AN ACT

 

1Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
2reenacted, "An act relating to alcoholic liquors, alcohol and
3malt and brewed beverages; amending, revising, consolidating
4and changing the laws relating thereto; regulating and
5restricting the manufacture, purchase, sale, possession,
6consumption, importation, transportation, furnishing, holding
7in bond, holding in storage, traffic in and use of alcoholic
8liquors, alcohol and malt and brewed beverages and the
9persons engaged or employed therein; defining the powers and
10duties of the Pennsylvania Liquor Control Board; providing
11for the establishment and operation of State liquor stores,
12for the payment of certain license fees to the respective
13municipalities and townships, for the abatement of certain
14nuisances and, in certain cases, for search and seizure
15without warrant; prescribing penalties and forfeitures;
16providing for local option, and repealing existing laws," in
17preliminary provisions, further providing for definitions and
18for interpretation; in the Pennsylvania Liquor Control Board,
19further providing for general powers, providing for fee
20adjustment by regulation and further providing for subject of
21regulations and for wine and spirits marketing; in
22Pennsylvania Liquor Stores, further providing for
23establishment and for sales; providing for wine and spirits
24distribution; in licensing, further providing for authority,
25for issuance, for transfer or extension, for fees, for sales
26and restrictions, for wine auction permits and for importers'
27licenses; in licensing, providing for grocery store licenses,
28convenience store licenses, big-box retail store licenses and
29pharmacy licenses; in licensing, further providing for malt
30and brewed beverages licenses; in licensing, providing for
31enhanced distributors licenses; in licensing, further

1providing for license applications, for license restrictions,
2for sales, storage and purchase restrictions, for
3interlocking business, for breweries, for county limitations,
4for administrative proceedings, for assignability, for
5renewal and temporary provisions, for sanctions, for local
6option, for shipment into Commonwealth, for unlawful acts and
7for hours of operation; in licensing, providing for unlawful
8acts; in licensing, further providing for penalties and for
9vacation of premises; in distilleries, wineries, bonded
10warehouses, bailees and transporters, further providing for
11limited wineries, for distilleries and for license fees;
12providing for emergency State tax; and making a related
13repeal.

14The General Assembly of the Commonwealth of Pennsylvania
15hereby enacts as follows:

16Section 1. Section 102 of the act of April 12, 1951 (P.L.90,
17No.21), known as the Liquor Code, reenacted and amended June 29,
181987 (P.L.32, No.14), is amended by adding definitions to read:

19Section 102. Definitions.--The following words or phrases,
20unless the context clearly indicates otherwise, shall have the
21meanings ascribed to them in this section:

22"Affiliate" or "person affiliated with" shall mean a person
23that directly or indirectly, through one or more intermediaries,
24controls, is controlled by or is under common control with a
25specified person.

26* * *

27"Bid-rigging" shall mean the concerted activity of two or
28more persons to determine in advance or attempt to influence the
29selected bidder for a wine and spirits retail license. The term
30includes any of the following:

31(1) Conspiring or cooperating in the preparation of bids,
32including the determination of bid amounts.

33(2) Submitting prearranged bids, agreed-upon higher or lower
34bids or other complementary bids.

35(3) Agreeing to submit identical bids.

36(4) Agreeing to coordinate the retail zones in which a

1person will or will not submit a bid.

2(5) Agreeing to share profits with or give an equity
3interest to a person who does not submit the high bid.

4(6) Agreeing to set up territories to restrict competition.

5(7) Agreeing not to submit a bid.

6"Big-box retail store" shall mean a reputable place operated
7by persons of good repute, which sells a wide variety of
8merchandise, including automotive supplies, housewares,
9electronics, home furnishings, apparel, health and beauty
10supplies and perishable and non-perishable food items, in bulk
11and/or individual quantities, and which has an area under one
12roof of one hundred thousand (100,000) square feet or more.

13"Blended brand valuation" shall mean, for any particular
14brand of liquor, the sum of the wholesale profit margin on each
15product of a brand.

16* * *

17"Brand of liquor" shall mean a liquor product or series of
18liquor products produced by a single manufacturer.

19* * *

20"Change in control" shall mean, for purposes of wholesale or
21retail licensees as defined in this section, the acquisition by
22a person or group of persons acting in concert of more than
23twenty per centum of a licensee's securities or other ownership
24interests, with the exception of any ownership interest of the
25person that existed at the time of initial licensing, or more
26than twenty per centum of the securities or other ownership
27interests of a corporation or other legal entity which owns,
28directly or indirectly, at least twenty per centum of the
29securities or other ownership interests of the licensee.

30* * *

1"Commission" shall mean the State Civil Service Commission.

2* * *

3"Controlling interest" shall mean as follows:

4(1) For a publicly traded legal entity, an interest in a
5legal entity, applicant or licensee whereby a person's sole
6voting rights under State law or corporate articles or bylaws
7entitles the person to elect or appoint one or more of the
8members of the board of directors or other governing board or
9the ownership, directly or indirectly, of five per centum or
10more of the securities of the publicly traded corporation.

11(2) For a privately held corporation, partnership, limited
12liability company or other form of privately held legal entity,
13the holding of any securities in the legal entity.

14"Convenience store" shall mean a reputable place operated by
15persons of good repute which primarily sells food prepared for
16consumption on and off the premises, and non-food items, and may
17sell liquid fuels for use in motor vehicles, having an area
18under one roof of more than one thousand (1,000) square feet but
19less than ten thousand (10,000) square feet.

20* * *

21"Department" shall mean the Department of General Services of
22the Commonwealth.

23* * *

24"Displaced employe" shall mean a salaried employe of the
25board whose employment is terminated as a sole and direct result
26of the implementation of Article III-A. The term shall not
27include a person who is terminated for cause or who retires or
28resigns, is furloughed or is otherwise separated from employment
29for any other reason. The term excludes intermittent liquor
30store clerks and seasonal liquor store clerks.

1* * *

2"Grocery store" shall mean a reputable place operated by
3persons of good repute, which primarily sells food, supplies for
4the table and food products for human consumption off the
5premises and which has an area under one roof of ten thousand
6(10,000) square feet or more.

7* * *

8"Institution of higher education" shall mean a public or
9private institution within this Commonwealth authorized by the
10Department of Education to grant a certificate, associate degree
11or higher degree. The term includes a branch or satellite campus
12of the institution.

13* * *

14"Pharmacy" shall mean any place having an area under one roof 
15of at least 8,000 square feet or more that is properly issued a 
16permit or license by the Pennsylvania State Board of Pharmacy 
17where drugs, devices and diagnostic agents for human or animal 
18consumption are stored, dispensed or compounded, excluding 
19offices or facilities of veterinarians licensed by the State 
20Board of Veterinary Medical Examiners. The term shall not 
21include the operations of a manufacturer or distributor as 
22defined in the act of April 14, 1972 (P.L.233, No.64), known as 
23"The Controlled Substance, Drug, Device and Cosmetic Act." The 
24term does not include an organized pharmacy service in an 
25institution under the direct supervision of a licensed 
26pharmacist.

27* * *

28"Retail licensee" shall mean a person that holds a wine and
29spirits retail license issued pursuant to section 311-A.

30* * *

1"Variable pricing" shall mean, for purposes of the wholesale
2sale of liquor, any disparity in the price of an item sold to
3one licensee as compared to the price of the same item to
4another licensee or a licensee of a different classification.
5The term shall not include discounts for volume purchases.

6* * *

7"Wholesale acquisition factor" shall mean a factor of 2.5
8applied to the wholesale profit margin of a brand of liquor in
9determining a wholesale license fee.

10"Wholesale licensee" shall mean a person that holds a wine
11and spirits wholesale license issued pursuant to section
12321.1-A.

13"Wholesale profit margin" shall mean, for any particular
14liquor product, twenty per centum of the total of costs of goods
15sold of the product in the Commonwealth over the most recent 12-
16month period for which information is available.

17* * *

18"Wine and spirits retail license" shall mean a license issued
19by the department or the board authorizing a person to sell and
20distribute wine and spirits to the public for off the premises
21consumption.

22"Wine and spirits wholesale license" shall mean a license
23issued by the department or the board authorizing a person to
24sell and distribute liquor on a wholesale basis to retail
25licensees and other licensees under this act.

26* * *

27Section 2. Section 104(c) and (d) of the act, amended
28December 7, 1990 (P.L.622, No.160) and December 20, 1996
29(P.L.1513, No.196), is amended to read:

30Section 104. Interpretation of Act.--* * *

1(c) Except as otherwise expressly provided, the purpose of
2this act is to prohibit the manufacture of and transactions in
3liquor, alcohol and malt or brewed beverages which take place in
4this Commonwealth, except by and under the [control] regulatory 
5authority of the board as herein specifically provided, and
6every section and provision of the act shall be construed
7accordingly; to provide a structure in this Commonwealth for a
8distribution system, including the [establishment of
9Pennsylvania liquor stores and] licensing of wine and spirits 
10wholesalers, wine and spirits retailers, importing distributors
11and distributors; and to preserve manufacturers of liquor and
12alcohol and malt and brewed beverages selling those products
13within this Commonwealth. The provisions of this act dealing
14with the manufacture, importation, sale, distribution and
15disposition of liquor, alcohol and malt or brewed beverages
16within the Commonwealth through [the instrumentality of the
17board,] licensees and otherwise, provide the means by which such
18control shall be made effective. This act shall not be construed
19as forbidding, affecting or regulating any transaction which is
20not subject to the legislative authority of this Commonwealth.

21(d) The provisions of this act are intended to create a
22system for distribution [that shall include the fixing of prices 
23for] of liquor and alcohol and controls placed on [prices for]
24the sale and distribution of malt and brewed beverages, and each
25of which shall be construed as integral to the preservation of
26the system, without which system the Commonwealth's control of
27the sale of liquor and alcohol and malt and brewed beverages and
28the Commonwealth's promotion of its policy of temperance and
29responsible conduct with respect to alcoholic beverages would
30not be possible.

1* * *

2Section 3. Section 207 of the act, amended February 21, 2002
3(P.L.103, No.10), November 30, 2004 (P.L.1727, No.221) and
4December 8, 2004 (P.L.1810, No.239), is amended to read:

5Section 207. General Powers of Board.--Under this act, the
6board shall have the power and its duty shall be:

7(a) To buy, import or have in its possession for sale and
8sell liquor, alcohol, corkscrews, wine and liquor accessories,
9trade publications, gift cards, gift certificates, wine- or
10liquor-scented candles and wine glasses in the manner set forth
11in this act: Provided, however, That all purchases shall be made
12subject to the approval of the State Treasurer, or his
13designated deputy. The board shall buy liquor and alcohol at the
14lowest price and in the greatest variety reasonably obtainable.
15The board's authority to exercise the powers granted pursuant to 
16this subsection is subject to the limitations set forth in 
17Article III-A of this act.

18(b) To control the manufacture, possession, sale,
19consumption, importation, use, storage, transportation and
20delivery of liquor, alcohol and malt or brewed beverages in
21accordance with the provisions of this act, and to fix the
22wholesale and retail prices at which liquors and alcohol shall
23be sold at Pennsylvania Liquor Stores. Prices shall be
24proportional with prices paid by the board to its suppliers and
25shall reflect any advantage obtained through volume purchases by
26the board. The board may establish a preferential price
27structure for wines produced within this Commonwealth for the
28promotion of such wines, as long as the price structure is
29uniform within each class of wine purchased by the board. The
30board shall require each Pennsylvania manufacturer and each

1nonresident manufacturer of liquors, other than wine, selling
2such liquors to the board, which are not manufactured in this
3Commonwealth, to make application for and be granted a permit by
4the board before such liquors not manufactured in this
5Commonwealth shall be purchased from such manufacturer. Each
6such manufacturer shall pay for such permit a fee which, in the
7case of a manufacturer of this Commonwealth, shall be equal to
8that required to be paid, if any, by a manufacturer or
9wholesaler of the state, territory or country of origin of the
10liquors, for selling liquors manufactured in Pennsylvania, and
11in the case of a nonresident manufacturer, shall be equal to
12that required to be paid, if any, in such state, territory or
13country by Pennsylvania manufacturers doing business in such
14state, territory or country. In the event that any such
15manufacturer shall, in the opinion of the board, sell or attempt
16to sell liquors to the board through another person for the
17purpose of evading this provision relating to permits, the board
18shall require such person, before purchasing liquors from him or
19it, to take out a permit and pay the same fee as hereinbefore
20required to be paid by such manufacturer. All permit fees so
21collected shall be paid into the State Stores Fund. The board
22shall not purchase any alcohol or liquor fermented, distilled,
23rectified, compounded or bottled in any state, territory or
24country, the laws of which result in prohibiting the importation
25therein of alcohol or liquor, fermented, distilled, rectified,
26compounded or bottled in Pennsylvania. The board's authority to 
27exercise the powers granted pursuant to this subsection is 
28subject to the limitations set forth in Article III-A of this 
29act.

30[(c) To determine the municipalities within which

1Pennsylvania Liquor Stores shall be established and the
2locations of the stores within such municipalities.]

3(d) To grant and issue all licenses and to grant, issue,
4suspend and revoke all permits authorized to be issued under
5this act.

6(e) Through the [Department of General Services] department
7as agent, to lease and furnish and equip such buildings, rooms
8and other accommodations as shall be required for the operation
9of this act.

10(f) To appoint, fix the compensation and define the powers
11and duties of such managers, officers, inspectors, examiners,
12clerks and other employes as shall be required for the operation
13of this act, subject to the provisions of The Administrative
14Code of 1929 and the Civil Service Act.

15(g) To determine the nature, form and capacity of all
16packages and original containers to be used for containing
17liquor, alcohol or malt or brewed beverages.

18(h) Without in any way limiting or being limited by the
19foregoing, to do all such things and perform all such acts as
20are deemed necessary or advisable for the purpose of carrying
21into effect the provisions of this act and the regulations made
22thereunder.

23(i) From time to time, to make such regulations not
24inconsistent with this act as it may deem necessary for the
25efficient administration of this act. The board shall cause such
26regulations to be published and disseminated throughout the
27Commonwealth in such manner as it shall deem necessary and
28advisable or as may be provided by law. Such regulations adopted
29by the board shall have the same force as if they formed a part
30of this act.

1(j) By regulation, to provide for the use of a computerized
2referral system to assist consumers in locating special items at
3Pennsylvania Liquor Stores and for the use of electronic
4transfer of funds and credit cards for the purchase of liquor
5and alcohol at Pennsylvania Liquor Stores. The board's authority 
6to exercise the powers granted pursuant to this subsection is 
7subject to the limitations set forth in Article III-A of this 
8act.

9(k) To issue grants to various entities for alcohol
10education and prevention efforts.

11Section 4. The act is amended by adding a section to read:

12Section 207.1. Adjustment of Fees by Regulation.--(a) 
13Notwithstanding any provision of this act or the act of April 9, 
141929 (P.L.177, No.175), known as "The Administrative Code of 
151929," to the contrary, all fees required under this act shall 
16be fixed by the board by regulation and shall be subject to the 
17act of June 25, 1982 (P.L.633, No.181), known as the "Regulatory 
18Review Act."

19(b) The board shall be authorized to increase license fees
20by regulation under the following conditions:

21(1) If the revenues raised by the fees imposed under this
22act are not sufficient to meet all expenditures of the board
23over a two-year period, the board shall increase the fees by
24regulation, subject to the "Regulatory Review Act," so that the
25projected revenues will meet projected expenditures.

26(2) If the board determines that the fees established by the
27board under subsection (a) are inadequate to meet the minimum
28enforcement efforts required under this act, the board, after
29consultation with the enforcement bureau, and subject to the
30"Regulatory Review Act," shall increase the fees by regulation

1in an amount so that adequate revenues are raised to meet the
2required expenditures.

3(c) All acts or parts of acts are repealed insofar as they
4are inconsistent with this section.

5Section 5. Section 208 of the act is amended to read:

6Section 208. Specific Subjects on Which Board May Adopt
7Regulations.--Subject to the provisions of this act and without
8limiting the general power conferred by the preceding section,
9the board may make regulations regarding:

10[(a) The equipment and management of Pennsylvania Liquor
11Stores and warehouses in which liquor and alcohol are kept or
12sold, and the books and records to be kept therein.]

13(b) The duties and conduct of the officers and employes of
14the board.

15[(c) The purchase, as provided in this act, of liquor and
16alcohol, and its supply to Pennsylvania Liquor Stores.

17(d) The classes, varieties and brands of liquor and alcohol
18to be kept and sold in Pennsylvania Liquor Stores. In making
19this determination the board shall meet not less than twice a
20year.

21(e) The issuing and distribution of price lists for the
22various classes, varieties or brands of liquor and alcohol kept
23for sale by the board under this act.]

24(f) The labeling of liquor and alcohol sold under this act
25and of liquor and alcohol lawfully acquired by any person prior
26to January first, one thousand nine hundred thirty-four.

27(g) Forms to be used for the purposes of this act.

28(h) The issuance of licenses and permits and the conduct,
29management, sanitation and equipment of places licensed or
30included in permits.

1[(i) The place and manner of depositing the receipts of
2Pennsylvania Liquor Stores and the transmission of balances to
3the Treasury Department through the Department of Revenue.

4(j) The solicitation by resident or nonresident vendors of
5liquor from Pennsylvania licensees and other persons of orders
6for liquor to be sold through the Pennsylvania Liquor Stores
7and, in the case of nonresident vendors, the collection
8therefrom of license fees for such privilege at the same rate as
9provided herein for importers' licenses.]

10Section 6. Section 215 of the act, amended June 25, 2010
11(P.L.217, No.35), is repealed:

12[Section 215. Wine and Spirits Marketing.--

13(e) The board is authorized to participate in or sponsor
14wine and spirits events for the purpose of educating consumers
15as to the wines and spirits available in this Commonwealth. The
16wine and spirits to be used for the event may be acquired
17through the State store system or may be donated from outside
18this Commonwealth. Participation in the tastings may be
19conditioned on the purchase of a ticket to the event. The event
20may include events occurring on premises licensed by the board,
21and the board may sell wine and spirits for off-premises
22consumption in an area designated by the board for such sale.]

23Section 7. Section 301 of the act is amended to read:

24Section 301. Board to Establish State Liquor Stores.--(a)
25The board shall [establish,] operate and maintain at such places
26throughout the Commonwealth as it shall deem essential and
27advisable, stores to be known as "Pennsylvania Liquor Stores,"
28for the sale of liquor and alcohol in accordance with the
29provisions of and the regulations made under this act[; except
30that no store not so already located shall be located within

1three hundred feet of any elementary or secondary school, nor
2within a dry municipality without there first having been a
3referendum approving such location. When the board shall have
4determined upon the location of a liquor store in any
5municipality, it shall give notice of such location by public
6advertisement in two newspapers of general circulation. In
7cities of the first class, the location shall also be posted for
8a period of at least fifteen days following its determination by
9the board as required in section 403(g) of this act. The notice
10shall be posted in a conspicuous place on the outside of the
11premises in which the proposed store is to operate or, in the
12event that a new structure is to be built in a similarly visible
13location. If, within five days after the appearance of such
14advertisement, or of the last day upon which the notice was
15posted, fifteen or more taxpayers residing within a quarter of a
16mile of such location, or the City Solicitor of the city of the
17first class, shall file a protest with the court of common pleas
18of the county averring that the location is objectionable
19because of its proximity to a church, a school, or to private
20residences, the court shall forthwith hold a hearing affording
21an opportunity to the protestants and to the board to present
22evidence. The court shall render its decision immediately upon
23the conclusion of the testimony and from the decision there
24shall be no appeal. If the court shall determine that the
25proposed location is undesirable for the reasons set forth in
26the protest, the board shall abandon it and find another
27location. The board may establish, operate and maintain such
28establishments for storing and testing liquors as it shall deem
29expedient to carry out its powers and duties under this act], 
30and subject to the limitations set forth in Article III-A of 

1this act.

2(b) The board may lease the necessary premises for such 
3stores or establishments, but all such leases shall be made 
4through the [Department of General Services] department as agent 
5of the board. The board, through the [Department of General 
6Services] department, shall have authority to purchase such 
7equipment and appointments as may be required in the operation 
8of such stores or establishments.

9Section 8. Section 305 of the act, amended May 8, 2003
10(P.L.1, No.1), July 17, 2003 (P.L.63, No.15), May 8, 2003
11(P.L.1, No.1), December 8, 2004 (P.L.1810, No.239), July 6, 2005
12(P.L.135, No.39) and July 5, 2012 (P.L.1007, No.116), is amended
13to read:

14Section 305. Sales by Pennsylvania Liquor Stores.--(a) The
15board shall in its discretion determine where and what classes,
16varieties and brands of liquor and alcohol it shall make
17available to the public and where such liquor and alcohol will
18be sold. Every Pennsylvania Liquor Store shall be authorized to
19sell combination packages. If a person desires to purchase a
20class, variety or brand of liquor or alcohol not currently
21available from the board, he or she may place a special order
22for such item so long as the order is for two or more bottles.
23The board may require a reasonable deposit from the purchaser as
24a condition for accepting the order. The customer shall be
25notified immediately upon the arrival of the goods.

26In computing the retail price of such special orders for
27liquor or alcohol, the board shall not include the cost of
28freight or shipping before applying the mark-up and taxes but
29shall add the freight or shipping charges to the price after the
30mark-up and taxes have been applied.

1Unless the customer pays for and accepts delivery of any such
2special order within ten days after notice of arrival, the store
3may place it in stock for general sale and the customer's
4deposit shall be forfeited.

5During the retail divestiture process as provided in Article
6III-A, the board shall continue to take and process special
7liquor orders for residents and licensees of the board, and may
8establish a protocol by which pre-paid orders may be picked up
9at either a Pennsylvania Liquor Store or from the licensed
10premises of a wine and spirits retail licensee. A wine and
11spirits retail licensee is authorized to assess a handling fee
12for this purpose. Any product not claimed at a wine and spirits
13retail store by the purchaser shall be returned to the board
14after ten days notice of arrival was sent to the purchaser.

15(b) Every Pennsylvania Liquor Store shall sell liquors at
16wholesale to wine and spirits retail licensees, grocery stores, 
17big-box retail stores, pharmacies, enhanced distributors,
18hotels, restaurants, clubs, and railroad, pullman and steamship
19companies licensed under this act; and, under the regulations of
20the board, to pharmacists duly licensed and registered under the
21laws of the Commonwealth, and to manufacturing pharmacists, and
22to reputable hospitals approved by the board, or chemists. Sales
23to licensees shall be made at a price that includes a discount
24of ten per centum from the retail price, except that sales made 
25to wine and spirits retail licensees shall include a discount of 
26twenty per centum from the retail price. The board may sell to
27registered pharmacists only such liquors as conform to the
28Pharmacopoeia of the United States, the National Formulary, or
29the American Homeopathic Pharmacopoeia. The board may sell at
30special prices under the regulations of the board, to United

1States Armed Forces facilities which are located on United
2States Armed Forces installations and are conducted pursuant to
3the authority and regulations of the United States Armed Forces.
4All other sales by such stores shall be at retail. A person
5entitled to purchase liquor at wholesale prices may purchase the
6liquor at any Pennsylvania Liquor Store upon tendering cash,
7check or credit card for the full amount of the purchase. For
8this purpose, the board shall issue a discount card to each
9licensee identifying such licensee as a person authorized to
10purchase liquor at wholesale prices. Such discount card shall be
11retained by the licensee. The board may contract through the
12Commonwealth bidding process for delivery to wholesale licensees
13at the expense of the licensee receiving the delivery.

14(c) Whenever any checks issued in payment of liquor or
15alcohol purchased from State Liquor Stores by persons holding
16wholesale purchase permit cards issued by the board shall be
17returned to the board as dishonored, the board shall charge a
18fee of five dollars per hundred dollars or fractional part
19thereof, plus all protest fees, to the maker of such check
20submitted to the board. Failure to pay the face amount of the
21check in full and all charges thereon as herein required within
22ten days after demand has been made by the board upon the maker
23of the check shall be cause for revocation or suspension of any
24license issued by the board to the person who issued such check
25and the cancellation of the wholesale purchase permit card held
26by such person.

27(d) No liquor or alcohol package shall be opened on the
28premises of a Pennsylvania Liquor Store. No manager or other
29employe of the board employed in a Pennsylvania Liquor Store
30shall allow any liquor or alcohol to be consumed on the store

1premises, nor shall any person consume any liquor or alcohol on
2such premises, except liquor and alcohol which is part of a
3tasting conducted pursuant to the board's regulations. Such
4tastings may also be conducted in the board's headquarters or
5regional offices.

6(e) The board may sell tax exempt alcohol to the
7Commonwealth of Pennsylvania and to persons to whom the board
8shall, by regulation to be promulgated by it, issue special
9permits for the purchase of such tax exempt alcohol.

10Such permits may be issued to the United States or any
11governmental agency thereof, to any university or college of
12learning, any laboratory for use exclusively in scientific
13research, any hospital, sanitorium, eleemosynary institution or
14dispensary; to physicians, dentists, veterinarians and
15pharmacists duly licensed and registered under the laws of the
16Commonwealth of Pennsylvania; to manufacturing chemists and
17pharmacists or other persons for use in the manufacture or
18compounding of preparations unfit for beverage purposes.

