N.H. State Sen. Harold Janeway, D-Webster, plans to announce a proposal in November to partially privatize liquor sales in New Hampshire in order to balance the state's budget, he said in an interview with The Dartmouth. Currently, only state-run stores can sell spirits and distilled liquor, but under Janeway's proposal, the government would partner with a private group, which would pay a fee to oversee hard alcohol sales, yielding a net profit for the state.
The change would make liquor more accessible to students of age on campus by allowing establishments like Stinson's Village Store and the Co-op Food Store in Hanover to sell spirits, The Dartmouth previously reported.
Janeway is part of a commission charged with helping to balance New Hampshire's budget by taking inventory of all the state property that is available for sale or for lease, according to a June article in the Nashua Telegraph.
In an effort to raise $60 million to balance the 2011 budget, Janeway will propose that operation of the state-run liquor industry be taken over by a private company, according to the Union Leader. Currently, the state-run liquor industry contributes about $100 million to the state's budget each year.
Current N.H. law prescribes that only stores established and run by the state are eligible to sell liquor, and additionally requires that these stores be at least 200 feet away from of any public or private school, church, chapel or parish house, according to Chapter 177 of N.H. statutes.
Under the current law, private distributors may secure a license in order to sell alcoholic beverages "off-premises" and this generally allows the sale of beer and wine at other, non-state-operated stores. The sale of alcoholic drinks without such a licence is a felony, according to Chapter 178 of N.H. statutes.
A "substantial investment group" has expressed interest in reaching an agreement with the state that would allow them to operate the business, Janeway said. This proposal would allow the group to run the business for a fee while the state retained ownership.
Although he said he could not divulge the specifics of his proposal until November, Janeway said he thinks a private group would be better able to run the liquor business than the state, which lacks the necessary "skill." Because the private group will have to pay a fee and the state will retain ownership, the sale of liquor will not be entirely privatized, Janeway said.
New Hampshire is one of 18 states to have some type of control over the location of distribution or regulation of alcoholic beverages. State control of the liquor industry began in 1933 with the repeal of the Prohibition, where "states were given near-absolute power to regulate alcohol sales within their borders," according to the Stamford Advocate. The legislative commission has also considered selling property as a means of balancing the budget, but some of the property under consideration has historical value, which has created tensions among some of the commission members, according to the Union Leader.
The commission's proposal coincides with two controversial initiatives regarding alcohol sales in Washington state that will appear on the Washington ballot in November. Initiatives 1100 and 1105, if passed, would allow retailers to begin selling hard alcohol on June 1, 2011, and allow the state Liquor Control Board to oversee licensing of liquor retailers and distributors, respectively, according to the Seattle Post-Intelligencer.
These initiatives are contentious because of the potential for increasing access to alcohol to underage minors and the overall heightened presence of alcohol, the Post-Intelligencer reported. If passed, these initiatives would allow an additional 3,300 stores in Washington to sell liquor.
