Get the State Out of the Liquor Business

It's high time to privatize the sale and distribution of alcoholic beverages in Alabama. The Alabama ABC Board was created by the legislature in 1937 on the heels of Prohibition. In addition to licensing and enforcement, the ABC Board distributes and sells alcoholic beverages to retailers and the general public. In 2003, it ran 140 stores - 62 retail only, 75 wholesale/retail, and 3 wholesale only - employing 541 people. The gross revenues generated by its Product Management Bureau in fiscal year 2002-2003 were $274 million*.

It is beyond question that there is a need for strict government control of alcohol sales and distribution. Alcohol is one of the most used and abused drugs on the planet. Its abuse has contributed to a plethora of social ills ranging from obnoxious behavior to DUI-related auto accidents. Its economic impact probably isn't measurable, but there is no doubt that it can be attributed to a significant loss in productive hours among wage-earners.

That said, it is doubtful that the state needs to own a chain of liquor stores in order to adequately control the sale of alcohol. Strict regulation and enforcement would address concerns that privatization would foster greater consumption or abuse. Neighboring Tennessee, Florida, and Georgia could serve as examples - none of them have "state stores" that sell liquor. Alabama should embrace the free enterprise system and sell off its socialized liquor outlets.

* Source: ABC Board Annual Report 2002-2003.