PRINTER'S NO. 1143
No. 990 Session of 1983
INTRODUCED BY FREIND, TIGUE, CAWLEY, GALLAGHER, NOYE, WOGAN, CORNELL, JOHNSON, CLYMER, MICHLOVIC, FISCHER AND E. Z. TAYLOR, MAY 11, 1983
REFERRED TO COMMITTEE ON LIQUOR CONTROL, MAY 11, 1983
AN ACT 1 Amending the act of April 12, 1951 (P.L.90, No.21), entitled "An 2 act relating to alcoholic liquors, alcohol and malt and 3 brewed beverages; amending, revising, consolidating and 4 changing the laws relating thereto; regulating and 5 restricting the manufacture, purchase, sale, possession, 6 consumption, importation, transportation, furnishing, holding 7 in bond, holding in storage, traffic in and use of alcoholic 8 liquors, alcohol and malt and brewed beverages and the 9 persons engaged or employed therein; defining the powers and 10 duties of the Pennsylvania Liquor Control Board; providing 11 for the establishment and operation of State liquor stores, 12 for the payment of certain license fees to the respective 13 municipalities and townships, for the abatement of certain 14 nuisances and, in certain cases, for search and seizure 15 without warrant; prescribing penalties and forfeitures; 16 providing for local option, and repealing existing laws," 17 authorizing the affixing of official seals to liquor and 18 alcohol packages; providing for the establishment of private 19 licensed retail liquor stores; making certain repeals; 20 creating the Pennsylvania Liquor Licensing and Control Board; 21 and providing for the transition to a private licensed retail 22 store system. 23 The General Assembly of the Commonwealth of Pennsylvania 24 hereby enacts as follows: 25 Section 1. The title of the act of April 12, 1951 (P.L.90, 26 No.21), known as the Liquor Code, is amended to read: 27 AN ACT
1 Relating to alcoholic liquors, alcohol and malt and brewed 2 beverages; amending, revising, consolidating and changing the 3 laws relating thereto; regulating and restricting the 4 manufacture, purchase, sale, possession, consumption, 5 importation, transportation, furnishing, holding in bond, 6 holding in storage, traffic in and use of alcoholic liquors, 7 alcohol and malt and brewed beverages and the persons engaged 8 or employed therein; defining the powers and duties of the 9 Pennsylvania Liquor Licensing and Control Board; providing 10 for the establishment and operation of private retail liquor 11 stores and phasing out of State liquor stores, for the 12 payment of certain license fees to the respective 13 municipalities and townships, for the abatement of certain 14 nuisances and, in certain cases, for search and seizure 15 without warrant; prescribing penalties and forfeitures; 16 providing for local option, and repealing existing laws. 17 Section 2. The act is amended by adding a section to read: 18 Section 101.1. Intention of Legislature.--With respect to 19 the provisions of this act, it is the purpose of this amendatory 20 act to promote a free market system in the economy of this 21 Commonwealth by eliminating all State proprietary interest in 22 the retail marketing of liquor products. This divestiture of the 23 Pennsylvania Liquor Store system shall be in an orderly and 24 economically nondisruptive manner and is designed to provide the 25 consumer with the improved service and advantages of competition 26 which the free enterprise system traditionally fosters while 27 maintaining reasonable controls required by the nature of the 28 product and the magnitude of the transition and maintaining 29 adequate revenue to the Commonwealth from the sale of liquor 30 products. 19830H0990B1143 - 2 -
1 Section 3. The definition of "board" in section 102 of the 2 act is amended and definitions are added to read: 3 Section 102. Definitions.--The following words or phrases, 4 unless the context clearly indicates otherwise, shall have the 5 meanings ascribed to them in this section: 6 * * * 7 "Board" shall mean the Pennsylvania Liquor Licensing and 8 Control Board. 9 * * * 10 "Official Seal" shall mean and include any insignia approved 11 by the board that is required to be affixed to a package, as 12 herein defined. 13 * * * 14 "Private retail liquor store" shall mean and include any 15 premise licensed by the board where liquor or wine is offered 16 for sale or resale in the original sealed containers as prepared 17 for the market by the manufacturer at the place of manufacture 18 but not for consumption on the premises where sold. 19 * * * 20 Section 4. The heading of Article II of the act is amended 21 to read: 22 Article II. 23 Pennsylvania Liquor Licensing and Control Board. 24 Section 5. Section 201 of the act, amended November 23, 1976 25 (P.L.1123, No.235), is amended to read: 26 Section 201. Appointment of Members; Terms; Salaries.--An 27 independent administrative board to be known as the 28 "Pennsylvania Liquor Licensing and Control Board" is hereby 29 created. The board shall consist of [three] five members to be 30 appointed by the Governor by and with the advice and consent of 19830H0990B1143 - 3 -
1 [two-thirds] a majority of [all] the members of the Senate. Of 2 the original members, one shall be appointed for a term of [two 3 years] one year, one for a term of [four] two years, [and] one 4 for a term of [six] three years, one for a term of four years 5 and one for a term of five years from the date of his 6 appointment [and until his successor shall have been appointed 7 and qualified]. Thereafter, all appointments shall be for terms 8 of six years [or until successors are appointed and qualified]. 9 No appointee shall continue to hold office after the expiration 10 of his term pending the appointment of any successor. Each of 11 the members shall receive an annual salary [of twenty-four 12 thousand dollars ($24,000), except the chairman, who shall 13 receive an annual salary of twenty-five thousand dollars 14 ($25,000)] as determined by the Executive Board. 15 Section 6. Sections 203 and 205 of the act are amended to 16 read: 17 Section 203. Chairman of Board.--The [board shall elect one 18 of its] Governor shall appoint one of the members as chairman. 19 The chairman shall, when present, preside at all meetings, and 20 in his absence a member designated by the chairman shall 21 preside. 22 [Two] Three members of the board shall constitute a quorum, 23 and any action or order of the board shall require the approval 24 of at least [two] three members. 25 Section 205. Bonds Required of Members and Secretary.-- 26 Before entering upon the duties of their respective offices or 27 positions, each member of the board and the secretary shall 28 execute and file with the State Treasurer a bond in such penal 29 sum as shall be fixed by the Executive Board of this 30 Commonwealth upon recommendation of the Governor, but the amount 19830H0990B1143 - 4 -
1 of any such bond shall not be less than ten thousand dollars 2 ($10,000). Bonds in such penal sums as shall be fixed by the 3 Executive Board likewise shall be executed and filed with the 4 State Treasurer by such employes of the Pennsylvania Liquor 5 Licensing and Control Board as the head of such board shall, 6 with the approval of the Executive Board, prescribe. Such bonds 7 shall be payable to the Commonwealth of Pennsylvania and shall 8 be conditioned for the faithful performance of the members', 9 secretary's or employes' duties imposed by law or by lawful 10 authority and that the person bonded will not knowingly violate 11 the provisions of this act. All bonds required to be given under 12 this section shall, before being accepted by the State 13 Treasurer, be approved by the [Department of Justice] General 14 Counsel, and unless the Commonwealth shall establish its own 15 indemnity fund, all such bonds shall be given with security 16 approved by the [Department of Justice] General Counsel. If the 17 Commonwealth shall establish its own indemnity fund, the 18 Executive Board may, nevertheless, require any bond given 19 hereunder to be executed by a surety or sureties satisfactory to 20 the [Department of Justice] General Counsel. The cost of such 21 bonds required to be executed by a surety or sureties shall be 22 borne by the board as part of its operating expense. 23 Section 7. Section 207(b), (c) and (e) of the act, (b) 24 amended July 27, 1973 (P.L.247, No.70), are amended to read: 25 Section 207. General Powers of Board.--Under this act, the 26 board shall have the power and its duty shall be: 27 * * * 28 (b) To control the manufacture, possession, sale, 29 consumption, importation, use, storage, transportation and 30 delivery of liquor, alcohol and malt or brewed beverages in 19830H0990B1143 - 5 -
1 accordance with the provisions of this act, and to fix the 2 wholesale [and retail prices] price at which liquors and alcohol 3 shall be sold [at Pennsylvania Liquor Stores] by the board: 4 Provided, That in fixing the sale prices, the board shall not 5 give any preference or make any discrimination as to classes, 6 brands or otherwise, except to the extent and for the length of 7 time necessary to sell such classes or brands in compliance with 8 any Federal action freezing or otherwise controlling the price 9 of said classes or brands, or except where special sales are 10 deemed necessary to move unsaleable merchandise, or except where 11 the addition of a service or handling charge to the fixed sales 12 price of any merchandise in the same comparable price bracket, 13 regardless of class, brand or otherwise, is, in the opinion of 14 the board, required for the efficient operation of the State 15 [store] liquor system. The board shall require each Pennsylvania 16 manufacturer and each nonresident manufacturer of liquors, other 17 than wine, selling such liquors to the board, which are not 18 manufactured in this Commonwealth, to make application for and 19 be granted a permit by the board before such liquors not 20 manufactured in this Commonwealth shall be purchased from such 21 manufacturer. Each such manufacturer shall pay for such permit a 22 fee which, in the case of a manufacturer of this Commonwealth, 23 shall be equal to that required to be paid, if any, by a 24 manufacturer or wholesaler of the state, territory or country of 25 origin of the liquors, for selling liquors manufactured in 26 Pennsylvania, and in the case of a nonresident manufacturer, 27 shall be equal to that required to be paid, if any, in such 28 state, territory or country by Pennsylvania manufacturers doing 29 business in such state, territory or country. In the event that 30 any such manufacturer shall, in the opinion of the board, sell 19830H0990B1143 - 6 -
