Tuesday, April 27, 2010

PA getting out of the liquor business?

Direct from the state legislature, courtesy, Bob Godshall.

Rep. Mike Turzai (R-Allegheny) unveiled legislation this week to privatize the wholesale and retail operations of the Pennsylvania Liquor Control Board (PLCB). The bill would auction off 100 wholesale distribution licenses and 750 retail store licenses to the highest responsible bidders. The auction of the licenses is expected to bring in a minimum of $2 billion in revenue. Tax changes under the bill are predicted to generate $500 million annually; the current system brings in approximately $375 million in tax revenue. Presently, the PLCB owns and operates 621 state stores throughout the Commonwealth and is responsible for the purchase and distribution of all wine and spirits within the state. The sale and distribution of beer would not be affected by the legislation.

I'm all for this; the state shouldn't be in the liquor business anyway. Open it up to competition and we all win.



What's your take?

35 comments:

Eric said...

This is great. But why not beer too? I want to buy everything in ONE store. Isn't that the rub anyway?

Anonymous said...

Well the State Stores here in PA are unusual because here in our area they are open every day and set hours. But up-country near the NY Line, Part Time and the hours vary. In one village the gentleman running the store, usually will be having breakfast and lunch with the local business men and the time spent may vary - on the door of the Liquor Store it reads will be back in approx. an hour or out for lunch/breakfast. Interesting!

Anonymous said...

That is one reason to get out of the business Anonymous.

Anonymous said...

The revenue from the Liquor Sales goes to??? Why would it not pay to have individually owned stores and they could stock as needed the type of liquor,wine or whatever the area prefers. It really could be a great thing for the small areas that treat their customers like most customers would prefer to be treated. The price may be a little higher or lower - but that is the gamble. We really can not afford to stay in the Liquor Business here in PA - the borders are too close and the prices always right.

Anonymous said...

Isn't it about time to privitize our States liquor business so that we would be more competitive with other states. In the long run this would be more beneficial to Pennsylvania in taxes collected and monies spent in state by increased volume. Just my two cents.
Pete Schrack
Trooper, Pa

Montco PA Dem said...

This is one issue (one of the few) where I probably don't ride on the Democratic bus. I think most Dems would be in favor of keeping the state stores and union jobs therein.

But if we can realize a net annual gain in revenue, plus the one-time bonanza from selling off licenses and real estate, then it's time to ditch this antiquated set-up and let it go private. Just build in a clause to all the new licenses that protects all current employees or guarantees a certain amount of severance. I'm sure that could be worked out.

And before anybody starts with the "Well then, what about all those other government services that could be privatized?"...No. I just don't see why the state needs to sell liquor.

Now let's talk about legalizing and taxing pot. I also think we should do that, and we'd make a boatload of tax income from it.

Anonymous said...

The "State" has it made with their State Stores and control over Beer Distributors. The increase in the hours of operation also the number of Tappies that have no restrictions on how many one person can consume in a given hour. With the the local and state police waiting for the 1:00AM hour to check out the drivers - Did you say "Fines" or "First Offense" and "Jail Time"!!!
Well the saying at most eateries with a license is "Push The Booze" - Why, you say? Check your bill - food vs Booze? There is money to be made, but right now I see the "STATE" being the winner,don't you?
The "State" could benefit more if we did not have to pay salaries,benefit and rental space plus utilities for more often than not brands that we have no interest in. Turn over the buying to the locals and let them pay the "State" for this privilege.

Knee -Jerk Liberal said...

It is such a comfort to learn that our sober, serious models of decorum in the Legislature have not lost their heads entirely and will continue to control the beer distribution in our Commonwealth. They don't want us to fall into the familiar traps they have learned from experience at their own modest, low-budget keg parties, right?

And apparently now we know where the real money is and why the beer distributors went ballistic when Sen. Rafferty proposed legislation allowing us to buy less than a case of beer at a time.

I have bought liquor, wine, beer and food at the same store in a number of other states and I feel very strongly that PA should have privatized the whole business years ago. It is another area where we remain in the Dark Ages.

Anonymous said...

We need to know what the PROFIT is currently here in PA - It probably should be divided into Brands,amounts purchased,personnel responsible/needed and locations and their cost for rental. The amount paid each employee and their qualifications is another reason most of us feel the state should not be in the business.

Anonymous said...

Stan, I think this is the first time I can that I agree with you. But it's one thing for a bill like this to be introduced; getting is passed will be another thing.

