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 

1and brewed beverages licenses; in licensing, providing for 
2enhanced distributors licenses; in licensing, further 
3providing for license applications, for license restrictions, 
4for sales, storage and purchase restrictions, for 
5interlocking business, for breweries, for county limitations, 
6for administrative proceedings, for assignability, for 
7renewal and temporary provisions, for sanctions, for local 
8option, for shipment into Commonwealth, for unlawful acts and
9for hours of operation; in licensing, providing for unlawful 
10acts; in licensing, further providing for penalties and for 
11vacation of premises; in distilleries, wineries, bonded 
12warehouses, bailees and transporters, further providing for 
13limited wineries, for distilleries and for license fees; 
14providing for emergency State tax; and making a related 
15repeal. in preliminary provisions, further providing for<- 
16definitions and<- for interpretation; in the Pennsylvania 
17Liquor Control Board, further providing for general powers, 
18providing for fee adjustment by regulation and further 
19providing for subject of regulations and for wine and spirits 
20marketing; in Pennsylvania Liquor Stores, further providing 
21for establishment and for sales; providing for wine and 
22spirits distribution; in licensing, providing for issuance of 
23wine and spirits retail licenses, fees, taxes, for 
24postqualification of selected applicants and for wine and 
25spirits retail licensee statement of conditions, further 
26providing for authority, for issuance, for transfer or 
27extension, for fees, for sales and restrictions, for wine 
28auction permits and for importers' licenses; in licensing, 
29providing for grocery store licenses, convenience store 
30licenses; in licensing, further providing for malt and brewed 
31beverages licenses; and further providing for distributor 
32package reform permit, providing for authority to issue 
33liquor licenses to grocery stores, for applications for 
34grocery store retail license, for issuance or transfer of 
35grocery store liquor licenses; providing for sales by liquor 
36licensees and restrictions; further providing for sales by 
37grocery store retail licensees and restriction; in licensing, 
38providing for enhanced distributors licenses; in licensing, 
39further providing for license applications, for license 
40restrictions, for sales, storage and purchase restrictions, 
41for interlocking business, for breweries, for county 
42limitations, for administrative proceedings, for 
43assignability, for renewal and temporary provisions, for 
44sanctions, for local option, for responsible alcohol 
45management, for for unlawful acts and for hours of operation; 
46in licensing, providing for unlawful acts; in licensing, 
47further providing for penalties and for vacation of premises; 
48in distilleries, wineries, bonded warehouses, bailees and 
49transporters, further providing for limited wineries, for 
50distilleries and for license fees; providing for emergency 
51State tax; and making a related repeal.

52The General Assembly of the Commonwealth of Pennsylvania
53hereby enacts as follows:

54Section 1. Section 102 of the act of April 12, 1951 (P.L.90,
55No.21), known as the Liquor Code, reenacted and amended June 29,

11987 (P.L.32, No.14), is amended by adding definitions to read:

2Section 102. Definitions.--The following words or phrases,
3unless the context clearly indicates otherwise, shall have the
4meanings ascribed to them in this section:

5"Affiliate" or "person affiliated with" shall mean a person
6that directly or indirectly, through one or more intermediaries,
7controls, is controlled by or is under common control with a
8specified person.

9* * *

10"Bid-rigging" shall mean the concerted activity of two or<-
11more persons to determine in advance or attempt to influence the
12selected bidder for a wine and spirits retail license. The term
13includes any of the following:

14(1) Conspiring or cooperating in the preparation of bids,
15including the determination of bid amounts.

16(2) Submitting prearranged bids, agreed-upon higher or lower
17bids or other complementary bids.

18(3) Agreeing to submit identical bids.

19(4) Agreeing to coordinate the retail zones in which a
20person will or will not submit a bid.

21(5) Agreeing to share profits with or give an equity
22interest to a person who does not submit the high bid.

23(6) Agreeing to set up territories to restrict competition.

24(7) Agreeing not to submit a bid.

25"Big-box retail store" shall mean a reputable place operated
26by persons of good repute, which sells a wide variety of
27merchandise, including automotive supplies, housewares,
28electronics, home furnishings, apparel, health and beauty
29supplies and perishable and non-perishable food items, in bulk
30and/or individual quantities, and which has an area under one

1roof of one hundred thousand (100,000) square feet or more.

2"Blended brand valuation" shall mean, for any particular
3brand of liquor, the sum of the wholesale profit margin on each
4product of a brand.

5* * *

6"Brand of liquor" shall mean a liquor product or series of
7liquor products produced by a single manufacturer.

8* * *

9"Change in control" shall mean, for purposes of wholesale or
10retail licensees as defined in this section, the acquisition by
11a person or group of persons acting in concert of more than
12twenty per centum of a licensee's securities or other ownership
13interests, with the exception of any ownership interest of the
14person that existed at the time of initial licensing, or more
15than twenty per centum of the securities or other ownership
16interests of a corporation or other legal entity which owns,
17directly or indirectly, at least twenty per centum of the
18securities or other ownership interests of the licensee.

19* * *

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

21* * *

22"Controlling interest" shall mean as follows:

23(1) For a publicly traded legal entity, an interest in a
24legal entity, applicant or licensee whereby a person's sole
25voting rights under State law or corporate articles or bylaws
26entitles the person to elect or appoint one or more of the
27members of the board of directors or other governing board or
28the ownership, directly or indirectly, of five per centum or
29more of the securities of the publicly traded corporation.

30(2) For a privately held corporation, partnership, limited

1liability company or other form of privately held legal entity,
2the holding of any securities in the legal entity.

3"Convenience store" shall mean a reputable place operated by<-
4persons of good repute which primarily sells food prepared for
5consumption on and off the premises, and non-food items, and may
6sell liquid fuels for use in motor vehicles, having an area
7under one roof of more than one thousand (1,000) square feet but
8less than ten thousand (10,000) square feet.

9* * *

10"Department" shall mean the Department of General Services of
11the Commonwealth.

12* * *

13"Displaced employe" shall mean a salaried employe of the
14board whose employment is terminated as a sole and direct result
15of the implementation of Article III-A. The term shall not
16include a person who is terminated for cause or who retires or
17resigns, is furloughed or is otherwise separated from employment
18for any other reason. The term excludes intermittent liquor
19store clerks and seasonal liquor store clerks.

20* * *

21"Grocery store" shall mean a reputable place operated by
22persons of good repute, which primarily sells food, supplies for
23the table and food products for human consumption off the
24premises and which has an area under one roof of ten thousand
25(10,000) square feet or more.

26"Growler" shall mean a refillable glass container that holds<-
27a minimum of sixty-four fluid ounces for malt or brewed
28beverages.

29* * *

30"Heritage State Stores" shall mean the number of State

1stores, as determined by the board, located in any given county
2as of the effective date of this definition.

3* * *

4"Institution of higher education" shall mean a public or
5private institution within this Commonwealth authorized by the
6Department of Education to grant a certificate, associate degree
7or higher degree. The term includes a branch or satellite campus
8of the institution.

9* * *<-

10"Pharmacy" shall mean any place having an area under one roof 
11of at least 8,000 square feet or more that is properly issued a 
12permit or license by the Pennsylvania State Board of Pharmacy 
13where drugs, devices and diagnostic agents for human or animal 
14consumption are stored, dispensed or compounded, excluding 
15offices or facilities of veterinarians licensed by the State 
16Board of Veterinary Medical Examiners. The term shall not 
17include the operations of a manufacturer or distributor as 
18defined in the act of April 14, 1972 (P.L.233, No.64), known as 
19"The Controlled Substance, Drug, Device and Cosmetic Act." The 
20term does not include an organized pharmacy service in an 
21institution under the direct supervision of a licensed 
22pharmacist.

23* * *

24"Retail licensee" shall mean a person that holds a wine and
25spirits retail license issued pursuant to section 311-A.

26* * *

27"Variable pricing" shall mean, for purposes of the wholesale
28sale of liquor, any disparity in the price of an item sold to
29one licensee as compared to the price of the same item to
30another licensee or a licensee of a different classification.

1The term shall not include discounts for volume purchases.

2* * *

3"Wholesale acquisition factor" shall mean a factor of 2.5
4applied to the wholesale profit margin of a brand of liquor in
5determining a wholesale license fee.

6"Wholesale licensee" shall mean a person that holds a wine
7and spirits wholesale license issued pursuant to section
8321.1-A.

9"Wholesale profit margin" shall mean, for any particular
10liquor product, twenty per centum of the total of costs of goods
11sold of the product in the Commonwealth over the most recent 12-
12month period for which information is available.

13* * *

14"Wine and spirits retail license" shall mean a license issued
15by the department or the board authorizing a person to sell and
16distribute wine and spirits to the public for off the premises
17consumption.

18"Wine and spirits wholesale license" shall mean a license
19issued by the department or the board authorizing a person to
20sell and distribute liquor on a wholesale basis to retail
21licensees and other licensees under this act.

22* * *

23Section 2. Section 104(c) and (d) of the act, amended
24December 7, 1990 (P.L.622, No.160) and December 20, 1996
25(P.L.1513, No.196), is amended to read:

26Section 104. Interpretation of Act.--* * *

27(c) Except as otherwise expressly provided, the purpose of
28this act is to prohibit the manufacture of and transactions in
29liquor, alcohol and malt or brewed beverages which take place in
30this Commonwealth, except by and under the [control] regulatory 

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

17(d) The provisions of this act are intended to create a
18system for distribution [that shall include the fixing of prices 
19for] of liquor and alcohol and controls placed on [prices for]
20the sale and distribution of malt and brewed beverages, and each
21of which shall be construed as integral to the preservation of
22the system, without which system the Commonwealth's control of
23the sale of liquor and alcohol and malt and brewed beverages and
24the Commonwealth's promotion of its policy of temperance and
25responsible conduct with respect to alcoholic beverages would
26not be possible.

27* * *

28Section 3. Section 207 of the act, amended February 21, 2002
29(P.L.103, No.10), November 30, 2004 (P.L.1727, No.221) and
30December 8, 2004 (P.L.1810, No.239), is amended to read:

1Section 207. General Powers of Board.--Under this act, the
2board shall have the power and its duty shall be:

3(a) To buy, import or have in its possession for sale and
4sell liquor, alcohol, corkscrews, wine and liquor accessories,
5trade publications, gift cards, gift certificates, wine- or
6liquor-scented candles and wine glasses in the manner set forth
7in this act: Provided, however, That all purchases shall be made
8subject to the approval of the State Treasurer, or his
9designated deputy. The board shall buy liquor and alcohol at the
10lowest price and in the greatest variety reasonably obtainable.
11The board's authority to exercise the powers granted pursuant to 
12this subsection is subject to the limitations set forth in 
13Article III-A of this act.

14(b) To control the manufacture, possession, sale,
15consumption, importation, use, storage, transportation and
16delivery of liquor, alcohol and malt or brewed beverages in
17accordance with the provisions of this act, and to fix the
18wholesale and retail prices at which liquors and alcohol shall
19be sold at Pennsylvania Liquor Stores. Prices shall be
20proportional with prices paid by the board to its suppliers and
21shall reflect any advantage obtained through volume purchases by
22the board. The board may establish a preferential price
23structure for wines produced within this Commonwealth for the
24promotion of such wines, as long as the price structure is
25uniform within each class of wine purchased by the board. The
26board shall require each Pennsylvania manufacturer and each
27nonresident manufacturer of liquors, other than wine, selling
28such liquors to the board, which are not manufactured in this
29Commonwealth, to make application for and be granted a permit by
30the board before such liquors not manufactured in this

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

26[(c) To determine the municipalities within which
27Pennsylvania Liquor Stores shall be established and the
28locations of the stores within such municipalities.]

29(d) To grant and issue all licenses and to grant, issue,
30suspend and revoke all permits authorized to be issued under

1this act.

2(e) Through the [Department of General Services] department
3as agent, to lease and furnish and equip such buildings, rooms
4and other accommodations as shall be required for the operation
5of this act.

6(f) To appoint, fix the compensation and define the powers
7and duties of such managers, officers, inspectors, examiners,
8clerks and other employes as shall be required for the operation
9of this act, subject to the provisions of The Administrative
10Code of 1929 and the Civil Service Act.

11(g) To determine the nature, form and capacity of all
12packages and original containers to be used for containing
13liquor, alcohol or malt or brewed beverages.

14(h) Without in any way limiting or being limited by the
15foregoing, to do all such things and perform all such acts as
16are deemed necessary or advisable for the purpose of carrying
17into effect the provisions of this act and the regulations made
18thereunder.

19(i) From time to time, to make such regulations not
20inconsistent with this act as it may deem necessary for the
21efficient administration of this act. The board shall cause such
22regulations to be published and disseminated throughout the
23Commonwealth in such manner as it shall deem necessary and
24advisable or as may be provided by law. Such regulations adopted
25by the board shall have the same force as if they formed a part
26of this act.

27(j) By regulation, to provide for the use of a computerized
28referral system to assist consumers in locating special items at
29Pennsylvania Liquor Stores and for the use of electronic
30transfer of funds and credit cards for the purchase of liquor

1and alcohol at Pennsylvania Liquor Stores. The board's authority 
2to exercise the powers granted pursuant to this subsection is 
3subject to the limitations set forth in Article III-A of this 
4act.

5(k) To issue grants to various entities for alcohol
6education and prevention efforts.

7(l) To close Pennsylvania Liquor Stores as directed under<-
8Article III-A of this act.

9(m) The board may implement a delivery system as a means of
10providing product to all licensees under this act.

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 5.1. Section 211(c) of the act, amended October<- 5,
111994 (P.L.537, No.80), is amended to read:

12Section 211. Enforcement.--* * *

13(c) The Pennsylvania State Police Commissioner shall assign
14State Police Officers to such supervisory and other capacities
15in the enforcement bureau as he deems necessary. All other
16personnel of the enforcement bureau shall be civilians.
17Notwithstanding any other provision of law, a State Police 
18officer assigned to the enforcement bureau may not be counted 
19against the complement of officers as prescribed in section 205 
20of the act of April 9, 1929 (P.L.177, No.175), known as "The 
21Administrative Code of 1929."

22* * *

23Section 6. Section 215 of the act, amended June 25, 2010
24(P.L.217, No.35), is repealed:

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

26(e) The board is authorized to participate in or sponsor
27wine and spirits events for the purpose of educating consumers
28as to the wines and spirits available in this Commonwealth. The
29wine and spirits to be used for the event may be acquired
30through the State store system or may be donated from outside

1this Commonwealth. Participation in the tastings may be
2conditioned on the purchase of a ticket to the event. The event
3may include events occurring on premises licensed by the board,
4and the board may sell wine and spirits for off-premises
5consumption in an area designated by the board for such sale.]

6Section 7. Section 301 of the act is amended to read:

7Section 301. Board to Establish State Liquor Stores.--(a)
8The board shall [establish,] operate and maintain at such places
9throughout the Commonwealth as it shall deem essential and
10advisable, stores to be known as "Pennsylvania Liquor Stores,"
11for the sale of liquor and alcohol in accordance with the
12provisions of and the regulations made under this act[; except
13that no store not so already located shall be located within
14three hundred feet of any elementary or secondary school, nor
15within a dry municipality without there first having been a
16referendum approving such location. When the board shall have
17determined upon the location of a liquor store in any
18municipality, it shall give notice of such location by public
19advertisement in two newspapers of general circulation. In
20cities of the first class, the location shall also be posted for
21a period of at least fifteen days following its determination by
22the board as required in section 403(g) of this act. The notice
23shall be posted in a conspicuous place on the outside of the
24premises in which the proposed store is to operate or, in the
25event that a new structure is to be built in a similarly visible
26location. If, within five days after the appearance of such
27advertisement, or of the last day upon which the notice was
28posted, fifteen or more taxpayers residing within a quarter of a
29mile of such location, or the City Solicitor of the city of the
30first class, shall file a protest with the court of common pleas

1of the county averring that the location is objectionable
2because of its proximity to a church, a school, or to private
3residences, the court shall forthwith hold a hearing affording
4an opportunity to the protestants and to the board to present
5evidence. The court shall render its decision immediately upon
6the conclusion of the testimony and from the decision there
7shall be no appeal. If the court shall determine that the
8proposed location is undesirable for the reasons set forth in
9the protest, the board shall abandon it and find another
10location. The board may establish, operate and maintain such
11establishments for storing and testing liquors as it shall deem
12expedient to carry out its powers and duties under this act], 
13and subject to the limitations set forth in Article III-A of 
14this act.

15(b) The board may lease the necessary premises for such 
16stores or establishments, but all such leases shall be made 
17through the [Department of General Services] department as agent 
18of the board. The board, through the [Department of General 
19Services] department, shall have authority to purchase such 
20equipment and appointments as may be required in the operation 
21of such stores or establishments.

