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Alcoholic beverage control state

Alcoholic beverage control state

Overview
Alcoholic beverage control states, generally called control states, are those in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 that have state monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...

 over the wholesaling and/or retailing of some or all categories of alcoholic beverage
Alcoholic beverage
An alcoholic beverage is a drink containing ethanol, commonly known as alcohol. Alcoholic beverages are divided into three general classes: beers, wines, and spirits. They are legally consumed in most countries, and over 100 countries have laws regulating their production, sale, and consumption...

s, such as beer, wine, and distilled spirits.
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Encyclopedia
Alcoholic beverage control states, generally called control states, are those in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 that have state monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...

 over the wholesaling and/or retailing of some or all categories of alcoholic beverage
Alcoholic beverage
An alcoholic beverage is a drink containing ethanol, commonly known as alcohol. Alcoholic beverages are divided into three general classes: beers, wines, and spirits. They are legally consumed in most countries, and over 100 countries have laws regulating their production, sale, and consumption...

s, such as beer, wine, and distilled spirits.

History


At the beginning of the temperance movement
Temperance movement
A temperance movement is a social movement urging reduced use of alcoholic beverages. Temperance movements may criticize excessive alcohol use, promote complete abstinence , or pressure the government to enact anti-alcohol legislation or complete prohibition of alcohol.-Temperance movement by...

 in the United States, many states controlled where and when alcohol could be sold. Before this time, most alcoholic beverages for off-premises consumption were often sold just like any other item of commerce in stores or in saloons/bars. Because of heavy lobbying by temperance groups in various states, most required off-premise beverages to be sold in dedicated stores (primarily called dispensaries). To further enhance oversight of beverage sales, some states such as South Carolina
South Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...

 operated state-run dispensaries.

Following repeal
Repeal
A repeal is the amendment, removal or reversal of a law. This is generally done when a law is no longer effective, or it is shown that a law is having far more negative consequences than were originally envisioned....

 of national prohibition
Prohibition
Prohibition of alcohol, often referred to simply as prohibition, is the practice of prohibiting the manufacture, transportation, import, export, sale, and consumption of alcohol and alcoholic beverages. The term can also apply to the periods in the histories of the countries during which the...

 in the U.S. in 1933, some states initially decided to continue their own prohibition against the production, distribution, and sale of alcoholic beverages within their borders. Other states decided to leave the issue to local jurisdictions, including counties and cities, a practice called local option
Local Option
Local Option is a term used to describe the freedom whereby local political jurisdictions, typically counties or municipalities, can decide by popular vote certain controversial issues within their borders. In practice, it usually relates to the issue of alcoholic beverage sales...

.

States were also able to restrict the importation of "intoxicating liquors" into their territory under the provisions of the Twenty-first Amendment to the United States Constitution
Twenty-first Amendment to the United States Constitution
The Twenty-first Amendment to the United States Constitution repealed the Eighteenth Amendment to the United States Constitution, which had mandated nationwide Prohibition...

 which, while ending the Federal role in alcohol control, exempted liquor from the Constitutional rule reserving the regulation of interstate commerce to the Federal government. Thus states which wished to continue Prohibition could do so.

Among those states that did not choose to maintain complete prohibition, some chose to establish government monopolies over the sale of alcoholic beverages within their borders. Most of these states have an Alcoholic Beverage Control (ABC) board and run package stores called ABC stores.

Reasons for doing this vary; for example, the Utah Department of Alcoholic Beverage Control
Utah Department of Alcoholic Beverage Control
The Utah Department of Alcoholic Beverage Control is an agency of the government of the U.S. state of Utah. It has its headquarters in Salt Lake City....

 states that:
The purpose of control is to make liquor available to those adults who choose to drink responsibly - but not to promote the sale of liquor. By keeping liquor out of the private marketplace, no economic incentives are created to maximize sales, open more liquor stores or sell to underage persons. Instead, all policy incentives to promote moderation and to enforce existing liquor laws is enhanced.


Beginning in the 1960s onward, many control states loosened their monopoly of beverage sales. States like West Virginia
West Virginia
West Virginia is a state in the Appalachian and Southeastern regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, Pennsylvania to the northeast and Maryland to the east...

 sold all of their state liquor stores to private owners, while others like Vermont
Vermont
Vermont is a state in the New England region of the northeastern United States of America. The state ranks 43rd in land area, , and 45th in total area. Its population according to the 2010 census, 630,337, is the second smallest in the country, larger only than Wyoming. It is the only New England...

 permit private store owners to sell alcohol on behalf of the state for a commission.

Modern stores


There are currently 21 monopoly states in the U.S.. The term "control state" is popular but ambiguous, since all states control and regulate the sale of alcohol to some degree. Only 21 states are monopoly states, and the term "control state" frequently refers to these 21 states in particular. The extent to which this monopoly extends differs from state to state. Out of the 21 states that regulate alcohol wholesaling, only nine (Alabama, Idaho, New Hampshire, Oregon, North Carolina, Pennsylvania, Virginia, Washington, and Utah) run liquor establishments. The others either permit ABC licensed private stores to sell liquor or contract the management and operations of the store to private firms, usually for a commission.

