What are the odds of privatization winning?

In answer to Goose's question it has a 0% chance at this point. 

There are far too many constituencies that need to be satisfied before this can get done.

The Democrats want to protect the union that staffs the liquor stores.

The Republican (and Dems as well) want to protect the small family run businesses that serve as the beer distributorships, bars, and taverns.

Liquor privitization will give the state a one time influx of cash to the general fund and will be a boon to big companies like Walmart, the big grocery chains, and the big convenience store chains (think Wawa, Sheetz, Rutters).



 

flowergirl wrote:

Isn't PA, if not the only state in the Union, one of the very few which still regulate alcohol sales like a bully parent?  Doesn't the state realize how much money it loses in taxes by residents going elsewhere for better selection and cheaper prices?  There's absolutely no legitimate reason to continue to operate under a system  whose uesfulness  passed decades ago. There a zillions of companies just waiting to hand over millions & millions to the state initially to get the licenses and continue to pass onto the state coffers the money they will continue to collect in taxes.  That the governor would veto a bill if this change passes is beyond my understanding.

No. Several states heavily control alcohol. North Carolina, Alabama, Texas, and Utah all have state run liquor stores.

What is different about those states (except Utah) is that they don't have the wacky beer and wine laws like we do. You can buy those items just about anywhere.

The primary argument for keeping the liquor stores is that they are revenue drivers for the commonwealth. And I'm not talking about taxes. That's seperate. That's the profit made on selling alcohol. Fred said it's $200 million. I think the number is closer to $150 million, but either way that money goes into the general fund.

We very well could take a one time deluge of cash (about 1 billion in licenses) but that would be it. In the long run, we'd lose that revenue.

Is it worth it? Honestly, I don't know.

I will say that we could do something about how heavily beer and liquor is taxes in PA. I have a client in New Jersey that I visit a couple times a week. I can pick up a case of Troeg's Nugget Nectar beer at a NJ liquor store for $42.

That same case in Pennsylvania costs $50. That's all taxes.

Privitizing the liqor stores will not keep booze buyers near bordering states looking elsewhere for cheaper drinks.
 

PA House passes liquor privatization bill
http://www.ydr.com/politics/ci_27603418/pa-house-passes-liquor-privatization-bill

Liquor could come to a privately owned store near you if the Pennsylvania House of Representatives has its way.House Bill 466 passed the House with a vote of 114 to 87, divided largely by party lines."Today's vote begins to move our Commonwealth out of a disjointed system of selling wine and spirits that runs against our free market system," wrote Republican members of the York County delegation to the house in a prepared statement following the vote."Most of us probably know someone in our region who regularly makes the trip south for adult beverages, maybe even throwing in a stop for something to eat at their favorite Maryland restaurant. It's time to bring that practice to an end and keep those consumer dollars north of the Mason-Dixon Line," the added.

Last edited by Common Sense (2/26/2015 5:06 pm)

Conspiracy Theory wrote:

Does this mean the LCB will be going away?

It could, but at this time the bill isn't expected to pass the Senate and even if it did, Gov. Wolf would veto it.

I took a look at the bill tonight and after a closer examination I think it's reasonable if you really want the state get out of the booze biz.

The bill calls for the State Stores to the sold and the wholesale operation to be dismantled.

Liquor licenses would be sold to beer distributors first, and at a reduced rate. Beer distributors could also begin selling beer by the 6 and 12 pack. Tavern and bar owners could sell up to 4-6 packs, up from 2..

Any liquor licenses not bought by beer distributors will be made available to the public, but at a higher price.

Some Dem legislators are complaining that if we privatized now, we wouldn't get the most value out of the state stores (the physical space). I agreed with this argument in 2010. But real estate is up and I believe the Commonwealth would get reasonable value for the properties.

So I guess it comes down to whether you want to give up the yearly revenue we get from the state stores for a one time cash fix, or if you just have a philosophical disagreement with your government selling hooch.