1 or attempt to sell liquors to the board through another person 2 for the purpose of evading this provision relating to permits, 3 the board shall require such person, before purchasing liquors 4 from him or it, to take out a permit and pay the same fee as 5 hereinbefore required to be paid by such manufacturer. All 6 permit fees so collected shall be paid into the State Stores 7 Fund. The board shall not purchase any alcohol or liquor 8 fermented, distilled, rectified, compounded or bottled in any 9 state, territory or country, the laws of which result in 10 prohibiting the importation therein of alcohol or liquor, 11 fermented, distilled, rectified, compounded or bottled in 12 Pennsylvania. 13 (c) To determine the municipalities within which 14 Pennsylvania Liquor [Stores] Warehouses shall be established and 15 the locations of the [stores] warehouses within such 16 municipalities. 17 * * * 18 (e) Through the Department of [Property and Supplies] 19 General Services as agent, to lease and furnish and equip such 20 buildings, rooms and other accommodations as shall be required 21 for the operation of this act. 22 * * * 23 Section 8. Section 208(a), (c), (d), (f), (i) and (j) of the 24 act, (d) amended July 22, 1970 (P.L.539, No.182) and (f) amended 25 October 11, 1972 (P.L.906, No.215), are amended to read: 26 Section 208. Specific Subjects on Which Board May Adopt 27 Regulations.--Subject to the provisions of this act and without 28 limiting the general power conferred by the preceding section, 29 the board may make regulations regarding: 30 (a) The equipment and management of Pennsylvania Liquor 19830H0990B1143 - 7 -
1 [Stores and warehouses] Warehouses in which liquor and alcohol 2 are kept or sold, and the books and records to be kept therein. 3 * * * 4 (c) The purchase, as provided in this act, of liquor and 5 alcohol, and its supply to [Pennsylvania Liquor Stores] private 6 retail liquor stores and other retail licensees consistent with 7 the provisions of this act. 8 (d) The classes, varieties and brands of liquor and alcohol 9 to be kept and sold in Pennsylvania Liquor [Stores] Warehouses. 10 In making this determination the board shall meet not less than 11 twice a year. 12 * * * 13 (f) The sealing and labeling of liquor and alcohol sold 14 under this act and of liquor and alcohol lawfully acquired by 15 any person prior to January first, one thousand nine hundred 16 thirty-four. This section shall not be construed to authorize 17 the board to require that packages containing wine have affixed 18 thereto the Official Seal of the board nor shall it be construed 19 to authorize the board to allow the affixing of the Official 20 Seal of the board on liquor and alcohol packages after such 21 liquor or alcohol has entered the Commonwealth, except in the 22 case of Pennsylvania manufacturers and except in those cases 23 where the board deems it necessary for the proper enforcement of 24 the provisions of this act relating to sealing. 25 * * * 26 (i) The place and manner of depositing the receipts of 27 Pennsylvania Liquor [Stores] Warehouses and the transmission of 28 balances to the Treasury Department through the Department of 29 Revenue. 30 (j) The solicitation by resident or nonresident vendors of 19830H0990B1143 - 8 -
1 liquor from Pennsylvania licensees and other persons of orders 2 for liquor to be sold through the [Pennsylvania Liquor Stores] 3 board and, in the case of nonresident vendors, the collection 4 therefrom of license fees for such privilege at the same rate as 5 provided herein for importers' licenses. 6 Section 9. Section 210(b) of the act is amended to read: 7 Section 210. Restrictions on Members of the Board and 8 Employes of Commonwealth.--* * * 9 (b) No member or employe of the board nor any employe of the 10 Commonwealth shall solicit or receive, directly or indirectly, 11 any commission, remuneration or gift whatsoever, from any person 12 having sold, selling or offering liquor or alcohol for sale to 13 the board for use in Pennsylvania Liquor [Stores] Warehouses or 14 private retail liquor stores. 15 Section 10. Article III of the act is repealed. 16 Section 11. The act is amended by adding an article to read: 17 Article III-A. 18 PENNSYLVANIA LIQUOR WAREHOUSES. 19 Section 301-A. Board to Establish Liquor Warehouses.--(a) 20 The board shall establish, operate and maintain at such places 21 throughout the Commonwealth as it shall deem essential and 22 advisable, warehouses for the sale of liquor. 23 (b) The board may lease the necessary premises for such 24 warehouses, but all such leases shall be made through the 25 Department of General Services as agent of the board. The board, 26 through the Department of General Services, shall have the 27 authority to purchase such equipment and appointments as may be 28 required in the operation of such establishments. 29 Section 302-A. Selection of Personnel.--Officers and 30 employes of the board, except as herein otherwise provided, 19830H0990B1143 - 9 -
1 shall be appointed and employed subject to the provisions of the 2 act of August 5, 1941 (P.L.752, No.286), known as the "Civil 3 Service Act." 4 Section 303-A. Purchases through the Board.--All liquor and 5 wine sold by private retail liquor stores for consumption or 6 resale in Pennsylvania shall be purchased through the board. All 7 liquor and wine sold by hotel, restaurant or club licensees may 8 be purchased from private retail liquor stores or directly from 9 the board. 10 Section 304-A. Handling and Delivery.--The board at its 11 discretion may provide for delivery either directly from the 12 manufacturer or distributor to retail licensees or from the 13 board's warehouses to the licensees or require the licensees to 14 provide for such transportation. In making its determination the 15 board shall provide a reasonable method by which any item which 16 a licensee wishes to stock for sale may be obtained and stamped 17 with required State seals without undue harm or damage to any 18 item susceptible to spoilage or harm if improperly transported 19 or stored. 20 Section 305-A. Sales by Pennsylvania Liquor Warehouses.-- 21 Every Pennsylvania Liquor Warehouse shall keep in stock for sale 22 such classes, varieties and brands of liquor and alcohol as the 23 board shall prescribe. Every Pennsylvania Liquor Warehouse shall 24 sell liquors at wholesale to private retail liquor stores, 25 hotels, restaurants, clubs and railroad, pullman and steamship 26 companies licensed under this act; and, under the regulations of 27 the board, to pharmacists duly licensed and registered under the 28 laws of the Commonwealth, and to manufacturing pharmacists, and 29 to reputable hospitals approved by the board or chemists. The 30 board may sell to registered pharmacists only such liquors as 19830H0990B1143 - 10 -
1 conform to the Pharmacopoeia of the United States, the National 2 Formulary or the American Homeopathic Pharmacopoeia. The board 3 may sell at special prices under the regulations of the board to 4 United States Armed Forces facilities which are located on the 5 United States Armed Forces installations and are conducted 6 pursuant to the authority and regulations of the United States 7 Armed Forces. The board may by regulation authorize the 8 acceptance of checks for liquor sold. All checks returned to the 9 board as dishonored and not paid within thirty days shall be 10 cause for the board for suspension or revocation of any license 11 issued by the board to the person who issued such check. 12 Section 306-A. Special Orders.--If any retail licensee shall 13 desire to purchase any class, variety or brands of liquor or 14 alcohol which a Pennsylvania Liquor Warehouse does not have in 15 stock, it shall be the duty of such warehouse immediately to 16 order the same in accordance with regulations prescribed by the 17 board. The customer shall be notified immediately upon arrival 18 of the goods. 19 Section 307-A. Tax Exempt Alcohol.--(a) The board may sell 20 tax exempt alcohol to the Commonwealth of Pennsylvania and to 21 persons as specified in subsection (b) to whom the board shall, 22 by regulation to be promulgated by it, issue permits for the 23 purchase of such tax exempt alcohol. 24 (b) Such permits shall be issued to the United States or any 25 governmental agency thereof, to any university or college of 26 learning, any laboratory for exclusive use in scientific 27 research, any hospital, sanitarium, eleemosynary institution or 28 dispensary; to physicians, dentists, veterinarians and 29 pharmacists duly licensed and registered under the laws of the 30 Commonwealth of Pennsylvania; to manufacturing chemists and 19830H0990B1143 - 11 -
