The Dam's Breaking!

Hot news out of Harrisburg: a bill loosening rules on wine sales has passed both houses of the General Assembly (passed by the Senate back in December; the House Rules Committee brought it up, passed it, and sent it to the floor all this morning, and the House passed it early this afternoon) and is on its way to the Governor's desk. The bill -- a creation of Senator McIlhinney's -- does not eliminate the State Stores or the wholesale monopoly, but it does allow licensees to sell up to four bottles of wine for takeaway, including of course the licensees that are supermarkets and gas stations. The bill passed with bipartisan support in both the committee and the full House (two Democratic Senators voted for it in December).

Stealth bill, zooming under the UFCW radar!

Governor Wolf released a statement on the bill's prognosis:

"Today the House concurred with the Senate on historic liquor modernization legislation that provides greater customer convenience to the people of Pennsylvania. As I have always said, my goal is to modernize the sale of liquor and beer in Pennsylvania to ensure convenience and satisfaction for customers. Once the bill reaches my desk, I will conduct a final review of the legislation to ensure it meets my goals of enhancing the customer experience, increasing much-needed revenue to help balance our budget, and bringing our wine and spirits system into the 21st century."

So...maybe, maybe not, but it's going to be hard for him to veto a bill that passed with significant Democratic support that doesn't actually privatize the State Stores or the wholesale system. What it does do is potentially take a LOT of sales away from the State Stores, and UFCW Local 1776's Wendell W. "President For Life" Young IV knows it. "This is the first step to killing the Pennsylvania Liquor Control Board and the Republicans know it," Young said.

It's a wobbly step, a baby step, and a head-shakingly stupid step that recapitulates the useless mistake of the case law...but it is a step. The State Stores will be in deep crap from competition, and things will get worse, especially as people want more convenience. They're going to be irked that they still have to go to the stinky old State Store to buy liquor; they're going to be irked by the stupid four-bottle rule; and they're going to be angry and confused that they can't buy booze at every supermarket and gas station. And that's what's going to break the dam. Finally. The end may be in sight.

Privatize, don't modernize.

Did you hear that?

Another domino fell in the fight for open markets and individual freedom as Worcester County, Maryland opened its doors to the free market by closing the county-controlled liquor board that mandated all businesses had to buy from them. (You never hear of places going to the PA way do you?) While the county is still going to try and remain a wholesaler in competition with private businesses, those businesses are free to shop wherever they want.

This could be a good way to gauge if the PLCB would be competitive if faced with free market competition, although the PLCB, with a bloated management and office staff, isn't as efficient compared to the county.

So raise a glass of whatever beverage you enjoy, and wish the people of Worcester County the best as they join most of Maryland and 33 other states in using their freedom of choice. Maryland is right next door, so maybe this will rub off on the group of dunces we have in the Senate as they see how the majority of the country works just fine without any socialist intervention by unqualified cube rats in Harrisburg.

Remember: privatization is modernization! 

Turzai Rides Again: new plan to dump the State's retail monopoly in the legislature

Representative Mike Turzai of Allegheny County has introduced legislation to eliminate the state's retail monopoly on wine and spirits sales. This is a well-considered proposal, one I can definitely get behind. Check the points (and my comments):

• Privatizes wholesale operations by auctioning off 100 wholesale distribution licenses to the highest responsible bidder (key point: we do not want to leave wholesale in the hands of the PLCB)
• Auction off 750 retail store licenses (more than we have now)
• A biennial license renewal fee and a transfer of license fee, similar to other license application and transfer fees currently in place, will be assessed by the PLCB (make them both substantial)
• Auction off the inventories of the current state stores
• PLCB would be required to divest itself from the retail sale of wine and spirits over a two-year period (smart; it will take that long (and give us the chance to snaffle some bargains))
• No person or business may own more than 10 percent of the wholesale distribution licenses statewide; no person or business can own more than 10 percent of state stores statewide (crucial, and I'd like to see provisions similar to those in the gambling licensing that keep felons out of the business, and state representatives, too; no paddling your fingers in this while you have influence).
  
• The state would move to a gallonage tax, which would range between $2 and $6 per gallon for wine and spirits (generally lower than what we pay now, and... No more Johnstown Flood Tax, no more Johnstown Flood Tax!)
• The PLCB will retain its enforcement, licensing, inspections and alcohol education authority (with, I hope, more oversight than they have now)
• State and local police will have concurrent jurisdiction to enforce state liquor laws (excellent!)
• All store employees must be 21 years of age (okay; not a problem, although 18 year olds can serve wine and spirits at bars now)
• PLCB employees who wish to continue being employed by the Commonwealth will be given preference in applying for other state jobs; there would be tax credits for private businesses who hire them, or tuition assistance for college or technical school (very fair, and a major point)

Honestly, the only quibble I would have is the number of retail licenses (but if you allow beer distributors to expand their license to include selling wine and spirits for a one-time fee -- a large one -- I see a beautiful solution). This covers almost everything I would put in a bill.

Discussion? And what can we do to help?

One Year Later

I started this blog a year ago today.

In that time we've seen the PLCB propose automated wine-selling 'kiosks' and expensive name changes to their monopoly stores. We've seen Joe "CEO" Conti come out of his planning cave to start taking action; much like that symbol of Pennsylvania's greatness, the groundhog, though it's hard to say whether Conti saw his shadow or not. We've seen a contract let -- under questionable circumstances -- for training that appears to be beneath basic expectations. We've seen failures in the State Store System's on-line ordering system. We've seen the PLCB propose a partnership with individual restaurateurs that would be a breath-taking example of unfair monopolistic power. We saw Conti and PLCB Chairman PJ Stapleton bear up under a largely critical audience on a TV call-in show.

We've also pointed out 15 Reasons why the PLCB should be abolished. We've suggested ways for the State to make money on the process, we've suggested ways to cushion the blow to the system's employees, and we've suggested ways for you, the citizens of Pennsylvania, to help this happen. We've run amusing polls on the site. We've made allies in the general public, in the State government, and in the restaurant business, and we've brought some of those people together. We've linked to numerous stories about the PLCB in Pennsylvania's newspapers. We've even published e-mails from PLCB employees.

I've been interviewed for newspaper and radio stories. I've done a video interview. I've written letters to Pennsylvania newspapers. I've written letters to Pennsylvania legislators, to Governor Rendell, and to the PLCB, and received some responses. Despite being a freelance writer, I've yet to sell a story or make a dime on the issue. (That's okay; this is a hobby.)

Have we had any impact? I believe we have, albeit small. We've fed arguments and ideas to people who can use them with greater leverage. We've created a Web presence around which anti-PLCB/anti-State Store System anger and action can coalesce and concentrate. We've connected people who can now work together. We've given the idea of privatization a bit more impetus and legitimacy.

What do I have planned for the next year? Most importantly, more wine. I want to get some guest bloggers in here, people who know what the PLCB's screwing up in wine sales. That has the potential to bring a lot more people in on our side. More alliances, as we find more people and groups who have a natural antipathy to the PLCB: business groups, political groups, enthusiast groups. More confrontation, as we start to take this fight to Harrisburg. More Reasons, of course: we've only scratched the surface. More outrage, probably, as the PLCB moves to implement its plan for spending more of your money to put more lipstick on its piggish monopoly face. And more hammering away to smash the liquor monopoly the State has held for over 70 years.

The State should not be in the retail booze business. The State has no compelling reason to continue the monopoly sale of wine and spirits. The PLCB Should Be Abolished.