“It’s a historic day. The Pennsylvania state House just sent the message that it’s time to put an end to the dinosaur of bureaucracy that is the Pennsylvania state store,” said House Majority Leader Mike Turzai prime sponsor of the bill. “House Bill 790 would responsibly privatize wholesale and retail sales of wine and spirits in a consumer-friendly way without taking revenues away from the state budget.”
In a media availability with Gov. Tom Corbett and other supporters after the vote, Rep. Turzai noted Pennsylvania has a complicated and tiered system in place to sell alcohol to consumers. There is the beer distributor network, which is losing more and more market-share, or customers, as supermarkets open up beer-selling cafes, and then there is the state store system of selling wine and spirits.
House Bill 790 would allow beer, wine and liquor to be sold in one licensed location, giving consumers the choice and convenience they strive for according to almost every statewide and local poll taken.
Giving local beer distributors the first chance to purchase licenses allowing them to sell beer, wine and liquor, the legislation would phase out 600 state stores, allow wine sales in grocery stores and bring about beer package reform.
Rep. Turzai said the legislation was drafted with Pennsylvania’s conservative views on alcohol in mind. The bill:
-- Retains tight regulatory control.
-- Retains tight regulatory control.
-- Strengthens law enforcement.
-- Clamps down on underage drinking
-- Promotes education.
-- Respects current employees.
Pennsylvania remains one of only two states in the nation (the other being Utah) with full government control over wine and liquor sales. The Pennsylvania Liquor Control Board controls promotion and sales of wine and spirits, as well as the regulation and enforcement of Pennsylvania liquor laws. Thirty states have never been involved in the sale of alcohol.
Pennsylvanians are now one step closer to having real choice and convenience as wine, spirits and beer consumers, Gov. Tom Corbett said after the House passed the liquor privatization bill.
“Today is truly a historic day,” Corbett said. “Never before has a liquor privatization bill passed through either chamber of the legislature, and I am extremely proud of the hard work and commitment the House and their leadership have shown to the people of Pennsylvania today.”
“Finally, a bill to bring Pennsylvania into the 21st century and provide Pennsylvanians with the convenience and choice that Americans in 48 other states enjoy is now on its way to the Senate,” Corbett said. We still have a way to go, but I trust that the Senate will diligently work with us to ensure that Pennsylvanians get the convenience they’ve been wanting for years.”
Corbett said that House Bill 790 ends the state’s role as the sole wholesaler and retailer of wine and spirits, allows for true consumer choice and increases enforcement, fines and penalties.
“The House’s success is a clear reflection of popular support this issue has,” Corbett said. “I want to thank Reps. Mike Turzai and John Taylor for their strong leadership on this issue.”
Every Democratic legislator in the Pennsylvania House of Representatives voted against a liquor privatization scheme that will end up increasing confusion and costing consumers more money.
Democratic Leader Frank Dermody (D-Allegheny) said the Republican-authored bill would result in huge job losses, higher liquor prices, decreased product selection, and greater problems for law enforcement in combating underage drinking.
“This liquor bill reveals the misplaced priorities of the Republican majority and the governor,” Rep. Dermody said. “At a time when unemployment is rising in Pennsylvania, they are pushing a bill that would put 5,000 more people out of work and would favor large private liquor sellers at the expense of consumers and small businesses.”
He noted that Democrats tried to amend the bill Wednesday to improve and enhance, rather than discard, the existing system of alcohol sales. The amendment was rejected by the Republican majority.
“Democrats want more convenience for consumers, not more confusion,” Rep. Dermody said. “We also want to keep in place the strong protection against underage purchases that is such an important facet of the current system.
“We support flexible pricing, and longer store hours on Sundays. We support putting more wine and spirits shops inside or next to grocery stores. We support direct shipment of wine to consumers,” he said.
Rep. Dermody and other Democrats lamented the weeks spent on this issue by the governor and his allies when other issues which demand attention, including Medicaid expansion, transportation funding, and improving schools, have languished.
“This continues the pattern that this governor has established during more than two years in office,” Rep. Dermody said. “He ignores the issues that require the most serious engagement and chooses instead to concoct solutions where problems don’t even exist, just to satisfy an ideological agenda supported by his corporate benefactors.”
Senate Democratic Law and Justice Chair Jim Ferlo (D-Allegheny) and Senate Democratic Leader Jay Costa (D-Allegheny) released statements expressing their opposition to the passage of the wine and spirits privatization plan in the House.
"Gov. Corbett and House Republicans are giving away an important public asset in their ideological thirst for privatization,” Sen. Ferlo said. “Their plan will destroy consumer choices, reasonable prices, family sustaining jobs, and it will cause social disruption in our communities.”
Expressing disappointment on behalf of his constituents, Ferlo questioned the motives in the privatization plan.
“Through today’s vote for wine and spirits privatization, Republican leadership in the governor’s office and the state House continued its assault on the middle class, showing no hesitation in eliminating family-sustaining, middle class employment in favor of giving their rich allies a chance to sell alcohol and pocket the profits.”
Sen. Ferlo strongly maintains that a better approach is his modernization bill; legislation that has gained 26 bipartisan co-sponsors. The bill would allow for more appropriate pricing, flexibility in hiring, acquisition of in-demand products and direct shipment of wine, while also providing for package reform in beer sales.
Sen. Costa has long maintained the lack of need for privatizing the Liquor Control Board operations.
“I am very disappointed by the passage of the liquor privatization legislation by the House,” Sen. Costa said. “Instead of privatizing we should be modernizing the wine and spirits system. We should not be ceding the control of alcohol to companies that are driven by profit and not control.”
Sen. Costa expressed his deep concern about the loss of thousands of jobs to hard working Pennsylvanians, amidst the potential, significant loss of revenue for the Commonwealth.
“The republican scheme to rely on one-time revenues while cutting thousands of family-sustaining jobs opens a door to fiscal instability that we will never be able to close. The House vote today puts hundreds of millions of dollars in the balance, and thousands of dedicated employees are caught in the middle of this debate.”
Sen. Costa asserted that divesting our current system for one that offers no future guarantees is a gamble that no one should be willing to make.
“This is the wrong time to allow a massive expansion of access to alcohol without proper safeguards,” continued Sen. Costa. “The liquor plan that passed the House is purposely confusing and convoluted and its passage was driven by special interests and political expediency.
“Gov. Corbett’s liquor expansion plan takes Pennsylvania in the wrong direction,” Sen. Costa said.House Passes Liquor Privatization Bill
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