Orange County NC Website
Browse       Search
Orange County Alcoholic Beverage Control Board Agenda Item <br />Report to the Board of Orange County Commissioners <br />Subject: Information on other States' ABC Framework/Systems <br />Meeting Date: June 16, 2009 <br />take ownership4 of the product at some point in the transaction cycle and <br />therefore become the exclusive sellers in a particular sector of the business. <br />Please see Attachment "B" for a summary of the framework of control <br />jurisdictions with agency stores. This attachment was extracted from the National <br />Alcohol Beverage Control Association's 2008 Survey Book, page 242. <br />5. Advantages and Disadvantages of Control Systems (the reasons listed below <br />are not intended to be all inclusive or exhaustive): <br />a. Advantages: <br />i. Revenue Generated: The Control Systems generate 102% MORE <br />per gallon revenue than license states According to the study by <br />the Centre for Addition and Mental Health titled Retail Alcohol <br />Monopolies: Preserving the Public Interest, "monopolies generate <br />more state revenue than license states". <br />ii. Social Costs Reduced: <br />1. The Control States consume 15.8% LESS distilled spirits <br />than license states. <br />a. Control States: 1.6 gallons per capita (spirits). <br />b. License States: 1.9 gallons per capita (spirits). <br />2. According to the report by Thomas Bador et al, Alcohol: <br />No Ordinary Commodity, "monopoly systems limit alcohol <br />consumption and alcohol related problems". <br />iii. Lives Saved: The Control Systems experience 9.3% LESS under 21 <br />impaired drivin~ deaths than license states. According to a recent <br />study by PIRE titled, Impact of Retail Alcohol Monopolies on <br />Underage Drinking, "lower consumption rates in the control states <br />were associated with a 9.3% reduction in the impaired driving <br />death rate of drivers under 21 in control states versus non-control <br />states". <br />b. Disadvantages: <br />i. License states usually have more retail outlets. <br />Attachments: <br />"A" -Lists of Control Jurisdictions and License Jurisdictions. <br />"B" -Control States with Agency Stores. <br />a This sentence is attributable to the Pacific Institute for Research & Evaluation pamphlet entitled "'The <br />Effects of Privatization of Alcohol Control Systems", publication date unknown. It should be noted that the <br />NC ABC Commission takes possession of the products upon delivery to the warehouse, but it does not <br />take ownership of the products. The individual ABC Boards pay each distiller directly within 30 days of <br />delivery. <br />s Advantages of Control States -Source: Prepared by the National Alcohol Beverage Control Association, <br />The ABC's of Alcohol Beverage Control, undated (received by the OC ABC Board 5/28/2009). <br />6 PIRE is the Pacific Institute for Research & Evaluation, date of the "recent study" is unknown. <br />Page 3 of 3 pages <br />