Pennsylvania Liquor Control Board

The Pennsylvania Liquor Control Board (PLCB) is an independent government agency that manages the beverage alcohol industry in Pennsylvania. It is responsible for licensing the possession, sale, storage, transportation, importation and manufacture of wine, spirits and malt or brewed beverages in the commonwealth, as well as operating a system of liquor distribution (retailing) and providing education about the harmful effects of underage and dangerous drinking.[1] The PLCB was established in conjunction with the 21st Amendment and the repeal of prohibition. In 1933, just four days before the sale of alcohol became legal in Pennsylvania, the Board was officially organized. Upon its creation, Governor Gifford Pinchot stated that the purpose of the Board was to "discourage the purchase of alcoholic beverages by making it as inconvenient and expensive as possible."[2]

The Board is composed of three members who are appointed by the governor and confirmed by a two-thirds vote of the Pennsylvania State Senate. They are appointed to staggered four-year terms ending the third Tuesday in May. It has its headquarters in the Northwest Office Building in Harrisburg.[3]

On-premises retail licenses and off-premises wholesale licenses are apportioned through a quota system established by the Pennsylvania Liquor Code. Under this structure, the PLCB may grant one retail license for every 3,000 inhabitants of a county and one wholesale license for every 30,000 inhabitants of a county (with a minimum of five wholesale licenses allowed per county). To prevent a municipality from being inundated by liquor licenses, the Pennsylvania Liquor Code also established a population-based municipal quota that limits the number of retail liquor licenses allowed in a municipality; the issuance or transfer of any additional licenses beyond that quota requires prior municipal approval.

As of August 2015, there were about 20,000 active liquor licenses in Pennsylvania.[4] Restaurants and food operations that are licensed to serve or sell drinks in Pennsylvania must purchase their liquor from the PLCB, which operates more than 600 Fine Wine & Good Spirits stores (called "PA Wine & Spirits" stores before a rebranding project started in 2010) statewide and an E-commerce site.[5] If a wine or spirit is not on the list of registered brands, then it cannot be bought or sold in Pennsylvania.

In Fiscal Year 2014-15, sales at Fine Wine & Good Spirits stores generated more than $2.34 billion in sales and taxes.[6] Taxes and store profits are returned to Pennsylvania’s General Fund; more than $584 million was returned to the Pennsylvania Treasury, funded state programs or was returned to local communities in FY2014-15.[6] In the last five fiscal years (FY2010-11 through FY2014-15), the PLCB provided more than $2.57 billion to the Pennsylvania Treasury, $116.7 million to the Pennsylvania State Police, $10.5 million to the Department of Drug and Alcohol Programs, and $22.4 million to local communities.[6] Since its inception, the PLCB has contributed more than $14.5 billion to the Pennsylvania Treasury.[7]

The Board also supervises local option referenda in counties and municipalities that wish to prohibit or permit establishments to sell or serve alcohol. According to Section 472 of the Pennsylvania Liquor Code,[8] a local option referendum may be voted on during the primary election of an odd-numbered year. The issue may not be voted on more than once in four years. To place a referendum on the ballot requires a petition with a number of signatures equal to at least 25 percent of the highest vote cast for any office in that municipality in the preceding general election. As of August 2015, almost 700 Pennsylvania municipalities (totaling about one-third of the state's land area) are "dry" or "partially dry."[9][10]

Unlike other Pennsylvania administrative agencies, appeals from decisions of the Board are to the local Pennsylvania Court of Common Pleas, rather than directly to the Commonwealth Court of Pennsylvania.

As a result of Act 14 (enacted June 30, 1987), enforcement of the Pennsylvania Liquor Code was transferred from the PLCB to the Pennsylvania State Police, Bureau of Liquor Control Enforcement (BLCE).[11] This function is fully funded by the PLCB out of operational revenues.

Board members

Former Congressman Tim Holden (D) was nominated to the Board by Gov. Tom Corbett, on June 14, 2013. He was unanimously confirmed by the State Senate on Nov. 13, 2013, and sworn in a day later. Holden was named chairman of the PLCB by Gov. Tom Wolf on Feb. 17, 2015.
Mike Negra[12] (R) was nominated to the Board by Gov. Tom Corbett on Sept. 10, 2014, and was unanimously confirmed to a four-year term by the state Senate on Oct. 16, 2014. He was sworn in on Oct. 21, 2014.
Michael Newsome (D) was nominated to the Board by Gov. Tom Wolf on Dec. 11, 2015. He was unanimously confirmed by the state Senate on April 13, 2016, to serve a four-year term. He was sworn in on April 20, 2016.