19(f) Every purchaser of liquor, alcohol, corkscrews, wine or
20liquor accessories, trade publications, gift cards, gift
21certificates, wine- or liquor-scented candles or wine glasses
22from a Pennsylvania Liquor Store shall receive a numbered
23receipt which shall show the price paid therefor and such other
24information as the board may prescribe. Copies of all receipts
25issued by a Pennsylvania Liquor Store shall be retained by and
26shall form part of the records of such store.

27[(g) The board is hereby authorized and empowered to adopt
28and enforce appropriate rules and regulations to insure the
29equitable wholesale and retail sale and distribution, through
30the Pennsylvania Liquor Stores, of available liquor and alcohol

1at any time when the demand therefor is greater than the
2supply.]

3(h) Every Pennsylvania Liquor Store shall sell gift
4certificates and gift cards which may be redeemed for any
5product sold by the board. In addition, the board may sell
6corkscrews, wine and liquor accessories, wine- or liquor-scented
7candles, trade publications and wine sleeves at Pennsylvania
8Liquor Stores.

9(i) Notwithstanding any other provision of law to the
10contrary, the board may sell wine in containers having a
11capacity of sixty liters or less.

12Section 9. The act is amended by adding an article to read:

13ARTICLE III-A

14WINE AND SPIRITS DISTRIBUTION

15SUBARTICLE A

16GENERAL PROVISIONS

17Section 301-A. Scope of article.

18This article relates to the privatization of liquor
19distribution in this Commonwealth.

20Section 302-A. Legislative intent.

21The General Assembly finds and declares as follows:

22(1) The wholesale and retail of liquor should no longer
23be by the Commonwealth, but rather by private persons
24licensed and regulated by the Commonwealth.

25(2) The health and welfare of the citizens of this
26Commonwealth will be adequately protected by the regulation
27of private licensees through strict enforcement of laws and
28rules relating to the purchase and sale of liquor.

29(3) The sale of liquor through wholesale and retail
30licensees will provide residents with improved customer

1convenience, and will provide an opportunity for competitive
2pricing and enhanced product selection.

3(4) Modernization of the retail sale of wine and beer
4through new outlets for consumption off the premises will
5further enhance customer convenience.

6(5) This article will improve operation and efficiency
7of State government.

8(6) The authorization of wine and spirits wholesale and
9retail licenses is intended to continue the generation of
10revenue to the Commonwealth related to the wholesale and
11retail sale of liquor.

12(7) The transition to a privately-owned and privately-
13operated wholesale and retail liquor distribution system
14should be accomplished in a manner that protects the public
15through regulation and policing of all activities involved in
16the wholesale and retail sale of liquor.

17(8) The establishment of wine and spirits wholesale and
18retail licenses is intended to provide broad economic
19opportunities to the citizens of this Commonwealth and to be
20implemented in such a manner as to prevent monopolization by
21establishing reasonable restrictions on the control of
22wholesale and retail licensees.

23(9) The transition to a privately-owned and privately-
24operated wholesale and retail liquor distribution system
25should be accomplished in a manner that minimizes disruption
26of services to the public.

27(10) In conjunction with the transition to privately-
28owned and privately-operated liquor wholesalers and retail
29liquor stores, this article is intended to modernize the
30retail sale of wine and beer through new outlets for

1consumption off the premises, further enhancing customer
2convenience.

3(11) With the transition to a privately-owned and 
4privately-operated wholesale and retail liquor distribution 
5system, and with the addition of new licensing 
6classifications, it is necessary to enhance alcohol education 
7and enforcement efforts to:

8(i) ensure against the illegal sale of alcohol;

9(ii) prevent and combat the illegal consumption of
10alcohol by minors and visibly intoxicated persons; and

11(iii) discourage the intemperate use of alcohol.

12(12) Participation in the wholesale and retail sale of
13liquor by a wholesale or retail licensee is a privilege,
14conditioned upon the proper and continued qualification of
15the licensee and upon the discharge of the affirmative
16responsibility of the licensee to provide the department and
17the board with assistance and information necessary to assure
18that the policies declared by this article are achieved.

19Section 303-A. Transition to private distribution system,
20powers and duties of the department and the board.

21(a) Orderly transition.--The department and the board have
22the power and duty to implement this article and effect an
23orderly transition to a privately-owned and privately-operated
24wholesale and retail liquor distribution system in this
25Commonwealth in a manner which is consistent with this article
26and the laws of this Commonwealth and which seeks to maintain
27uninterrupted service to the public.

28(b) Retail transition.--

29(1) The department shall substantially transition the
30board's retail distribution of alcohol to privately-owned and

1privately-operated wine and spirits retail licensees before
2divesting the board's wholesale operations. The department
3shall engage the services of a consultant to assist the
4committee in effectuating the intent of this section. The
5department shall not be bound by the procedural constraints
6or requirements of 62 Pa.C.S. Pt. I (relating to Commonwealth
7Procurement Code) in hiring the consultant.

8(2) The divesture of the board's retail operations shall
9be accomplished through the issuance of 1,200 wine and
10spirits retail licenses, allocated by county, which shall be
11awarded through a competitive bidding process as set forth in
12this article. Each successful applicant shall be thoroughly
13investigated to determine whether the person is a reputable
14and responsible person suitable to be licensed to sell liquor
15in this Commonwealth.

16(3) As licenses are awarded in a given county, State
17liquor stores located in the region shall begin to wind down
18operations, terminate applicable lease agreements,
19redistribute or furlough store personnel and dispose of
20remaining inventory and store property.

21(4) The transition shall fully divest the board of
22operations relating to the retail distribution of liquor
23within three years and six months of the effective date of
24this section.

25(c) Wholesale transition.--

26(1) After the board's retail operations have been
27substantially divested, the department shall transition the
28board's wholesale distribution of liquor to privately-owned
29and privately-operated wholesale licensees.

30(2) The divesture of the board's wholesale operations

1shall be accomplished through the issuance of wine and
2spirits wholesale licenses by brand of liquor, which shall be
3subject to an application process as set forth in this
4article. The transition must fully divest the board of all
5operations relating to the wholesale distribution of liquor
6within six months of the complete divestiture of the board's
7retail operations.

8(d) Cooperation required.--

9(1) The board shall fully cooperate with the department
10or its consultant in all aspects of implementation of this
11article and shall provide the department or its consultant
12with all records and information in the possession of the
13board upon request.

14(2) The board shall devote sufficient resources to
15planning and preparation for the divestiture of its wholesale
16and retail functions.

17(3) The board shall use its best efforts in coordinating
18with the department or its consultant, wine and spirits
19retail licensees and wine and spirits wholesale licensees so
20as to maintain uninterrupted service to the residents of this
21Commonwealth during divestiture.

22(e) Prohibition.--The board shall not engage in retail or
23wholesale distribution of liquor following completion of the
24retail and wholesale transition to a private distribution
25system.

26Section 304-A. Reports to the General Assembly.

27One year after the effective date of this section, and each
28year thereafter until the board has been fully divested of its
29wholesale and retail operations, the board, in cooperation with
30the department, shall submit to the Secretary of the Senate and

1the Chief Clerk of the House of Representatives, a report on
2wholesale and retail alcohol sales in this Commonwealth and the
3implementation of this article, including:

4(1) the total revenue earned by the issuance of licenses
5under this article;

6(2) the distribution and sale of brands through private
7wholesalers;

8(3) the net profit or loss of each wine and spirits
9retail licensed premise and State liquor store in this
10Commonwealth; and

11(4) the status of the ongoing transition, including
12store closures and employee displacement.

13Section 305-A. Temporary regulations.

14(a) Promulgation.--In order to facilitate the prompt
15implementation of this article, regulations promulgated by the
16department shall be deemed temporary regulations which shall
17expire no later than five years following the effective date of
18this section. The department may promulgate temporary
19regulations not subject to:

20(1) sections 201, 202 and 203 of the act of July 31,
211968 (P.L.769, No.240), referred to as the Commonwealth
22Documents Law; or

23(2) the act of June 25, 1982 (P.L.633, No.181), known as
24the Regulatory Review Act.

25(b) Expiration.--The authority provided to the department to
26adopt temporary regulations under subsection (a) shall expire on
27January 1, 2018.

28SUBARTICLE B

29DIVESTITURE OF RETAIL LIQUOR DISTRIBUTION

30Section 311-A. Retail divestiture through issuance of wine and

1spirits retail licenses.

2(a) Formation of retail divestiture strategy committee.--

3(1) Upon the effective date of this section, the
4department shall appoint individuals to a retail divestiture
5strategy committee, which shall be comprised of
6representatives from the department, representatives from a
7consultant hired by the department to facilitate the
8divestiture process and at least one representative from each
9of the board's Bureau of Retail Operations, Bureau of Supply
10Chain and Bureau of Licensing.

11(2) The committee shall be chaired by a representative
12from the department.

13(3) The committee shall establish the procedures and
14logistical steps necessary to implement the retail
15divestiture process, within the framework of this article.
16The role of the committee is to provide advisory input to the
17department during the divestiture process; and, as such, its
18meetings are not subject to 65 Pa.C.S. Ch. 7 (relating to
19open meetings).

20(b) Initiation of divestiture.--The department shall
21coordinate efforts so that the auction process under this
22subarticle concludes not later than three years and six months
23from the effective date of this section.

24Section 311.1-A. Issuance of wine and spirits retail licenses.

25(a) Auction of retail licenses.--The department shall be
26authorized to award not more than 1,200 wine and spirits retail
27licenses to qualified applicants pursuant to an auction process,
28in which licenses shall be awarded to the highest applicant
29meeting the requirements of this article.

30(b) License classification.--There shall be two classes of

1wine and spirits retail licenses as follows:

2(1) Class A wine and spirits retail licenses shall be
3authorized for issuance to successful applicants consistent
4with this subarticle. Class A licenses shall authorize the
5operation of a retail wine and spirits store in an
6establishment which exceeds 15,000 square feet of retail
7floor space and dedicates a minimum of 600 linear feet of
8shelf space for the sale of liquor. The department shall not
9allocate more than 800 Class A licenses.

10(2) Class B wine and spirits retail licenses shall be
11authorized for issuance to successful applicants consistent
12with this subarticle. Class B licenses shall authorize the
13operation of a retail wine and spirits store in an
14establishment which has less than 15,000 square feet of
15retail floor space. The department shall not allocate more
16than 400 Class B licenses.

17(c) License allocation.--

18(1) The department, in accordance with the
19recommendations of the retail divestiture strategy committee
20and its consultant and with the full cooperation and
21assistance of the board, shall:

22(i) allocate the aggregate number of wine and
23spirits retail store licenses to be auctioned in each
24county; and

25(ii) apportion how many licenses should be of a
26particular class.

27(2) A county shall not be allocated fewer wine and
28spirits retail licenses than:

29(i) the number of existing State liquor stores in
30the county; or

1(ii) the aggregate number of licensed distributors
2and importing distributors in the county if that number
3is more than the number of existing State liquor stores.

4(3) In determining the appropriate number of licenses to
5be auctioned in each county, and the apportionment of Class A
6and Class B licenses, the department shall consider the
7following factors:

8(i) The existing number, location and sizes of the 
9State liquor stores in the county and neighboring 
10counties.

11(ii) The hours of operation for existing State
12liquor stores in the county.

13(iii) The geographic size and population density of
14the county.

15(iv) The most recent sales data from the board for:

16(A) existing stores;

17(B) number of stock-keeping units made available 
18in those stores; and

19(C) sales trends of those stores.

20(v) The locations of licensed grocery stores, big-
21box retail stores, pharmacies and distributor licenses
22and the proposed location of pending applications for the
23licenses, including enhanced distributor licenses.

24(vi) Other information the department deems relevant 
25in order to ensure the reasonable availability of wine 
26and spirits in the county.

27(d) Other licenses.--Nothing in this act shall prohibit any
28of the following:

29(1) A wine and spirits retail licensee from receiving:

30(i) a distributor license under section 431 which

1authorizes the licensee to sell malt and brewed beverages
2at retail for consumption off the premises; or

3(ii) an enhanced distributor license under section
4431.2.

5(2) A restaurant liquor licensee or a retail dispenser
6licensee from receiving a wine and spirits retail license as
7long as the restaurant or retail dispenser does not have an
8interior connection to or with the wine and spirits retail
9licensed premises.

10Section 312-A. Conduct of retail auctions.

11The department shall conduct two retail auctions in each
12county. The first auction shall be limited to Class A wine and
13spirits retail licenses and shall be commenced not later than
14six months from the effective date of this section, and conclude
15not longer than one year from the effective date of this
16section. The second auction shall be limited to Class B wine and
17spirits retail licenses and shall be commenced as soon as
18practicable after the Class A retail license auction is
19completed.

20Section 313-A. Retail auction requirements.

21(a) Conduct of auctions.--Class A and Class B retail
22auctions shall be conducted by the department consistent with
23the following:

24(1) The department shall establish a deadline for
25submission of bids for all auctions and publish the deadlines
26in the Pennsylvania Bulletin and on the department's Internet
27website.

28(2) The department shall review the submission of timely
29bids to determine compliance with the minimum bid
30requirements of section 317.1-A. A bid which does not comply

1with the minimum bid amount will be rejected. Applicant
2identification information and bid amount for each accepted
3bid shall be made subject to public disclosure.

4(3) For each Class A and Class B countywide auction, the
5department shall identify the number of highest bids which
6equals two times the number of Class A and Class B licenses,
7respectively, assigned by the department to a given county.
8The department shall notify all applicants of the high
9bidders identified in each Class A and Class B auction.

10(4) For each retail auction, the department shall
11establish a best and final offer period in which the highest
12bidders identified under paragraph (3) will be provided an
13opportunity to submit a revised bid amount, which will
14represent its best and final offer. An applicant may not
15submit a best and final offer that includes a bid amount
16which is less than the applicant's original bid.

17(5) For Class A and Class B retail license auctions, the
18department shall review the best and final offers and shall
19select a high bidder for each Class A and Class B license
20assigned to a specific county.

21(b) Other applicants.--Nothing in this act shall prohibit a
22person holding a distributor license or a restaurant liquor
23license from submitting a bid and, if successful, being issued a
24wine and spirits retail license, subject to the restrictions
25under this subarticle.

26(c) Applicant collusion.--Persons may not collude to rig a
27bid involving a wine and spirits retail license.

28(d) Criminal penalty.--

29(1) An individual who violates subsection (c) commits a
30felony of the third degree and shall, upon conviction, be

1sentenced to pay a fine of not more than $50,000 or to
2imprisonment for not more than one year, or both.

3(2) A person other than an individual that violates
4subsection (c) commits a felony of the third degree and
5shall, upon conviction, be sentenced to pay a fine of not
6more than $1,000,000.

7(e) Civil penalty.--

8(1) Except as set forth in paragraph (2), the Attorney
9General may bring a civil action against a person that
10violates subsection (c) for a penalty of up to $100,000.

11(2) If there is a criminal action under subsection (d),
12paragraph (1) shall not apply.

13(f) Disqualification, termination and debarment.--In
14addition to any other criminal or civil penalties imposed under
15this section, the following shall apply to a person penalized
16under subsection (d) or (e):

17(1) The person shall be disqualified from bidding on or
18holding a wine and spirits retail license or holding any
19other license authorized under this act for a period of three
20years.

21(2) The board shall revoke any license issued under this
22act.

23(3) The person may be subject to 62 Pa.C.S. § 531
24(relating to debarment and suspension).

25Section 314-A. Postqualification of selected applicants.

26(a) Investigation.--Upon selection of a bid under section
27313-A(a)(5), the department shall immediately convey the
28selected bid information to the board's Bureau of Licensing,
29which shall conduct an investigation of each applicant whose bid
30was accepted based upon the information submitted to evaluate

1whether:

2(1) the applicant qualifies as a reputable, responsible
3and suitable person to hold a wine and spirits retail liquor
4license and operate a wine and spirits store;

5(2) the applicant has proposed an acceptable facility
6and location for a wine and spirits store; and

7(3) the applicant's planned operation complies with this
8article.

9(b) Additional information.--The board may require
10additional information from an applicant and conduct onsite
11inspections, as necessary, to complete the postqualification
12process.

13(c) Assistance with investigations.--The board may enter
14into an agreement with the Pennsylvania State Police or the
15Office of Inspector General to assist the board in the conduct
16of investigations under this section and to provide for the
17reimbursement of actual costs incurred for providing assistance.

18(d) Public input hearings.--

19(1) During the postqualification process, the board
20shall schedule one public input hearing in each of the 11
21board licensing districts, including one in a city of the
22first class, at which interested members of the public will
23be provided the opportunity to testify regarding selected
24applicant qualifications and the suitability of the location
25of the proposed wine and spirits stores. The testimony of a
26public witness shall be considered by the board in the
27postqualification investigation of applicants to which the
28testimony applies.

29(2) The board shall establish a protocol for receiving
30written objections from residents, churches, hospitals,

1charitable institutions, schools and public playgrounds,
2which are located near proposed wine and spirits store
3locations. The board may consider the written objections in
4the postqualification investigation of applicants to which
5the testimony applies. An objector under this paragraph may
6not appeal the board's decision.

7(e) Investigative fees.--The board may charge fees to an
8applicant to recover the costs directly related to the board's
9investigation within the postqualification process.

10(f) Acceptance of qualifications.--An applicant's
11qualifications shall be accepted by the board if the board's
12investigation reveals all of the following:

13(1) The bid information was truthful.

14(2) The applicant and its officers, directors and
15principals, if any, are of good repute, responsible and
16suitable for operating a wine and spirits store.

17(3) The applicant possesses sufficient financial
18resources to:

19(i) operate a wine and spirits store;

20(ii) pay taxes due; and

21(iii) meet financial obligations.

22(4) The applicant possesses sufficient business
23experience to operate a wine and spirits store.

24(5) The proposed facilities are compliant with all of
25the operational requirements of the statement of conditions
26under this article.

27(6) The proposed location is suitable within the
28community.

29(g) Issuance of license.--If a selected applicant's
30qualifications are accepted by the board, the board shall

1qualify the applicant and shall issue a wine and spirits retail
2license to the applicant upon the occurrence of the following:

3(1) Execution and delivery to the department and the
4board of the statement of conditions required under section
5319-A.

6(2) Payment of the bid amount by certified check or wire
7transfer to a designated restricted account established in
8The State Stores Fund.

9(3) Payment of any outstanding bid or investigation
10fees.

11(4) Fulfillment of any other conditions required by the
12department or the board.

13(h) Qualifications unacceptable.--

14(1) If an applicant's qualifications are not accepted by
15the board, the board shall submit the results of its
16investigation and the rationale for this conclusion to the
17department. The department shall identify the next highest
18applicant that was not selected in the auction under section
19313-A(a)(5) and submit the bid information to the board for a
20postqualification investigation of that applicant, consistent
21with subsection (a).

22(2) If the second highest applicant is not approved, the
23department shall repeat the postqualification process for the
24next highest unselected applicant in the auction for that
25county.

26(3) If the third highest applicant in an auction is not
27approved by the department, the department may:

28(i) proceed with a new auction for that wine and
29spirits retail license;

30(ii) conduct an additional best and final offer

1period to consider additional bids from the original
2auction; or

3(iii) proceed with a new auction for the other class
4of license.

5(i) Approval of qualifications.--If the qualifications of
6the applicant are approved by the board under subsection (f),
7the board shall issue a wine and spirits retail license to the
8successful applicant consistent with the requirements of
9subsection (g).

10(j) License not entitlement.--

11(1) Nothing contained in this article is intended to
12create an entitlement to a wine and spirits retail license. A
13wine and spirits retail license is a privilege as between the
14board and the licensee.

15(2) A wine and spirits retail license is property as
16between the licensee and third parties.

17(k) Terms of licensure.--

18(1) A wine and spirits retail license shall be in effect
19unless the board:

20(i) revokes, suspends or fails to renew the license;
21or

22(ii) revokes the operating authority of the licensee
23under the license requirements of this article.

24(2) A wine and spirits retail license shall be subject
25to renewal every two years consistent with this article.

26(3) Nothing under this subsection relieves a wine and
27spirits retail licensee of the affirmative duty to notify the
28board of changes relating to the status of its license or to
29other information contained in the application materials on
30file with the department or the board.

1Section 315-A. Auctions with no or insufficient minimum bids.

2If an insufficient number of bids which meet or exceed the
3minimum bid are submitted in an auction in a county, the
4department:

5(1) shall select the bids which meet or exceed the
6minimum bid subject to postqualification; and

7(2) may conduct:

8(i) a new auction for the remaining wine and spirits
9retail licenses without a minimum bid or with a modified
10minimum bid; or

11(ii) a new auction for the other class of license.

12Section 316-A. Protest of bid selection.

13(a) Protest.--

14(1) Within five days of the selection of an applicant in
15county auction, an applicant that is not selected by the
16department for the wine and spirits retail license for that
17county must file a protest in writing with the department.

18(2) Failure to comply with paragraph (1) results in a
19waiver of an applicant's opportunity to challenge or appeal
20the selection of the department.

21(b) Requirements for protests.--A protest filed under this
22section must comply with all of the following:

23(1) For Class A auctions and Class B auctions, the
24subject matter of a protest is restricted to the conduct of
25the license auction for the specific county in which the
26protester participated. No person may protest an auction in
27which that person did not participate as an applicant.

28(2) An unselected applicant that files a protest must be
29represented by an attorney at law.

30(3) An applicant that files a protest under this section

1waives its right to, and is disqualified from, being selected
2by the department as the next highest applicant for
3postqualification under this subarticle.

4(4) As a prerequisite to the filing of a protest, and at
5the time of the filing of a protest, the protester must
6provide the department with a bond, letter of credit or other
7form of security acceptable to the department in an amount
8equal to the amount of the selected bid. The accepted
9security shall be in an amount equal to the highest bid
10received from any applicant for that class of license. If the
11bid protest does not result in the overturning of the
12department's bid selection for the specific auction
13protested, and the selected applicant does not pay the bid
14amount for any reason the protester shall forfeit its
15security to the department.

16Section 317-A. Content of bids.

17The following are the requirements for a bid submitted to
18participate in a wine and spirits retail license auction under
19this subarticle:

20(1) The bid must include a summary page which clearly
21identifies:

22(i) The name, address and tax identification number
23of the applicant.

24(ii) The county for which the bid is being
25submitted.

26(iii) The amount of the bid.

27(iv) The amount of the minimum bid for the wine and
28spirits retail license auction in which the applicant is
29participating.

30(2) The bid must state a general description of the bid

1and the location of the proposed wine and spirits store,
2including the estimated square feet of total retail space in
3the proposed location.

4(3) The bid must state the following:

5(i) Whether the applicant is an individual,
6corporation, limited liability company, limited
7partnership, partnership or association or other legal
8entity.

9(ii) If the applicant is a corporation:

10(A) the state of incorporation; and

11(B) the names and residence addresses of each
12officer, director and shareholder holding a
13controlling interest in the corporation.

14(iii) If the applicant is a partnership:

15(A) the state of organization; and

16(B) the names and residence addresses of each
17general partner and limited partner.

18(iv) If the applicant is an association, the bid
19must set forth the names and addresses of the persons
20constituting the association.

21(4) If the applicant is a corporation, limited liability
22company, limited partnership, partnership, association or
23other legal entity, the bid must show that the entity is
24organized under the laws of this Commonwealth.

25(5) If the applicant is an individual, the bid must show
26that the applicant:

27(i) is a citizen of the United States and a resident
28of this Commonwealth; and

29(ii) is not acting as an agent for any other person,
30partnership, association or group of persons beneficially

1interested in the license.

2(6) The bid must state the proposed location and
3ownership of the site for the wine and spirits store,
4including floor plans of existing facilities to be utilized
5in the applicant's retail operation and design plans for any
6facilities not yet constructed, to the extent they are
7available.

8(7) The bid must state information disclosing:

9(i) an arrest of, and a citation for an offense
10graded higher than a summary offense issued to, the
11applicant;

12(ii) each person listed for the applicant under
13paragraph (3)(ii)(B) and (iii)(B); and

14(iii) the applicant's affiliates.

15The information must include:

16(A) A brief description of the circumstances
17surrounding the arrest or issuance of the citation.

18(B) The specific offense charged or cited.

19(C) The ultimate disposition of the charge or
20citation, including the details of a dismissal, plea
21bargain, conviction, sentence, pardon, expungement or
22order of Accelerated Rehabilitative Disposition.

23(8) The bid must contain a sworn statement that the
24applicant, each person listed for the applicant under
25paragraph (3)(ii)(B) and (iii)(B) and the applicant's
26affiliates:

27(i) have not within a period of ten years
28immediately preceding the date of the bid, been convicted
29of a crime involving fraud, moral turpitude or
30racketeering; and

1(ii) have not been convicted of:

2(A) an offense graded higher than a misdemeanor
3of the first degree; or

4(B) a similar offense in another jurisdiction.

5(9) The bid must contain a statement that the applicant
6will:

7(i) continuously operate a wine and spirits store
8for the duration of the two-year license period; and

9(ii) provide a level of service, including hours of
10operation and product availability reasonably equivalent
11to the level of service currently provided in the same
12geographic area.

13(10) The applicant must provide a financial statement or
14letter of credit, consistent with the requirements prescribed
15by the department, which demonstrates the financial
16capability to operate the wine and spirits store and the
17estimated volume of business to be conducted.

18(11) The applicant must:

19(A) provide a current tax certificate issued by
20the Department of Revenue for the applicant, each
21person listed for the applicant under paragraph (3)
22(ii)(B) and (iii)(B) and the applicant's affiliates;
23and

24(B) demonstrate payment of unpaid taxes
25identified on the tax certificate.

