House looks to ease backlog at ABC, provide relief to businesses

• The House measure would allow licensed business with an alcohol permit to purchase their stock from any willing provider if ABC doesn’t fulfill their order in 5 days. This allowance would be in effect for 2 years.

To address the backlog that has plagued the state’s Alcoholic Beverage Control for months, the Mississippi House of Representatives amended a Senate bill last week through a strike-all amendment that would allow licensed and permitted businesses to purchase stock from other avenues when ABC fails to make timely deliveries.

The bill comes on the heels of a House State Affairs Committee meeting held in mid-February, where representatives of ABC were asked why liquor stores, restaurants and casinos are not getting deliveries in a timely manner.

During that House committee hearing, Department of Revenue Commissioner Chris Graham cited software issues with the warehouse’s conveyor belt system as well as the construction of a new warehouse as contributing factors to the delivery delays. 

“We came away from that meeting with two conclusions,” House committee chair State Rep. Hank Zuber (R) said while describing the amendment to SB 2838. “Number one, nobody had a plan. Number two, we cannot wait.”

After February’s hearing, Zuber said five senators and close to two dozen representatives approached him to say the Legislature should take action to protect the interests of the state’s package stores and other businesses that rely on alcohol sales.

It was stated in the meeting that the back orders are expected to be resolved by May of this year. In the meantime, many package stores and other businesses that sell liquor and spirits are suffering from lack of product. 

“You got three (package stores) in north Mississippi that have not opened up in two weeks because they have no inventory,” Zuber said. “You go for dinner around Jackson, look at the restaurants, they have no inventory.”

Zuber’s amendment, called the “Emergency Alcohol Distribution Act,” would allow any licensed business with an alcohol permit to purchase their stock from any willing provider of alcohol if ABC cannot deliver that order in a timely manner. State Rep. Brent Powell (R) said that window is within 5 days.

“If you only get part of your order, you can order from somebody, from any willing provider,” Powell said. “Other than that, it’s just like the direct ship we’ve done before. This way restaurants, package stores, casinos, anybody who has that permit can order.”

“That may be the warehouse, that may be directly to the distributor, that may be across state line,” Zuber described. 

Access to purchase liquor and spirits from sources other than ABC will last for up to two years under the amendment. 

“Why two years?” Zuber asked. “We think that will get us past the installation, the commencement of the new warehouse and give everybody time to catchup and take care of this backlog.”

His amendment did not make any changes to the current tax structure for those products, citing the changes made in previous legislation that allows for direct shipment.

During discussion of the amendment while on the House floor, State Rep. Chris Bell (D) asked why something was not done sooner since, in his opinion, ABC has been poorly run for years. Bell also asked why the head of ABC is still in their position. 

“I don’t necessarily disagree with you. I don’t think the state should be in the business of this anyway,” Powell said, adding a reference to the Senate by saying, “We’ve tried for years and the other side doesn’t want to do it.”

The strike-all version of the bill passed by a vote of 112 to 2. The measure now heads back to the Senate for consideration.