Perdue: Private liquor stores would operate as concessions

Gov. Bev Perdue has told legislative leaders that if they decide to privatize the state's ABC system -- either ABC stores, the wholesale and distribution, or both -- then the developing stores or wholesalers would be concessionaires for a fixed period of time. They may also be allowed to renew their terms.

In a letter to legislative leaders, Perdue said she was concerned about a number of ABC issues, including ethical performance and business operations. "It has become very clear to me that ethical standards, operations, control and oversight of local ABC boards and stores must be strengthened. I have set and enforced the highest standards for openness and transparency of any administration in our state’s history. I expect that those high standards will be upheld down to the local level if state government has any responsibility or oversight for actions and standards at the local level," she said.

Perdue also said she wants a close look at the financial side of ABC system changes. "In order to fully grasp the implications and opportunities associated with privatization, we must have a very clear understanding of the revenue the state may derive, and possibly forego, as a result of selling a concession to private interests. She has ordered up an analysis by a valuation firm to help determine the best course. But if the state does privatize any or all of the system, she said, there are three elements she wants in any such plan:¬


"1) If local ABC Boards remain in the business of selling liquor, ABC Boards and their employees will have more stringent ethical standards, they will be more accountable to and under more direct control by the state.
"2) North Carolina will remain a “control” state. If we opt to privatize any part of the ABC system, it will only do so through the sale of a concession for a limited period of time, which may be renewable.
"3) Any fees paid to the state from the sale of any part of the ABC system must be used to fund critical, long-term investments in our people and our state – not to fill current or near-term budget shortfalls."

It's not knowable, of course, if the state of North Carolina will make this big change in the way alcohol is sold. It's worth noting that if the change does occur on Perdue's watch, it will be at least the second significant cultural change in the state due to her influence. The first was creation of the state lottery, which went forward after she cast a tie-breaking vote as lieutenant governor and presiding officer of the Senate to create what is now the N.C. Education Lottery.