Proposed ABC Privatization Model
Staff Recommendation to
Governor’s Commission on
Government Reform & Restructuring September 8, 2010
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Primary Objectives of Privatization
•
End an outdated government monopoly for distilled spirits sales and distribution, and create a free-market and private-sector delivery of a service, which is not a core-function of state government
•
Generate
hundreds of millions of dollars
for financing transportation projects
•
Treat distilled spirits on a level playing field with wine and beer, which have been sold in private outlets for 76 years
•
Stimulate private sector investment, entrepreneurship and job creation
–
ensuring businesses of all sizes have an opportunity to participate
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Principles of Privatization Approach
•
Three tier system shall be preserved
•
The Commonwealth, through ABC, shall maintain effective health, safety, law enforcement and marketing regulatory authority over private distilled spirit sales and distribution, the same as is currently done with oversight and enforcement of private sector beer and wine sales for 6,657 off-premise retailers
•
Maintain equivalent General Fund annual tax revenue flowing to the Commonwealth
•
Implement consistent with Virginia traditions and values
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