Pennsylvania Considers Liquor Store Privatization

The legislation would allow convenience retailers to sell more than beer.

July 15, 2011

HARRISBURG, Pa. - A bill introduced this week in the Pennsylvania House would privatize the state??s liquor stores and allow supermarkets and convenience stores to expand into alcohol sales, the Scranton Times-Tribune reports.

State House Majority Leader Mike Turzai??s legislation would put 1,250 retail liquor licenses to auction, as well as gradually get rid of the 621 state-run liquor stores. Pennsylvania has been in the liquor-sale business for decades.

The licenses would fall into two categories: Class A (750 licenses) for large retailers and supermarkets with 15,000 or more square feet of retail space and a location in a "retail" zone; Class B (500 licenses) for independent merchants, such as wine shops and specialty stores. "The design is to make sure the entire state geographically is covered," said Turzai.

The measure would also open up liquor licenses to beer distributors, who could bid on the licenses to offer both beer and wine in the same store. In addition, the proposal redoes the state liquor taxes, eliminating the "Johnston Flood" tax and adding a per-gallon tax at the wholesale level.

Gov. Tom Corbett supports the legislation, but some lawmakers are against it.

State Sen. Jim Ferlo is misguided in thinking that the changes would result in illegal underage sales. "We would put the responsibility of alcohol sales in the hands of clerks at grocery and convenience stores, at a greatly increased number of locations, and expect that we won't see an increase in the number of illegal sales," said Ferlo.

Ferlo, meanwhile, obviously hasn??t considered the fact that convenience stores are already well versed in age verification procedures for age-restricted products such as cigarettes and other tobacco products.

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