ABC Community Advisory Council Meeting Minutes

South Region - Richmond North and South

January 26, 2008 Meeting

The first Advisory Council meeting for the Central Richmond area was held at the headquarters office building of the Virginia Department of Alcoholic Beverage Control in Richmond on Saturday, January 26, 2008. The meeting was facilitated by Special Agent in Charge (SAC) Joseph Cannon of the Richmond South Region and assisted by SAC John Alexander of the Richmond North Region.

SAC Cannon gave an overview of the Commissioners of the ABC Board: Susan Swecker, Esther Vassar and Pamela O'Berry Evans. He also introduced Director of Law Enforcement Frank Monahan and Deputy Director Shawn Walker.

Commissioner Evans then spoke and thanked all for giving up a Saturday to attend. She advised that this was where her interest lies having worked with the communities, licensees and concerned citizens. Prior to her appointment to the ABC Board she served as an attorney in the City of Richmond and as General Counsel for the Richmond Police Department. She stated she is aware of many of the concerns, and we are here to listen to you and work with you on issues of mutual interest. We would like to know how "ABC Is Doing" both the good and bad. This meeting is a way for you to talk to Board members and enforcement staff. How is ABC doing in our communities, our efforts in blight eradication, dealing with irresponsible licensees, are we responsive to the community's issues? This meeting is a way for us to constructively deal with those issues so you can be heard. Working with Director Monahan we have created this process and she hoped it would continue even when she has assumed other responsibilities at the end of her time at ABC. She stated we could make a difference in our communities by constructive dialog and interaction.

Director Monahan then addressed the group. He explained that the regional SACs were asked to recruit council members. The SACs were charged with identifying people who were known to have mutual concerns regarding alcohol issues. Because the state was so large an area it was determined the best way to precede was to create four regional councils. Once the groups have an initial meeting they will meet at least annually to discuss issues of interest. Each council will have access to the work of the other councils and will build on that work. A bulletin board is on ABCs Web site where minutes from each regional meeting and additional questions and comments will be posted for all to review. Today's meeting is the first and the Director used the analogy of building an airplane as it was being flown. We would change the process so it best fit the needs and desires of the council. We are going statewide and will try to address specific issues and be in dialog with our stakeholders. While each regional council is from different geographic areas, they all contain urban and rural constituents and we believe will have many issues in common. We have learned that similar situations arise both in the southwest as well in the Tidewater area. The Director stated he was most appreciative of the great turnout and cooperation of those in attendance.

Deputy Director Shawn Walker stated he has been employed by ABC for 15 years and has been involved with a number of grants and mini grants that are offered to the communities regarding alcohol and underage consumption. He stated that this was a unique effort for us and input from the group is needed, we need to know what we can do better and we will devote resources in a deliberate way. He thanked all for coming and asked that they stay in contact and give us feedback and we will pay attention.

SAC John Alexander from Richmond North gave a brief overview of his region that covers 15 counties and one city. SAC Cannon advised that he is temporarily assigned to the Richmond South Region that is comprise of five cities and 9 counties and the Education Section. He has worked for ABC for seven years. Before relocating to Richmond he worked in the Chesapeake Regional Office.

SAC Cannon then introduced SAC Leon Coleman and ASAC Clyde Santana from the Chesapeake Region and ASAC Donnie Brown from the Richmond North Region. He also introduced Bernie Bottoms Regional Manager from the Wholesale/Retail area of the department.

The representatives from the community are as follows: Robert Dawson - City of Petersburg Attorney, Hannah Killlian - Citizen, Robert Wilcox - Powhatan licensee, Dr. Sylvester Smith - Good Shepherd Baptist Church, Sgt Harold Sims - University of Mary Washington, Dr. Robin Law - VCU, Daryle Stanley - Hanover County Sheriff's Office, Krista Samuels - President Fan District Assn., William Pantele - President Richmond City Council, Dwight Hinceman - Citizen, Tara Garland - Community Development Specialist, Denise Miller - Commonwealth Parenting, John Leonard - Community Assn., Jill Hunt - Community Assn., Chuck DiNenna - Chamber of Commerce, Michelle Satterlund - Barton Heights, Steve Goodman - 501C - banquet licenses, Herman Wilkins - Citizen - retired ABC SAC, Dr. Norma Murdock-Kitt - Past President North Richmond Assn., Norma Perry - Citizen whose daughter was killed by drunk driver, Chi Yoon Chang - Licensee and George Peyton - Retail Merchant Association.

