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Opinion: Put liquor sales question on ballot, and let voters decide

Despite rejection of the idea time after time, some legislators are still pushing for privatization of the liquor business in Pennsylvania.

There have been many positive changes to the archaic liquor control laws during the past decade, but these legislators and much of the consuming public believe that they are not enough, that prices are too high and that there are too many restrictions compared to other states.

The latest attempt at privatization has been introduced by state Rep. Natalie Mihalek, R-Allegheny. The bill has 26 co-sponsors, none from our area. Proposing a constitutional amendment, Mihalek said her bill includes this significant change - the state will not manufacture or sell liquor at either the wholesale or retail levels.

In a memo to colleagues seeking their support, Mihalek wrote, “We are one of two states in the entire nation with a government monopoly on the sale of liquor and the only state to shut down the sale of spirits during the COVID-19 pandemic.”

She says this antiquated system, which came into existence in 1933 just four days before the end of Prohibition, set up the Liquor Control Board, and this set the current system into motion.

There are nearly 600 Fine Wine & Spirits stores dotted around the state, and they generated nearly $3 billion in revenues for state coffers.

At one point, in 2016, privatization got as far as Gov. Tom Wolf’s desk, but he vetoed the legislation, and there was not enough support in the General Assembly to override his action.

Despite the failed attempts at privatization, there have been significant changes in the liquor code that equate to baby steps toward modernization.

Some of the recent changes:

• Removed Sunday restrictions and state-mandated holidays.

• Enhanced customer loyalty programs and opened up coupons at state stores.

• Provided options for flexible pricing to allow state stores to offer more specials and deeper discounts and sales.

• Allowed restaurants and hotels to sell up to four bottles of wine for takeout.

• Allowed grocery stores that had sold just beer to sell up to four bottles of wine.

In addition, you can have wine sent directly to your home: Licensed wine producers are now allowed to ship up to 36 cases to an individual customer each year.

You can drink round the clock at a casino thanks to the law that created a liquor license category for casinos that also allowed them to serve free drinks at invitation-only events. As a side note, there is a hefty application fee and renewal cost of $1 million for the first four years, which then drops to $250,000 in subsequent years.

While these improvements benefit customers by providing greater convenience, we are still stuck with crazy restrictions. For example, if I walk into a local supermarket to buy a case of beer (24 units) because I don’t want to drive across town to a beer distributor, I find that I can’t, because the most I can buy in one purchase is 192 fluid ounces, the equivalent of 16 12-ounce cans or bottles.

You see, the powerful beer distributors’ lobby is fearful of losing its stranglehold on significant business, so they have been successful in preventing the sale of cases of beer at any other locations. In the meantime, however, beer distributors are allowed to sell 12-packs, so now they are in direct competition with the Weis Markets, Sheetzes and Wegmans of the world.

Now, here’s the kicker. I can buy the 192 ounces of beer, take it to my vehicle, return to the store and buy another six pack plus 2 more 12-ounce bottles or cans, giving me the case I wanted in the first place - certainly less convenient, and it will surely be more expensive than buying a case outright. Crazy, right?

We consumers continue to put up with these ridiculous restrictions, unlike in states such as New York and Colorado, where you can buy a case of beer in a drugstore, or New Jersey and South Carolina, where you can go into a package store and buy beer, wine and spirits all under one roof. No, we have to make multiple stops.

The ideal for Pennsylvanians would be one-stop shopping, allowing consumers to buy any kind of alcohol at any licensed location. That we can’t do this confounds many visitors to our state, who are mystified by our arcane and absurd laws.

Mihalek’s bill must be approved during two consecutive legislative sessions before it makes its way onto a ballot for public consideration. Most believe that if it gets this far, it will pass easily. Getting there, however, is the big “if.” There are lots of special interest group that will be sharpening their attack strategies sporting for a fight. One of the most prominent will be United Food and Commercial Workers Union, which represents most of the state store employees.

The chairman of the state Liquor Control Board is former U.S. Rep. Tim Holden of St. Clair, who is serving his third term on the three-member board. His salary as chair is $81,890.

By Bruce Frassinelli | tneditor@tnonline.com

The foregoing opinions do not necessarily reflect the views of the Editorial Board or Times News LLC.