Why Virginia Lawmakers Like the State’s Liquor Monopoly
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Hint: It has something to do with money. But changes could be on the way.
In Pennsylvania last year, a legislative push to privatize state-controlled liquor sales stalled in Harrisburg. Then-Gov. Tom Corbett, who tried to hinge budget negotiations to efforts to get the Keystone State out of the business of selling booze, couldn’t overcome the “tangle of interests” that defeated previous reform efforts. (Pennsylvania’s new governor, Tom Wolf, has opposed liquor privatization.)
Reforming state-controlled liquor sales is currently on the legislative agenda in Richmond, but Virginia lawmakers pushing for changes to the Alcoholic Beverage Control Board don’t want the state to give up its revenue-generating monopoly.
“Every time we went over the numbers, we found out that having a monopoly is really cool, because you can make a lot of money,” Del. David Albo told the Richmond Times Dispatch, which reported that in the most recent fiscal year, the ABC Board brought in $140 million in profit and $250 million in taxes for the state.
But some lawmakers feel that the governance of the ABC Board should change, shifting from a state agency to an independent authority that would be make it bring state-controlled liquor sales in a more “business-like direction” and reduce the influence of political appointees on the board, state Sen. Ryan McDougle said, according to the Daily Press.
A bill sponsored by McDougle in the Senate and companion legislation in the House of Delegates would aim to do just that.
The Times Dispatch reported:
The legislation would retain a full-time, salaried board, but its members would have to have at least seven years of “demonstrated experience or expertise in the direct management, supervision, or control of a business or legal affairs.”
“They have to have real experience,” said Dennis P. Gallagher, executive director of the Virginia Beer Wholesalers Association, whose members are licensed and regulated by ABC. “They can’t just be political fundraisers.”
The board members would be appointed by the governor, subject to approval by the legislature, but they would serve staggered four-year terms to avoid complete replacement with the arrival of a new governor. They also could be removed only for cause.
Gallagher likes a structure that includes both a CEO and full-time board. “The more eyes on the page, the better,” he said.
Gov. Terry McAuliffe’s administration has not expressed whether it supports the current ABC reform efforts and according to press reports, will evaluate the legislation should it be approved by legislators.