1 pharmacists or other persons for use in the manufacture of 2 compounding of preparations unfit for beverage purposes. 3 Section 308-A. No Consumption in Warehouses.--No liquor or 4 alcohol package shall be opened on the premises of a 5 Pennsylvania Liquor Warehouse. No manager or any other employe 6 of the board employed in a Pennsylvania Liquor Warehouse shall 7 allow any liquor or alcohol to be consumed on the premises, nor 8 shall any person consume any liquor or alcohol on such premises. 9 Section 309-A. Rationing.--The board is hereby authorized 10 and empowered to adopt and enforce appropriate rules and 11 regulations to ensure the equitable wholesale distribution 12 through the Pennsylvania Liquor Warehouses, of available liquor 13 and alcohol at any time when the demand therefore is greater 14 than the supply. 15 Section 310-A. Audits by Auditor General.--(a) It shall be 16 the duty of the Department of the Auditor General to make all 17 audits which may be necessary in connection with the 18 administration of the financial affairs of the board. 19 (b) At least one audit shall be made each year of the 20 affairs of the board and all collections made by the 21 Pennsylvania Liquor Warehouses. 22 (c) Special audits of the affairs of the board and the 23 Pennsylvania Liquor Warehouses may be made whenever they may, in 24 the judgment of the Auditor General, appear necessary, and shall 25 be made whenever the Governor shall call upon the Auditor 26 General to make them. 27 (d) Copies of all audits made by the Auditor General shall 28 be promptly submitted to the board and the Governor. 29 (e) Unless the Department of the Auditor General shall 30 neglect or refuse to make the audits as hereinabove required, it 19830H0990B1143 - 12 -
1 shall be unlawful for the board to expend any money appropriated 2 to it by the General Assembly for any audit of its affairs, 3 except for the payment of the compensation and expenses of such 4 auditors as are regularly employed as part of the administrative 5 staff of the board. 6 Section 12. Section 410(e) of the act is amended to read: 7 Section 410. Liquor Importers' Licenses; Fees; Privileges; 8 Restrictions.--* * * 9 (e) Importers' licenses shall permit the holders thereof to 10 bring or import liquor from other states, foreign countries, or 11 insular possessions of the United States, and purchase liquor 12 from manufacturers located within this Commonwealth, to be sold 13 outside of this Commonwealth or to [Pennsylvania Liquor Stores 14 within this Commonwealth] the board, or when in original 15 containers of ten gallons or greater capacity, to licensed 16 manufacturers within this Commonwealth. 17 All importations of liquor into Pennsylvania by the licensed 18 importer shall be consigned to the Pennsylvania Liquor 19 Licensing and Control Board or the principal place of business 20 or authorized place of storage maintained by the licensee. 21 * * * 22 Section 13. Section 411 of the act, amended July 9, 1976 23 (P.L.963, No.188), is amended to read: 24 Section 411. Interlocking Business Prohibited.--(a) No 25 manufacturer and no officer or director of any manufacturer 26 shall at the same time be a holder of a hotel, restaurant [or], 27 club liquor license or private retail liquor store license, nor 28 be the owner, proprietor or lessor of any place covered by any 29 hotel, restaurant [or], club liquor license or private retail 30 liquor store license. 19830H0990B1143 - 13 -
1 (b) No manufacturer, importer or sacramental wine licensee, 2 and no officer or director of a manufacturer, importer or 3 sacramental wine licensee shall own any stock or have any 4 financial interest in any hotel [or], restaurant or private 5 retail liquor store licensed under this act. 6 (c) Excepting as herein provided, no manufacturer, or 7 officer, director, stockholder, agent or employe of a 8 manufacturer shall in any wise be interested, either directly or 9 indirectly, in the ownership or leasehold of any property or the 10 equipment of any property or any mortgage lien against the same, 11 for which a hotel, restaurant [or], club license or private 12 retail liquor store license is granted; nor shall a 13 manufacturer, importer or sacramental wine licensee, or officer, 14 director, stockholder, agent or employe of a manufacturer, 15 importer or sacramental wine licensee, either directly or 16 indirectly, lend any moneys, credit, or give anything of value 17 or the equivalent thereof to, or guarantee the payment of any 18 bond, mortgage, note or other obligation of, any hotel, 19 restaurant [or], club licensee, or private retail liquor store 20 license, his servant, agent or employe, for equipping, fitting 21 out, or maintaining and conducting, either in whole or in part, 22 a hotel, restaurant or club licensed for the selling of liquor 23 for use and consumption upon the premises. 24 (d) Excepting as herein provided, no hotel licensee, 25 restaurant licensee [or], club licensee or private retail liquor 26 store licensee, and no officer, director, stockholder, agent or 27 employe of any such licensee shall in any wise be interested, 28 either directly or indirectly, in the ownership or leasehold of 29 any property or the equipment of any property or any mortgage 30 lien against the same, used by a manufacturer in manufacturing 19830H0990B1143 - 14 -
1 liquor or malt or brewed beverages; nor shall any hotel, 2 restaurant [or], club licensee or private retail liquor store 3 licensee, or any officer, director, stockholder, agent or 4 employe of any such licensee, either directly or indirectly, 5 lend any moneys, credit, or give anything of value or the 6 equivalent thereof, to any manufacturer for equipping, fitting 7 out, or maintaining and conducting, either in whole or in part, 8 an establishment used for the manufacture of liquor or malt or 9 brewed beverages. 10 (e) Except as herein provided, no hotel, restaurant, retail 11 dispenser [or], club licensee or private retail liquor store 12 licensee, and no officer, director or stockholder, agent or 13 employe of any such licensee shall in any wise be interested, 14 directly or indirectly, in the ownership or leasehold of any 15 property or the equipment of any property or any mortgage lien 16 against the same, used by a distributor, importing distributor, 17 or by an importer or sacramental wine licensee, in the conduct 18 of his business; nor shall any hotel, restaurant, retail 19 dispenser [or], club licensee or private retail liquor store 20 licensee, or any officer, director, stockholder, agent or 21 employe of any such licensee, either directly or indirectly, 22 lend any moneys, credit, or give anything of value or the 23 equivalent thereof, to any distributor, importing distributor, 24 importer or sacramental wine licensee, for equipping, fitting 25 out, or maintaining and conducting, either in whole or in part, 26 an establishment used in the conduct of his business. 27 (f) The purpose of this section is to require a separation 28 of the financial and business interests between manufacturers 29 and holders of hotel [or], restaurant liquor licenses or private 30 retail liquor store licenses and, as herein provided, of club 19830H0990B1143 - 15 -
1 licenses, issued under this article, and no person shall, by any 2 device whatsoever, directly or indirectly, evade the provisions 3 of the section. But in view of existing economic conditions, 4 nothing contained in this section shall be construed to prohibit 5 the ownership of property or conflicting interest by a 6 manufacturer of any place occupied by a licensee under this 7 article after the manufacturer has continuously owned and had a 8 conflicting interest in such place for a period of at least five 9 years prior to July eighteenth, one thousand nine hundred 10 thirty-five: Provided, however, That this clause shall not 11 prohibit any hotel, restaurant [or], club liquor licensee or 12 private retail liquor store licensee from owning land which is 13 leased to, and the buildings thereon owned by, a holder of a 14 retail dispenser's license; and nothing in this clause shall 15 prevent the issuance of a retail dispenser's license to a lessee 16 of such lands who owns the buildings thereon: And, provided 17 further, That nothing contained in this section shall be 18 construed to prohibit any hotel, restaurant, retail dispenser 19 [or], club licensee or private retail liquor store licensee or 20 any officer, director or stockholder, agent or employe of any 21 such licensee from having a financial or other interest, 22 directly or indirectly in the ownership or leasehold of any 23 property or the equipment of any property or any mortgage lien 24 against same, used, leased by an importer or sacramental wine 25 licensee for the exclusive purpose of maintaining commercial 26 offices and on the condition that said property is not used for 27 the storage or sale of liquor or malt or brewed beverages in any 28 quantity. 29 Section 14. Article IV of the act is amended by adding a 30 subdivision to read: 19830H0990B1143 - 16 -