22Section 7.1. Section 304 of the act, amended December 8,<- 
232004 (P.L.1810, No.239), is amended to read:

24Section 304. When Sales May Be Made at Pennsylvania Liquor
25Stores.--(a) Except as provided for in subsection (b), every
26Pennsylvania Liquor Store shall be open for business week days,
27except holidays as that term is defined in section 102. The
28board may, with the approval of the Governor, temporarily close
29any store in any municipality.

30(b) Certain Pennsylvania Liquor Stores operated by the board 

1shall be open for Sunday retail sales between the hours of 
2[noon] nine o'clock antemeridian and [five] nine o'clock 
3postmeridian, except that no Sunday sales shall occur on Easter 
4Sunday or Christmas day. The board shall open [up to twenty-five 
5per centum of the total number of] Pennsylvania Liquor Stores at 
6its discretion for Sunday sales as provided for in this 
7subsection. The board shall submit yearly reports to the 
8Appropriations and the Law and Justice Committees of the Senate 
9and the Appropriations and the Liquor Control Committees of the 
10House of Representatives summarizing the total dollar value of 
11sales under this section.

12Section 8. Section 305 of the act, amended May 8, 2003
13(P.L.1, No.1), July 17, 2003 (P.L.63, No.15), May 8, 2003
14(P.L.1, No.1), December 8, 2004 (P.L.1810, No.239), July 6, 2005
15(P.L.135, No.39) and July 5, 2012 (P.L.1007, No.116), is amended
16to read:

17Section 305. Sales by Pennsylvania Liquor Stores.--(a) The
18board shall in its discretion determine where and what classes,
19varieties and brands of liquor and alcohol it shall make
20available to the public and where such liquor and alcohol will
21be sold. Every Pennsylvania Liquor Store shall be authorized to
22sell combination packages. If a person desires to purchase a
23class, variety or brand of liquor or alcohol not currently
24available from the board, he or she may place a special order
25for such item so long as the order is for two or more bottles.
26The board may require a reasonable deposit from the purchaser as
27a condition for accepting the order. The customer shall be
28notified immediately upon the arrival of the goods.

29In computing the retail price of such special orders for
30liquor or alcohol, the board shall not include the cost of

1freight or shipping before applying the mark-up and taxes but
2shall add the freight or shipping charges to the price after the
3mark-up and taxes have been applied.

4Unless the customer pays for and accepts delivery of any such
5special order within ten days after notice of arrival, the store
6may place it in stock for general sale and the customer's
7deposit shall be forfeited.

8During the retail divestiture process as provided in Article
9III-A, the board shall continue to take and process special
10liquor orders for residents and licensees of the board, and may
11establish a protocol by which pre-paid orders may be picked up
12at either a Pennsylvania Liquor Store or from the licensed
13premises of a wine and spirits retail licensee. A wine and
14spirits retail licensee is authorized to assess a handling fee
15for this purpose. Any product not claimed at a wine and spirits
16retail store by the purchaser shall be returned to the board
17after ten days notice of arrival was sent to the purchaser.

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

1to the Pharmacopoeia of the United States, the National
2Formulary, or the American Homeopathic Pharmacopoeia. The board
3may sell at special prices under the regulations of the board,
4to United States Armed Forces facilities which are located on
5United States Armed Forces installations and are conducted
6pursuant to the authority and regulations of the United States
7Armed Forces. All other sales by such stores shall be at retail.
8A person entitled to purchase liquor at wholesale prices may
9purchase the liquor at any Pennsylvania Liquor Store upon
10tendering cash, check or credit card for the full amount of the
11purchase. For this purpose, the board shall issue a discount
12card to each licensee identifying such licensee as a person
13authorized to purchase liquor at wholesale prices. Such discount
14card shall be retained by the licensee. The board may contract
15through the Commonwealth bidding process for delivery to
16wholesale licensees at the expense of the licensee receiving the
17delivery.

18(c) Whenever any checks issued in payment of liquor or
19alcohol purchased from State Liquor Stores by persons holding
20wholesale purchase permit cards issued by the board shall be
21returned to the board as dishonored, the board shall charge a
22fee of five dollars per hundred dollars or fractional part
23thereof, plus all protest fees, to the maker of such check
24submitted to the board. Failure to pay the face amount of the
25check in full and all charges thereon as herein required within
26ten days after demand has been made by the board upon the maker
27of the check shall be cause for revocation or suspension of any
28license issued by the board to the person who issued such check
29and the cancellation of the wholesale purchase permit card held
30by such person.

1(d) No liquor or alcohol package shall be opened on the
2premises of a Pennsylvania Liquor Store. No manager or other
3employe of the board employed in a Pennsylvania Liquor Store
4shall allow any liquor or alcohol to be consumed on the store
5premises, nor shall any person consume any liquor or alcohol on
6such premises, except liquor and alcohol which is part of a
7tasting conducted pursuant to the board's regulations. Such
8tastings may also be conducted in the board's headquarters or
9regional offices.

10(e) The board may sell tax exempt alcohol to the
11Commonwealth of Pennsylvania and to persons to whom the board
12shall, by regulation to be promulgated by it, issue special
13permits for the purchase of such tax exempt alcohol.

14Such permits may be issued to the United States or any
15governmental agency thereof, to any university or college of
16learning, any laboratory for use exclusively in scientific
17research, any hospital, sanitorium, eleemosynary institution or
18dispensary; to physicians, dentists, veterinarians and
19pharmacists duly licensed and registered under the laws of the
20Commonwealth of Pennsylvania; to manufacturing chemists and
21pharmacists or other persons for use in the manufacture or
22compounding of preparations unfit for beverage purposes.

23(f) Every purchaser of liquor, alcohol, corkscrews, wine or
24liquor accessories, trade publications, gift cards, gift
25certificates, wine- or liquor-scented candles or wine glasses
26from a Pennsylvania Liquor Store shall receive a numbered
27receipt which shall show the price paid therefor and such other
28information as the board may prescribe. Copies of all receipts
29issued by a Pennsylvania Liquor Store shall be retained by and
30shall form part of the records of such store.

1[(g) The board is hereby authorized and empowered to adopt
2and enforce appropriate rules and regulations to insure the
3equitable wholesale and retail sale and distribution, through
4the Pennsylvania Liquor Stores, of available liquor and alcohol
5at any time when the demand therefor is greater than the
6supply.]

7(h) Every Pennsylvania Liquor Store shall sell gift
8certificates and gift cards which may be redeemed for any
9product sold by the board. In addition, the board may sell
10corkscrews, wine and liquor accessories, wine- or liquor-scented
11candles, trade publications and wine sleeves at Pennsylvania
12Liquor Stores.

13(i) Notwithstanding any other provision of law to the
14contrary, the board may sell wine in containers having a
15capacity of sixty liters or less.

16Section 9. The act is amended by adding an article to read:

17ARTICLE III-A

18WINE AND SPIRITS DISTRIBUTION

19SUBARTICLE A

20GENERAL PROVISIONS

21Section 301-A. Scope of article.

22This article relates to the privatization of liquor
23distribution in this Commonwealth.

24Section 302-A. Legislative intent.

25The General Assembly finds and declares as follows:

26(1) The wholesale and retail of liquor should no longer
27be by the Commonwealth, but rather by private persons
28licensed and regulated by the Commonwealth.

29(2) The health and welfare of the citizens of this
30Commonwealth will be adequately protected by the regulation

1of private licensees through strict enforcement of laws and
2rules relating to the purchase and sale of liquor.

3(3) The sale of liquor through wholesale and retail
4licensees will provide residents with improved customer
5convenience, and will provide an opportunity for competitive
6pricing and enhanced product selection.

7(4) Modernization of the retail sale of wine and<- beer
8through new outlets for consumption off the premises will
9further enhance customer convenience.

10(5) This article will improve operation and efficiency
11of State government.

12(6) The authorization of wine and spirits wholesale and
13retail licenses is intended to continue the generation of
14revenue to the Commonwealth related to the wholesale and
15retail sale of liquor.

16(7) The transition to a privately-owned and privately-
17operated wholesale and retail liquor distribution system
18should be accomplished in a manner that protects the public
19through regulation and policing of all activities involved in
20the wholesale and retail sale of liquor.

21(8) The establishment of wine and spirits wholesale and
22retail licenses is intended to provide broad economic
23opportunities to the citizens of this Commonwealth and to be
24implemented in such a manner as to prevent monopolization by
25establishing reasonable restrictions on the control of
26wholesale and retail licensees.

27(9) The transition to a privately-owned and privately-
28operated wholesale and retail liquor distribution system
29should be accomplished in a manner that minimizes disruption
30of services to the public.

1(10) In conjunction with the transition to privately-
2owned and privately-operated liquor wholesalers and retail
3liquor stores, this article is intended to modernize the
4retail sale of wine and beer<- through new outlets for
5consumption off the premises, further enhancing customer
6convenience.

7(11) With the transition to a privately-owned and 
8privately-operated wholesale and retail liquor distribution 
9system, and with the addition of new licensing 
10classifications, it is necessary to enhance alcohol education 
11and enforcement efforts to:

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

13(ii) prevent and combat the illegal consumption of
14alcohol by minors and visibly intoxicated persons; and

15(iii) discourage the intemperate use of alcohol.

16(12) Participation in the wholesale and retail sale of
17liquor by a wholesale or retail licensee is a privilege,
18conditioned upon the proper and continued qualification of
19the licensee and upon the discharge of the affirmative
20responsibility of the licensee to provide the department and
21the board with assistance and information necessary to assure
22that the policies declared by this article are achieved.

23Section 303-A. Transition to private distribution system,
24powers and duties of the department and the board.

25(a) Orderly transition.--The department and the board have
26the power and duty to implement this article and effect an
27orderly transition to a privately-owned and privately-operated
28wholesale and retail liquor distribution system in this
29Commonwealth in a manner which is consistent with this article
30and the laws of this Commonwealth and which seeks to maintain

1uninterrupted service to the public.

2(b) Retail transition.--

3(1) The department shall substantially transition t<-he
4board's retail distribution of alcohol to privately-owned and
5privately-operated wine and spirits retail licensees before
6divesting the board's wholesale operations. The board s<-hall
7have the authority to issue wine and spirits retail licenses
8and wine and spirits wholesale licenses, provided that the
9wine and spirits wholesale licenses are not issued until one
10year after the effective date of this section. The department
11shall engage the services of a consultant to assist the
12committee in effectuating the intent of this section. The
13department shall not be bound by the procedural constraints
14or requirements of 62 Pa.C.S. Pt. I (relating to Commonwealth
15Procurement Code) in hiring the consultant.

16(2) The divesture divestiture of the b<-oard's retail
17operations shall be accomplished through the issuance of
181,200 wine and spirits retail licenses, that shall be<-
19allocated by county, which shall be awar<-ded through a
20competitive bidding process as set forth in this article. Six<-
21hundred wine and spirits retail licenses may be issued by the
22board as the State liquor stores wind down operations in a
23county. The licenses shall be issued if the department
24determines, in cooperation with the board, that the retail
25licenses are necessary for consumer convenience. After the
26determination, the retail licenses shall be issued first to
27distributor licensees and then on a first-come, first-served
28basis. Each successful applicant shall be thoroughly
29investigated to determine whether the person is a reputable
30and responsible person suitable to be licensed to sell liquor

1in this Commonwealth.

2(3) As licenses are awarded in a given county, Sta<-te
3liquor stores located in the region shall begin to wind down
4operations the board shall determine the necessity of wind<-ing
5down operations in State stores in the region and, as it
6becomes necessary, terminate applicable lease agreements,
7redistribute or furlough store personnel and dispose of
8remaining inventory and store property.

9(4) The transition shall fully divest the board o<-f
10operations relating to the retail distribution of liquor
11within three years and six months of the effective date of
12this section.

13(c) Wholesale transition.--

14(1) A<-fter the board's retail operations have been
15substantially divested Twelve months after the effective date<-
16of this section, the department shall transition the board's
17wholesale distribution of liquor to privately-owned and
18privately-operated wholesale licensees.

19(2) The divesture divestiture of the board's wholesa<-le
20operations shall be accomplished through the issuance of wine
21and spirits wholesale licenses by brand of liquor, which
22shall be subject to an application process as set forth in
23this article. The transition must fully divest the board of
24all operations relating to the wholesale distribution of
25liquor within six months of the complete divestiture of<- the
26board's retail operations commencement of wholesa<-le
27divestiture.

28(d) Cooperation required.--

29(1) The board shall fully cooperate with the department
30or its consultant in all aspects of implementation of this

1article and shall provide the department or its consultant
2with all records and information in the possession of the
3board upon request.

4(2) The board shall devote sufficient resources to
5planning and preparation for the divestiture of its wholesale
6and retail functions.

7(3) The board shall use its best efforts in coordinating
8with the department or its consultant, wine and spirits
9retail licensees and wine and spirits wholesale licensees so
10as to maintain uninterrupted service to the residents of this
11Commonwealth during divestiture.

12(e) Prohibition.--The board shall not engage in retail or<-
13wholesale distribution of liquor following completion of the
14retail <-and wholesale transition to a private distribution
15system.

16Section 304-A. Reports to the General Assembly.

17One year after the effective date of this section, and each
18year thereafter until the board has been fully divested of its
19wholesale and retail operations, the board, in cooperation with
20the department, shall submit to the Secretary of the Senate and
21the Chief Clerk of the House of Representatives, a report on
22wholesale and retail alcohol sales in this Commonwealth and the
23implementation of this article, including:

24(1) the total revenue earned by the issuance of licenses
25under this article;

26(2) the distribution and sale of brands through private
27wholesalers;

28(3) the net profit or loss of each wine and spirits
29retail licensed premise and State liquor store in this
30Commonwealth; and

1(4) the status of the ongoing transition, including
2store closures and employee displacement.

3Section 305-A. Temporary regulations.

4(a) Promulgation.--In order to facilitate the prompt
5implementation of this article, regulations promulgated by the
6department shall be deemed temporary regulations which shall
7expire no later than five years following the effective date of
8this section. The department may promulgate temporary
9regulations not subject to:

10(1) sections 201, 202 and 203 of the act of July 31,
111968 (P.L.769, No.240), referred to as the Commonwealth
12Documents Law; or

13(2) the act of June 25, 1982 (P.L.633, No.181), known as
14the Regulatory Review Act.

15(b) Expiration.--The authority provided to the department to
16adopt temporary regulations under subsection (a) shall expire on
17January 1, 2018.

18S<-UBARTICLE B

19DIVESTITURE OF RETAIL LIQUOR DISTRIBUTION

20Section 311-A. Retail divestiture through issuance of wine and
21spirits retail licenses.

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

23(1) Upon the effective date of this section, the
24department shall appoint individuals to a retail divestiture
25strategy committee, which shall be comprised of
26representatives from the department, representatives from a
27consultant hired by the department to facilitate the
28divestiture process and at least one representative from each
29of the board's Bureau of Retail Operations, Bureau of Supply
30Chain and Bureau of Licensing.

1(2) The committee shall be chaired by a representative
2from the department.

3(3) The committee shall establish the procedures and
4logistical steps necessary to implement the retail
5divestiture process, within the framework of this article.
6The role of the committee is to provide advisory input to the
7department during the divestiture process; and, as such, its
8meetings are not subject to 65 Pa.C.S. Ch. 7 (relating to
9open meetings).

10(b) Initiation of divestiture.--The department shall
11coordinate efforts so that the auction process under this
12subarticle concludes not later than three years and six months
13from the effective date of this section.

14Section 311.1-A. Issuance of wine and spirits retail licenses.

15(a) Auction of retail licenses.--The department shall be
16authorized to award not more than 1,200 wine and spirits retail
17licenses to qualified applicants pursuant to an auction process,
18in which licenses shall be awarded to the highest applicant
19meeting the requirements of this article.

20(b) License classification.--There shall be two classes of
21wine and spirits retail licenses as follows:

22(1) Class A wine and spirits retail licenses shall be
23authorized for issuance to successful applicants consistent
24with this subarticle. Class A licenses shall authorize the
25operation of a retail wine and spirits store in an
26establishment which exceeds 15,000 square feet of retail
27floor space and dedicates a minimum of 600 linear feet of
28shelf space for the sale of liquor. The department shall not
29allocate more than 800 Class A licenses.

30(2) Class B wine and spirits retail licenses shall be

1authorized for issuance to successful applicants consistent
2with this subarticle. Class B licenses shall authorize the
3operation of a retail wine and spirits store in an
4establishment which has less than 15,000 square feet of
5retail floor space. The department shall not allocate more
6than 400 Class B licenses.

7(c) License allocation.--

8(1) The department, in accordance with the
9recommendations of the retail divestiture strategy committee
10and its consultant and with the full cooperation and
11assistance of the board, shall:

12(i) allocate the aggregate number of wine and
13spirits retail store licenses to be auctioned in each
14county; and

15(ii) apportion how many licenses should be of a
16particular class.

17(2) A county shall not be allocated fewer wine and
18spirits retail licenses than:

19(i) the number of existing State liquor stores in
20the county; or

21(ii) the aggregate number of licensed distributors
22and importing distributors in the county if that number
23is more than the number of existing State liquor stores.

