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Committee Approves Governor’s ABC Privatization Plan

Posted by Stephen on October 1, 2010

Simplification and Operations Committee of the Commission on Government Reform and Restructuring Backs Plan; Heads to Full Commission for Monday Vote

The Virginia Hospitality & Travel Association Endorses Effort; Joins Growing List of Individuals and Organizations Supporting Privatization

RICHMOND- The Simplification and Operations Committee of the Commission on Government Reform and Restructuring today officially approved adoption of the governor’s ABC privatization plan, with several amendments and changes. Those changes are highlighted by:

• Eliminating the proposed 2.5% optional restaurant convenience fee
• Eliminating the proposed 1% wholesale license fee
• Adding a fourth tier of 100 licenses, as a subset of the 250 licenses in tier three, for small stores with less than 50 employees statewide. The plan as approved keeps the number of licenses at 1,000 statewide
• Allowing winning bidders in levels 2, 3, and 4 with less than 50 employees statewide to pay for retail distilled spirits licenses over a 3-5 year period
• Providing performance based incentives for licensee holders who hire current ABC employees.

Further information regarding the plan as adopted by the Committee can be found here: http://www.reform.virginia.gov/Meetings/ under the heading: “Summary of proposed modifications to proposed ABC privatization model agenda.”

The full Commission on Government Reform and Restructuring will vote on the ABC privatization proposal Monday.

In addition to today’s vote, the governor’s effort to eliminate an outdated government monopoly, and put over $500 million into transportation without raising taxes, gained additional statewide support with the influential Virginia Hospitality & Travel Association announcing its backing of the effort.

In recent weeks a broad range of groups and individuals have endorsed the governor’s plan. Among the groups and individuals joining the Virginia Hospitality and Travel Association in endorsing ABC privatization to date:

• The Northern Virginia Transportation Alliance
• Fairfax Chamber of Commerce
• Virginia Retail Merchants Association
• Virginia Fraternal Order of Police
• Virginia Wineries Association
• Americans for Prosperity
• Americans for Tax Reform
• Virginia Transportation Construction Alliance
• Old Dominion Highway Contractors Association
• Associated General Contractors of Virginia
• Heavy Construction Contractors Association
• Virginia Ready-Mixed Concrete Association
• Richmond Area Municipal Contractors Association
• American Council of Engineering Companies of Virginia
• Jerry Falwell, Jr
• Lieutenant Governor Bill Bolling
• Attorney General Ken Cuccinelli
• Former Governor and Senator George Allen

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