The Durham County ABC Board was organized under the provisions of the Pasqoutank Act in 1937 and implemented by a county wide vote on May 15, 1937, at which time the Durham County Commissioners appointed three individuals to serve on the Board with terms of three years. In 2001, upon authorization by the State Legislature, the County Commissioners appointed two more individuals to serve on the Board bringing the total to five board members. As a local Board, authorized and defined by NC General Statutes, Durham County ABC is an independent local political subdivision of the State. The Board, as provided by North Carolina Alcoholic Beverage Control laws, operates retail liquor stores and, through its law enforcement division, investigates violations of such laws. North Carolina General Statute 18B-805(c) (2) (3) requires that the Board expend at least 5% of profits for law enforcement and at least 7% of the same profits for alcohol education and rehabilitation purposes. NC Statutes also require the Board to distribute its surpluses to the General Fund of Durham County and the City of Durham, which represents a financial benefit to the County and City.