Pennsylvania Moves Closer to Privatizing Liquor Sales

State House approved bill for second time in two years, which will now move to Senate.

March 02, 2015

HARRISBURG, Penn. — For the second time in two years, the Pennsylvania state House approved comprehensive legislation to privatize the state liquor system by selling the wholesale operation and phasing out most of the 600 state liquor stores.

Last week’s vote was 114-87 in favor of privatization, slightly more than the 105 who voted in favor of a similar bill in 2013. While it’s not certain how the bill will fare in the senate, it’s thought that the Republican-led body will be more receptive to it than in the past, despite Democratic Governor Tom Wolf’s threat to veto the bill in its current form.

“There is an inevitable feeling about this, how we're moving toward privatization,” House Liquor Committee Chairman Chris Ross was quoted as saying in various news reports.

Pennsylvania's system of 600-plus state stores was a product of the end of Prohibition in 1933, and is one of the most restrictive states when it comes to alcohol sales. Pennsylvania and Utah are the only states with total control of wholesale and retail operations.

Currently, Pennsylvania allows more than 240 supermarkets and convenience stores with sit-down eateries to sell carry-out beer. The current privatization bill envisions one-stop shopping in many locations, including convenience and grocery stores, allowing the sale of 1,200 retail wine and spirits licenses. Beer distributors would have the first shot at them.

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