1 ARTICLE IV. 2 Licenses and Regulations; Liquor, Alcohol and 3 Malt and Brewed Beverages. 4 * * * 5 (A.1) Private Retail Liquor Stores. 6 Section 420. Authority to Issue Liquor Licenses to Private 7 Retail Liquor Stores.--(a) Subject to the provisions of this 8 act and the regulations promulgated under this act, the board 9 shall have authority to issue a private retail liquor license to 10 a person, corporation or association for any premises for the 11 purpose of establishing, operating and maintaining a private 12 retail liquor store. The licenses shall entitle the private 13 retail liquor store to purchase liquor and alcohol from the 14 board and to keep on the premises such liquor and alcohol and, 15 subject to the provisions of this act and the regulations made 16 thereunder, to sell the same for off-premise consumption. No 17 person who holds any elected public office in this Commonwealth 18 or in any political subdivision of this Commonwealth shall be 19 issued a private retail liquor store license, nor shall such 20 persons have any interest, directly or indirectly, in any such 21 license. 22 (b) Licenses to private retail liquor stores shall be 23 nontransferable and nonassignable from one person to another 24 except upon death of the licensee whose transfer to a member of 25 the immediate family may be provided for by regulation of the 26 board and may be transferred from one location to another only 27 through reapplication to the board. 28 (c) Licenses shall be revocable by the board for cause. 29 (d) Private retail liquor stores shall not be subject to the 30 provisions of sections 407, 461 and 468, clauses (2), (19) and 19830H0990B1143 - 17 -
1 (20) of section 493 and the provisions of the act of June 24, 2 1939 (P.L.806, No.358), entitled "An act limiting the number of 3 licenses for the retail sale of liquor, malt or brewed 4 beverages, or malt and brewed beverages, to be issued by the 5 Pennsylvania Liquor Control Board; defining hotels, and 6 prescribing the accommodations required of hotels in certain 7 municipalities." 8 (e) No single individual, corporation or association shall 9 be allowed to hold interest in more than one such license for a 10 private retail liquor store until after a period of no less than 11 thirty-three months from the effective date of this act at which 12 time the board shall have the authority to issue additional 13 private retail liquor store licenses to existing licensees upon 14 application by said licensees. In reviewing an application for 15 said additional license or licenses, the board may deny an 16 application for an additional license by an existing licensee 17 only when, by a preponderance of evidence, it finds: 18 (1) that the issuance of an additional license to an 19 existing licensee would substantially lessen competition or 20 create a monopoly in the retail distribution of liquor and 21 alcohol within the local market area; or 22 (2) that any application for an additional license had been 23 filed pursuant to the direct or indirect acquisition of the 24 whole or any part of the stock, other share capital or assets of 25 another individual, corporation or association wherein the 26 effect of such acquisition or of the use of such stock by the 27 voting or granting of proxies or otherwise, would substantially 28 lessen competition or create a monopoly in the retail 29 distribution of liquor and alcohol within the local market area. 30 Section 421. License Districts; License Year; Hearings for 19830H0990B1143 - 18 -
1 Private Retail Liquor Store Licenses and Renewals.--The board 2 may, by regulation, divide the State into convenient license 3 districts and may hold hearings on applications for licenses and 4 renewals thereof, as it deems necessary, at a convenient place 5 or places in each of said districts, at such times as it shall 6 fix, by regulation, for the purpose of hearing testimony for and 7 against applications for new licenses and renewals thereof. The 8 board may provide for the holding of such hearings by examiners 9 learned in the law, to be appointed by the Governor, who shall 10 not be subject to the act of August 5, 1941 (P.L.752, No.286), 11 known as the "Civil Service Act." Such examiners shall make a 12 report to the board in each case with their recommendations. The 13 board shall, by regulation, fix the license period and may 14 provide for staggered expiration dates. 15 Section 422. Applications for Private Retail Liquor 16 Licenses.--(a) Every applicant for a private retail liquor 17 license or for the transfer of an existing license to another 18 premises shall file a written application with the board in such 19 form and containing such information as the board shall from 20 time to time prescribe, which shall be accompanied by a filing 21 fee in an amount determined by the board sufficient to cover 22 related costs, the prescribed license fee and the bond 23 hereinafter specified. 24 (b) With each initial application every applicant shall 25 provide a financial statement in the form and containing such 26 information as the board shall from time to time prescribe to 27 indicate the applicant's financial capability to operate the 28 private licensed retail store and the estimated volume of 29 business to be conducted in the private retail liquor store. 30 (c) With each initial application and each renewal, the 19830H0990B1143 - 19 -
1 applicant shall identify the location and ownership of the 2 proposed site for the private retail liquor store. 3 (d) If the applicant is a natural person, his application 4 must show that he is a citizen of the United States and has been 5 a resident of this Commonwealth for at least two years 6 immediately preceding his application and is not acting as an 7 agent for any other person, partnership, association or group of 8 persons beneficially interested in such license. 9 (e) If the applicant is a corporation, the application must 10 show that the corporation was created under the laws of 11 Pennsylvania or holds a certificate of authority to transact 12 business in Pennsylvania, that all officers, directors and 13 stockholders with a major interest (five per cent or more) in 14 the stock of the corporation are citizens of the United States 15 and that the manager is a citizen of the United States. 16 (f) (1) Each application shall be signed and verified by 17 oath or affirmation by the owner, if a natural person, or, in 18 the case of an association, by a member or partner thereof, or, 19 in the case of a corporation, by an executive officer thereof or 20 any person specifically authorized by the corporation to sign 21 the application, to which shall be attached written evidence of 22 his authority. 23 (2) If the applicant is an association, the application 24 shall set forth the names and addresses of the persons 25 constituting the association, and if a corporation, the names 26 and addresses of the principal officers thereof. 27 (g) Every applicant for a new license or for the transfer of 28 an existing license to another premises not then licensed shall 29 post, for a period of at least sixty days beginning with the day 30 the application is filed with the board, in a conspicuous place 19830H0990B1143 - 20 -
1 on the outside of the premises or at the proposed new location 2 for which the license is applied, a notice of such application, 3 in such form, of such size, and containing such information as 4 the board may require by its regulations. Every such applicant 5 shall also advertise the notice of such application in a 6 newspaper of general circulation, or a weekly newspaper serving 7 the area in which the store will be located, once before the 8 posting hereinbefore required and a second time during the first 9 week of such posting. Proof of the posting and of the 10 advertising of such notice shall be filed with the board. 11 (h) If any false statement is intentionally made in any part 12 of the application, the affiant shall be deemed guilty of a 13 misdemeanor of the second degree and, upon conviction, shall be 14 subject to the penalties provided by this article. 15 Section 423. Review and Approval of Application for Private 16 Retail Liquor Store License.--(a) All applications for 17 licensees shall be thoroughly reviewed by the board and by 18 appropriate law enforcement agencies before approval or 19 disapproval. 20 (b) Reviews shall include thorough review of the required 21 financial statement and any other supporting financial 22 information which shall be required by the board. 23 (c) The board shall not grant a license to any applicant who 24 has been convicted of a felony within the five years immediately 25 preceding the date of application. 26 (d) The board shall not grant a license to any applicant who 27 receives funds for the financing of any part of the private 28 retail liquor store from any individual who has been convicted 29 of a felony within the five years immediately preceding the date 30 of application. 19830H0990B1143 - 21 -
1 (e) In any instance in which a license applicant or persons 2 with financial interest in the license are under indictment for 3 a felony or under investigation by a legally constituted grand 4 jury, the board shall withhold approval or disapproval of the 5 license until such time as all legal proceedings related to the 6 felony are resolved. 7 (f) Upon review of the application and upon receipt of the 8 proper fees and bond, and upon being satisfied of the truth of 9 the statements in the application, that the applicant is the 10 only person in any manner pecuniarily interested in the business 11 so asked to be licensed and that no other person will be in any 12 manner pecuniarily interested therein during the continuance of 13 the license, except as hereinafter permitted, and that the 14 applicant is a person of good repute, that the premises applied 15 for meet all the requirements of this act and the regulations of 16 the board, that the applicant seeks a license for a private 17 retail liquor store as defined in section 102 and that the 18 issuance of such license is not prohibited by any of the 19 provisions of this act, the board shall grant and issue to the 20 applicant a private retail liquor license. 21 Section 424. Physical Limitations.--(a) The premises of all 22 private retail liquor stores shall be self-contained units with 23 limited customer access. All purchases made within the 24 limitations of the premises shall be paid for at a location 25 within the confines of the liquor sales area. 26 (b) Every license application for a private retail liquor 27 store shall contain a description of the premises for which the 28 applicant desires a license and shall set forth such other 29 material, information and description of plan of that premises 30 where it is proposed to keep and sell liquor as may be required 19830H0990B1143 - 22 -