Programs to deter underage drinking

The PLCB Bureau of Alcohol Education provides educational material to youth, legal consumers and beverage alcohol servers.[13] This includes RAMP (Responsible Alcohol Management Program), which is directed at establishments selling alcoholic beverages.[14]

The PLCB policy of "zero tolerance" for sales to minors and intoxicated individuals has resulted in store employees challenging, or "carding," those who appear to be underage. Store employees can also require a customer to fill out a form attesting to his/her age before the sale is completed. This policy and effective implementation are considered to be an excellent deterrent to underage drinking in Pennsylvania. According to the PLCB Fiscal Year 2014-15 Annual Report, Fine Wine & Good Spirits store employees conducted more than 1.3 million ID checks during the 2014 calendar year.[15]

The Bureau of Alcohol Education annually awards approximately $1 million in grants to reduce underage and dangerous drinking to colleges and universities, community organizations, law enforcement departments, and high schools. Those same groups send representatives to an annual Alcohol Education conference for prevention professionals in Pennsylvania. Another annual event is the Alcohol Awareness Poster Contest for students in kindergarten through 12th grade.

The quota system

The quota on retail liquor licenses is set forth in Section 461(a) of the Pennsylvania Liquor Code.[16] While that section lays out exceptions, generally, Restaurant Liquor (R), Eating Place Malt Beverage (E),Club (C) and Catering Club Liquor (CC) licenses are subject to the quota. Quota exceptions include ski resorts and casinos. Hotel (H), Off-Track Wagering Restaurant Liquor (OWR), Airport Restaurant (AR), Golf Course (PGR, PGC, GCC, PGE), Continuing Care Retirement (CRR, CRE), Economic Development (EDR, EDE), Performing Arts (PAF) and Public Venue Restaurant (PV) licenses are not subject to the quota.

The first retail license quota was established by Act 358 of 1939, which set it at 1 license for every 1,000 municipal inhabitants. That was changed to 1 license for every 1,500 inhabitants by Act 702 of 1951; 1 license for every 2,000 inhabitants by Act 108 of 1972; and 1 license for every 3,000 inhabitants by Act 160 of 1990. The quota system was switched to a county-based system by Act 141 of 2000.

Section 437(f) of the Pennsylvania Liquor Code establishes quotas for Malt Beverage Distributors (D) and Malt Beverage Importing Distributors (ID).[17] One D or ID license is issued for every 30,000 residents, with a minimum of five available in each county. There are no exceptions. Act 591 of 1952 established the distributor license quota at 1 license for every 10,000 county inhabitants and a minimum of five per county. Act 445 of 1965 changed the quota to 1 license for every 15,000 county inhabitants; Act 160 of 1990 made it 1 license for every 30,000 county inhabitants.