In all of these control states, some form of low-alcoholic beverages are available in private retail outlets for off-premise consumption. Most of these states require private retail outlets to have a license issued by the ABC board (usually called an ABC off License). Similar licensure procedures apply for acquiring an on-premise license.

Use of the term "alcoholic beverage control" by a state does not make it a "control" (or monopoly) state. For example, Arkansas
Arkansas
Arkansas is a state located in the southern region of the United States. Its name is an Algonquian name of the Quapaw Indians. Arkansas shares borders with six states , and its eastern border is largely defined by the Mississippi River...

 uses "Alcoholic Beverage Control" or "ABC" to refer to its state agencies that regulate alcohol sales; yet all alcohol sales (wholesale and retail) in those communities that allow it are by private firms. Though Arkansas (like most states) generally limits the number of retail outlets in an area, outlets within those limits are free to compete. Therefore, Arkansas is a local option
Local Option
Local Option is a term used to describe the freedom whereby local political jurisdictions, typically counties or municipalities, can decide by popular vote certain controversial issues within their borders. In practice, it usually relates to the issue of alcoholic beverage sales...

 state, but it is not a "control" (or monopoly) state.

Many "control" (or monopoly) states are members of the National Alcohol Beverage Control Association
National Alcohol Beverage Control Association
The National Alcohol Beverage Control Association [NABCA] was established in 1938 as the nationwide organization representing the interests of alcoholic beverage control states or monopoly sale states in the United States...

.

State listing


The 21 control or monopoly states as of 2011 are:
  1. Alabama
    Alabama
    Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...

     (Liquor stores are state-run or on-premise establishments with a special off-premise license.)
  2. Idaho
    Idaho
    Idaho is a state in the Rocky Mountain area of the United States. The state's largest city and capital is Boise. Residents are called "Idahoans". Idaho was admitted to the Union on July 3, 1890, as the 43rd state....

     (Maintains a monopoly over sales of beverages with greater than 16% ABV
    Alcohol by volume
    Alcohol by volume is a standard measure of how much alcohol is contained in an alcoholic beverage .The ABV standard is used worldwide....

    .)
  3. Iowa
    Iowa
    Iowa is a state located in the Midwestern United States, an area often referred to as the "American Heartland". It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state at the time of European exploration. Iowa was a part of the French colony of New...

     (Does not operate retail outlets. Passed a bill in March 2010, allowing high-proof beer to be privately distributed.)
  4. Maine
    Maine
    Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost...

     (State-contracted to private businesses for commission)
  5. Maryland
    Maryland
    Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...

     (Under state law the counties of Montgomery
    Montgomery County, Maryland
    Montgomery County is a county in the U.S. state of Maryland, situated just to the north of Washington, D.C., and southwest of the city of Baltimore. It is one of the most affluent counties in the United States, and has the highest percentage of residents over 25 years of age who hold post-graduate...

    , Somerset
    Somerset County, Maryland
    -2010:Whereas according to the 2010 U.S. Census Bureau:*53.5% White*42.3% Black*0.3% Native American*0.7% Asian*0.0% Native Hawaiian or Pacific Islander*1.7% Two or more races*1.5% Other races*3.3% Hispanic or Latino -2000:...

    , Wicomico
    Wicomico County, Maryland
    As of the census of 2010, there were 98,733 people, 37,220 households, and 24,172 families residing in the county. The population density was 261.7 people per square mile . There were 41,192 housing units at an average density of 109.2 per square mile...

     and Worcester
    Worcester County, Maryland
    -2010:Whereas according to the 2010 U.S. Census Bureau:*82.0% White*13.6% Black*0.3% Native American*1.1% Asian*0.0% Native Hawaiian or Pacific Islander*1.7% Two or more races*1.3% Other races*3.2% Hispanic or Latino -2000:...

     are county alcohol controlled which mandates that off-premise liquor sales are to be conducted only at county owned and operated dispensaries/stores. One exception exists in Montgomery County, four grocery stores had their licenses grandfathered prior to the change of the law. Until recently Dorchester
    Dorchester County, Maryland
    Dorchester County is a county located in the U.S. state of Maryland on its Eastern Shore. It is bordered by the Choptank River to the north, Talbot County to the northwest, Caroline County to the northeast, Wicomico County to the southeast, Sussex County, Delaware, to the east, and the Chesapeake...

     County was an alcohol control county until the County Council voted to permanently shutter the county owned liquor dispensaries.)
  6. Michigan
    Michigan
    Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....

     (Does not operate retail outlets; maintains a monopoly over wholesaling of distilled spirits only.)
  7. Minnesota
    Minnesota
    Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...

     Some cities (notably Edina
    Edina, Minnesota
    Edina is a city in Hennepin County, Minnesota, United States, and a first-ring suburb situated immediately southwest of Minneapolis. Edina began as a small farming and milling community in the 1860s. The population was 47,941 at the 2010 census.-Geography:...

