Two years ago the Reason Foundation presented a study to the PA Legislature on how and why we should privatize the Pennsylvania Liquor Control Board. It's online here, and you should really go take a look. It lays out several options -- full divestiture (my personal favorite), retail only (the State continues as the sole wholesaler), a slow transition, a pilot project approach, local divestiture (bad idea; more confusion is not what we need), and a public/private partnership (private company managing state stores? I'll pass on that) -- and does the pros and cons on each.
Feel free to send this to your state legislators with your advice.