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RALEIGH The state's top liquor regulator on Wednesday proposed shrinking the number of local ABC boards in the state through mergers and putting them under the thumb of county governments. Local elected officials would have to answer for how well their liquor stores operate.
Jon Williams, chairman of the state ABC Commission, also recommended allowing private retailers to sell liquor in areas where there is not enough business to support a profitable ABC store.
Williams' proposals add to the momentum for some overhaul to the 70-plus year-old, patchwork system of selling liquor in North Carolina. He made his report to Gov. Bev Perdue's Budget Reform and Accountability Commission, which is expected to recommend changes that Perdue can offer to the legislature.
Both Perdue's budget group and a special committee appointed by legislative leaders are exploring the possibility of privatizing the ABC system, and Perdue has commissioned an outside study of the system's value if it were sold.
The liquor reform push follows waves of criticism and resignations from the ABC boards in Mecklenburg and New Hanover counties.
Joe Wall, executive director of the N.C. Association of ABC Boards, said forcing boards to merge easily could force very profitable boards to absorb boards barely making money.
"The (local ABC) boards that were well run were saying it was like a shotgun wedding," Wall said, "making us take on a board that's doing badly. They said it's more likely to drag us down."
Former Sen. Tony Rand, now chair of the state parole board and a budget reform commission member, sounded incredulous that some stores didn't turn a profit.
"It's hard to lose money selling liquor, isn't it?" Rand asked.
Williams replied: "No, sir," adding that some stores are approved by voters in areas with not enough population to support the business.
Williams offered a menu of changes that the budget commission could include in whatever package of reforms they send to Perdue, including:
Reducing the 163 local ABC boards to no more than 100, one per county, or fewer if forming regional boards would be more efficient. Some counties have multiple boards, with many operating only one liquor store. New stores sometimes cannibalize business from old ones.
Absorbing ABC boards into local government. Boards currently are appointed by city councils or county commissions, so board members do not directly answer to voters.
Creating "agency stores," which are private retailers, such as a grocery or drug store. They would be given permits to sell liquor on behalf of a local ABC board in areas where a stand-alone liquor store wouldn't do enough business to be profitable. North Carolina is one of only four states with exclusively government-run stores.
