Amended bill: Keep state stores, sell wine at beer distributors
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HARRISBURG -- House Majority Leader Mike Turzai's long-debated plan to eliminate the state Liquor Control Board and privatize the current state-owned system for selling liquor has fallen flat on its face.
The House Liquor Control Committee, controlled by Republicans, today scrapped Republican Turzai's wide-ranging but controversial bill and instead passed a radically different bill that would let the state's 1,200 beer distributors sell wine to the public while the liquor stores continue.
The "gut and replace" amendment, as it is called, was proposed by Rep. John Taylor, R-Philadelphia, who said he couldn't support Mr. Turzai's plan to eliminate the LCB's 620 stores and lay off its 3,800 unionized workers.
He said the amended bill, which now goes to the House floor for more debate and possible additional changes, will add 1,200 places for consumers to buy wine, in addition to the existing state-owned stores.
Beer distributors could sell only wine and beer, not liquor or spirits, which would still be restricted to LCB stores. A license to sell wine would cost $50,000 initially with a $15,000 annual renewal fee.
However, the value of such a license held by a beer distributor would likely rise -- due to the ability to also sell wine -- and likely would be bought by large supermarket chains, such as Giant Eagle, Giant and Wegman's. They would be able to sell beer and wine at their grocery stores -- though probably in a separate part of the store, with separate cash registers.
Currently, 100 supermarkets in the state have permission to sell beer in a separate area, Mr. Taylor said.
At four hearings held around the state this year, he added, the committee got conflicting and confusing information about how much money the state would get from privatization of state stores -- some said between $2 billion and $6 billion, but others said much less. Mr. Taylor said he wasn't convinced such a sale would benefit the state financially, and it would cost 3,800 LCB employees their jobs.
His amendment preserves the current 30 percent markup on wine and liquor and the 18 percent Johnstown flood tax, which Mr. Turzai wanted to eliminate.
The amended bill also makes several other important changes, such as allowing beer distributors to sell six packs (now they can only sell by the case); allows bars and taverns to sell 30 packs, not just one or two six packs; lifts the current limit of 25 percent of state stores that can open on Sunday; and lets their Sunday hours be 9 a.m. to 9 p.m. instead of the current noon to 5 p.m.
However, nothing is final yet, as more changes to the amended House Bill 11 could be made either on the House floor or Senate floor.
First Published December 13, 2011 12:00 am
