Posts

Senate Liquor Privatization Bill Unveiled

/in /by

The long-awaited and much-anticipated Senate version of liquor privatization legislation is now officially unveiled. State Senator Chuck McIlHinney uncorked his proposal Tuesday after chairing a series of public hearings in his Senate Law & Justice Committee.

McIlhinney’s proposal would expand the carry-out sale of wine and spirits to more than 14,000 existing license holders, such as restaurants, hotels and beer distributors. Currently, their licenses only allow for the sale of alcohol to be consumed on the premises. There would be annual fees for permit holders…$8,000 for wine AND spirits; $4,000 for wine OR spirits only; and a $2,000 specialty permit to sell only a specific category of spirits (brandy & Cognac, cordials, gin, rum, tequila, vodka, whiskey).

The legislation would dramatically expand the access to alcohol for consumers, but the state would maintain wholesale control of the system for at least two years, during which a study will determine the next steps, which could include total divestiture of the wholesale system.

State stores that currently sell wine and spirits will be evaluated based on the expansion of sales in each given area. Some stores may be closed, others may remain open. There are also reforms for packaging and shipping included in the Senate version of the bill, including allowing direct shipments from wineries to PA residents. The onerous 18% Johnstown Flood Tax would also be eliminated under the proposal.

While Governor Tom Corbett wants any privatization proceeds to go to an education block grant, Senator McIlhinney’s bill directs funds to a Property Tax Freeze program for seniors. Additional money would also be set aside for rape crisis and domestic violence programs.

Critics say the plan would cost PA taxpayers tens of millions of dollars in lost revenue.

McIlhinney said Tuesday that the legislation has the votes to make it out of committee, but he does not yet have enough votes to pass the proposal in the full Senate. Governor Tom Corbett has said he wants a privatization plan passed before lawmakers finish their work on the state budget and head out for their summer break.

 

Senate Liquor Legislation Expected Today

/in /by

State Senator Charles McIlhinney is expected to unveil his legislation today dealing with the liquor business in Pennsylvania. McIlhinney recently chaired a series of hearings on the proposal to privatize the booze business in PA, hearings that sometimes became contentious as union-backed opponents of privatization, including some lawmakers, expressed their outrage at the plan to close more than 600 state stores across the Commonwealth.

What will be included in the Senate bill is still a mystery, but McIlhinney indicated during the third and final hearing that he did not support Governor Tom Corbett’s plan to use the proceeds from the sale of the state stores for education block grants. The governor calls the plan “Passport for Learning.” Opponents dubbed it “Shots for Tots.”

The state House of Representatives passed a plan earlier this year that did not include the block grants. It is possible the Senate could follow suit and propose a privatization plan that does not include specifics on the use of the proceeds. In that case, the money would be set aside and its use would be determined at a later date.

Governor Tom Corbett has been pushing privatization since taking office in 2011. He says the state should not be in the business of selling alcohol, but the elimination of the state store system would mean the loss of thousands of jobs, and despite plans for job assistance, it’s unlikely that all state store and PLCB employees would find immediate work.

Meanwhile, retailers like Pennsylvania-based Sheetz convenience stores are pushing hard for the privatization effort. Sheetz employees wear pins promoting the potential sale of beer and advocates for the various chain retailers have been regulars on Capitol Hill in Harrisburg. It is arguably the most heavily-lobbied issue in a year full of big issues in Harrisburg.

Most agree something has to change, but privatization opponents are pushing for what they call a “modernization” effort. For now, that is likely to be the fallback Plan B should privatization fail to pass before the summer break.

 

Chorus of Booze

/in /by

Tempers flared at the third and final public hearing for the governor’s liquor privatization plan before the state Senate Law and Justice Committee in Harrisburg Tuesday. As union members lined the back wall of the hearing room, Lieutenant Governor Jim Cawley and committee minority chair Jim Ferlo went at it.

Ferlo launched the first verbal assault, calling out the Secretary of Health, the Police Commissioner and a Deputy Secretary of Education for appearing with the Lieutenant Governor to promote a plan that would expand access to alcohol. Ferlo called their actions laughable and outrageous, while the union members in the room cheered him on.

Cawley fired back, however, seeming visibly angry at Ferlo’s attacks and saying the senator should be embarrassed for attacking three public servants as individuals rather than speaking to the issue at hand. Cawley was booed and jeered several times by the union members in the room.

The tense moments came toward the end of a long day of testimony that also included input from representatives of the beer and spirits industries, an economic analyst and union representatives.

Committee Chairman Charles McIlhinny will be the author of the Senate version of the privatization bill. He informed the Lieutenant Governor, a fellow Republican, that he was opposed to the administration’s plans to use the proceeds from the sale of the state stores to fund block grants for education, a plan critics say will do little to help in the classroom.

The state House passed its privatization bill in March, an amended version of the governor’s plan that takes out the public education aspect. That legislation has little chance in the Senate, but the two chambers may work together on a compromise plan before breaking for the summer.

 

RadioPA Roundtable

Radio PA Roundtable 03.01.13

/in , , , /by

On this week’s Radio PA Roundtable, Brad Christman and Matt Paul bring you more from the state legislative budget hearings, which included questioning on pensions and liquor privatization this week. Also, Radio PA’s Cathy Clark provides an update on the health of the Susquehanna River.

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/Roundtable03-01-13.mp3]

Liquor Board’s Balancing Act on Display at Budget Hearing

/in /by

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.

Wegmans Pulling out of Wine Kiosk Program

/in /by

The Pennsylvania Liquor Control Board is losing almost one-third of its existing wine kiosk locations.   Wegmans Food Markets has notified the LCB it will be removing the wine kiosks serving 10 of its stores in Pennsylvania, saying they did not fit well with the store environment.

 In a statement, the company said they hoped its customers would find the kiosks to be a valuable addition to their shopping experience, but that proved not to be the case.  The statement says customers want the convenience of purchasing wine in a supermarket, but found the choice of items too limited in the kiosk.   

Stacey Witalec, spokeswoman for the LCB, says the decision will not affect the kiosk program.  She says they’re focused on bringing convenience, selection and value to customers through the kiosk opportunity.  She says they will continue to focus on the locations that are still operating as well as any future opportunities.

There are 22 other kiosks statewide and a number of leases pending with Wal-Mart’s stores.

 Witalec says the LCB continues to evaluate the program, as they have done since the pilot launched last June.  She says they will continue to listen to their customers, making sure they’re seeing the selections they’d really like to purchase in the kiosk in their area.