Liquor law changes approved by NC house panel (Associated Press)
RALEIGH, N.C. — Local ABC boards would have to meet financial and customer service standards in its liquor sales or they could face closure, and all its members would be subject to a gift ban and other ethics rules in legislation approved Tuesday by a state House panel.
The bill that left the House’s Alcoholic Beverage Control Committee went beyond the recommendations of a special study commission completed last month before the session began. The state ABC Commission also would receive more power to monitor the activities of the local, largely independent boards that sell liquor in cities or counties.
The study commission examined the ABC rules following news reports about the high salaries of local board administrators and meals paid for by liquor companies to local ABC leaders. Gov. Beverly Perdue had sought changes, too.
“It puts the ABC Commission in a new role in providing more direct oversight and setting performance standards,” said state commission Chairman Jon Williams. a Perdue appointee. “All told, it looks like that we will emerge with a much stronger, more reliable ABC system and the public will have more assurance these public enterprises are run with the high ethical standards that the public deserves.”
North Carolina is among 18 “control” states where government directly controls wholesale and retail liquor distribution, but it’s the only one where local ABC boards sell the spirits and essentially run their own operations.
The measure went beyond the study commission’s recommendations to require the state’s nearly 170 local ABC boards to create their own ethics codes. It also would prohibit local board members from accepting gifts from contractors doing business with their panel or stores and to avoid conflicts of interest that could financially benefit themselves or family members.
Each local board would be subject to performance standards set by the state ABC Commission, including store operating efficiency, solvency and customer service and enforcement of the alcohol laws. Lawmakers avoided the word “profitability” although some poorly performing stores don’t make money. Other lawmakers and advocates of the current system argue the purpose of the nearly 75-year-old ABC system and its more than 400 stores is to control liquor sales, not to make a profit.
The state ABC Commission could close stores or force a local board to merge with one nearby if standards aren’t met, but the local board could have up to 20 months to fix the problems. An amendment offered by Rep. Pryor Gibson, D-Anson, raised that period of time from 12 months.
“On balance, having more time is a very important part of the proposal,” said Jon Carr, lobbyist for the North Carolina Association of ABC Boards. “We’d ask for time to improve.”
Rep. Edgar Starnes, R-Caldwell, said 12 months was already enough time: “If you don’t meet your performance standards, there needs to be a consequence.”
The measure, which now goes to another House committee, would require local boards to follow the same rules local governments do in carrying out their annual budgets, including making their spending proposals public records. Local boards also would have to hold a public hearing before it can be adopted.
The bill also would:
_ limit the compensation of local ABC general managers to the pay that local Clerks of Superior Court receive, up to $112,607 in the most populous counties. But pay can go higher if a county commission or town council approves it.
_ prohibit an employee from having direct supervision over a family member in a local ABC board.
The two changes are in response to reports that the father-and-son store administrators in New Hanover County received more than $400,000 in combined compensation.
By GARY D. ROBERTSON , 06.09.10, 08:15 AM EDT
