The legislation is expected to be finished by July 1, however it has not received any Democratic support yet.
While Republican Pennsylvania state senators continue to seek support for Bucks County Republican Sen. Charles McIlhenny’s resolution to liberalize wine, beer and liquor sales in the state, various representatives of the state’s alcoholic beverage distributors and its workers union spoke against the plan.
Mark Tanczos, president of the Malt Beverage Distributors Association in Pennsylvania, said the senator’s attempt to make liquor licensing and retail more convenient puts liquor specialty retailers at a loss.
Tanczos said offering 14,000 permits to various restaurants, hotels and convenience stores to sell and package alcoholic beverages “markets the dollar that thin.”
“It’s transforming those types of licenses meant for restaurants just selling a glass of wine or beer and letting them sell packages,” he said. “We feel alcohol in general should be sold by the primary retailers.”
Tanczos also referenced the risks of selling alcohol in locations such as a convenience store, noting most are commonly used by teenagers.
“It’s not good public policy to make business there, where the people there are usually between 16 and 21,” he said. “You don’t want to put alcohol in that environment.”
Wendell Young, president of United Foods and Commercial Workers Local 1776, agreed the increased locations may not be in the best interest of communities, and added that the health and safety issues regarding alcohol may be affected as well.
“When you increase the outlet density, you’re going to increase consumption,” he said.
Young also said the benefit of convenience for consumers will bounce back as a pain to their wallets.
“The legislation refuses the way Pennsylvania Liquor Control Board is able to price,” he said. “We lose the flexibility to price the products, regardless of marketing conditions of that product, so we’re going to have our hands tied behind our back.”
Young added that publicly-owned retailers are self-sufficient and beneficiary to the state budget.
“Our liquor stores are very profitable,” he said. “This year we contributed $700 million to the state, which is $170 million more than last year’s total.”
“Not everybody drinks, but the system still benefits everybody,” he said.
A report from the office of Pennsylvania Treasurer Robert McCord also caught Young’s eye, wherein McCord showed the first-year results of the privatization of liquor sales in the state of Washington, which began on May 31, 2012. The report showed a total price increase in taxed liquor every month, plus a 32 percent increase in the annual liquor excise tax rate from 2011.
McCord also reported that Pennsylvania’s 2013 liquor excise tax rate was a 5 percent decrease from 2011.
“It’ll be fine for those retailers making more sales, but the taxpayers of Pennsylvania will have to pick up the bill,” Young said.
Lawmakers’ last day in office before summer break is expected to be July 1, and Gov. Tom Corbett expects the legislation to be finished by then.
Tanczos said he expects all 23 Democratic state senators to be “firmly against” the legislation.
“They have a challenge against this, but again you really don’t know,” he said.