Governor Bob McDonnell of Virginia wants to end the Commonwealth’s monopoly of sales of spirits and use the revenue for highway improvements.
While most would applaud the source of addition income for the Virginia during theses cash-strapped times, some concerns have been raised as the to the potential for increased DUIs and binge drinking that might result.
This change brings up the question of whether permitting stores that sell beer and wine to also sell hard-liquor will affect the rate of DUI accidents (in violation of Virginia Code §18.2-266).
There is also the issue increasing binge-drinking by making hard-liquor more easily accessible to teens and younger drinkers (in violation of Virginia Code §18.2-266.1, Underage DWI, as well as §4.1-305, Underage Possession or Purchase of Alcohol).
Study Examines Questions
George Mason economics Professor Donald J. Boudreaux compared 32 states plus Washington, D.C. that have private liquor stores to 18 states with government run stores. His study concludes there was no appreciable difference in alcohol-related behavior in the states. In the study he refers to jurisdictions with government run stores as “control states” and those with private liquor stores as “license states.”
The study examined alcohol-related fatalities, binge drinking and drunk driving fatalities. He found in the control states, for the years 2001-2005, an average of 33.79 persons, per 100,000 persons, died each year from alcohol-related causes. In license states, this figure is 34.64. The figure for the U.S. as a whole is 34.34. He concluded, “Clearly, there is not much difference here between the two kinds of states.”
Binge Drinking
He looked at the rates for binge drinking amongst 12-17 years olds and found only a .22 percent difference between the control states and license states. For the 18-25 cohort, the defense was only 1.25 percent. His overall conclusion is “that there is no statistically significant relationship between control states and license states in the rates of binge drinking among 12-17 year olds.” He had the same conclusion for 18-25 year olds.
DUI
Finally, he looked at drunk-driving fatalities. Again, there was little to separate the control states from the license states. In 2008, the difference was .79 percent. Again, he concludes, “it cannot be said with any confidence that a decrease or increase in such fatalities is attributed to whether a state is a control state or license state.”
A Much More Complex Issue
It is clear from the study behavior related to alcohol consumption is influenced by a host of items beyond simply the type of store where the alcohol is sold. In early October, the Richmond Times reported there was strong support for the privatization among voters, though, not as strong as from the coalition Big Box retailers, who would profit directly by gaining the ability to sell liquor in their stores.
Matthew Kensky, a DWI defense attorney in the Fairfax, VA law firm of MacDowell & Associates, remarks that this issue is very complex. Aside from whether increased access to liquor results in increased consumption, there are many layers and a number of dynamics affecting this issue.
“First, should stores selling liquor be state-owned or privately owned? Though many people agree that government shouldn’t be running businesses in theory,” Mr. Kensky observes, “The financial benefits of a state-run ABC monopoly, especially in this down economy, prompt many to focus on what’s best fiscally for Virginia at this time.”
“Current state-owned stores annually generate over $100 million for state coffers, while one-time auction fees for licenses may total as much as $450 million in the short-term. Is the short-term windfall worth the loss of future annual profits?” asks Mr. Kensky.
Higher Taxes in the Future?
“Is the Governor’s proposed plan only financially viable if the difference is made up in the form of new liquor taxes on restaurants and new private ABC stores, which are then passed on to the consumer?” Fairfax DWI lawyer Mr. Kensky expects that politicians in favor of privatization in theory will likely temper or withdraw support if the Governor’s plan requires tax increases or results in less revenue in Virginia’s coffers.
If you have been stopped and charged with a DUI, you want to contact an experienced DUI defense attorney, who can advise you of potential strategies and your legal options.
