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Utah: Utah lawmakers advance Sam Granato appointment

Source: The Salt Lake Tribune

By Dawn House

Published: June 15, 2011 10:08AM

The alcohol-control commissioner who defied lawmakers’ directives to close profitable liquor stores was unanimously recommended Wednesday to serve on the state Board of Business and Economic Development.

Liquor Commission Chairman Sam Granato’s pending appointment goes to a Senate vote.

Sen. Jerry Stevenson, R-Layton, a member of the Senate Confirmation Committee, said he sees no problem with Granato’s confirmation. The senator, who voted for closing liquor stores, said that “sometimes people disagree on policy. Sam Granato is a dedicated man and a good businessman.”

Granato, who owned Frank Granato Import Co. and was a U.S. Senate candidate on the Democratic ticket in November, said he will have more time for public service after selling his restaurant and food-supply business this week to his children.

As Liquor Commission chairman, Granato earlier this year opposed closing liquor stores, even after lawmakers cut the budget of the Utah Department of Alcoholic Beverage Control by $2.2 million. After intense public opposition to the closures, Gov. Gary Herbert found a way to restore $1.4 million in funding to allow as many as nine liquor outlets to remain open through the end of February 2012.

Pennsylvania: Pennsylvania Liquor Control Board Extends Moratorium on All Retail Price Increases

Source: PLCB

Jun 15th

In an unprecedented move, the Pennsylvania Liquor Control Board today again rejected more than 400 price increases requested by industry representatives, maintaining current retail shelf prices for consumers.

“The Board’s decision today was made entirely on behalf of our customers,” said Patrick J. “PJ” Stapleton. “Too many Pennsylvanians are still living with significant financial strains, given the continued challenging economic environment. Maintaining current shelf prices ensures people can enjoy their favorite wine or spirit without sacrificing their family budget.”

Today’s decision marks the second time in the past fiscal year the Board has held the line on price increases from vendors. The PLCB originally implemented a moratorium on vendor price increases in November 2010, while also maintaining its own operational costs.

“Making this decision was certainly not without long deliberation,” Stapleton said. “We see this as a critical step toward the future success of our system as we continue to feel the effects of the country’s economic condition.”

Over its 77-year history, the LCB has been able to provide wine and spirit products at competitive prices for Pennsylvania consumers, while still generating substantial profits for the state General Fund. Those profits help to fund public education, public safety and other vital services, and to keep taxes down.

Pennsylvania: Mustio Introduces Legislation Prohibiting Liquor Price or Fee Increases Without Legislative and Executive Approval

Source: Pennsylvania House Republican Caucus

Jun 14th

Legislation sponsored by Rep. Mark Mustio (R-Allegheny) would prohibit any price or fee increases imposed by the Pennsylvania Liquor Control Board (LCB) without prior approval from the Pennsylvania General Assembly and the governor’s signature.

According to Mustio, objections to the LCB’s highly questionable Logistics, Transportation and Merchandise Factor Fee (LTMF) prompted the introduction of House Bill 1661.

“Despite adhering to a previous warning from Governor Tom Corbett against any additional taxes or fees on consumers, the LCB is back with a new plan to dramatically increase the LTMF fee by converting from a flat per container fee to a percentage-based fee on current product costs by size,” said Mustio. “This shift will significantly and unfairly inflate the shelf price of a product following any supplier price increases. No matter how you do the math, the LCB’s conversion scheme amounts to higher costs that are inevitably passed on to consumers.”

As an example, Mustio cited that the LTMF fee on a 750 ml bottle of wine that costs the LCB $10 is currently $1.30. By shifting that $1.30 flat fee to a percentage fee, the LTMF skyrockets by 13 percent on all future price increases. If the price of that $10 bottle of wine increases to $14, the Johnstown Flood tax is then imposed on the final cost of any product containing the LTMF fee, resulting in an even higher price for the consumer.

“The real question then becomes how is a 750 ml bottle wine that costs $10 easier to handle than a 750 ml bottle of wine that costs $50?” said Mustio. “The only possible answer is that the unaccountable, unelected bureaucrats at the LCB have the unchecked authority to declare, ‘Because we say so.’”

As a final illustration for the necessity of House Bill 1661, Mustio cited the LCB’s corresponding implementation of a Bailment system where the supplier retains ownership of the product that is stored in the LCB’s bailment warehouse until it leaves for the retail store.

“Essentially what the LCB is attempting to achieve by implementing a Bailment system is collecting endless handling fees for products they are no longer handling,” said Mustio. “Whether flat or percentage based, any liquor fee increase is a liquor tax increase. Final passage of my legislation will bring about some long overdue prohibition in the form of legislative and executive checks and balances against the LCB’s uninhibited ability to tax Pennsylvania consumers without representation.”