24(3) In determining the appropriate number of licenses to
25be auctioned in each county, and the apportionment of Class A
26and Class B licenses, the department shall consider the
27following factors:

28(i) The existing number, location and sizes of the 
29State liquor stores in the county and neighboring 
30counties.

1(ii) The hours of operation for existing State
2liquor stores in the county.

3(iii) The geographic size and population density of
4the county.

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

6(A) existing stores;

7(B) number of stock-keeping units made available 
8in those stores; and

9(C) sales trends of those stores.

10(v) The locations of licensed grocery stores, big-
11box retail stores, pharmacies and distributor licenses
12and the proposed location of pending applications for the
13licenses, including enhanced distributor licenses.

14(vi) Other information the department deems relevant 
15in order to ensure the reasonable availability of wine 
16and spirits in the county.

17(d) Other licenses.--Nothing in this act shall prohibit any
18of the following:

19(1) A wine and spirits retail licensee from receiving:

20(i) a distributor license under section 431 which
21authorizes the licensee to sell malt and brewed beverages
22at retail for consumption off the premises; or

23(ii) an enhanced distributor license under section
24431.2.

25(2) A restaurant liquor licensee or a retail dispenser
26licensee from receiving a wine and spirits retail license as
27long as the restaurant or retail dispenser does not have an
28interior connection to or with the wine and spirits retail
29licensed premises.

30Section 312-A. Conduct of retail auctions.

1The department shall conduct two retail auctions in each
2county. The first auction shall be limited to Class A wine and
3spirits retail licenses and shall be commenced not later than
4six months from the effective date of this section, and conclude
5not longer than one year from the effective date of this
6section. The second auction shall be limited to Class B wine and
7spirits retail licenses and shall be commenced as soon as
8practicable after the Class A retail license auction is
9completed.

10Section 313-A. Retail auction requirements.

11(a) Conduct of auctions.--Class A and Class B retail
12auctions shall be conducted by the department consistent with
13the following:

14(1) The department shall establish a deadline for
15submission of bids for all auctions and publish the deadlines
16in the Pennsylvania Bulletin and on the department's Internet
17website.

18(2) The department shall review the submission of timely
19bids to determine compliance with the minimum bid
20requirements of section 317.1-A. A bid which does not comply
21with the minimum bid amount will be rejected. Applicant
22identification information and bid amount for each accepted
23bid shall be made subject to public disclosure.

24(3) For each Class A and Class B countywide auction, the
25department shall identify the number of highest bids which
26equals two times the number of Class A and Class B licenses,
27respectively, assigned by the department to a given county.
28The department shall notify all applicants of the high
29bidders identified in each Class A and Class B auction.

30(4) For each retail auction, the department shall

1establish a best and final offer period in which the highest
2bidders identified under paragraph (3) will be provided an
3opportunity to submit a revised bid amount, which will
4represent its best and final offer. An applicant may not
5submit a best and final offer that includes a bid amount
6which is less than the applicant's original bid.

7(5) For Class A and Class B retail license auctions, the
8department shall review the best and final offers and shall
9select a high bidder for each Class A and Class B license
10assigned to a specific county.

11(b) Other applicants.--Nothing in this act shall prohibit a
12person holding a distributor license or a restaurant liquor
13license from submitting a bid and, if successful, being issued a
14wine and spirits retail license, subject to the restrictions
15under this subarticle.

16(c) Applicant collusion.--Persons may not collude to rig a
17bid involving a wine and spirits retail license.

18(d) Criminal penalty.--

19(1) An individual who violates subsection (c) commits a
20felony of the third degree and shall, upon conviction, be
21sentenced to pay a fine of not more than $50,000 or to
22imprisonment for not more than one year, or both.

23(2) A person other than an individual that violates
24subsection (c) commits a felony of the third degree and
25shall, upon conviction, be sentenced to pay a fine of not
26more than $1,000,000.

27(e) Civil penalty.--

28(1) Except as set forth in paragraph (2), the Attorney
29General may bring a civil action against a person that
30violates subsection (c) for a penalty of up to $100,000.

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

3(f) Disqualification, termination and debarment.--In
4addition to any other criminal or civil penalties imposed under
5this section, the following shall apply to a person penalized
6under subsection (d) or (e):

7(1) The person shall be disqualified from bidding on or
8holding a wine and spirits retail license or holding any
9other license authorized under this act for a period of three
10years.

11(2) The board shall revoke any license issued under this
12act.

13(3) The person may be subject to 62 Pa.C.S. § 531
14(relating to debarment and suspension).

15Section 314-A. Postqualification of selected applicants.

16(a) Investigation.--Upon selection of a bid under section
17313-A(a)(5), the department shall immediately convey the
18selected bid information to the board's Bureau of Licensing,
19which shall conduct an investigation of each applicant whose bid
20was accepted based upon the information submitted to evaluate
21whether:

22(1) the applicant qualifies as a reputable, responsible
23and suitable person to hold a wine and spirits retail liquor
24license and operate a wine and spirits store;

25(2) the applicant has proposed an acceptable facility
26and location for a wine and spirits store; and

27(3) the applicant's planned operation complies with this
28article.

29(b) Additional information.--The board may require
30additional information from an applicant and conduct onsite

1inspections, as necessary, to complete the postqualification
2process.

3(c) Assistance with investigations.--The board may enter
4into an agreement with the Pennsylvania State Police or the
5Office of Inspector General to assist the board in the conduct
6of investigations under this section and to provide for the
7reimbursement of actual costs incurred for providing assistance.

8(d) Public input hearings.--

9(1) During the postqualification process, the board
10shall schedule one public input hearing in each of the 11
11board licensing districts, including one in a city of the
12first class, at which interested members of the public will
13be provided the opportunity to testify regarding selected
14applicant qualifications and the suitability of the location
15of the proposed wine and spirits stores. The testimony of a
16public witness shall be considered by the board in the
17postqualification investigation of applicants to which the
18testimony applies.

19(2) The board shall establish a protocol for receiving
20written objections from residents, churches, hospitals,
21charitable institutions, schools and public playgrounds,
22which are located near proposed wine and spirits store
23locations. The board may consider the written objections in
24the postqualification investigation of applicants to which
25the testimony applies. An objector under this paragraph may
26not appeal the board's decision.

27(e) Investigative fees.--The board may charge fees to an
28applicant to recover the costs directly related to the board's
29investigation within the postqualification process.

30(f) Acceptance of qualifications.--An applicant's

1qualifications shall be accepted by the board if the board's
2investigation reveals all of the following:

3(1) The bid information was truthful.

4(2) The applicant and its officers, directors and
5principals, if any, are of good repute, responsible and
6suitable for operating a wine and spirits store.

7(3) The applicant possesses sufficient financial
8resources to:

9(i) operate a wine and spirits store;

10(ii) pay taxes due; and

11(iii) meet financial obligations.

12(4) The applicant possesses sufficient business
13experience to operate a wine and spirits store.

14(5) The proposed facilities are compliant with all of
15the operational requirements of the statement of conditions
16under this article.

17(6) The proposed location is suitable within the
18community.

19(g) Issuance of license.--If a selected applicant's
20qualifications are accepted by the board, the board shall
21qualify the applicant and shall issue a wine and spirits retail
22license to the applicant upon the occurrence of the following:

23(1) Execution and delivery to the department and the
24board of the statement of conditions required under section
25319-A.

26(2) Payment of the bid amount by certified check or wire
27transfer to a designated restricted account established in
28The State Stores Fund.

29(3) Payment of any outstanding bid or investigation
30fees.

1(4) Fulfillment of any other conditions required by the
2department or the board.

3(h) Qualifications unacceptable.--

4(1) If an applicant's qualifications are not accepted by
5the board, the board shall submit the results of its
6investigation and the rationale for this conclusion to the
7department. The department shall identify the next highest
8applicant that was not selected in the auction under section
9313-A(a)(5) and submit the bid information to the board for a
10postqualification investigation of that applicant, consistent
11with subsection (a).

12(2) If the second highest applicant is not approved, the
13department shall repeat the postqualification process for the
14next highest unselected applicant in the auction for that
15county.

16(3) If the third highest applicant in an auction is not
17approved by the department, the department may:

18(i) proceed with a new auction for that wine and
19spirits retail license;

20(ii) conduct an additional best and final offer
21period to consider additional bids from the original
22auction; or

23(iii) proceed with a new auction for the other class
24of license.

25(i) Approval of qualifications.--If the qualifications of
26the applicant are approved by the board under subsection (f),
27the board shall issue a wine and spirits retail license to the
28successful applicant consistent with the requirements of
29subsection (g).

30(j) License not entitlement.--

1(1) Nothing contained in this article is intended to
2create an entitlement to a wine and spirits retail license. A
3wine and spirits retail license is a privilege as between the
4board and the licensee.

5(2) A wine and spirits retail license is property as
6between the licensee and third parties.

7(k) Terms of licensure.--

8(1) A wine and spirits retail license shall be in effect
9unless the board:

10(i) revokes, suspends or fails to renew the license;
11or

12(ii) revokes the operating authority of the licensee
13under the license requirements of this article.

14(2) A wine and spirits retail license shall be subject
15to renewal every two years consistent with this article.

16(3) Nothing under this subsection relieves a wine and
17spirits retail licensee of the affirmative duty to notify the
18board of changes relating to the status of its license or to
19other information contained in the application materials on
20file with the department or the board.

21Section 315-A. Auctions with no or insufficient minimum bids.

22If an insufficient number of bids which meet or exceed the
23minimum bid are submitted in an auction in a county, the
24department:

25(1) shall select the bids which meet or exceed the
26minimum bid subject to postqualification; and

27(2) may conduct:

28(i) a new auction for the remaining wine and spirits
29retail licenses without a minimum bid or with a modified
30minimum bid; or

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

2Section 316-A. Protest of bid selection.

3(a) Protest.--

4(1) Within five days of the selection of an applicant in
5county auction, an applicant that is not selected by the
6department for the wine and spirits retail license for that
7county must file a protest in writing with the department.

8(2) Failure to comply with paragraph (1) results in a
9waiver of an applicant's opportunity to challenge or appeal
10the selection of the department.

11(b) Requirements for protests.--A protest filed under this
12section must comply with all of the following:

13(1) For Class A auctions and Class B auctions, the
14subject matter of a protest is restricted to the conduct of
15the license auction for the specific county in which the
16protester participated. No person may protest an auction in
17which that person did not participate as an applicant.

18(2) An unselected applicant that files a protest must be
19represented by an attorney at law.

20(3) An applicant that files a protest under this section
21waives its right to, and is disqualified from, being selected
22by the department as the next highest applicant for
23postqualification under this subarticle.

24(4) As a prerequisite to the filing of a protest, and at
25the time of the filing of a protest, the protester must
26provide the department with a bond, letter of credit or other
27form of security acceptable to the department in an amount
28equal to the amount of the selected bid. The accepted
29security shall be in an amount equal to the highest bid
30received from any applicant for that class of license. If the

1bid protest does not result in the overturning of the
2department's bid selection for the specific auction
3protested, and the selected applicant does not pay the bid
4amount for any reason the protester shall forfeit its
5security to the department.

6Section 317-A. Content of bids.

7The following are the requirements for a bid submitted to
8participate in a wine and spirits retail license auction under
9this subarticle:

10(1) The bid must include a summary page which clearly
11identifies:

12(i) The name, address and tax identification number
13of the applicant.

14(ii) The county for which the bid is being
15submitted.

16(iii) The amount of the bid.

17(iv) The amount of the minimum bid for the wine and
18spirits retail license auction in which the applicant is
19participating.

20(2) The bid must state a general description of the bid
21and the location of the proposed wine and spirits store,
22including the estimated square feet of total retail space in
23the proposed location.

24(3) The bid must state the following:

25(i) Whether the applicant is an individual,
26corporation, limited liability company, limited
27partnership, partnership or association or other legal
28entity.

29(ii) If the applicant is a corporation:

30(A) the state of incorporation; and

1(B) the names and residence addresses of each
2officer, director and shareholder holding a
3controlling interest in the corporation.

4(iii) If the applicant is a partnership:

5(A) the state of organization; and

6(B) the names and residence addresses of each
7general partner and limited partner.

8(iv) If the applicant is an association, the bid
9must set forth the names and addresses of the persons
10constituting the association.

11(4) If the applicant is a corporation, limited liability
12company, limited partnership, partnership, association or
13other legal entity, the bid must show that the entity is
14organized under the laws of this Commonwealth.

15(5) If the applicant is an individual, the bid must show
16that the applicant:

17(i) is a citizen of the United States and a resident
18of this Commonwealth; and

19(ii) is not acting as an agent for any other person,
20partnership, association or group of persons beneficially
21interested in the license.

22(6) The bid must state the proposed location and
23ownership of the site for the wine and spirits store,
24including floor plans of existing facilities to be utilized
25in the applicant's retail operation and design plans for any
26facilities not yet constructed, to the extent they are
27available.

28(7) The bid must state information disclosing:

29(i) an arrest of, and a citation for an offense
30graded higher than a summary offense issued to, the

1applicant;

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

4(iii) the applicant's affiliates.

5The information must include:

6(A) A brief description of the circumstances
7surrounding the arrest or issuance of the citation.

8(B) The specific offense charged or cited.

9(C) The ultimate disposition of the charge or
10citation, including the details of a dismissal, plea
11bargain, conviction, sentence, pardon, expungement or
12order of Accelerated Rehabilitative Disposition.

13(8) The bid must contain a sworn statement that the
14applicant, each person listed for the applicant under
15paragraph (3)(ii)(B) and (iii)(B) and the applicant's
16affiliates:

17(i) have not within a period of ten years
18immediately preceding the date of the bid, been convicted
19of a crime involving fraud, moral turpitude or
20racketeering; and

21(ii) have not been convicted of:

22(A) an offense graded higher than a misdemeanor
23of the first degree; or

24(B) a similar offense in another jurisdiction.

25(9) The bid must contain a statement that the applicant
26will:

27(i) continuously operate a wine and spirits store
28for the duration of the two-year license period; and

29(ii) provide a level of service, including hours of
30operation and product availability reasonably equivalent

1to the level of service currently provided in the same
2geographic area.

3(10) The applicant must provide a financial statement or
4letter of credit, consistent with the requirements prescribed
5by the department, which demonstrates the financial
6capability to operate the wine and spirits store and the
7estimated volume of business to be conducted.

8(11) The applicant must:

9(A) provide a current tax certificate issued by
10the Department of Revenue for the applicant, each
11person listed for the applicant under paragraph (3)
12(ii)(B) and (iii)(B) and the applicant's affiliates;
13and

14(B) demonstrate payment of unpaid taxes
15identified on the tax certificate.

16(12) The applicant must pay, by certified check, a bid
17filing fee of $10,000 that must be submitted by certified
18check with the bid. The department shall refund the fee if,
19due to no fault of the applicant, the applicant is not issued
20a wine and spirits retail license. Refund under this
21paragraph includes instances when the bid amount exceeded the
22reserve for the license, but the bid amount was not high
23enough for the applicant to be selected.

24(13) The bid must be signed and verified by oath or
25affirmation as follows:

26(i) If the applicant is an individual, by the
27applicant.

28(ii) If the applicant is a partnership, by a
29partner.

30(iii) If the applicant is an association, by a

1member.

2(iv) If the applicant is a corporation or limited
3liability company, by an executive officer thereof or an
4individual specifically authorized by the entity to sign
5the bid. Written evidence of the authority must be
6attached to the bid.

7(14) The applicant must provide a noncollusion
8affidavit, executed by the applicant if the applicant is an
9individual and by an individual specifically authorized by
10the applicant if the applicant is a legal entity. Certifying
11that the applicant, each person listed for the applicant
12under paragraph (3)(ii)(B) and (iii)(B) and the applicant's
13affiliates has not engaged in collusion, bid-rigging or other
14prohibited activity in relation to the bid. The form and
15content of the noncollusion affidavit shall be determined by
16the department. Failure of an applicant to provide the
17required noncollusion affidavit disqualifies the bid unless
18cured within a time period determined by the department. The
19affidavit must state whether or not, within the past ten
20years, the applicant, each person listed for the applicant
21under paragraph (3)(ii)(B) and (iii)(B) and the applicant's
22affiliates has been convicted or found liable for an act
23prohibited by Federal or State law involving conspiracy or
24collusion with respect to bidding on a public contract or in
25relation to the sale or lease of a public asset. An
26affirmative statement of conviction or liability under this
27paragraph may be grounds for the department to find the
28applicant not suitable.

29(15) The applicant must provide an affidavit stating
30that the applicant, each person listed for the applicant

1under paragraph (3)(ii)(B) and (iii)(B) and the applicant's
2affiliates have not applied for and do not hold wine and
3spirits wholesale licenses.

4(16) The applicant must, during the auction process,
5update information in the bid and provide any other
6information determined to be appropriate by the department.

7Section 317.1-A. Minimum bid for retail auctions.

