FOR IMMEDIATE RELEASE
December 13, 2007
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Logan and Rafferty Push for Relief to Hospitality and Tourism Industry

HARRISBURG – State Senators Sean Logan (D-Allegheny) and John Rafferty (R-Montgomery) have introduced a bill to give owners of liquor licenses in Pennsylvania a significant cost savings when purchasing wine and spirits from the state-run Wine and Spirit stores.  Liquor licensees are those businesses in the hospitality and tourism industry including restaurants, taverns, hotels, and any other location that is licensed to sell alcohol. 

All wine and spirit purchases by liquor licensees must be made at one of the 630 state-run wine and spirit stores.  Licensees are provided a 10% discount on the total price of the product.  The Logan and Rafferty bill will increase this discount for licensees to 16% if passed by the Legislature and signed by the Governor.  The estimated savings to licensees in the hospitality and tourism industry would be approximately $20 million.

"This is a great way to help our small businesses in Pennsylvania," said Logan.  Logan continued, "The cost savings will allow the licensees to re-invest in their businesses and employees."

"The Liquor Control Board is producing record profits to the tune of nearly half billion dollars last year," said Rafferty.  "It is only appropriate we pass on these record profits to our small businesses across the Commonwealth," Rafferty concluded.

Rafferty added, "Increasing the current discount will also make wine and spirits more affordable to Pennsylvanians, which should increase purchases and generate more revenue to the state."

The Pennsylvania Liquor Control Board has reported record sales this last fiscal year of $1.69 billion with taxes and profits of over $487 million going to the state coffers.

"The increase in the wholesale discount will re-establish a reasonable wholesale relationship between the Pennsylvania Liquor Control Board and Pennsylvania's licensees, who collectively represent nearly 30% of state store revenues," said Patrick Conway, President & CEO of the Pennsylvania Restaurant Association.

"The hospitality and tourism industry contributes to Pennsylvania's economic vitality and supports all communities in the state," said Barry Wickes, President of the Pennsylvania Tourism and Lodging Association.

Tourism is the second largest industry in the Commonwealth employing an estimated 382,000 full-time jobs. In 2004, spending by the state's domestic and international visitors totaled $25.1 billion.

Logan stated, "Senator Rafferty and I will be working hard to see that this savings for the hospitality and tourism industry is a part of next year's budget discussions."

Senator Rafferty and Logan chair the Senate Law and Justice Committee, which oversees the alcohol industry in the Commonwealth.  Both Senators are also members of the Senate Appropriations Committee.