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SALT LAKE CITY — Lawmakers took another critical look at the Department of Alcoholic Beverage Control on Wednesday amid reports that the department's executive director will resign.
Dennis Kellen, the executive director of DABC who has been with the agency that controls liquor sales in the state for decades, was on an overseas vacation and could not be reached for comment.
Last month, he met with Gov. Gary Herbert about the audit and said afterward he did not offer to resign.
But there was talk on Capitol Hill Wednesday that Kellen will step down at next week's DABC Commission meeting following a controversial legislative audit showing that a privately run package liquor agency lost $300,000.
The audit, released last month, was reviewed by the Senate Business and Labor Committee, but members decided to wait until July to question the department after the meeting went longer than expected.
Having served with the department of alcohol, and understanding the rapidly changing demographics of our state... we have a much more diverse society than we had 10-15 years ago.
–- Sam Granato, Outgoing DABC Commission Chairman
The committee did ask the legislative auditors about a number of issues raised in the audit, which concluded "poor management and oversight" led to the state's losses, including not informing the DABC commission of problems with the now-closed liquor outlet in Eden.
Rep. Derek Brown, R-Cottonwood Heights, wondered aloud why the state was even in the liquor business before suggesting that the agency needs to put better checks and balances in place.
John Freeman, the department's deputy director of operations, told the committee safeguards have been put in place to ensure the situation will not be repeated. Those safeguards, he said, include naming a staffer to oversee only the state's 119 package agencies, the privately run outlets located mainly in less-populated areas.
Outgoing DABC Commission Chairman Sam Granato is said to be vying for the executive director's job. Granato declined to say Wednesday whether he expected to be appointed by the commission, which is required to consult with Herbert before naming an executive director.
Herbert already has named Granato to serve on the Board of Business and Economic Development. The Senate, which withheld a vote on the appointment last month because of the audit, confirmed Granato to the position 27-0 Wednesday without debate.
There were few questions for Granato at his confirmation hearing earlier Wednesday, and none about the audit.
Members of the Senate Business and Labor Confirmation Committee were more interested in Granato's views on economic development. He told the committee that the state needs to share "the great values we have to offer" through better communication, especially with those unfamiliar with Utah.
"Having served with the department of alcohol, and understanding the rapidly changing demographics of our state," Granato said, he sees "that we have a much more diverse society than we had 10-15 years ago."
He said the economic development office should let the world know the state is customer friendly. "We know who we are and we just need to spread that message a little better, and a little plainer."
The DABC initially planned to close several liquor stores throughout the state because of the cuts. But those closures have been put off pending an analysis of the department's operations.
Even before the legislative audit, there was plenty of friction between lawmakers and the DABC, particularly Granato. He had criticized the Legislature for cutting the department's budget, warning that could reduce state revenues.
The DABC initially planned to close several liquor stores throughout the state because of the cuts. But those closures have been put off pending an analysis of the department's operations.
Bonneville Research, headed up by former Democratic gubernatorial candidate Bob Springmeyer, has been hired to do the analysis that is expected to be completed by Oct. 1.
The analysis will look at how the department's operations have grown, Springmeyer said, and "how they organize their stores, where their stores are located, and some clear and transparent ways to evaluate store performance."
Email:lroche@ksl.com
