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Convenience store eyes liquor license

Rep Tim O Neal.jpg in april Rep. Timothy O’Neal, R-Washington, is pictured during a budget hearing earlier this year.

Beer and wine could be coming to some convenience stores throughout Pennsylvania.

Rep. Timothy O’Neal, R-Washington, recently introduced House Bill 2467 in the state House of Representatives. The bill was referred to the House Liquor Control Committee.

O’Neal proposes a new liquor license category for motor fuel stations with convenience stores, known as the “C store license.” The proposed C store license would only be available to convenience store operators who also sell motor fuel products. The C license does not require the operator to build seating for customers or otherwise remodel their establishment and would allow the convenience store operator to sell beer for takeout only.

On-site consumption would be prohibited.

The initial licensing fee will be $2,500 with an annual $750 renewal fee.

“The ability of sell beer and wine has been expanded significantly over the past several years to the benefit of the consumer, the businesses involved, and the Pennsylvania taxpayers,” O’Neal wrote in his legislative memorandum. “At present, these benefits are limited as the existing categories of licenses require a capital outlay that effectively eliminate the ability of small business owners to compete. The current license available to convenience stores requires them to operate a restaurant with seating for 30 diners. The high costs associated within existing classes of licenses makes it difficult for hundreds of smaller independent operators of convenience stores and gas stations to access the beer market. As result, these businesses are placed at a distinct disadvantage in the market. Moreover, the consumer is denied the opportunity to buy beer in the most convenient way possible. Pennsylvania is out of step with the surrounding states.”

In 2016, Act 39 became law, allowing the sale of wine in grocery stores and allowed convenience stores to sell beer if they did it from a different area. But, restaurant licenses aren’t simply created, they are auctioned as licenses expire. Supermarkets and convenience stores are driving up the cost of licenses on the private markets, limiting the licenses available for restaurants.

O’Neal wrote that the convenience store license he is proposing fills a needed niche in the liquor store market and will help small business owners.

“I believe that the creation of the C Store license category will level the playing field for small stations with C Stores,” O’Neal wrote. “The new license category has a lower price for entry and provides small business owners with an opportunity to serve a new market. The C Store License had the added advantage of increased consumer convenience and the license fees will generate significant revenue for the commonwealth.”

Starting at $3.50/week.

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