Board members and their terms of service

Dates Chairman Member Member
Nov. 29, 1933, to March 6, 1934 Robert. S. Gawthrop A. Marshall Thompson Vacant
March 7, 1934, to July 7, 1935 Robert. S. Gawthrop A. Marshall Thompson W. Worrell Wagner
July 7, 1935, to Dec. 31, 1936 Walter T. Grosscup W. Worrell Wagner Leo A. Crossen
Jan. 2, 1937, to Jan. 22, 1939 Leo A. Crossen W. Worrell Wagner J. Twing Brooks
Jan. 23, 1939, to April 23, 1939 Vacant W. Worrell Wagner J. Twing Brooks
April 24, 1939, to Sept. 15, 1939 W.H. Hitchler W. Worrell Wagner J. Twing Brooks
Sept. 16, 1939, to May 31, 1940 W.H. Hitchler W. Worrell Wagner Vacant
June 1, 1940, to Dec. 11, 1940 William S. Rial W. Worrell Wagner Vacant
Dec. 12, 1940, to July 19, 1941 William S. Rial W. Worrell Wagner Frederick T. Gelder
July 20, 1941, to May 12, 1943 Frederick T. Gelder W. Worrell Wagner Vacant
May 13, 1943, to Feb. 4, 1947 Frederick T. Gelder W. Searight Stuart Vacant
Feb. 5, 1947, to Feb. 11, 1947 Frederick T. Gelder Vacant Vacant
Feb. 12, 1947, to Jan. 21, 1948 Frederick T. Gelder Charles C. McGovern Vacant
Jan. 22, 1948, to April 30, 1949 Frederick T. Gelder Charles C. McGovern Frank D. Armstrong
May 1, 1949, to May 31, 1949 Frederick T. Gelder Frank D. Armstrong Vacant
June 1, 1949, to Sept. 3, 1953 Frederick T. Gelder Frank D. Armstrong David R. Perry
Sept. 4, 1953, to Feb. 7, 1955 Frederick T. Gelder David R. Perry Vacant
Feb. 8, 1955, to Dec. 31, 1955 Patrick E. Kerwin Donald A. Behney John S. Rice
Jan. 2, 1956, to Jan. 25, 1956 Patrick E. Kerwin Donald A. Behney Vacant
Jan. 26, 1956, to Dec. 1, 1957 Patrick E. Kerwin Donald A. Behney Abraham D. Cohn
Dec. 2, 1957, to Sept. 5, 1961 Patrick E. Kerwin Abraham D. Cohn Daniel B. Swaney
Sept. 6, 1961, to Jan. 12, 1964 Abraham D. Cohn Daniel B. Swaney Dean R. Fisher
Jan. 13, 1964, to May 8, 1966 Abraham D. Cohn Dean R. Fisher James E. Staudinger
May 9, 1966, to Nov. 21, 1966 Abraham D. Cohn Dean R. Fisher Vacant
Nov. 22, 1966, to Dec. 19, 1966 Abraham D. Cohn Dean R. Fisher Edwin Winner
Dec. 20, 1966, to May 31, 1967 Abraham D. Cohn Edwin Winner William Z. Scott
June 1, 1967, to Jan. 2, 1968 William Z. Scott Abraham D. Cohn Edwin Winner
Jan. 2, 1968, to Jan. 3, 1972 William Z. Scott Edwin Winner George R. Bortz
Jan. 4, 1972, to Jan. 28, 1972 Edwin Winner George R. Bortz David W. Pennick
Jan. 28, 1972, to Dec. 1, 1972 Edwin Winner David W. Pennick Vacant
Dec. 1, 1972, to Dec. 4, 1972 Edwin Winner David W. Pennick Gene Roscioli
Dec. 4, 1972, to Nov. 30, 1974 Gene Roscioli Edwin Winner David W. Pennick
Nov. 30, 1974, Jan. 6, 1975 Vacant Edwin Winner Vacant
Jan. 6, 1975, to Sept. 28, 1976 Henry H. Kaplan Edwin Winner David W. Pennick
Sept. 29, 1976, to March 1, 1979 Henry H. Kaplan David W. Pennick Ralph O. Barnett
March 2, 1979, to May 18, 1980 David W. Pennick Ralph O. Barnett Vacant
May 19, 1980, to Dec. 8, 1987 David W. Pennick Ralph O. Barnett Mario Mele
Act 14 of 1987
Dec. 9, 1987, to May 19, 1992 James A. Goodman (D) Robert P. Fohl (R) Oliver L. Slinker (D)
May 20, 1992, to July 5, 1992 James A. Goodman Robert P. Fohl Vacant
July 6, 1992, to May 16, 1995 James A. Goodman Robert P. Fohl Oliver L. Slinker
May 17, 1995, to May 22, 1995 Vacant Robert P. Fohl Oliver L. Slinker
May 23, 1995, to May 21, 1996 John E. Jones III (R) Robert P. Fohl Oliver L. Slinker
May 22, 1996, to June 16, 1997 John E. Jones III Robert P. Fohl Vacant
June 17, 1997, to May 19, 1998 John E. Jones III Robert P. Fohl P.J. Stapleton (D)
May 20, 1998, to June 8, 1998 John E. Jones III P.J. Stapleton Vacant
June 9, 1998, to Sept. 24, 1999 John E. Jones III Robert P. Fohl P.J. Stapleton
Sept. 25, 1999, to Oct. 25, 1999 John E. Jones III P.J. Stapleton Vacant
Oct. 26, 1999, to Aug. 2, 2002 John E. Jones III P.J. Stapleton Jonathan H. Newman (R)
Aug. 3, 2002, to April 28, 2003 Jonathan H. Newman P.J. Stapleton Vacant
April 29, 2003, to Jan. 11, 2007 Jonathan H. Newman P.J. Stapleton Thomas F. Goldsmith
Jan. 12, 2007, to Nov. 19, 2007 P.J. Stapleton Thomas F. Goldsmith Vacant
Nov. 20, 2007, to Oct. 31, 2011 P.J. Stapleton Thomas F. Goldsmith Robert S. Marcus (R)
Nov. 1, 2011, to Oct. 6, 2012 Joseph E. "Skip" Brion (R) P.J. Stapleton Robert S. Marcus
Oct. 7, 2012, to Nov. 13, 2013 Joseph E. "Skip" Brion Robert S. Marcus Vacant
Nov. 14, 2013, to Oct. 21, 2014 Joseph E. "Skip" Brion Robert S. Marcus Tim Holden (D)
Oct. 21, 2014, to Feb. 16, 2015 Joseph E. "Skip" Brion Tim Holden Mike Negra (R)
Feb. 16, 2015, to Nov. 19, 2015 Tim Holden Joseph E. "Skip" Brion Mike Negra
Nov. 20, 2015, to April 20, 2016 Tim Holden Mike Negra Vacant
April 20, 2016, to Present Tim Holden Mike Negra Michael Newsome (D)

