North Carolina: A Moral Duty to Keep Our Liquor System
Published: Thursday, February 11, 2010, By Gary Pendleton
Source: NewsObserver.com
Reproduction of article first published on NewsObserver.com
Following the repeal of Prohibition, in 1937 North Carolina established the N.C. Alcoholic Beverage Control Commission, and along with 18 other states became what is now known as a "controlled" state, whereby the state controls the sale of alcohol.
In some states the controlled substance may be beer, wine and liquor; in some states it may be just liquor; and in others it may be liquor and wine or just the distribution process. All other states are basically wide open.
To illustrate the control aspect, note that in Wake County there are 23 liquor stores. With our county population, if we were using South Carolina, Georgia and Tennessee's model, we would have 400 liquor outlets. In the states that are controlled, generally, driving while impaired charges and alcoholism are about 10 percent lower than in non-controlled states.
As a private business owner, I have always favored privatizing those businesses that could be privatized, because the government cannot run a business as effectively as the private sector. But in the mater of alcohol, I take a moral stand that the last thing we need is to make it easier for someone to get alcohol. Therefore, I like our system.
I previously served on the board of directors of the National Alcohol Beverage Control Association, Inc., headquartered in Washington. This is the organization of the 19 controlled states. Among the many things I learned is that North Carolina is the only controlled state that, statewide, has locally owned liquor stores; the state owns none of our stores (they are owned by the local ABC systems).
We have two systems in North Carolina, a municipal system and a county system. For example, Guilford County never passed a countywide referendum that allowed sales through liquor stores, so Guilford County does not have countywide sales. High Point and Greensboro, which are in Guilford County, have municipal systems. Wake County has a countywide system.
At ABC stores in Wake County, patrons do not have to worry about loud music or trouble in the parking lots. The same cannot be said for liquor store outlets in some other states.
The liquor companies ship their products to the state's central warehouse in Raleigh, then the local boards order it and the state's contractor, LB&B, ships it to ABC outlets. The state sets the prices for the list of approved liquors. If certain liquors are not on the state-approved list, they can be special-ordered by a case of six bottles.
Wake County's board has the highest level of profits, generally about 17 percent per year, and is a governmental entity. The board distributes profits to 14 municipalities in the county and to numerous nonprofits such as the Raleigh Rescue Mission and The Healing Place. Money also goes to Wake County government and for law enforcement. State law requires that profits be given for law enforcement (a minimum of 5 percent) and substance abuse (alcohol and drugs) education, treatment or research (minimum of 7 percent).
All of the profits are going back to the local economy in Wake County. Approximately $5.5 million and $3.6 million are given to the local governments and nonprofits, respectively, each year. If the system is privatized, the residents of our county would miss out on benefits the profits can provide.
In some states the controlled substance may be beer, wine and liquor; in some states it may be just liquor; and in others it may be liquor and wine or just the distribution process. All other states are basically wide open.
To illustrate the control aspect, note that in Wake County there are 23 liquor stores. With our county population, if we were using South Carolina, Georgia and Tennessee's model, we would have 400 liquor outlets. In the states that are controlled, generally, driving while impaired charges and alcoholism are about 10 percent lower than in non-controlled states.
As a private business owner, I have always favored privatizing those businesses that could be privatized, because the government cannot run a business as effectively as the private sector. But in the mater of alcohol, I take a moral stand that the last thing we need is to make it easier for someone to get alcohol. Therefore, I like our system.
I previously served on the board of directors of the National Alcohol Beverage Control Association, Inc., headquartered in Washington. This is the organization of the 19 controlled states. Among the many things I learned is that North Carolina is the only controlled state that, statewide, has locally owned liquor stores; the state owns none of our stores (they are owned by the local ABC systems).
We have two systems in North Carolina, a municipal system and a county system. For example, Guilford County never passed a countywide referendum that allowed sales through liquor stores, so Guilford County does not have countywide sales. High Point and Greensboro, which are in Guilford County, have municipal systems. Wake County has a countywide system.
At ABC stores in Wake County, patrons do not have to worry about loud music or trouble in the parking lots. The same cannot be said for liquor store outlets in some other states.
The liquor companies ship their products to the state's central warehouse in Raleigh, then the local boards order it and the state's contractor, LB&B, ships it to ABC outlets. The state sets the prices for the list of approved liquors. If certain liquors are not on the state-approved list, they can be special-ordered by a case of six bottles.
Wake County's board has the highest level of profits, generally about 17 percent per year, and is a governmental entity. The board distributes profits to 14 municipalities in the county and to numerous nonprofits such as the Raleigh Rescue Mission and The Healing Place. Money also goes to Wake County government and for law enforcement. State law requires that profits be given for law enforcement (a minimum of 5 percent) and substance abuse (alcohol and drugs) education, treatment or research (minimum of 7 percent).
All of the profits are going back to the local economy in Wake County. Approximately $5.5 million and $3.6 million are given to the local governments and nonprofits, respectively, each year. If the system is privatized, the residents of our county would miss out on benefits the profits can provide.
Gary Pendleton, former chairman of the Wake County Board of Commissioners, is former chairman of the Wake ABC Board.
