Conservatives Line Up for Liquor Privatization Fight

By Keegan Gibson and Caroline Johnston

Pennsylvania House Majority Leader Mike Turzai (R-Allegheny) today unveiled his latest effort to privatize PA’s liquor stores, and conservatives wasted no time preparing for an all-out battle in the fall.

The conservative Commonwealth Foundation think tank, long-time advocates of selling off state liquor stores, celebrated the move.

Supporters believe the money will be there, too. A new advocacy group called ModernizePA appeared today for the sole purpose of pushing the issue.

ModernizePA will be a well-funded effort to help coordinate the coalition of people and groups in favor of getting PA out of the liquor business, says one conservative insider close to the project. The source expects that conservatives, Turzai supporters, and industry groups (retailers, wholesalers, big box stores, etc) will provide the bulk of its financial backing.

Hat tip to the Commonwealth Foundation, source of this and other hilarious anti-LCB designs

Turzai’s Bill

A strong hat tip to John Micek of the Morning Call, who reported on the subject earlier today. Turzai’s plan involves doubling the number of liquor and wine stores as well as eliminating the Pa Liquor Control Board’s 30% markup and the state’s “handling fee.”

This push comes one week after the Liquor Control Board released it’s fiscal report, which marked a $2 billion dollar increase from last year’s sales.  Pennsylvania and Utah are the two states with liquor stores run by the state. Turzai hopes the legislation will modernize the state’s liquor system by doubling the liquor outlets and remove state’s from businesses.

#privitizeliquor soon became a Capitol trending topic as reporters rattled off tweets from Rep. Turzai’s press conference today. Many focused on the olive branches Turzai offered along with his proposal, namely increased funding for tuition assistance, as well as aid for displaced state store employees.

Laura Olson from Pittsburgh Post-Gazette tweeted: “State store union members spoke out several times during Turzai’s #privatizeliquor presser. He ignored their comments/questions.”

Roxbury News tweeted: “Turzai: “We think it’s a win, win, win, win for everybody.” #plcb.”

Capitol Ideals tweeted: “Turzai bill would provide tuition assistance and tax credits for displaced state store workers.”

After the conference, conservative Jim Christiana (R-Beaver) voiced his support on his Facebook page.

“Just attended a press conference unveiling a plan to privatize the outdated and antiquated system of the LCB. No longer should the state have a monopoly of booze. Pa is one of only 2 states w/ a monopoly.”

Rep. Justin Simmons, who is surveying constituents on their opinions toward privatization, approved of Turzai’s plan before his colleague began speaking today. Roxbury News tweeted, “Simmons: “I’m a firm believer of limited government. We live in a free market society. Free markets work.” #plcb.”

Turzai will do away with the Johnstown Flood Tax that places an 18% tax on liquor; Turzai proposes to replace the tax with the “Gallonage Tax” ranging from $8.25 – $12.00 depending on the product.

Turzai’s plan establishes 2 tiers; his idea will have 1,250 retail licenses sold: 750 of those lisences will be “Class A” for large retail stores, the remaining licenses would be for independently owned businesses compiling into “Class B.” Class A would be sold before Class B, placing limits on single retail ownership and allowing beer distributors to compete for liquor lisences.

Here’s the video of today’s press conference:

http://youtu.be/d5l3mgROEWo

2 Responses

  1. I vote to keep the State Stores in the State’s hands and let the private owners open specialty wine boutiques for people that want them. Until somebody can show that the State Stores are not profitable for the State, I see no concievable reason to privatize them

  2. Some time ago I sent what I believe to be a great idea to Governors office concerning the PLCB locations. I’ve found a way to cut the deficit as well as cutting the payroll.
    Just pretend that these locations are Dunkin Doughnuts. Lease them to the highest bidder for a fixed period of time, say 25 years. The state receives immediate cash as well as a new supply every 25 years.
    Just about all the employees will keep their jobs, so that problem is cut as well. We have our cake as well as eat it for as long as we want to maintain control of the situation! For the sake of brevity, I’m cutting my thoughts short here. But I’ve no doubt that anyone who reads this will not get the point. As far as I can see it’s a win, win situation!Now if only I can get someone, anyone, in Harrisburg to read this message! Maybe you can help with this situation?

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