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  • Wine & Spirits Council and Other Groups Applaud Wolf on Privatization Veto
    Updated On: Sep 03, 2015

    PLYMOUTH MEETING (JULY 2, 2015) – The UFCW PA Wine and Spirits Council and the 3,500 Pennsylvanians who work in Pennsylvania’s Wine and Spirits stores applaud Governor Tom Wolf’s veto of the reckless legislation to dismantle the PLCB.

    “Governor Wolf made the responsible decision. As a businessman, the governor recognized that this legislation made absolutely no sense. It was a sham bill driven by narrow special interests,” said UFCW Local 1776 President Wendell W. Young. “It’s time to focus on modernizing this asset and moving our Commonwealth forward. It’s time to stop these pointless political games.”

    Privatization would only increase our structural budget deficit, by eliminating valuable revenue the PLCB generates each and every year for the taxpayers of Pennsylvania. The PLCB last year contributed more than $565 million to the state treasury.

    A study by Public Financial Management, Inc. (PFM), commissioned by former Gov. Tom Corbett, found that privatization would result in at least $1.4 billion in transition costs over five years. PFM also found that the state would have to identify $408 million in new revenue annually to make privatization fiscally neutral.

    “This is just bad public policy and even worse math,” said UFCW Local 23 President Anthony M. Helfer. “This veto was absolutely necessary and in the best interests of every Pennsylvania taxpayer.”

    Modernization of the Wine and Spirits stores will help generate an additional $185 million in new revenue to the state. Modernization proposals include opening more stores on Sunday, increasing store hours, moving stores inside or next to grocery stores and provide for better pricing for Pennsylvania consumers.

    Young also commended Gov. Wolf for vetoing the GOP budget plan earlier this week and urged him to veto the punitive pension legislation that was crafted and backed by GOP leaders.

    “The GOP budget plan that was sent to the Governor does not address the concerns of Pennsylvanians,” said Young. “Voters want education funding, property tax relief and a reasonable tax on the Marcellus Shale industry. The GOP budget fails to address these important issues, instead focuses on an issue one percent of Pennsylvanians care about.”

    Governor Wolf’s budget proposal is a comprehensive plan that benefits all Pennsylvanians and will work to move our state forward. Governor Wolf’s plan meets the expectations of what the voters asked him and elected him to do.

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    Click here to learn more about Governor Wolf’s budget proposal. Click here to send Governor Wolf an email thanking him for standing by 3,500 UFCW members.

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    Groups in Favor of Governor Wolf's Veto:

    PA House Democrats:

    Continue working for consumer convenience, worker protection

    HARRISBURG, July 2 – House Democrats said that Gov. Tom Wolf’s veto of a badly flawed liquor privatization bill today will preserve thousands of jobs for Pennsylvania families while keeping the door open for widely supported steps to increase consumer convenience in buying wine and liquor.

    Democratic Leader Frank Dermody said the lack of votes in the House and Senate to override the veto means that work toward a better bill must continue.

    “Outside of a few vocal people motivated by political ideology or a quest for corporate profits, the vast majority of Pennsylvanians just don’t see privatization as being that big of a goal,” Dermody said.

    “My neighbors would be happy if we took a few sensible steps, such as getting more stores open on Sundays or allowing more flexible prices on the most popular brands,” he said. “There’s substantial support in the legislature to go in that direction while keeping Pennsylvania’s established wine and spirits shops intact.”

    Rep. Paul Costa, the Democratic chairman of the House Liquor Control Committee, said that close to 5,000 employees would have been at risk of losing jobs if the bill (H.B. 466) had been signed.

    “Governor Wolf understood what was at stake. The hardworking men and women who operate the wine and spirits shops are our friends and neighbors, people we know,” Costa said. “They contribute a great deal to our economy.

    “Now it’s up to legislators in Harrisburg to go back to work and take steps that will make Pennsylvania’s liquor sales not only more secure, but more convenient and profitable,” Costa said.

    Dermody agreed.

    “This is a valuable state asset that produces millions of dollars in revenue every year to support other programs in Pennsylvania’s state budget. Rather than legislating it out of existence, we should keep the stores and the jobs and make them even stronger for consumers and taxpayers,” Dermody said.

    The two lawmakers noted the experience of consumers in the state of Washington after liquor sales were privatized in 2012 and the number of outlets selling liquor more than tripled.

    Sales growth in Washington was concentrated in supermarkets and large chain stores, at the expense of small businesses. At the same time, there was a decrease in selection as sellers focused on the top-selling brands, and in-store liquor prices rose by an average of 5 percent to 16 percent.

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    Mothers Against Destructive Decisions (MADD):

    “Mothers Against Drunk Driving supports Governor Wolf’s decision to veto this legislation as transferring current state alcohol control to private control is counter to MADD’s mission of eliminating drunk driving and preventing underage drinking,” said MADD National President Colleen Sheehey-Church. “MADD supports the retention of government control of retail alcoholic beverage sales in states considering transfer of such control to the private sector. MADD’s support of the Governor decision to is scientific and research based off an analysis of 17 peer-reviewed studies conducted by the Centers for Disease Control and Prevention (CDC), which was reported in The Guide to Community Prevention Services (April 2012). The CDC concluded that privatization of alcohol sales will result in a reduction in the enforcement of sales regulations including enforcement of the minimum legal drinking age.” 

