Pennsylvania governor backs waiving licensing fees for restaurants and bars

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Pennsylvania Gov. Tom Wolf said Thursday he wants the state liquor control board to waive licensing fees for bars and restaurants struggling under pandemic restrictions – but the measure is too little, too late to critics of the governor’s moves this year.

Wolf said the policy could save $20 million for business owners, but legislative Republicans and the Pennsylvania Licensed Beverage and Tavern Association argue the vetoed House Bill 2513 would have been a better solution.

The measure would have rolled back capacity mandates for all restaurants – not just those self-certified by the state – and would permit alcohol sales beyond 11 p.m. and some bar seating. It went to Wolf’s desk with broad bipartisan support last week, but when the House attempted to override the governor’s veto on Tuesday, about a dozen Democrats withdrew their support, leaving it to fall just two votes shy of the necessary two-thirds threshold.

Jason Gottesman, spokesperson for the House GOP, called the announcement a “half measure” that does little to bring bars and restaurants back from the brink of permanent closure.

“Instead of Democrats blindly following this governor’s misguided mandates, they should listen to the families, workers, and small business owners who have been devastated by his overbroad and inconsistent shutdown and stand ready to balance safety and mitigation with a path toward normalcy,” he said.

Wolf and Democrats argue, however, that Republicans refuse to accept the reality of how the virus spreads and should instead work with them distribute the more than $1 billion left over in CARES Act funding to help the industry. The governor has also pushed the Legislature to fund grants targeted toward small business and the hospitality industry with approximately $325 million of the federal aid.

“We know the restaurant industry has been especially hard hit … we ought to be spending money on that,” Wolf told reporters. “We still have plenty of time to do it. Let’s get it done.”

Chuck Moran, executive director of the PLBTA, also doubts that dining out is the source of the virus’s fall resurgence. He said an analysis of the administration’s own statistics on COVID-19 shows that just 2 percent of contract tracing reports conducted between Oct. 4 and Oct. 10 – out more than 2,800 – indicated a recent trip to a bar or restaurant. Another 17 percent of those cases visited other business types, including salons and gyms, while more than 8 in 10 residents hadn’t patronized any business at all.

“That 83 percent is where the governor should be looking to address if the Commonwealth really wants to contain a fall surge,” Moran said.

He also wanted clarification on whether the state liquor control board would wave all licensing fees – including those related to off-premise catering, Sunday permits and small games of chance – or just “standard” licensing fees. Wolf said Thursday he hopes the board “will do the right thing” and approve the policy at their November meeting.

“While licensing fee help is part of the solution, much more needs to be done, particularly considering the size of the industry and its role in the Pennsylvania economy,” Moran said. “We would have liked to have seen a comprehensive package promoted by the governor.”

The Pennsylvania Restaurant and Lodging Association said in legislative testimony over the summer that the administration’s capacity limits and alcohol sales ban could close more than 7,000 establishments and leave 200,000 unemployed.

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