That’s crony capitalism.
Crony capitalism is a term describing an economy in which success in business depends on close relationships between business people and government officials. It may be exhibited by favoritism in the distribution of legal permits, government grants, special tax breaks, or other forms of dirigisme.
http://en.wikipedia.org/wiki/Crony_capitalism
A long way from the ideals of the founding fathers isn’t it? I wonder ho much the state legislators got paid by the current license holders to enact this travesty.