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    Pennsylvania Recovery Organizations Alliance (Pro-A):

    "We are concerned about making alcohol more available in our communities - which would occur with privatization.  Increasing the availability of alcohol in our communities is generally associated with an increase in consumption.  We are grateful to Governor Wolf for protecting our communities with his veto today." 

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    Commonwealth Prevention Alliance:

    "The Commonwealth Prevention Alliance (CPA) supports Governor Wolf’s veto of legislation that would privatize the state liquor system.  Part of CPA’s efforts focus on reducing alcohol abuse. As drug and alcohol prevention professionals, our main concern is the effect on public health and safety related to underage drinking, alcohol addiction, and alcohol-related crimes such as driving under the influence. 

    As a “control state” in regards to the sale of liquor, PA takes ownership of the product.   Results of a recent US study indicated:

    • Control states had significantly fewer youth reporting past 30-day drinking and binge drinking.  It also showed that rates of alcohol-impaired drinking deaths were 9.3% lower than in license states. According to PIRE (Pacific Institute of Research and Evaluation) an increase in sales of wine and spirits would lead to an increase in underage drinking with approximately 25% of the increased sales going to teens and young adults under the age of 21.

    • Control states have lower per capita spirits sales and lower per capita consumption of wine and spirits.

    • Control states have liquor store employees who are trained, are more vigilant in checking for identification, and have no motivation to sell to underage individuals.

    • Control states have less retail outlets per capita than license states. When outlet density increases, so do alcohol sales, along with an increase in alcohol-related problems for youth and adults.

    Some of these problems include:

    • Deaths and injuries from accidents, homicides, violent assaults, suicides, alcohol-related diseases such as cirrhosis, fetal alcohol spectrum disorders, reduced worker productivity, worker absenteeism, alcoholism, and increased crime

    These problems can result in increased costs to:

    • The criminal justice system/facilities, healthcare and medical costs, property loss and damage, education system, insurance, employers and businesses

    Alcohol abuse does not end with the above mentioned issues, but continues to impact individuals and families as a gateway to other illicit drug use, alcohol-related illnesses, domestic abuse, and other violent crimes.

    The Commonwealth Prevention Alliance is in full support of Governor Wolf’s veto of this piece of legislation.  We appreciate and thank Governor Wolf for his strong and decisive leadership regarding this topic and the effects it will have on PA residents.

    CPA is a private non-profit whose mission is to support prevention professionals in eliminating substance abuse and risk-related behaviors."

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    Drug and Alcohol Service Providers Organization of Pennsylvania (DAS-POP):

    "We the Drug and Alcohol Service Providers Organization of Pennsylvania thank the Governor for vetoing HB466.  Here is why. Pennsylvania has the lowest alcohol-related morbidity in America. That's not an accident."

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    DUI Association:

    "HARRISBURG – (July 2, 2015) The Pennsylvania Driving Under the Influence (DUI) Association is commending Governor Wolf for his veto of the Privatization of the Commonwealth’s Liquor Stores.

    “Research has shown that privatization leads to increased availability of alcohol, increased availability leads to increased consumption, increased consumption leads to an increase in alcohol-related problems, such as increased assaults, alcohol-related automobile crashes and deaths,” said PA DUI Association Executive Director C. Stephen Erni. Studies showed an average increase of 42% in alcohol sales after privatization.

    “We applaud Governor Wolf for making public safety the priority in Pennsylvania,” continued Erni. Pennsylvania has seen a steady decline in the number of alcohol-related fatalities over the past 5 years. Between 2010 and 2014 there was a 27% decline in the number of deaths due to impaired driving. “That means 126 more people made it home safe. The continuation of state liquor sales is one strong part of the continuing fight against impaired driving,” Erni stated.

    The PA DUI Association was created in 1979. The Harrisburg-based group has worked for the past 32 years to provide information, direction, training and support with the purpose of working toward the elimination of impaired driving and the harm that it causes."

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    Gaudenzia:

    "We are concerned about making alcohol more available in our communities - especially with youth, which would occur with privatization. Increasing the availability of alcohol in our communities is generally associated with an increase in consumption.  In addition, Alcohol is a gateway drug for most all of our 20,000 admissions. Increased availability will result in increased problems with addiction. We are grateful to Governor Wolf for protecting our communities with his veto today."

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    Penn State Police:

    "I applaud Governor Wolf for vetoing the privatization legislation recently passed by the legislature.  Without his veto, communities across the Commonwealth, especially college communities like State College, would have undoubtedly experienced a significant increase in dangerous drinking that often results in persons being arrested, getting injured, and unfortunately, at times, dying."