The ABCs Of State Liquor Control

-Submitted by David Drumm (Nal), Guest Blogger

We have previously discussed the socialistic nature of state liquor boards even in conservative states. Radley Balko takes exception to the “salvo” at conservatives and links to two states, Virginia and Pennsylvania, wherein he claims Republicans are trying to privatize their state’s liquor business, while Democrats oppose their efforts.

Alcohol distribution uses a three-tier system: producers, distributors, and retailers. Eighteen states exert varying degrees of control over the three tiers, and, in some states, the control depends on the alcohol content of the beverage.

The political nature of each state’s liquor control is:

• Alabama: Both legislative houses controlled by Republicans, Governor – Republican.
• Idaho: Both legislative houses controlled by Republicans, Governor – Republican.
• Iowa: Senate controlled by Democrats, House controlled by Republicans, Governor – Republican.
• Maine: Both legislative houses controlled by Republicans, Governor – Republican.
• Maryland: Both legislative houses controlled by Democrats, Governor – Democrat.
• Michigan: Both legislative houses controlled by Republicans, Governor – Republican.
• Mississippi: Both legislative houses controlled by Republicans, Governor – Republican.
• Montana: Both legislative houses controlled by Republicans, Governor – Democrat.
• New Hampshire: Both legislative houses controlled by Republicans, Governor – Democrat.
• North Carolina: Both legislative houses controlled by Republicans, Governor – Democrat.
• Ohio: Both legislative houses controlled by Republicans, Governor – Republican.
• Oregon: Senate controlled by Democrats, House equally divided, Governor – Democrat.
• Pennsylvania: Both legislative houses controlled by Republicans, Governor – Republican.
• Utah: Both legislative houses controlled by Republicans, Governor – Republican.
• Vermont: Both legislative houses controlled by Democrats, Governor – Democrat.
• Virginia: Senate equally divided, House controlled by Republicans, Governor – Republican.
• West Virginia: Both legislative houses controlled by Democrats, Governor – Democrat.
• Wyoming: Both legislative houses controlled by Republicans, Governor – Republican.

In half of the states that exercise government control over alcohol sales, Republicans control both the legislature and governorship.

Of the two states Balko cites, Virginia Governor McDonnell got resistance for his original proposal from “Democrats and some Republicans” who lamented the inevitable loss of much needed state revenue. The original proposal would have brought in $47 million less each year than the current system.

In the Pennsylvania citation, the proposal is far from a paragon of free enterprise. Under Governor Corbett’s plan, Pennsylvania would go from a state-controller of liquor stores to a state-licenser of liquor stores. In Pennsylvania, Republicans control both houses of the legislature and the governorship. In such a situation, not assigning responsibility to Republicans for the lack of even this minimum level of privatization, is unconscionable.

In non-conservative Democratic Washington state, a voter approved Initiative-1183 recently privatized their state liquor store system, replacing it with a licensing system. The promise of lower prices through competition has yet to be realized as liquor prices have risen.

H/T: Ballotpedia, The Seattle Times.