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Fact Book 2015 140 Glossary Agency Store (Control States) - an outlet operated by a private individual contracted to act as an agent of the State Control Board to sell distilled spirits and wine. The agency is paid a set commission on sales. These outlets are often established in locations where the state finds it unprofitable or inconvenient to operate a state store. Typically, a private individual operates the agency store within another type of retail outlet (e.g. grocery, convenience store, gourmet shop, etc.). Bailment (Control States) - a system of storing supplier-owned inventory in state-operated warehouses. The control authority holds beverage alcohol products in trust until stock is needed at retail. Biodegradable - capable of breaking down or decomposing within a certain period of time into components that are non-toxic or not hazardous to the environment under natural conditions. These components may include carbon dioxide, water and other natural products found in nature. Several states throughout the country have set requirements for manufacturers to produce biodegradable chemical degradable, or photodegradable plastic beverage holders. The definition of biodegradability may vary from state to state. Chemical Degradation - capable of breaking down or decomposing within a certain period by a chemical process that is not hazardous to the environment. Several states throughout the country have set requirements for manufacturers to produce chemical degradable, photodegradable or biodegradable plastic beverage holders. The definition of chemical degradability may vary from state to state. Control State - a state in which a government monopoly controls the sale and distribution of beverage alcohol. A state government agency acts as the wholesaler of distilled spirits and often wine, dealing directly with supplier companies and wholesaling to the retail tier, including the on-premise segment. Beer is handled through the private sector. In some states, the agency also operates off-premise retail outlets that sell to consumers. Typically the control agency also handles licensing, regulatory and enforcement functions. The purpose of this system is to maintain strict control of the distribution and sale of beverage alcohol in the state, provide those consumers who choose to drink with a selection of products and generate revenue for state coffers. Eighteen states and Montgomery County, MD, comprise the control areas. Excise Tax - tax levied on commodities and services. The federal excise tax on distilled spirits is $13.50 per proof gallon. Individual states levy excise taxes on distilled spirits, wine and beer on the basis of alcohol content, wine gallons, liters or value. Local Option - choice of whether to permit or prohibit the sale of beverage alcohol as decided by local voters. Such choice is made on the basis of laws or state constitutional provisions adopted after the repeal of Prohibition in 1933. Metric System - since 1981, all spirits sold in the U.S. have been bottled in metric-sized containers. The different sizes and equivalent gallons per case are: Miniatures - generally 50 milliliter bottles of spirits and wine. A majority of states permit miniatures for on- and off-premise consumption. Off-Premise Outlets - retail establishments selling beverage alcohol in consumer-size containers that are removed from the retail establishment and consumed elsewhere. On-Premise Establishments - retail establishment where beverage alcohol is consumed at the establishment, such as bars, taverns restaurants and clubs. In some states, these outlets also have licenses to sell alcohol for off-premise consumption. Open or Licensed States - states where private individuals can obtain license(s) to sell beverage alcohol. The private sector is involved in the wholesale and retail tier, and the government functions as licensing and regulatory agent only. Thirty-two states and the District of Columbia permit such private sales. Photodegradable - capable of breaking down or decomposing within a certain period of time into components that are non- toxic or not hazardous to the environment when exposed to sunlight. Several states throughout the country have set requirements for manufacturers to produce photodegradable, chemical degradable or biodegradable plastic beverage holders. The definition of photogradability may vary from state to state. Price Posting - a listing of beverage alcohol prices filed Usual Liters Equivalent Number of Per Gallons Per Bottle size Bottles Case Case 1.75 liter 6 10.5 2.774 1.00 liter 12 12.0 3.170 750 ml 12 9.0 2.378 375 ml 24 9.0 2.378 200 ml 48 9.6 2.536 100 ml 48 4.8 1.268 50 ml 120 6.0 1.585