RICHMOND, Va. - Virginia Gov. Bob McDonnell and his staff have been furiously working on plans to privatize state-run liquor stores, the Virginia Pilot reports. Those proposals will be revealed early next month, with approval by the governor??s reform commission likely to happen by the end of August. McDonnell will then hold a special session of the Assembly to approve whichever proposal passed the commission, along with other ways to reduce spending.

The four options on the table include

• Offering all of Virginia??s alcohol assets to a single buyer;
• Giving businesses that currently sell wine and beer the option of purchasing a spirits license;
• Letting businesses assume the running of the state??s liquor stores; and
• Selling an unnamed number of liquor licenses to the highest bidder.

The proposal to auction licenses appears to have garnered the most support thus far. Any proposal would likely add to the number of stores that sell liquor, upping that number to as many as 800 (currently, there are 332 ABC stores).

The plans would loosen restrictions on where liquor could be sold, opening the door for convenience stores and supermarkets, as well as Walmart and Costco, to sell spirits.

"For 70 years, we??ve distributed beer and wine in every 7-Eleven, every Food Lion. But we??ve controlled the distribution of spirits," said McDonnell. "From a free-market standpoint, it doesn??t make sense to continue to control only one part of the distribution."

McDonnell??s staff said that privatizing Virginia??s liquor sales could generate between $300 million and $800 million in one-time fees. Other states looking into ending state control of liquor sales include North Carolina and Pennsylvania. Washington state voters will consider the issue on referendum this fall.