26(12) The applicant must pay, by certified check, a bid
27filing fee of $10,000 that must be submitted by certified
28check with the bid. The department shall refund the fee if,
29due to no fault of the applicant, the applicant is not issued
30a wine and spirits retail license. Refund under this

1paragraph includes instances when the bid amount exceeded the
2reserve for the license, but the bid amount was not high
3enough for the applicant to be selected.

4(13) The bid must be signed and verified by oath or
5affirmation as follows:

6(i) If the applicant is an individual, by the
7applicant.

8(ii) If the applicant is a partnership, by a
9partner.

10(iii) If the applicant is an association, by a
11member.

12(iv) If the applicant is a corporation or limited
13liability company, by an executive officer thereof or an
14individual specifically authorized by the entity to sign
15the bid. Written evidence of the authority must be
16attached to the bid.

17(14) The applicant must provide a noncollusion
18affidavit, executed by the applicant if the applicant is an
19individual and by an individual specifically authorized by
20the applicant if the applicant is a legal entity. Certifying
21that the applicant, each person listed for the applicant
22under paragraph (3)(ii)(B) and (iii)(B) and the applicant's
23affiliates has not engaged in collusion, bid-rigging or other
24prohibited activity in relation to the bid. The form and
25content of the noncollusion affidavit shall be determined by
26the department. Failure of an applicant to provide the
27required noncollusion affidavit disqualifies the bid unless
28cured within a time period determined by the department. The
29affidavit must state whether or not, within the past ten
30years, the applicant, each person listed for the applicant

1under paragraph (3)(ii)(B) and (iii)(B) and the applicant's
2affiliates has been convicted or found liable for an act
3prohibited by Federal or State law involving conspiracy or
4collusion with respect to bidding on a public contract or in
5relation to the sale or lease of a public asset. An
6affirmative statement of conviction or liability under this
7paragraph may be grounds for the department to find the
8applicant not suitable.

9(15) The applicant must provide an affidavit stating
10that the applicant, each person listed for the applicant
11under paragraph (3)(ii)(B) and (iii)(B) and the applicant's
12affiliates have not applied for and do not hold wine and
13spirits wholesale licenses.

14(16) The applicant must, during the auction process,
15update information in the bid and provide any other
16information determined to be appropriate by the department.

17Section 317.1-A. Minimum bid for retail auctions.

18The department shall establish minimum bid amounts for retail
19auctions and shall publish the amounts in the Pennsylvania
20Bulletin and on the department's Internet website. The
21department shall establish minimum bid amounts, with the input
22of the retail divestiture strategy committee, for each class of
23license auctioned in each county. In determining the minimum
24bids, the department shall consider the following factors
25relative to the county at issue:

26(1) The number of existing State liquor stores in the
27county and surrounding region.

28(2) Sales data of those stores pertaining to nonlicensed
29customers for the most recent 12-month period.

30(3) The number of licensed grocery stores, big-box

1retail stores, pharmacies and enhanced distributor licenses,
2and any pending applications for these licenses, in the
3county and surrounding region.

4(4) Available sales data from those licensees pertaining
5to the sale of wine.

6Section 318-A. Protest of license denial.

7(a) Right to protest.--An applicant that is denied a wine
8and spirits retail license under section 314-A(h) has the right
9to protest the denial.

10(b) Filing of protest.--

11(1) The protest must be filed in writing with the
12Secretary of General Services within seven days after the
13mailing date of the rejection of the application.

14(2) Failure to comply with paragraph (1) results in
15waiver of the right to protest.

16(c) Security required.--The protest must be accompanied by
17security in the amount of the protestant's bid and any fees
18required by the department under this article. Security must be
19in the form of a certified check or bank check or a bond
20provided by a surety company authorized to do business in this
21Commonwealth.

22(d) Contents of protest.--A protest must state the grounds
23upon which the protestant asserts the denial of the application
24was improper under this article or the department's regulations.
25The protestant may submit with the protest documents or
26information in support of the protest.

27(e) Evaluation of protest.--The secretary or a designee:

28(1) shall review the protest;

29(2) may request and review the additional documents or
30information necessary to render a decision;

1(3) may conduct a hearing;

2(4) shall provide the protestant a reasonable
3opportunity to review and address any additional documents or
4information deemed necessary to render a decision.

5(f) Determination.--Upon completing an evaluation of the
6protest in accordance with subsection (e), the secretary or the
7designee shall issue a written determination stating the reasons
8for the decision. The determination shall be issued within 30
9days of the receipt of the protest unless extended by the head
10of the department or his designee. The determination shall be
11the final order of the department.

12(g) Appeal.--Within 15 days of the mailing date of a final
13determination denying a protest, a protestant may file an appeal
14with the Commonwealth Court. Issues not raised by the protestant
15before the department are deemed waived and may not be raised
16before the court. A decision by the head of the department to
17reverse the denial of the application shall not be subject to
18appeal.

19(h) Record of determination.--The record of determination
20for review by the court shall consist of:

21(1) the winning bid;

22(2) the application;

23(3) the protest;

24(4) documents or information filed by the protestant in
25support of the protest;

26(5) additional documents or information considered by
27the secretary or the designee;

28(6) any hearing transcript and exhibits; and

29(7) the final determination.

30(i) Standard of review.--The court shall hear the appeal,

1without a jury, on the record of determination certified by the
2department. The court shall affirm the determination of the
3department unless it finds from the record that the
4determination is arbitrary and capricious, an abuse of
5discretion or is contrary to law.

6(j) Remedy.--If the court determines that the application
7denial is contrary to this article or the department's
8regulations, then the remedy the court shall order is limited to
9reversal of the department's determination and declaring void
10the issuance of any license resulting.

11(k) Effect of protest.--If the protestant files a timely
12protest under this section, the department shall not proceed
13with the issuance of a wine and spirits retail license until the
14issuance of a determination under subsection (f).

15(l) Stay unauthorized.--The filing of an appeal under
16subsection (g) shall not operate as a stay of the procedures in
17this article. Notwithstanding any other provision of law, no
18court shall have jurisdiction to stay the procedures in this
19article pending appeal.

20(m) Applicability.--This section shall be the exclusive
21procedure for protesting a denial of an application for a wine
22and spirits retail license under this article. The provisions of
232 Pa.C.S. Ch. 5 Subch. A (relating to practice and procedure of
24Commonwealth agencies) and Ch. 7 Subch. A (relating to judicial
25review of Commonwealth agency action) shall not apply to actions
26under this section.

27Section 319-A. Wine and spirits retail licensee statement of
28conditions.

29(a) Statement of conditions.--The department, in
30consultation with the board, shall develop a statement of

1conditions to be executed by each wine and spirits retail
2licensee governing the operations of the wine and spirits retail
3licensee.

4(b) Conditions.--In addition to any other conditions the
5department, in consultation with the board, deems necessary or
6appropriate for a specific wine and spirits retail licensee, a
7statement of conditions under this section shall include, at a
8minimum, the following conditions and impose the following
9obligations and requirements on an ongoing basis:

10(1) Under section 493.2, a wine and spirits retail
11licensee may not sell or distribute liquor to an individual
12under 21 years of age or to an individual who is visibly
13intoxicated.

14(2) A wine and spirits retail licensee may not operate a
15retail wine and spirits store located within:

16(i) Three hundred feet of an elementary or secondary
17school without department or board approval.

18(ii) A municipality which has voted to preclude the
19establishment of a State liquor store, unless the
20municipality subsequently votes to permit the board to
21issue a wine and spirits retail license.

22(2.1) A wine and spirits retail license may not be
23operated on real property upon which is located as a business
24the sale of liquid fuels and oil if the point of sale or
25dispensing of liquid fuels and oil is within 100 feet of the
26closest point to the physical building in which the license
27is located.

28(3) A wine and spirits retail licensee's wine and
29spirits store and all facilities involved in its retail
30operations, including any changes to those facilities during

1the term of the license, are subject to the inspection,
2investigation and approval of the department, the board and
3the enforcement bureau.

4(4) A wine and spirits retail licensee shall maintain
5adequate security to protect the licensee's inventory from
6unauthorized sale or diversion and prevent its unauthorized
7distribution. Nothing in this paragraph shall preclude a wine
8and spirits retail licensee from moving wine and spirits
9inventory between wine and spirits retail stores under common
10ownership on a periodic basis upon no less than one day's
11notice to the board and the enforcement bureau.

12(5) Unless specifically authorized in this act or with
13the prior approval of the board, a wine and spirits retail
14licensee may not engage in a separate business activity upon
15any licensed premises on which retail liquor operations are
16conducted.

17(6) Except in an emergency, as defined by regulation by
18the board, a wine and spirits retail licensee may not sell
19wine or spirits to licensees under Article IV and other wine
20and spirits retail licensees.

21(7) A wine and spirits retail licensee shall notify the
22board within 15 days of a change in persons holding a
23controlling interest in the wine and spirits retail licensee.

24(8) A wine and spirits retail licensee shall notify the
25board within 15 days of becoming aware of an arrest or
26criminal indictment or conviction by the following:

27(i) If the licensee is an individual, the licensee.

28(ii) If the licensee is a partnership, a partner.

29(iii) If the licensee is an association, a member.

30(iv) If the licensee is a corporation, any officer,

1director or shareholder holding a controlling interest in
2the corporation.

3(v) An affiliate of the licensee.

4(9) A wine and spirits retail licensee shall notify the
5board within 15 days of becoming aware of a violation of this
6article by an individual listed in paragraph (8).

7(10) The premises of each wine and spirits store must be
8a self-contained unit with limited customer access dedicated
9to the sale of liquor and related merchandise. Except for a
10licensee that also holds a distributor license, no wine and
11spirits store may have an interior connection with another
12business or with a residential building except as approved by
13the board. Purchases of wine and spirits shall be paid for at
14a location within the confines of the licensed premises.

15(11) A wine and spirits retail licensee shall configure
16its licensed premises in a manner and with adequate
17safeguards to ensure that its liquor products are secure and
18that the licensed area may not be accessed during prohibited
19hours of operation.

20(12) A wine and spirits retail licensee may not do any
21of the following:

22(i) Hold, directly or indirectly, more than 60 wine
23and spirits retail licenses within this Commonwealth.

24(ii) Own more than:

25(A) ten percent of the wine and spirits retail 
26licenses in a county which has at least ten wine and 
27spirits retail licenses; or

28(B) one wine and spirits retail license in a
29county which has less than ten wine and spirits
30retail licenses.

1(13) A wine and spirits store may sell liquor for
2consumption off the premises and related merchandise within
3the licensed area of the store. Sales of related merchandise
4within the licensed area may not exceed 30% of the gross
5annual sales of a wine and spirits store. Unless the wine and
6spirits retail licensee also operates a license which
7authorizes the sale of malt and brewed beverages or
8consumption off the premises in the same licensed area, a
9wine and spirits store may not sell malt or brewed beverages
10within its licensed premises.

11(14) A wine and spirits retail licensee shall make the
12premises and the facilities involved in the retail operation
13and all of the business and financial books and records of
14the retail operation available at any time for inspection and
15audit by the board and the enforcement bureau. The board
16shall promulgate regulations regarding the records that a
17wine and spirits retail licensee must maintain in its
18licensed premises.

19(15) A wine and spirits retail licensee may sell wine or
20spirits between 9 a.m. and 11 p.m. of any day except Sunday
21to:

22(i) a person not licensed under this act;

23(ii) a holder of a special occasion permit; or

24(iii) a holder of a wine auction permit.

25(16) In addition to the hours authorized under paragraph
26(15), a wine and spirits retail licensee may, upon purchasing
27a permit from the board at an annual fee of $2,000, sell wine
28or spirits on Sunday between the hours of 9 a.m. and 9 p.m.
29to:

30(i) a person not licensed under this act;

1(ii) a holder of a special occasion permit; or

2(iii) a holder of a wine auction permit.

3(17) A wine and spirits retail licensee may not employ
4an individual under 18 years of age to work on the licensed
5premises. An employee under 21 years of age of a wine and
6spirits retail licensee may not engage in the sale of liquor.

7(18) A wine and spirits retail licensee may not hold a
8wine and spirits wholesale license.

9(19) A wine and spirits retail licensee that is a
10corporation, a limited liability company, a limited
11partnership, a partnership, an association or other legal
12entity, must be organized under the laws of this
13Commonwealth.

14(20) A wine and spirits retail licensee who is an
15individual must be a citizen of the United States and a
16resident of this Commonwealth.

17(21) A wine and spirits retail licensee shall:

18(i) comply with the responsible alcohol management
19program training under section 471.1; and

20(ii) ensure that all wine and spirits store managers
21and employees who may engage in the sale of liquor attend
22required training within six months of commencing
23employment.

24(22) A wine and spirits retail licensee may place its
25license in safekeeping for a period not to exceed two years:

26(i) pending transfer of the license from person-to-
27person or place-to-place, or both; or

28(ii) during renovation of the premises upon which
29retail operations are conducted.

30(23) A wine and spirits retail license which remains in

1safekeeping for a period that exceeds two consecutive years
2shall be forfeited and reauctioned by the board in a manner
3consistent with this subarticle.

4(24) Except as set forth in paragraph (17), an
5individual under under 21 years of age may not enter the
6licensed areas of the wine and spirit retail licensee unless
7accompanied by an adult.

8(25) A wine and spirits retail licensee shall utilize a
9transaction scan device to verify the age of an individual
10before making a sale of alcohol. As used in this paragraph,
11the term "transaction scan device" means a device capable of
12deciphering in an electronically readable format the
13information encoded on the magnetic strip or bar code of an
14identification card under section 495(a).

15(26) A wine and spirits retail licensee may not sell a
16liquor product at a price less than its underlying cost.

17(27) A wine and spirits retail licensee may not provide
18tasting samples of liquor on the premises where retail
19operations are conducted except in the manner set forth in
20the board's regulations related to tasting samples provided
21by sponsors.

22(28) A wine and spirits retail licensee may not require
23a customer to purchase a membership or pay a fee in order to
24purchase products, including wine and spirits, from the
25premises.

26(29) In an inquiry or investigation by the department,
27the board or the enforcement bureau, a wine and spirits
28retail licensee shall cooperate fully and provide requested
29information.

30(30) A wine and spirits retail licensee shall be

1considered a State liquor store for the purposes of
2collecting and remitting taxes consistent with the act of
3March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
41971, from a person other than a person licensed to sell
5liquor for consumption on the premises under Article IV.

6(31) A wine and spirits retail licensee shall devote a
7section of its sales space for products sold by holders of
8limited winery, limited distillery and distillery licenses
9and shall attempt to diversify product selection with liquor
10produced by those holders.

11(c) Sanctions.--

12(1) A wine and spirits retail licensee that fails to
13abide by any condition contained in the licensee's statement
14of conditions or commits any violation of this act or other
15Federal or State law shall be subject to citation by the
16enforcement bureau.

17(2) A citation under paragraph (1) may result in:

18(i) a fine, suspension or license revocation;

19(ii) nonrenewal of a license;

20(iii) revocation of temporary operating authority;
21or

22(iv) other penalties authorized under sections 471
23and 494.

24SUBARTICLE C

25DIVESTITURE OF WHOLESALE LIQUOR DISTRIBUTION

26Section 321-A. Wholesale divestiture.

27(a) Utilization.--In effectuating the intent of this
28article, the department shall utilize the authority provided
29under section 305-A and any other powers of the department, with
30the full cooperation and assistance of the board.

1(b) Establishment.--On the effective date of this section,
2the department shall establish all of the following:

3(1) An application process and schedule for the
4investigation and award of wine and spirits wholesale
5licenses under this article.

6(2) A blended brand valuation for each brand of liquor
7available for sale in this Commonwealth.

8(3) Procedures and standards governing the relationship
9between wine and spirits wholesale licensees and
10manufacturers and the ability and terms upon which that
11relationship may be terminated.

12(c) Coordination.--

13(1) The department shall:

14(i) coordinate scheduling so that wine and spirits
15wholesale license applications may be received, processed
16and investigated by the board's Bureau of Licensing
17during the retail divestiture process; and

18(ii) begin a coordinated effort to allow the board
19to issue licenses after the board has been substantially
20divested of its retail operations.

21(2) The department must fully divest the board of all
22operations relating to the wholesale distribution of liquor
23within six months of the complete divestiture of the board's
24retail operations.

25Section 321.1-A. Issuance of wine and spirits wholesale
26licenses.

27(a) Authorization.--The board may issue wine and spirits
28wholesale licenses under the following conditions:

29(1) The following shall apply:

30(i) One wine and spirits wholesale license may be

1issued by the board to each qualified applicant.

2(ii) A wine and spirits wholesale license shall
3authorize the holder to sell and distribute brands of
4liquor, as proposed by an applicant and approved by the
5department, to wine and spirits retail licensees and
6other licensees of the board authorized to sell or
7distribute liquor under this act, to United States Armed
8Forces facilities located on United States Armed Forces
9installations within this Commonwealth and to the holder
10of a wholesale alcohol purchase permit issued by the
11board.

12(iii) A wine and spirits wholesale licensee may
13provide for the direct shipment or delivery of products
14to licensees of the board.

15(2) Subject to the conditions and restrictions of this
16subarticle, wine and spirits wholesale licensees may sell and
17distribute more than one brand of liquor under the same wine
18and spirits wholesale license.

19(3) Upon application by a wine and spirits wholesale
20licensee, the board may amend its initial authorization under
21a wine and spirits wholesale license to include additional
22brands of liquor or exclude previously-approved brands of
23liquor.

24(b) Wine and spirits wholesale license fee.--

25(1) On the effective date of this section, the
26department shall determine the wine and spirits wholesale
27license fee for each brand of liquor sold at wholesale by the
28board through its State liquor stores or via special liquor
29order for a continuous period of at least one year. The
30license fee shall be equal to the blended brand valuation for

1each brand of liquor authorized by the wine and spirits
2wholesale license multiplied by the wholesale acquisition
3factor.

4(2) The department shall publish a notice in the
5Pennsylvania Bulletin and on its Internet website of the wine
6and spirits wholesale license fee for each brand of liquor
7determined under paragraph (1). The department shall
8establish deadlines within which an applicant must submit an
9application for a wine and spirits wholesale license for the
10brands of liquor specified by the applicant.

11(3) The department must receive the required license fee
12for the brands of liquor specified by the applicant before a
13wine and spirits wholesale license is issued by the board to
14a successful applicant.

15(c) Brands not previously sold.--

16(1) For brands of liquor that have not been sold by the
17board at State liquor stores or via special liquor order for
18a continuous period of at least one year, the department
19shall calculate the blended brand valuation utilizing sales
20data for any portion of the year that the brand was sold in
21this Commonwealth, after consulting with the board on the
22most recent sales trends of the brand, both within and
23outside this Commonwealth.

24(2) If, during the term of a wine and spirits wholesale
25license, a wine and spirits wholesale licensee proposes to
26sell and distribute a new brand of liquor not previously sold
27in this Commonwealth, the wine and spirits wholesale licensee
28shall apply to the board for permission to sell the brand and
29pay an additional license fee determined in accordance with
30this section. In calculating the blended brand valuation for

1the new products, the board shall evaluate available sales
2data in other markets or sales trends of similar products
3either within or outside this Commonwealth.

4(d) Term.--

5(1) A wine and spirits wholesale license, after payment
6of the required license fee, shall be in effect unless
7suspended, revoked or not renewed under this article.

8(2) The license of a wine and spirits wholesale licensee
9in good standing shall be renewed every two years under this
10article.

11(3) Nothing under this subsection shall be construed to
12relieve a wine and spirits wholesale licensee of the
13affirmative duty to notify the board of changes relating to
14any of the following:

15(i) The status of its license.

16(ii) Information contained in the application
17materials on file with the department or the board.

18Section 322-A. Application for wine and spirits wholesale
19license.

20(a) Applications.--An application for a wine and spirits
21wholesale license shall be submitted on a form and in a manner
22as required by the board.

23(b) Eligibility.--A person may be eligible to apply for a
24wine and spirits wholesale license if the person satisfies all
25of the following:

26(1) Neither the applicant nor any affiliate of the
27applicant has applied for or holds a wine and spirits retail
28license or other license which authorizes the retail sale of
29wine and spirits to consumers.

30(2) The applicant is organized under the laws of this

1Commonwealth if it is any of the following:

2(i) A corporation.

3(ii) A limited liability company.

4(iii) A limited partnership.

5(iv) A partnership.

6(v) An association.

7(vi) A legal entity other than a legal entity listed
8under this paragraph.

9(3) The applicant is a citizen of the United States and
10a resident of this Commonwealth if that applicant is a
11natural person.

12(4) Neither the applicant nor any affiliate of the
13applicant, executive officer, director or general or limited
14partner of the applicant or person holding, directly or
15indirectly, a controlling interest in the applicant has been
16convicted of a crime listed under subsection (d)(10).

17(c) Other licenses.--Nothing under this act shall prohibit:

18(1) A properly licensed importing distributor of malt
19and brewed beverages from applying for and, if approved,
20being issued a wine and spirits wholesale license.

21(2) The holder of a limited winery license, a limited
22distillery license or a distillery license issued by the
23board from acquiring a wine and spirits wholesale license.

24(d) General requirements.--In addition to any other
25information required under this article or by the department or
26the board, the applicant for a wine and spirits wholesale
27license shall include the following:

28(1) The name, address and tax identification number of
29the applicant.

30(2) A statement as to whether the applicant is an

1individual, corporation, limited liability company, limited
2partnership, partnership or association and, if the applicant
3is not an individual, the state of incorporation or
4organization.

5(3) If the applicant is not an individual, the name and
6residence address of each executive officer, director,
7general or limited partner or person holding a controlling
8interest in the applicant.

9(4) If the applicant is an association, the name and
10residence address of each person constituting the
11association.

12(5) A list of the brands of liquor the applicant
13proposes to engage in wholesale distribution on a Statewide
14basis.

15(6) A sworn statement that the applicant has entered
16into a contractual relationship with one or more liquor
17manufacturers, importers or vendors of record for the
18distribution in this Commonwealth of a brand or brands of
19liquor, regardless of whether the contractual relationship is
20contingent upon the board issuing a wine and spirits
21wholesale license to the applicant.

22(7) The proposed location and proof of ownership or
23lease for the wholesale operation, including proposed
24warehouses, if available.

25(8) Floor plans for any facility proposed to be used in
26wholesale operations and existing design plans for any
27facility that is planned, but not yet constructed, to the
28extent the floor plans are available.

29(9) Information disclosing all arrests of and all
30citations issued for nonsummary offenses to an applicant and

1any affiliate of the applicant, executive officer, director
2or general or limited partner of the applicant or person
3holding a controlling interest in the applicant. The
4information shall include:

5(i) A brief description of the circumstances
6surrounding the arrest or issuance of the citation.

7(ii) The specific offense charged or cited.

8(iii) The ultimate disposition of the charge or
9citation, including the details of a dismissal, plea
10bargain, conviction, sentence, pardon, expungement or
11order of Accelerated Rehabilitative Disposition.

12(10) A sworn statement that the applicant and any
13affiliate of the applicant, or any executive officer,
14director or general or limited partner of the applicant or
15person holding a controlling interest in the applicant have
16never been convicted:

17(i) of a crime involving fraud, moral turpitude or
18racketeering within a period of ten years immediately
19preceding the date of the application;

20(ii) of a felony or equivalent crime; or

21(iii) in a Federal or state tribunal, including this
22Commonwealth, of the violation of a Federal or state
23liquor law.

24(11) A statement that the applicant intends to
25continuously operate as a wine and spirits wholesale licensee
26for the duration of the license term and to use its best
27efforts to provide a level of service, including product
28availability, reasonably equivalent to the level of service
29currently provided by the Commonwealth.

30(12) A financial statement or letter of credit in a form

1and containing information determined by the department to
2indicate the applicant's financial capability to operate the
3wholesale operation and the estimated volume of wholesale
4business to be conducted annually.

5(13) A current tax certificate issued by the Department
6of Revenue showing the amount of taxes owed to the
7Commonwealth for the applicant and any affiliate of the
8applicant, executive officer, director or general or limited
9partner of the applicant or person holding a controlling
10interest in the applicant.

11(14) A signature and verification by oath or affirmation
12or under penalty of unsworn falsification to authorities by
13one of the following:

14(i) The applicant, if the applicant is a natural
15person.

16(ii) A person specifically authorized by the legal
17entity to sign the application, if the applicant is a
18legal entity. Written evidence of the authority to sign
19must be attached to the signature and verification.

20(e) Additional information.--An applicant shall, during the
21application process, provide any other information determined to
22be appropriate by the department.

23(f) Amended application.--If a change occurs in any
24information provided to the department or the board as part of
25the application process, the applicant shall immediately notify
26the department or the board of the change and timely provide
27amended information to the department or the board in a form and
28manner determined by the department or the board.

29(g) Application fees and investigative costs.--

30(1) An application filing fee of $10,000 shall be due

1upon application for a wine and spirits wholesale license.
2The application filing fee shall be refunded if, due to no
3fault of the applicant, the wine and spirits wholesale
4license is not approved.

5(2) The department shall establish, charge and collect
6fees from an applicant to recover the costs directly related
7to the board's review and investigation of the application
8for a wine and spirits wholesale license. The board shall
9have the same authority relating to fees as to applications
10for renewal.

11Section 323-A. Review and investigation of application.

