Virginia ABC's 75th Anniversary 1934 - 2009
ABC TODAY
The Virginia Department of Alcoholic Beverage Control has continuously evolved during the past 75 years while the core aspects of the agency remain intact. ABC fosters effective public safety, provides excellent customer service and generates a reliable source of revenue for the commonwealth.
ABC is a state public safety agency, enforcing Virginia law in more than 15,000 licensed establishments. ABC's approximately 130 special agents are fully sworn law enforcement officers who work out of eight regional offices throughout the state.
While the ABC Bureau of Law Enforcement was originally created to prevent the manufacture and distribution of illegal alcohol, its duties have expanded to include investigations concerning underage drinking, illegal drugs, money laundering, tax embezzlement, gambling, counterfeiting and alcohol-related crimes.
ABC also conducts administrative hearings pertaining to application objections, franchise cases and violations to determine if charges against an establishment's license should result in dismissal, fines, suspension or revocation.
The agency continues to be a leader in spearheading award-winning alcohol education initiatives for people of all ages, developing underage prevention programs and offering compliance training to licensees.
As an efficient retail business, ABC currently offers approximately 3,400 alcoholic beverage products through its more than 330 conveniently located stores, Special Order Catalog and Signature Spirits Collection. Store personnel are focused on providing excellent customer service while maintaining a near-perfect record, 97% in 2008, of denying alcohol sales to underage buyers.
The agency does not advertise distilled spirits or promote alcohol consumption; however, ABC has contributed more than $1.5 billion to the commonwealth during the past five years.
While ABC reflects upon the past 75 years, the agency looks forward to enhancing its control, service and revenue mission.
PROHIBITION
The movement toward Prohibition was intended to stem the ill effects of uncontrolled alcohol consumption that plagued the United States during the early part of the 20th century.
In 1916, Virginia became the 18th state to enact Prohibition. The entire country followed in 1920 when Nebraska turned "dry," becoming the 36th state to do so, thus ratifying the 18th Amendment to the U.S. Constitution.
However, the amendment enacting Prohibition did less to stop the flow of alcohol, moving consumption from public saloons to backroom bars. The legislation also enabled moonshiners and bootleggers to become prosperous criminals.
The criminal empires of gang leaders thrived during the Prohibition Era while many citizens were searching for employment and standing in bread lines.
The lawlessness of organized crime bosses and high-powered racketeers had less of an effect in Virginia than it did in some major metropolitan areas such as Chicago or New York, but the commonwealth had its share of problems curtailing the flow of illegal alcohol.
Countless illegal stills operated in Virginia, mostly in the mountainous Southwestern region of the state. The era was dangerous for law enforcement officials as five Virginia Department of Prohibition agents were killed in the line of duty between 1918 and 1930.
Due to public outcry and rampant alcohol-related crime, Congress, in 1933, decided that it was time for national Prohibition to end and proposed the 21st Amendment, repealing the 18th.
During the months-long ratification process, Virginia Gov. John G. Pollard, a loyal prohibitionist, was eventually persuaded to call the General Assembly into special session despite his initial refusals.
At the special session in August 1933, the General Assembly immediately approved the sale of 3.2 percent alcohol. The legislature also authorized a special election in October of the same year to vote on two issues:
- Whether or not to ratify the 21st Amendment;
- And if the amendment was ratified, whether to continue state Prohibition or enact a plan of liquor control.
Virginia was the 29th state to ratify the amendment calling for the national repeal of Prohibition. Citizens overwhelmingly voted for its ratification and to devise a "liquor control plan." As a "control state," the government actively participates in the alcohol distribution chain.
Utah became the 36th state to ratify the amendment on December 5, 1933 and the "noble experiment" came to an end.
THE BEGINNING
A month before Prohibition officially ended, George C. Peery was elected as the Governor of Virginia. His administration would be the first to oversee ABC.
During the following legislative session in January 1934, a liquor control plan, known as Senate Document 5, was approved by the General Assembly.
The plan laid out the most comprehensive principles to date that would govern the distribution and consumption of alcohol in the commonwealth. It also recommended that a "three-man" ABC Board be established to direct the agency's operations.
The General Assembly adopted the plan on March 7, 1934, and the first three ABC Board members were appointed soon thereafter.
Col. R. McCarthy Bullington became the first person appointed to the ABC Board by Peery. Major S. Heth Tyler was named Chairman while T. McCall Frazier rounded out the threesome.
On April 3, 1934, ABC issued its first license to the Pullman Company for the sale of wine and beer on six of its railroad dining cars. The first four ABC stores opened in Richmond on May 15.
By August 1934, ABC had opened 50 stores and by the end of the year 66 were operating throughout the commonwealth. An ABC store was briefly opened in Bristol, but during a local option election citizens voted to close the southwestern Virginia store, which took place in December. Also, by the end of 1934 the ABC Board licensed 5,226 establishments.