8The department shall establish minimum bid amounts for retail
9auctions and shall publish the amounts in the Pennsylvania
10Bulletin and on the department's Internet website. The
11department shall establish minimum bid amounts, with the input
12of the retail divestiture strategy committee, for each class of
13license auctioned in each county. In determining the minimum
14bids, the department shall consider the following factors
15relative to the county at issue:

16(1) The number of existing State liquor stores in the
17county and surrounding region.

18(2) Sales data of those stores pertaining to nonlicensed
19customers for the most recent 12-month period.

20(3) The number of licensed grocery stores, big-box
21retail stores, pharmacies and enhanced distributor licenses,
22and any pending applications for these licenses, in the
23county and surrounding region.

24(4) Available sales data from those licensees pertaining
25to the sale of wine.

26Section 318-A. Protest of license denial.

27(a) Right to protest.--An applicant that is denied a wine
28and spirits retail license under section 314-A(h) has the right
29to protest the denial.

30(b) Filing of protest.--

1(1) The protest must be filed in writing with the
2Secretary of General Services within seven days after the
3mailing date of the rejection of the application.

4(2) Failure to comply with paragraph (1) results in
5waiver of the right to protest.

6(c) Security required.--The protest must be accompanied by
7security in the amount of the protestant's bid and any fees
8required by the department under this article. Security must be
9in the form of a certified check or bank check or a bond
10provided by a surety company authorized to do business in this
11Commonwealth.

12(d) Contents of protest.--A protest must state the grounds
13upon which the protestant asserts the denial of the application
14was improper under this article or the department's regulations.
15The protestant may submit with the protest documents or
16information in support of the protest.

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

18(1) shall review the protest;

19(2) may request and review the additional documents or
20information necessary to render a decision;

21(3) may conduct a hearing;

22(4) shall provide the protestant a reasonable
23opportunity to review and address any additional documents or
24information deemed necessary to render a decision.

25(f) Determination.--Upon completing an evaluation of the
26protest in accordance with subsection (e), the secretary or the
27designee shall issue a written determination stating the reasons
28for the decision. The determination shall be issued within 30
29days of the receipt of the protest unless extended by the head
30of the department or his designee. The determination shall be

1the final order of the department.

2(g) Appeal.--Within 15 days of the mailing date of a final
3determination denying a protest, a protestant may file an appeal
4with the Commonwealth Court. Issues not raised by the protestant
5before the department are deemed waived and may not be raised
6before the court. A decision by the head of the department to
7reverse the denial of the application shall not be subject to
8appeal.

9(h) Record of determination.--The record of determination
10for review by the court shall consist of:

11(1) the winning bid;

12(2) the application;

13(3) the protest;

14(4) documents or information filed by the protestant in
15support of the protest;

16(5) additional documents or information considered by
17the secretary or the designee;

18(6) any hearing transcript and exhibits; and

19(7) the final determination.

20(i) Standard of review.--The court shall hear the appeal,
21without a jury, on the record of determination certified by the
22department. The court shall affirm the determination of the
23department unless it finds from the record that the
24determination is arbitrary and capricious, an abuse of
25discretion or is contrary to law.

26(j) Remedy.--If the court determines that the application
27denial is contrary to this article or the department's
28regulations, then the remedy the court shall order is limited to
29reversal of the department's determination and declaring void
30the issuance of any license resulting.

1(k) Effect of protest.--If the protestant files a timely
2protest under this section, the department shall not proceed
3with the issuance of a wine and spirits retail license until the
4issuance of a determination under subsection (f).

5(l) Stay unauthorized.--The filing of an appeal under
6subsection (g) shall not operate as a stay of the procedures in
7this article. Notwithstanding any other provision of law, no
8court shall have jurisdiction to stay the procedures in this
9article pending appeal.

10(m) Applicability.--This section shall be the exclusive
11procedure for protesting a denial of an application for a wine
12and spirits retail license under this article. The provisions of
132 Pa.C.S. Ch. 5 Subch. A (relating to practice and procedure of
14Commonwealth agencies) and Ch. 7 Subch. A (relating to judicial
15review of Commonwealth agency action) shall not apply to actions
16under this section.

17Section 319-A. Wine and spirits retail licensee statement of
18conditions.

19(a) Statement of conditions.--The department, in
20consultation with the board, shall develop a statement of
21conditions to be executed by each wine and spirits retail
22licensee governing the operations of the wine and spirits retail
23licensee.

24(b) Conditions.--In addition to any other conditions the
25department, in consultation with the board, deems necessary or
26appropriate for a specific wine and spirits retail licensee, a
27statement of conditions under this section shall include, at a
28minimum, the following conditions and impose the following
29obligations and requirements on an ongoing basis:

30(1) Under section 493.2, a wine and spirits retail

1licensee may not sell or distribute liquor to an individual
2under 21 years of age or to an individual who is visibly
3intoxicated.

4(2) A wine and spirits retail licensee may not operate a
5retail wine and spirits store located within:

6(i) Three hundred feet of an elementary or secondary
7school without department or board approval.

8(ii) A municipality which has voted to preclude the
9establishment of a State liquor store, unless the
10municipality subsequently votes to permit the board to
11issue a wine and spirits retail license.

12(2.1) A wine and spirits retail license may not be
13operated on real property upon which is located as a business
14the sale of liquid fuels and oil if the point of sale or
15dispensing of liquid fuels and oil is within 100 feet of the
16closest point to the physical building in which the license
17is located.

18(3) A wine and spirits retail licensee's wine and
19spirits store and all facilities involved in its retail
20operations, including any changes to those facilities during
21the term of the license, are subject to the inspection,
22investigation and approval of the department, the board and
23the enforcement bureau.

24(4) A wine and spirits retail licensee shall maintain
25adequate security to protect the licensee's inventory from
26unauthorized sale or diversion and prevent its unauthorized
27distribution. Nothing in this paragraph shall preclude a wine
28and spirits retail licensee from moving wine and spirits
29inventory between wine and spirits retail stores under common
30ownership on a periodic basis upon no less than one day's

1notice to the board and the enforcement bureau.

2(5) Unless specifically authorized in this act or with
3the prior approval of the board, a wine and spirits retail
4licensee may not engage in a separate business activity upon
5any licensed premises on which retail liquor operations are
6conducted.

7(6) Except in an emergency, as defined by regulation by
8the board, a wine and spirits retail licensee may not sell
9wine or spirits to licensees under Article IV and other wine
10and spirits retail licensees.

11(7) A wine and spirits retail licensee shall notify the
12board within 15 days of a change in persons holding a
13controlling interest in the wine and spirits retail licensee.

14(8) A wine and spirits retail licensee shall notify the
15board within 15 days of becoming aware of an arrest or
16criminal indictment or conviction by the following:

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

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

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

20(iv) If the licensee is a corporation, any officer,
21director or shareholder holding a controlling interest in
22the corporation.

23(v) An affiliate of the licensee.

24(9) A wine and spirits retail licensee shall notify the
25board within 15 days of becoming aware of a violation of this
26article by an individual listed in paragraph (8).

27(10) The premises of each wine and spirits store must be
28a self-contained unit with limited customer access dedicated
29to the sale of liquor and related merchandise. Except for a
30licensee that also holds a distributor license, no wine and

1spirits store may have an interior connection with another
2business or with a residential building except as approved by
3the board. Purchases of wine and spirits shall be paid for at
4a location within the confines of the licensed premises.

5(11) A wine and spirits retail licensee shall configure
6its licensed premises in a manner and with adequate
7safeguards to ensure that its liquor products are secure and
8that the licensed area may not be accessed during prohibited
9hours of operation.

10(12) A wine and spirits retail licensee may not do any
11of the following:

12(i) Hold, directly or indirectly, more than 60 wine
13and spirits retail licenses within this Commonwealth.

14(ii) Own more than:

15(A) ten percent of the wine and spirits retail 
16licenses in a county which has at least ten wine and 
17spirits retail licenses; or

18(B) one wine and spirits retail license in a
19county which has less than ten wine and spirits
20retail licenses.

21(13) A wine and spirits store may sell liquor for
22consumption off the premises and related merchandise within
23the licensed area of the store. Sales of related merchandise
24within the licensed area may not exceed 30% of the gross
25annual sales of a wine and spirits store. Unless the wine and
26spirits retail licensee also operates a license which
27authorizes the sale of malt and brewed beverages or
28consumption off the premises in the same licensed area, a
29wine and spirits store may not sell malt or brewed beverages
30within its licensed premises.

1(14) A wine and spirits retail licensee shall make the
2premises and the facilities involved in the retail operation
3and all of the business and financial books and records of
4the retail operation available at any time for inspection and
5audit by the board and the enforcement bureau. The board
6shall promulgate regulations regarding the records that a
7wine and spirits retail licensee must maintain in its
8licensed premises.

9(15) A wine and spirits retail licensee may sell wine or
10spirits between 9 a.m. and 11 p.m. of any day except Sunday
11to:

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

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

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

15(16) In addition to the hours authorized under paragraph
16(15), a wine and spirits retail licensee may, upon purchasing
17a permit from the board at an annual fee of $2,000, sell wine
18or spirits on Sunday between the hours of 9 a.m. and 9 p.m.
19to:

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

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

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

23(17) A wine and spirits retail licensee may not employ
24an individual under 18 years of age to work on the licensed
25premises. An employee under 21 years of age of a wine and
26spirits retail licensee may not engage in the sale of liquor.

27(18) A wine and spirits retail licensee may not hold a
28wine and spirits wholesale license.

29(19) A wine and spirits retail licensee that is a
30corporation, a limited liability company, a limited

1partnership, a partnership, an association or other legal
2entity, must be organized under the laws of this
3Commonwealth.

4(20) A wine and spirits retail licensee who is an
5individual must be a citizen of the United States and a
6resident of this Commonwealth.

7(21) A wine and spirits retail licensee shall:

8(i) comply with the responsible alcohol management
9program training under section 471.1; and

10(ii) ensure that all wine and spirits store managers
11and employees who may engage in the sale of liquor attend
12required training within six months of commencing
13employment.

14(22) A wine and spirits retail licensee may place its
15license in safekeeping for a period not to exceed two years:

16(i) pending transfer of the license from person-to-
17person or place-to-place, or both; or

18(ii) during renovation of the premises upon which
19retail operations are conducted.

20(23) A wine and spirits retail license which remains in
21safekeeping for a period that exceeds two consecutive years
22shall be forfeited and reauctioned by the board in a manner
23consistent with this subarticle.

24(24) Except as set forth in paragraph (17), an
25individual under under 21 years of age may not enter the
26licensed areas of the wine and spirit retail licensee unless
27accompanied by an adult.

28(25) A wine and spirits retail licensee shall utilize a
29transaction scan device to verify the age of an individual
30before making a sale of alcohol. As used in this paragraph,

1the term "transaction scan device" means a device capable of
2deciphering in an electronically readable format the
3information encoded on the magnetic strip or bar code of an
4identification card under section 495(a).

5(26) A wine and spirits retail licensee may not sell a
6liquor product at a price less than its underlying cost.

7(27) A wine and spirits retail licensee may not provide
8tasting samples of liquor on the premises where retail
9operations are conducted except in the manner set forth in
10the board's regulations related to tasting samples provided
11by sponsors.

12(28) A wine and spirits retail licensee may not require
13a customer to purchase a membership or pay a fee in order to
14purchase products, including wine and spirits, from the
15premises.

16(29) In an inquiry or investigation by the department,
17the board or the enforcement bureau, a wine and spirits
18retail licensee shall cooperate fully and provide requested
19information.

20(30) A wine and spirits retail licensee shall be
21considered a State liquor store for the purposes of
22collecting and remitting taxes consistent with the act of
23March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
241971, from a person other than a person licensed to sell
25liquor for consumption on the premises under Article IV.

26(31) A wine and spirits retail licensee shall devote a
27section of its sales space for products sold by holders of
28limited winery, limited distillery and distillery licenses
29and shall attempt to diversify product selection with liquor
30produced by those holders.

1(c) Sanctions.--

2(1) A wine and spirits retail licensee that fails to
3abide by any condition contained in the licensee's statement
4of conditions or commits any violation of this act or other
5Federal or State law shall be subject to citation by the
6enforcement bureau.

7(2) A citation under paragraph (1) may result in:

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

9(ii) nonrenewal of a license;

10(iii) revocation of temporary operating authority;
11or

12(iv) other penalties authorized under sections 471
13and 494.

14SUBARTIC<-LE B

15WINE AND SPIRITS RETAIL LICENSES

16Section 311-A. Issuance of wine and spirits retail licenses,
17fees, taxes.

18(a) Sale of retail licenses.--The board may award not more
19than 1,200 wine and spirits retail licenses to qualified
20applicants, provided that when the State stores close in a given
21county because the wine and spirits retail licenses have
22commenced operation, the department, in cooperation with the
23board, shall determine if it is necessary to issue additional
24wine and spirits retail licenses for customer convenience and
25access. If the department determines more wine and spirits
26retail licenses are needed, the department may issue not more
27than 600 additional wine and spirits retail licenses.

28(b) License classification.--Wine and spirits retail
29licenses shall be awarded as follows:

30(1) For the first 12 months after the enactment of this

1section, the board shall receive applications from
2distributor licensees licensed under section 431. A
3distributor licensee applying for a wine and spirits retail
4license must operate out of a facility with a minimum of
51,500 square feet of retail space and dedicate a minimum of
650% of shelf space for the sale of malt and brewed beverages.

7(2) At the conclusion of the 12-month period under
8paragraph (1), the board may issue the remaining wine and
9spirits retail licenses on a first-come, first-served basis.
10A private wine and spirits retail licensee must operate in a
11facility with not less than 1,500 square feet of retail
12space.

13(c) License allocation.--

14(1) The board shall allocate the aggregate number of
15wine and spirits retail licenses to be available in each
16county.

17(2) A county may not be allocated fewer wine and spirits
18retail licenses than the number of licensed distributors in
19the county.

20(3) A wine and spirits retail licensee may determine
21whether it will sell wine or spirits or both. If a wine and
22spirits retail licensee elects to sell either wine or
23spirits, the board shall consider that one wine and spirits
24retail license and only the licensee will have the ability to
25pay an additional fee in the future to sell both wine and
26spirits.

27(d) License application.--An applicant for a wine and
28spirits retail license shall file a written application with the
29board in the form and containing the information as the board
30shall prescribe from time to time, which must be accompanied by

1a filing fee and license fee as prescribed under subsection (f).
2An application must contain:

3(1) a description of the part of the premises for which
4the applicant desires a license;

5(2) whether the applicant desires to sell wine, spirits
6or both on the licensed premises. Notwithstanding any other
7provision of this act, an applicant that chooses to sell wine
8or spirits may make application at a later date to the board
9to sell both products and be granted that authority after
10paying the proper fees; and

11(3) other information that the board may prescribe.

12The board may not require physical alterations, improvements or
13changes to the licensed premises until the wine and spirits
14license application has been approved.

15(e) Other licenses.--Nothing in this act shall prohibit a
16wine and spirits retail licensee from receiving:

17(1) a distributor license under section 431 that
18authorizes the licensee to sell malt and brewed beverages for
19consumption off the premises; or

20(2) a restaurant liquor license or a retail dispenser
21license as long as the restaurant or retail dispenser does
22not have an interior connection to or with the wine and 
23spirits retail licensed premises.

24(f) License fees.--The fees for a wine and spirits retail
25license are as follows:

26(1) For a distributor licensed under section 431 making
27application for a wine and spirits retail license:

28(i) For the privilege of selling wine, the board
29shall require the following fees:

30(A) For a county of the first or second class,

1$30,000.

2(B) For a county of the second class A or third
3class, $37,500.

4(C) For a county of the fourth or fifth class,
5$22,500.

6(D) For a county of the sixth or seventh class,
7$15,000.

8(E) For a county of the eighth class, $7,500.

9(ii) For the privilege of selling spirits, the board
10shall require the following fees:

11(A) For a county of the first or second class,
12$52,500.

13(B) For a county of the second class A or third
14class, $60,000.

15(C) For a county of the fourth or fifth class,
16$45,000.

17(D) For a county of the sixth or seventh class,
18$37,500.

19(E) For a county of the eighth class, $30,000.

20(iii) For the privilege of selling both wine and
21spirits, the board shall require a fee equal to the sum
22of the fees listed above by county. Nothing in this act
23shall prevent a licensee who initially makes application
24to sell either wine or spirits from adding the other
25product at a later date so long as application is made to
26the board and the proper fees are paid.

27(2) For an unlicensed entity making application for a
28wine and spirits retail license:

29(i) For the privilege of selling wine, the board
30shall require the following fees:

1(A) For a county of the first or second class,
2$165,000.

3(B) For a county of the second class A or third
4class, $187,500.

5(C) For a county of the fourth or fifth class,
6$142,500.

7(D) For a county of the sixth or seventh class,
8$120,000.

9(E) For a county of the eighth class, $97,500.

10(ii) For the privilege of selling spirits, the board
11shall require the following fees:

12(A) For a county of the first or second class,
13$232,500.