1 by the regulations of the board. 2 (c) The descriptions, information and plans referred to in 3 this subsection shall show the proposed location at the time the 4 application is made, and shall show any alterations proposed to 5 be made thereto, or the new building proposed to be constructed, 6 after the approval by the board of the application for a license 7 or for the transfer of an existing license to another premises 8 not then licensed. No physical alterations, improvements or 9 changes shall be required to be made, nor shall any new building 10 for any such purpose be required to be constructed until 11 approval of the application for license or for the transfer of 12 an existing license to another premises not then licensed by the 13 board. After approval of the application, the licensee shall 14 make the physical alterations, improvements and changes to the 15 licensed premises, or shall construct the new building in the 16 manner specified by the board at the time of approval, and the 17 licensee shall not transact any business under the license until 18 the board has approved the completed physical alterations, 19 improvements and changes to the licensed premises, or the 20 completed construction of the new building as conforming to the 21 specifications required by the board at the time of issuance or 22 transfer of the license, and is satisfied that the establishment 23 is a private retail liquor store as defined by this act. The 24 board may require that all such alterations or construction or 25 conformity to definition be completed within six months from the 26 time of issuance or transfer of the license. Failure to comply 27 with these requirements shall be considered cause for revocation 28 of the license. No such license shall be transferable between 29 the time of issuance or transfer of the license and the approval 30 of the completed alterations or construction by the board and 19830H0990B1143 - 23 -
1 full compliance by the licensee with requirements of this act, 2 except in the case of death of the licensee prior to full 3 compliance with all of the aforementioned requirements, in which 4 event, the license may be transferred by the board as provided 5 by regulation of the board for the transfer of the license in 6 the case of death of the licensee. 7 (d) The board shall have the discretion to limit the number 8 of retail licenses issued in a particular municipality if it 9 finds that the number of retail liquor stores in such 10 municipality is sufficient to serve the local market and that 11 any increase in the number of such licenses would be detrimental 12 to the public health, safety, morals, economic welfare or 13 general welfare of the community. The board may consider the 14 impact of such premises on the character and aesthetics of the 15 immediate neighborhood. The board may also consider whether such 16 premises will cause substantial injury to the value of other 17 property in the neighborhood in which it is to be located. Such 18 injury shall not include the competitive business injury 19 normally expected to result to an existing retail liquor store 20 by the grant of an additional retail liquor license in the same 21 area. 22 Section 425. License Fees.--License fees for private retail 23 liquor stores shall be graduated according to the volume of 24 liquor obtained through the Pennsylvania Liquor Licensing and 25 Control Board. The board, through regulation, shall set the fees 26 in such a manner so as to ensure that license revenues are 27 sufficient that all costs of the board for the enforcement and 28 licensing including advertising by the board of private retail 29 liquor stores are reimbursed. Also, the license fee shall be 30 sufficiently high to insure that the licensee has a significant 19830H0990B1143 - 24 -
1 commitment to the license as an indication that the licensee has 2 sufficient resources to establish, operate and maintain a 3 responsible business. All fees received shall be deposited in 4 the State Stores Fund. 5 Section 426. Sales by Private Retail Liquor Stores.--(a) 6 Every private retail liquor store may sell liquor for 7 consumption off-premise. In addition to the sale of liquor, 8 private retail liquor stores may sell related merchandise not 9 including beer within the controlled area of the store. The 10 board shall promulgate regulations stipulating what additional 11 related merchandise may be offered for retail sale in private 12 retail liquor stores. 13 (b) In those areas of the State which do not prohibit by 14 local option private retail liquor stores and where the board 15 receives no acceptable applicants for the licensing of a private 16 retail liquor store, the board may issue licenses to a person or 17 corporation for sale of liquor or wine for consumption off the 18 premises at a location which shall not be subject to the 19 provisions of subsection (a) of section 424. In no case shall 20 such location provide for self-service sales of wine or liquor. 21 (c) Private retail liquor store licensees may sell liquor 22 and related merchandise only after seven o'clock antemeridian of 23 any day until two o'clock antemeridian of the following day, 24 except Sunday, and except as provided in section 472.5 and 25 except on any primary, municipal or general election day. 26 (d) Any private retail liquor store may, by giving notice to 27 the board, advance by one hour the hours herein prescribed as 28 those during which liquor may be sold during such part of the 29 year when daylight saving time is being observed generally in 30 the municipality in which the place of business of such licensee 19830H0990B1143 - 25 -
1 is located. Any licensee who elects to operate his place of 2 business in accordance with daylight saving time shall post a 3 conspicuous notice in his place of business that he is operating 4 in accordance with daylight saving time. 5 (e) Notwithstanding any provisions to the contrary, whenever 6 December 31 falls on a Sunday, every private retail liquor store 7 may sell liquor and related merchandise on any such day after 8 one o'clock postmeridian and until two o'clock antemeridian of 9 the following day. 10 (f) No liquor or alcohol package shall be opened on the 11 premises of a private licensed retail store. No licensee nor any 12 employe of any licensee shall allow any liquor or alcohol to be 13 consumed on the premise, nor shall any person consume any liquor 14 on such premises. 15 Section 15. Section 465(d)(5) of the act is amended to read: 16 Section 465. All Licensees to Furnish Bond.--* * * 17 (d) The penal sum of the respective bonds filed under the 18 provisions of this section shall be as follows: 19 * * * 20 (5) Hotel, restaurant, club [and], public service liquor 21 licensees and private retail liquor store licensees, two 22 thousand dollars ($2,000.00), but in the case of a railroad or 23 pullman company, such penal sum shall cover every dining, club 24 or buffet car of such company operated under such license. 25 * * * 26 Section 16. The act is amended by adding a section to read: 27 Section 471.1. Refusal to Issue, Suspension or Revocation of 28 License.--The board shall have the power to refuse to issue and 29 the power to suspend or revoke a license when the board finds 30 that: 19830H0990B1143 - 26 -
1 (1) The licensee has violated any of the provisions of this 2 act or any of the rules and regulations of the board. 3 (2) The applicant or licensee has knowingly presented to the 4 board false, incomplete or misleading information relating to 5 licensure. 6 (3) The applicant or licensee has pleaded guilty, entered a 7 plea of nolo contendere or has been found guilty of a felony by 8 a judge or jury in any state or Federal court. 9 Section 17. Section 472 of the act, amended July 11, 1980 10 (P.L.558, No.117), is amended to read: 11 Section 472. Local Option.--(a) In any municipality or any 12 part of a municipality where such municipality is split so that 13 each part thereof is separated by another municipality, an 14 election may be held on the date of the primary election 15 immediately preceding any municipal election, but not oftener 16 than once in four years, to determine the will of the electors 17 with respect to the granting of liquor licenses to hotels, 18 restaurants and clubs, not oftener than once in four years, with 19 respect to the granting of licenses to retail dispensers of malt 20 and brewed beverages, not oftener than once in four years with 21 respect to granting of licenses to wholesale distributors and 22 importing distributors, or not more than once in four years with 23 respect to the establishment, operation and maintenance [by the 24 board of Pennsylvania liquor stores] of private retail liquor 25 stores, within the limits of such municipality or part of a 26 split municipality, under the provisions of this act: Provided, 27 however, Where an election shall have been held at the primary 28 preceding a municipal election in any year, another election may 29 be held under the provisions of this act at the primary 30 occurring the fourth year after such prior election: And 19830H0990B1143 - 27 -
