Panel to study reforms to state ABC system

The state’s two highest-ranking legislative leaders this morning ordered a newly-formed panel to examine ways to reform the state Alcoholic Beverage Control system, including the possibility of privatization.

The formation of the committee marked the legislature’s clearest step so far toward overhauling the complex system by which liquor is sold in the state. The move also emphasized the seriousness with which lawmakers are considering turning over the booze business to private retailers.

The quest for reform follows embarrassing revelations about expensive, liquor company-funded meals for the local ABC board chair and several staff members in Mecklenburg County and the disclosure of plump salaries paid to top staffers in coastal New Hanover County. Parks Helms resigned as Mecklenburg ABC board chair last month, as did Calvin McDougal, the CEO.

“We already know that we need more accountability and ethics reform in the ABC system,” said Senate President Pro Tem Marc Basnight in a prepared statement. “What we need to explore further is what is working now and what we can improve.”

Basnight and House Speaker Joe Hackney announced that the committee will be co-chaired by state Rep. Ray Warren, who represents portions of Alexander and Caldwell counties, and state Sen. Don Vaughan, of Guilford County. At least eight leaders from the Charlotte region will sit on the panel.

Top state officials, including Gov. Bev Perdue, have called for tighter control over the state liquor system, including setting stringent ethics and gift policies and more oversight of the 163 local ABC boards across the state, which operate the liquor stores. The state ABC Commission handles liquor law violation cases and operates the warehouse through which liquor stores buy their bottles, but the commission has virtually no authority over operation of the stores.

The new committee is expected to make recommendations to the General Assembly before the start of the legislative session in May.

The group is expected to examine eight broad areas, including: the need for consistency across the state in ABC board rules, structures and ethical standards, and the amount of distribution of revenues from the ABC system.

It also will examine the possibility of privatization and its potential effects and cost savings.