Declares an intent to privatize the retail and distribution of liquor to result in a system that is more efficient than public sector retail and distribution.

Finds that: (1) The present system of state control includes a markup amount at distribution that generates revenue for the state and local governments; and

(2) This markup will be eliminated when liquor sales and distribution are privatized.

Declares an intent that the privatization of liquor sales and distribution not result in revenue losses to state or local governments as compared to projected revenues assumed under state control, not including any separate licenses or franchises.

Directs the liquor control board and the department of revenue, with assistance from legislative staff and the office of financial management, to present a report to the legislature no later than December 1, 2010, on a recommended method and rates of liquor taxation that would generate the same future projected revenue for the state and local jurisdictions as under the current state control system.