Pass the Credit Card Competition Act of 2022

The following is a guest editorial that has been published in newspapers across Pennsylvania and sent to Sen. Pat Toomey. This guest editorial is part of a coalition effort that includes the Pennsylvania Licensed Beverage and Tavern Association, Pennsylvania Restaurant and Lodging Association, Pennsylvania Food Merchants Association, Pennsylvania Petroleum Association, and Malt Beverage Distributors Association of Pennsylvania.

Inflation continues to eat away at the budgets of our families here in Pennsylvania and across the nation. In many ways, our industries are on the front lines – we provide food, fuel, lodging, and community to families hard pressed to manage in these times. Because of this, we’re super sensitive to costs, and to not raising prices unless and until we’re forced to.

Accordingly, we examine every cost to us, that goes into the products and services we offer. Some of those costs are not in our control and our set by the companies we buy our inventory from. But there are other costs that can be reduced. Credit card swipe fees are one such cost and we’re joining together today to ask Congress to pass legislation now before the House and Senate, that would reduce these fees by enabling competition in the credit card payment network system.

Many consumers and businesses use credit cards daily to make purchases and manage cash. What many don’t realize is that every time we use a card, Visa, Mastercard, and the other big credit card companies charge on average between 2 and 4% of the total transaction cost. That’s a direct cost to consumers and it’s as big, or bigger, than the total markup charged by most grocery stores.

It may sound small, but it’s not. In fact, credit card swipe fees cost the average family around $900 every year, or about $75 per month – just to use the card you may already pay an annual fee to use, as well as interest on any balance owed. The reason is simple: Visa, Mastercard, and others own the payment networks that process credit card purchases. And, if we want to take credit cards, merchants must use their network.

No negotiation. Just pay up.

It’s anti-competitive and should be changed now.

That’s what the Credit Card Competition Act of 2022 would do: enable competing payment networks so merchants could choose the best option for their business, and for their customers. Reducing swipe fees would help us hold the line on rising prices and pass those savings along to our customers, and there are really no downsides.

Contrary to what the big credit card lobbyists are saying, enabling competing payment networks would not impact rewards programs, acceptability of cards, or consumer choice. It will create a more secure payment processing environment where there are backup networks available in the event of a problem.

But the big credit card companies are fighting this change in every way they can. That should come as no surprise as they raked in $138 billion dollars in swipe fees in 2021 alone. That’s over and above all the other fees consumers pay to use cards.

Credit card swipe fees are added to the cost of just about everything most of us buy. Merchants really have no choice but to do this so, even if you don’t use a card on a purchase, you’re still paying a portion of your cost to cover those fees. Take for example the cost of transportation. High swipe fees are eating into tight margins for gas stations and fuel providers who then have to pass on these costs to consumers and hire less people.

There’s simply no reason that this system should be allowed to continue. Congress should be fostering competition in the marketplace, not hidden monopolies like the credit card payment system. It’s a system that’s been broken for years. Now is the time to fix it.

We’re main street businesses…places people go almost every day. We’re close to the communities we serve, and we know what pressure family budgets are facing today as prices rise relentlessly. We’re committed to holding the line as best we can, and we’re asking Congress to help us by passing the Credit Card Competition Act today. It won’t fix the inflation problem, but it will help us do our part to hold the line for our families. Consumers need a break.

Pennsylvania Licensed  Beverage and Tavern Association

Pennsylvania Restaurant and Lodging Association

Pennsylvania Food Merchants Association

Pennsylvania Petroleum Association

Malt Beverage Distributors Association of Pennsylvania

Lynne Kelly

By Lynne Kelly, AIC
Loss Control Specialist
Illinois Casualty Company

Restaurants and bars are complicated operations with changing electrical needs. Often, during inspections, our Loss Control Specialists find that these needs are being met by use of extension cords and gang plugs, but their use is not a permanent solution and can prove to be a fire hazard. The following guidelines should be observed when using extension cords and power strips in any situation.