In 1936, the General Assembly passed legislation granting agents full police powers to more effectively enforce the laws against moonshiners and bootleggers.
With the increased powers, agents seized an all-time high of 1,771 moonshine stills in 1941.
The agency was struck by tragedy in 1938 when Thomas Massie Gravely became the first of two ABC agents ever killed in the line of duty. A fleeing suspect shot Gravely as he raided a still in Pulaski County, on September 1. He succumbed to his injuries five days later.
Floyd Fenwick Vincent suffered a similar fate in 1950. Vincent was killed as investigators executed a search warrant on a still in Bland County, on January 22. As investigators approached the still, they stopped a truck with three occupants, who were in possession of moonshine. Vincent proceeded toward a two-room shack where the still was housed to serve the warrant when a suspect, laying in wait, fired the fatal shots from point-blank range.
WORLD WAR II
The U.S. involvement in World War II brought about unforeseen challenges for ABC. At first, the influx of personnel to military installations in Virginia contributed to sharp sales increases at ABC stores.
The availability of illegal alcohol decreased since more people were pressed into military service and access to machinery and equipment used for stills was limited.
In 1942, ABC opened its 100th store.
Wartime priorities led to a decrease in the alcohol supply since distilleries concentrated on producing industrial alcohol instead of beverage alcohol. Panic buying ensued when the public heard about the distillery conversions.
In response, ABC increased its inventory and put limits on customer purchase amounts. For the first time, the number of licensed establishments decreased due to alcohol shortages.
Enforcement efforts were hampered during this period as well since a number of agents were drafted or volunteered for military service. Qualified store employees were also on the decline because of the war.
Problems due to the war continued for a few years following the Allied victory, but many agents and store employees returned to ABC following their military service.
EXPANSION
By the 1950s, ABC's stores and enforcement efforts were thriving again.
The agency began a steady expansion of the number of stores, and enforcement agents had the manpower and equipment necessary to combat moonshiners.
ABC sales grew sharply throughout the 1950s and in the latter part of the decade a survey revealed that Virginia's ABC store personnel maintained the highest productivity rate of the 18 control states.
A steady increase of still seizures occurred until 1958. It became evident that Enforcement's efforts combined with public awareness of the health hazards moonshine could cause, led to a decrease in illegal-alcohol operations by the end of the decade. Illegally manufactured alcohol had unregulated quality standards and in severe cases caused death, paralysis and blindness.
PROGRESS
While the United States was immersed in social and political turmoil during the 1960s and early 70s, ABC was undergoing major changes as well.
In 1968, the General Assembly passed a bill that allowed establishments to serve "liquor by the drink." Previously distilled spirits were not sold in establishments, but the new legislation allowed restaurants to sell individual drinks if they qualified for a mixed beverage license. Similar measures had failed for 16 years.
The legislation also required food sales exceed mixed beverage sales in establishments that were granted a mixed beverage license. The law has been slightly modified since 1968.
While ABC laws were being updated by the General Assembly, the agency was working to increase customer convenience.
In November 1969, the first self-service store opened at Bailey's Crossroads in Fairfax County. Store 294 was remodeled to allow customers to walk the aisles and browse the merchandise. Previously, a customer would walk up to a clerk behind a counter to place an order.
Just four years after opening the first self-service store, about 20 percent of ABC's 250 stores were remodeled to be self-service.
Store 294 also was the location for another ABC first. In 1970, Betty Wilson became the first female clerk to work at an ABC store. Judy Beers became the second female clerk hired by ABC and worked at the same store.
During the 1970s, ABC moved into its current home on Hermitage Road in Richmond. The Central Warehouse moved from West Broad Street in 1971, and the Central Office relocated in 1976. The Central Office was previously located at 4th and Grace Streets, and prior to that at the Central National Bake Building at 219 E. Broad St. in the downtown area of the state capital.
MILESTONE
ABC celebrated its 50th birthday in 1984, amid much fanfare. A slew of events designed to celebrate the golden anniversary were planned, including Government Day and Alumni Day.
Gov. Charles S. Robb, state officials and agency executives took the opportunity to join the Board and employees to commemorate the agency's achievements and tour the facilities. Former employees were welcomed back on Alumni Day to take part in the anniversary events.
DRINKING AGE
Around the time ABC was celebrating its milestone birthday, the laws concerning the drinking age were addressed.
Legal drinking age laws were only modified once prior to the 1980s, when the legal age for beer was lowered from 21 years old to 18 in 1974.
However, the 1980s were dominated by more frequent changes to the national and state age requirements for consuming beer. The legal drinking age for wine and liquor always remained at 21 in Virginia.