12(a) Completeness of application.--

13(1) The following shall apply:

14(i) The department may not consider an incomplete
15application and shall notify the applicant in writing if
16an application is incomplete.

17(ii) An application shall be considered incomplete
18if it does not include all applicable fees and all
19information and accompanying documentation required by
20the department. Unpaid taxes identified on the tax 
21certificate required to be filed under section 
22322-A(d)(13) must be paid before the application is 
23considered complete.

24(2) A notification of incompleteness shall state the
25deficiencies in the application that must be corrected prior
26to consideration of the merits of the application.

27(3) The applicant must be afforded a reasonable period
28of time, as determined by the department, to cure the
29deficiencies.

30(4) If the applicant fails to timely cure noticed

1deficiencies within the time specified by the department, the
2application shall be deemed denied by the department without
3further action.

4(b) Investigation.--After receipt of an application for a
5wine and spirits wholesale license and a determination that the
6application is complete, the department shall provide the
7application to the board's Bureau of Licensing to conduct an
8investigation of the applicant. The investigation shall include
9and the applicant shall have the burden of demonstrating the
10following:

11(1) The truth and veracity of the information provided
12in the application.

13(2) The applicant's cooperation and the cooperation of
14any affiliate of the applicant and any executive officer,
15director or general or limited partner of the applicant or
16person holding a controlling interest in the applicant in the
17application process and with any request by the department or
18the board for any information deemed necessary for licensure.

19(3) The good character, reputation and suitability of
20the applicant and any affiliate of the applicant, executive
21officer, director or general or limited partner of the
22applicant or person holding a controlling interest in the
23applicant.

24(4) The applicant possesses sufficient financial
25resources to:

26(i) Operate as a wine and spirits wholesale
27licensee.

28(ii) Pay all taxes due and owing to the
29Commonwealth.

30(iii) Assume liability for the safe operation of the

1wholesale operations.

2(5) The applicant possesses sufficient financial
3resources and experience to create and maintain a successful
4and efficient wholesale operation that provides service at a
5level that is reasonably equivalent to the level of service
6currently provided in this Commonwealth on the effective date
7of this section.

8(6) The applicant has entered into a contractual
9relationship with one or more licensed manufacturers,
10importers or vendors of record for the distribution in this
11Commonwealth of a brand or brands of liquor regardless of
12whether the contractual relationship is contingent upon the
13board issuing a wine and spirits wholesale license to the
14applicant.

15(7) The physical facilities proposed to be used in the
16applicant's wholesale operations are located and designed to:

17(i) assure that all warehouses are located within
18this Commonwealth and licensed for the storage of liquor;

19(ii) function as a self-contained unit, with limited
20customer access;

21(iii) not have any interior connection with any
22other business or with any residential building without
23prior department or board approval;

24(iv) provide adequate security to protect the
25applicant's inventory from unauthorized sale or
26diversion; and

27(v) protect the public interest.

28(c) Assistance with investigations.--The department may
29enter into an agreement with the Pennsylvania State Police or
30the Office of Inspector General to assist the department in

1conducting investigations under this section and to provide for
2the reimbursement of actual costs incurred for providing the
3assistance. The department may establish, charge and collect
4fees from an applicant to recover the costs of investigation.

5Section 324-A. Issuance of licenses.

6(a) Notification.--Upon completion of the investigation
7under section 323-A, the board shall inform the department of
8the results of its investigation. The department shall inform
9the applicant in writing of its decision to approve or deny the
10application.

11(b) Approval.--If the application is approved, the
12department shall require the successful applicant to pay the
13license fee, as required under section 321.1-A, based on the
14brand licensing fees established under section 321.1-A for the
15brands of liquor approved for the applicant.

16(c) Denial.--

17(1) If an application is denied, the department shall
18provide the applicant with the specific reasons for the
19denial in the written notification required under subsection
20(a).

21(2) The applicant shall be entitled to a hearing on the
22denial, if a hearing is requested within ten days of the
23department's notification and the request is in writing on a
24form and in a manner determined by the department.

25(3) A hearing under this subsection shall be conducted
26in accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating to
27practice and procedure of Commonwealth agencies).

28(d) Issuance.--After approval of an application, the board
29shall issue a wine and spirits wholesale license to the
30applicant for the exclusive privilege to sell approved brands of

1liquor in this Commonwealth, if the applicant has completed all
2of the following:

3(1) Paid the wine and spirits wholesale license fee
4required under this article. Payment must be made by
5certified check or wire transfer to a designated restricted
6account in The State Stores Fund.

7(2) Paid outstanding application or investigation fees.

8(3) Executed and delivered to the board the statement of
9conditions required under section 325-A.

10(4) Repurchased from the board remaining marketable
11inventory of the brands authorized under its license which
12are owned by the board at the board's purchase order cost and
13paid applicable taxes due and an administrative fee
14determined by the board. The wine and spirits wholesale
15licensee shall coordinate, at its own cost, the removal of
16remaining product owned by the board.

17(5) Fulfilled any other conditions required by the
18department or the board or provided for under this article.

19(e) License as privilege.--

20(1) Nothing under this article is intended or may be
21construed to create an entitlement to a wine and spirits
22wholesale license.

23(2) The authorization to participate in the distribution
24and sale of liquor as a wine and spirits wholesale licensee
25is a privilege conditioned upon this article.

26(f) Termination of board's authority.--

27(1) Except as set forth in paragraph (2), if a wine and
28spirits wholesale license has been issued for a particular
29brand of liquor, the board may not engage in the sale of that
30brand of liquor.

1(2) The board may coordinate the repurchase of remaining
2board inventory of brands as provided under Subarticle D.

3(3) The board's Bureau of Licensing shall provide
4adequate notice to the board's Bureau of Supply Chain that a
5wine and spirits wholesale license application is ready for
6license approval to insure that appropriate inventory
7reduction can be effectuated without causing a shortage of
8the brand at issue.

9Section 325-A. Wine and spirits wholesale licensee statement of
10conditions.

11(a) Statement of conditions.--The department, in
12consultation with the board, shall develop a statement of
13conditions to be executed by each wine and spirits wholesale
14licensee governing the operation of the wine and spirits
15wholesale licensee.

16(b) Conditions, restrictions and prohibited acts.--In
17addition to any other conditions the department, in consultation
18with the board, deems necessary or appropriate for a specific
19wine and spirits wholesale licensee or which may be mandated for
20all licensees through regulations of the department or the
21board, the statement of conditions under subsection (a) shall
22include the following:

23(1) A wine and spirits wholesale licensee may not sell
24liquor to a person, except a person specified in section
25321.1-A(a)(1).

26(2) A wine and spirits wholesale licensee must serve all
27licensees eligible to purchase and resell liquor under this
28act and must make liquor available for sale to those
29licensees under the same pricing structure.

30(3) Except for a wine and spirits wholesale licensee

1that holds an importing distributor license under section
2431, a wine and spirits wholesale licensee may not sell malt
3or brewed beverages.

4(4) A wine and spirits wholesale licensee may not engage
5in conduct that would constitute any of the following:

6(i) Variable pricing.

7(ii) Unfair or deceptive trade practices proscribed
8under Federal or State law or regulation.

9(iii) Intentional exclusion of competing brands of
10liquor from the marketplace.

11(5) A wine and spirits wholesale licensee may only sell
12and distribute liquor products in this Commonwealth that are
13subject to a contractual relationship between the wine and
14spirits wholesale licensee and one or more licensed
15manufacturers or importers of wine and spirits.

16(6) (i) A wine and spirits wholesale licensee shall do
17all of the following:

18(A) Acquire liquor exclusively from:

19(I) a licensed manufacturer or importer of
20wine and spirits with whom the wine and spirits
21wholesale licensee has the contractual authority
22to sell at wholesale as provided under this act;
23or

24(II) an entity affiliated with the wine and
25spirits wholesale licensee.

26(B) Keep a detailed log of wholesale liquor
27transactions, including acquisitions of liquor from
28an entity listed under clause (A) and sales to
29licensees under this act.

30(ii) If liquor is acquired from an entity affiliated

1with the wine and spirits wholesale licensee, the entity
2shall, for taxation purposes, be considered a licensed
3manufacturer or importer of wine and spirits.

4(7) A wine and spirits wholesale licensee's licensed
5premises and all facilities involved in its wholesale
6operations, including any changes to the facilities during
7the term of the license, shall be subject to the inspection,
8investigation and approval of the department or the board or
9the enforcement bureau.

10(8) A wine and spirits wholesale licensee shall maintain
11adequate security to protect the licensee's inventory from
12unauthorized sale, removal or theft and prevent its
13unauthorized distribution.

14(9) As follows:

15(i) Except as provided under paragraph (1), a wine
16and spirits wholesale licensee may not engage in a
17separate business activity on a premises on which
18wholesale liquor operations are conducted without prior
19approval of the board.

20(ii) A wine and spirits wholesale licensee which
21holds an importing distributor license may engage in
22sales of malt or brewed beverages under this act.

23(10) A wine and spirits wholesale licensee shall collect
24and remit to the Department of Revenue all applicable taxes.

25(11) A wine and spirits wholesale licensee shall be
26considered a State liquor store for the purpose of collecting
27and remitting taxes under the act of March 4, 1971 (P.L.6,
28No.2), known as the Tax Reform Code of 1971, from persons
29licensed to sell liquor for consumption on the premises under
30Article IV.

1(12) A wine and spirits wholesale licensee shall notify
2the board within 15 days of a change in a person holding a
3controlling interest in the licensee.

4(13) A wine and spirits wholesale licensee shall notify
5the board within 15 days of becoming aware of an arrest,
6criminal indictment or conviction by the licensee, an
7affiliate of the licensee or an executive officer, director
8or general or limited partner of the licensee or person
9holding a controlling interest in the licensee.

10(14) A wine and spirits wholesale licensee shall notify
11the board within 15 days of becoming aware of a violation of
12this act by the licensee, an affiliate of the licensee or an
13executive officer, director or general or limited partner of
14the licensee, person holding a controlling interest in the
15licensee or employee of the licensee.

16(15) As follows:

17(i) A wine and spirits wholesale licensee may not
18operate in a manner which constitutes a violation of
19Federal or State law, including antitrust or other unfair
20trade practices, or creates a monopolistic liquor
21distribution system in this Commonwealth.

22(ii) If a wine and spirits wholesale licensee seeks
23to be approved by the department or the board to
24distribute additional brands of liquor which would give
25the licensee a control of more than 50% of the liquor
26distributed in the wholesale market of this Commonwealth,
27in terms of gross dollar sales, the board shall convene a
28hearing to determine whether approval of the proposed
29application for additional brands would constitute a
30violation of antitrust or other unfair trade practice

1laws, or would create a monopolistic liquor distribution
2system in this Commonwealth.

3(iii) The board is authorized to promulgate
4regulations providing for the procedure for hearings
5under subparagraph (ii).

6(16) A wine and spirits wholesale licensee shall make
7the licensed premises, all of the facilities involved in the
8wholesale operation and all of the business and financial
9books and records of the wholesale operation available at any
10time for inspection and audit by the department, the board or
11the enforcement bureau. The board shall promulgate
12regulations regarding the records that a licensee must
13maintain on its premises.

14(17) A wine and spirits wholesale licensee shall
15cooperate fully in an inquiry or investigation by the
16department or the board or the enforcement bureau and provide
17information requested by the department, the board or the
18enforcement bureau.

19(18) A wine and spirits wholesale licensee which is a
20corporation, a limited liability company, limited
21partnership, partnership, association or other legal entity
22must be organized under the laws of this Commonwealth.

23(19) A wine and spirits wholesale licensee which is a
24natural person must be a citizen of the United States and a
25resident of this Commonwealth.

26(c) Sanctions.--A wine and spirits wholesale licensee that
27fails to abide by a condition contained in the licensee's
28statement of conditions or commits a violation of this act or
29Federal or State law:

30(1) shall be subject to citation by the enforcement

1bureau; and

2(2) may be subject to:

3(i) a fine, suspension or license revocation;

4(ii) nonrenewal of the license or revocation of
5temporary operating authority; or

6(iii) other penalties authorized under sections 471
7and 494.

8Section 326-A. Loss of rights to wholesale brands of liquor.

9The department shall establish procedures and standards
10governing the relationship between wine and spirits wholesale
11licensees and manufacturers and the ability and terms upon which
12that relationship may be terminated. The procedures and
13standards shall incorporate the following principles:

14(1) As follows:

15(i) A manufacturer having a contract, including all
16written or oral agreements, understandings or other
17arrangements with a wine and spirits wholesale licensee
18for the distribution in this Commonwealth of a brand of
19liquor may terminate the distribution rights and transfer
20the rights to another wine and spirits wholesale licensee
21upon the voluntary agreement of both licensees.

22(ii) If a voluntary termination and transfer occurs,
23the manufacturer shall provide written notice to the
24board indicating that affected wine and spirits wholesale
25licensees have both agreed to the termination and
26transfer. A copy of the notification to the board shall
27be provided to both licensees.

28(2) If a wine and spirits wholesale licensee does not
29agree to the termination or transfer of its distribution
30rights, the manufacturer may only terminate or transfer the

1rights upon payment to the terminated licensee of reasonable
2compensation, as determined by the board, to reflect the
3value of the wine and spirits wholesale licensee's business
4related to the terminated brand of liquor.

5(3) A voluntary or involuntary termination and transfer
6of the right to distribute the brand of liquor shall comply
7with this section.

8Section 327-A. Transfer of brands of liquor.

9(a) Prohibition.--No brand of liquor offered for sale in
10this Commonwealth may be transferred to a different wine and
11spirits wholesale licensee without prior approval from the
12board.

13(b) Transfer fee.--An application to the board to transfer
14the right to distribute a brand of liquor shall be subject to an
15application fee equal to 1% of the initial license fee
16attributable to the brand of liquor or $1,000, whichever is
17greater.

18SUBARTICLE D

19CLOSURE OF STATE LIQUOR STORES

20AND ASSISTANCE FOR DISPLACED EMPLOYEES

21Section 331-A. Closure of State liquor stores.

22(a) Process for closure.--

23(1) The board, in consultation with the department and
24its consultant, shall develop a protocol for the closure of
25the State liquor stores which is designed to ensure
26uninterrupted service to the public and licensees during the
27transition to private retail and wholesale distribution of
28liquor.

29(2) The board shall close a designated State liquor
30store within 60 days of receiving notice from the department.

1The board shall, within 60 days of receiving notice from the
2department, wind down operations at the store designated for
3closure.

4(3) No location operated by the board for sales to
5nonlicensees may operate or sell liquor more than three years
6and six months after the effective date of this section.

7(b) Disposition of liquor.--The board shall arrange for the
8disposition of the liquor remaining in inventory at a designated
9store. In order to effectuate this subsection, the board may, in
10consultation with the department, do any of the following:

11(1) Coordinate with the vendor of record for the
12repurchase products by the vendor of record.

13(2) Sell products to newly licensed wine and spirits
14retail licensees.

15(3) Transport products for sale at another operating
16State liquor store.

17(c) Disposition of nonliquor State-owned property.--The
18department, in consultation with the board, shall establish a
19procedure for the sale of the nonliquor inventory, property and
20fixtures of all State liquor stores consistent with 62 Pa.C.S.
21Ch. 15 (relating to supply management). Wine and spirits retail
22licensees shall have the opportunity to bid on the items to be
23sold or otherwise participate in the sale. All proceeds from the
24sales shall be deposited into The State Stores Fund.

25(d) Pennsylvania Liquor Store leases.--The board shall
26provide immediate notice to the lessor upon receipt of the
27department's notice to close a designated Pennsylvania Liquor
28Store.

29(e) Hiring restrictions.--

30(1) Notwithstanding any other provision of this act and

1except as provided under subsection (f), the board may not
2hire additional salaried or wage employees for the purpose of
3staffing its retail operations, including its bureau of
4marketing and retail operations, unless explicitly authorized
5by the department.

6(2) Paragraph (1) shall not prohibit the board from
7hiring personnel, with approval from the department, to
8adequately staff its Bureau of Supply Chain for the purpose
9of transitioning its retail and wholesale operations to
10licensees of this article.

11(f) Limited authority to hire temporary workers.--

12(1) Notwithstanding any other provision of law and
13except as provided under paragraph (3), the board, with the
14approval of the department, may temporarily staff a State
15liquor store which has not been designated for closure under
16this section, if staffing and service levels would be
17otherwise compromised. The board may utilize the services of
18an employment agency to carry out this paragraph.

19(2) The act of August 5, 1941 (P.L.752, No.286), known
20as the Civil Service Act, shall not apply to temporary
21employees hired under paragraph (1).

22(3) The board may not employ temporary workers at a
23State liquor store if the board receives notice of closure of
24the State liquor store from the department.

25(4) A temporary worker engaged by the board under this
26subsection shall not be considered a displaced employee.

27Section 331.1-A. Licensee service centers.

28(a) Adequacy.--The board shall work collaboratively with the
29department and the retail divestiture strategy committee to
30ensure that an adequate number of stores designated for sales to

1licensees or licensee service center locations are maintained
2during the retail and wholesale divestiture process so that
3licensees are able to timely acquire products sold by the board.

4(b) Termination.--A State liquor store may not operate or
5sell liquor more than four years after the effective date of
6this section.

7Section 332-A. Transition assistance committee.

8(a) Formation.--

9(1) On the effective date of this section, the
10department shall designate individuals to serve on a
11committee for the purpose of managing the staffing transition
12and displacement of employees during the divestiture process.

13(2) The committee, which shall be chaired by a
14representative from the department, shall involve the
15participation of the Office of Administration, the Civil
16Service Commission, the Department of Labor and Industry and
17the board's bureau of human resources, to ensure a
18coordinated approach to allocating personnel and assisting
19displaced employees during the transition to find an
20appropriate position.

21(3) The committee may engage the services of a third-
22party administrator to assist in administering the duties
23under paragraph (2). The procedural constraints of 62 Pa.C.S.
24Pt. I (relating to Commonwealth Procurement Code) shall not
25apply to this paragraph.

26(b) Counseling and placement.--The committee shall
27coordinate with the Office of Administration to provide
28counseling and other general assistance to employees of the
29board who are displaced to transition the employees to other
30employment in either the public or private sector.

1(c) Transition funding.--The costs for the programs provided
2under this subarticle shall be paid for out of the proceeds from
3the divestiture of the board's wholesale and retail operations.

4Section 333-A. Preference in public employment hiring.

5(a) Civil service examinations.--

6(1) A displaced employee who successfully passes a civil
7service appointment examination shall be marked or graded an
8additional three points above the mark or grade credited for
9the examination if all of the following apply:

10(i) The examination is for a paid position
11administered under the act of August 5, 1941 (P.L.752,
12No.286), known as the Civil Service Act, and in the
13classified service existing under the commission's
14jurisdiction.

15(ii) The employee establishes the qualifications
16required by law for appointment to the position.

17(2) The total mark or grade, including the mark-up under
18paragraph (1), obtained by the displaced employee shall
19represent the final mark or grade of the employee and shall
20determine the employee's standing on any eligibility list
21certified or furnished to the appointing power.

22(b) Certification.--The commission shall require the board
23to certify a list of displaced employees under subsection (a).
24Placement on the list by the board shall establish eligibility
25for the preference granted under subsection (a).

26(c) Noncivil service positions.--If a paid State position
27does not require a civil service examination, a displaced
28employee, possessing the requisite qualifications and who is
29eligible for appointment to a paid State position in offices
30under the Governor's jurisdiction within the executive branch

1shall be given a preference in the appointment by the appointing
2authority.

3(d) (Reserved).

4(e) Eligibility.--

5(1) A displaced employee's eligibility for the mark-up
6provided under subsection (a) and for the preference for
7noncivil service positions provided under subsection (c)
8shall cease upon the occurrence of one of the following:

9(i) The displaced employee's appointment or hiring
10into a position in the classified service existing under
11the commission's jurisdiction or into a paid State
12position where no civil service examination is required.

13(ii) Four years from the effective date of this
14section.

15(2) In order to be eligible for the mark-up provided
16under subsection (a) and for the preference for noncivil
17service positions provided under subsection (c), a displaced
18worker must be terminated as a sole and direct result of the
19decision to cease wholesale and retail operations under this
20article and must work until the final day set by the board
21for that employee's job function.

22Section 334-A. Career training and post-secondary education
23grant eligibility.

24(a) Eligibility.--A displaced employee shall be eligible for
25a two-year grant for attending a program of instruction at an
26institution of higher education, including career training and
27adult education courses of study, within one year of the date of
28displacement from State service in the following amount:

29(1) one thousand dollars per year for attendance on a
30full-time basis; or

1(2) five hundred dollars per year for attendance on a
2part-time basis.

3(b) Certification.--The board shall certify the list of
4displaced employees to the agency.

5(c) Grant award.--The agency shall make a determination of
6grant eligibility and shall pay the grant directly to the
7institution of higher education attended by the displaced
8employee in a manner consistent with the agency's regulations.

9Section 335-A. Reemployment tax credit.

10(a) Eligibility.--

11(1) A displaced employee shall be eligible for a two-
12year reemployment tax credit voucher in the amount of $1,000
13per taxable year.

14(2) The voucher under paragraph (1) shall be made
15available to each displaced employee upon termination of
16employment.

17(3) Each voucher under paragraph (1) shall be certified
18by the board before the voucher is provided to the displaced
19employee.

20(4) The Department of Revenue shall be informed of each
21displaced employee to whom a voucher under paragraph (1) has
22been provided.

23(b) Transfer of voucher.--An employer in this Commonwealth
24who employs a displaced employee on a full-time basis may, upon
25transfer of the voucher from the employee to the employer, use
26the voucher as a credit against the State tax liability of the
27employer, if the employer can demonstrate the following:

28(1) The employee for whom the tax credit is being sought
29was displaced from the board within 12 months of being
30employed by the employer.

1(2) The former board employee has been employed by the
2employer seeking the tax credit on a full-time basis for a
3period not less than one year.

4(c) Voucher submittal.--The employer shall submit the tax
5credit voucher to the Department of Revenue with the information
6required under subsection (b)(1) and (2) to claim a tax credit
7against the employer's liability for a tax identified under
8subsection (d)(2).

9(d) Amount of credit.--

10(1) An employer may claim a reemployment tax credit for
11each job filled by a displaced employee of $1,000 per taxable
12year for a maximum of two taxable years.

13(2) An employer may apply the reemployment tax credit to
14100% of the employer's:

15(i) State corporate net income tax, capital stock
16and franchise tax or the personal tax of a shareholder of
17the company if the company is a Pennsylvania S
18corporation.

19(ii) Insurance premiums tax, gross receipts tax,
20bank and trust company shares tax, mutual thrift
21institutions tax or title insurance companies shares tax.

22(iii) Any combination of the taxes under
23subparagraphs (i) and (ii).

24(3) A displaced employee whose subsequent employment is
25terminated with an employer and who has utilized the
26reemployment tax credit voucher to claim a one-year $1,000
27tax credit may transfer the voucher to a new employer who may
28use the remaining $1,000 tax credit as a claim against the
29employer's tax liability for taxes identified under paragraph
30(2).

1(4) The term of the reemployment tax credit voucher may
2not exceed two years from the date the voucher is provided to
3the qualified displaced employee.

4Section 336-A. Protection of existing benefits.

5(a) Contract benefits.--Nothing under this section shall be
6deemed to affect:

7(1) Pension benefits accrued prior to the date of
8separation occurring as a sole and direct result of the
9divestiture of the board's wholesale and retail operations
10under this article.

11(2) Payment of an accrued benefit derived from the terms
12of a preexisting collective bargaining agreement payable upon
13separation from employment.

14(b) Collective bargaining.--As a result of the preferential
15hiring benefits, the tax credit for subsequent employers and the
16protection of benefits arising from an employee's pension or
17from a preexisting collective bargaining agreement under this
18section, the board shall be deemed to have satisfied all
19obligations to bargain over the effects of the decision to cease
20wholesale and retail operations under this article which may
21arise under:

22(1) the act of June 1, 1937 (P.L.1168, No.294), known as
23the Pennsylvania Labor Relations Act; or

24(2) the act of July 23, 1970 (P.L.563, No.195), known as
25the Public Employe Relations Act.

26(c) Local regulation.--This article supersedes a local
27regulation, ordinance or resolution of a political subdivision
28regarding notice to displaced workers.

29SUBARTICLE E

30MISCELLANEOUS PROVISIONS

1Section 341-A. License renewals.

2(a) Renewal.--

3(1) Wine and spirits licenses issued under this article
4shall be subject to renewal every two years, with validation.

5(2) The application for renewal shall be submitted on a
6form provided by the board at least 30 days prior to the
7expiration of the wine and spirits license and shall include,
8at a minimum, an update of the information contained in the
9initial and prior renewal applications and the payment of any
10renewal fee required under this article.

11(3) A wine and spirits license for which a completed
12renewal application and fee has been received by the board
13shall continue to be valid until the board sends written
14notification to the licensee that the board has denied the
15renewal of the license.

16(b) Fee.--

17(1) A renewal fee of $1,000 shall be due upon
18application for the renewal or validation of a wine and
19spirits retail license.

20(2) A renewal fee of $5,000 shall be due upon
21application for the renewal or validation of a wine and
22spirits wholesale license.

23(3) The board may adjust the renewal fee to ensure that
24the fee adequately recovers the costs associated with
25investigating the renewal application.

