Pennsylvania Food Merchants Association (PFMA) President and CEO David McCorkle submitted testimony to the House Liquor Control Committee today to suggest changes to Act 39, which allows food retailers with a restaurant license to purchase an expanded permit to sell wine.
“While I applaud our lawmakers for passing House Bill 1690, now Act 39, on June 1, 2016, I do hope they will consider the changes suggested by our members who want to provide a convenient and competitively priced product to their customers,” McCorkle said.
McCorkle asked the committee to consider changes to the Pennsylvania Liquor Control Board’s (PLCB) pricing structure. Currently, retailers with an R licenses are charged the retail shelf price minus a net 8 percent discount. PFMA members recommend the PLCB charge R licensees with expanded wine permits, the published cost of goods from the manufacturer, which includes the cost of warehousing and delivery, plus the 18% Johnstown Flood Tax.
McCorkle also recommends the 3-liter wine sales volume limits be modified to allow for single serve containers of up to 5-liters in volume, and products sold and delivered by licensed wine importers/brokers/vendors not be subject to further PLCB charges. He also asks that purchases not be limited for beer and wine sales, and for extending wine sales hours from 11 p.m. to 2 a.m., so that they are the same as beer sales hours.
HB 1196, which recently passed the General assembly and was signed by the Governor, eliminates the PLCB requirement for a separate, exterior entrance for restaurant license and wine expanded permit holders. This legislation passed after the submission of PFMA’s testimony, which asked for the elimination of the requirement, along with a change in the license approval process requiring the investigation of landlords, a costly process that holds up the approval of license transfers.
“Thank you to the Pennsylvania Liquor Control Board members who have worked tirelessly to implement Act 39 and have developed a system for licensees to get wine products on the shelves for consumers,” McCorkle wrote. “We ask the committee to consider the requested changes so that PFMA members can compete fairly in the marketplace and provide quality products at reasonable prices.”
