Stateways March April 2018

StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions

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StateWays | | March/April 2018 37 FURTHER READING TOWARD LIQUOR CONTROL By Raymond Fosdick and Albert Scott Originally published in 1933 Re-released by the Center for Alcohol Policy ALCOHOL: NO ORDINARY COMMODITY Oxford University Press Released 2010 PREVENTING ALCOHOL-RELATED PROBLEMS Textbook from the American Public Health Association Released in 2017 GUIDE TO COMMUNITY PREVENTIVE SERVICES Published by the Community Preventive Services Taskforce Summary available in the "American Journal of Preventive Medicine," 2012 PUBLIC ACTION MANAGEMENT Pamela Erickson For further resources in the area of control states and public health, visit Keeping price balanced is important – it needs to be high enough to discourage overcon- sumption, but not high enough to induce bootlegging. Price is probably the strongest tool available to regulators to assert control, since they have pricing authority. For place, there's considerable research that shows more availability leads to more consumption, so it's im- portant to limit access. It's not just about where alcohol is sold, but also the hours of sale and licensee diligence regarding minors and intoxicated customers. Every state has some type of regulation curtailing certain promotions. In Oregon at the time I was there, we didn't allow liquor stores to advertise. The idea is not to promote overconsumption, but you have to strike a balance because of how important new products are to the industry. For product, we have the listing process where agencies can refuse to list certain products. So there are a lot of tools at regulators' disposal. SW: What are the most common misconceptions around the country about the control system? PE: There's a complete misunderstanding in some cases – people wonder why the gov- ernment is in a business where it's enforcing regulations and selling product. People don't understand why the state is given that responsibility. But the experience now with marijuana is helpful and reminds people why the system was created, because they recognize that a regulated product needs to be monitored to curtail excess consumption and keep it out of kids' hands. After Prohibition the primary drink was hard liquor, and regulating that was the original ratio- nale for the control system. Initially the control states had very tight control, but as the system evolved and found more ways to safely involve the private sector while also maintaining regula- tions, those were loosened. Unfortunately states haven't adopted that model for marijuana yet, but they're learning a lot from that process. ALCOHOL RETAILING SYSTEMS: PRIVATE VERSUS GOVERNMENT CONTROL By William C. Kerr and Sarah Beth L. Barnett The US Experience with Privatizations Privatizations have occurred in a variety of ways in the U.S., including through local and state legislative action and through ballot initiatives. Stakeholders such as retail stores, the alcohol industry and governments have interests in shaping the aspects of the policy for their benefi t. Although policymakers may consult with or review public health and safety evidence, privatiza- tions have been crafted to balance the desires of businesses and revenue to the government rather than mitigating potential harms. Areas and Needs for Future Research In the U.S., there are no studies on costs of privatization such as health care costs, law enforce- ment costs or public safety costs. Understanding impacts of government control functions such as product choices and rejections, access to shelf space, consistent mark-up procedures, consistently trained retail employees, store locations, marketing and other aspects is especially needed. For example, no studies have addressed sales to intoxicated patrons comparing government and private stores. ALCOHOL CONTROL SYSTEMS: TAKING ACTION TO PREVENT ALCOHOL-RELATED HARM By Steven L. Schmidt, Margaret Barchine and Chris Naylor Conclusion All control jurisdictions have a unique advantage of deriving revenues from the distribution of alcohol that go toward funding state and local government operations. Control system reve- nues support essential agency education programs to further promote messaging, trainings and programs aimed at eliminating dangerous alcohol consumption. It is through leadership roles in alcohol prevention initiatives that government agencies in control jurisdictions are able to work together with law enforcement offi cials, public health and safety organizations and the community at large to coordinate among the many important stakeholders to work to- ward reducing alcohol-related harms. It is for these reasons control systems play an integral and valuable role in society and are effective models in protecting public health. •

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