantial
quantities of alcohol. whichwere delivered to multiple
separate residences, without a single age verification
check. Presently, four out-of-state online retailers are
being sued by the state for violating Massachusetts’ liquor
laws. Additionally, three shipping companies are being
charged with violating those laws. Delivery people aren’t
typically trained in ID verification, but, by their
companies agreeing to ship alcohol to homes, the
responsibility does fall to them. Treasurer Cahill remarks,
“This will be an important lesson for the delivery companies
whose whole fate is in the hands of the delivery person.”
Will they want to continue working with online retailers
when so much rests on the actions of the person who brings
the package to the front door? It’s a huge risk to take. The
cases will most likely be heard in the autumn of this year,
with companies and organizations all over the nation
watching the outcome.

The sale of alcohol through
the internet has actually been a concern for several years.
In an article that appeared in the Spring 2OOO issue of The
Bar, titled “Massachusetts ABCC Investigators Still On the
Job . . . For Now”, author Richard Blau, Esq. addresses the
issue of online sales saying, “The recent growth of illicit
alcohol sales over the internet demonstrates that
Massachusetts and other states are losing millions of
dollars in uncollected taxes due to inadequate regulatory
investigation and enforcement. In this context, the
economics of the situation, as well as public policy
considerations, argue in favor of increasing the ABCC’s
investigative staff.” So far that hasn’t happened, but his
article lends considerable support to the
argument.

OUTREACH
PROGRAMS Several
recent high profile alcohol-related incidents, most
specifically the Northeastern Superbowl riots and subsequent
death of a student, have prompted the Treasurer and Chairman
to initiate more outreach programs targeted directly at
youths. They have focused on getting out and working with
students, college administrators, retailers, and abuse
counselors. Of their goals, Chairman Jenkins says, “This
year, the ABCC, in partnership with college and local
officials, will conduct educational and alcohol awareness
seminars throughout the Commonwealth in an effort to combat
underage drinking and alcohol abuse. Our goal is to make the
potential underage drinker aware of the possible penalties
and hazards they may face.” The ABCC also works with
organizations such as Mothers Against Drunk Driving (MADD)
to inform youth about the dangers and consequences of
underage drinking. This year the ABCC participated in MADD’s
annual Massachusetts Youth Summit. ABCC investigators acted
as chaperones for the three-day event and Chairman Jenkins
was a featured panelist at one of the seminars, speaking on
how the ABCC is working to limit access to minors. They also
asked the youths for feedback and were given a list of
recommendations from them for preventing underage drinking.
Young people have a completely different insight into this
issue and their advice is invaluable.

Also this year, the
Regional Conference of State Liquor Administrators will be
held in Boston November 7 through 1O at the Omni Parker
House. The goals of this conference are to educate liquor
administrators on best practices, promote better methods of
enforcing the liquor control laws across the country and to
work with the Federal government in its administration of
the Federal Alcohol Administration Act. This year, following
the close of the meeting, there will be an economic
opportunity seminar where industry leaders will be able to
suggest ways to increase diversity within the beverage
alcohol industry in Massachusetts. Additionally, in 2OO6,
the National Conference will take place in
Boston.

USER
FRIENDLY ORGANIZATION
One of the objectives of this team has been to make the ABCC
more of a user friendly, professional agency. The website,
www.mass.gov/abcc is filled with information including a
downloadable PDF version of the Blue Book as well as FAQ’s,
liquor laws, hearing information, contacts, and more.
Chairman Jenkins comments, “The ABCC of today is a more
approachable, user-friendly agency working to grow the
beverage alcohol industry within Massachusetts responsibly.
We encourage the industry to strive for diversity in order
for it to be more reflective of its consumer base, and first
and foremost, we work to protect the safety of the citizens
of the Commonwealth. This spring we conducted Regional
hearings in the cities of Springfield and Lawrence. These
hearings allowed us the opportunity to meet with the local
boards, police and public officials and offered us a better
understanding of the communities we serve.” The Commission
has also updated the Blue Book – a reference guide to assist
local licensing authorities. Soon the Chairman, along with
the ABCC’s legal counsel, William Kelley, will be conducting
training seminars for local boards across the state to bring
them up to date on current procedures and changes in the
laws.

PILGRIM’S
PROGRESS With its
2am closing time, lack of Happy Hour and the many
restrictions that accompany it, Massachusetts has long had a
reputation for being stringent and rather Puritanical when
it comes to alcohol. The belief by many is that Boston is,
after all, an international hub and should adapt to the
wants of the consumers. But things are changing, and the
Treasurer’s Office views the state’s progress as very
positive. Chairman Jenkins says, “Massachusetts is a
vibrant, competitive marketplace for all responsible members
of the beverage alcohol industry. While some may see
Massachusetts as a mature market, there is no denying the
large selection of brands and sizes that a Massachusetts
consumer enjoys. The truth is that consumer choices in
Massachusetts are so wide that you can match the selections
available in both brand and sizes against any other state.
Moreover, Massachusetts’ vendor prices meet or beat the
value in any other state’s portfolio. In fact, to illustrate
how much the beverage alcohol industry within Massachusetts
has grown over the years, your publication showcases the
revenue the Commonwealth enjoys from the taxes paid by this
industry each month. The facts are that both gallonage,
imported or manufactured, and dollars collected by the
Commonwealth are up. Lastly, the expansion of Sunday sales
surely helps destroy the myth that Massachusetts is a
puritanical state when it comes to the regulation of
alcoholic beverages.”

INDISPENSABLE
and ACCOMPLISHED ORGANIZATION
The alcohol industry in Massachusetts is large, very
profitable and quite complicated. A vital part of the
regulatory process, the ABCC has narrowly escaped complete
elimination several times due to budget cuts over the last
few years. It is unfortunate that those making the cuts have
little understanding of or appreciation for what this very
specialized organization does. Despite the protests and
arguments by highly qualified professionals as to why the
ABCC should not be eliminated, the logic fails to impress
itself. Only this past June/July did Governor Romney once
again try to eliminate the funding for the organization. The
Legislature overrode the Governor and the ABCC made it
through – but it’s safe to assume he will try again next
year.

The ABCC is far more than
just an agency that conducts stings and issues licenses. It
has a tremendous responsibility and takes it very seriously.
Massachusetts is filled with liquor stores, restaurants and
bars and many, many underage students. Boston alone has
twenty-six 4-year colleges, and there are more than fifty
colleges and universities located within a 5O-square mile
area. With only 11 investigators and approximately 22,OOO
licenses to oversee, the agency has its work cut out for it.
Thus far the industry seems to view the new administration
in a positive light. Their team is a highly focused and
goal-oriented one that gets results and has been working
diligently since it took over last year. If anything, the
impression is that there are far more than 11 investigators
out there!