Burns proposes sweeping modernization of state liquor license system
Bill would substantially overhaul license system for first time since Prohibition
Rep. Frank Burns September 30, 2020 | 1:18 PM
EBENSBURG, Sept. 30 – With a sweeping proposal to update the state’s antiquated liquor license system, state Rep. Frank Burns, D-Cambria, is pushing a pro-business agenda that would benefit mom-and-pop bars and restaurants by freeing trapped liquor licenses from archaic regulations and red tape.
“My proposal would bring Pennsylvania’s liquor license system into the 21st century,” Burns said. “Our commonwealth has changed in the 80 years since the license system was introduced, and it’s time to update it to more accurately reflect population changes and better meet today’s business demands.”
Burns’ H.B. 2900 would, among other things, allow liquor licenses to be sold across county lines in a limited manner. Licensees in counties that have far too many licenses could sell their licenses to the prospective business owners in high-growth counties that are desperately seeking a license. Burns’ bill would even out the distribution of liquor licenses, creating economic growth and thousands of jobs across Pennsylvania.
“These simple changes would allow small businesses to grow and allow the supply of licenses to shift to meet the demands of the modern era,” Burns said. “It is time for the legislature – and the LCB – to enable these cross-county sales, and to take the licensing handcuffs off of our local businesses.”
Instead of a county-by-county basis, Burns’ bill would establish a statewide liquor-license-to-population ratio with a goal of bringing all counties closer to the average. The bill would allow licensees in counties substantially above or substantially below that average to transfer licenses across county lines. One-third of counties with license ratios around the statewide average would be unaffected. Under the bill, formulas would be recalculated every 10 years following the census.
“Without this legislation enabling these transfers, the economies of some areas of our state will continue to be slowed due to a shortage of licenses, while other parts will continue to have a glut of them, essentially making them worthless,” Burns said. “Rather than letting developers negotiate sweetheart deals to transfer licenses at a predetermined price, my plan creates a transparent process that allows the free market – and not politicians or bureaucrats – to determine the value of a license.”