• Extension cords and power strips/surge protectors/Relocatable Power Taps (RPTs) should not be used together.
• Extension cords and power strips/surge protectors/RPTs should only be used for low power load equipment, such as computers and audio-visual equipment. They are not meant to be used for microwaves, refrigerators/freezers, toaster ovens, or space heaters. Use in this manner can cause equipment to overheat and may result in a fire.
• Cords should be properly rated for the way they are being used and should be approved by an independent testing laboratory.
• Extension cords should not be run through walls, doorways, ceilings, or floors. If cords are covered, heat cannot escape, which may result in a fire.
• Extension cords should not be stapled or nailed to walls or baseboards.
• Outdoor extension cords should be kept free of snow and standing water.
• Gang plugs should not be used as they may overtax electrical systems and result in fire.
• Extension cords and power strips are temporary, never meant to be used as a permanent solution, and should be unplugged from wall outlets when not in use.

A heavy reliance on extension cords, gang plugs, and power strips, surge protectors, or RPTs indicates that there are too few outlets to meet the needs of the operation. The best way to remedy this is to contact an electrician and have additional electrical outlets installed where needed.

ICC’s Loss Control Specialists are knowledgeable and consult with our insureds about these and other hazards during inspections to help protect their operations and property. To find an agent in your area, visit www.ilcasco.com/find-an-agent.

Illinois Casualty Company is the exclusive preferred vendor of the Pennsylvania Licensed Beverage and Tavern Association for liquor liability and other business insurances. 

Let’s say you hold an off-premises catering permit (“OPCP”). Can you use your permit for an event taking place at a privately-owned concert venue where tickets will be sold. Or for that matter … any private event where tickets are being sold for entry?

According to a July 2022 Advisory Opinion from the Pennsylvania Liquor Control Board, the answer is that it depends.

As our Members know, holders of restaurant licenses and hotel licenses may apply for and obtain an OPCP, which allows the permittee to hold a “catered function” off its licensed premises and on otherwise unlicensed premises. A “catered function” is defined as “the furnishing of food prepared on the premises or brought onto the premises already prepared in conjunction with alcoholic beverages for the accommodation of a person or an identifiable group of people, not the general public, who made arrangements for the function at least thirty days in advance.”

Neither the owner of the property nor the OPCP applicant may sell tickets to a catered function unless one of the following conditions is met:

• the applicant has contracted with an eligible entity for the function, and the function is being used to raise money for the eligible entity’s organization;
• the applicant has contracted with a nonprofit organization as defined under section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)), for an event which has the sole purpose of raising funds for that nonprofit organization; or
• the applicant has contracted with an organization that holds taxexempt status under section 527 of the Internal Revenue Code of 1986.

Therefore, it would only be permissible for you to use your OPCP at an event where tickets will be sold, if the entity selling the tickets qualifies under one of the three conditions defined above.

So, you have an employee working in your establishment who hasn’t yet turned 18 years of age. Can they handle an unopened bottle of wine when working? Is there any type of unopened adult beverage they can handle?

According to a July 2022 Advisory Opinion from the Pennsylvania Liquor Control Board, the simple answer is no.

Generally, only persons over the age of sixteen may be employed by restaurant licensees to work in licensed establishments. 47 P.S. § 4-493(13). To be employed as a bartender or to otherwise serve or dispense alcohol in a licensed retail establishment, a person must be at least eighteen years of age.

Sixteen and seventeen-year-olds may be employed on retail licensed premises to serve food, clear tables, and perform other similar duties. The PLCB has interpreted this to mean that sixteen or seventeen-year-old employees may clear glasses or pitchers from tables, including those that have alcoholic beverages left in them.

However, sixteen or seventeen-year-olds may not participate in any part of a transaction involving alcohol, as this would constitute the service of alcohol. Thus, the PLCB’s Chief Counsel Office has opined that it would be unlawful for a sixteen or seventeen-year-old to “ring up” a sale of alcohol even if the employee does not actually touch the alcoholic beverages.