Expectations

The ABC Community Advisory Council serves as a sounding board, a source of ideas and to give honest advice on Virginia ABC services, including licensing, the hearings process and education and compliance initiatives. The council is designed to provide insight and resources to improve communication for community issues and needs, crime prevention, new laws and regulations.

Bureau Mission Statement

There are three words that describe the Law Enforcement Bureau - Integrity, Excellence and Pride. A power point presentation was given on the Bureau's structure.

Notification of Recent Decisions by Hearings Division

SAC Alexander stated that keeping alcoholic beverages away from underage people is a priority and ABC devotes considerable resources to this effort. The Enforcement Bureau recently partnered with the Henrico County Police Department on a joint underage buyer operation. In this operation law enforcement officers sent trained 17 to 19 year olds who appeared to be less than 21 into licensed establishments to attempt to purchase alcoholic beverages. This was a long running operation spanning several weeks. In this particular operation approximately 31 establishments sold to the UAB and the charges were substantiated against 30 of the establishments. A penalty of a 25-day license suspension or an option to pay a $2000 fine was imposed against most of the establishments.

The aforementioned prompted a question from the audience regarding who all gets penalized. The response was that the licensee is charged administratively and criminal liability is attached to the person who sold the alcohol. A discussion on penalties ensured. It was explained that ABC regulation -3VAC5-70-210 lists the schedule of 1st offense penalties. This allows for more consistency in penalties - with additional offenses the penalties escalate. It was also explained that mitigating circumstances do allow for departure from these set penalties.

Several attendees asked if they could be notified of upcoming hearings. Maybe ABC could compile a list of community groups that would be notified of the "sales to minor's" violators. Retired ABC SAC Herman Wilkins suggested that more media coverage would be beneficial. The Director responded that we are under marketed. The group was advised that on the previous evening one of the local TV stations did a ride along on a UAB compliance operation. The media got to see compliance checks both no sale and successful sales. We need to educate licensee regarding compliance with regard to underage alcohol. ABC conducts in excess of 700 compliance checks for the region and 4,800 a year statewide with a compliance rate of 89% and the compliance rate at ABC Stores is 99%. We are constantly training and reminding people to check identifications closely before selling alcoholic beverages. There currently is a bill in the General Assembly that will revoke the driver's license for one year of the person who purchases alcohol of underage persons.

Mr. Bob Wilcox stated there are certain times and circumstances that the sale to a UAB will happen; education is the answer. Does the Board take into consideration the training licensees have offered staff. The response was that the history of the licensee is checked, also previous violations. The number one responsibility is public safety and good communication with your agent is necessary. The Director advised that ABC has various programs RSVP (Responsible Servers VA Program and MART (Manager Alcohol Retail Training) at no charge available for all licensees. The Hearings and Appeals Division tracks charges and crunches numbers.

SAC Cannon discussed fraud and the Mixed Beverage Annual Report (MBAR) that is submitted annually. His region has been working on two cases one that failed to submit the MBAR and failed to qualify as a mixed beverage restaurant. Two charges were made and the penalty was 10-day licenses suspension or $1000 fine plus probation for a year. The second case was an applicant who failed to qualify as a mixed beverage restaurant received a 15-day suspension of their license. November through January there were 19 underage cases - charged with selling - the majority took the monetary penalty not the closure. There was discussion regarding the $2000 minimum a month for beer and wine sales and that figure is in the Code. If they fail to comply with the sales they go to a hearing and are charge administratively.

A question was asked how ABC selects who will be checked for an underage compliance operation. It was explained that a random sampling of licensees is used. We do not pick on particular licenses we check all types of licenses. Seasonal shops have a problem sometimes with the $2000 obligation and every restaurant is not successful.