14(B) For a county of the second class A or third
15class, $262,500.

16(C) For a county of the fourth or fifth class,
17$202,500.

18(D) For a county of the sixth or seventh class,
19$172,500.

20(E) For a county of the eighth class, $142,500.

21(iii) For the privilege of selling both wine and
22spirits, the board shall require a fee equal to the sum
23of the fees listed above by county. Nothing in this act
24shall prevent a licensee who initially makes application
25to sell either wine or spirits from adding the other
26product at a later date so long as application is made to
27the board and the proper fees are paid.

28(3) A restaurant or hotel licensee in good standing that
29applies for a retail wine and spirits license shall pay the
30same amount for the license as a distributor.

1(4) The board may not require a distributor making
2application for a wine and spirits retail license to pay the
3fees in full prior to issuance of the license. A distributor
4making application for a wine and spirits license has 48
5months from the issuance of the license to pay to the board
6the licensing fees plus a fee of 5%. If the licensee fails to
7make a payment to the board on a monthly basis, the board
8shall revoke the wine and spirits retail license and offer it
9on a first-come, first-served basis.

10(g) Taxes.--

11(1) Wine and spirits retail licensees shall be required
12to obtain a sales tax permit from the Department of Revenue.

13(2) Wine and spirits retail licensees shall collect and
14remit to the Department of Revenue all applicable taxes.

15(3) A wine and spirits retail licensee shall be
16considered a Pennsylvania Liquor Store for the purpose of
17collecting and remitting taxes under the act of March 4, 1971
18(P.L.6, No.2), known as the Tax Reform Code of 1971. A wine
19and spirits retail licensee may not be required to pay the
20sales tax when making wholesale purchases but shall collect
21the tax at retail.

22Section 312-A. Postqualification of selected applicants.

23(a) Investigation.--Upon selection of an applicant under
24section 303-A, the Bureau of Licensing of the board shall
25conduct an investigation of an applicant based upon the
26information submitted to evaluate whether:

27(1) the applicant qualifies as a reputable, responsible
28and suitable person to hold a wine and spirits retail license
29and operate a wine and spirits store;

30(2) the applicant proposes an acceptable facility and

1location for a wine and spirits store; and

2(3) the planned operation of the applicant complies with
3this article.

4(b) Authority of the board.--The board may:

5(1) require additional information from an applicant;
6and

7(2) conduct onsite inspections, as necessary, to
8complete the postqualification process.

9(c) Agreement.--The board may enter into an agreement with
10the Pennsylvania State Police or the Office of Inspector General
11to:

12(1) assist the board in the conduct of an investigation
13under this section; and

14(2) provide for the reimbursement of a cost incurred for
15providing assistance.

16(d) Protocol for objections.--The board shall establish
17protocol for receiving written objections from residents,
18churches, hospitals, charitable institutions, schools and public
19playgrounds that are located near a proposed wine and spirits
20store location. The board may consider a written objection in
21the postqualification investigation of applicants. An objector
22under this paragraph may not appeal the decision of the board.

23(e) Investigative fee.--The board may charge a fee to an
24applicant to recover the costs directly related to the board's
25investigation within the postqualification process.

26(f) Acceptance of qualifications.--The qualifications of an
27applicant shall be accepted by the board if the investigation by
28the board reveals the following:

29(1) the applicant and its officers, directors and
30principals, if any, are of good repute, responsible and

1suitable for operating a wine and spirits store; and

2(2) the applicant possesses sufficient financial
3resources to:

4(i) operate a wine and spirits store;

5(ii) pay taxes due; and

6(iii) meet financial obligations;

7(3) the applicant possesses sufficient business
8experience to operate a wine and spirits store;

9(4) the proposed facilities comply with the operational
10requirements of the statement of conditions under this
11article; and

12(5) the proposed location within the community is
13suitable.

14(g) Issuance of license.--If a selected applicant's
15qualifications are accepted by the board, the board shall
16qualify the applicant and issue a wine and spirits retail
17license to the applicant upon the occurrence of the following:

18(1) execution and delivery to the board of the statement
19of conditions required under section 305-A;

20(2) payment of the license fee by certified check or
21wire transfer to a designated restricted account established
22in the State Stores Fund. A distributor licensed under
23section 431 that obtains a wine and spirits retail license
24has 48 months to pay the license fee;

25(3) payment of an outstanding investigation fee; and

26(4) fulfillment of other conditions required by the
27board.

28(h) Approval of qualifications.--If the qualifications of
29the applicant are approved by the board under subsection (f),
30the board shall issue a wine and spirits retail license to the

1successful applicant consistent with the requirements of
2subsection (g).

3(i) License not entitlement.--

4(1) This article is not intended to establish an
5entitlement to a wine and spirits retail license. A wine and
6spirits retail license is a privilege between the board and
7the licensee.

8(2) Between the licensee and a third party, a wine and
9spirits retail license is property.

10(j) Terms of licensure.--

11(1) A wine and spirits retail license is in effect
12unless the board:

13(i) revokes, suspends or fails to renew the license;
14or

15(ii) revokes the operating authority of the licensee
16under the license requirements of this article.

17(2) A wine and spirits retail license is subject to
18renewal every two years consistent with this article.

19(3) This subsection does not relieve a wine and spirits
20retail licensee of the affirmative duty to notify the board
21of a change relating to the status of its license or to other
22information contained in the application materials on file
23with the board.

24Section 313-A. Wine and spirits retail licensee statement of
25conditions.

26(a) Statement of conditions.--The board shall develop a
27statement of conditions to be executed by a wine and spirits
28retail licensee governing the operations of the wine and spirits
29licensee.

30(b) Conditions.--In addition to other conditions the board

1deems necessary or appropriate for a specific wine and spirits
2retail licensee, a statement of conditions under this section
3shall include, at a minimum, the following conditions and impose
4the following obligations and requirements:

5(1) Under section 493.2, a wine and spirits retail
6licensee may not sell or distribute liquor to an individual
7under 21 years of age or to an individual who is visibly
8intoxicated.

9(2) A wine and spirits retail licensee may not operate a
10retail wine and spirits store located within:

11(i) three hundred feet of an elementary or secondary
12school without the approval of the department or board;
13or

14(ii) a municipality that voted to preclude the
15establishment of a State liquor store, unless the
16municipality subsequently votes to permit the board to
17issue a wine and spirits retail license.

18(3) A wine and spirits retail licensee's wine and
19spirits store and the facilities involved in its retail
20operations, including a change to the facilities during the
21term of the license, are subject to:

22(i) inspection and investigation by the board and
23enforcement bureau; and

24(ii) approval of the board and enforcement bureau.

25(4) A wine and spirits retail licensee shall maintain
26adequate security to protect the licensee's inventory from
27unauthorized sale or diversion and prevent its unauthorized
28distribution.

29(5) Unless specifically authorized in this act or with
30the prior approval of the board, a wine and spirits retail

1licensee may not engage in a separate business activity upon
2a licensed premises where retail liquor operations are
3conducted.

4(6) A wine and spirits retail licensee shall notify the
5board within 15 days of a change in persons holding an
6interest in the wine and spirits license.

7(7) A wine and spirits retail licensee shall notify the
8board within 15 days of becoming aware of an arrest, criminal
9indictment or conviction by the following:

10(i) if the licensee is an individual, the licensee;

11(ii) if the licensee is a partnership, a partner;

12(iii) if the licensee is an association, a member;

13(iv) if the licensee is a corporation, an officer, a
14director or a shareholder in the corporation; and

15(v) an affiliate of the licensee.

16(8) A wine and spirits retail licensee shall notify the
17board within 15 days of becoming aware of a violation of this
18article by an individual listed in paragraph (7).

19(9) The premises of a wine and spirits store must be a
20self-contained unit with limited customer access dedicated to
21the sale of liquor and related merchandise. Except for a
22licensee that also holds a distributor license, a wine and
23spirits store may not have an interior connection with
24another business or with a residential building except as
25approved by the board. A purchase of wine and spirits must be
26paid for at a location within the confines of the licensed
27premises.

28(10) A wine and spirits retail licensee shall configure
29its premises in a manner and with adequate safeguards to
30ensure that:

1(i) liquor products are secure; and

2(ii) the licensed area may not be accessed during
3prohibited hours of operation.

4(11) A wine and spirits retail licensee may not hold,
5directly or indirectly, more than five wine and spirits
6retail locations within this Commonwealth or more than one
7wine and spirits retail license within a county.

8(12) A wine and spirits store may sell liquor for
9consumption off the premises and related merchandise within
10the licensed area of the store. A sale of related merchandise
11within the licensed area may not exceed 30% of the gross
12annual sales of a wine and spirits store. Unless the wine and
13spirits retail licensee operates another license that
14authorizes the sale of malt and brewed beverages for
15consumption off the premises in the same licensed area, a
16wine and spirits store may not sell malt or brewed beverages
17within its licensed premises.

18(13) A wine and spirits retail licensee shall make the
19premises and the facilities involved in the retail operation
20and the business and financial books and records of the
21retail operation available at any time for inspection and
22audit by the board and the enforcement bureau. The board
23shall promulgate regulations regarding the records that a
24wine and spirits retail licensee must maintain in its
25licensed premises.

26(14) A wine and spirits retail licensee may sell wine or
27spirits between 9 a.m. and 11 p.m. of any day except Sunday
28to a person that is not licensed under this act.

29(15) In addition to the hours authorized under paragraph
30(14), a wine and spirits retail licensee may, upon purchasing

1a permit from the board at an annual fee of $1,000, sell wine
2or spirits on Sunday between the hours of 9 a.m. and 9 p.m.
3to persons not licensed under this act.

4(16) A wine and spirits retail licensee may not employ
5an individual under 18 years of age to work on the licensed
6premises. An employee of a wine and spirits retail licensee
7under 21 years of age may not engage in the sale of liquor.

8(17) A wine and spirits retail licensee that is a
9corporation, a limited liability company, a limited
10partnership, a partnership, an association or other legal
11entity must be organized under the laws of this Commonwealth.

12(18) A wine and spirits retail licensee who is an
13individual must be a citizen of the United States and a
14resident of this Commonwealth.

15(19) A wine and spirits retail licensee shall:

16(i) comply with the responsible alcohol management
17program training under section 471.1; and

18(ii) ensure that the wine and spirits store managers
19and employees who may engage in the sale of liquor attend
20the responsible alcohol management training within six
21months of commencing employment.

22(20) A wine and spirits retail licensee may place its
23license in safekeeping for a period not to exceed two years:

24(i) pending transfer of the license from person-to-
25person or place-to-place or both; or

26(ii) during renovation of the premises where retail
27operations are conducted.

28(21) A wine and spirits retail license that remains in
29safekeeping for a period that exceeds two years shall be
30forfeited and resold by the board in a manner consistent with

1this subarticle.

2(22) Except as set forth in paragraph (16), an
3individual under 21 years of age may not enter the licensed
4area of a wine and spirits retail licensee unless accompanied
5by an adult.

6(23) A wine and spirits retail licensee shall utilize a
7transaction scan device to verify the age of an individual
8who appears to be under 35 years of age before making a sale
9of liquor. A wine and spirits retail licensee may not sell or
10share data from the use of a transaction scan device provided
11that the licensee may use the data to show the board or
12enforcement bureau that the licensee is in compliance with
13this article. As used in this paragraph, the term
14"transaction scan device" means a device capable of
15deciphering, in an electronically readable format, the
16information encoded on the magnetic strip or bar code of an
17identification card under section 495(a).

18(24) A wine and spirits retail licensee may not sell a
19liquor product at a price less than its underlying cost.

20(25) A wine and spirits retail licensee may not provide
21tasting samples of liquor on the premises where retail
22operations are conducted except in the manner set forth in
23the board's regulations related to tasting samples provided
24by sponsors.

25(26) A wine and spirits retail licensee may not require
26a customer to purchase a membership or pay a fee in order to
27purchase products, including wine and spirits, from the
28premises.

29(27) In an inquiry or investigation by the board or the
30enforcement bureau, a wine and spirits retail licensee shall

1cooperate fully and provide requested information.

2(c) Sanctions.--

3(1) A wine and spirits retail licensee that fails to
4abide by a condition contained in the licensee's statement of 
5conditions or commits a violation of this act or other
6Federal or State law is subject to citation by the
7enforcement bureau.

8(2) A citation under paragraph (1) may result in:

9(i) a fine or suspension or license revocation;

10(ii) nonrenewal of a license;

11(iii) revocation of temporary operating authority;
12or

13(iv) another penalty authorized under sections 471
14and 494.

15SUBARTICLE C

16DIVESTITURE OF WHOLESALE LIQUOR DISTRIBUTION

17Section 321-A. Wholesale divestiture.

18(a) Utilization.--In effectuating the intent of this
19article, the department shall utilize the authority provided
20under section 305-A and any other powers of the department, with
21the full cooperation and assistance of the board.

22(b) Establishment.--On the effective date of this section,
23the department shall establish all of the following:

24(1) An application process and schedule for the
25investigation and award of wine and spirits wholesale
26licenses under this article.

27(2) A blended brand valuation for each brand of liquor
28available for sale in this Commonwealth.

29(3) Procedures and standards governing the relationship
30between wine and spirits wholesale licensees and

1manufacturers and the ability and terms upon which that
2relationship may be terminated.

3(c) Coordination.--

4(1) The department shall:

5(i) coordinate scheduling so that wine and spirits
6wholesale license applications may be received, processed
7and investigated by the board's Bureau of Licensing
8during the retail divestiture process; and

9(ii) begin a coordinated effort to allow the board
10to issue licenses after the board has been substantially<-
11divested of its retail operations 12 months from <-the
12effective date of this section.

13(2) The department must fully divest the board of all
14operations relating to the wholesale distribution of liquor
15within six months of the complete divestiture of the boar<-d's
16retail operations commencing whol<-esale divestiture.

17Section 321.1-A. Issuance of wine and spirits wholesale
18licenses.

19(a) Authorization.--The board may issue wine and spirits
20wholesale licenses under the following conditions:

21(1) The following shall apply:

22(i) One wine and spirits wholesale license may be
23issued by the board to each qualified applicant.

24(ii) A wine and spirits wholesale license shall
25authorize the holder to sell and distribute brands of
26liquor, as proposed by an applicant and approved by the
27department, to wine and spirits retail licensees and
28other licensees of the board authorized to sell or
29distribute liquor under this act, to United States Armed
30Forces facilities located on United States Armed Forces

1installations within this Commonwealth and to the holder
2of a wholesale alcohol purchase permit issued by the
3board.

4(iii) A wine and spirits wholesale license<-e may
5provide for the direct shipment or delivery of products
6to licensees of the board. The alcoholic produc<-ts shipped
7into this Commonwealth must be delivered to the
8wholesaler's licensed premises. Upon delivery, the
9products shall be unloaded, inventoried and remain on the
10licensed premises for 48 hours before delivery is made to
11a retailer. During that time period, the board may
12inspect and inventory wholesale warehouses to verify
13taxes that are required to be paid on the products.

14(2) Subject to the conditions and restrictions of this
15subarticle, wine and spirits wholesale licensees may sell and
16distribute more than one brand of liquor under the same wine
17and spirits wholesale license.

18(3) Upon application by a wine and spirits wholesale
19licensee, the board may amend its initial authorization under
20a wine and spirits wholesale license to include additional
21brands of liquor or exclude previously-approved brands of
22liquor.

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

24(1) On the effective date of this section, the
25department shall determine the wine and spirits wholesale
26license fee for each brand of liquor sold at wholesale by the
27board through its State liquor stores or via special liquor
28order for a continuous period of at least one year. The
29license fee shall be equal to the blended brand valuation for
30each brand of liquor authorized by the wine and spirits

1wholesale license multiplied by the wholesale acquisition
2factor.

3(2) The department shall publish a notice in the
4Pennsylvania Bulletin and on its Internet website of the wine
5and spirits wholesale license fee for each brand of liquor
6determined under paragraph (1). The department shall
7establish deadlines within which an applicant must submit an
8application for a wine and spirits wholesale license for the
9brands of liquor specified by the applicant.

10(3) The department must receive the required license fee
11for the brands of liquor specified by the applicant before a
12wine and spirits wholesale license is issued by the board to
13a successful applicant.

14(c) Brands not previously sold.--

15(1) For brands of liquor that have not been sold by the
16board at State liquor stores or via special liquor order for
17a continuous period of at least one year, the department
18shall calculate the blended brand valuation utilizing sales
19data for any portion of the year that the brand was sold in
20this Commonwealth, after consulting with the board on the
21most recent sales trends of the brand, both within and
22outside this Commonwealth.

23(2) If, during the term of a wine and spirits wholesale
24license, a wine and spirits wholesale licensee proposes to
25sell and distribute a new brand of liquor not previously sold
26in this Commonwealth, the wine and spirits wholesale licensee
27shall apply to the board for permission to sell the brand and
28pay an additional license fee determined in accordance with
29this section. In calculating the blended brand valuation for
30the new products, the board shall evaluate available sales

1data in other markets or sales trends of similar products
2either within or outside this Commonwealth.

