The state House on Tuesday approved legislation to allow as many as 2,400 private stores to compete with the 600 state-run liquor stores by selling wine or spirits.

The proposal also would loosen the rules for grocery stores to sell wine.

The package of four bills would generate about $690 million in new money for the state through the cost of permits and licenses, according to legislative estimates released Tuesday afternoon.

Both the governor and Senate Republican leaders have expressed little interest in embracing the push to further privatize the state liquor system.

House Republicans passed the legislation anyway to demonstrate how they think the state can balance its budget without raising taxes, said state Rep. C. Adam Harris, R-Juniata County. Harris is chairman of the House liquor control committee.

“We want to give our leaders maximum leverage” in budget negotiations with the governor and Senate leaders, Harris said.

Senate Republican leaders believe that changes to the liquor laws should be "in the context of policy that is good for Pennsylvania, not solely as a revenue source," said Jennifer Kocher, a spokeswoman for the Senate Republicans. "We look forward to reviewing whatever the House sends us when it comes to changes to the state’s liquor system."

The House Republican revenue estimates don’t reflect the losses and costs the state will see if the proposed changes drive the state liquor monopoly out of business, said state Rep. Joseph Markosek, D-Allegheny County, before an appropriations committee vote on the measure. Markosek is the Democratic chairman of that committee.

Read more at Source: The Daily Items