HARRISBURG, Pa. (WHTM) -
After months of speculation and talk, a bill is finally on the table that would get Pennsylvania out of the business of selling liquor.
House Leader Mike Turzai unveiled legislation Wednesday that calls for the state to sell to the highest bidder 1,250 retail licenses, more than double the current 609 state stores.
Under his legislation, House Bill 11, 750 Class-A licenses would go to grocery stores and "big box" retail outlets, while the remaining 500 Class-B licenses would go to smaller, independent operators. Beer distributors would be permitted to hold retail liquor licenses.
Anti-monopoly provisions would exist for both retail and wholesale licenses. For example, no one entity could own more than 40 Class-A retail licenses, and no more than 10 percent of retail licenses in any one county.
Turzai said his plan would impose an $8-12 "gallonage tax," but eliminate the 30 percent markup imposed by the Pennsylvania Liquor Control Board and the 18 percent emergency tax, sometimes called the Johnstown Flood Tax. A $1.50 per bottle "handling" tax imposed by the PLCB would also be abolished.
Turzai insists his plan will create more revenue for the state, and better selection and cheaper prices for consumers.
"I think the market will dictate it, and by and large you're going to see lower prices," he said.
Wendell Young, president of the union local that represents state store workers, argued that Turzai's math is fuzzy and his plan will cost the state money and jobs.
"I think we heard today how much Mike Turzai doesn't know what he doesn't know," Young said. "It's embarrassing and insulting to see Mike Turzai stand here with a smile on his face and say people will be OK. Five-thousand people are gonna be put out of work as a result of this."
Midstate Republicans are generally supportive.
"I'm not looking for a liquor store on every corner," Sen. Mike Brubaker (R-Lancaster) said. "If that's where it ends up, I'll certainly be opposed. My position is, right now I'm open."
Pennsylvania currently is one of only two states that have complete control over wholesale and retail operations. The current monopoly was created in 1933 by then-Gov. Gifford Pinchot, who said the PLCB's mission was to make liquor sales "as inconvenient and expensive as possible."
Turzai joked that they've done a good job.
"No agency has made a more significant case for its elimination than the LCB," he said.
Turzai said the Liquor Control Board would continue to be in charge of enforcing liquor laws, licensing, inspections and alcohol education.
His bill would also provide support for displaced employees, including tax credits for the employers who hire them, tuition assistance to further their education, and preference when applying for other civil service positions.
Gov. Tom Corbett has said he supports privatization and is awaiting results of a study on the topic. A statewide poll by Quinnipiac University last month showed that 69 percent of Pennsylvanians favor selling the state liquor stores.
