Retail alcohol sales start on Qualla Boundary

by Dec 10, 2021NEWS ka-no-he-da0 comments

 

By SCOTT MCKIE B.P.

One Feather Staff

 

Following passage of a referendum in September approving the practice, a local business is the first to start the retail sale of beer and wine on the Qualla Boundary.  Ric’s Smokeshop I, located on Casino Trail,  started several weeks ago.

“It’s going slowly, but I think it’s due to the 30 percent that we’re paying to the Tribe for it to come in,” said Carrie Davis, manager of both locations for Ric’s Smokeshop.  “So, our prices are a little bit higher than Catamount.”

Beer is shown in coolers at Ric’s Smokeshop 1 which is the first retail outlet on the Qualla Boundary to sell beer and wine. (SCOTT MCKIE B.P./One Feather photos)

She further noted, “We currently have a 30 percent commission to the ABC board for all alcohol sales. And, that includes whatever we put on there to make a profit for ourselves.  Yes. It’s really steep. We’ve been working through it. It’s budget here, budget there…I’m constantly watching the bank account. But we’re working through it.  You can’t always bring people the price that they want, but I’m going to bring what they want because that’s our job – to make our consumers happy. If we don’t do that, then we’re doing something wrong.”

Cherokee Code Section 18B.111(d) outlines where the fees are used by the Tribal Alcoholic Beverage Control Commission (TABCC).  “ The fees generated by the Tribal Alcoholic Beverage Control Commission for the issuance of retail permits may be retained by the Eastern Band of Cherokee Indians to offset costs of operating the Tribal Alcoholic Beverage Control Commission.”

She added, “We have domestic beer.  We have some craft beer.  We just brought wine in.  We’ve got anywhere from Busch, Budweiser, Miller, Native Brews, Sierra Nevada, etc.”

Davis said it is going well, but there have been some challenges.

“Just getting in touch with some of the companies because right now where not everybody has enough workers, they’re behind on things. So, just getting in touch with them was a little bit hard. Finding extra coolers to bring in here to fulfill what we want to bring. And just hour-wise – how long are we going to keep it open? How many of our employees can work for us to keep it open. Because we don’t completely have enough staff to cover until two o’clock in the morning.”

Davis is very grateful for their customers.  “Mainly right now I think it’s locals. They really wanted it in here and they’ve been really supportive. We’ve been telling them, ‘Work with us, we’re trying to get that percent down so it will be more affordable’. And, even if they’re just buying a single from us, it’s because they support us. They support that it’s here and we can finally bring revenue to the reservation instead of giving it to Jackson and Swain Counties.”

Following the September referendum which approved alcohol sales for retail establishments, restaurants, hotels, etc., Ric’s Smokeshop is the only one to garner a license yet.

A wine display is shown at Ric’s Smokeshop.

Davis commented, “I think that’s because that percentage is high – 30 percent is high. This is just a Mom and Pop store, so sometimes you take a chance and that’ll put you out of business trying to pay that. Food Lion coming in as a corporation could easily sell it just like that because they can pay that, they can afford it. But, a lot of people around here can’t.”

She went on to say, “It takes a lot to be able to get that [alcohol] into your store. We had to do the background checks, the license fee, all that – and that takes a lot to buy extra stuff if you don’t have it. A lot of people can’t afford it right now and I think, too, that they’re waiting on the 30 percent to see if it drops. If it drops, I’m pretty sure there will be more people because it will be more affordable for them.”

 

A brief history of alcohol among the EBCI

In July 2008, the Tribal Casino Gaming Enterprise (TCGE) submitted a resolution to Tribal Council calling for a tribal-wide referendum vote on whether or not to allow the casino “to permit the sale of malt beverages, unfortified wines, and mixed drinks, within the premises of the Casino and Hotel”.  That resolution passed on Aug. 7, 2008, and 20 days later, then-Principal Chief Michell Hicks vetoed the legislation.  Tribal Council heard the veto during a special session on Sept. 26, 2008 and failed to override the veto by a vote of 51 to 49 percent.

A Citizen’s Committee then got to work garnering petition signatures to hold the referendum, and on Feb. 5, 2009, the Tribal Board of Elections presented the petitions to Tribal Council with a total of 1,562 certified signatures which was 28 more than the 1,534 required.

The next month, on March 5, 2009, Tribal Council approved a resolution confirming the petition and scheduled the referendum for June 4, 2009.

Just prior to the vote, Chief Hicks stated, “I would like to reiterate my promise to the Cherokee people that I will support whatever decision our Cherokee voters make at the polls.”

And, he did.

The next week, the voting populace of the Tribe hit the polls and approved the referendum by a vote of 1,847 to 1,301.  Snowbird was the only community that didn’t vote to approve the measure (109 for, 115 against).

Following that vote, Norma Moss, then-Chairperson of the TCGE Board, commented, “By allowing the sale of alcohol in the casino’s restaurants and on the gaming floor, members of the Tribe voted to allow Harrah’s Cherokee to operate on a level playing field with other casinos across the nation.”

Several months after the referendum vote, the Tribal Alcoholic Beverage Control Commission (TABCC) was created with the passage of Ord. No. 903 on Aug. 19, 2009 with the authority to administer Tribal ABC laws, issue ABC permits, and act as the distributor of all alcohol on tribal trust lands.

Alcohol sales began at Harrah’s Cherokee Casino later that fall.

