House committee OKs overhaul of Gov.'s liquor bill
HARRISBURG — A legislative panel on Monday endorsed a revamped version of Gov. Tom Corbett’s liquor privatization bill that would give existing beer distributors first crack at liquor and wine licenses and expand the sale of wine in grocery stores.
In a 14-10 party-line vote, the House Liquor Committee backed a bill that would potentially phase out the existing state-controlled stores as the number of private operators grows.
Both the GOP governor and Rep. John Taylor, the Philadelphia Republican who chairs the committee, called approval of the amendment a “first step” that would lead to scrutiny of the complicated legislation not only on the House floor but in the Senate.
“We have a long way yet to go, but their vote today starts us down the path to do something truly historic” for Pennsylvanians, said Corbett, whose efforts to privatize certain government functions also includes the management of the Pennsylvania Lottery.
Minority Democrats pushed unsuccessfully for additional public hearings before any committee vote.
“I just think there are way too many questions on this particular bill,” said Rep. Paul Costa, D-Allegheny, the panel’s ranking Democrat.
Under the bill, the state’s 1,200 beer distributors would be given one year to decide whether they wanted to buy a license to sell wine, a liquor license or both. Fees for wine licenses would range up to $37,500 and to as much as $60,000 for liquor licenses, but the distributors could opt to pay off that expense over four years for an additional 5 percent.
After that, the remaining licenses — plus as many 600 additional ones — would be offered to other buyers on a first-come-first-served basis and at much higher fees.
The 600 state stores would be gradually reduced as the number of licensees in each county grows. For the thousands of state employees who would lose their jobs, the bill provides preferential treatment for other state hiring, grants for additional education and a two-year tax credit for private employers that hire those workers.