    ) have control sales.
  8. Mississippi
    Mississippi
    Mississippi is a U.S. state located in the Southern United States. Jackson is the state capital and largest city. The name of the state derives from the Mississippi River, which flows along its western boundary, whose name comes from the Ojibwe word misi-ziibi...

     (State-contracted liquor stores)
  9. Montana
    Montana
    Montana is a state in the Western United States. The western third of Montana contains numerous mountain ranges. Smaller, "island ranges" are found in the central third of the state, for a total of 77 named ranges of the Rocky Mountains. This geographical fact is reflected in the state's name,...

     (State-contracted liquor stores, modeled after the Alberta Gaming and Liquor Commission
    Alberta Gaming and Liquor Commission
    The Alberta Gaming and Liquor Commission is an agent of the Government of the Canadian province of Alberta, and regulates alcoholic beverage and gaming-related activities...

    )
  10. New Hampshire
    New Hampshire
    New Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian...

     (Beer and wine can be sold at supermarkets & convenience stores; spirits and liqueurs are sold only in state-run liquor stores.)
  11. North Carolina
    North Carolina
    North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...

     (Beer and wine can be sold in supermarkets and convenience stores; other spirits must be sold in liquor stores owned by local ABC boards. The State ABC Commission controls wholesale distribution and oversees local ABC boards.)
  12. Ohio
    Ohio
    Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...

     (Licenses businesses to run liquor stores for a commission; these stores have a monopoly on sales of beverages with greater than 21% ABV.)
  13. Oregon
    Oregon
    Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...

     (Beer and wine can be sold in supermarkets and convenience stores; other spirits must be sold in liquor stores operated and managed by state-appointed liquor agents who act as independent contractors under the supervision of the OLCC
    Oregon Liquor Control Commission
    The Oregon Liquor Control Commission is a government agency of the U.S. state of Oregon. The OLCC was created by an act of the Oregon Legislative Assembly in 1933, days after the repeal of prohibition, as a means of providing control over the distribution, sales and consumption of alcoholic...

    .)
  14. Pennsylvania
    Pennsylvania
    The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...

     (All liquor stores [wine and spirits] are run by the state. Recently, there have been state-run retail outlets in the form of automated kiosks, opened inside some supermarkets; currently, 19 supermarkets have this. Malt beverages are sold in case lots by distributors and in smaller quantities by on-premise establishments.)
  15. South Carolina
    South Carolina
    South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...

     (Beer and wine can be sold in supermarkets and convenience stores; other spirits must be sold in liquor stores owned by local ABC boards.)
  16. Utah
    Utah
    Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the...

     (all beverages over 3.2% ABW [4.0% ABV] are sold in state-run stores, Utah code 5(a)(i))
  17. Vermont
    Vermont
    Vermont is a state in the New England region of the northeastern United States of America. The state ranks 43rd in land area, , and 45th in total area. Its population according to the 2010 census, 630,337, is the second smallest in the country, larger only than Wyoming. It is the only New England...

      (Liquor stores are state-contracted and licensed)
  18. Virginia
    Virginia
    The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...

      (Beer and wine ≤14% ABV sold at supermarkets and convenience stores; all liquor stores are run by the state)
  19. Washington (Beer and wine sold at supermarkets, gas stations, department stores, etc.; spirits and liqueurs are sold only in state-run or state-contracted liquor stores. Currently set to transition to a non-control state by June 2012.)
  20. West Virginia
    West Virginia
    West Virginia is a state in the Appalachian and Southeastern regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, Pennsylvania to the northeast and Maryland to the east...

     (Does not operate retail outlets; maintains a monopoly over wholesaling of distilled spirits only.)
  21. Wyoming
    Wyoming
    Wyoming is a state in the mountain region of the Western United States. The western two thirds of the state is covered mostly with the mountain ranges and rangelands in the foothills of the Eastern Rocky Mountains, while the eastern third of the state is high elevation prairie known as the High...

     (Does not operate retail outlets)


About one-quarter of the United States population lives in control or monopoly states.

See also

  • Alcohol laws of the United States by state
    Alcohol laws of the United States by state
    This list of alcohol laws of the United States by State provides an overview of alcohol-related laws by state throughout the United States. This list is not intended to provide a breakdown of such laws by local jurisdiction within a state; see that state's alcohol laws page for more detailed...

  • Alcohol monopoly
    Alcohol monopoly
    An alcohol monopoly is a government monopoly on manufacturing and/or retailing of some or all alcoholic beverages, such as beer, wine and spirits. It can be used as an alternative for total prohibition...

  • Dry county
    Dry county
    A dry county is a county in the United States whose government forbids the sale of alcoholic beverages. Some prohibit off-premises sale, some prohibit on-premises sale, and some prohibit both. Hundreds of dry counties exist across the United States, almost all of them in the South...

  • California Department of Alcoholic Beverage Control
    California Department of Alcoholic Beverage Control
    The California Department of Alcoholic Beverage Control is an agency of the government of the state of California charged with regulation of alcoholic beverages....


:Category:State alcohol agencies of the United States

External links