HARRISBURG, Pa. -- Pennsylvania Governor Tom Wolf has vetoed House Bill 466, which would have sets the stage for the sale of the state-owned liquor stores and privatized the state’s liquor system.
In veto messages to the General Assembly, Wolf said why he vetoed this and several other bills, “which failed to adequately and responsibly address the pressing issues facing Pennsylvanians.”
Regarding House Bill 466, he said, “This legislation falls short of a responsible means to reform our state liquor system and to maximize revenues to benefit our citizen. It makes bad business sense for the Commonwealth and consumers to sell off an asset, especially before maximizing its value. During consideration of this legislation, it became abundantly clear that this plan would result in higher prices for consumers. In the most recent case of another state that pursued the outright privatization of liquor sales, consumers saw higher prices and less selection.”
He continued, “Modernization of our state liquor system would provide additional revenues to the Commonwealth and save important, family-sustaining jobs. We can support and bolster consumer convenience without selling an asset and risking higher prices and less selection for consumers. I am open to options for expanding the availability of wine and beer in more locations, including supermarkets. I have also put other compromises on the table, including variable pricing, direct shipment of wine and expanding state store hours.”
House Bill 466 "gets the state out of a business that is not a core function of government while returning to the people opportunities for choice, convenience and entrepreneurialism," State Representative Mike Turzai, a sponsor of the bill, said before the governor vetoed it.
Pennsylvania is one of only two states where government has full control of both the retail and wholesale sales of wine and liquor. Bill 466, which amended a liquor code dating back to 1951, would have change that, allowing consumers to purchase up to five bottles of wine and two bottles of liquor at grocery stores and convenience stores with eating areas. Restaurants with enhanced liquor licenses would also have been allowed to sell up to two bottles of spirits and five bottles of wine for carry out.
The bill as approved by the general assembly, however, maintained a restriction on awarding liquor licenses to retail sites "where liquid fuels or oil is sold."
The bill would have been a boon to c-store chains like Altoona, Pa.-based Sheetz Inc., which has long fought for the right to sell beer at its locations based on the amount of foodservice products sold in its stores.
Sheetz executive vice president of operations Travis Sheetz was not optimistic that Wolf will sign the bill. "Unfortunately, the governor will likely veto the legislation because it contains a privatization component," Sheetz told CSP Daily News ahead of the veto. "He has stated that he is against privatization."
According to the bill, the 600 state-owned liquor stores would have been phased out based on the availability of private liquor in each store's area and a store's profitability.
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