1 provided further, That an election on the question of 2 establishing and operating [a State liquor store] private retail 3 liquor stores shall be initiated only in those municipalities, 4 or that part of a split municipality that shall have voted 5 against the granting of liquor licenses; and that an election on 6 the question of granting wholesale distributor and importing 7 distributor licenses shall be initiated only in those 8 municipalities or parts of split municipalities that shall have 9 at a previous election voted against the granting of dispenser's 10 licenses. [Whenever] The question relating to a private retail 11 liquor store may appear on the primary ballot first following 12 passage of this act and subsequent to that time at any primary 13 election immediately preceding a municipal election in any year 14 at least four years thereafter. In all municipalities that have 15 opted to exclude State liquor stores at elections preceding the 16 adoption of this act, the exclusion of private retail liquor 17 stores will continue until at a later election a majority of the 18 voting electors vote yes on such a question. 19 (b) Except as provided in subsection (a), whenever electors 20 equal to at least twenty-five per cent of the highest vote cast 21 for any office in the municipality or part of a split 22 municipality at the last preceding general election shall file a 23 petition with the county board of elections of the county for a 24 referendum on the question of granting any of said classes of 25 licenses [or the establishment of Pennsylvania liquor stores], 26 the said county board of elections shall cause a question to be 27 placed on the ballots or on the voting machine board and 28 submitted at the primary immediately preceding the municipal 29 election. Separate petitions must be filed for each question to 30 be voted on. Said proceedings shall be in the manner and subject 19830H0990B1143 - 28 -
1 to the provisions of the election laws which relate to the 2 signing, filing and adjudication of nomination petitions, 3 insofar as such provisions are applicable. 4 (c) When the question is in respect to the granting of on- 5 premise liquor licenses, it shall be in the following form: 6 Do you favor the granting of on-premise liquor licenses 7 for the sale of liquor in........................ Yes 8 of..............................................? No 9 (d) When the question is in respect to the granting of 10 licenses to retail dispensers of malt and brewed beverages, it 11 shall be in the following form: 12 Do you favor the granting of malt and brewed 13 beverage retail dispenser licenses for 14 consumption on premises where sold in the........ Yes 15 of..............................................? No 16 (e) When the question is in respect to the granting of 17 licenses to wholesale distributors of malt or brewed beverages 18 and importing distributors, it shall be in the following form: 19 Do you favor the granting of malt and brewed 20 beverage wholesale distributor's and importing 21 distributor's licenses not for consumption on 22 premises where sold in the....................... Yes 23 of..............................................? No 24 (f) When the question is in respect to the establishment, 25 operation and maintenance of [Pennsylvania liquor stores] 26 private retail liquor stores it shall be in the following form: 27 Do you favor the establishment, operation and 28 maintenance of [Pennsylvania liquor stores] 29 private retail liquor stores in the........... Yes 30 of...........................................? No 19830H0990B1143 - 29 -
1 (g) In case of a tie vote, the status quo shall obtain. If a 2 majority of the voting electors on any such question vote "yes," 3 then liquor licenses shall be granted by the board to hotels, 4 restaurants and clubs, or malt and brewed beverage retail 5 dispenser licenses or wholesale distributor's and importing 6 distributor's license for the sale of malt or brewed beverages 7 shall be granted by the board, or [the board may establish, 8 operate and maintain Pennsylvania liquor stores] to individuals 9 or corporations for establishing, operating and maintaining a 10 private retail liquor store, as the case may be, in such 11 municipality or part of a split municipality, as provided by 12 this act; but if a majority of the electors voting on any such 13 question vote "no," then the board shall have no power to grant 14 or to renew upon their expiration any licenses of the class so 15 voted upon in such municipality or part of a split 16 municipality[; or if the negative vote is on the question in 17 respect to the establishment, operation and maintenance of 18 Pennsylvania liquor stores, the board shall not open and operate 19 a Pennsylvania liquor store in such municipality or part of a 20 split municipality, nor continue to operate a then existing 21 Pennsylvania liquor store in the municipality or part of a split 22 municipality for more than two years thereafter or after the 23 expiration of the term of the lease on the premises occupied by 24 such store, whichever period is less, unless and until at a 25 later election a majority of the voting electors vote "yes" on 26 such question]. 27 Section 18. The act is amended by adding sections to read: 28 Section 472.4. Additional Local Powers.--In any municipality 29 wherein private retail liquor store licenses have been issued, 30 the municipal government through local ordinances shall have the 19830H0990B1143 - 30 -
1 power to exercise additional options to control the sale of 2 liquor within the limits of the municipality. The additional 3 powers shall be limited to the following: 4 (1) Municipal governments may, within reason, further 5 restrict the opening and closing times of private retail liquor 6 stores over and above that provided in this act. 7 (2) Municipal governments may, within reason, further 8 restrict the amount of on-premise advertising. 9 Section 472.5. Sunday Sales.--No private retail liquor store 10 shall sell liquor on Sunday. 11 Section 19. Section 491(2), (3), (7) and (13) of the act, 12 (2) amended October 2, 1974 (P.L.665, No.220) and October 10, 13 1974 (P.L.692, No.231), are amended to read: 14 Section 491. Unlawful Acts Relative to Liquor, Alcohol and 15 Liquor Licensees.-- 16 It shall be unlawful-- 17 * * * 18 (2) Possession or Transportation of Liquor or Alcohol. For 19 any person, except a manufacturer or the board or the holder of 20 a sacramental wine license or of an importer's license, to 21 possess or transport any liquor or alcohol within this 22 Commonwealth which was not lawfully acquired prior to January 23 first, one thousand nine hundred and thirty-four, or has not 24 been purchased [from a Pennsylvania Liquor Store or] through the 25 board or from a licensed limited winery in Pennsylvania, except 26 miniatures totalling less than one gallon purchased by a 27 collector of the same in another state or foreign country, or in 28 accordance with the board's regulations. The burden shall be 29 upon the person possessing or transporting such liquor or 30 alcohol to prove that it was so acquired. But nothing herein 19830H0990B1143 - 31 -
1 contained shall prohibit the manufacture or possession of wine 2 by any person in his home for consumption of himself, his family 3 and guests and not for sale, not exceeding, during any one 4 calendar year, two hundred gallons, any other law to the 5 contrary notwithstanding. Such wine shall not be manufactured, 6 possessed, offered for sale or sold on any licensed premises. 7 None of the provisions herein contained shall prohibit nor 8 shall it be unlawful for any person to import into Pennsylvania, 9 transport or have in his possession, an amount of liquor not 10 exceeding one gallon in volume upon which a State tax has not 11 been paid, if it can be shown to the satisfaction of the board 12 that such person purchased the liquor in a foreign country or 13 United States territory and was allowed to bring it into the 14 United States. Neither shall the provisions contained herein 15 prohibit nor make it unlawful for (i) any member of the armed 16 forces on active duty, or (ii) any retired member of the armed 17 forces, or (iii) any totally disabled veteran, or (iv) the 18 spouse of any person included in the foregoing classes of 19 persons to import into Pennsylvania, transport or have in his 20 possession an amount of liquor not exceeding one gallon per 21 month in volume upon which the State tax has not been paid, so 22 long as such liquor has been lawfully purchased from a package 23 store established and maintained under the authority of the 24 United States and is in containers identified in accordance with 25 regulations issued by the Department of Defense. Such liquor 26 shall not be possessed, offered for sale or sold on any licensed 27 premises. 28 None of the provisions herein contained shall prohibit nor 29 shall it be unlawful for any consul general, consul or other 30 diplomatic officer of a foreign government to import into 19830H0990B1143 - 32 -
1 Pennsylvania, transport or have in his possession liquor upon
2 which a State tax has not been paid, if it can be shown to the
3 satisfaction of the board that such person acquired the liquor
4 in a foreign country and was allowed to bring it into the United
5 States. Such liquor shall not be possessed, offered for sale or
6 sold on any licensed premises.