In 1981, the legal drinking age for beer was raised to 19 years old for off-premises consumption, but remained at 18 for on-premises consumption.
Two years later, the legal drinking age was raised to 19 years old for all beer sales.
Amidst growing public safety and health concerns, advocates for restoring the legal drinking age to 21 years old succeeded.
In 1985, a law reversed the legislation passed 11 years earlier. Persons born on or after July 1, 1966, were able to purchase beer, wine and liquor on and after their 21st birthday. Persons born before July 1, 1966, retained the privilege to purchase, possess and consume beer. After the midway point of 1987, all people had to be 21 to purchase, possess or consume any type of alcoholic beverage.
PREVENTION
Educational programs were also created in the mid 1980s to educate young people about the risks of underage alcohol use. The Youth Alcohol Abuse Prevention Project (YAAPP) was formed, and its first statewide conference was held at Roanoke College.
A few years later, drug prevention was added to the mission of YAAPP, thus creating the Youth Alcohol and Drug Abuse Prevention Project (YADAPP).
ABC's inaugural College Conference took place in 1985. The 24th Annual College Conference is slated for this fall. The weekend-long event is the nation's longest-running conference focusing on alcohol abuse prevention for college students and tools to prevent underage drinking.
In addition to the conferences, the agency distributes grant funds to local government agencies and community organizations throughout the commonwealth to be used for prevention education. In 2008, the agency awarded more than $60,000 to local governments and community organizations to prevent underage drinking and access to alcohol.
ADDED DUTIES
During the late 1990s, the ABC Bureau of Law Enforcement implemented an annual contract with the Food and Drug Administration (FDA) to conduct tobacco compliance checks in conjunction with the underage alcohol buyer checks.
As part of the Underage Buyer Program (UAB), an underage operative, under the supervision of an ABC special agent, attempts to purchase alcohol or tobacco from an establishment. The operative does not try to conceal his/her age or identity from the clerk or server. If an illegal sale is made the agent will file appropriate criminal and administrative charges.
Special agents were trained and commissioned as federal officers to enforce FDA regulations concurrently with state UAB tobacco enforcement activities. Two years after entering into an agreement with the FDA, The U.S. Supreme Court found that the administration lacked authority to enforce tobacco laws. Instead, ABC entered into a contract with the Virginia Tobacco Settlement Foundation to provide funding for the agency's tobacco compliance checks.
ABC also began to crack down on cigarette smuggling operations. Smugglers have been apprehended buying large amounts of cigarettes in Virginia and transporting them to other states, usually in the northeast. Uncovering the illegal operations through ABC and multi-agency investigations prevented smugglers from circumventing tax laws in other states.
SEIZED
Even with increased attention on cigarette smuggling, ABC was still primarily focused on alcohol-related enforcement as the 21st century approached during the 1980s and 90s.
In 1993, the ABC Bureau of Law Enforcement's Illegal Whiskey Task Force and the Pittsylvania County Sheriff's Department seized the largest size still ever in Virginia and perhaps the nation. The joint investigation uncovered a still with 36 separate 800-gallon pots housed in a structure that resembled a barn a quarter-mile from the Franklin County line.
Not all of the stills had been put into operation when authorities conducted the raid. However, if all 36 pots had been up and running it is estimated that 1,000 gallons of untaxed whiskey could have been produced during a six-hour shift.
Prior to the Pittsylvania County seizure, the largest still uncovered was in neighboring Franklin County in 1974. That bust uncovered a still with 24 pots of similar size.
In 1998, the Illegal Whiskey Task Force seized one of the most sophisticated illegal steam distillery operations built entirely underground and destroyed 2,544 gallons of illegal whiskey in Franklin County.
The following year, the task force and ABC's Financial Investigations Section initiated a joint investigation with the Bureau of Alcohol, Tobacco and Firearms, the Internal Revenue Service and the North Carolina Alcohol Law Enforcement Department to shut down illegal whisky operations.
The two-year investigation, named Operation Lightning Strike, stemmed the flow of untaxed liquor from Virginia to North Carolina, Maryland and Pennsylvania.
Sixteen defendants pleaded guilty to criminal conspiracy and money laundering charges while two people were convicted of perjury during grand jury testimony.
COMPLIANCE
As ABC entered a new century, the agency became increasingly focused on reducing underage access to alcohol and educating the public about the dangers associated with drinking and driving.
In 2002, Gov. Mark R. Warner appointed a new Board, which intensified efforts to reduce sales to, and consumption of, alcohol by underage people.
More than one-quarter of establishments did not meet compliance rates in 2002, and the Board deemed the numbers unacceptable. Due to enforcement and educational efforts, alcohol compliance rates among licensees surpassed 90 percent only six years later. ABC store compliance rates reached an all-time high of 99 percent in 2007, and tobacco compliance rates reached an all-time high of 90 percent in 2006.
