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Liquor Commission warns enforcement cuts and transfer language would reduce revenue for prevention and education programs
Summary
The Liquor Commission told senators House budget language would eliminate sworn enforcement positions, remove transfers to public-health programs, and require restoration to avoid revenue and program reductions.
Joseph Malika, chairman of the New Hampshire Liquor Commission, and Chief Mark Armaghani of Liquor Enforcement told the Senate Finance Committee the House budget would remove nearly all sworn enforcement staff and repeal transfers that fund alcohol-abuse prevention and the Granite Advantage program.
"HB2 sections related to the NHLC would eliminate the 19 full-time sworn positions and 15 part-time sworn positions," Chief Armaghani said during the Commission's presentation. He added the Division of Enforcement generated about $18 million in revenue in 2024 and that enforcement also performs cross-agency work, including tobacco retailer compliance tied to federal SYNAR funding.
Why it matters: Commission leaders warned that eliminating sworn enforcement would shift responsibilities to towns and state police in places without local law enforcement, reduce the state's ability to enforce licensee rules, and could jeopardize multi-million-dollar federal and state transfers to public-health programs. "Without being at that 80% compliance, they end up losing that money," Armaghani said, referring to SYNAR requirements.
Budget mechanics and transfers: The commission's packet notes proposed repeals of transfers that would remove about $10.7 million to the Alcohol Abuse and Prevention Fund and $12.6 million annually to Granite Advantage. The Liquor Commission presented a house-approved budget comparison showing a $23.3 million reduction in transfers in FY 2026 under the House language. Joseph Malika said the Commission is requesting the Senate add back $3 million to its enforcement budget.
Operational and market context: Malika and staff described industry headwinds — competition from nearby states and national chains, growth in cannabis use and nonalcoholic beverage trends — and defended the commission's modernization, including a new enterprise platform and curbside sales. They said the modernized point-of-sale and enforcement capacity protect consumers and licensees from tainted products and unlicensed sellers.
Enforcement and training: The commission also emphasized its education and licensing activities: 11,155 people trained and 135,500 attendees at public-awareness events in 2024, plus licensing for more than 6,200 on- and off-premise vendors and direct shippers. Chief Armaghani highlighted that enforcement's licensing and training work underpins those activities and helps secure federal and other grant funding.
Senators' questions focused on local enforcement capacity and potential revenue impacts. Senator Lang asked whether towns without local police would be required to enforce laws; Malika said state police would assume responsibilities in those places. Senator Waters asked about SYNAR and other federal funding risks; Armaghani explained 9 compliance thresholds sustained HHS funding.
Ending note: The commission asked the Senate to restore enforcement funding and preserve transfer language to public-health programs. A number of senators pressed for specifics about how enforcement duties would be reassigned if sworn staff were removed; commission staff said the workload and revenue implications are substantial.
