Community | February 13, 2010 | 0 comments

Privatization of Booze: States Weigh Getting Out of the Liquor Business

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As states scramble to deal with gaping budget deficits, many are looking for any opportunity to increase revenue, and Washington is one of a handful of states weighing whether privatizing liquor sales is the way to get back into the black.
(AP, 2010, February, 7, para. 3)

"To me this isn't a core function of government," said Sen. Rodney Tom, a Medina Democrat who is a chief budget writer for the Senate. "It's a retail operation. Private companies can do it as good or better."
(AP, 2010, February, 7, para. 5)

Tom has introduced a bill that would have Washington get completely out of the liquor business, allowing an unlimited number of people to buy licenses to sell liquor, as is done in California. Other lawmakers have introduced measures taking smaller steps toward privatization, including bills that would auction off franchise agreements for stores like Costco, or which would allow a limited number of smaller contract stores to sell booze.
(AP, 2010, February, 7, para. 6)

The five states [Washington, Vermont, North Carolina, Mississippi, and Virginia] are among 18 so-called "control" or "monopoly" states, which exercise broad powers over wholesale liquor distribution. Of those states, only eight — including Washington, Virginia and North Carolina — also are involved in retail alcohol sales, Schmidt said. Thirty-two states are license states, where the private sector handles wholesale distribution.
(AP, 2010, February, 7, para. 11)


Many details at the link:
http://www.msnbc.msn.com/id/35283605/ns/business-consumer_news/
  1. groups:
    Community,   The Retail Sector
  2. tags:
    Alcohol Liquor Privatization State Government
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