Efforts to privatize

For over forty years, starting with the administration of Governor Milton Shapp, efforts have existed to abolish the Board and privatize liquor sales in Pennsylvania. Critics of the Board argue that the commonwealth would generate significant income by selling state liquor stores to private entities while continuing to reap millions in annual sales taxes from alcohol sales and liquor tax revenues. Further, it has been cited that customers could benefit from lower prices, longer hours and wider selection at privately run liquor stores. In addition, privatizing liquor sales would allow the commonwealth to recoup taxes from sales in neighboring states such as New Jersey, Ohio and Delaware. Despite these arguments, efforts to privatize have largely stalled. According to former governor Dick Thornburgh, "the principal roadblock to reform has traditionally been an odd coalition of state store employee unions, fundamentalist anti-alcohol groups and organizations such as Mothers Against Drunk Driving, all of which perceive that they have legitimate interests which are not susceptible to statewide budgetary considerations. It would take some courageous leadership to stare down this combination, something I do not see in the commonwealth today."[18] In September 2014, PA House proposed a bill that would decriminalize purchasing wine and liquor in other states and transporting it to the state.[19]

Opponents of privatization argue that keeping the stores public would generate significantly more money over time, as well as keep over 5000 employees from losing their jobs, pensions, and health benefits, many of whom are elderly. Although 45% of the entire LCB workforce is temporary, seasonal or part-time and may not have all the benefits that full time employees have.[20]

On July 2, 2015, Governor Wolf vetoed the first ever privatization bill to reach the governor's desk.[21]

See also

References

  1. ↑ "About the PLCB". Pennsylvania Liquor Control Board. Retrieved April 17, 2015.
  2. ↑ "Yuengling A History of America's Oldest Brewery by Mark A. Noon, p 131. ISBN 0-7864-1972-5. McFarland & Company, Inc., 2005.
  3. ↑ "Contact Us". Pennsylvania Liquor Control Board. Retrieved April 17, 2015.
  4. ↑ https://www.lcbapps.lcb.state.pa.us/webapp/PublicLicenseeSearch/LicenseeSearch.aspx
  5. ↑ http://www.FineWineAndGoodSpirits.com
  6. 1 2 3 http://www.lcb.state.pa.us/cons/groups/externalaffairs/documents/form/003212.pdf
  7. ↑ Final paragraph of press release, http://www.lcb.state.pa.us/cons/groups/externalaffairs/documents/form/003228.pdf
  8. ↑ https://govt.westlaw.com/pac/Document/N9AB6DDA0F83B11E1A7BD881D24C963FA?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)
  9. ↑ http://lancasteronline.com/news/local/list-these-pennsylvania-towns-restrict-the-sale-of-booze/article_efe49798-e4ad-11e4-856c-1bf70bea978d.html
  10. ↑ http://www.lcb.state.pa.us/cons/groups/externalaffairs/documents/form/003148.pdf
  11. ↑ http://www.psp.pa.gov/LCE/Pages/default.aspx#.VdyvzKPD-Uk
  12. ↑ PA Capitol Digest. "PA Capitol Digest Blog: Corbett Nominates Michael Negra To Liquor Control Board". pacapitoldigestcrisci.blogspot.com. Retrieved 7 April 2015.
  13. ↑ "Pennsylvania Liquor Control Board". state.pa.us. Retrieved 7 April 2015.
  14. ↑ "Pennsylvania Liquor Control Board". state.pa.us. Retrieved 7 April 2015.
  15. ↑ http://www.lcb.state.pa.us/cons/groups/externalaffairs/documents/form/003225.pdf
  16. ↑ https://govt.westlaw.com/pac/Document/NE59DDC90429311E2BD8FBD1D933E057F?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)
  17. ↑ https://govt.westlaw.com/pac/Document/N60C8C230407011E19948C0F228DD2FC8?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)
  18. ↑ "Big ideas: Sell the Pennsylvania Liquor Control Board". PennLive.com. Retrieved 7 April 2015.
  19. ↑ Saget, Joel. "PA House GOP Seeks To Rekindle Liquor Privatization Debate". Retrieved 17 September 2014.
  20. ↑ http://www.lcb.state.pa.us/cons/groups/externalaffairs/documents/form/003225.pdf
  21. ↑ http://www.post-gazette.com/news/politics-state/2015/07/02/Wolf-vetoes-GOP-liquor-privatization-bill-pennsylvania/stories/201507020196

External links

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