Neither the Liquor Code nor the PLCB’s Regulations permit a sixteen or seventeen-year-old employee of a restaurant licensee to handle alcoholic beverages unless it is for the purpose of clearing a table. Therefore, the host or hostess must be at least eighteen years of age to retrieve a bottle of wine and give it to a server.

The PLCB noted that the Crimes Code prohibits any minor who is under the age of twenty-one from possessing or knowingly and intentionally transporting alcoholic beverages.

The following is a statement from Chuck Moran, executive director of the Pennsylvania Licensed Beverage and Tavern Association. Today, Governor Wolf signed HB 1615 into law, making it Act 67, which is related to sound regulations. The PLBTA, based in Harrisburg, is the statewide political voice for small business taverns, bars, and licensed restaurants. 

The Pennsylvania Licensed Beverage and Tavern Association thanks Governor Tom Wolf for signing HB 1615 into law earlier today. Now, Act 67 of 2022, the bill creates fairness for all liquor licensees by allowing all to have up to 75 decibels of sound on property lines during certain hours.

For the past three years, the Pennsylvania Licensed Beverage and Tavern Association has advocated for this change to balance the playing field for all liquor licensees, giving each the same rights that wineries already had. This has been a legislative priority set by our Board of Directors.

During the past two years as a results of COVID, the need for this change grew louder as Pennsylvanians put greater demand on outdoor activities including dining and entertainment.

In the past, any sound on the property line of a bar, tavern, licensed restaurant or club could result in a citation. This essentially caused establishments to hesitate before offering outdoor dining entertainment as part of its outdoor dining experience.

Since the law is effective immediately, now all liquor licensees in counties class 2A through class 8 are afforded the same reasonable amount of sound on their property lines. Licensees are permitted up to 75 decibels on their property line from 10 a.m. to 9 p.m. Sunday through Thursday, and 10 a.m. to midnight on Fridays and Saturdays.

This update to outdated liquor laws is fair. It certainly encourages the use of outdoor dining with a low level of sound such as acoustic music. And, we’re sure it will benefit patrons, musicians, and licensed establishments.

Sen. Kristin Phillips-Hill of York County deserves recognition for making this happen. Her amendment last week to Rep. Jesse Topper’s bill made this possible. She championed this issue on behalf of family-owned bars, taverns, and licensed. Our Association thanks her for her work at the state Capitol.

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The following is a statement from Chuck Moran, executive director of the Pennsylvania Licensed Beverage and Tavern Association, concerning today’s state Senate vote on HB 1615 that included an amendment related to sound regulations. The PLBTA, based in Harrisburg, is the statewide political voice for small business taverns, bars, and licensed restaurants.

Early this afternoon, the Pennsylvania Senate amended HB 1615 to balance sound regulations for all liquor licensees. This evening, the Senate passed the amended bill 50-0, sending it back to the state House for concurrence.

For the past three years, the Pennsylvania Licensed Beverage and Tavern Association has advocated for this change to balance the playing field for all liquor licensees, giving each the same rights as wineries. This has been a legislative priority set by our Board of Directors. The need for this change grew louder during the past two years as Pennsylvanians put greater demand on outdoor activities including dining and entertainment as a result of COVID concerns.

At this current time, any sound on the property line of a bar, tavern, licensed restaurant or club could result in a citation, essentially causing establishments to think twice about offering outdoor dining entertainment.

However, the amendment, offered by Sen. Kristin Phillips-Hill of York County, would change regulations by allowing all liquor licensees in counties class 2A through class 8 the same reasonable amount of sound on their property lines. As the bill is written today, licensees would be permitted up to 75 decibels on their property line from 10 a.m. to 9 p.m. Sunday through Thursday, and 10 a.m. to midnight on Fridays and Saturdays.

We believe this change is fair, and are happy that the state Senate passed the amended bill. We also believe the amended HB 1615 will ease pressure that discourages some establishments from offering outdoor dining options that the public demands. Needless to say, by balancing the playing field for all liquor licensees to compete, the world’s most famous and popular language – music – could soon be coming at a reasonable sound level to outdoor dining settings across the state.

