State ABC system debate continues

This afternoon, the State Government and State Personnel Committee continued the debate on House
Bill 1717, the House version of the ABC system “modernization” bill.

The Proposed Committee Substitute (PCS) amended version of the original
bill contains 29 sections of regulations.  There are all kinds of ethical regulations, strict
budgeting guidelines, transparency standards, performance standards
with audits, rules for starting new stores, and wine distribution
protections.  Representative Ray Warren, bill sponsor, presented the bill.

There was the following response from committee members:

• Representative Laura Wiley questioned if there is any regulation of gifts.  The answer was yes, the bill gives guidelines and disclosure rules.

• Representative Justin Burr offered an amendment to change the 2-page title back to shorter one in the original bill (which restricts amendments on the floor).  The amendment passed by a
  unanimous voice vote.

These were the comments from the public:

• John Williams, chair of the ABC Commission, stated that the bill is lengthy and a product of long
  discussion of specific problems that have surfaced over the last couple
  of years.  There was been discontent between local ABC Boards, local boards, and
  local government and it is necessary to connect them all again.

• Jon Carr, ABC Boards lobbyist agreed with Williams and said, “meals and
  salaries were not widespread across the state”. He liked that the bill is balanced.

• Reverend Mark Creech, Christian Action League, spoke again of new ABC
  stores determined by population threshold. He believes the thresholds
  are too low, but doesn’t want the system privatized.

• Rep Larry Womble wanted to know what the new bill does that is different
  from the original. The response was that it provided greater oversight, more regulation, accountability
  to the public, more transparency and requires reports and audits. Also, the bill generates $700 M every
  year.

• Womble also wanted to know why there was a need for the PCS?  The response was that it comes from study recommendations and then changes negotiated between ABC Boards, League
  of Municipalities, and Association of County Commissioners. Representative Warren says not everybody is happy but they are all willing to go along with it.

• There were also additional questions about elections for mixed beverage permits and additional stores in smaller communities. Representative Wiley asks about 500 voter thresholds to issue mixed beverage
  licenses.  Representative Warren says they ran into opposition and had to lower the
  threshold in order to get the bill through.

The new PCS bill, as amended, passed by unanimous voice vote.  Next, the bill goes to the House floor for debate and vote. In the meantime, the Senate bill is also still moving.