Will Mississippi change liquor laws in 2021? Why Coast legislators say it’s a priority
Voters took power into their own hands and passed medical marijuana by a 70% margin, and now state legislators are looking at Mississippi’s alcohol, beer and wine sales ahead of the 2021 legislative session.
“I think a clear message has been sent,” said Sen. Scott DeLano, R-Biloxi.
He was one of five Coast lawmakers to share their priorities for the upcoming session during the Mississippi Gulf Coast Chamber of Commerce’s online discussion Tuesday.
The Legislature has to act more assertively and quickly to address issues important to the people of Mississippi, he said.
The new medical marijuana law was proposed and passed by voters, without the Legislature, and stipulates the tax rate and where revenue will go. Lawmakers say they want to modernize Mississippi’s Alcoholic Beverage Control (ABC) system and maintain tax revenue before it’s potentially taken out of their control.
Mississippi is one of last states to not allow wine in grocery stores, other than low-proof options like Moscato, and it’s something that has kept large retailers like Costco from moving into the state.
Sen. Joel Carter, R-Gulfport, participated in both the Chamber webinar and a task force meeting in Jackson on Tuesday. He and other legislators are considering options for what he called a “severely outdated” warehouse and alcohol distribution system.
“You have to reinvest in your business. We have not spent any money in the ABC warehouse,” he said,
The Legislature did pass a bill allowing residents to order wine from other states starting Jan. 1, but failed to allow the wine to be delivered directly to their homes. Shipments have to go from the winery to a Mississippi package store, where excise taxes and shipping and handling fees will be added before the customer can pick up the wine.
Options include wine in grocery stores
Rep. Sonya Williams-Barnes, D-Gulfport, said she thinks in Mississippi she should be able to go to grocery store and pick up steak and wine at the same time.
Mississippi Department of Revenue Commissioner Chris Graham reported Tuesday that alcohol sales remain strong in Mississippi during the coronavirus pandemic, and shipping is 5-6 days behind schedule going into the busy holiday season.
Last year, ABC shipped 3.5 million cases, and he expects 4.1 million cases will be shipped by the end of 2020.
Some of the options the DOR presented for ABC operations are:
- Upgrade the current warehouse with a new computer system, climate control and other improvements at a cost of $14 million
- A second phase would expand the current warehouse by 100,000 square feet at a cost of $20-30 million.
- Purchase an existing warehouse or build a new warehouse.
- Outsource liquor distribution at a cost of $12-20 million annually, saving $4.8 million on reduction in staff.
- Remove wine from ABC at an initial cost of $12 million. Projected loss from annual revenue from markup on wine would be $32 million.
- Remove ABC from Department of Revenue and create a separate authority like the state lottery.
- Abolish ABC and privatize all wine and spirits, with an annual loss revenue of $83 million to the general fund.
How to spend BP funds
The five legislators also talked about how they are looking for projects that will create jobs and benefit the entire Coast to fund with the billions of dollars coming to the state from the BP oil spill funds.
The lawmakers were criticized by some on the Coast for not following all the recommendations of the Gulf Coast Advisory Committee for projects to fund.
Rep. Charles Busby, R-Pascagoula, said he thinks the lawmakers were disappointed in the projects put forward by the committee.
Most were community development projects, he said, “While we are looking for something that is transformational.”
The legislators said they’ve not been invited to the committee meetings, even when they asked to be included.
“It’s an advisory committee, you advise,” said Sen. Brice Wiggins, R-Pascagoula. The legislation doesn’t say that what the committee recommends will be done, he said.
Education and jobs
Barnes said a pay raise for teachers is important for schools and the economic development in Mississippi.
The state can give tax breaks and other incentives. “
If we don’t have good education, companies are not going to come to Mississippi,” she said.
Busby, who serves on the House Education Committee, said overall investment in education has gone up immensely in Mississippi. since the 1970s The teachers are paid by the state, he said, and they have one of the most important jobs in the world.
“They need to make more money,” he said.
Looking at education as a business, “The management’s top heavy,” Carter said, and the money is not trickling down to front line employees, which are the teachers.
