The Pennsylvania State House passed a liquor privatization bill by a 105-90 vote. The passage of the legislation is considered a major political victory for Governor Corbett. Despite efforts by previous Governors Milton Shapp, Dick Thornburgh and Tom Ridge, this week’s vote marks the first time a liquor privatization bill has passed either chamber of the legislature.
H.B. 790 (Turzai R-Allegheny) which aims to end state sales of wine and spirits, is now headed to the Senate where it will likely face revision and resistance. It has been reported that the Senate may favor modernization of the current system over privatization. Senate Majority Leader Dominic Pileggi (R-Delaware) said he expected to hold hearings on the bill in the next 30 to 60 days.
As it stands, the House bill would phase out the state’s 600 state stores and create 1,200 licenses for the sale of wine and spirits. During the first 12 months, beer distributors would have the first right of refusal to purchase the licenses. In addition, a package reform provision in the bill will allow beer distributors to purchase a permit to sell growlers and six and twelve packs. Supermarkets would also be permitted to purchase licenses to sell wine.
The House Committee on Appropriations estimates that over 1.1 billion dollars will be generated from one-time license fees.
Thursday night’s vote fell largely along a party-line vote with five Republicans (Representatives Clymer, Digirolamo, Farry, Gillen and Murt) and all Democrats voting against the bill.