HARRISBURG, Pa., Oct. 11, 2017 /PRNewswire-USNewswire/ -- At today's public meeting of the Pennsylvania Liquor Control Board (PLCB), the Board discussed next steps in pursuing monetization of future PLCB earnings.
"We continue our legal review and due diligence to determine the feasibility of entering into a certificates of participation (COPs) contract that would provide an upfront payment to the General Fund in exchange for PLCB annual payments to certificate holders," said Board Member Mike Negra.
"We understand the urgency driving this issue for the Governor's Budget Office, and we are working as quickly as possible to contract with legal and financial advisors well-versed in this kind of transaction," said Michael Newsome. "Once they are on board, we can begin evaluating the details of the financing in hopes of closing a deal before the end of the year."
Board Chairman Tim Holden expressed his support by adding, "We will continue to work collaboratively with the Administration to pursue a revenue-backed contract delivering significant immediate revenue while capitalizing on the PLCB's long-term profitability."
The PLCB regulates the distribution of beverage alcohol in Pennsylvania, operates more than 600 wine and spirits stores statewide and licenses more than 20,000 beverage alcohol producers and retailers. The PLCB also works to reduce and prevent dangerous and underage drinking through partnerships with schools, community groups and licensees. Taxes and store profits – totaling $15.8 billion since the agency's inception – are returned to Pennsylvania's General Fund, which finances Pennsylvania's schools, health and human services programs, law enforcement, and public safety initiatives, among other important public services. The PLCB also provides financial support for the Pennsylvania State Police Bureau of Liquor Control Enforcement, the Department of Drug and Alcohol Programs, other state agencies and local municipalities across the state. For more information visit www.lcb.pa.gov.
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SOURCE Pennsylvania Liquor Control Board