3(d) Term.--

4(1) A wine and spirits wholesale license, after payment
5of the required license fee, shall be in effect unless
6suspended, revoked or not renewed under this article.

7(2) The license of a wine and spirits wholesale licensee
8in good standing shall be renewed every two years under this
9article.

10(3) Nothing under this subsection shall be construed to
11relieve a wine and spirits wholesale licensee of the
12affirmative duty to notify the board of changes relating to
13any of the following:

14(i) The status of its license.

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

17Section 322-A. Application for wine and spirits wholesale
18license.

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

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

25(1) Neither the applicant nor any affiliate of the
26applicant has applied for or holds a wine and spirits retail
27license or other license which authorizes the retail sale of
28wine and spirits to consumers.

29(2) The applicant is organized under the laws of this
30Commonwealth if it is any of the following:

1(i) A corporation.

2(ii) A limited liability company.

3(iii) A limited partnership.

4(iv) A partnership.

5(v) An association.

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

8(3) The applicant is a citizen of the United States and
9a resident of this Commonwealth if that applicant is a
10natural person.

11(4) Neither the applicant nor any affiliate of the
12applicant, executive officer, director or general or limited
13partner of the applicant or person holding, directly or
14indirectly, a controlling interest in the applicant has been
15convicted of a crime listed under subsection (d)(10).

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

17(1) A properly licensed importing distributor of malt
18and brewed beverages from applying for and, if approved,
19being issued a wine and spirits wholesale license.

20(2) The holder of a limited winery license, a limited
21distillery license or a distillery license issued by the
22board from acquiring a wine and spirits wholesale license.

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

27(1) The name, address and tax identification number of
28the applicant.

29(2) A statement as to whether the applicant is an
30individual, corporation, limited liability company, limited

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

4(3) If the applicant is not an individual, the name and
5residence address of each executive officer, director,
6general or limited partner or person holding a controlling
7interest in the applicant.

8(4) If the applicant is an association, the name and
9residence address of each person constituting the
10association.

11(5) A list of the brands of liquor the applicant
12proposes to engage in wholesale distribution on a Statewide
13basis.

14(6) A sworn statement that the applicant has entered
15into a contractual relationship with one or more liquor
16manufacturers, importers or vendors of record for the
17distribution in this Commonwealth of a brand or brands of
18liquor, regardless of whether the contractual relationship is
19contingent upon the board issuing a wine and spirits
20wholesale license to the applicant.

21(7) The proposed location and proof of ownership or
22lease for the wholesale operation, including proposed
23warehouses, if available.

24(8) Floor plans for any facility proposed to be used in
25wholesale operations and existing design plans for any
26facility that is planned, but not yet constructed, to the
27extent the floor plans are available.

28(9) Information disclosing all arrests of and all
29citations issued for nonsummary offenses to an applicant and
30any affiliate of the applicant, executive officer, director

1or general or limited partner of the applicant or person
2holding a controlling interest in the applicant. The
3information shall include:

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

6(ii) The specific offense charged or cited.

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

11(10) A sworn statement that the applicant and any
12affiliate of the applicant, or any executive officer,
13director or general or limited partner of the applicant or
14person holding a controlling interest in the applicant have
15never been convicted:

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

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

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

23(11) A statement that the applicant intends to
24continuously operate as a wine and spirits wholesale licensee
25for the duration of the license term and to use its best
26efforts to provide a level of service, including product
27availability, reasonably equivalent to the level of service
28currently provided by the Commonwealth.

29(12) A financial statement or letter of credit in a form
30and containing information determined by the department to

1indicate the applicant's financial capability to operate the
2wholesale operation and the estimated volume of wholesale
3business to be conducted annually.

4(13) A current tax certificate issued by the Department
5of Revenue showing the amount of taxes owed to the
6Commonwealth for the applicant and any affiliate of the
7applicant, executive officer, director or general or limited
8partner of the applicant or person holding a controlling
9interest in the applicant.

10(14) A signature and verification by oath or affirmation
11or under penalty of unsworn falsification to authorities by
12one of the following:

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

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

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

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

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

29(1) An application filing fee of $10,000 shall be due
30upon application for a wine and spirits wholesale license.

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

4(2) The department shall establish, charge and collect
5fees from an applicant to recover the costs directly related
6to the board's review and investigation of the application
7for a wine and spirits wholesale license. The board shall
8have the same authority relating to fees as to applications
9for renewal.

10Section 323-A. Review and investigation of application.

11(a) Completeness of application.--

12(1) The following shall apply:

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

16(ii) An application shall be considered incomplete
17if it does not include all applicable fees and all
18information and accompanying documentation required by
19the department. Unpaid taxes identified on the tax 
20certificate required to be filed under section 
21322-A(d)(13) must be paid before the application is 
22considered complete.

23(2) A notification of incompleteness shall state the
24deficiencies in the application that must be corrected prior
25to consideration of the merits of the application.

26(3) The applicant must be afforded a reasonable period
27of time, as determined by the department, to cure the
28deficiencies.

29(4) If the applicant fails to timely cure noticed
30deficiencies within the time specified by the department, the

1application shall be deemed denied by the department without
2further action.

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

10(1) The truth and veracity of the information provided
11in the application.

12(2) The applicant's cooperation and the cooperation of
13any affiliate of the applicant and any executive officer,
14director or general or limited partner of the applicant or
15person holding a controlling interest in the applicant in the
16application process and with any request by the department or
17the board for any information deemed necessary for licensure.

18(3) The good character, reputation and suitability of
19the applicant and any affiliate of the applicant, executive
20officer, director or general or limited partner of the
21applicant or person holding a controlling interest in the
22applicant.

23(4) The applicant possesses sufficient financial
24resources to:

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

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

29(iii) Assume liability for the safe operation of the
30wholesale operations.

1(5) The applicant possesses sufficient financial
2resources and experience to create and maintain a successful
3and efficient wholesale operation that provides service at a
4level that is reasonably equivalent to the level of service
5currently provided in this Commonwealth on the effective date
6of this section.

7(6) The applicant has entered into a contractual
8relationship with one or more licensed manufacturers,
9importers or vendors of record for the distribution in this
10Commonwealth of a brand or brands of liquor regardless of
11whether the contractual relationship is contingent upon the
12board issuing a wine and spirits wholesale license to the
13applicant.

14(7) The physical facilities proposed to be used in the
15applicant's wholesale operations are located and designed to:

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

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

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

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

26(v) protect the public interest.

27(c) Assistance with investigations.--The department may
28enter into an agreement with the Pennsylvania State Police or
29the Office of Inspector General to assist the department in
30conducting investigations under this section and to provide for

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

4Section 324-A. Issuance of licenses.

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

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

15(c) Denial.--

16(1) If an application is denied, the department shall
17provide the applicant with the specific reasons for the
18denial in the written notification required under subsection
19(a).

20(2) The applicant shall be entitled to a hearing on the
21denial, if a hearing is requested within ten days of the
22department's notification and the request is in writing on a
23form and in a manner determined by the department.

24(3) A hearing under this subsection shall be conducted
25in accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating to
26practice and procedure of Commonwealth agencies).

27(d) Issuance.--After approval of an application, the board
28shall issue a wine and spirits wholesale license to the
29applicant for the exclusive privilege to sell approved brands of
30liquor in this Commonwealth, if the applicant has completed all

1of the following:

2(1) Paid the wine and spirits wholesale license fee
3required under this article. Payment must be made by
4certified check or wire transfer to a designated restricted
5account in The State Stores Fund.

6(2) Paid outstanding application or investigation fees.

7(3) Executed and delivered to the board the statement of
8conditions required under section 325-A.

9(4) Repurchased from the board remaining marketable
10inventory of the brands authorized under its license which
11are owned by the board at the board's purchase order cost and
12paid applicable taxes due and an administrative fee
13determined by the board. The wine and spirits wholesale
14licensee shall coordinate, at its own cost, the removal of
15remaining product owned by the board.

16(5) Fulfilled any other conditions required by the
17department or the board or provided for under this article.

18(e) License as privilege.--

19(1) Nothing under this article is intended or may be
20construed to create an entitlement to a wine and spirits
21wholesale license.

22(2) The authorization to participate in the distribution
23and sale of liquor as a wine and spirits wholesale licensee
24is a privilege conditioned upon this article.

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

26(1) Except as set forth in paragraph (2), if a wine and
27spirits wholesale license has been issued for a particular
28brand of liquor, the board may not engage in the sale of that
29brand of liquor.

30(2) The board may coordinate the repurchase of remaining

1board inventory of brands as provided under Subarticle D.

2(3) The board's Bureau of Licensing shall provide
3adequate notice to the board's Bureau of Supply Chain that a
4wine and spirits wholesale license application is ready for
5license approval to insure that appropriate inventory
6reduction can be effectuated without causing a shortage of
7the brand at issue.

8Section 325-A. Wine and spirits wholesale licensee statement of
9conditions.

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

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

22(1) A wine and spirits wholesale licensee may not sell
23liquor to a person, except a person specified in section
24321.1-A(a)(1).

25(2) A wine and spirits wholesale licensee must serve all
26licensees eligible to purchase and resell liquor under this
27act and must make liquor available for sale to those
28licensees under the same pricing structure.

29(3) Except for a wine and spirits wholesale licensee
30that holds an importing distributor license under section

1431, a wine and spirits wholesale licensee may not sell malt
2or brewed beverages.

3(4) A wine and spirits wholesale licensee may not engage
4in conduct that would constitute any of the following:

5(i) Variable pricing.

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

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

10(5) A wine and spirits wholesale licensee may only sell
11and distribute liquor products in this Commonwealth that are
12subject to a contractual relationship between the wine and
13spirits wholesale licensee and one or more licensed
14manufacturers or importers of wine and spirits.

15(6) (i) A wine and spirits wholesale licensee shall do
16all of the following:

17(A) Acquire liquor exclusively from:

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

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

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

29(ii) If liquor is acquired from an entity affiliated
30with the wine and spirits wholesale licensee, the entity

1shall, for taxation purposes, be considered a licensed
2manufacturer or importer of wine and spirits.

3(7) A wine and spirits wholesale licensee's licensed
4premises and all facilities involved in its wholesale
5operations, including any changes to the facilities during
6the term of the license, shall be subject to the inspection,
7investigation and approval of the department or the board or
8the enforcement bureau.

9(8) A wine and spirits wholesale licensee shall maintain
10adequate security to protect the licensee's inventory from
11unauthorized sale, removal or theft and prevent its
12unauthorized distribution.

13(9) As follows:

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

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

22(10) A wine and spirits wholesale licensee shall collect
23and remit to the Department of Revenue all applicable taxes.

24(11) A wine and spirits wholesale licensee shall be
25considered a State liquor store for the purpose of collecting
26and remitting taxes under the act of March 4, 1971 (P.L.6,
27No.2), known as the Tax Reform Code of 1971, from persons
28licensed to sell liquor for consumption on the premises under
29Article IV.

30(12) A wine and spirits wholesale licensee shall notify

1the board within 15 days of a change in a person holding a
2controlling interest in the licensee.

3(13) A wine and spirits wholesale licensee shall notify
4the board within 15 days of becoming aware of an arrest,
5criminal indictment or conviction by the licensee, an
6affiliate of the licensee or an executive officer, director
7or general or limited partner of the licensee or person
8holding a controlling interest in the licensee.

9(14) A wine and spirits wholesale licensee shall notify
10the board within 15 days of becoming aware of a violation of
11this act by the licensee, an affiliate of the licensee or an
12executive officer, director or general or limited partner of
13the licensee, person holding a controlling interest in the
14licensee or employee of the licensee.

15(15) As follows:

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

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

1system in this Commonwealth.

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

5(16) A wine and spirits wholesale licensee shall make
6the licensed premises, all of the facilities involved in the
7wholesale operation and all of the business and financial
8books and records of the wholesale operation available at any
9time for inspection and audit by the department, the board or
10the enforcement bureau. The board shall promulgate
11regulations regarding the records that a licensee must
12maintain on its premises.

13(17) A wine and spirits wholesale licensee shall
14cooperate fully in an inquiry or investigation by the
15department or the board or the enforcement bureau and provide
16information requested by the department, the board or the
17enforcement bureau.

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

22(19) A wine and spirits wholesale licensee which is a
23natural person must be a citizen of the United States and a
24resident of this Commonwealth.

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

29(1) shall be subject to citation by the enforcement
30bureau; and

1(2) may be subject to:

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

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

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

7Section 326-A. Loss of rights to wholesale brands of liquor.

8The department shall establish procedures and standards
9governing the relationship between wine and spirits wholesale
10licensees and manufacturers and the ability and terms upon which
11that relationship may be terminated. The procedures and
12standards shall incorporate the following principles:

13(1) As follows:

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

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

27(2) If a wine and spirits wholesale licensee does not
28agree to the termination or transfer of its distribution
29rights, the manufacturer may only terminate or transfer the
30rights upon payment to the terminated licensee of reasonable

1compensation, as determined by the board, to refle<-ct the
2value of the wine and spirits wholesale licensee's business
3related to the terminated brand of liquor.

4(3) A voluntary or involuntary termination and transfer
5of the right to distribute the brand of liquor shall comply
6with this section.

7Section 327-A. Transfer of brands of liquor.

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

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

17SUBARTICLE D

18CLOSURE OF STATE LIQUOR STORES

19AND ASSISTANCE FOR DISPLACED EMPLOYEES

20Section 331-A. Closure of State liquor stores.

21(a) Process for closure.--

22(1) The board, in consultation with <-the department and
23its consultant, shall develop a protocol for the closure of
24the State liquor stores which is designed to ensure
25uninterrupted service to the public and licensees during the
26transition to private retail and wholesale distribution of
27liquor.

28(2) The board shall close a designated State liquor
29store within 60 days of receiving notice from the department.
30The board shall, within 60 days of receiving notice from the

1department, wind down operations at the store designated for
2closure.

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

6(1) The board shall review the viability of <-a store
7located within a county where the number of privately owned
8and privately operated wine and spirits retail licenses plus
9the number of grocery store licenses equal the number of
10Heritage State Stores.

11(2) Where the number of Heritage State Stores equals the
12number of privately owned and privately operated wine and
13spirits retail licenses plus the grocery store licenses, the
14board shall provide a rationale to the department for the
15continued operation or closure of a store located in a
16county.

17(3) A Heritage State Store designated for closure shall
18cease operations within 60 days.

19(4) Where the number of privately owned and privately
20operated wine and spirits retail licenses plus the grocery
21store licenses exceed the number of Heritage State Stores by
22a factor of two, the Heritage State Stores within a county
23must close within six months.

24(5) The board may not operate fewer than 100 Heritage
25State Stores within this Commonwealth.

26(b) Disposition of liquor.--The board shall arrange for the
27disposition of the liquor remaining in inventory at a designated
28store. In order to effectuate this subsection, the board may, in
29consultation with the department, do any of the following:

30(1) Coordinate with the vendor of record for the

1repurchase products by the vendor of record.

2(2) Sell products to newly licensed wine and spirits
3retail licensees.

4(3) Transport products for sale at another operating
5State liquor store.

6(c) Disposition of nonliquor State-owned property.--The
7department, in consultation with the board, shall establish a
8procedure for the sale of the nonliquor inventory, property and
9fixtures of all State liquor stores consistent with 62 Pa.C.S.
10Ch. 15 (relating to supply management). Wine and spirits retail
11licensees shall have the opportunity to bid on the items to be
12sold or otherwise participate in the sale. All proceeds from the
13sales shall be deposited into The State Stores Fund.

14(d) Pennsylvania Liquor Store leases.--The board shall
15provide immediate notice to the lessor upon receipt of the
16department's notice to close a designated Pennsylvania Liquor
17Store.

18(e) Hiring restrictions.--

19(1) Notwithstanding any other provision of this act and
20except as provided under subsection (f), the board may not
21hire additional salaried or wage employees for the purpose of
22staffing its retail operations, including its bureau of
23marketing and retail operations, unless explicitly authorized
24by the department.

25(2) Paragraph (1) shall not prohibit the board from
26hiring personnel, with approval from the department, to
27adequately staff its Bureau of Supply Chain for the purpose
28of transitioning its retail and wholesale operations to
29licensees of this article.

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

1(1) Notwithstanding any other provision of law and
2except as provided under paragraph (3), the board, with the
3approval of the department, may temporarily staff a State
4liquor store which has not been designated for closure under
5this section, if staffing and service levels would be
6otherwise compromised. The board may utilize the services of
7an employment agency to carry out this paragraph.

8(2) The act of August 5, 1941 (P.L.752, No.286), known
9as the Civil Service Act, shall not apply to temporary
10employees hired under paragraph (1).

11(3) The board may not employ temporary workers at a
12State liquor store if the board receives notice of closur<-e of
13the State liquor store from the department de<-termines the
14State store must close.

15(4) A temporary worker engaged by the board under this
16subsection shall not be considered a displaced employee.