Report of Trouble Locations

SAC Cannon reported that much of his regions work is in the Fan District and there they receive complaints about house parties, noise, etc. They also work in the Shockoe Slip and Bottom areas with the Richmond Police Department where the complaints usually are related to serving underage and intoxicated patrons. The Cities of Hopewell and Petersburg have calls regarding nip joints, illegal sale of alcohol and fights. The territory goes to the North Carolina border and problems in that area usually are related to persons who have crossed the state line.

SAC Alexander reported that in his region Fredericksburg and Spotsylvania have problems with gambling and Texas Holdem games at establishments. Retailers have been very creative in eliminating "pay to play" which would make the games clearly illegal. Licensed establishments in the Richmond, Henrico and Hanover have problems with area underage consumption, over service and narcotics problems. Discussion ensued regarding gambling and other illegal activity and the Director encouraged the participants to call the community criminal hot line 1-866-437-3155 if they are aware of problem establishments. A call to this line automatically generates an investigative complaint that goes directly to an agent. The agent is required to do two checks before the complaint is cleared out of the system. The Director also stated that the community does a great job reporting "bad players" but most licensees follow laws and regulations very well. Licensees receive and are encouraged to read communications from ABC. Licensees need to know offenders - drunks, drug dealer, troublemakers, etc. and not allow them to patronize their establishment.

A suggestion was made for the retail licensee newsletter to add the trade names of the violators. The response to that question was we would have to wait until the final adjudication of the case but the suggestion would be considered. It was also asked if we kept track of licensees with no sales as wells - we are looking at ways to acknowledge those businesses.

Another question from the audience dealt with problem or nuisance licenses. The vast majority of licensees are okay however a smaller population of nightclubs where hundreds of people who are all liquored up would make life more dangerous when they are leaving establishments. The Director stated that these type nuisance establishments are a high priority with ABC but we are bound by the process. He did state that having an ABC license is a privilege not an automatic right.

Ms. Evans stated the Board takes a look at public safety where license applications are concerned, and they review tenuous situations and decide when enough is enough in an area. This does not happen frequently however, the Board looks at over-saturation of licensees in an area. The Board looks at questionable situations and ways to handle.

A discussion ensured on considering changing the regulations to better define over-concentration and what is a bar vs. restaurant. The Director added that some licensees have a business model that resembles that of a nightclub but in Virginia all on-premise licensees must be a restaurant and must serve 45% food if they serve mixed drinks. Many of these issues will be addressed in an ABC subcommittee study next year at the General Assembly for better clarification of ABC laws and regulations.

Krista Samuels questioned communication with local law enforcement and asked if ABC advised when alcohol is involved with an arrest. The response was that agents have close ties with localities and are usually notified of incidents. The sharing of information insures that we get local support. We rely strongly on local police departments. Staff and agents meet with chiefs, sheriffs and deputies. They are mandated to meet and greet new officials and the relationships continue to be built. However, as with all relationships, there is always room for improvement in this area.

Rural and Local Law Enforcement Grants

ABC has created the Rural and Local Grant in an attempt to use the Community Coalition grant money for the communities instead of just passing it through to law enforcement. It is a competitive process and seven mini grants were awarded this past year for $5000 to assist with building relationships, foster better relations and we believe these grants will continue.

A question from the audience was asked about fatal crashes where alcohol is involved - were we notified or how do we get involved? The response was that agents would conduct a "source investigation". The local law enforcement does the initial investigation and then ABC would take information and investigate. If it could be proven that a licensed establishment was involved, ABC could charge the licensee administratively. Agents are responsible for their territories day and night - 24-7. House parties were discussed and the primary source for obtaining alcohol is parents. Agents investigate noise problems, they do knock and talk to obtain information, different localities use same tools and techniques to address party issues.

A power point presentation on various types of licenses and banquet events was reviewed.