26(c) Renewal hearings.--The director of the board's Bureau of
27Licensing may object to the renewal of licenses issued under
28this article pursuant to the same authority granted under
29section 470. Hearings and appeals arising from the objections
30shall be conducted in accordance with section 464.

1(d) Revocation of operating authority.--

2(1) The board may revoke the operating authority of a
3wine and spirits license issued under this article if it
4finds that the licensee or any of its affiliates, executive
5officers, directors or general or limited partners or persons
6holding a controlling interest in the licensee:

7(i) is in violation of any provision of this act;

8(ii) has furnished the board with false or
9misleading information; or

10(iii) is no longer reputable or suitable for
11licensure.

12(2) If a wine and spirits license is revoked or not
13renewed, the wine and spirits licensee's authorization to
14conduct business as a wine and spirits licensee shall
15immediately cease until the board notifies the licensee that
16the operating authority has been reinstated.

17(e) Affirmative duty.--Nothing under this section shall
18relieve a wine and spirits licensee of the affirmative duty to
19notify the board of changes relating to the status of its
20license or to other information contained in the application
21materials filed with the board.

22Section 342-A. Revocation, suspension and fines.

23(a) Authority of enforcement bureau.--The enforcement bureau
24shall have the authority to issue a citation against a wine and
25spirits licensee in the same manner as under section 471. The
26bureau may issue a citation to the licensee based on the
27following conduct:

28(1) The licensee violated any of the following:

29(i) A provision of this act.

30(ii) The regulations of the board.

1(iii) The licensee's signed statement of conditions.

2(iv) The licensee violated any other law of this
3Commonwealth.

4(2) The licensee knowingly presented to the board false,
5incomplete or misleading information.

6(3) The licensee pleaded guilty, entered a plea of nolo
7contendere or has been found guilty of a felony by a judge or
8jury in a Federal or State court.

9(4) The licensee failed to operate the business or to
10provide a reasonable level of consumer service.

11(5) The licensee failed to remit taxes as required.

12(b) Administrative Law Judge.--Enforcement matters shall be
13heard by an administrative judge in the same manner as under
14section 471. The administrative law judge may issue a fine and
15either suspend or revoke the license. Appeals may be taken in
16the same manner as under section 471.

17(c) Sales prohibited.--No person may sell liquor at a
18premises if any of the following apply:

19(1) The wine and spirits license applicable to that
20premises has been suspended or revoked or has expired.

21(2) The operating authority for the wine and spirits
22license has been revoked.

23(d) Public sale.--If a wine and spirits retail license is
24revoked, forfeited or surrendered under this article, the board
25shall conduct an auction of the license, consistent with this
26article.

27Section 343-A. Sale, assignment or transfer of license.

28(a) Prohibition.--No person may sell, assign or transfer
29their interest in a wine and spirits license granted under this
30article to another person until the board has received,

1investigated and approved a transfer application. If the license
2is a wine and spirits retail license, the wine and spirits
3licensee must have been in continuous operation for at least one
4year prior to the date of the application to transfer the
5license.

6(b) Compliance.--Any person to whom a wine and spirits
7license is transferred must comply with this article prior to
8the transfer of the license.

9(c) Transfer fee.--

10(1) The transfer of a wine and spirits license shall be
11subject to a transfer fee equal to 1% of the license fee paid
12for the license and shall be paid as a condition of the
13transfer of the license.

14(2) The transfer fee applicable to the transfer of
15brands of liquor under section 327-A(b) shall not apply to
16the transfer of a wine and spirits wholesale license.

17(3) A wine and spirits retail license may not be
18transferred to another location outside the county in which
19it was initially issued.

20(d) Change of control.--For the purposes of this section, a
21change of control of a wine and spirits wholesale or retail
22licensee shall be deemed to be a sale, assignment or transfer of
23a wine and spirits wholesale or retail license. A wine and
24spirits wholesale or retail licensee must notify the board
25immediately upon becoming aware of a proposed or contemplated
26change of control.

27Section 344-A. The State Stores Fund.

28All fees, assessments, bid amounts or other charges paid by
29wine and spirits license applicants or licensees shall be paid
30or transferred into a restricted account in The State Stores

1Fund. Any fines collected by the administrative law judge from
2the licensees shall be remitted to the enforcement bureau for
3continued enforcement efforts.

4Section 345-A. Return of fee or bid.

5(a) Wine and spirits wholesale license fee.--The entire wine
6and spirits wholesale license fee paid by a wine and spirits
7wholesale licensee under section 324-A(d)(1) shall be returned
8if this article is amended or otherwise altered by an act of the
9General Assembly within five years of the effective date of this
10section to change provisions relating to the loss of rights to
11wholesale brands of liquors under section 326-A.

12(b) Wine and spirits retail licensee fee or bid amount.--The
13entire wine and spirits retail license fee or retail bid amount
14paid by a wine and spirits retail licensee shall be returned if
15this article is amended or otherwise altered by an act of the
16General Assembly within five years of the effective date of this
17section to authorize additional wine and spirits retail licenses
18under section 311.1-A.

19Section 10. Section 401 of the act, amended December 22,
202011 (P.L.530, No.113), is amended to read:

21Section 401. Authority to Issue Liquor Licenses to Hotels,
22Restaurants and Clubs.--(a) Subject to the provisions of this 
23act and regulations promulgated under this act, the board shall 
24have authority to issue a retail liquor license for any premises 
25kept or operated by a hotel, restaurant or club and specified in 
26the license entitling the hotel, restaurant or club to purchase 
27liquor from a Pennsylvania Liquor Store or a wine and spirits 
28wholesale licensee and to keep on the premises such liquor and, 
29subject to the provisions of this act and the regulations made 
30thereunder, to sell the same and also malt or brewed beverages 

1to guests, patrons or members for consumption on the hotel, 
2restaurant or club premises. Such licensees, other than clubs, 
3shall be permitted to sell malt or brewed beverages for 
4consumption off the premises where sold in quantities of not 
5more than one hundred ninety-two fluid ounces in a single sale 
6to one person as provided for in section 407; except that the 
7licensees acquiring a thirty-pack permit issued by the board may 
8sell to a person a single package prepared for sale or 
9distribution of not more than thirty original containers and 
10totaling not less than three hundred sixty fluid ounces of malt 
11or brewed beverages. Such licenses shall be known as hotel 
12liquor licenses, restaurant liquor licenses and club liquor 
13licenses, respectively. No person who holds any public office 
14that involves the duty to enforce any of the penal laws of the 
15United States, this Commonwealth or of any political subdivision 
16of this Commonwealth may have any interest in a hotel or 
17restaurant liquor license. This prohibition applies to anyone 
18with arrest authority, including, but not limited to, United 
19States attorneys, State attorneys general, district attorneys, 
20sheriffs and police officers. This prohibition shall also apply 
21to magisterial district judges, judges or any other individuals 
22who can impose a criminal sentence. This prohibition does not 
23apply to members of the General Assembly, township supervisors, 
24city councilpersons, mayors without arrest authority and any 
25other public official who does not have the ability to arrest or 
26the ability to impose a criminal sentence. This section does not 
27apply if the proposed premises are located outside the 
28jurisdiction of the individual in question.

29(b) The board may issue to any club which caters to groups
30of non-members, either privately or for functions, a catering

1license, and the board shall, by its rules and regulations,
2define what constitutes catering under this subsection except
3that any club which is issued a catering license shall not be
4prohibited from catering on Sundays during the hours which the
5club may lawfully serve liquor, malt or brewed beverages.

6Section 11. Section 404 of the act, amended January 6, 2006
7(P.L.1, No.1), is amended to read:

8Section 404. Issuance, Transfer or Extension of Hotel,
9Restaurant and Club Liquor Licenses.--Upon receipt of the
10application and the proper fees, and upon being satisfied of the
11truth of the statements in the application that the applicant is
12the only person in any manner pecuniarily interested in the
13business so asked to be licensed and that no other person will
14be in any manner pecuniarily interested therein during the
15continuance of the license, except as hereinafter permitted, and
16that the applicant is a person of good repute, that the premises
17applied for meet all the requirements of this act and the
18regulations of the board, that the applicant seeks a license for
19a hotel, restaurant or club, as defined in this act, and that
20the issuance of such license is not prohibited by any of the
21provisions of this act, the board shall, in the case of a hotel
22or restaurant, grant and issue to the applicant a liquor
23license, and in the case of a club may, in its discretion, issue
24or refuse a license: Provided, however, That in the case of any
25new license or the transfer of any license to a new location or
26the extension of an existing license to cover an additional area
27the board may, in its discretion, grant or refuse such new
28license, transfer or extension if such place proposed to be
29licensed is within three hundred feet of any church, hospital,
30charitable institution, school, or public playground, or if such

1new license, transfer or extension is applied for a place which
2is within two hundred feet of any other premises which is
3licensed by the board: And provided further, That the board's
4authority to refuse to grant a license because of its proximity
5to a church, hospital, charitable institution, public playground
6or other licensed premises shall not be applicable to license
7applications submitted for public venues or performing arts
8facilities: And provided further, That the board shall refuse
9any application for a new license, the transfer of any license
10to a new location or the extension of an existing license to
11cover an additional area if, in the board's opinion, such new
12license, transfer or extension would be detrimental to the
13welfare, health, peace and morals of the inhabitants of the
14neighborhood within a radius of five hundred feet of the place
15proposed to be licensed: And provided further, That the board
16shall have the discretion to refuse a license to any person or
17to any corporation, partnership or association if such person,
18or any officer or director of such corporation, or any member or
19partner of such partnership or association shall have been
20convicted or found guilty of a felony within a period of five
21years immediately preceding the date of application for the said
22license. [The board shall refuse any application for a new
23license, the transfer of any license to a new location or the
24extension of any license to cover an additional area where the
25sale of liquid fuels or oil is conducted.] The board may enter
26into an agreement with the applicant concerning additional
27restrictions on the license in question. If the board and the
28applicant enter into such an agreement, such agreement shall be
29binding on the applicant. Failure by the applicant to adhere to
30the agreement will be sufficient cause to form the basis for a

1citation under section 471 and for the nonrenewal of the license
2under section 470. If the board enters into an agreement with an
3applicant concerning additional restrictions, those restrictions
4shall be binding on subsequent holders of the license until the
5license is transferred to a new location or until the board
6enters into a subsequent agreement removing those restrictions.
7If the application in question involves a location previously
8licensed by the board, then any restrictions imposed by the
9board on the previous license at that location shall be binding
10on the applicant unless the board enters into a new agreement
11rescinding those restrictions. The board may, in its discretion,
12refuse an application for an economic development license under
13section 461(b.1) or an application for an intermunicipal
14transfer of a license if the board receives a protest from the
15governing body of the receiving municipality. The receiving
16municipality of an intermunicipal transfer or an economic
17development license under section 461(b.1) may file a protest
18against the transfer of a license into its municipality, and the
19receiving municipality shall have standing in a hearing to
20present testimony in support of or against the issuance or
21transfer of a license. Upon any opening in any quota, an
22application for a new license shall only be filed with the board
23for a period of six months following said opening.

24Section 12. Section 405(c) of the act, amended April 29,
251994 (P.L.212, No.30), is amended to read:

26Section 405. License Fees.--* * *

27(c) All license fees authorized under this section shall be
28collected by the board for the use of the municipalities in
29which such fees were collected[.] if the municipalities receive 
30services from a municipal police department. Fees collected in 

1municipalities that do not receive service from a municipal 
2police department must be transferred to the enforcement bureau 
3for continued enforcement efforts.

4* * *

5Section 13. Section 406(e)(1) of the act, amended December
622, 2011 (P.L.530, No.113), is amended to read:

7Section 406. Sales by Liquor Licensees; Restrictions.--* * *

8(e) (1) The holder of a hotel license or the holder of a 
9restaurant license located in a hotel may allow persons to 
10transport liquor or malt or brewed beverages from the licensed 
11portion of the premises to the unlicensed portion of the 
12premises, so long as the liquor or malt or brewed beverages 
13remain on the hotel property. In addition, a holder of a 
14restaurant or club license located on a golf course may sell, 
15furnish or give liquor or malt or brewed beverages on the 
16unlicensed portion of the golf course so long as the liquor or 
17malt or brewed beverages remain on the restaurant, club or golf 
18course. The holder of a restaurant license located immediately 
19adjacent to and under the same roof of a bowling center may 
20allow persons to transport liquor or malt or brewed beverages 
21from the licensed portion of the premises to the unlicensed 
22portion of the premises, so long as the liquor or malt or brewed 
23beverages remain within the bowling center. Notwithstanding this 
24paragraph, the holder of a hotel license or a restaurant license 
25may sell up to six bottles of wine for consumption off the 
26licensed premises so long as the bottles remain sealed. In 
27addition, the holder of a hotel license or a restaurant license 
28may allow persons who have purchased but only partially consumed 
29a bottle of wine on the premises to remove the bottle from the 
30premises so long as the bottle was purchased in conjunction with 

1a meal which was consumed on the premises and so long as the 
2bottle is resealed. For purposes of this subsection, "wine" 
3shall have the meaning given to it under section 488(i). For 
4purposes of this section and section 432, "meal" shall mean food 
5prepared on the premises, sufficient to constitute breakfast, 
6lunch or dinner; it shall not mean a snack, such as pretzels, 
7popcorn, chips or similar food.

8* * *

9Section 14. Section 407 of the act, amended November 29, 
102006 (P.L.1421, No.155) and June 28, 2011 (P.L.55, No.11), is 
11amended to read:

12Section 407. Sale of Malt or Brewed Beverages by Liquor
13Licensees.--(a) Every liquor license issued to a hotel, 
14restaurant, club, or a railroad, pullman or steamship company 
15under this subdivision (A) for the sale of liquor shall 
16authorize the licensee to sell malt or brewed beverages at the 
17same places but subject to the same restrictions and penalties 
18as apply to sales of liquor, except that licensees other than 
19clubs may sell malt or brewed beverages for consumption off the 
20premises where sold in quantities of not more than one hundred 
21ninety-two fluid ounces in a single sale to one person, however, 
22the licensees acquiring a thirty-pack permit issued by the board 
23may sell to a person a single package prepared for sale or 
24distribution of not more than thirty original containers and 
25totaling not less than three hundred sixty fluid ounces of malt 
26or brewed beverages. The sales may be made in either open or 
27closed containers, Provided, however, That a municipality may 
28adopt an ordinance restricting open containers in public places. 
29No licensee under this subdivision (A) shall at the same time be 
30the holder of any other class of license, except a retail 

1dispenser's license authorizing the sale of malt or brewed 
2beverages only.

3(b) (1) Notwithstanding any other provision of law or any
4existing permit authorizing the sale of malt or brewed beverages
5for consumption off the premises, a restaurant licensee located
6in a city of the first class who is otherwise permitted to sell
7malt or brewed beverages for consumption off the premises may
8not do so after October 31, 2007, unless it acquires a permit
9from the board.

10(2) The application for a permit to sell malt or brewed 
11beverages for consumption off the premises shall be on forms 
12designated by the board and contain such information as the 
13board may require. The application and renewal fee shall be as 
14prescribed in section 614-A(27) of the act of April 9, 1929 
15(P.L.177, No.175), known as "The Administrative Code of 1929." 
16However, no applicant who currently has a permit shall be 
17required to pay any additional fees under section 614-A(27) of 
18"The Administrative Code of 1929" in order to continue selling 
19malt or brewed beverages for consumption off the premises at its 
20currently licensed location for the licensing term beginning 
21November 1, 2007, and ending October 31, 2008.

22(3) The application for a permit to sell malt or brewed
23beverages for consumption off the premises must be accompanied
24by a copy of the approval of such request by the hearing board
25authorized by this section.

26(4) A city of the first class shall create a hearing board
27within its Department of Licenses and Inspections to hear
28requests from licensees who are seeking a permit from the
29hearing board authorizing the licensee to sell malt or brewed
30beverages for consumption off the premises. Each hearing board

1shall consist of three persons appointed by the mayor of the
2city of the first class, who are subject to approval by the city
3council of the city of the first class. Each person so appointed
4shall serve at the pleasure of the appointing authority. The
5hearing board may, in its discretion, hold hearings to adduce
6testimony regarding a request. The hearing board must render a
7decision within ninety days of receipt of a request for approval
8of a permit to sell malt or brewed beverages for consumption off
9the premises. The hearing board must approve the request unless
10it finds that doing so would adversely affect the welfare,
11health, peace and morals of the city or its residents. A
12decision by the hearing board to deny a request may be appealed
13to the court of common pleas in the county in which the city is
14located. The failure to render a decision by the hearing board
15within the required time period shall be deemed approval of the
16permit.

17(5) Upon being satisfied that the applicant has fulfilled
18all the requirements of this act and the board's regulations,
19the board shall approve the application. Such permits shall
20expire upon the transfer of the license to a new entity or to a
21new location, or both; otherwise, such permits shall expire at
22the same time as the expiration of the underlying license.

23Section 15. Section 408.12(g) and (h) of the act, added July
241, 1994 (P.L.402, No.61), are amended to read:

25Section 408.12. Wine Auction Permits.--* * *

26(g) Any wine sold under this section shall be purchased from
27a Pennsylvania Liquor Store, a wine and spirits retail licensee,
28a Pennsylvania limited winery or any seller authorized to sell
29wine by the bottle or case in this Commonwealth, including a 
30big-box retail store licensee, grocery store licensee, pharmacy 

1licensee, enhanced distributor licensee, restaurant liquor 
2licensee or hotel liquor licensee, or shall be donated by a
3person who is neither a licensee nor a permittee who has legally
4acquired the wine and legally possesses it in this Commonwealth.

5(h) If any wine sold under this section is purchased from a
6seller other than a Pennsylvania Liquor Store, wine and spirits 
7retail licensee, big-box retail store licensee, grocery store 
8licensee, pharmacy licensee, enhanced distributor licensee, 
9restaurant liquor licensee, hotel liquor licensee or [a]
10Pennsylvania limited winery, the permittee shall provide thirty
11days' notice to the board of its intent to purchase such wine.
12The notice shall include a description of the wine to be
13purchased, the quantity to be purchased, the name of the seller
14and any other information which the board may require. The
15permittee shall comply with all board regulations regarding
16taxes and fees.

17* * *

18Section 16. Section 410(e) of the act is amended to read:

19Section 410. Liquor Importers' Licenses; Fees; Privileges;
20Restrictions.--* * *

21(e) Importers' licenses shall permit the holders thereof to
22bring or import liquor from other states, foreign countries, or
23insular possessions of the United States, and purchase liquor
24from manufacturers located within this Commonwealth, to be sold
25outside of this Commonwealth or to Pennsylvania Liquor Stores or 
26wine and spirits wholesale licensees within this Commonwealth,
27or when in original containers of ten gallons or greater
28capacity, to licensed manufacturers within this Commonwealth.

29All importations of liquor into Pennsylvania by the licensed
30importer shall be consigned to the board or the principal place

1of business or authorized place of storage maintained by the
2licensee or a wine and spirits wholesale licensee.

3* * *

4Section 17. The act is amended by adding sections to read:

5Section 415. Grocery Store Licenses.--(a) The board is 
6authorized to issue a grocery store license to the operator of a 
7grocery store who has applied for the license.

8(b) The following shall apply:

9(1) An applicant for a grocery store license shall file a
10written application with the board in the form and containing
11the information as the board prescribes. The application must be
12accompanied by an application fee of seven hundred dollars
13($700).

14(2) Except as provided under paragraph (3), the initial 
15license fee shall be twenty-five thousand dollars ($25,000) with 
16an annual renewal fee of twenty-five thousand dollars ($25,000).

17(3) If the applicant is a grocery store with annual gross 
18sales totaling more than two million dollars ($2,000,000), the 
19initial application shall be subject to a license fee of thirty 
20thousand dollars ($30,000) and an annual renewal fee of thirty 
21thousand dollars ($30,000).

22(c) A license issued under this section is considered a
23restaurant liquor license under this act subject to the
24following additional restrictions and privileges:

25(1) A license holder may sell malt or brewed beverages for 
26consumption off the premises in original sealed containers in 
27quantities of no more than one hundred ninety-two fluid ounces 
28in a single sale to one person. The sale of a individual bottle 
29or can of any size is not permitted. The malt or brewed 
30beverages sold must be lawfully procured from a licensed 

1manufacturer or from an importing distributor or distributor who 
2has been appointed to the territory in which the grocery store 
3is physically located.

4(2) A license holder may sell up to six unopened sealed
5bottles of wine for consumption off the premises to nonlicensed
6customers and permit holders. For purposes of this subsection,
7"wine" shall have the meaning given to it under section 488(i).
8The wine sold by grocery store license holders must be lawfully
9procured from a Pennsylvania Liquor Store, licensed limited
10winery or a wholesale licensee.

11(3) Sales of alcohol may occur on Monday through Saturday
12between the hours of seven o'clock ante meridian and two o'clock
13ante meridian of the following day and on Sunday between the
14hours of seven o'clock ante meridian and two o'clock ante
15meridian on Monday upon acquiring a Sunday sales permit from the
16board upon application and payment of a permit fee of two
17thousand dollars ($2,000). A license holder does not need to
18acquire an extended hours food permit in order to remain open
19past two o'clock ante meridian, however alcohol sales may not
20occur until seven o'clock ante meridian of that day.

21(4) A license holder is not subject to the definition of a
22restaurant unless the license holder wishes to sell alcohol for
23consumption on the premises. The holder of a grocery store
24license may only sell alcohol for consumption on the licensed
25premises if it also holds an appropriate retail license issued
26by the board that authorizes the sale for consumption on the
27premises at the same location. A grocery store license holder
28that holds a retail license for consumption on the premises must
29clearly delineate the areas of the premises to be utilized under
30a license. Notwithstanding any other provision of law, a grocery

1store license holder may have an interior connection to or with
2its separately licensed restaurant or eating place.

3(5) A license holder may not provide entertainment as
4otherwise authorized by the special permit available under
5section 493(10).

6(6) A license holder may not acquire an off premises
7catering permit.

8(7) A license holder is not subject to section 493(14) as it
9relates to minors frequenting the licensed premises, except that
10section 493(14) applies in the areas separately licensed for on
11the premises sale, service, storage or consumption of alcohol.

12(8) A license holder is not subject to the prohibition on
13cashing certain checks set forth in section 493(15).

14(9) A license holder is not subject to the cost and total
15display area limitations of section 493(20)(i).

16(10) A license holder is not subject to the restrictions set
17forth in section 499 related to patrons vacating the premises.

18(11) Sales of alcohol for consumption off the premises may
19be paid for at a register designated by the license holder, and
20the register may be used to pay for other items sold by the
21license holder. Sales of alcohol for on premises consumption
22made under a retail license authorizing the sales may only take
23place at a register located within the area licensed for on
24premises sales.

25(12) A license holder shall utilize a transaction scan
26device to verify the age of a person before making a sale of
27alcohol. For purposes of this section, a "transaction scan
28device" is a device capable of deciphering in an electronically
29readable format the information encoded on the magnetic strip or
30bar code of an identification card set forth in section 495(a).

1(13) A license holder is strictly prohibited from selling
2alcohol at a price less than the underlying cost of the product.

3(14) A license holder is prohibited from directly or
4indirectly offering an inducement to purchase alcoholic
5beverages under section 493(24)(i) or engaging in a discount
6pricing practice authorized by this act.

7(15) A license holder is not subject to the noise
8restrictions under section 493(34).

9(16) A license may not be issued in a municipality that has
10adopted a resolution prohibiting the issuance of a restaurant
11liquor license unless the municipality subsequently adopts a
12resolution that permits the board to issue a grocery store
13license in the municipality.

14Section 416. Convenience Store Licenses.--(a) The board is
15authorized to issue a convenience store license to the operator
16of a convenience store who has applied for the license.

17(b) An applicant for a convenience store license shall file
18a written application with the board in the form and containing
19the information as the board prescribes. The application must be
20accompanied by an application fee of seven hundred dollars
21($700). The initial application for a convenience store license
22shall be subject to a license fee of ten thousand dollars
23($10,000) and an annual renewal fee of ten thousand dollars
24($10,000).

25(c) A license issued under this section is considered an
26eating place retail dispenser license under this act subject to
27the following additional restrictions and privileges:

28(1) A license holder may sell malt or brewed beverages for 
29consumption off the premises in original sealed containers in 
30quantities of not more than ninety-six fluid ounces in a single 

1sale to one person. The sale of an individual bottle or can of 
2any size is not permitted. The malt or brewed beverages sold 
3must be lawfully procured from a licensed manufacturer or from 
4an importing distributor or distributor who has been appointed 
5to the territory in which the convenience store is physically 
6located.

7(2) A license holder may not sell liquor on the premises.

8(3) Sales of malt or brewed beverages may occur on Monday
9through Saturday between the hours of seven o'clock ante
10meridian and two o'clock ante meridian of the following day, and
11on Sunday between the hours of eleven o'clock ante meridian and
12two o'clock ante meridian on the following day upon acquiring a
13Sunday sales permit from the board upon application and payment
14of a permit fee of two thousand dollars ($2,000). A license
15holder does not need to acquire an extended hours food permit in
16order to remain open past two o'clock ante meridian, however, no
17alcohol sales may occur until seven o'clock ante meridian of
18that day.