17Section 331.1-A. Licensee service centers.

18(a) Ad<-equacy.--The board shall work collaboratively with the
19department and the retail divestiture strategy committee to
20ensure that an adequate number of stores designated for sales to
21licensees or licensee service center locations are maintained
22during the retail and wholesale divestiture process so that
23licensees are able to timely acquire products sold by the board.

24(b) Termination.--A State liquor store may not operate<- or
25sell liquor more than four years after the effective date of
26this section.

27Section 332-A. Transition assistance committee.

28(a) Formation.--

29(1) On the effective date of this section, the
30department shall designate individuals to serve on a

1committee for the purpose of managing the staffing transition
2and displacement of employees during the divestiture process.

3(2) The committee, which shall be chaired by a
4representative from the department, shall involve the
5participation of the Office of Administration, the Civil
6Service Commission, the Department of Labor and Industry and
7the board's bureau of human resources, to ensure a
8coordinated approach to allocating personnel and assisting
9displaced employees during the transition to find an
10appropriate position.

11(3) The committee may engage the services of a third-
12party administrator to assist in administering the duties
13under paragraph (2). The procedural constraints of 62 Pa.C.S.
14Pt. I (relating to Commonwealth Procurement Code) shall not
15apply to this paragraph.

16(b) Counseling and placement.--The committee shall
17coordinate with the Office of Administration to provide
18counseling and other general assistance to employees of the
19board who are displaced to transition the employees to other
20employment in either the public or private sector.

21(c) Transition funding.--The costs for the programs provided
22under this subarticle shall be paid for out of the proceeds from
23the divestiture of the board's wholesale and retail operations.

24Section 333-A. Preference in public employment hiring.

25(a) Civil service examinations.--

26(1) A displaced employee who successfully passes a civil
27service appointment examination shall be marked or graded an
28additional three points above the mark or grade credited for
29the examination if all of the following apply:

30(i) The examination is for a paid position

1administered under the act of August 5, 1941 (P.L.752,
2No.286), known as the Civil Service Act, and in the
3classified service existing under the commission's
4jurisdiction.

5(ii) The employee establishes the qualifications
6required by law for appointment to the position.

7(2) The total mark or grade, including the mark-up under
8paragraph (1), obtained by the displaced employee shall
9represent the final mark or grade of the employee and shall
10determine the employee's standing on any eligibility list
11certified or furnished to the appointing power.

12(b) Certification.--The commission shall require the board
13to certify a list of displaced employees under subsection (a).
14Placement on the list by the board shall establish eligibility
15for the preference granted under subsection (a).

16(c) Noncivil service positions.--If a paid State position
17does not require a civil service examination, a displaced
18employee, possessing the requisite qualifications and who is
19eligible for appointment to a paid State position in offices
20under the Governor's jurisdiction within the executive branch
21shall be given a preference in the appointment by the appointing
22authority.

23(d) (Reserved).

24(e) Eligibility.--

25(1) A displaced employee's eligibility for the mark-up
26provided under subsection (a) and for the preference for
27noncivil service positions provided under subsection (c)
28shall cease upon the occurrence of one of the following:

29(i) The displaced employee's appointment or hiring
30into a position in the classified service existing under

1the commission's jurisdiction or into a paid State
2position where no civil service examination is required.

3(ii) Four years from the effective date of this
4section.

5(2) In order to be eligible for the mark-up provided
6under subsection (a) and for the preference for noncivil
7service positions provided under subsection (c), a displaced
8worker must be terminated as a sole and direct result of the
9decision to cease wholesale and retail operations under this
10article and must work until the final day set by the board
11for that employee's job function.

12Section 334-A. Career training and post-secondary education
13grant eligibility.

14(a) Eligibility.--A displaced employee shall be eligible for
15a two-year grant for attending a program of instruction at an
16institution of higher education, including career training and
17adult education courses of study, within one year of the date of
18displacement from State service in the following amount:

19(1) one two thousand dollars per year for attenda<-nce on
20a full-time basis; or

21(2) five hundred one thousand <-dollars per year for
22attendance on a part-time basis.

23(b) Certification.--The board shall certify the list of
24displaced employees to the agency.

25(c) Grant award.--The agency shall make a determination of
26grant eligibility and shall pay the grant directly to the
27institution of higher education attended by the displaced
28employee in a manner consistent with the agency's regulations.

29Section 335-A. Reemployment tax credit.

30(a) Eligibility.--

1(1) A displaced employee shall be eligible for a two-
2year reemployment tax credit voucher in the amount of $1,0<-00
3$2,0<-00 per taxable year.

4(2) The voucher under paragraph (1) shall be made
5available to each displaced employee upon termination of
6employment.

7(3) Each voucher under paragraph (1) shall be certified
8by the board before the voucher is provided to the displaced
9employee.

10(4) The Department of Revenue shall be informed of each
11displaced employee to whom a voucher under paragraph (1) has
12been provided.

13(b) Transfer of voucher.--An employer in this Commonwealth
14who employs a displaced employee on a full-time basis may, upon
15transfer of the voucher from the employee to the employer, use
16the voucher as a credit against the State tax liability of the
17employer, if the employer can demonstrate the following:

18(1) The employee for whom the tax credit is being sought
19was displaced from the board within 12 months of being
20employed by the employer.

21(2) The former board employee has been employed by the
22employer seeking the tax credit on a full-time basis for a
23period not less than one year.

24(c) Voucher submittal.--The employer shall submit the tax
25credit voucher to the Department of Revenue with the information
26required under subsection (b)(1) and (2) to claim a tax credit
27against the employer's liability for a tax identified under
28subsection (d)(2).

29(d) Amount of credit.--

30(1) An employer may claim a reemployment tax credit for

1each job filled by a displaced employee of $1,000 $2,000<- per
2taxable year for a maximum of two taxable years.

3(2) An employer may apply the reemployment tax credit to
4100% of the employer's:

5(i) State corporate net income tax, capital stock
6and franchise tax or the personal tax of a shareholder of
7the company if the company is a Pennsylvania S
8corporation.

9(ii) Insurance premiums tax, gross receipts tax,
10bank and trust company shares tax, mutual thrift
11institutions tax or title insurance companies shares tax.

12(iii) Any combination of the taxes under
13subparagraphs (i) and (ii).

14(3) A displaced employee whose subsequent employment is
15terminated with an employer and who has utilized the
16reemployment tax credit voucher to claim a one-year $1,<-000
17$2<-,000 tax credit may transfer the voucher to a new employer
18who may use the remaining $1,000 $2,000 tax credit a<-s a claim
19against the employer's tax liability for taxes identified
20under paragraph (2).

21(4) The term of the reemployment tax credit voucher may
22not exceed two years from the date the voucher is provided to
23the qualified displaced employee.

24Section 336-A. Protection of existing benefits.

25(a) Contract benefits.--Nothing under this section shall be
26deemed to affect:

27(1) Pension benefits accrued prior to the date of
28separation occurring as a sole and direct result of the
29divestiture of the board's wholesale and retail operations
30under this article.

1(2) Payment of an accrued benefit derived from the terms
2of a preexisting collective bargaining agreement payable upon
3separation from employment.

4(b) Collective bargaining.--As a result of the preferential
5hiring benefits, the tax credit for subsequent employers and the
6protection of benefits arising from an employee's pension or
7from a preexisting collective bargaining agreement under this
8section, the board shall be deemed to have satisfied all
9obligations to bargain over the effects of the decision to cease
10wholesale and retail operations under this article which may
11arise under:

12(1) the act of June 1, 1937 (P.L.1168, No.294), known as
13the Pennsylvania Labor Relations Act; or

14(2) the act of July 23, 1970 (P.L.563, No.195), known as
15the Public Employe Relations Act.

16(c) Local regulation.--This article supersedes a local
17regulation, ordinance or resolution of a political subdivision
18regarding notice to displaced workers.

19SUBARTICLE E

20MISCELLANEOUS PROVISIONS

21Section 341-A. License renewals.

22(a) Renewal.--

23(1) Wine and spirits licenses issued under this article
24shall be subject to renewal every two years, with validation.

25(2) The application for renewal shall be submitted on a
26form provided by the board at least 30 days prior to the
27expiration of the wine and spirits license and shall include,
28at a minimum, an update of the information contained in the
29initial and prior renewal applications and the payment of any
30renewal fee required under this article.

1(3) A wine and spirits license for which a completed
2renewal application and fee has been received by the board
3shall continue to be valid until the board sends written
4notification to the licensee that the board has denied the
5renewal of the license.

6(b) Fee.--

7(1) A renewal fee of $1,000 shall be due upon
8application for the renewal or validation of a wine and
9spirits retail license.

10(2) A renewal fee of $5,000 shall be due upon
11application for the renewal or validation of a wine and
12spirits wholesale license.

13(3) The board may adjust the renewal fee to ensure that
14the fee adequately recovers the costs associated with
15investigating the renewal application.

16(c) Renewal hearings.--The director of the board's Bureau of
17Licensing may object to the renewal of licenses issued under
18this article pursuant to the same authority granted under
19section 470. Hearings and appeals arising from the objections
20shall be conducted in accordance with section 464.

21(d) Revocation of operating authority.--

22(1) The board may revoke the operating authority of a
23wine and spirits license issued under this article if it
24finds that the licensee or any of its affiliates, executive
25officers, directors or general or limited partners or persons
26holding a controlling interest in the licensee:

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

28(ii) has furnished the board with false or
29misleading information; or

30(iii) is no longer reputable or suitable for

1licensure.

2(2) If a wine and spirits license is revoked or not
3renewed, the wine and spirits licensee's authorization to
4conduct business as a wine and spirits licensee shall
5immediately cease until the board notifies the licensee that
6the operating authority has been reinstated.

7(e) Affirmative duty.--Nothing under this section shall
8relieve a wine and spirits licensee of the affirmative duty to
9notify the board of changes relating to the status of its
10license or to other information contained in the application
11materials filed with the board.

12Section 342-A. Revocation, suspension and fines.

13(a) Authority of enforcement bureau.--The enforcement bureau
14shall have the authority to issue a citation against a wine and
15spirits licensee in the same manner as under section 471. The
16bureau may issue a citation to the licensee based on the
17following conduct:

18(1) The licensee violated any of the following:

19(i) A provision of this act.

20(ii) The regulations of the board.

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

22(iv) The licensee violated any other law of this
23Commonwealth.

24(2) The licensee knowingly presented to the board false,
25incomplete or misleading information.

26(3) The licensee pleaded guilty, entered a plea of nolo
27contendere or has been found guilty of a felony by a judge or
28jury in a Federal or State court.

29(4) The licensee failed to operate the business or to
30provide a reasonable level of consumer service.

1(5) The licensee failed to remit taxes as required.

2(b) Administrative Law Judge.--Enforcement matters shall be
3heard by an administrative judge in the same manner as under
4section 471. The administrative law judge may issue a fine and
5either suspend or revoke the license. Appeals may be taken in
6the same manner as under section 471.

7(c) Sales prohibited.--No person may sell liquor at a
8premises if any of the following apply:

9(1) The wine and spirits license applicable to that
10premises has been suspended or revoked or has expired.

11(2) The operating authority for the wine and spirits
12license has been revoked.

13(d) Public sale.--If a wine and spirits retail license is
14revoked, forfeited or surrendered under this article, the board
15shall conduct an auction a sale<- of the license, consistent with
16this article.

17Section 343-A. Sale, assignment or transfer of license.

18(a) Prohibition.--No person may sell, assign or transfer
19their interest in a wine and spirits license granted under this
20article to another person until the board has received,
21investigated and approved a transfer application. If the license
22is a wine and spirits retail license, the wine and spirits
23licensee must have been in continuous operation for at least one
24year prior to the date of the application to transfer the
25license.

26(b) Compliance.--Any person to whom a wine and spirits
27license is transferred must comply with this article prior to
28the transfer of the license.

29(c) Transfer fee.--

30(1) The transfer of a wine and spirits license shall be

1subject to a transfer fee equal to 1% of the license fee paid
2for the license and shall be paid as a condition of the
3transfer of the license.

4(2) The transfer fee applicable to the transfer of
5brands of liquor under section 327-A(b) shall not apply to
6the transfer of a wine and spirits wholesale license.

7(3) A wine and spirits retail license may not be
8transferred to another location outside the county in which
9it was initially issued.

10(d) Change of control.--For the purposes of this section, a
11change of control of a wine and spirits wholesale or retail
12licensee shall be deemed to be a sale, assignment or transfer of
13a wine and spirits wholesale or retail license. A wine and
14spirits wholesale or retail licensee must notify the board
15immediately upon becoming aware of a proposed or contemplated
16change of control.

17Section 344-A. The State Stores Fund.

18All fees, assessments, bid amounts or other charges paid by
19wine and spirits license applicants or licensees shall be paid
20or transferred into a restricted account in The State Stores
21Fund. Any fines collected by the administrative law judge from
22the licensees shall be remitted to the enforcement bureau for
23continued enforcement efforts.

24Section 345-A. Return of fee or bid.

25(a) Wine and spirits wholesale license fee.--The entire wine
26and spirits wholesale license fee paid by a wine and spirits
27wholesale licensee under section 324-A(d)(1) shall be returned
28if this article is amended or otherwise altered by an act of the
29General Assembly within five years of the effective date of this
30section to change provisions relating to the loss of rights to

1wholesale brands of liquors under section 326-A.

2(b) Wine and spirits retail licensee fee or bid amount.--The
3entire wine and spirits retail license fee or retail bid amount
4paid by a wine and spirits retail licensee shall be returned if
5this article is amended or otherwise altered by an act of the
6General Assembly within five years of the effective date of this
7section to authorize additional wine and spirits retail licenses
8under section 311.1-A.

9Section 10. Section 401 of the act, amended December 22,
102011 (P.L.530, No.113), is amended to read:

11Section 401. Authority to Issue Liquor Licenses to Hotels,
12Restaurants and Clubs.--(a) Subject to the provisions of this 
13act and regulations promulgated under this act, the board shall 
14have authority to issue a retail liquor license for any premises 
15kept or operated by a hotel, restaurant or club and specified in 
16the license entitling the hotel, restaurant or club to purchase 
17liquor from a Pennsylvania Liquor Store or a wine and spirits 
18wholesale licensee and to keep on the premises such liquor and, 
19subject to the provisions of this act and the regulations made 
20thereunder, to sell the same and also malt or brewed beverages 
21to guests, patrons or members for consumption on the hotel, 
22restaurant or club premises. Such licensees, other than clubs, 
23shall be permitted to sell malt or brewed beverages for 
24consumption off the premises where sold in quantities of not 
25more than one hundred ninety-two fluid ounces in a single sale 
26to one person as provided for in section 407; except that t<-he 
27licensees acquiring a thirty-pack permit issued by the board may 
28sell to a person a single package prepared for sale or 
29distribution of not more than thirty original containers and 
30totaling not less than three hundred sixty fluid ounces of malt 

1or brewed beverages unless t<-he licensee acquires a retail 
2package reform permit issued by the board under section 407(c). 
3Such licenses shall be known as hotel liquor licenses, 
4restaurant liquor licenses and club liquor licenses, 
5respectively. No person who holds any public office that 
6involves the duty to enforce any of the penal laws of the United 
7States, this Commonwealth or of any political subdivision of 
8this Commonwealth may have any interest in a hotel or restaurant 
9liquor license. This prohibition applies to anyone with arrest 
10authority, including, but not limited to, United States 
11attorneys, State attorneys general, district attorneys, sheriffs 
12and police officers. This prohibition shall also apply to 
13magisterial district judges, judges or any other individuals who 
14can impose a criminal sentence. This prohibition does not apply 
15to members of the General Assembly, township supervisors, city 
16councilpersons, mayors without arrest authority and any other 
17public official who does not have the ability to arrest or the 
18ability to impose a criminal sentence. This section does not 
19apply if the proposed premises are located outside the 
20jurisdiction of the individual in question.

21(b) The board may issue to any club which caters to groups
22of non-members, either privately or for functions, a catering
23license, and the board shall, by its rules and regulations,
24define what constitutes catering under this subsection except
25that any club which is issued a catering license shall not be
26prohibited from catering on Sundays during the hours which the
27club may lawfully serve liquor, malt or brewed beverages.

28Section 10.1. The act is amended by adding sections to rea<-d:

29Section 401.1.  Authority to Issue Liquor Licenses to Grocery
30Stores.--(a) Subject to the provisions of this act and

1regulations promulgated under this act, the board shall have
2authority to issue a retail liquor license for any premises kept
3or operated by a grocery store and specified in the license
4entitling the grocery store to:

5(1) Purchase wine from a Pennsylvania Liquor Store, a wine
6and spirits store and any person licensed by the board as a
7producer of wine and subject to section 505.2.

8(2) Keep on the premises such wine and, subject to the
9provisions of this act and the regulations made hereunder, to
10sell the same to patrons for consumption off the licensed
11premises.

12(b) Licenses issued under this section shall be known as
13grocery store retail liquor licenses.