The Deputy Director reviewed legislation that is being tracked at the General Assembly:

A statute to prohibit open containers in vehicles has been introduced - this has not been a state law however local ordinances prohibited the open containers in vehicles. The change in the statute will make the law uniform statewide.
A statue to change the penalty for adult providing alcohol to minor has been introduced. The penalty would take away the adult's drivers license for one year.
The privatization of ABC has been introduced again, however enforcement would not go away.
Assault against an ABC Special Agent is working it way through the process.
The ABC subcommittee of the House General Laws committee has been asked to do a study of ABC laws, practices, definitions etc. This study is due before the 2009 session.
A bill has been introduced regarding meeting places and rendezvous at retail licensed premises i.e. drug and street gangs.
The regulation of lewd and disorderly conduct has been signed and is awaiting approval. The federal court said that the definition in the Code was too broad thus the change that we are waiting approval on. At this time ABC cannot enforce the law hopefully this will be cleared up soon.
The Sangria controversy is also being addressed - at this time the law prohibits the mixing of beer and spirits into wine. Legislation has been introduced to correct that law.
A bill has been introduced to give local jurisdictions say so regarding size of containers that may be sold. A question was asked regarding alcohol pops with beer and wine and spirits mixed with energy drinks. Alcohol pops and energy drinks are geared at a younger audience. Malt beer products are alcohol-based spirits. There are different tax bases and structure. Alcohol above 21% becomes a spirit and the tax at a higher rate.

There are concerns for parents having house parties. There are criminal statutes that address the issue of underage buyers. It does not make sense parents reliving there youth through their children.

Wholesale/Retail Supervisor Presentation

Bernie Bottoms Wholesale/Retail Supervisor in the Richmond area for Wholesale/Retail gave an overview of his division. ABC on this date had 330 stores located statewide. The mission of the Wholesale/Retail Division is to increase profits and to sell to alcohol to legitimate customers who are over 21 years of age and not interdicted. Training is important and a policy is in place regarding checking all identifications for anyone under the age of 30. Store clerks are required to enter date of birth information into cash register system. The underage buyer program also is used at ABC stores. The buy rate is 1%. The A mystery shopper program is in place where a person who is 21 but looks younger goes into ABC store and to be sure that clerks are checking for appropriate identifications. Fifteen new ABC stores have been opened in the last few years, however that number will be slowing down. The Real Estate Division is remodeling older stores on a regular basis. The number of items carried in ABC Stores has increased to 2361. There is an ABC Store Sunday Sales bill at the General Assembly that will expand the opening of stores in the Richmond area on Sundays. A question was raised from the audience regarding ABC profits and the response was that after monies are distributed to the various mental health and substance abuse department's profits are distributed on a per capita basis to counties, cities and towns.

A discussion ensued regarding the unkempt location of an ABC Store on North Avenue in Richmond. Another comment from the audience was that ABC Stores were beginning to look like convenience stores with the various items for sale. The Council was again reminded to use the Crime Line 1-866-437-3155 with complaints or call Ms. Evans or Frank Monahan directly.

Denise Miller, a representative from the Commonwealth Parenting, made some remarks concerning the health and well being of teenagers. She encouraged parent awareness, listen to friends, be supportive, use resources, and get parents thinking, programs regarding the underlying substance abuse problem. She stated parents shouldn't be child's friends. Kids want to be popular, even though not legally to drink, it is the beginning of popularity. Her hope is to get parents to think differently. Denise submitted a resource page to post on our AC Web page from the Commonwealth Parenting organization.

Banquet Licenses

501-C organizations that use promotional people to run event need to be careful - they should have some a management agreement. Majority of profits should go to 501-C organization. There is a circular letter (a letter from the director to licensees) regarding this issue. Many 501-Cs are unaware that profits for events need to go to them and not an outside promoter. Unfortunately, many non-profit groups are not aware they are entering into contract/event illegally if this is not the case.

The Director thanked all for their participated and looked forward to the next meeting. The group agreed that they would like to meet twice a year as they found this meeting most informative. The Director thanked Jody Steele for a great job in the organization of this meeting and she will also be working with the other areas of the state coordinating their meetings.

The meeting was adjourned at 2:30 p.m.