Stateways

C ontrol-state agencies are, as Jim Sgueo, president & CEO of the National Alcohol Beverage Control Association (NABCA) puts it, in the midst of “a perfect storm.” “We have had more turnover in our agency members in the last year than we have ever had, with [this latest round of] gubernatorial elections and retirements,” he said. Of course, when governors change, so, often, do their appointees, including the heads of their states’ control agencies. Sgueo continued, “More than 50 percent of our board [members] have less than two years of experience on the board and we expect to lose another two or three.” This is more than just the regular cycle of politics. Sgueo, with 23 years at the NABCA, is used to the turnover of gover- nors and control-agency direc- tors. But this time, he pointed out, “The economy has been extremely dire, plus there was a strong anti-government senti- ment in the past election. The philosophy of having a control state tends not to be as easily accepted by ‘less government is better’ politicians.” NABCA Chairman Incoming generate revenue, how they protect the public. Hence, the theme – “Acknowledging the Benefits of Control” – chosen by incoming NABCA chairman, Patrick Stapleton, though originally meant to celebrate the association’s upcoming 75th anniversary, couldn’t have come at a better time. And Stapleton, chairman of the Pennsylvania Liquor Control Board (PLCB) is the right man for the job. He’s been at the PLCB since 1997 and has been its chairman since 2007. He has been an NABCA direc- tor for more than four years and has headed the association’s finance committee. Stapleton is a lawyer and was once named one of Pennsylvania’s “Super Lawyers” by Philadelphia maga- zine. “Patrick brings a lot of expe- rience to the table,” said Sgueo. Stapleton runs the largest con- trol-state operation in the coun- try – and one of the most cutting- edge control operations in the world. Jim Sgueo “And,” he continued, “all governors by necessity are looking to cut back” on their budgets. Governors, many of them new to their jobs, are looking for ways to plug immediate gaps in their states’ finances. In Virginia, North Carolina, Pennsylvania, Ohio and Washington State, in particular, this has led gover- nors and legislators to explore the possibilities of pri- vatization. In the past year, said Sgueo, the NABCA has put forth a “huge effort, out of necessity, not necessarily planned, to get as much education and information about control states as possible to our [new control- agency] directors and staff and to state legislators and governors.” These newcomers need to understand the con- trol agencies in their states: what they do, how they StateWays  www.stateways.com  May/June 2011 The PLCB “since the 1980s has probably done more than anyone else to adapt to the 21st century consumer,” said Sgueo. “And since it is the largest con- trol state in the US, when another control state is looking at an issue, it often looks to how Pennsylvania responded to it.” The PLCB, for instance, was the first control state to offer the ability for licensees to renew their licenses online and, back in 1997, it was the first retailer of any type to start using ID- checking devices to verify a person’s age. And it has been a presence on Facebook and Twitter for the past year. In 2010, the PLCB was recognized by the technology company Oracle for “retail excel- lence,” alongside Abercrombie & Fitch, Disneyland Parks & Resorts, Gymboree and Lowe’s, while that same year it was named a Computer World Honors Program Laureate. When it comes to discussing the pros and cons of control versus privatization, Stapleton has recently added a lot of that specific experience to his 11

• Cover
• Table of Contents
• Editors Note
• Dateline
• Explanation of Benefits
• NABCA Roundtable
• Champagne
• Vodka
• Tequila
• Products