After about seven hours of debate just five Republicans--Representatives Paul Clymer, R-145, Gene DiGirolamo, R-18, Frank Farry, R-142, Mark Gillen R-128, and Tom Murt, R-152--broke ranks to join with Democrats in opposition to the plan by Pennsylvania Governor Tom Corbett (R) to dismantle to state liquor store system.
"Today is truly a historic day," Corbett said. "Never before has a liquor privatization bill passed through either chamber of the legislature, and I am extremely proud of the hard work and commitment the House and their leadership have shown to the people of Pennsylvania today."
Groups which have come out in opposition to the Governors liquor privatization plan include MADD, SADD, the U.S. Centers for Disease Control, the PA Fraternal Order of Police, Professional Firefighters, the NAACP, Pennsylvanians Concerned About Alcohol Problems, the Association of Staff Nurses and Allied Professionals, and the CLEAR Coalition.
The CLEAR Coalition represents 1.1 million working Pennsylvanians is concerned that HB 790 jeopardizes 5,000 PLCB jobs, 1,100 local beer distributors and the 12,000 jobs that those distributors employ. CLEAR called the privatization plan "shortsighted" and "part of a flawed budget proposal that woefully underfunds vital state programs, including our public schools and vital healthcare services for our most vulnerable citizens."
"This is just bad public policy all the way around. It threatens good, family-sustaining jobs. It threatens more than $500 million a year in revenues and profits for the state. And it threatens the public health and safety in every community in our state," said Rick Bloomingdale, President of the Pennsylvania AFL-CIO.
Here are some highlights of the bill:
Retail Wine and Spirits
Grocery Stores – the bill provides that grocery stores will be able to apply for licenses to sell wine only for consumption off the premises. Application for licenses begins 60 days after enactment.
Quota is one license per each 15,000 residents of a county. Each county shall be guaranteed 2 licenses regardless of the number of residents.
- License Fees range from $97,500 to $187,500.
- Renewal fees are $2,000 or $4,000 depending on county classification, every two years.
- Sales may occur 7 a.m. to 11 p.m. every day except Sunday, unless a Sunday sales permit is obtained for an additional fee of $1,500 per year. Sunday sales hours are 9 a.m. to 9 p.m.
- No more than 12 bottles of wine may be sold in a single sale.
Beer Distributors – beginning 4 months after enactment currently licensed beer distributors will have first right of refusal for wine and/or spirits licenses for 12 months.
- Fees for wine licenses range from $7,500 to $37,500 depending on county.
- Fees for spirits licenses range from $30,000 to $60,000 depending on county.
- Beer distributors have the option of paying for wine and/or spirits licenses over 48 months but a 5% interest assessment is applied if the monthly payment plan is chosen.
- Distributors may obtain a permit for $1,000 that would allow the sale of growlers, 6-packs and 12-packs in any quantity.
- License renewal required every two years at cost of $1,000.
- Sales may occur 9 a.m. to 11 p.m. every day except Sunday, unless a Sunday sales permit is obtained for an additional fee of $1,000 per year. Sunday sales hours are 9 a.m. to 9 p.m.
New Retail Licensees – at the conclusion of the 12-month beer distributor application period, remaining licenses become available to other currently unlicensed entities.
Fees for wine licenses range from $97,500 to $187,500 depending on county.
- Fees for spirits licenses range from $142,500 to $262,500 depending on county.
- License renewal required every two years at cost of $1,000.
- Sales may occur 9 a.m. to 11 p.m. every day except Sunday, unless a Sunday sales permit is obtained for an additional fee of $1,000 per year. Sunday sales hours are 9 a.m. to 9 p.m.