Two different kinds of events prompted this session’s interest in, and reform of, the state’s alcoholic beverage control system. First, in 2008 the legislature’s new program evaluation division issued a report on the state ABC system emphasizing the large number of local ABC boards, the fiscal difficulties of many local systems, and the limited control of the state ABC Commission over local operations. The report noted that some communities were voting to establish ABC stores because that was a prerequisite to having liquor-by-the-drink, and that the newer ABC systems tended to simply siphon business from other nearby systems.
The other trigger for the interest in ABC reform was the publicity given to several mishaps in operation of local systems, most notably in Mecklenburg and New Hanover counties. The Mecklenburg dust-up was over a lavish holiday meal a liquor broker hosted for county ABC board members and employees. In New Hanover, the issue was the $270,000+ compensation paid to the local system manager and the employment of one of his sons. Those cases brought attention to the limited authority the ABC Commission and the county commissioners had over the county ABC boards. And they came at a time when the ethics of public officials and employees was an important issue for the General Assembly because of other scandals.
In early 2010 the legislative leadership created a special joint committee to consider the ABC issues, and it was that body’s work that resulted in Session Law 2010-122 (House Bill 1717).
