Sale of state stores controversial

Gov. Tom Ridge's plan to save $605 million over 10 years by ending the state monopoly of liquor stores faces a rocky road ahead in the state Legislature.

The plan would allow liquor stores to remain open until 2 a.m., as late as bars and taverns, instead of closing at 10 p.m. It would also increase the number of wine and spirit stores from the current 654 overseen by the Pennsylvania Liquor Control Board, to 757 privately owned liquor stores.

Reaction to the governor's plan has been mixed, but most legislators agree Ridge will face obstacles along the way.

State Attorney General Mike Fisher said it does not matter to him who sells the liquor -- the state or private owners.

"The governor says he will keep the state Liquor Control Board as an enforcement agency," Fisher said.

He suggested strengthening measures to prevent minors from gaining access to liquor, similar to what the Federal Trade Commission has done with tobacco.

"Maybe we should be carding people up to age 27 or 31," he said. "That would put more responsibility on the tavern owner -- or even a private liquor store owner or beer distributor -- to stop underage drinking."

Fisher added that some states with free trade systems have better driving under the influence statistics than Pennsylvania.

"I just don't think it makes much of a difference who sells it," he said.

Pennsylvania is currently one of the 19 states or jurisdictions involved in wholesale or retail liquor sales. Surrounding areas involved in the sales are Ohio, West Virginia and Montgomery County, Md.

Under the plan, liquor stores would be required to "stand alone." The stores would be permitted to sell nonalcoholic products such as soda and snacks, but those sales could not comprise more than 30 percent of the stores' total sales.

Pennsylvania Democratic State Committee Chairman Mark Singel said Gov. Ridge's plan is wrong from many perspectives.

"I think it is bad policy and a mistake for Pennsylvania in the short-term and long-term," Singel said.

In the short-term, the plan is a disruption of a system that works, Singel said. In the long-term, the profits the governor hopes to reap will be a one-time infusion of cash in exchange for a lucrative state operation, he said.

Singel added the plan will guarantee that liquor prices will increase, along with alcohol consumption, with the extended store hours. He pointed out that "mom-and-pop" stores will lose money to out-of-state franchises that have the money.

"I think that he's got to go back to the drawing board on that," Singel said.

The state would also limit the number of stores a chain could own. A franchise could own no more than 10 percent of the total state franchises, or 40 percent of a county's.

Ridge plans to use $388 million of the projected savings in the Better Communities fund, which includes money for zoos, museums, airports and theaters. An estimated $57.5 million of the 10-year proceeds would be spent on increased alcohol education and enforcement.

Ridge's plan is pending legislative approval.