Sen. Phillips-Hill has been a champion in her work to help family-owned bars, taverns, and licensed restaurants find a solution to this outdated liquor code regulation.

Our Association thanks Sen. Phillips-Hill, as well as those who voted in favor of today’s action to amend and pass HB 1615. The Pennsylvania Licensed Beverage and Tavern Association encourages the state House to concur quickly so that establishments and patrons across the state can begin benefitting.

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Pasted below is a letter to the Pennsylvania House Liquor Control Committee concerning HB 2272, a bill that through a constitutional amendment could potentially privatize the state’s liquor business. The Liquor Control Committee requested our Association’s position prior to its June 8, 2022, voting meeting on this bill. The bill moved out of committee on a party-line vote.

June 6, 2022

Chairman Carl Metzgar
Chairman Dan Deasy
Pennsylvania House Liquor Control Committee

Dear Chairmen Metzgar and Deasy,

Privatizing Pennsylvania’s liquor business is not as simple as HB 2272 makes it out to be.

The state’s liquor business is a web of rules and politics. Pulling one lever activates a series of reactions within the industry. As such, it is dangerous for taverns, bars, and licensed restaurants to support HB 2272 as it is written.  To do so would be taking a leap of faith, not knowing if our segment of the industry would be protected from unintended consequences.

As the statewide political voice of family-owned establishments which provide tens of thousands of jobs while supporting local economies and communities, the Pennsylvania Licensed Beverage and Tavern Association agrees – in concept – that change is needed. We also realize there are many other problems within the state’s liquor system including antiquated liquor codes that need to be updated for the 21^st Century.

HB 2272 does not address outdated rules and makes no promises about how privatization of the state’s liquor sales system would work.  The Association will not support any change that fails to protect the future of family-owned establishments.

That said, the Pennsylvania Licensed Beverage and Tavern Association (PLBTA) cannot take a position on HB 2272 at this time.  Instead, PLBTA would be happy to recommend changes so that small businesses don’t become collateral damage. Our position on finalizing support or opposition of a constitutional amendment regarding private wholesale/retail wine and spirits sales remains dependent on current and future discussions about what that future looks like.

Sincerely,
Chuck Moran
Executive Director
Pennsylvania Licensed Beverage and Tavern Association

The following is a statement from Chuck Moran, executive director of the Pennsylvania Licensed Beverage and Tavern Association, concerning today’s action in the Pennsylvania Senate passing SB 1212. The PLBTA, based in Harrisburg, is the statewide political voice for small business taverns, bars, and licensed restaurants.

Today, the Pennsylvania Senate passed SB 1212 by a 50-0 vote. This bill balances sound regulations for all liquor licensees while also addressing increased demand for outdoor dining and entertainment in light of continued COVID-19 illnesses.

Without this bill, outdoor dining growth is hampered by outdated liquor code that requires nearly all establishments to have no noise on their property lines or face citations. As a result, many tavern, bar, and licensed restaurant owners as well as clubs fear the consequences of having the slightest level of sound on their property line.

SB 1212 would allow all liquor licensees regardless of license type the same reasonable amount of sound on their property line. As the bill is written today, licensees would be permitted up to 75 decibels on their property line from 10 a.m. to 9 p.m. Sunday through Thursday, and 10 a.m. to midnight on Fridays and Saturdays.

The Pennsylvania Licensed Beverage and Tavern Association has been stating throughout the pandemic that this type of reasonable change is much needed to help better accommodate those concerned about COVID. But, even before the pandemic, our Association had advocated for this change simply to be fair to all liquor licensees. This has been one of our legislative priorities set by our Board of Directors.

The PLBTA thanks the Pennsylvania Senate for its actions today on this matter. And, our Association thanks Sen. Kristin Phillips-Hill for her sponsorship of the bill.

We encourage the Pennsylvania House to move this bill in a timely manner, and to pass it as is without amendments.

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