By Jeff Frantz

– There’s a new proposal to modernize — not privatize — Pennsylvania’s state store system, with the aim of putting more money in the state coffers.

State Rep. Gene DiGirolamo, R-Bucks County, announced his plan Thursday in a memo asking other lawmakers to sign on as cosponsors. His proposal would give the Pennsylvania Liquor Control Broad many of the things it has asked for in recent years, like the ability to open more stores on Sundays and have more pricing flexibility.

If passed, DiGirolamo estimates the LCB would bring in an extra $185 million in profits after the first full year. Theoretically, much of that money could then be passed on to the state.

It remains to be seen if this proposal has any legs.

Any changes to the way Pennsylvanians get their booze has been stifled in recent years in a debate between those who want to expand the LCB and those who want to eliminate it.

Many in Harrisburg, including House Liquor Control Committee Chairman Rep. John Taylor, R-Philadelphia, believe privatization backers won’t vote for anything that entrenches the current system, which DiGirolamo’s proposal appears to do. At the same time, those who favor improving the state store system, especially in the Senate, have not been willing to vote for a phase out of the state stores.

Privatization backers, including Gov. Tom Corbett, believe privatization could happen this year. 

The possibilities for modernization crept up during budget hearings last month, particularly in the Senate, as lawmakers looked for more revenue options.

Here’s what DiGirolamo is proposing:

• Allow the LCB to open as many stores on Sunday as it feels is smart business, and let the LCB set the hours for those stores. Current law allows only 25 percent of state stores to open on Sundays, and says they must close by 5 p.m.
• Current law requires that every bottle sold in Pennsylvania is marked up the same percentage. This bill would allow the LCB to mark up some products less, and mark others up more. In the past, the LCB has said it can ultimately make more by selling at volume if some products are cheaper.
• Allow the LCB to set up loyalty programs that offer rewards for regular customers.
• Urge the LCB to expand its “store within a store” program that builds state stores within grocery stores.
• Speed up the process that the Department of General Services uses to review the leases for state stores, with an eye toward better long-range planning.
• Allow Pennsylvanians to receive direct shipments of wine and spirits at their homes, and allow the LCB to ship out of state.
• Allow the LCB to set up self-serve lottery machines in their stores.
• Allow the LCB to join a consortium of other states where the states control a portion of the liquor market, like Michigan and Ohio, with the goal of securing better prices. DiGirolamo’s memo says the LCB “may take the lead” in organizing such a buying program.

PhillyLabor.com Editorial – This Proposal would both generate an additional 185 million dollars in revenues for PA. along with saving the jobs of over 5,000 workers who work in the Wine and Spirit Stores throughout PA. This is an opportunity for Gov. Corbett and countless other proponents of privatization to do what’s in the best financial interests of the Commonwealth while at the same time maintaining the livelihoods of thousands of our residents whose families depend on them to live. This an obvious Win-Win for everyone. This is why we elect politicians in the first place, to make decisions that are in the best interest of their constituents. Anything less would be a disservice to all Pennsylvanians. Anything less would be Un-American!

Source: http://www.pennlive.com/midstate/index.ssf/2014/03/liquor_privatization_modernaza.html