The governor has vetoed a historic liquor privatization plan.
As a part of the state budget negotiations, the Republican majorities of the House and Senate have approved a privatization plan for wine and liquor sales that opens up the door for retail grocery sales of those products for the first time in Pennsylvania.
The bill is an amended version of House Bill 466, sponsored by Representative and Speaker of the House Mike Turzai (R-Allegheny). The amended version sets into place a process for the gradual closure of traditional state stores and opening up sales of wine and liquor sales under different permitting options:
Enhanced Permits
Enhanced permits for both wine and liquor refer to retailers currently holding distributor licenses. They can sell unlimited amounts of wine and liquor. The initial permit is $45,000, with annual renewals ranging from $2,000 to $6,000 based on sales. Stores would be permitted to sell between 8 a.m. and 11 p.m.
The amended bill creates a highest-bid auction procedure for an unlicensed enhanced permit in the event that there are more wholesale facilities than enhanced permits in one county. The minimum bid that can be made to the LCB for an unlicensed permit is $150,000. The same conditions regarding renewal fees, hours of operation, and compliance requirements apply.
Expanded Permits
Expanded permits refer to any agency with a restaurant or hotel license. Expanded permits are allowed to sell single transaction limits of 192 ounces of wine and 1.75 liters of liquor. The initial permit is $2,500, with annual renewals ranging from $1,000 to $3,000 based on sales. Stores would be permitted to sell between 8 a.m. and 11 p.m.
While this compromise bill does open an avenue for some PFMA members to begin selling wine and liquor, it does contain provisions with which PFMA is actively advocating to change. The prohibition that prevents fueling stations from attaining a permit is strengthened to include any store with an “internal connection” to a fueling station to have to receive LCB approval. The limits on quantity for expanded permits and a lack of new licenses are also troubling. Nonetheless, this represents the first positive momentum towards private wine and liquor sales in Pennsylvania’s recent history.
That positive momentum was scratched with the Governor’s pen. The bill, along with many of the measures passed by the Republican legislature in the budget process, was vetoed. But this bill remains in play as a potential compromise piece, and PFMA will continue to advocate for the consumer convenience of private retail wine and liquor sales.
As a part of the state budget negotiations, the Republican majorities of the House and Senate have approved a privatization plan for wine and liquor sales that opens up the door for retail grocery sales of those products for the first time in Pennsylvania.
The bill is an amended version of House Bill 466, sponsored by Representative and Speaker of the House Mike Turzai (R-Allegheny). The amended version sets into place a process for the gradual closure of traditional state stores and opening up sales of wine and liquor sales under different permitting options:
Enhanced Permits
Enhanced permits for both wine and liquor refer to retailers currently holding distributor licenses. They can sell unlimited amounts of wine and liquor. The initial permit is $45,000, with annual renewals ranging from $2,000 to $6,000 based on sales. Stores would be permitted to sell between 8 a.m. and 11 p.m.
The amended bill creates a highest-bid auction procedure for an unlicensed enhanced permit in the event that there are more wholesale facilities than enhanced permits in one county. The minimum bid that can be made to the LCB for an unlicensed permit is $150,000. The same conditions regarding renewal fees, hours of operation, and compliance requirements apply.
Expanded Permits
Expanded permits refer to any agency with a restaurant or hotel license. Expanded permits are allowed to sell single transaction limits of 192 ounces of wine and 1.75 liters of liquor. The initial permit is $2,500, with annual renewals ranging from $1,000 to $3,000 based on sales. Stores would be permitted to sell between 8 a.m. and 11 p.m.
While this compromise bill does open an avenue for some PFMA members to begin selling wine and liquor, it does contain provisions with which PFMA is actively advocating to change. The prohibition that prevents fueling stations from attaining a permit is strengthened to include any store with an “internal connection” to a fueling station to have to receive LCB approval. The limits on quantity for expanded permits and a lack of new licenses are also troubling. Nonetheless, this represents the first positive momentum towards private wine and liquor sales in Pennsylvania’s recent history.
That positive momentum was scratched with the Governor’s pen. The bill, along with many of the measures passed by the Republican legislature in the budget process, was vetoed. But this bill remains in play as a potential compromise piece, and PFMA will continue to advocate for the consumer convenience of private retail wine and liquor sales.
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