Penna. Legislators Send Privatization Compromise to Governor

The Pennsylvania House passed, 157-31, and sent to Gov. Tom Wolf a partial privatization bill that makes sweeping changes in the way beer and wine are sold in the state.  But legislators were calling the measure “liquor modernization” to signal that it isn’t full privatization.

The bill covers only wine, which upset Distilled Spirits Council VP David Wojnar.  Moving wine but not spirits into grocery stores will devastate local, Pennsylvania distillers, cost the Commonwealth millions in lost tax revenue and fails to provide consumers the convenience they demand, he said.

The measure would allow the state’s 14,000 restaurants, bars, hotels, supermarkets and delis currently licensed to sell takeout beer to consumers to sell up to four bottles of wine to a customer.  It also codifies into state law a provision allowing the sale of beer at convenience stores.

Pennsylvania consumers will also be able to have wine shipped directly to them by private wine wholesalers.  At the same time, the state’s 600 state stores would get more flexibility about hours and pricing.  And they would be allowed to sell lottery tickets and set up customer loyalty programs.

But spirits sales would remain exclusively segregated in state stores, which would at the same time be reduced in numbers.

“If the state goes down this road, customers will be penalized and the state will lose money,” Wojnar warned. “Pennsylvanian consumers want a good selection of products at competitive prices – not segregated spirits that force them to make multiple shopping stops. Devaluing the state’s alcohol system through this completely ill-conceived plan makes the 76ers’ tanking look like a stroke of genius.

“Any new legal framework governing alcohol sales in Pennsylvania should be efficient, consumer-friendly and provide a level playing field for beer, wine and spirits. As more foot traffic goes from state liquor stores to grocery stores, local Pennsylvania distillers will suffer. And when the state loses millions in tax revenue, consumers will be left paying the tab,” concluded Wojnar.

Wolf issued a supportive statement, but stopped short of saying he would sign it:

“Today, the House concurred with the Senate on historic liquor modernization legislation that provides greater customer convenience to the people of Pennsylvania. As I have always said, my goal is to modernize the sale of liquor and beer in Pennsylvania to ensure convenience and satisfaction for customers.

‘Once the bill reaches my desk, I will conduct a final review of the legislation to ensure it meets my goals of enhancing the customer experience, increasing much-needed revenue to help balance our budget, and bringing our wine and spirits system into the 21st century.”

House Speaker Mike Turzai (R), the prime sponsor, said he believes  Wolf will sign the bill. “I’m quite positive the governor is going to sign this bill,” Turzai said. “He knows that the sale of wine and spirits has to move into the 21st century.”

 

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