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Orange County Alcoholic Beverage Control Board Agenda Item <br />Report to the County Commissioners <br />Subject: The North Carolina ABC System is Unique. <br />Meeting Date: June 16, 2009 <br />ii. Remove a Board member for causelo <br />iii. Compensate ABC Board membersll. (The ABC Board expends the <br />funding to compensate the Board members.) <br />b. Construction/remodeling contracts and related (such as architects, <br />electricians, painters, plumbers, etc.) are bid-out on a local basis. As a <br />result, local jobs are created (for example, an architect is hired locally as <br />opposed from another state). <br />c. There is better control over the books and records of the local ABC <br />Boards. Privately owned entities are not required by law to have <br />independent audits, or any type attestation or review by third parties for <br />that matter; revenues, expenses and related are often reported to the IRS <br />based on the honor system. <br />d. Net profits are distributed or spent locally; apparently, the net profits of <br />many other state systems go to the state government for re-allocation. <br />6. Disadvantages of Current NC System (this list is not intended to be all <br />inclusive or exhaustive): <br />a. If net profits earned in counties/municipalities were collected by the State, <br />they could re-distributed on a "needs" basis as opposed to the <br />"county/municipality earned" basis. <br />b. If net profit earned in counties/municipalities were collected by the State, <br />they could be applied "as needed" rather than "as intended" to fill short- <br />term or long-term budgetary needs. <br />c. If agency stores are used, it may be possible to increase selling prices of <br />spirituous beverages in certain areas of the State to off-set the high prices <br />involved with purchasing/leasing real estate. <br />7. Summary: The Control State system (local option) - it works for the citizens in <br />the same manner the citizens want it to work. <br />Attachments: <br />"A" -History of Alcohol Beverage Control in North Carolina. <br />"B" -North Carolina Local ABC Boards. <br />"C" -North Carolina Alcohol Beverage Control Distribution System. <br />10 Source: NC GS 18B-700(fl. <br />"Source: NC GS 18B-700(g). <br />Page 3 of 3 <br />