19(4) A license holder is not subject to the definition of an
20"eating place" unless the license holder wishes to sell malt or
21brewed beverages for consumption on the premises. The holder of
22a convenience store license may only sell malt or brewed
23beverages for consumption on the licensed premises if it holds
24an appropriate retail license issued by the board that
25authorizes the sale for consumption on the premises at the same
26location. A convenience store license holder that also holds a
27retail license for consumption on the premises must clearly
28delineate the areas of the licensed premises to be utilized
29under a respective license. Notwithstanding any other provision
30of law, a convenience store license holder may have an interior

1connection to or with its separately licensed restaurant or
2eating place.

3(5) A license holder is not allowed to provide entertainment
4as otherwise authorized by the special permit available under
5section 493(10).

6(6) A license holder may not acquire an off premises
7catering permit.

8(7) A license holder is not subject to section 493(14) as it
9relates to minors frequenting the licensed premises, except that
10section 493(14) applies in the areas separately licensed for on
11premises sale, service, storage or consumption of alcohol.

12(8) A license holder is not subject to the prohibition on
13cashing certain checks set forth in section 493(15).

14(9) A license holder is not subject to the cost and total
15display area limitations of section 493(20)(i).

16(10) A license holder is not subject to the restrictions set
17forth in section 499 related to patrons vacating the premises.

18(11) Sales of malt or brewed beverages for consumption off
19the premises may be paid for at a register designated by the
20license holder and the register may be used to pay for other
21items sold by the license holder. Sales of alcohol for
22consumption on the premises made under a retail license
23authorizing the sales may only take place at a register located
24within the area licensed for on premises sales.

25(12) A license holder shall utilize a transaction scan
26device to verify the age of a person before making a sale of
27alcohol. For purposes of this section, a "transaction scan
28device" is a device capable of deciphering in an electronically
29readable format the information encoded on the magnetic strip or
30bar code of an identification card set forth in section 495(a).

1(13) A license holder is strictly prohibited from selling
2alcohol at a price less than the underlying cost of the product.

3(14) A license holder is prohibited from directly or
4indirectly offering an inducement to purchase alcoholic
5beverages under section 493(24)(i) or engaging in a discount
6pricing practice authorized by this act.

7(15) A license holder is not subject to the noise
8restrictions under section 493(34).

9(16) A license may not be issued in a municipality that has
10adopted a resolution prohibiting the issuance of an eating place
11retail dispenser license unless the municipality subsequently
12adopts a resolution that permits the board to issue a
13convenience store license in the municipality.

14Section 417. Big-Box Retail Store Licenses.--(a) The board
15is authorized to issue a big-box retail store license to the
16operator of a big-box retail store who has applied for the
17license.

18(b) An applicant for a big-box retail store license shall
19file a written application with the board in the form and
20containing the information as the board prescribes from time to
21time. The application must be accompanied by an application fee
22of seven hundred dollars ($700). The initial application for a
23big-box retail store license shall be subject to a license fee
24of thirty-five thousand dollars ($35,000) and an annual renewal
25fee of thirty-five thousand dollars ($35,000), due at the time
26of renewal or validation of the license.

27(c) A license issued under this section is considered a
28restaurant liquor license under this act subject to the
29following additional restrictions and privileges:

30(1) A license holder may sell to nonlicensed customers malt

1or brewed beverages for consumption off the premises by the
2case. The malt or brewed beverages sold by a big-box retail
3store license holder must be lawfully procured from licensed
4manufacturers, or for those products manufactured outside of the
5Commonwealth, from an importing distributor who has been
6appointed to the territory in which the big-box retail store is
7physically located. A license holder is prohibited from
8transporting, or having transported, a brand of malt or brewed
9beverages purchased from one licensed location to another
10licensed location for the purpose of selling the malt or brewed
11beverages at the other location.

12(2) A license holder may sell to nonlicensed customers and
13permit holders up to six unopened sealed bottles of wine for
14consumption off the premises. For purposes of this subsection,
15"wine" shall have the meaning given to it under section 488(i).
16The wine sold by big-box retail store license holders must be
17lawfully procured from a Pennsylvania Liquor Store, licensed
18limited winery or wholesale licensee.

19(3) Sales of alcohol may occur on Monday through Saturday
20between the hours of seven o'clock ante meridian and two o'clock
21ante meridian of the following day, and on Sunday between the
22hours of eleven o'clock ante meridian and two o'clock ante
23meridian on the following day upon acquiring a Sunday sales
24permit from the board upon application and payment of a permit
25fee of two thousand dollars ($2,000). A license holder does not
26need to acquire an extended hours food permit in order to remain
27open past two o'clock ante meridian, however, no alcohol sales
28may occur until seven o'clock ante meridian of that day.

29(4) A license holder is not subject to the definition of a
30restaurant unless the license holder wishes to sell malt or

1brewed beverages for consumption on the premises. The holder of
2a big-box retail store license may only sell malt or brewed
3beverages and wine for consumption on the licensed premises if
4it holds an appropriate retail license issued by the board that
5authorizes the sale for consumption on the premises at the same
6location. A big-box retail store license holder that holds a
7retail license for consumption on the premises must clearly
8delineate the areas of the licensed premises to be utilized
9under a license. Notwithstanding any other provision of law, a
10convenience store license holder may have an interior connection
11to or with its separately licensed restaurant or eating place.

12(5) A license holder is not allowed to provide entertainment
13as otherwise authorized by the special permit available under
14section 493(10).

15(6) A license holder may not acquire an off premises
16catering permit.

17(7) A license holder is not subject to section 493(14) as it
18relates to minors frequenting the licensed premises, except that
19section 493(14) applies in the areas separately licensed for on
20premises sale, service, storage or consumption of alcohol.

21(8) A license holder is not subject to the prohibition on
22cashing certain checks set forth in section 493(15).

23(9) A license holder is not subject to the cost and total
24display area limitations of section 493(20)(i).

25(10) A license holder is not subject to the restrictions set
26forth in section 499 related to patrons vacating the premises.

27(11) Sales of alcohol for consumption off the premises may
28be paid for at a register designated by the license holder and
29the register may be used to pay for other items sold by the
30license holder. Sales of alcohol for consumption on the premises

1made under a retail license authorizing the sales may only take
2place at a register located within the area licensed for on
3premises sales.

4(12) A license holder shall utilize a transaction scan
5device to verify the age of a person before making a sale of
6alcohol. For purposes of this section, a "transaction scan
7device" is a device capable of deciphering in an electronically
8readable format the information encoded on the magnetic strip or
9bar code of an identification card set forth in section 495(a).

10(13) A license holder is strictly prohibited from selling
11alcohol at a price less than the underlying cost of the product.

12(14) A license holder is not prohibited from directly or
13indirectly offering an inducement to purchase alcoholic
14beverages under section 493(24)(i) or engaging in a discount
15pricing practice authorized by this act.

16(15) A license holder is not subject to the noise
17restrictions of section 493(34).

18(16) A license may not be issued in a municipality that has
19adopted a resolution prohibiting the issuance of a restaurant
20liquor license unless the municipality subsequently adopts a
21resolution that permits the board to issue a big-box retail
22store license in the municipality.

23Section 418. Pharmacy Licenses.--(a) The board is 
24authorized to issue a pharmacy license to the operator of a 
25pharmacy who has applied for the license.

26(b) An applicant for a pharmacy license must file a written 
27application with the board in the form and containing
28information as the board prescribes and an application filing 
29fee of seven hundred dollars ($700). The initial application for 
30a pharmacy license shall be subject to a license fee of 

1seventeen thousand five hundred dollars ($17,500) and an annual 
2renewal fee of seventeen thousand five hundred dollars 
3($17,500).

4(c) A license issued under this section is considered a 
5restaurant liquor license under this act subject to the 
6following additional restrictions and privileges:

7(1) A license holder may sell malt or brewed beverages for 
8consumption off the premises in original sealed containers in 
9quantities of not more than one hundred ninety-two fluid ounces 
10in a single sale to one person. The sale of an individual bottle 
11or can of any size is not permitted. The malt or brewed 
12beverages sold must be lawfully procured from a licensed 
13manufacturer or from an importing distributor or distributor who 
14has been appointed to the territory in which the grocery store 
15is physically located.

16(2) A license holder may sell to nonlicensed customers and
17permit holders up to six unopened sealed bottles of wine for
18consumption off the premises. For purposes of this subsection,
19"wine" shall have the meaning given to it under section 488(i).
20The wine sold by pharmacy store license holders must be lawfully
21procured from a Pennsylvania Liquor Store, licensed limited
22winery or wholesale licensee.

23(3) Sales of alcohol may occur on Monday through Saturday
24between the hours of seven o'clock ante meridian and two o'clock
25ante meridian of the following day, and on Sunday between the
26hours of seven o'clock ante meridian and two o'clock ante
27meridian on Monday upon acquiring a Sunday sales permit from the
28board upon application of a permit fee of two thousand dollars
29($2,000). A license holder does not need to acquire an extended
30hours food permit in order to remain open past two o'clock ante

1meridian, however no alcohol sales may occur until seven o'clock
2ante meridian of that day.

3(4) A license holder is not subject to the definition of a
4"restaurant" unless the license holder wishes to sell alcohol
5for consumption on the premises. The holder of a pharmacy
6license may only sell alcohol for consumption on the licensed
7premises if it holds an appropriate retail license issued by the
8board that authorizes the sale for consumption on the premises
9at the same location. A pharmacy license holder that holds a
10retail license for consumption on the premises must clearly
11delineate the areas of the premises to be utilized under a
12license. Notwithstanding any other provision of law, a pharmacy
13license holder may have an interior connection to or with its
14separately licensed restaurant or eating place.

15(5) A license holder is not allowed to provide entertainment
16as otherwise authorized by the special permit available under
17section 493(10).

18(6) A license holder may not acquire an off-premises
19catering permit.

20(7) A license holder is not subject to section 493(14) as it
21relates to minors frequenting the licensed premises, except that
22section 493(14) applies in the areas separately licensed for on
23premises sale, service, storage or consumption of alcohol.

24(8) A license holder is not subject to the prohibition on
25cashing certain checks set forth in section 493(15).

26(9) A license holder is not subject to the cost and total
27display area limitations of section 493(20)(i).

28(10) A license holder is not subject to the restrictions set
29forth in section 499 related to patrons vacating the premises.

30(11) Sales of alcohol for consumption off the premises may

1be paid for at a register designated by the license holder and
2the register may be used to pay for other items sold by the
3license holder. Sales of alcohol for consumption off the
4premises made under a retail license authorizing the sales may
5only take place at a register located within the area licensed
6for on premises sales.

7(12) A license holder shall utilize a transaction scan
8device to verify the age of a person before making a sale of
9alcohol. For purposes of this section, a "transaction scan
10device" is a device capable of deciphering in an electronically
11readable format the information encoded on the magnetic strip or
12bar code of an identification card set forth in section 495(a).

13(13) A license holder is strictly prohibited from selling
14alcohol at a price less than the underlying cost of the product.

15(14) A license holder is prohibited from directly or
16indirectly offering an inducement to purchase alcoholic
17beverages under section 493(24)(i) or engaging in a discount
18pricing practice authorized by this act.

19(15) A license holder is not subject to the noise
20restrictions of section 493(34).

21(16) A license may not be issued in a municipality that has
22adopted a resolution prohibiting the issuance of a restaurant
23liquor license unless the municipality subsequently adopts a
24resolution that permits the board to issue a pharmacy license in
25the municipality.

26Section 18. Section 431(b) of the act, amended December 8,
272004 (P.L.1810, No.239), is amended to read:

28Section 431. Malt and Brewed Beverages Manufacturers',
29Distributors' and Importing Distributors' Licenses.--* * *

30(b) The board shall issue to any reputable person who

1applies therefor, and pays the license fee hereinafter
2prescribed, a distributor's or importing distributor's license
3for the place which such person desires to maintain for the sale
4of malt or brewed beverages, not for consumption on the premises
5where sold, and in quantities of not less than a case or
6original containers containing one hundred twenty-eight ounces
7or more which may be sold separately as prepared for the market
8by the manufacturer at the place of manufacture. The board shall
9have the discretion to refuse a license to any person or to any
10corporation, partnership or association if such person, or any
11officer or director of such corporation, or any member or
12partner of such partnership or association shall have been
13convicted or found guilty of a felony within a period of five
14years immediately preceding the date of application for the said
15license: And provided further, That, in the case of any new
16license or the transfer of any license to a new location, the
17board may, in its discretion, grant or refuse such new license
18or transfer if such place proposed to be licensed is within
19three hundred feet of any church, hospital, charitable
20institution, school or public playground, or if such new license
21or transfer is applied for a place which is within two hundred
22feet of any other premises which is licensed by the board: And
23provided further, That the board shall refuse any application
24for a new license or the transfer of any license to a new
25location if, in the board's opinion, such new license or
26transfer would be detrimental to the welfare, health, peace and
27morals of the inhabitants of the neighborhood within a radius of
28five hundred feet of the place proposed to be licensed. [The
29board shall refuse any application for a new license or the
30transfer of any license to a location where the sale of liquid

1fuels or oil is conducted.] The board may enter into an
2agreement with the applicant concerning additional restrictions
3on the license in question. If the board and the applicant enter
4into such an agreement, such agreement shall be binding on the
5applicant. Failure by the applicant to adhere to the agreement
6will be sufficient cause to form the basis for a citation under
7section 471 and for the nonrenewal of the license under section
8470. If the board enters into an agreement with an applicant
9concerning additional restrictions, those restrictions shall be
10binding on subsequent holders of the license until the license
11is transferred to a new location or until the board enters into
12a subsequent agreement removing those restrictions. If the
13application in question involves a location previously licensed
14by the board, then any restrictions imposed by the board on the
15previous license at that location shall be binding on the
16applicant unless the board enters into a new agreement
17rescinding those restrictions. The board shall require notice to
18be posted on the property or premises upon which the licensee or
19proposed licensee will engage in sales of malt or brewed
20beverages. This notice shall be similar to the notice required
21of hotel, restaurant and club liquor licensees.

22Except as hereinafter provided, such license shall authorize
23the holder thereof to sell or deliver malt or brewed beverages
24in quantities above specified anywhere within the Commonwealth
25of Pennsylvania, which, in the case of distributors, have been
26purchased only from persons licensed under this act as
27manufacturers or importing distributors, and in the case of
28importing distributors, have been purchased from manufacturers
29or persons outside this Commonwealth engaged in the legal sale
30of malt or brewed beverages or from manufacturers or importing

1distributors licensed under this article. If the holder of a 
2distributor license applies for and receives an enhanced 
3distributor license, issued pursuant to section 431.2, that 
4distributor shall be authorized to sell wine on the same 
5premises where malt or brewed beverages are sold, and shall be 
6authorized to sell malt or brewed beverages in quantities 
7enumerated in section 431.2. In the case of an importing
8distributor, the holder of such a license shall be authorized to
9store and repackage malt or brewed beverages owned by a
10manufacturer at a segregated portion of a warehouse or other
11storage facility authorized by section 441(d) and operated by
12the importing distributor within its appointed territory and
13deliver such beverages to another importing distributor who has
14been granted distribution rights by the manufacturer as provided
15herein. The importing distributor shall be permitted to receive
16a fee from the manufacturer for any related storage, repackaging
17or delivery services. In the case of a bailee for hire hired by
18a manufacturer, the holder of such a permit shall be authorized:
19to receive, store and repackage malt or brewed beverages
20produced by that manufacturer for sale by that manufacturer to
21importing distributors to whom that manufacturer has given
22distribution rights pursuant to this subsection or to purchasers
23outside this Commonwealth for delivery outside this
24Commonwealth; or to ship to that manufacturer's storage
25facilities outside this Commonwealth. The bailee for hire shall
26be permitted to receive a fee from the manufacturer for any
27related storage, repackaging or delivery services. The bailee
28for hire shall, as required in Article V of this act, keep
29complete and accurate records of all transactions, inventory,
30receipts and shipments and make all records and the licensed

1areas available for inspection by the board and for the
2Pennsylvania State Police, Bureau of Liquor Control Enforcement,
3during normal business hours.

4Each out of State manufacturer of malt or brewed beverages
5whose products are sold and delivered in this Commonwealth shall
6give distributing rights for such products in designated
7geographical areas to specific importing distributors, and such
8importing distributor shall not sell or deliver malt or brewed
9beverages manufactured by the out of State manufacturer to any
10person issued a license under the provisions of this act whose
11licensed premises are not located within the geographical area
12for which he has been given distributing rights by such
13manufacturer. Should a licensee accept the delivery of such malt
14or brewed beverages in violation of this section, said licensee
15shall be subject to a suspension of his license for at least
16thirty days: Provided, That the importing distributor holding
17such distributing rights for such product shall not sell or
18deliver the same to another importing distributor without first
19having entered into a written agreement with the said secondary
20importing distributor setting forth the terms and conditions
21under which such products are to be resold within the territory
22granted to the primary importing distributor by the
23manufacturer.

24When a Pennsylvania manufacturer of malt or brewed beverages
25licensed under this article names or constitutes a distributor
26or importing distributor as the primary or original supplier of
27his product, he shall also designate the specific geographical
28area for which the said distributor or importing distributor is
29given distributing rights, and such distributor or importing
30distributor shall not sell or deliver the products of such

1manufacturer to any person issued a license under the provisions
2of this act whose licensed premises are not located within the
3geographical area for which distributing rights have been given
4to the distributor and importing distributor by the said
5manufacturer: Provided, That the importing distributor holding
6such distributing rights for such product shall not sell or
7deliver the same to another importing distributor without first
8having entered into a written agreement with the said secondary
9importing distributor setting forth the terms and conditions
10under which such products are to be resold within the territory
11granted to the primary importing distributor by the
12manufacturer. Nothing herein contained shall be construed to
13prevent any manufacturer from authorizing the importing
14distributor holding the distributing rights for a designated
15geographical area from selling the products of such manufacturer
16to another importing distributor also holding distributing
17rights from the same manufacturer for another geographical area,
18providing such authority be contained in writing and a copy
19thereof be given to each of the importing distributors so
20affected.

21* * *

22Section 19. The act is amended by adding a section to read:

23Section 431.2. Enhanced distributor licenses.--(a) The
24board shall have the authority to issue an enhanced distributor
25license to any currently licensed distributor who makes
26application and pays the requisite license fee for use at the
27same place the distributor maintains for the sale of malt and
28brewed beverages.

29(b) For a license under subsection (a), the board shall
30require an initial license fee of one hundred fifty thousand

1dollars ($150,000) and an annual renewal fee of ten thousand
2dollars ($10,000). The single fee for a Sunday sales permit for
3a distributor holding a license under subsection (a) shall be
4two thousand dollars ($2,000).

5(c) The holder of an enhanced distributor license may, in
6addition to the privileges derived from its distributor license:

7(1) Sell to nonlicensed customers and permit holders
8unopened sealed bottles of wine for consumption off the
9premises. All wine sold by the holder of an enhanced distributor
10license must be lawfully procured from either a Pennsylvania
11Liquor Store, a licensed limited winery, or a wholesale licensee
12as defined in this act.

13(2) Notwithstanding any other provision of this act, break
14the bulk of a case and sell a unit of that case in quantities of
15not less than forty-two ounces.

16(d) Before the holder of an enhanced distributor license
17breaks the bulk of a case of malt or brewed beverages for the
18purpose of selling units of the case, the licensee shall inspect
19such case for damage and appropriate production date. When the
20licensee breaks the bulk of a case of malt or brewed beverages
21for the purpose of selling units of the case, the licensee shall
22bear all the risk of loss and shall be responsible for the
23destruction of any malt or brewed beverages which violate the
24manufacturer's specifications relating to sales by a certain
25date or within a number of days of the production date.

26(e) As used in this section:

27"Unit" shall mean an undamaged bottle or can from a case.

28"Wine" shall have the meaning given to it under section
29488(i).

30Section 20. Section 432(d) of the act, amended January 6,

12006 (P.L.1, No.1), is amended to read:

2Section 432. Malt and Brewed Beverages Retail Licenses.--* *
3*

4(d) The board shall, in its discretion, grant or refuse any
5new license, the transfer of any license to a new location or
6the extension of an existing license to cover an additional area
7if such place proposed to be licensed is within three hundred
8feet of any church, hospital, charitable institution, school, or
9public playground, or if such new license, transfer or extension
10is applied for a place which is within two hundred feet of any
11other premises which is licensed by the board. The board shall
12refuse any application for a new license, the transfer of any
13license to a new location or the extension of an existing
14license to cover an additional area if, in the board's opinion,
15such new license, transfer or extension would be detrimental to
16the welfare, health, peace and morals of the inhabitants of the
17neighborhood within a radius of five hundred feet of the place
18to be licensed. The board may enter into an agreement with the
19applicant concerning additional restrictions on the license in
20question. If the board and the applicant enter into such an
21agreement, such agreement shall be binding on the applicant.
22Failure by the applicant to adhere to the agreement will be
23sufficient cause to form the basis for a citation under section
24471 and for the nonrenewal of the license under section 470. If
25the board enters into an agreement with an applicant concerning
26additional restrictions, those restrictions shall be binding on
27subsequent holders of the license until the license is
28transferred to a new location or until the board enters into a
29subsequent agreement removing those restrictions. If the
30application in question involves a location previously licensed

1by the board, then any restrictions imposed by the board on the
2previous license at that location shall be binding on the
3applicant unless the board enters into a new agreement
4rescinding those restrictions[. The board shall refuse any
5application for a new license, the transfer of any license to a
6location where the sale of liquid fuels or oil is conducted or
7the extension of an existing license to cover an additional
8area]: And provided further, That the board shall have the
9discretion to refuse a license to any person or to any
10corporation, partnership or association if such person, or any
11officer or director of such corporation, or any member or
12partner of such partnership or association shall have been
13convicted or found guilty of a felony within a period of five
14years immediately preceding the date of application for the said
15license. The board may, in its discretion, refuse an application
16for an economic development license under section 461(b.1) or an
17application for an intermunicipal transfer or a license if the
18board receives a protest from the governing body of the
19receiving municipality. The receiving municipality of an
20intermunicipal transfer or an economic development license under
21section 461(b.1) may file a protest against the approval for
22issuance of a license for economic development or an
23intermunicipal transfer of a license into its municipality, and
24such municipality shall have standing in a hearing to present
25testimony in support of or against the issuance or transfer of a
26license. Upon any opening in any quota, an application for a new
27license shall only be filed with the board for a period of six
28months following said opening.

29* * *

30Section 21. Sections 436(e) and 437(e) of the act are

1amended to read:

2Section 436. Application for Distributors', Importing
3Distributors' and Retail Dispensers' Licenses.--* * *

4(e) That the applicant is not, or in case of a partnership
5or association, that the members or partners are not, and in the
6case of a corporation, that the officers and directors are not,
7in any manner pecuniarily interested, either directly or
8indirectly, in the profits of any other class of business
9regulated under this article, except as hereinafter permitted.
10The requirements of this section shall not prohibit a 
11distributor from holding an enhanced distributor license and a 
12wine and spirits retail license, or an importing distributor 
13from holding a wine and spirits wholesale license, under the 
14conditions provided under Article III-A.

15* * *

16Section 437. Prohibitions Against the Grant of Licenses.--*
17* *

18(e) No distributor's or importing distributor's license
19shall be issued for any premises in any part of which there is
20operated any retail license for the sale of liquor or malt or
21brewed beverages. The requirements of this section shall not 
22prohibit a distributor from holding an enhanced distributor 
23license and a wine and spirits retail license or an importing 
24distributor from holding a wine and spirits wholesale license, 
25under the conditions provided under Article III-A.

26* * *

27Section 22. Section 438 of the act, amended June 25, 2010
28(P.L.217, No.35), is amended to read:

29Section 438. Number and Kinds of Licenses Allowed Same
30Licensee.--(a) Any retail dispenser may be granted licenses to

1maintain, operate or conduct any number of places for the sale
2of malt or brewed beverages, but a separate license must be
3secured for each place where malt or brewed beverages are sold.

4(b) No person shall possess or be issued [more than one
5distributor's or importing distributor's license.] more than 
6sixty distributor licenses, nor shall any person possess or be 
7issued:

8(1) more than ten percent (10%) of the distributor licenses
9in any one county which has ten or more distributor licenses; or

10(2) more than one distributor license in any one county
11which has less than ten distributor licenses.

12(b.1) No person shall possess or be issued more than one
13importing distributor's license.

14(c) No person shall possess more than one class of license, 
15except that a holder of a retail dispenser's license may also be 
16a holder of a retail liquor license or a wine and spirits retail 
17license consistent with the restrictions contained in Article 
18III-A: Provided, however, That nothing contained in this section 
19shall be construed to prohibit a member of the governing board 
20of a public authority created under subdivision (n) of Article 
21XXIII of the act of August 9, 1955 (P.L.323, No.130), known as 
22"The County Code," from having an interest in a distributor or 
23importing distributor license notwithstanding the fact that the 
24public authority has an interest in one or more retail licenses 
25or acts as a landlord for one or more retail licenses: And, 
26provided further, That, notwithstanding any other provision of 
27this section, an entity may acquire both a manufacturer's 
28license or a limited winery license and a hotel, restaurant or 
29retail dispenser license for use at the same location and more 
30than one location may be so licensed. The licenses and a 

1person's interest in the licenses or in the entity holding the 
2licenses shall not be subject to this section.