Anonymous said...

Actually our State Store looks like a Wine Store. When we are in need of various brands for a social, we head to NY or Del. - one bottle is all that is needed, but PA they don't handle it. It sucks!

Anonymous said...

State Stores Closed on Sundays? Well, it just depends...Collegeville is in Montgomery County, so the rules change I guess who the manager is. Sunday is like any other day up there.

Anonymous said...

Hey Stan:

This would be GREAT. Do you know how many folks travel to DE & MD for Beer and Liquor. ie: Bud 30 cans in PA is approx. $25.00. I go to DE and pay $15.99 - No Tax. Plus why are we still paying Tax for the Johnstown Flood on liquor. Look it up. We actually are. Give me a break!

Anonymous said...

Ok the Profits on the sale of Liquor was for the Johnstown Flood Relief. Where are we hiding the profits? Our family keeps them busy around the Holidays, but of course we could go to Delaware too. I believe this is one business that needs to be looked into and the profits destination.

Anonymous said...

We do need to get out the Liquor Business. Right now we are hurting ourself. We pay out almost as much as we take in. If we are using the so called profits on our roads or whatever, the let the big guys take over and we can place a tax that will actually bring in some money with zero output. Can't help if the Unions don't like it - let them negotiate with the big guys for their salary and retirement. We can not afford to keep the Liquor Business under PA Government Umbrella.

Anonymous said...

The Front Page Picture in the TH showed breaking ground for housing of Weekenders. The saying "Build it and they will come" applies to this situation. PA is in the business that supplies the liquor and the consumers sees no bottom and end up in Eagleville costing the STATE and THE COUNTY MONEY. I do believe our Township and County should bill the State Liquor Control Board for causing all our problems. The supply and demand is there via PA Liquor Control Board. Right next door we have a hospital that caters to those suffering from too much liquor and drugs. There are plenty of small business men/women that would love to take over and pay their fair share of taxes to the State if they were permitted to purchase the type of liquor they know would sell. Building facilities just to house over-consumers can no longer be tolerated - the STATE is to blame for issuing license without more restrictions that should be part of the procedure.

Anonymous said...

What does the Union have to do with the overall business of Liquor?? The Liquor Control Board and any person working for this Board should not be Unionized. At any point this Board could cease or this type of business outsourced/discontinued. My vote is for Out-of-here for the PA Liquor Business. Let small business owners take over. Stop building larger prisons to house the weekenders - here in PA the Government must assume part of the problem of these people who frequent bars and stay too long, the plus for the owner, end up spending their weekends behind bars and in some cases will have no jobs to return to. Sad!

Anonymous said...

Just read that we will soon be able to purchase wine in our Grocery Stores - but one requirement would be for you to have a test (breath)to see if your are intoxicated. If this type of device is used in Grocery Stores - then maybe all Bars and places serving drinks should use this device to make sure the customer does not have one too many. Well, no it's not quite like carding,it is the amount consumed because some customers have no idea what his capacity should be and still drive/walk.

Anonymous said...

Supply and Demand.. We really do need to get out of the Liquor Business. One comment was made that the state shares the blame for so many accidents due to Liquor Consumption. Here is another idea - why not have the Liquor Control Board be responsible for 1/2 of the Prison Budget that is targeted for weekenders mostly. I'm sure our State would get out of the business. Cause and Effect..

Anonymous said...

I believe we should not be in the Liquor Business. Exactly how many stores/outlets do we have here in PA? How many people are employed, including the cleaning person? Who does the purchasing? What are the standards? What is the bottom line - Income & Out Put. The number of persons per day/week that are picked up for "under" the influence?? Now, you see where we are going...Need less employees and less need for additions to the present prison system. One person mentioned this, now I am a believer.

Anonymous said...

Would you believe we could create jobs?? Take PA out of the Liquor Business and watch how fast the Eagleville Prison empties over the weekend. When Linfield had their Row Homes for Kinsey Employees - Friday and Saturday were quite busy for Law Enforcement. The good olde days! Broke and Drunk is exactly how the depressed era went back then.

Anonymous said...

Columbus Day - many State and Federal Offices and Services are closed - except the Liquor Stores!! Now, tell me this - Would it not be great if individual owners owned these stores and just common people that know the liquor business ran the stores? Just think of the number of people that could be employed and the selection we all could have. Sorry Columbus, you did not get the "Super Holiday Statis" here in PA.

Anonymous said...

