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Radio PA Roundtable 05.17.13

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On this week’s Radio PA Roundtable, Brad Christman and Matt Paul bring you another liquor privatization hearing, the push for Keystone exams and Governor Corbett’s reaction to the fallout from his last “Ask the Governor” appearance. The guys also bid adieu to Dunder Mifflin, Scranton, PA’s favorite fictional paper company.

Radio PA Roundtable is a 30-minute program featuring in-depth reporting on the top news stories of the week.

Click the audio player below to hear the full broadcast:

[audio:https://s3.amazonaws.com/witfaudio/radiopa/Roundtable05-17-13.mp3]

Busy June on Tap in Harrisburg

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The House and Senate are due back in session on June 3rd.  From there only 15-or so session days separate lawmakers form the state budget deadline.  But Governor Tom Corbett views every day as a working day, and there are plenty of policy issues he’d like to see addressed alongside a third consecutive on-time budget. 

“We need to focus on [liquor privatization], we need to focus on pensions, we need to focus on transportation, we need to focus on the budget,” Corbett said on the May edition of Ask the Governor.  “There has been work done behind the scenes.  I believe we can get this done.” 

Most capitol observers, however, would classify passage of two of the three big policy issues as a major victory for the Corbett administration. 

Senate Republican Leader Dominic Pileggi (R-Delaware) identifies transportation as the issue most likely to be completed before lawmakers’ summer break.  “We have very, very strong bipartisan interest in transportation infrastructure funding,” he says.  “I think that can certainly be done.” 

Trailing the pack of policy issues, Pileggi says, is pension reform.  “We have not even seen committee action on that plan to date and the bills have just been introduced… that is an incredibly complex and technically difficult task.”   

Following this week’s hearing on liquor privatization, Senate Law & Justice Committee Chairman Charles McIlhinney (R-Bucks) made it clear that he won’t start drafting a bill until after all three public hearings have been completed.  He does not view it as an issue that must be finalized this budget season.  The House version of a privatization bill (HB 790) is viewed as a non-starter in the Senate.

Testifiers Urge Panel to Consider Social Harms of Privatization

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A litany of testifiers foreshadowed the potential unintended consequences of liquor privatization during the first of three hearings to be held before the Senate Law & Justice Committee.  “We cannot look at expansion without first exploring how increased alcohol use may affect citizens of our state,” committee Chairman Charles McIlhinney (R-Bucks) explained at the onset. 

While McIlhinney says he wants to ensure ‘smart privatization,’ most testifiers on Tuesday seemed to think the smart move would be to retain state control of retail liquor and wine sales.  “What is the problem we’re trying to solve here?” asked Drug and Alcohol Service Providers Organization of PA president Deb Beck.  “We’re lowest on deaths and number two on revenue produced.  What’s the problem?”  Beck’s written testimony included a long list of sources for the numbers she pointed out to the committee. 

But by the start of the 9:30am capitol hearing many in the room had already received an open letter from the Pennsylvania Manufacturers’ Association that questioned the slanted lineup of testifiers, and pointed to other statistics that show Pennsylvania performing worse than privatized states. 

When questioned by one committee member, Fraternal Order of Police Pennsylvania State Lodge president Les Neri noted that everyone can find a study that justifies their position, but he can speak from experience.  “I’m telling you as a street cop, the guy who’s done the job for 38-years, that the increase in licenses and outlets for alcohol will increase crime.  I just can’t tell you by what statistic.” Neri explained. 

While the FOP opposes the liquor privatization bill that passed the House (HB 790), others on the law enforcement panel did not take a position; they merely pointed to the need for additional resources for manpower and investigations should lawmakers vote to privatize. 

The hearing concluded with a handful of middle and high school students from the Council Rock Coalition for Healthy Youth, who asked the panel to prevent privatization in order to protect Pennsylvania’s future.

Despite the onslaught of criticism his privatization plan received, Governor Tom Corbett released a statement thanking the committee for the hearing and asserting that public safety must be the number one focus of state government.  “The Senate took a first step in bringing Pennsylvania consumers choice and convenience,” Corbett said in the statement.  While the House amended his original plan, Corbett’s been taking a lead role in this year’s privatization debate. 

A second hearing is planned for May 14th and Sen. McIlhinney says a third will be scheduled for early June.  He says all sides of the issue will be heard.

Radio PA Roundtable 03.22.13

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On this week’s Radio PA Roundtable, Brad Christman brings you the vote from the state House of Representatives this week regarding privatization of the state liquor stores. Did lawmakers give the thumbs up? If so, will the bill pass the Senate?

Also, legislation to allow online voter registration in PA is making its way through the Senate.

Radio PA Roundtable is a 30-minute program featuring in-depth reporting on the top news stories of the week.

