Governor Rendell Vetoes Senate Bill 81

HARRISBURG, Pa., May 14 /PRNewswire-USNewswire/ -- Governor Edward G. Rendell today vetoed Senate Bill 81 and issued the following veto message to the Pennsylvania Senate:

I am returning herewith, without my approval, Senate Bill 81, Printer's Number 1862, entitled "AN ACT amending the act of April 12, 1951 (P.L.90, No.21), known as the Liquor Code, further defining for the definition of "eligible entity" and adding definitions; further providing for general powers of the board, for wine marketing and for Sunday retail sales by Pennsylvania Liquor Stores; and, in licenses and regulations relating to liquor, alcohol and malt and brewed beverages, further providing for interlocking businesses prohibited, for number and kinds of licenses allowed same licensee, for unlawful acts relative to liquor, malt and brewed beverages and licenses issued and for limited wineries."

Senate Bill 81 makes several amendments to the Liquor Code. Among these is a provision that would prohibit a Pennsylvania Liquor Control Board (PLCB) store from sharing an interior connection with another business, unless that other business prohibits the consumption of alcohol on its premises. Furthermore, any store that currently has such a connection to business that does allow consumption of alcohol on its premises must cease to operate by January 31, 2015 at the latest, unless it changes its policy of allowing the consumption of alcoholic beverages on its premises. In short, no PLCB store may be connected interiorly to a "bring your own bottle" or "BYOB" establishment.

To prohibit such an arrangement between a responsible business owner and the PLCB impedes the modernization of alcohol sales in our Commonwealth. Pennsylvania has been criticized as having one of the most outdated and arcane state-run alcohol sales regimes. In order to further bring Pennsylvania's liquor sales practices into the 21st century, we need to encourage innovative PLCB programs and foster new and novel, progressive yet responsible ways to reach customers more easily, not stifle or statutorily prohibit efforts toward modernization.

Some members of the General Assembly may believe that there is a need to limit the location or number of PLCB stores that share space with a BYOB establishment, or limit the interior distance between the PLCB store and the BYOB establishment so as to not disenfranchise neighboring licensed establishments. However, to ban them outright moves us away from innovative sales options of the PLCB.

Furthermore, to disallow a BYOB establishment to operate with a PLCB store under the same roof, while there is no similar bar to setting up a BYOB establishment next door to a PLCB store --where they may even share a common wall but a separate entrance-- is a distinction without a difference. There is no more of a competitive edge for a BYOB that shares a roof with a PLCB store than there is for one that is directly next door. In fact, it is entirely possible that a BYOB establishment and a PLCB store connected via interior passageway could be further away from each other than the BYOB establishment and the PLCB store that exist side-by-side.

Another illogical consequence of signing this bill would be to preclude the opening of a BYOB establishment in the same mall where a PLCB retail outlet is located, even if their locations were at opposite ends of the mall complex. Again, restrictions of this sort inhibit the ability of the PLCB to respond to the interests of the consumer marketplace.  

If the General Assembly wishes to enact legislation to ensure the appropriate implementation of this new model of PLCB sales, I would consider legislation that grants the PLCB regulatory authority over this aspect of PLCB operations.  

For the reasons set forth above, I must withhold my signature from Senate Bill 81, Printer's Number 1862.

Sincerely,

Edward G. Rendell, Governor

Media contact: Gary Tuma, Governor's Office; 717-783-1116

SOURCE Pennsylvania Office of the Governor