7 Any person violating the provisions of this clause for a
8 first offense involving the possession or transportation in
9 Pennsylvania of any liquor in a package (bottle or other
10 receptacle) or wine not purchased [from a Pennsylvania Liquor
11 Store] through the board or from a licensed limited winery in
12 Pennsylvania, with respect to which satisfactory proof is
13 produced that the required Federal tax has been paid and which
14 was purchased, procured or acquired legally outside of
15 Pennsylvania shall upon conviction thereof in a summary
16 proceeding be sentenced to pay a fine of twenty-five dollars
17 ($25) for each such package, plus costs of prosecution, or
18 undergo imprisonment for a term not exceeding ninety (90) days.
19 Each full quart or major fraction thereof shall be considered a
20 separate package (bottle or other receptacle) for the purposes
21 of this clause. Such packages of liquor shall be forfeited to
22 the Commonwealth in the manner prescribed in Article VI of this
23 act but the vehicle, boat, vessel, animal or aircraft used in
24 the illegal transportation of such packages shall not be subject
25 to forfeiture: Provided, however, That if it is a second or
26 subsequent offense or if it is established that the illegal
27 possession or transportation was in connection with a commercial
28 transaction, then the other provisions of this act providing for
29 prosecution as a misdemeanor and for the forfeiture of the
30 vehicle, boat, vessel, animal or aircraft shall apply.
19830H0990B1143 - 33 -
1 (3) Purchase of Liquor or Alcohol. For any person within 2 this Commonwealth, by himself or by an employe or agent, to 3 attempt to purchase, or directly or indirectly, or upon any 4 pretense or device whatsoever, to purchase any liquor or alcohol 5 from any person or source other than [a Pennsylvania Liquor 6 Store] through the board, except in accordance with the 7 provisions of this act or the regulations of the board. 8 * * * 9 (7) Sales of Liquor by Manufacturers and Licensed Importers. 10 For any manufacturer or licensed importer of liquor in this 11 Commonwealth, his agents, servants or employes, to sell or offer 12 to sell any liquor in this Commonwealth except to the board for 13 use in Pennsylvania Liquor [Stores] Warehouses, and in the case 14 of a manufacturer, to the holder of a sacramental wine license 15 or an importer's license, but a manufacturer or licensed 16 importer may sell or offer to sell liquor to persons outside of 17 this Commonwealth. 18 * * * 19 (13) Violation of Certain Rules and Regulations of Board. 20 For any person, to violate any rules and regulations adopted by 21 the board to insure the equitable wholesale [and retail] sale 22 and distribution of liquor and alcohol through the Pennsylvania 23 Liquor [Stores] Warehouses. 24 * * * 25 Section 20. Section 494 of the act is amended by adding a 26 subsection to read: 27 Section 494. Penalties.--* * * 28 (c) (1) Any person who shall violate the provisions of 29 clause (1) of section 493 shall be guilty of a misdemeanor and, 30 upon conviction thereof, shall be sentenced to pay a fine of not 19830H0990B1143 - 34 -
1 less than two thousand five hundred dollars ($2,500), and on 2 failure to pay such fine, to imprisonment for not less than one 3 month nor more than three months, and for any subsequent 4 offense, shall be sentenced to pay a fine of five thousand 5 dollars ($5,000) and on failure to pay such fine, to 6 imprisonment for not less than three months no more than one 7 year. 8 (2) The board shall suspend the license of any licensee who 9 has been convicted of having violated the provisions of clause 10 (1) of section 493 for a period of six months, and upon 11 subsequent offense the board shall revoke the license. 12 Section 21. Section 495 heading, (b), (c) and (e) of the 13 act, amended August 21, 1961 (P.L.1015, No.456), are amended to 14 read: 15 Section 495. Identification Cards; Licensees [and State 16 Liquor Store Employes] Saved From Prosecution.--* * * 17 (b) Such identification card shall be presented by the 18 holder thereof upon request of [any State Liquor Store or] any 19 licensee, or the servant, agent or employe thereof, for the 20 purpose of aiding such store, licensee, or the servant, agent or 21 employe to determine whether or not such person is twenty-one 22 years of age and upwards, when such person desires alcoholic 23 beverage at a [State Liquor Store or] licensed establishment. 24 (c) In addition to the presentation of such identification 25 card, [the agent of the State Liquor Store or] the licensee or 26 his servant, agent or employe, shall require the person whose 27 age may be in question to fill in and sign a card in the 28 following form: 29 ............................ 19 30 I,........................................., hereby represent 19830H0990B1143 - 35 -
1 to ........................................., a [State Store 2 or] licensee of the Pennsylvania Liquor Licensing and Control 3 Board, that I am of full age and discretion and over the age 4 of 21 years, having been born on ....................... 5 19.... at ........... This statement is made to induce said 6 store or licensee above named to sell or otherwise furnish 7 alcoholic beverages to the undersigned. 8 Serial Number of Identification Card: 9 I understand that I am subject to a fine of 10 $300.00 and sixty days imprisonment for any 11 misrepresentation herein. 12 .................. 13 (Name) 14 .................. 15 (Address) 16 Witness: 17 Name............................ 18 Address......................... 19 Such statement shall be printed upon a 3 inch by 5 inch or 4 20 inch by 5 inch file card, which card shall be filed 21 alphabetically by the [State Liquor Store or] licensee, at or 22 before the close of business on the day of which said 23 certificate is executed, in a file box containing a suitable 24 alphabetical index, and which card shall be subject to 25 examination by any officer, agent or employe of the Liquor 26 Licensing and Control Board at any and all times. 27 * * * 28 (e) The signed statement in the possession of a licensee [or 29 an employe of a State Liquor Store] may be offered as a defense 30 in all civil and criminal prosecutions for serving a minor, and 19830H0990B1143 - 36 -
1 no penalty shall be imposed if the Liquor Licensing and Control 2 Board or the courts are satisfied that the licensee [or State 3 Liquor Store employe] acted in good faith. 4 Section 22. Section 802 of the act, amended September 28, 5 1961 (P.L.1728, No.702), is amended to read: 6 Section 802. Moneys Paid Into The State Stores Fund for Use 7 of the Commonwealth.--All moneys, except fees to be paid into 8 the Liquor License Fund as provided by the preceding section, 9 collected, received or recovered under the provisions of this 10 act for license fees, permit fees, filing fees and registration 11 fees, from forfeitures, sales of forfeited property, compromise 12 penalties and sales of liquor and alcohol [at the Pennsylvania 13 Liquor Stores] through the board shall be paid into the State 14 Treasury through the Department of Revenue into a special fund 15 to be known as "The State Stores Fund." 16 [One-half] Except for private retail store fees, one-half of 17 all application filing and transfer fees shall be credited to a 18 special account designated as the Enforcement Officers' 19 Retirement Account. The moneys credited to this account shall be 20 paid, annually, by the board to the State [Employes'] Employees' 21 Retirement Board to be paid into the State [Employes'] 22 Employees' Retirement Fund and credited to the Enforcement 23 Officers' Benefit Account. All other moneys in such fund shall 24 be available for the purposes for which they are appropriated by 25 law. 26 Section 23. The act is amended by adding an article to read: 27 Article VIII-A. 28 TRANSITION TO PRIVATE RETAIL LIQUOR STORES. 29 Section 801-A. Transition Power of Board.--It shall be the 30 power and duty of the Pennsylvania Liquor Licensing and Control 19830H0990B1143 - 37 -