3Section 23. Section 441 of the act, amended or added May 31,
41996 (P.L.312, No.49), December 20, 1996 (P.L.1513, No.196),
5June 18, 1998 (P.L.664, No.86), December 9, 2002 (P.L.1653,
6No.212), June 28, 2011 (P.L.55, No.11) and December 22, 2011
7(P.L.530, No.113), is amended to read:

8Section 441. Distributors' and Importing Distributors'
9Restrictions on Sales, Storage, Etc.--(a) No distributor or
10importing distributor shall purchase, receive or resell any malt
11or brewed beverages except:

12(1) in the original containers as prepared for the market by
13the manufacturer at the place of manufacture;

14(2) in the case of identical containers repackaged in the
15manner described by subsection (f); or

16(3) as provided in section 431(b).

17(b) No distributor or importing distributor, except for a 
18distributor that also holds an enhanced distributor license 
19under section 431.2, shall sell any malt or brewed beverages in
20quantities of less than a case or original containers containing
21one hundred twenty-eight ounces or more which may be sold
22separately: Provided, That no malt or brewed beverages sold or
23delivered shall be consumed upon the premises of the distributor
24or importing distributor, or in any place provided for such
25purpose by such distributor or importing distributor.
26Notwithstanding any other provision of this section or act, malt
27or brewed beverages which are part of a tasting conducted
28pursuant to the board's regulations may be consumed on licensed
29premises.

30(c) No distributor or importing distributor shall maintain

1or operate any place where sales are made other than that for
2which the license is granted.

3(d) (1) No distributor shall maintain any place for the
4storage of malt or brewed beverages except in the same
5municipality in which the licensed premises is located and
6unless the same has been approved by the board. In the event
7there is no place of cold storage in the same municipality, the
8board may approve a place of cold storage in the nearest
9municipality.

10(2) No importing distributor shall maintain any place for
11the storage of malt or brewed beverages except in the franchise
12territory in which the licensed premises is located and unless
13the same has been approved by the board. The board shall issue
14no more than one storage facility license to an importing
15distributor. The storage location shall be designated solely as
16a storage facility, from which only sales to other licensees are
17permitted. Retail sales may be made at the licensed location
18pursuant to subsection (c). If the importing distributor
19maintains a storage location for cold storage in the same
20municipality in which the importing distributor is licensed or a
21nearby municipality, the importing distributor may continue to
22maintain that cold storage location in addition to another
23storage location within their franchise territory.

24(e) No distributor or importing distributor shall purchase,
25sell, resell, receive or deliver any malt or brewed beverages,
26except in strict compliance with the provisions of subsection
27(b) of section 431 of this act.

28(f)(1) To salvage one or more salable cases from one or more
29damaged cases, cartons or packages of malt or brewed beverages,
30a distributor or importing distributor may repackage consequent

1to inadvertent damage and sell a case, carton or package of
2identical units of malt or brewed beverages.

3(2) Repackaging is permissible only to the extent made
4necessary by inadvertent damage. Repackaging not consequent to
5damage is prohibited.

6(3) The term "identical units" as used in this subsection
7means undamaged bottles or cans of identical brand, package and
8volume.

9(g) All malt or brewed beverages purchased by an importing
10distributor from a Pennsylvania manufacturer of malt or brewed
11beverages or from any person located outside this Commonwealth
12for resale shall be invoiced to the importing distributor, shall
13come physically into the possession of such importing
14distributor and shall be unloaded into and distributed from the
15licensed premises of such importing distributor. The board may
16act to further define and control the storage and distribution
17of malt or brewed beverages in conformity with this section and
18this act.

19(h) As used in this section, the term "franchise territory"
20shall mean the geographically contiguous area in which an
21importing distributor has been given rights for the sale or
22resale of malt or brewed beverages.

23(i) Notwithstanding any other provision to the contrary,
24when making a sale of malt or brewed beverages to a private
25individual, no distributor or importing distributor may be
26required to collect the name, address or any other identifying
27information of the private individual for the purpose of keeping
28a record of the quantity of cases or volume of malt or brewed
29beverages purchased.

30(j) No distributor shall engage in the sale of wine without

1first obtaining a wine and spirits retail license under Article
2III-A or an enhanced distributor license pursuant to section
3431.2. Sales of wine may only be made on premises licensed for
4the sale of malt or brewed beverages.

5Section 24. Section 442 of the act, amended or added
6December 9, 2002 (P.L.1653, No.212), December 16, 2002
7(P.L.1806, No.221), May 8, 2003 (P.L.1, No.1), July 17, 2003
8(P.L.63, No.15), November 29, 2006 (P.L.1421, No.155), June 28,
92011 (P.L.55, No.11), December 22, 2011 (P.L.530, No.113) and
10July 5, 2012 (P.L.1007, No.116), is amended to read:

11Section 442. Retail Dispensers' Restrictions on Purchases
12and Sales.--(a) (1) No retail dispenser shall purchase or 
13receive any malt or brewed beverages except in original 
14containers as prepared for the market by the manufacturer at the 
15place of manufacture. The retail dispenser may thereafter break 
16the bulk upon the licensed premises and sell or dispense the 
17same for consumption on or off the premises so licensed. No 
18retail dispenser may sell malt or brewed beverages for 
19consumption off the premises in quantities in excess of one 
20hundred ninety-two fluid ounces[.]; except that a retail 
21dispenser acquiring a thirty-pack permit issued by the board may 
22sell to a person a single package prepared for sale or 
23distribution of not more than thirty original containers and 
24totaling not less than three hundred sixty fluid ounces of malt 
25or brewed beverages. Sales may be made in open or closed 
26containers, Provided, however, That a municipality may adopt an 
27ordinance restricting open containers in public places. No club 
28licensee may sell any malt or brewed beverages for consumption 
29off the premises where sold or to persons not members of the 
30club.

1(2) Notwithstanding any other provision of law or any
2existing permit authorizing the sale of malt or brewed beverages
3for consumption off the premises, a retail dispenser licensee
4located in a city of the first class who is otherwise permitted
5to sell malt or brewed beverages for consumption off the
6premises may not do so after October 31, 2007, unless it
7acquires a permit from the board.

8(3) The application for a permit to sell malt or brewed
9beverages for consumption off the premises shall be on forms
10designated by the board and contain such information as the
11board may require. The application and renewal fee shall be as
12prescribed in section 614-A(28) of the act of April 9, 1929 
13(P.L.177, No.175), known as "The Administrative Code of 1929."
14However, no applicant who currently has a permit shall be
15required to pay any additional fees under section 614-A(28) of
16"The Administrative Code of 1929" in order to continue selling
17malt or brewed beverages for consumption off the premises at its
18currently licensed location for the licensing term beginning
19November 1, 2007, and ending October 31, 2008.

20(4) The application for a permit to sell malt or brewed
21beverages for consumption off the premises must be accompanied
22by a copy of the approval of such request by the hearing board
23authorized by this section.

24(5) A city of the first class shall create a hearing board
25within its Department of Licenses and Inspections to hear
26requests from licensees who are seeking a permit from the
27hearing board authorizing the licensee to sell malt or brewed
28beverages for consumption off the premises. Each hearing board
29shall consist of three persons appointed by the mayor of the
30city of the first class, who are subject to approval by the city

1council of the city of the first class. Each person so appointed
2shall serve at the pleasure of the appointing authority. The
3hearing board may, in its discretion, hold hearings to adduce
4testimony regarding a request. The hearing board must render a
5decision within ninety days of receipt of a request for approval
6of a permit to sell malt or brewed beverages for consumption off
7the premises. The hearing board must approve the request unless
8it finds that doing so would adversely affect the welfare,
9health, peace and morals of the city or its residents. A
10decision by the hearing board to deny a request may be appealed
11to the court of common pleas in the county in which the city is
12located. The failure to render a decision by the hearing board
13within the required time period shall be deemed approval of the
14permit.

15(6) Upon being satisfied that the applicant has fulfilled
16all the requirements of this act and the board's regulations,
17the board shall approve the application. Such permits shall
18expire upon the transfer of the license to a new entity or to a
19new location, or both; otherwise, such permits shall expire at
20the same time as the expiration of the underlying license.

21(b) No retail dispenser shall sell any malt or brewed
22beverages for consumption on the licensed premises except in a
23room or rooms or place on the licensed premises at all times
24accessible to the use and accommodation of the general public,
25but this section shall not be interpreted to prohibit a retail
26dispenser from selling malt or brewed beverages in a hotel or
27club house in any room of such hotel or club house occupied by a
28bona fide registered guest or member entitled to purchase the
29same or to prohibit a retail dispenser from selling malt or
30brewed beverages in a bowling alley where the licensed premises

1and bowling alley are immediately adjacent and under the same
2roof.

3(c) For the purpose of this section any person who is an
4active member of another club which is chartered by the same
5state or national organization shall have the same rights and
6privileges as members of the particular club.

7(d) For the purposes of this section, any person who is an
8active member of any volunteer firefighting company, association
9or group of this Commonwealth, whether incorporated or
10unincorporated, shall upon the approval of any club composed of
11volunteer firemen licensed under this act, have the same social
12rights and privileges as members of such licensed club.

13(e) (1) The holder of a retail dispenser license located in
14a hotel may allow persons to transport malt or brewed beverages
15from the licensed portion of the premises to the unlicensed
16portion of the premises so long as the malt or brewed beverages
17remain on the hotel property.

18(2) In addition, the holder of a retail dispenser license
19located on a golf course may allow its patrons to order malt or
20brewed beverages on licensed premises for subsequent delivery by
21the licensee on nonlicensed portions of the premises, including
22the golf course.

23(3) In addition, a holder of a restaurant or club license
24located on a golf course may sell, furnish or give liquor or
25malt or brewed beverages on the unlicensed portion of the golf
26course so long as the liquor or malt or brewed beverages remain
27on the restaurant, club or golf course.

28(4) The holder of a restaurant license located immediately
29adjacent to and under the same roof of a bowling center may
30allow persons to transport liquor or malt or brewed beverages

1from the licensed portion of the premises to the unlicensed
2portion of the premises so long as the liquor or malt or brewed
3beverages remain within the bowling center.

4(f) The holder of an eating place retail dispenser license 
5may obtain an off-premises catering permit under section 493(33) 
6to hold a catered function off of the licensed premises and on 
7otherwise unlicensed premises where the licensee may sell malt 
8or brewed beverages by the glass, open bottle or any other 
9container, together with food, for consumption on those premises 
10solely used for catering premises. Functions conducted under the 
11authority of the permit shall be subject to the following:

12(1) malt or brewed beverages may only be provided during the
13days and hours that the license holder may otherwise sell malt
14or brewed beverages;

15(2) each catered function shall last no longer than one day 
16and not more than fifty catered functions may be held each 
17calendar year by each license holder for use with a particular 
18license;

19(3) a catered function shall not be held at a location that
20is already subject to the applicant's or another licensee's
21license;

22(4) a permit shall not be issued to an applicant whose
23license is in safekeeping;

24(5) a permit shall not be issued to a location that is
25subject to a pending objection by the director of the Bureau of
26Licensing or the board under section 470(a.1);

27(6) a permit shall not be issued to a location that is
28subject to a pending license suspension under section 471 or the
29one-year prohibition on the issuance or transfer of a license
30under section 471(b);

1(7) no malt or brewed beverages may be taken from the
2permitted location by a patron, but the applicant may transport
3malt or brewed beverages to and from its licensed premises to
4the proposed premises;

5(8) written notice of the catered function as enumerated in
6paragraph (9) shall be provided to the local police and the
7enforcement bureau at least seven days in advance of the event;

8(9) written notice shall be provided to the board at least
9thirty days prior to a catered function. Written notice must
10include the location of the function, time of the function, host
11of the function, general information regarding the guests
12expected at the function as well as any information the board
13shall from time to time prescribe. The board may, in its
14discretion, accept notice in an electronic format. The board
15may, in its discretion, waive the thirty-day notice period for a
16catered function if:

17(i) the applicant has previously conducted functions that
18meet the requirements of this act;

19(ii) the applicant is a licensee in good standing with the
20board;

21(iii) notification was received at least fourteen days prior
22to the catered function; and

23(iv) the applicant pays a late fee of one hundred dollars
24($100);

25(10) the board shall, in its discretion, approve or
26disapprove a catered function if the applicant fails to provide
27timely notice of the catered function, does not intend to
28conduct a function that meets the requirements of this act or
29has previously conducted a function that did not meet the
30requirements of this act;

1(11) if a catered function is scheduled to occur on private
2property, the owner of that property is deemed to have submitted
3to the jurisdiction of the enforcement bureau, and the warrant
4required by section 211(a)(2) of this act shall not be necessary
5for the enforcement bureau to enter and search the premises
6during the function or any activities related to the function;

7(12) all servers at the off-premises catered function shall
8be in compliance with the responsible alcohol management
9provisions under section 471.1 of this act;

10(13) no catered function may be held for more than five
11hours per day and must end by midnight;

12(14) neither the owner of the property nor the applicant may
13sell tickets to a catered function unless one of the following
14conditions is met:

15(i) the applicant has contracted with an eligible entity for
16the function, and the function is being used to raise money for
17the eligible entity's organization;

18(ii) the applicant has contracted with a nonprofit
19organization as defined under section 501(c)(3) of the Internal
20Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)),
21for an event which has the sole purpose of raising funds for
22that nonprofit organization;

23(iii) the applicant has contracted with an organization that
24holds tax-exempt status under section 527 of the Internal
25Revenue Code of 1986;

26(15) catered functions held on unlicensed premises shall be
27subject to section 493(34) of this act;

28(16) catered functions may not be held in locations that are
29subject to a pending, protested transfer application;

30(17) a permit may not be issued to a licensee who is subject

1to objection under the board's nuisance bar program;

2(18) a permit shall not be issued to a licensee for use in
3any location that is mobile; and

4(19) a permit shall not be issued for use on any location
5used for parking at a sports event or concert event.

6(g) Notwithstanding any other provision of law or
7regulation, the holder of a retail dispenser license may hold
8happy hours up to four consecutive or nonconsecutive hours per
9day and up to fourteen hours per week during which the holder
10discounts the price of alcoholic beverages. No discounts may be
11given between the hours of midnight and the legal closing time.
12Notice of all happy hours shall be visibly posted on the
13licensed premises seven days prior to the happy hour. Except as
14provided in this subsection, a licensee shall comply with the
15provisions of 40 Pa. Code § 13.102 (relating to discount pricing
16practices). Events conducted under the authority of 40 Pa. Code
17§ 13.102(b) shall not be counted against the four-hours per day
18or fourteen-hours per week.

19Section 25. Section 443(b) of the act, amended May 31, 1996
20(P.L.312, No.49), is amended to read:

21Section 443. Interlocking Business Prohibited.--* * *

22(b) No distributor or importing distributor and no officer
23or director of any distributor or importing distributor shall at
24the same time be a manufacturer, a retail dispenser or a liquor
25licensee, or be an officer, director, stockholder or creditor of
26a manufacturer, a retail dispenser or a liquor licensee, or,
27directly or indirectly, own any stock of, or have any financial
28interest in, or be the owner, proprietor or lessor of, any place
29covered by any other malt or brewed beverage or liquor license.
30The requirements of this section or any other provision of law, 

1shall not prohibit the holder of a distributor license from 
2holding an enhanced distributor license issued pursuant to 
3section 431.2 and a wine and spirits retail license issued 
4pursuant to Article III-A, or an importing distributor from also 
5holding a wine and spirits wholesale license issued pursuant to 
6Article III-A.

7* * *

8Section 26. Section 446(a)(1) of the act, amended December
922, 2011 (P.L.530, No.113), is amended to read:

10Section 446. Breweries.--(a) Holders of a brewery license
11may:

12(1) Sell malt or brewed beverages produced and owned by the
13brewery under such conditions and regulations as the board may
14enforce, to individuals for consumption on the licensed premises
15in any container or package of any volume and to hotel,
16restaurant, club, big-box retail stores, grocery stores, 
17pharmacies, convenience stores and public service liquor
18licensees.

19* * *

20Section 27. Section 461(a) of the act, amended October 24,
212012 (P.L.1203, No.149), is amended to read:

22Section 461. Limiting Number of Retail Licenses To Be Issued
23In Each County.--(a) No additional restaurant, eating place
24retail dispenser or club licenses shall be issued within a
25county if the total number of restaurant and eating place retail
26dispenser licenses is greater than one license for each three
27thousand inhabitants in the county, except the board may issue
28licenses to public venues, performing arts facilities,
29continuing care retirement communities, airport restaurants,
30municipal golf courses, hotels, privately-owned private golf

1courses, privately-owned public golf courses, racetracks,
2automobile racetracks, nonprimary pari-mutuel wagering
3locations, privately-owned ski resorts, grocery stores, 
4convenience stores, big-box retail stores, pharmacies and to any
5other entity which this act specifically exempts from the
6limitations provided in this section, and the board may issue a
7license to a club situated in a borough having a population less
8than eight thousand inhabitants which is located in a county of
9the second class A whose application is filed on or before
10February 28, 2001. In addition, the board may issue an eating
11place retail dispenser license for on-premises sales only to the
12owner or operator of a facility having a minimum of a one-half
13mile asphalt track and having a permanent seating capacity of at
14least six thousand people used principally for holding
15automobile races, regardless of the number of restaurant and
16eating place retail dispenser licenses already issued in that
17county. When determining the number of restaurant and eating
18place retail dispenser licenses issued in a county for the
19purposes of this section, licenses exempted from this limitation
20and club licenses shall not be considered. Inhabitants of dry
21municipalities shall be considered when determining the
22population in a county. Licenses shall not be issued or
23transferred into municipalities where such licenses are
24prohibited pursuant to local referendum in accordance with
25section 472. Licenses approved for intermunicipal transfer may
26not be transferred from the receiving municipality for a period
27of five years after the date that the licensed premises are
28operational in the receiving municipality.

29* * *

30Section 28. Section 464 of the act, amended December 9, 2002

1(P.L.1653, No.212), is amended to read:

2Section 464. Hearings Upon Refusal of Licenses, Renewals or
3Transfers; Appeals.--The board may of its own motion, and shall
4upon the written request of any applicant for club, hotel or
5restaurant liquor license, or any applicant for any malt or
6brewed beverage license other than a public service license, or
7for renewal or transfer thereof, or for the renewal of an
8amusement permit, whose application for such license, renewal or
9transfer, or the renewal of an amusement permit, has been
10refused, fix a time and place for hearing of such application
11for license or for renewal or transfer thereof, or the renewal
12of an amusement permit, notice of which hearing shall be mailed
13to the applicant at the address given in his application. Such
14hearing shall be before a hearing examiner designated by the
15board. At such hearing, the board shall present its reasons for
16its refusal or withholding of license, renewal or transfer
17thereof, or its refusal for renewal of an amusement permit. The
18applicant may appear in person or by counsel, may cross-examine
19the witnesses for the board and may present evidence which shall
20likewise be subject to cross-examination by the board. Such
21hearing shall be stenographically recorded. The hearing examiner
22shall thereafter report, with the examiner's recommendation, to
23the board in each case. The board shall thereupon grant or
24refuse the license, renewal or transfer thereof or the renewal
25of an amusement permit. In considering the renewal of a license
26or amusement permit, the board shall not refuse any such renewal
27on the basis of the propriety of the original issuance or any
28prior renewal of such license or amusement permit. If the board
29shall refuse such license, renewal or transfer or the renewal of
30an amusement permit, following such hearing, notice in writing

1of such refusal shall be mailed to the applicant at the address
2given in his application. In all such cases, the board shall
3file of record at least a brief statement in the form of an
4opinion of the reasons for the ruling or order and furnish a
5copy thereof to the applicant. Any applicant who has appeared at
6any hearing, as above provided, who is aggrieved by the refusal
7of the board to issue any such license or to renew or transfer
8any such license or to issue or renew any amusement permit may
9appeal, or any church, hospital, charitable institution, school
10or public playground located within three hundred feet of the
11premises applied for, aggrieved by the action of the board in
12granting the issuance of any such license or the transfer of any
13such license, may take an appeal limited to the question of such
14grievance, within twenty days from date of refusal or grant, to
15the court of common pleas of the county in which the premises or
16permit applied for is located. If the application is for an
17economic development license under section 461(b.1) or the
18intermunicipal transfer of a license, the governing body of the
19municipality receiving the new license or the transferred
20license may file an appeal of the board decision granting the
21license, within twenty days of the date of the board's decision,
22to the court of common pleas of the county in which the proposed
23premises is located. Such appeal shall be upon petition of the
24aggrieved party, who shall serve a copy thereof upon the board,
25whereupon a hearing shall be held upon the petition by the court
26upon ten days' notice to the board. The said appeal shall, 
27except in cases involving the renewal of a license, act as a
28supersedeas unless upon sufficient cause shown the court shall
29determine otherwise. In cases involving the renewal of a 
30license, the court shall grant a supersedeas only upon 

1application and after a finding that the licensee will likely 
2prevail on the merits of the appeal. The court shall [hear the
3application de novo on questions of fact, administrative
4discretion and such other matters as are involved, at such time
5as it shall fix, of which notice shall be given to the board.
6The court shall either sustain or over-rule the action of the
7board and either order or deny the issuance of a new license or
8the renewal or transfer of the license or the renewal of an
9amusement permit to the applicant] affirm the board unless the 
10board's decision is an error of law, an abuse of discretion or 
11is not supported by substantial evidence.

12Section 29. Section 468(a) and (e) of the act, amended or
13added December 20, 2000 (P.L.992, No.141), February 21, 2002
14(P.L.103, No.10), June 28, 2011 (P.L.55, No.11) and December 22,
152011 (P.L.530, No.113), are amended to read:

16Section 468. Licenses Not Assignable; Transfers.--(a) (1)
17Licenses issued under this article may not be assigned. The 
18board, upon payment of the transfer filing fee, is hereby 
19authorized to transfer any license issued by it under the 
20provisions of this article from one person to another or from 
21one place to another, or both. Except for restaurant liquor and 
22eating place retail dispenser licenses transferred under section 
23461(b.4), if the license is a retail license, the new location 
24must be within the same county as the existing location or, if 
25the municipality is located in more than one county, within the 
26same municipality as the existing location.

27(2) In the case of distributor and importing distributor
28licenses, the board may transfer any such license from its place
29in a municipality to a place in any other municipality within
30the same county, or from one place to another place within the

1same municipality, or exchange a distributor license for an
2importing distributor license or an importing distributor
3license for a distributor license, if the building for which the
4license is to be issued has, in the case of an importing
5distributor license, an area under one roof of two thousand five
6hundred square feet and, in the case of a distributor license,
7an area under one roof of one thousand square feet: And
8provided, That, in the case of all transfers of distributor or
9importing distributor licenses, whether from a place within the
10same municipality to another place within the same municipality
11or from a place in a municipality to a place in any other
12municipality within the same county, and, in the case of an
13exchange of a distributor license for an importing distributor
14license or an importing distributor license for a distributor
15license, the premises to be affected by the transfer or exchange
16shall contain an office separate and apart from the remainder of
17the premises to be licensed for the purpose of keeping records,
18required by the board, adequate toilet facilities for employes
19of the licensee and an entrance on a public thoroughfare:
20Provided, however, That in the event that the majority of the
21voting electors of a municipality, at an election held under the
22provisions of any law so empowering them to do, shall vote
23against the issuance of distributor or importing distributor
24licenses in such municipality, the board is hereby authorized to
25transfer any such distributor or importing distributor license
26from its place in such municipality to a place in any other
27municipality within the same county, upon application prior to
28the expiration of any such license and upon payment of the
29transfer filing fee and the execution of a new bond; but no
30transfer shall be made to a person who would not have been

1eligible to receive the license originally nor for the
2transaction of business at a place for which the license could
3not lawfully have been issued originally, nor, except as herein
4provided, to a place as to which a license has been revoked.

5(3) [No license shall be transferred to any place or
6property upon which is located as a business the sale of liquid
7fuels and oil.] Except in cases of emergency such as death,
8serious illness, or circumstances beyond the control of the
9licensee, as the board may determine such circumstances to
10justify its action, transfers of licenses may be made only at
11times fixed by the board. In the case of the death of a
12licensee, the board may transfer the license to the surviving
13spouse or personal representative or to a person designated by
14him. From any refusal to grant a transfer or upon the grant of
15any transfer, the party aggrieved shall have the right of appeal
16to the proper court in the manner hereinbefore provided.

17(4) In the event the license to be transferred has been
18ordered to serve a suspension under section 471 and has not
19served the suspension at the time the board considers the
20application and all appeals regarding the suspension have been
21exhausted, the board may require the transferee to serve the
22suspension as a condition for approval of the transfer. Further,
23the board may convert the outstanding suspension into a fine and
24require the transferee to pay the fine as a condition for
25approval of the transfer. If the board converts the outstanding
26suspension to a fine, the fine need not comply with the minimum
27and maximum amounts set forth in section 471 for the underlying
28citation.

29* * *

30(e) Notwithstanding any other provision of law, the board

1may not approve an interior connection that is greater than ten
2feet wide between a licensed business and another business. This
3subsection shall not prohibit the board from approving a renewal
4application of a license, even if the licensed business has an
5interior connection that is greater than ten feet wide to an
6unlicensed business, if the board had approved the interior
7connection prior to the effective date of this subsection. This 
8subsection shall not apply to the holder of a grocery store, 
9big-box retail store, convenience store or pharmacy license.

