About Liquor Control States

As a control state, Utah believes that moderation can best be achieved by neither promoting nor encouraging the consumption of alcohol, but rather by controlling it.

The control jurisdictions represent 28% of the nation's population (1997) and account for 25% of its sales of distilled spirits. In the regulation of alcohol beverages, they are the alternative to the license states -- where wholesale and retail sales of distilled spirits and wine are wholly in the hands of private sellers. By the participating in the marketplace, the control jurisdictions are able to serve their citizens with a broader and more flexible range of policy options for promoting moderation in the consumption of alcohol beverages and for reducing alcohol abuse. By keeping liquor out of the private marketplace, no economic incentives are created to maximize sales, open more liquor stores or sell to underage persons. Instead, all policy incentives to promote moderation and to enforce existing liquor laws are enhanced.

OUR FUNCTION

The Department of Alcoholic Beverage Control operates 36 state stores and approximately 80 package agencies. By state statute , the total number of stores is to to the state population, one store permitted for every 48,000 citizens. These state stores and package agencies are the exclusive retailers of liquor, wine and heavy beer (more than 4% by vol.) in the state. The department also administers liquor laws and licenses on-premise businesses, manufacturers, wholesalers, warehouses, importers and liquor representatives.

THE ADVANTAGES

A major source of income for the state:
Liquor sales provide a major source of income to the state's general fund relieving taxpayers of a significant tax burden each year. In FY00, gross sales totaled $138 million with a net profit of $28 million. This profit was contributed to the general fund to support state government operation.

Support of alcohol programs:
An appropriation from liquor profits is distributed each year to cities, towns and counties to be used exclusively for programs and projects related to prevention, rehabilitation, detection, prosecution and control.

Promote moderation:
Control systems promote moderation in consumption. Annual statistical data clearly shows that per capita consumption of alcohol beverages is significantly lower in control states than in the open states (25% lower).

Education and Enforcement:
Control states have targeted underage drinking as a priority item though education and stricter law enforcement.

The Control States

Eighteen states (and Montgomery County in Maryland) directly control the sale of liquor at the wholesales level. Fourteen of them also control retail sales, which means their citizens purchase liquor at a state package store or designated agency outlet. They're the "control states," representing 28% of the nation's population. For six decades, they've been working to promote responsible moderation

Utah

The Utah Department of Alcoholic Beverage Control has been in existence since 1935. In that year, the Utah State Legislature created the department and charged it with the responsibility of conducting, licensing and regulating the sale of alcohol beverages in a manner and at prices which reasonably satisfy the public demand and protect the public interest, including the rights of citizens who do not wish to be involved with alcohol beverages.
Governed by a five member, part-time commission, the Utah Department of Alcoholic Beverage Control employs a full-time director to oversee the day-to-day operation of the department. The policy of the department, as set by statute, is to operate as a public business using sound management principles and practices.

For more control state information, click here.