Click the audio player below to hear the full broadcast:

[audio:https://s3.amazonaws.com/witfaudio/radiopa/Roundtable03-22-13.mp3]

Committee Amends, Advances Liquor Privatization Bill

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Like the plan Governor Tom Corbett outlined in January, the amended version of HB 790 would create 1,200 new private sector wine & spirits licenses.  The big change is that existing beer distributors would be given the right of first refusal. 

The amended bill would also allow state-run liquor stores to stay open until the number of privately-owned license equals twice the number of state stores in a particular county.  As soon as the total number of state stores falls below 100, all remaining outlets would be closed. 

A limited number of grocery stores would also be allowed to purchase special wine-only licenses under the amendment that ultimately cleared the House Liquor Control Committee. 

“This committee will deal with HB 790 today, after which it will go to the full House of Representatives for a debate and possible amendments, after which it will go to the Senate, after which it will probably come back to the House,” Chairman John Taylor (R-Philadelphia) said while emphasizing this is just the first step in a long legislative process. 

Democrats on the committee repeatedly called for public hearings and more time to analyze the bill during some two and a half hours of debate.  “I just think this is getting more confusing, instead of making it less confusing for our consumers,” said Minority Chairman Paul Costa (D-Allegheny).

Moments after the debate ended with a party-line vote of 14 – 10, Governor Tom Corbett released a statement calling it a “momentous first step.”  Corbett says he will continue to work with the General Assembly to end the state’s role as the sole wholesaler and retailer of wine & spirits.   

While the original Corbett plan would have potentially generated $1-billion dollars from the upfront sale of the wholesale and retail licenses, the amended bill is only expected to generate about $800-million.

Pennsylvania Liquor Store

Liquor Privatization Bill Introduced

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The legislation essentially puts the plan Governor Tom Corbett outlined in January into bill form, and House Majority Leader Mike Turzai (R-Allegheny) is optimistic.  “People recognize Pennsylvania needs to change in a positive direction. We’re now talking about the details of how you structure that change.”  Turzai is the bill’s prime sponsor and perhaps the legislature’s biggest proponent of liquor privatization.    

While Turzai believes the concepts and objectives of liquor privatization will remain the same, he recognizes the details could change through the legislative process.  An amendment already being explored by Liquor Control Committee Chairman John Taylor (R-Philadelphia) would reportedly allow state-run liquor stores to compete with private sector licensees. 

State Rep. Mike Turzai (R-Allegheny)

House Republican Leader Mike Turzai

Turzai suggests that sort of plan merely takes a different route toward the same destination.  “In my mind, once the private sector gets the opportunity to sell wine & spirits, the state stores are – over time – they’re not going to be able to compete.”

The bill (HB 790) appears to be on the fast track.  Turzai tells reporters he’s eying a March 18th committee vote and final House passage in late March or early April. 

The timetable should raise red flags, according to House Democratic Leader Frank Dermody (D-Allegheny).  “Most legislators want to discuss ways to improve service and convenience for customers through the normal committee process, including hearings,” Dermody says in a statement.  “The more complicated his plan becomes, the faster he wants to vote on it with not committee hearings.”

Liquor Board’s Balancing Act on Display at Budget Hearing

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As the battle lines are being drawn on Governor Tom Corbett’s liquor privatization plan, the legislative debate may come down to privatization vs. modernization.  But the issues can be mutually exclusive.  Peppered by repeated questions from the Senate Appropriations Committee, Liquor Control Board Chairman Joseph Brion said he is not personally opposed to privatization.  “I don’t think the state should be in the liquor business.  But – by the same token – we are in the liquor business.  So my attitude is – if we’re going to have a liquor business – make it the most profitable and best that you possibly can.” 

Others have suggested that modernizing the system now, will make it more valuable for possible privatization in the future. 

The Liquor Control Board transferred $530-million dollars to the state’s General Fund in the current fiscal year, but Monday’s testimony in the Senate hearing room indicated that more than 80% of the cash was generated by taxes, which would still be in place under a privatized system. 

Not lost on lawmakers weighing these difficult issues is the cost of enforcing the state’s liquor laws.  “Clearly if you’re going to have more licensees, you’re going to need more feet on the ground, and that’s okay, but we have to take that into contemplation when we review the legislation,” says state Rep. Scott Petri (R-Buck), a member of both the House Appropriations and Liquor Control committees.   

State Police Commissioner Frank Noonan, last week, estimated that his agency would need an additional $5-million dollars under a privatized liquor system.  Liquor Control Board officials have indicated that they’re regulatory costs total $38-million dollars today, but those are currently covered by the revenue they generate. 

Forthcoming legislation would appropriate $5-million more dollars for PSP’s Bureau of Liquor Enforcement and hike fines for liquor law violations.  House Majority Leader Mike Turzai’s latest bill is set to be introduced on March 4th.