RECOGNITION
ABC has received awards for implementing various programs during the first decade of the 21st century
ABC's Bureau of Law Enforcement was the recipient of awards for the actions of agents while responding to a national tragedy. The National Liquor Law Enforcement Association named ABC the National Agency of the Year for its assistance with rescue, recovery and security efforts at the Pentagon following the September 11 terrorist attacks.
The agency was also presented with the 2001 Commonwealth Valor award from the state Department of Transportation, and the Governor's Transportation Safety Award for its None For The Road campaign designed to alert people to the hazards of drunk drinking.
ABC was awarded the prestigious U.S. Senate Productivity and Quality Award Certificate for Performance Excellence in 2004 and 2005 for demonstrating organizational excellence.
More recently, ABC received national and state awards for addressing alcohol-related issues pertaining to older Americans with the Alcohol and the Aging initiative. As part of the initiative, ABC partnered with more than 25 public, private and non-profit organizations in 2008 to create the Alcohol and Aging Awareness Group (AAAG). Due to its success, other states are planning similar programs using the AAAG as a model.
While ABC's recycling and energy conservation plans were implemented nearly four decades ago, the agency's enhanced environmental efforts were recently recognized as being a leader among Virginia's state agencies. ABC received its Environmental Enterprise certification as part of the Virginia Environmental Excellence Program from the Virginia Department of Environmental Quality. Going "green" contributes to the environmental sustainability and has a positive effect on the agency's bottom line.
ABC also joined forces with the military in 2008 to implement an initiative to inform personnel stationed in Virginia about the commonwealth's alcohol laws and promote alcohol responsibility.
Now the agency has set its sights on educating people about the dangers of alcoholic energy drinks. In many cases, consumers falsely believe that the caffeine and other stimulants in these drinks will counteract the effects of alcohol. In contrast, consumers often become intoxicated yet remain wide-awake. ABC has been praised by the National Alcoholic Beverage Control Association for being a leader among control states in addressing this public safety and health issue.
INNOVATION
ABC launched its Web site in 1997 as an additional tool to interact with the public, increase licensee convenience and spread awareness about the agency's mission and initiatives.
Forms that were once filled out manually can now be completed via the Web. The procedure has reduced the amount of processing time it takes for license applications.
ABC's prevention campaigns and educational brochures are archived on the Web in addition to the Virginia Code, licensee resources, hearings dockets and stores and products information.
ABC provides stores with equipment and technology for increased customer service and secure transactions.
In 2008, ABC, joined other retailers, offering gift cards to take the "guesswork out of giving."
NEW LAWS
In addition to escalating educational efforts, the agency continually increases the focus on customer service and public safety.
In 2004, the General Assembly passed legislation allowing ABC stores to open their doors on Sunday for the first time in Virginia Beach, Norfolk and some localities in Northern Virginia.
Four years later, the legislature passed a bill expanding Sunday sales to Richmond and four other cities in the Hampton Roads area with a population exceeding 100,000.
The 2008 General Assembly also passed bills strengthening the control arm of the agency's mission. For the past several years, ABC agents have had access to Virginia-only background checks. The legislature passed a bill allowing agents to search the national criminal database when conducting background checks on prospective licensees.
Also, legislation signed into law made it an ABC violation for a licensed establishment to allow their businesses to become meeting places for criminal gangs.
ABC BOARD
The governor appoints the ABC Board. Gov. Timothy M. Kaine's reappointment of Esther H. Vassar and appointments of Susan Swecker and Pamela O'Berry Evans reveal the progressiveness of Virginia's government. It was the first three-woman Board in ABC's history.
Evans left the agency in March 2009 after the General Assembly elected her to serve as a general district court judge for Chesterfield County. Former Del. Franklin P. Hall was appointed by Kaine to replace Evans as commissioner.
Vassar, who was the first woman reappointed to the Board, left the agency in July 2009 after accepting the Ombudsman position with the U.S. Small Business Administration in Washington, D.C. Gov. Kaine appointed former Richmond City Councilman and attorney William J. Pantele.
Curtis Coleburn has served as Secretary to the Board since 1995 and was appointed Chief Operating Officer in 1999 by Gov. James S. Gilmore III to handle the everyday management of operations at ABC.
LOOKING FORWARD
During the past 75 years, ABC has become a more versatile, flexible and dynamic agency without straying from its original purpose of ensuring public safety, providing excellent customer service and generating a consistent source of revenue for the Commonwealth of Virginia. While ABC briefly reflects upon its accomplishments during the past 75 years, the agency commits to progress and innovation in support of its control, service and revenue mission.