Several years later, the State of North Carolina added 18B-112 (Tribal alcoholic beverage control) to the state’s general statutes which states, “…the tribal alcoholic beverage control commission shall possess the same powers and authority conveyed upon the North Carolina Alcoholic Beverage Control Commission…”  The Tribe adopted the same rules into Cherokee Code in Ord. No. 768 (2011) which was passed on July 14, 2011.

The alcohol issue arose again in 2012.  Four questions were put to EBCI tribal voters in a referendum held April 12, 2012.  Only one of the four measures was approved.  The four questions put forth that day included:

Question 1: “To permit a Tribal ABC Store to sell NC authorized alcohol products to the public” (For: 1,005; Against: 1,499)

Question 2: “To permit the on-premises sale of malt beverages, unfortified wine, and mixed beverages only in restaurants licensed by the Eastern Band of Cherokee Indians” (For: 995; Against: 1,498)

Question 3: “To permit the off-premises sale of malt beverages and unfortified wine only in grocery stores licensed by the Eastern Band of Cherokee Indians” (For: 851; Against: 1,640)

Question 4: “Should each township on the Qualla Boundary have the local option to call for a specially-held referendum in that township to vote out alcohol sales and distribution for their township?” (For: 1,259; Against: 1,220)

A week prior to the referendum being held, a group of over 40 EBCI tribal members entered the Tribal Council Chambers to hand deliver a letter to Chief Hicks asking for a special session of Tribal Council to discuss several legal issues they saw with the scheduled referendum.

Amy Walker, an EBCI tribal elder, told the One Feather that day, “We want to be heard on the laws that we feel that they are breaking.”

She and others referenced Cherokee Code Sec. 161-9 which states, “An issue that has been brought up before the eligible voters and voted upon by referendum/initiative may not be voted upon again until a period of five years have passed.”

Bob Blankenship, former TABCC chairperson, stated at the time, “I disagree with the protester’s point of view.  We have never voted for a Tribal ABC Store.  We have never voted for on-premises sales in restaurants outside the casino, and we have never voted for off-premise sales in grocery stores.  The issue is not just the subject of alcohol sales, but what type of sales and where.”

Peggy Hill, an EBCI tribal elder from the Yellowhill Community, filed a Complaint and Request for Injunctive Relief in Cherokee Tribal Court alleging a violation of Sec. 161-9.  The injunction was denied, the request for a Special Council Session was denied, and the referendum vote went forward.

Following the vote, in which only one of the four measures passed, Chief Hicks noted, “Obviously, we’re all glad it’s over with.  There was a lot of anticipation and a lot of opinions on the issue.  But, what I am most thankful for is that we have a formal process now.”

Debbie Sexton, a member of the Cherokee Church of Christ, told the One Feather, “There are good arguments for both sides of the issue of how alcohol could help boost the economy, but what I do feel good about is that the people have stood up to voice their stand that they need to stay true to their elder’s beliefs that alcohol will ultimately only cause unahappiness.”

Five years after that historic vote, Painttown Rep. Lisa Taylor introduced legislation, in Annual Council on Oct. 26, 2017, calling for a referendum vote on sales outside the property of the casino.  “I think that our people here are intelligent enough to make decisions on this issue, and we’ve not been able to vote and our voice has been cut off.  So, I think give our people an opportunity to say whether we want alcohol or not in other areas other than the casino like it was voted on.”

Much of the discussion on this legislation has centered on the Blue Ridge law which allows alcohol sales in restaurants located within 1.5 miles of an entrance or exit ramp of the Blue Ridge Parkway.  Several businesses in Cherokee, located within that distance, were issued permits in the spring of 2017 based on that provision.

A special night work session was held at the Cherokee Indian Fairgrounds on Nov. 6, 2017 to discuss Rep. Taylor’s legislation.

Principal Chief Richard G. Sneed told the crowd, “It’s a very emotional issue for a lot of people.  There’s been a lot of damage that people have sustained in their lives.  At the end of the day, the referendum gives the vote to the people.  I’m in full support of a referendum vote.”

Peggy Hill, a constant voice on this issue, spoke that evening and said the Tribe should follow the example of Yonaguska (Drowning Bear).  “One hundred and eighty-eight (188) years later, alcohol among the Eastern Band is still, for the most part, still unacceptable.”

A referendum was held on May 31, 2018 asking the following question: “To allow ABC permits to be issued to allow retail sales of alcoholic beverages on tribal trust land at a tribal-owned package store/ABC store”.

Not enough EBCI voters turned out for the referendum vote to be valid per Cherokee Code Section 161-9(c)(4) which requires a 30 percent turn-out.  Just over 25 percent (25.6 percent to be exact) voted with 821 voting for and 912 voting against.

Flash forward three years and another alcohol referendum was held – this time with the following three questions:

Question #1: Do you support expanding the sales of malt beverages (beer) at retail establishments within the Qualla Boundary? Yes (1,657) No (1,219)

Question #2: Do you support allowing the Tribal ABC Commission to operate an ABC Package Store to permit the sale of alcoholic beverages on tribal lands? Yes (1,708) No (1,170)

Question #3: Do you support expanding the sale of malt beverages and wines at restaurants, hotels, and other qualified establishments within the Qualla Boundary? Yes (1,804) No (1,072)

All three referendum items passed, and the TABCC issued its first retail sales permit to Ric’s Smokeshop which started service in late November.