1 Board to prepare for and carry out an orderly transition to the 2 private retail liquor store system in a manner which to the 3 extent possible is consistent with this act and other laws of 4 the Commonwealth, minimizes disruption in service to the public 5 and maximizes opportunities for small business and minority 6 business in Pennsylvania. 7 Section 802-A. Opening of the First Private Retail Liquor 8 Stores.--(a) In order to facilitate an orderly transition the 9 first private retail liquor stores shall be authorized to open 10 on a date to be specified by the board in either the month of 11 June or July after a period of no less than twenty-one months 12 and nor more than thirty-three months from the effective date of 13 this act. 14 (b) If the board determines that an orderly transition would 15 be facilitated by opening a limited number of private retail 16 liquor stores in selected geographic areas in order to test 17 transition procedures and identify problems which may result in 18 necessary alterations to those procedures, the board may 19 authorize the opening of such test stores no more than three 20 months prior to the general initial opening date. In selecting 21 these test stores and locations the board shall take every 22 reasonable precaution to reduce any unfair competitive advantage 23 the test stores may have as a result of an early opening date. 24 Section 803-A. Publication of License Applications and 25 Approvals.--No less often than monthly the board shall cause to 26 be published in at least one newspaper of general circulation in 27 the county in which the private retail liquor store is to be 28 located a list of all applications made and licenses granted for 29 private retail liquor stores. Such listing shall contain both 30 the name of the applicant or licensee and the location of the 19830H0990B1143 - 38 -
1 store. 2 Section 804-A. Availability of Sales History.--The board 3 shall make available a history of sales by product code and 4 State store location. A fee shall be charged for the sales 5 history in an amount determined by the board to be sufficient to 6 cover the costs of preparing and reproducing the history. All 7 fees received from such sales shall be deposited in The State 8 Stores Fund. 9 Section 805-A. Transfer of Existing State Stores.--If a 10 private retail liquor store licensee wishes to take over 11 ownership of merchandise or furnishings of an existing State 12 store the following procedures shall apply: 13 (1) The State store shall be closed for a period of time 14 immediately prior to the effective date of the private store 15 license to allow for a physical inventory of merchandise, 16 supplies and equipment to be purchased by the licensee. 17 (2) The purchase price of merchandise shall be as listed in 18 the wholesale price list as published by the board. 19 (3) The purchase price of supplies shall be the current fair 20 market value of the items at the time of the transfer. 21 (4) The purchase price of equipment shall be fixed by a 22 mutually agreeable appraiser whose fee shall be equally shared 23 by the licensee and the board. 24 (5) The full price of all items being taken over by the 25 licensee shall be paid to the board prior to reopening of the 26 store by the licensee and all receipts from such sales shall be 27 deposited in The State Stores Fund. 28 Section 806-A. Disposition of State Store Contents.--All 29 product inventory in closed State stores shall be (i) returned 30 to a board warehouse for sale, (ii) transferred to other State 19830H0990B1143 - 39 -
1 stores still open, (iii) held for sale to any retail licensee, 2 or (iv) sold at special sale to licensees or the public as 3 deemed necessary to move unsaleable merchandise. All surplus 4 furnishings and equipment shall be disposed of through the 5 Department of General Services as provided for in the act of 6 April 9, 1929 (P.L.177, No.175), known as "The Administrative 7 Code of 1929." All proceeds shall be deposited in The State 8 Stores Fund. 9 Section 807-A. State Store Closings.--As the market areas of 10 the State stores become covered by private retail liquor stores 11 the board shall close the appropriate State stores. At least 12 three times during the nine months after the first private 13 retail liquor store opens the board shall review all State 14 stores and close those in areas serviced by new licensees. Under 15 no circumstances shall any State store remain open for retail 16 sales beyond the nine months following the general initial 17 opening date set for private retail liquor stores. 18 Section 808-A. Initial Licenses.--To the extent possible 19 license applications shall be processed by the board on a first 20 in, first out basis and should logistics require it, the 21 merchandise orders filled by the board warehouses shall be 22 processed in order of date of license approval so that the first 23 licenses issued shall receive priority. 24 Section 809-A. Price List.--The initial wholesale price list 25 of items stocked in board warehouses shall be published no later 26 than fifteen weeks prior to the date on which the first private 27 retail liquor store may open. 28 Section 810-A. Initial Store Orders.--Initial licensee 29 orders shall be received no later than three months prior to the 30 date on which the first private retail liquor store may open. 19830H0990B1143 - 40 -
1 Section 811-A. Advertising.--Advertising by private retail 2 liquor store licensees shall be permitted one month in advance 3 of the effective date of their license. 4 Section 812-A. Employment and Application Preferences; 5 Financial Assistance.--(a) Any person who is an employe of the 6 board on the effective date of this act whose employment is 7 terminated by reason of this act shall be deemed preferred on 8 the civil service list for any employment for which he would 9 otherwise be qualified with the Commonwealth. 10 (b) All otherwise qualified applicants for private retail 11 liquor licenses who are employes of the board on the effective 12 date of this act, or who are members of a minority group, shall 13 be given preference by the board for the issuance of such 14 licenses. The board shall by regulation establish the criteria 15 and procedures to be used in the implementation of this 16 subsection and shall give public notice of the same at least 17 eighteen months prior to the opening of the first private retail 18 liquor stores. 19 (c) All otherwise qualified applicants for private retail 20 liquor licenses who are employes of the board on the effective 21 date of this act, or who are members of a minority group shall 22 be given financial and technical assistance from the State Store 23 Fund and the board. The financial assistance shall be made 24 available in accordance with the same terms and conditions or 25 set forth in the act of July 22, 1974 (P.L.598, No.206), known 26 as the "Pennsylvania Minority Business Development Authority 27 Act," except that the maximum interest rate shall be four per 28 centum per annum. Such persons shall also be eligible for all 29 financial assistance available under other programs of this 30 Commonwealth designed to aid or promote, through low interest 19830H0990B1143 - 41 -
1 loans or otherwise, small business enterprises and minority 2 business enterprises. The board, in cooperation with the 3 Department of Commerce, shall assist such persons in making 4 application for such financial assistance. 5 Section 24. (a) The Pennsylvania Liquor Control Board is 6 hereby abolished and the terms of its members shall end 7 immediately. 8 (b) All personnel, files, stock, equipment and moneys under 9 the direction or control of the Pennsylvania Liquor Control 10 Board are transferred to the Pennsylvania Liquor Licensing and 11 Control Board. 12 Section 25. All acts and parts of acts are repealed insofar 13 as they are inconsistent with this act. 14 Section 26. (a) All but section 5 of this act shall take 15 effect in 30 days. 16 (b) Section 5 of this act shall take effect immediately. B21L47RAW/19830H0990B1143 - 42 -