New Hampshire Liquor Commission faces budget cuts and competition from cannabis industry

New Hampshire's Liquor Commission is facing significant changes as the state legislature considers a proposal to eliminate its enforcement division, which could have far-reaching implications for public safety and revenue generation. During a recent Senate Ways and Means meeting, Joseph Malika, chairman of the Liquor Commission, highlighted the critical role of the enforcement division in regulating the alcohol industry and ensuring the safety of over 6,000 licensees.

The proposed cuts, outlined in House Bill 2, aim to save approximately $3 million annually by removing 19 full-time and 15 part-time positions. However, Malika warned that this move could jeopardize the health and safety of communities, as the enforcement division plays a vital role in monitoring alcohol sales and preventing illegal activities. The potential loss of this division could also threaten the state's annual revenue of about $214 million from liquor sales.

In addition to the enforcement division cuts, the bill proposes repealing the transfer of $10.7 million to the Alcohol Abuse and Prevention Fund, further straining resources dedicated to public health initiatives. The Liquor Commission is advocating for the restoration of these funds, emphasizing that the current revenue projections are based on maintaining the existing structure and enforcement capabilities.

The meeting also addressed broader trends affecting alcohol sales in New Hampshire and nationwide. Malika noted a decline in alcohol consumption, attributed in part to the rising popularity of cannabis, which is projected to be a $3 billion industry in surrounding states by 2025. This shift in consumer spending is impacting liquor sales, with a reported 2% decline in spirits sold in the U.S. in 2023.

As the legislature deliberates on these proposals, the future of New Hampshire's liquor regulation and public safety hangs in the balance. The Liquor Commission is urging lawmakers to reconsider the cuts, emphasizing the importance of maintaining a robust enforcement presence to protect both consumers and the state's revenue stream. The outcome of this legislative session will be crucial in shaping the state's approach to alcohol regulation and public health funding in the years to come.