PA can not get out of the Liquor Business BECAUSE they are Unionized? I watched a talk show on Public Cable and this was dropped in. I would think that any employee would be greatful to have and employer that ran the store he worked in. After all, most would be local owners and the type of liquor purchased would be what customers preferred, not by some so called higher ups decision. We need SMALL BUSINESSES here in PA and less expenses on the state side...think about it!

Anonymous said...

I'm glad we have one candidate for Governor that thinks exactly how most Pennsylvanians do - Get Out Of the Liquor Business!!! More money would be made and the Expense side for PA would go Way, Way Down. We need clear thinking people running our State - so here in November let your finger(s) and the brain work together for all of us here in Pennsylvania.

Anonymous said...

We have elected Clear Thinking people to various offices. The newly elected Governor has said from time go that he would like to see the Liquor Stores/Purchases that go with it all be privatized . That is forward thinking, but the Unions do not like it. Now, who is running our State of Pennsylvania? If the Unions would like to take over the cost of the Liquor Business and pay for all post employment benefits that now go with jobs, then maybe we all can listen to their plan. But, right now we need new jails and the many cases that are liquor involvement, that are in our courts, and of course a lot of marriage counseling that are headed for divorce court are a great burden for County and State. Think about it!

Anonymous said...

There is a saying that started with a movie about baseball and it goes something like this "Build it and they will come"... Well, the State of PA is building newer prisons and there is one in our backyard. Most of the prisoners have had a bad experience with liquor...so Anonymous you are right, we need to get out of the liquor business because WE ARE THE PROBLEM!

Anonymous said...

Listening in on a conversation - one gentleman remarked about all the fuss over the liquor business. The possibility is NONE he said, they are just trying to break up the Union. How many here in PA work for the State that are actually Union Members? Is it a closed shop? Well, if that is the case it should be placed on the ballot so all taxpayers that are registered to vote can make the decision after all the hard numbers $$$ are considered.

Anonymous said...

My husband said the idea to let stores in areas be under a contract to buy or lease is just another way to break the Union. Please some person that has knowledge about this subject get on the ball and let us know who is running our Liquor Control Board? Is it Unionized from go or just clerks?

Anonymous said...

Out of business for the Liquor Control by PA. Sounds great, now how much will the tax per bottle be? Maybe we will not need to build another prison.

Anonymous said...

Listening to the men folke this past Sunday regarding the liquor business and without saying anything, one man said "Well this only comes up when we have a Republican Governor"!!! I do believe it was for my ears and this time not one word in response. We shall see what comes up and how it is presented in the next year or so...!!!

Anonymous said...

Our President had a "Super Football Party" which included some ale/beer made with "honey". Is that beer offered here in PA at our local Beer Distributors? I found the whole article written about his function interesting since the game was on "FOX". I guess the "honey" made it go down a little more easy since that network is a NO! No!

Anonymous said...

Getting back to the Liquor Business here in PA. I guess it could come under What Should Be or What Should Not Be when it comes down to dollar and sense.
We all know that most people like the State to foot the cost of the various Liquor Stores. But then there are quite a few that think let the small businesses take over. Well, for the very small communities a P/T Liquor Store with a very small inventory is just fine with them. Now, here in Montgomery, Chester, Berks, Bucks and Chester the more stores the better, because it is convenience that counts.
So, John Rafferty needs to take a long hard look at both sides, which I know for sure he will, before suggesting a change. We will have less stores, because of the cost for the license, now that is cents vs sense. Keep tuned to the action that will be taking place over the next couple years.

Anonymous said...

As long as we have the three party system that actually make decisions here in PA, we will have the State Liquor Stores. The third party you ask? Oh, it is the Unions. The way the stores are setup, there isn't any way a small business man could afford to run an establishment even close to the way we now have it. I'm talking about the overhead, not the employees that are union.

Anonymous said...

The Tax on Liquor started because of funds needed due to the Johnstown Flood. Now that flood that caused many bridges to fail should have been paid for a long time ago. So, where is the money now? We should have no problem building bridges here in PA. Was the Rob Peter To Pay Paul system used?

Anonymous said...

Rob Peter to pay Paul? Well, when PA goes out of the Liquor Business, we will probably see an account showing a big plus sign in an account some where. Then and only then will our Bridges/Roads be repaired. Did you say dream on?? Well, exactly who was responsible for spending the funds? Living or dead - we need to know and they or the department that used the funds be accountable. No more Peter or Paul..