10Section 30. Section 470(a) of the act, amended December 22,
112011 (P.L.530, No.113), is amended and the section is amended by
12adding subsections to read:

13Section 470. Renewal of Licenses; Temporary Provisions for
14Licensees in Armed Service.--(a) All applications for renewal 
15or validation of licenses under the provisions of this article 
16shall be filed with tax clearance from the Department of Revenue 
17and the Department of Labor and Industry and requisite license 
18and filing fees, including an application surcharge of seven 
19hundred dollars ($700), at least sixty days before the 
20expiration date of same: Provided, however, That, a licensee 
21that applies for a thirty-pack permit shall pay, with its 
22renewal or validation application, an application surcharge of 
23five thousand dollars ($5,000): And provided further, That the 
24board, in its discretion, may accept nunc pro tunc a renewal 
25application filed less than sixty days before the expiration 
26date of the license with the required fees, upon reasonable 
27cause shown and the payment of an additional filing fee of one 
28hundred dollars ($100.00) for late filing: And provided further, 
29That except where the failure to file a renewal application on 
30or before the expiration date has created a license quota 

1vacancy after said expiration date which has been filled by the 
2issuance of a new license, after such expiration date, but 
3before the board has received a renewal application nunc pro 
4tunc within the time prescribed herein the board, in its 
5discretion, may, after hearing, accept a renewal application 
6filed within two years after the expiration date of the license 
7with the required fees upon the payment of an additional filing 
8fee of two hundred fifty dollars ($250.00) for late filing. 
9Where any such renewal application is filed less than sixty days 
10before the expiration date, or subsequent to the expiration 
11date, no license shall issue upon the filing of the renewal 
12application until the matter is finally determined by the board 
13and if an appeal is taken from the board's action the courts 
14shall not order the issuance of the renewal license until final 
15determination of the matter by the courts. The board may enter 
16into an agreement with the applicant concerning additional 
17restrictions on the license in question. If the board and the 
18applicant enter into such an agreement, such agreement shall be 
19binding on the applicant. Failure by the applicant to adhere to 
20the agreement will be sufficient cause to form the basis for a 
21citation under section 471 and for the nonrenewal of the license 
22under this section. A renewal application will not be considered 
23filed unless accompanied by the requisite filing and license 
24fees and any additional filing fee required by this section. 
25Unless the board shall have given ten days' previous notice to 
26the applicant of objections to the renewal of his license, based 
27upon violation by the licensee or his servants, agents or 
28employes of any of the laws of the Commonwealth or regulations 
29of the board relating to the manufacture, transportation, use, 
30storage, importation, possession or sale of liquors, alcohol or 

1malt or brewed beverages, or the conduct of a licensed 
2establishment, or unless the applicant has by his own act become 
3a person of ill repute, or unless the premises do not meet the 
4requirements of this act or the regulations of the board, the 
5license of a licensee shall be renewed. Notwithstanding any 
6other provision of this act, a noise violation shall not be the 
7sole basis for objection by the board to the renewal of a 
8license unless the licensee has received six prior adjudicated 
9noise citations within a twenty-four-month period.

10* * *

11(d) If the renewal of the license is objected to because of 
12the reputation of the applicant or its shareholders, directors, 
13officers, association members, servants, agents or employes or 
14under subsection (a.1), the Director of the Bureau of Licensing 
15may, in the director's discretion, grant the applicant temporary 
16operating authority under certain terms the director deems 
17appropriate. The operating authority shall not exceed one 
18hundred twenty (120) calendar days.

19(e) If the renewal of the license is objected to because of
20the reputation of the applicant or its shareholders, directors,
21officers, association members, servants, agents or employes or
22under subsection (a.1), the board shall render a decision on the
23application within one hundred twenty (120) calendar days.

24Section 31. Section 471(b) and (e) of the act, amended or
25added July 6, 2005 (P.L.135, No.39) and April 13, 2006 (P.L.78,
26No.26), are amended and the section is amended by adding a
27subsection to read:

28Section 471. Revocation and Suspension of Licenses; Fines.--
29* * *

30(b) Hearing on such citations shall be held in the same

1manner as provided herein for hearings on applications for
2license. Upon such hearing, if satisfied that any such violation
3has occurred or for other sufficient cause, the administrative
4law judge shall immediately suspend or revoke the license, or
5impose a fine of not less than [fifty dollars ($50)] two hundred 
6fifty dollars ($250) nor more than [one thousand dollars
7($1,000)] five thousand dollars ($5,000), or both, notifying the
8licensee by registered letter addressed to his licensed
9premises. If the licensee has been cited and found to have
10violated section 493(1) insofar as it relates to sales to minors
11or sales to a visibly intoxicated person, section 493(10)
12insofar as it relates to lewd, immoral or improper entertainment
13or section 493(14), (16) or (21), or has been found to be a
14public nuisance pursuant to section 611, or if the owner or
15operator of the licensed premises or any authorized agent of the
16owner or operator has been convicted of any violation of the act
17of April 14, 1972 (P.L.233, No.64), known as "The Controlled
18Substance, Drug, Device and Cosmetic Act," or of 18 Pa.C.S. § 
195902 (relating to prostitution and related offenses) or 6301
20(relating to corruption of minors), at or relating to the
21licensed premises, the administrative law judge shall
22immediately suspend or revoke the license, or impose a fine of
23not less than [one thousand dollars ($1,000)] five thousand 
24dollars ($5,000) nor more than [five thousand dollars ($5,000)] 
25ten thousand dollars ($10,000), or both. However, if a licensee
26has been cited and found to have violated section 493(1) as it
27relates to sales to minors or sales to a visibly intoxicated
28person but at the time of the sale the licensee was in
29compliance with the requirements set forth in section 471.1 and
30the licensee had not sold to minors or visibly intoxicated

1persons in the previous four years, then the administrative law
2judge shall immediately suspend or revoke the license, or impose
3a fine of not less than [fifty dollars ($50)] one thousand 
4dollars ($1,000) nor more than [one thousand dollars ($1,000)] 
5five thousand dollars ($5,000), or both. The administrative law
6judge shall notify the licensee by registered mail, addressed to
7the licensed premises, of such suspension, revocation or fine.
8In the event the fine is not paid within twenty days of the
9adjudication, the administrative law judge shall suspend or
10revoke the license, notifying the licensee by registered mail
11addressed to the licensed premises. Suspensions and revocations
12shall not go into effect until thirty days have elapsed from the
13date of the adjudication during which time the licensee may take
14an appeal as provided for in this act, except that revocations
15mandated in section 481(c) shall go into effect immediately. Any
16licensee whose license is revoked shall be ineligible to have a
17license under this act until the expiration of three years from
18the date such license was revoked. In the event a license is
19revoked, no license shall be granted for the premises or
20transferred to the premises in which the said license was
21conducted for a period of at least one year after the date of
22the revocation of the license conducted in the said premises,
23except in cases where the licensee or a member of his immediate
24family is not the owner of the premises, in which case the board
25may, in its discretion, issue or transfer a license within the
26said year. In the event the bureau or the person who was fined
27or whose license was suspended or revoked shall feel aggrieved
28by the adjudication of the administrative law judge, there shall
29be a right to appeal to the board. The appeal shall be based
30solely on the record before the administrative law judge. The

1board shall only reverse the decision of the administrative law
2judge if the administrative law judge committed an error of law,
3abused its discretion or if its decision is not based on
4substantial evidence. In the event the bureau or the person who
5was fined or whose license was suspended or revoked shall feel
6aggrieved by the decision of the board, there shall be a right
7to appeal to the court of common pleas [in the same manner as
8herein provided for appeals from refusals to grant licenses.
9Each of the appeals shall] which shall affirm the board unless 
10the board's decision is an error of law, an abuse of discretion 
11or not supported by substantial evidence. An appeal by a 
12licensee to the board or the court of common pleas shall not act
13as a supersedeas [unless, upon sufficient cause shown, the] and 
14a reviewing authority shall [determine otherwise; however, if
15the licensee has been cited and found to have violated section
16493(1) insofar as it relates to sales to minors or sales to a
17visibly intoxicated person, section 493(10) insofar as it
18relates to lewd, immoral or improper entertainment or section
19493(14), (16) or (21), or has been found to be a public nuisance
20pursuant to section 611, or if the owner or operator of the
21licensed premises or any authorized agent of the owner or
22operator has been convicted of any violation of "The Controlled
23Substance, Drug, Device and Cosmetic Act," or of 18 Pa.C.S. § 
245902 or 6301, at or relating to the licensed premises, or if the
25license has been revoked under section 481(c), its appeal shall
26not act as a supersedeas unless the reviewing authority
27determines otherwise upon sufficient cause shown. In any hearing
28on an application for a supersedeas under this section, the
29reviewing authority may consider, in addition to other relevant
30evidence, documentary evidence, including records of the bureau,

1showing the prior history of citations, fines, suspensions or
2revocations against the licensee; and the reviewing authority
3may also consider, in addition to other relevant evidence,
4evidence of any recurrence of the unlawful activity occurring
5between the date of the citation which is the subject of the
6appeal and the date of the hearing. If the reviewing authority
7is the board, no hearing shall be held on the application for a
8supersedeas; however, a decision shall be made based on the
9application, answer and documentary evidence under this
10subsection. If the application for a supersedeas is for a
11license that has been revoked under section 481(c), the
12reviewing authority shall grant the supersedeas only if it finds
13that the licensee will likely prevail on the merits. No penalty
14provided by this section shall be imposed for any violations
15provided for in this act unless the bureau notifies the licensee
16of its nature within thirty days of the completion of the
17investigation.] grant a supersedeas only upon application and 
18after a finding that the licensee will likely prevail on the 
19merits of the appeal. An appeal by the bureau shall act as an 
20automatic supersedeas.

21* * *

22(e) If a licensee has been cited and found to have violated
23section 493(1) for a second or subsequent offense as it relates
24to sales to minors or sales to a visibly intoxicated person, the
25administrative law judge, in addition to the penalties set forth
26in subsection (b), shall impose a suspension of at least two 
27consecutive weekend days when the offense is a second offense or 
28two consecutive Saturdays of operation if the licensee does not 
29hold a Sunday sales permit, and a suspension of at least seven 
30consecutive days of operation when the offense is a third or 

1subsequent offense. The mandatory suspension provision shall not 
2apply to licensees which also hold a license issued by the 
3Pennsylvania Gaming Control Board for the use of their premises. 
4Further, the administrative law judge may, in such instances,
5require the licensee to comply with the requirements set forth
6in section 471.1 pertaining to responsible alcohol management.
7Such compliance may be required for a period of up to one year.
8Failure to adhere with such an order is sufficient cause for the
9issuance of a citation under subsection (a).

10* * *

11(g) All fines and proceeds derived from the conversion of a
12suspension to a fine received by the administrative law judge
13shall be remitted to the enforcement bureau for continued
14enforcement efforts.

15Section 32. Sections 472(a) and 488 of the act, amended or
16added February 21, 2002 (P.L.103, No.10), are amended to read:

17Section 472. Local Option.--(a) In any municipality or any
18part of a municipality where such municipality is split so that
19each part thereof is separated by another municipality, an
20election may be held, subject to subsection (c), on the date of
21the primary election immediately preceding any municipal
22election, but not oftener than once in four years, to determine
23the will of the electors with respect to the granting of liquor
24licenses to hotels, restaurants, resort facilities and clubs,
25not oftener than once in four years, to determine the will of
26the electors with respect to the granting of liquor licenses to
27public venues, to performing arts facilities, to continuing care
28retirement communities, to hotels located on property owned by
29an accredited college or university, to privately-owned private
30golf courses or to privately-owned public golf courses, not

1oftener than once in four years, to determine the will of the
2electors with respect to the granting of licenses to retail
3dispensers of malt and brewed beverages, not oftener than once
4in four years, to determine the will of the electors with
5respect to granting of licenses to wholesale distributors and
6importing distributors, not more than once in two years, to
7determine the will of the electors with respect to the granting
8of club liquor licenses or club retail dispenser licenses to
9incorporated units of national veterans' organizations, not
10oftener than once in two years to determine the will of the
11electors with respect to the granting of special occasion
12permits to qualified organizations, not more than once in two 
13years, to determine the will of the electors with respect to 
14granting of licenses to big-box retail stores, grocery stores, 
15convenience stores and pharmacies, or not more than once in four
16years, to determine the will of the electors with respect to the
17establishment[, operation and maintenance by the board of
18Pennsylvania liquor stores] of wine and spirits retail 
19licensees, within the limits of such municipality or part of a
20split municipality, under the provisions of this act: Provided,
21however, Where an election shall have been held at the primary
22preceding a municipal election in any year, another election may
23be held under the provisions of this act at the primary
24occurring the fourth year after such prior election: And
25provided further, That an election on the question of
26establishing and operating a State liquor store shall be
27initiated only in those municipalities, or that part of a split
28municipality that shall have voted against the granting of
29liquor licenses; and that an election on the question of
30granting wholesale distributor and importing distributor

1licenses shall be initiated only in those municipalities or
2parts of split municipalities that shall have at a previous
3election voted against the granting of dispenser's licenses.
4Whenever electors equal to at least twenty-five per centum of
5the highest vote cast for any office in the municipality or part
6of a split municipality at the last preceding general election
7shall file a petition with the county board of elections of the
8county for a referendum on the question of granting any of said
9classes of licenses [or the establishment of Pennsylvania liquor
10stores], the said county board of elections shall cause a
11question to be placed on the ballots or on the voting machine
12board and submitted at the primary immediately preceding the
13municipal election. Separate petitions must be filed for each
14question to be voted on. Said proceedings shall be in the manner
15and subject to the provisions of the election laws which relate
16to the signing, filing and adjudication of nomination petitions,
17insofar as such provisions are applicable.

18When the question is in respect to the granting of liquor
19licenses, it shall be in the following form:

20Do you favor the granting of liquor licenses for the
21sale of liquor in.......................................
22of.....................................................?

Yes

No

23When the question is in respect to the granting of liquor
24licenses to resort facilities in those municipalities that do
25not already allow the retail sale of liquor, it shall be in the
26following form:

27Do you favor the granting of liquor licenses to resort
28facilities for the sale of liquor in the................
29of.....................................................?

Yes

No

30When the question is in respect to the granting of restaurant

1liquor licenses for use at public venues in those municipalities
2that do not already allow the retail sale of liquor, it shall be
3in the following form:

4Do you favor the granting of liquor licenses to public
5venues for the sale of liquor in the....................
6of.....................................................?

Yes

No

7When the question is in respect to the granting of restaurant
8liquor licenses for use at performing arts facilities in those
9municipalities that do not already allow the retail sale of
10alcohol, it shall be in the following form:

11Do you favor the granting of liquor licenses to
12performing arts facilities for the sale of liquor in
13the.....................................................
14of.....................................................?

Yes

No

15When the question is in respect to the granting of liquor
16licenses for hotels located on property owned by an accredited
17college or university in those municipalities that do not
18already allow the granting of liquor licenses, it shall be in
19the following form:

20Do you favor the granting of liquor licenses to hotels
21on property owned by an accredited college or university
22in the..................................................
23of.....................................................?

Yes

No

24When the question is in respect to the granting of liquor
25licenses, for privately-owned private golf courses, it shall be
26in the following form:

27Do you favor the granting of liquor licenses for
28privately-owned private golf courses for the sale of
29liquor in....................by.........................
30of.....................................................?

Yes

No

1When the question is in respect to the granting of liquor
2licenses, for privately-owned public golf courses, it shall be
3in the following form:

4Do you favor the granting of liquor licenses for
5privately-owned public golf courses for the sale of
6liquor in....................by.........................
7of.....................................................?

Yes

No

8When the question is in respect to the granting of liquor
9licenses to continuing care retirement communities in those
10municipalities that have not already approved the granting of
11liquor licenses, it shall be in the following form:

12Do you favor the granting of liquor licenses for
13continuing care retirement communities
14in...........................by.........................
15of.....................................................?

Yes

No

16When the question is in respect to the granting of licenses
17to retail dispensers of malt and brewed beverages, it shall be
18in the following form:

19Do you favor the granting of malt and brewed beverage

 

20retail dispenser licenses for consumption on premises
21where sold in the.......................................
22of.....................................................?

Yes

No

23When the question is in respect to the granting of big-box
24retail store licenses for the sale of wine and malt or brewed
25beverages for consumption off the premises, it shall be in the
26following form:

27Do you favor the granting of licenses for big-box
28retail stores for the sale of wine and malt or brewed
29beverages for consumption off the premises
30in.........................by..........................

 

1of....................................................?

 

 

 

Yes




No

2When the question is in respect to the granting of grocery
3store licenses for the sale of wine and malt or brewed beverages
4for consumption off the premises, it shall be in the following
5form:

6Do you favor the granting of licenses for grocery stores
7for the sale of wine and malt or brewed beverages for
8consumption off the premises
9in.........................by...........................
10of.....................................................?

 

 

 

Yes

No

11When the question is in respect to the granting of pharmacy
12licenses for the sale of wine and malt or brewed beverages for
13consumption off the premises, it shall be in the following form:

14Do you favor the granting of licenses for grocery stores
15for the sale of wine and malt or brewed beverages for
16consumption off the premises
17in.........................by...........................
18of.....................................................?

 

 

 

Yes

No

19When the question is in respect to the granting of
20convenience store licenses for the sale of malt or brewed
21beverages for consumption off the premises, it shall be in the
22following form:

23Do you favor the granting of licenses for convenience
24stores for the sale of malt or brewed beverages for
25consumption off the premises
26in.........................by...........................
27of.....................................................?

 

 

 

Yes

No

28When the question is in respect to the granting of licenses
29to wholesale distributors of malt or brewed beverages and
30importing distributors, it shall be in the following form:

1Do you favor the granting of malt and brewed beverage
2wholesale distributor's and importing distributor's
3licenses not for consumption on premises where sold in
4the.....................................................
5of.....................................................?

 

 

 

Yes

No

6When the question is in respect to the granting of club
7liquor licenses to incorporated units of national veterans'
8organizations, it shall be in the following form:

9Do you favor the granting of club liquor licenses to
10incorporated units of national veterans' organizations
11in the..................................................
12of.....................................................?

Yes

No

13When the question is in respect to the granting of club
14retail dispenser licenses to incorporated units of national
15veterans' organizations, it shall be in the following form:

16Do you favor the granting of club retail dispenser
17licenses to incorporated units of national veterans'
18organizations in the....................................
19of.....................................................?

Yes

No

20When the question is in respect to the granting of special
21occasion permits allowing the sale of liquor by qualified
22organizations in municipalities that do not already allow the
23retail sale of liquor, it shall be in the following form:

24Do you favor the granting of special occasion permits to
25allow the sale of liquor by qualified organizations in
26the.....................................................
27of.....................................................?

Yes

No

28When the question is in respect to the granting of special
29occasion permits allowing the sale of malt or brewed beverages
30only by qualified organizations in municipalities that do not

1already allow the retail sale of malt or brewed beverages, it
2shall be in the following form:

3Do you favor the granting of special occasion permits to
4allow the sale of malt or brewed beverages only by
5qualified organizations in the..........................
6of.....................................................?

Yes

No

7When the question is in respect to the [establishment,
8operation and maintenance of Pennsylvania liquor stores] 
9granting of licenses to wine and spirits retail operators for 
10the sale of liquor for consumption off the premises, it shall be
11in the following form:

12Do you favor the [establishment, operation and
13maintenance of Pennsylvania liquor stores] granting of 
14wine and spirits retail licenses for the sale of liquor 
15for consumption off the premises in
16the.....................................................
17of.....................................................?

Yes

No

18In case of a tie vote, the status quo shall obtain. If a
19majority of the voting electors on any such question vote "yes,"
20then liquor licenses shall be granted by the board to hotels,
21restaurants, resort facilities and clubs, or liquor licenses
22shall be granted by the board to public venues, to performing
23arts facilities, to continuing care retirement communities, to
24hotels located on property owned by an accredited college or
25university, to privately-owned private golf courses or to
26privately-owned public golf courses, or malt and brewed beverage
27retail dispenser licenses or wholesale distributor's and
28importing distributor's license for the sale of malt or brewed
29beverages shall be granted by the board, or club liquor licenses
30or club retail dispenser licenses shall be granted by the board

1to incorporated units of national veterans' organizations, or
2special occasion permits may be issued to qualified
3organizations, or [the board may establish, operate and maintain
4Pennsylvania liquor stores] licenses to qualifying big-box 
5retail stores, grocery stores, pharmacies or convenience stores, 
6or to wine and spirits retail licensees, as the case may be, in
7such municipality or part of a split municipality, as provided
8by this act; but if a majority of the electors voting on any
9such question vote "no," then the board shall have no power to
10grant or to renew upon their expiration any licenses of the
11class so voted upon in such municipality or part of a split
12municipality[; or if the negative vote is on the question in
13respect to the establishment, operation and maintenance of
14Pennsylvania liquor stores, the board shall not open and operate
15a Pennsylvania liquor store in such municipality or part of a
16split municipality, nor continue to operate a then existing
17Pennsylvania liquor store in the municipality or part of a split
18municipality for more than two years thereafter or after the
19expiration of the term of the lease on the premises occupied by
20such store, whichever period is less, unless and until at a
21later election a majority of the voting electors vote "yes" on
22such question].

23* * *

24Section 488. Shipment of Wine into Commonwealth.--(a) The
25shipment of wine from [out-of-State] a direct wine shipper to
26residents of this Commonwealth is prohibited, except as
27otherwise provided for in this section.

28(b) Notwithstanding any other provision of this act or law
29to the contrary, a person licensed by the board or by another
30state as a producer[, supplier, importer, wholesaler,

1distributor or retailer] of wine and who obtains a direct wine
2shipper license as provided for in this section may ship up to
3[nine] eighteen liters per month of any wine [not included on
4the list provided for in subsection (c)] on the [Internet] order
5of any resident of this Commonwealth who is at least twenty-one
6(21) years of age for such resident's personal use and not for
7resale.

8(c) [Each month, the board shall publish on the Internet a
9list of all classes, varieties and brands of wine available for
10sale in the Pennsylvania Liquor Stores. A person holding a
11direct shipper license may ship only those classes, varieties
12and brands of wine not included on the list at the time an
13Internet order is placed] Reserved.

14(d) [An out-of-State] A direct wine shipper shall:

15(1) [Not ship more than nine liters per month on the
16Internet order of any person in this Commonwealth.] File a 
17written application with the board in such form and containing 
18such information as the board shall require. A completed 
19application shall contain a true and correct copy of the 
20applicant's current license or certificate of operating 
21authority issued by the board or by another state. The applicant 
22must provide documentation that it has obtained a sales tax 
23license from the Department of Revenue. The licensing period for 
24the license shall be established under section 402. An applicant 
25for the license shall adhere to the provisions of section 477. 
26The application, renewal and filing fee for the license shall be 
27as prescribed by the board to cover administrative costs in 
28processing the applications, however, if an applicant, at the 
29time of the initial application for the license, holds a valid 
30limited winery license issued by the board, the applicant shall 

1be exempt from paying the application fee prescribed by the 
2board. If the applicant properly renews its limited winery 
3license, as provided for in section 517, the applicant shall not 
4be required to pay the renewal fee prescribed by the board.

5(2) Report to the board each [year] month the total [of]
6number of bottles sold and shipped during the preceding calendar 
7month, the size of those bottles, the name brand of each wine in 
8the shipments, the quantities of each wine included in the 
9shipments and the price of each item included in the shipments, 
10for all such wine shipped within and into this Commonwealth in
11the preceding calendar [year] month.

12(3) Permit the board, the enforcement bureau or the
13Secretary of Revenue, or their designated representatives, to
14perform an audit of the [out-of-State] direct wine shipper's
15records upon request.

16(4) Be deemed to have submitted to the jurisdiction of the
17board, any other State agency and the courts of this
18Commonwealth for purposes of enforcement of this section and any
19related laws, rules or regulations, including the collection and 
20remission of taxes as required under this section.

21(e) A direct wine shipper [may ship wine on the Internet
22order of a resident into this Commonwealth provided that the
23wine is shipped to a Pennsylvania Liquor Store selected by the
24resident. The wine will be subject to taxes in the same manner
25as wine sold directly by the board.] shall collect and pay to 
26the Department of Revenue all taxes due on sales to residents of 
27this Commonwealth. The amount of taxes shall be calculated as if 
28the sales were made in this Commonwealth at the locations where 
29delivery is made. The wine will not be released by the [State
30store] direct wine shipper until all moneys due, including all

1taxes [and fees], have been paid by the resident.

2(f) [A person shall sign an affidavit provided by the
3Pennsylvania Liquor Store where the wine was delivered to
4stating that the wine will only be used for the person's
5personal use.] A direct wine shipper may ship wine pursuant to 
6this section only if the resident placing the order has provided 
7the shipper with a written or electronic acknowledgment that the 
8wine is for personal consumption only and not for resale. Any
9person who resells wine obtained under this section commits a
10misdemeanor of the second degree. A direct wine shipper shall:

11(1) Ensure that all containers of wine shipped directly to a
12resident of this Commonwealth are conspicuously labeled with the
13words "CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE TWENTY-ONE (21)
14OR OLDER REQUIRED FOR DELIVERY."

15(2) Ensure that shipments shall be delivered by an entity
16holding a valid transporter-for-hire license issued by the board
17and that the transporter-for-hire may not deliver any wine
18unless it does all of the following:

19(i) Obtains the signature of the recipient of the wine upon
20delivery.

21(ii) Verifies by inspecting a valid form of photo
22identification, as provided for in section 495(a), that the
23recipient is at least twenty-one (21) years of age.

24(iii) Determines that the recipient is not visibly
25intoxicated at the time of delivery.

26(g) The board may promulgate such rules and regulations as
27are necessary to implement and enforce the pr