14(c) No individual who holds any public office that involves
15the duty to enforce any of the penal laws of the United States,
16this Commonwealth or of any political subdivision of this
17Commonwealth may have any interest in a grocery store retail
18liquor license. This prohibition applies to an individual with
19arrest authority, including, but not limited to, police
20officers, sheriffs, district attorneys, State attorneys general
21and United States attorneys. This prohibition shall also apply
22to magisterial district judges, judges or any other individuals
23who may impose a criminal sentence. This prohibition does not
24apply to members of the General Assembly, township supervisors,
25city councilpersons, mayors without arrest authority and any
26other public official who does not have the ability to arrest or
27the ability to impose a criminal sentence. An individual subject
28to this prohibition may have an interest in a grocery store
29retail liquor license if the proposed premises are located
30outside the jurisdiction of the individual.

1Section 403.1.  Applications for Grocery Store Retail
2License.--(a) Every applicant for a grocery store retail
3license or for the transfer of an existing license to another
4premises not then licensed shall file a written application with
5the board in such form and containing such information as the
6board shall from time to time prescribe, which shall be
7accompanied by a filing fee and an annual license fee as set
8forth in section 406.1 of this act. Every such application shall
9contain a description of that part of the grocery store for
10which the applicant desires a license and shall set forth such
11other material information, description or plan of that part of
12the grocery store where it is proposed to keep and sell liquor
13as may be required by the regulations of the board. The
14descriptions, information and plans referred to in this
15subsection shall show the grocery store, or the proposed
16location for the construction of a grocery store, at the time
17the application is made, and shall show any alterations proposed
18to be made thereto, or the new building proposed to be
19constructed after the approval by the board of the application
20for a license or for the transfer of an existing license to
21another premises not then licensed. No physical alterations,
22improvements or changes shall be required to be made to any
23grocery store, nor shall any new building for any such purpose
24be required to be constructed until approval of the application
25for license or for the transfer of an existing license to
26another premises not then licensed by the board. After approval
27of the application, the licensee shall make the physical
28alterations, improvements and changes to the licensed premises,
29or shall construct the new building in the manner specified by
30the board at the time of approval, and the licensee shall not

1transact any business under the license until the board has
2approved the completed physical alterations, improvements and
3changes to the licensed premises, or the completed construction
4of the new building as conforming to the specifications required
5by the board at the time of issuance or transfer of the license,
6and is satisfied that the establishment is a grocery store as
7defined by this act. The board may require that all such
8alterations or construction or conformity to definition be
9completed within six months from the time of issuance or
10transfer of the license. Failure to comply with these
11requirements shall be considered cause for revocation of the
12license. No such license shall be transferable between the time
13of issuance or transfer of the license and the approval of the
14completed alterations or construction by the board and full
15compliance by the licensee with the requirements of this act
16unless full compliance is impossible for reasons beyond the
17licensee's control, in which event, the license may be
18transferred by the board as provided in this act.

19(b)  If the applicant is a natural person, the applicant's
20application must show that the applicant is a citizen of the
21United States and has been a resident of this Commonwealth for
22at least two years immediately preceding the applicant's
23application.

24(c)  If the applicant is a corporation, the application must
25show that the corporation was created under the laws of this
26Commonwealth or holds a certificate of authority to transact
27business in this Commonwealth, that all officers, directors and
28stockholders are citizens of the United States and that the
29manager of the grocery store retail license is a citizen of the
30United States.

1(d)  Each application shall be signed and verified by oath or
2affirmation by the owner, if a natural person, or, in the case
3of an association, by a member or partner thereof, or, in the
4case of a corporation, by an executive officer thereof or any
5person specifically authorized by the corporation to sign the
6application, to which shall be attached written evidence of his
7authority.

8(e)  Every applicant for a new license or for the transfer of
9an existing license shall post, for a period of at least thirty
10days beginning with the day the application is filed with the
11board, in a conspicuous place on the outside of the premises or
12at the proposed new location for which the license is applied, a
13notice of such application. The notice shall be in such form, be
14of such size and contain such provisions as the board may
15require by its regulations. Proof of the posting of such notice
16shall be filed with the board. The posting requirement imposed
17by this subsection shall not apply to license applications
18submitted for public venues.

19(f)  If any false statement is intentionally made in any part
20of the application, the affiant shall be deemed guilty of a
21misdemeanor and, upon conviction, shall be subject to the
22penalties provided by this article.

23(g)  Upon receipt of an application for a new license or
24transfer of an existing license to a new location, the board
25shall immediately notify, in writing, the municipality in which
26the premises proposed to be licensed are located.

27Section 11. Section 404 of the act, amended January 6, 2006
28(P.L.1, No.1), is amended to read:

29Section 404. Issuance, Transfer or Extension of Hotel,
30Restaurant and Club Liquor Licenses.--Upon receipt of the

1application and the proper fees, and upon being satisfied of the
2truth of the statements in the application that the applicant is
3the only person in any manner pecuniarily interested in the
4business so asked to be licensed and that no other person will
5be in any manner pecuniarily interested therein during the
6continuance of the license, except as hereinafter permitted, and
7that the applicant is a person of good repute, that the premises
8applied for meet all the requirements of this act and the
9regulations of the board, that the applicant seeks a license for
10a hotel, restaurant or club, as defined in this act, and that
11the issuance of such license is not prohibited by any of the
12provisions of this act, the board shall, in the case of a hotel
13or restaurant, grant and issue to the applicant a liquor
14license, and in the case of a club may, in its discretion, issue
15or refuse a license: Provided, however, That in the case of any
16new license or the transfer of any license to a new location or
17the extension of an existing license to cover an additional area
18the board may, in its discretion, grant or refuse such new
19license, transfer or extension if such place proposed to be
20licensed is within three hundred feet of any church, hospital,
21charitable institution, school, or public playground, or if such
22new license, transfer or extension is applied for a place which
23is within two hundred feet of any other premises which is
24licensed by the board: And provided further, That the board's
25authority to refuse to grant a license because of its proximity
26to a church, hospital, charitable institution, public playground
27or other licensed premises shall not be applicable to license
28applications submitted for public venues or performing arts
29facilities: And provided further, That the board shall refuse
30any application for a new license, the transfer of any license

1to a new location or the extension of an existing license to
2cover an additional area if, in the board's opinion, such new
3license, transfer or extension would be detrimental to the
4welfare, health, peace and morals of the inhabitants of the
5neighborhood within a radius of five hundred feet of the place
6proposed to be licensed: And provided further, That the board
7shall have the discretion to refuse a license to any person or
8to any corporation, partnership or association if such person,
9or any officer or director of such corporation, or any member or
10partner of such partnership or association shall have been
11convicted or found guilty of a felony within a period of five
12years immediately preceding the date of application for the said
13license. [The board shall refuse any application for a new
14license, the transfer of any license to a new location or the
15extension of any license to cover an additional area where the
16sale of liquid fuels or oil is conducted.] The board may enter
17into an agreement with the applicant concerning additional
18restrictions on the license in question. If the board and the
19applicant enter into such an agreement, such agreement shall be
20binding on the applicant. Failure by the applicant to adhere to
21the agreement will be sufficient cause to form the basis for a
22citation under section 471 and for the nonrenewal of the license
23under section 470. If the board enters into an agreement with an
24applicant concerning additional restrictions, those restrictions
25shall be binding on subsequent holders of the license until the
26license is transferred to a new location or until the board
27enters into a subsequent agreement removing those restrictions.
28If the application in question involves a location previously
29licensed by the board, then any restrictions imposed by the
30board on the previous license at that location shall be binding

1on the applicant unless the board enters into a new agreement
2rescinding those restrictions. The board may, in its discretion,
3refuse an application for an economic development license under
4section 461(b.1) or an application for an intermunicipal
5transfer of a license if the board receives a protest from the
6governing body of the receiving municipality. The receiving
7municipality of an intermunicipal transfer or an economic
8development license under section 461(b.1) may file a protest
9against the transfer of a license into its municipality, and the
10receiving municipality shall have standing in a hearing to
11present testimony in support of or against the issuance or
12transfer of a license. Upon any opening in any quota, an
13application for a new license shall only be filed with the board
14for a period of six months following said opening.

15Section 11.1. The act is amended by adding a secti<-on to
16read:

17Section 404.1.  Issuance or Transfer of Grocery Store Liquor
18Licenses.--Upon receipt of the application and the proper fees,
19and upon being satisfied of the truth of the statements in the
20application that the applicant is the only person in any manner
21pecuniarily interested in the business so asked to be licensed
22and that no other person will be in any manner pecuniarily
23interested therein during the continuance of the license, except
24as hereinafter permitted, and that the applicant is a person of
25good repute, that the premises applied for meet all the
26requirements of this act and the regulations of the board, that
27the applicant seeks a license for a grocery store, as defined in
28this act, and that the issuance of such license is not
29prohibited by any of the provisions of this act, the board shall
30grant and issue to the applicant a liquor license: Provided,

1however, That in the case of any new license or the transfer of
2any license to a new location the board may, in its discretion,
3grant or refuse such new license, transfer or extension if such
4place proposed to be licensed is within three hundred feet of
5any church, hospital, charitable institution, school, or public
6playground, or if such new license, transfer or extension is
7applied for a place which is within two hundred feet of any
8other premises which is licensed by the board: And provided
9further, That the board shall refuse any application for a new
10license, the transfer of any license to a new location or the
11extension of an existing license to cover an additional area if,
12in the board's opinion, such new license, transfer or extension
13would be detrimental to the welfare, health, peace and morals of
14the inhabitants of the neighborhood within a radius of five
15hundred feet of the place proposed to be licensed: And provided
16further, That the board shall have the discretion to refuse a
17license to any person or to any corporation, partnership or
18association if such person, or any officer or director of such
19corporation, or any member or partner of such partnership or
20association shall have been convicted or found guilty of a
21felony within a period of five years immediately preceding the
22date of application for the said license. The board may enter
23into an agreement with the applicant concerning additional
24restrictions on the license in question. If the board and the
25applicant enter into such an agreement, such agreement shall be
26binding on the applicant. Failure by the applicant to adhere to
27the agreement will be sufficient cause to form the basis for a
28citation under section 471 and for the nonrenewal of the license
29under section 470. If the board enters into an agreement with an
30applicant concerning additional restrictions, those restrictions

1shall be binding on subsequent holders of the license until the
2license is transferred to a new location or until the board
3enters into a subsequent agreement removing those restrictions.
4If the application in question involves a location previously
5licensed by the board, then any restrictions imposed by the
6board on the previous license at that location shall be binding
7on the applicant unless the board enters into a new agreement
8rescinding those restrictions.

9Section 12. Section 405(c) of the act, amended April 29,
101994 (P.L.212, No.30), is amended to read:

11Section 405. License Fees.--* * *

12(c) All license fees authorized under this section shall be
13collected by the board for the use of the municipalities in
14which such fees were collected[.] if the municipalities receive 
15services from a municipal police department. Fees collected in 
16municipalities that do not receive service from a municipal 
17police department must be transferred to the enforcement bureau 
18for continued enforcement efforts.

19* * *

20Section 13. Section 406(e)(1) of the act, amended Decemb<-er
2122, 2011 (P.L.530, No.113), is amended to read:

22Section 406. Sales by Liquor Licensees; Restrictions.--* * *

23Section 13. Section 406(a)(3) and (e)(1) of the act, amended<-
24December 22, 2011 (P.L.530, No.113), are amended and subsection 
25(e) is amended by adding a paragraph to read:

26Section 406. Sales by Liquor Licensees; Restrictions.--(a)
27* * *

28(3) Hotel and restaurant liquor licensees, municipal golf
29course restaurant liquor licensees and privately-owned public
30golf course restaurant licensees may sell liquor and malt or

1brewed beverages on Sunday between the hours of [eleven] nine
2o'clock antemeridian and two o'clock antemeridian Monday upon
3purchase of a special permit from the board at an annual fee as
4prescribed in section 614-A of the act of April 9, 1929
5(P.L.177, No.175), known as "The Administrative Code of 1929." 
6Notwithstanding this provision, a licensee holding such a permit 
7may begin selling liquor and malt or brewed beverages on Sunday 
8between the hours of nine o'clock antemeridian and eleven 
9o'clock antemeridian provided that the licensee offers a meal 
10beginning at nine o'clock antemeridian. Airport restaurant
11liquor licensees may sell liquor and malt or brewed beverages on
12Sunday between the hours of seven o'clock antemeridian and two
13o'clock antemeridian Monday upon purchase of a special permit
14from the board at an annual fee as prescribed in section 614-A
15of the act of April 9, 1929 (P.L.177, No.175), known as "The
16Administrative Code of 1929."

17* * *

18(e) (1) The holder of a hotel license or the holder of a 
19restaurant license located in a hotel may allow persons to 
20transport liquor or malt or brewed beverages from the licensed 
21portion of the premises to the unlicensed portion of the 
22premises, so long as the liquor or malt or brewed beverages 
23remain on the hotel property. In addition, a holder of a 
24restaurant or club license located on a golf course may sell, 
25furnish or give liquor or malt or brewed beverages on the 
26unlicensed portion of the golf course so long as the liquor or 
27malt or brewed beverages remain on the restaurant, club or golf 
28course. 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. Notwit<-hstanding this 
4paragraph, the holder of a hotel license or a restaurant license 
5may sell up to six bottles of wine for consumption off the 
6licensed premises so long as the bottles remain sealed. [<-In 
7addition, the holder of a hotel license or a restaurant license 
8may allow persons who have purchased but only partially consumed 
9a bottle of wine on the premises to remove the bottle from the 
10premises so long as the bottle was purchased in conjunction with 
11a meal which was consumed on the premises and so long as the 
12bottle is resealed.] No<-twithstanding this paragraph, the holder 
13of a hotel license or a restaurant license may sell up to six 
14bottles of wine for consumption off the licensed premises so 
15long as the bottles remain sealed and the holder has obtained a 
16wine-to-go permit as authorized under section 493(35). In 
17addition, the holder of a hotel license or a restaurant license 
18may allow a person who has purchased but only partially consumed 
19a bottle of spirits on the premises to remove the bottle from 
20the premises so long as the bottle is resealed. For purposes of 
21this subsection, "wine" shall have the meaning given to it under 
22section 488(i). For purposes of this section and section 432, 
23"meal" shall mean food prepared on the premises, sufficient to 
24constitute breakfast, lunch or dinner; it shall not mean a 
25snack, such as pretzels, popcorn, chips or similar food.

26* * *

27(3) The holder of a restaurant license whose prem<-ises has an 
28interior connection to a grocery store may allow a purchase of 
29beer and wine for consumption off the premises to be paid for at 
30a point of sale other than a point of sale located on the 

1licensed premises.

2Section 13.1. The act is amended by adding a section to
3read:

4Section 406.2.  Sales by Grocery Store Retail Licensees and
5Restrictions.--(a) Every grocery store retail licensee may sell
6wine for consumption off the licensed premises from any location
7within the licensed premises. Educational information regarding
8the types of products sold by the grocery store retail licensee
9and regarding the responsible consumption of alcohol shall be
10displayed and readily available wherever wine is displayed.
11Grocery store retail licensees may display the alcohol products
12they offer for sale on shelving units and systems, and in or on
13refrigerated cases and equipment, within the discretion of the
14licensee, provided that such displays are not designed to
15attract minors and, provided further, that the manner and method
16of display allows access by all customers, including the
17physically dependent.

18(b) Grocery store retail licensees may sell wine in any
19quantity for consumption off the licensed premises.

20(c) Grocery store retail licensees may not charge a
21membership fee in order for customers to make purchases from the
22grocery store.

23(d) Sales by grocery store retail licensees shall be made
24via grocery store registers, well designated with signage and
25manned by sales clerks who are at least eighteen years of age
26and have been RAMP-trained and utilizing a transaction scan
27device for any purchases.

28(e) Grocery store retail licensees may store alcohol in a
29storage area or storage areas not accessible to the public
30provided such storage areas are:

1(1) locked at all times when not being accessed by the
2licensees' employes; and

3(2) identified by dimensions and location on forms submitted
4in advance to the board.

5(f) Grocery store retail licensees may sell wine from seven
6o'clock antemeridian until eleven o'clock postmeridian every day
7except Sunday.

8(g) Grocery store retail licensees may sell wine from nine
9o'clock antemeridian until eleven o'clock postmeridian on
10Sundays upon submission to the board of a Sunday sales permit
11application and fee of one thousand five hundred dollars
12($1,500) per year.

13(h) Grocery store retail licensees shall be permitted to
14hold:

15(1) Tastings at any location in the grocery store, provided
16the tastings are in compliance with the provisions and
17regulations regarding tastings held on restaurant licensed
18premises.

19(2) Educational classes, including cooking classes, "how to"
20classes, seminars and the like, regarding the proper or
21recommended use, consumption, identification, pairing,
22appellation, aging, storage, characteristics, service,
23presentation and the like, of the alcohol products that they
24offer for sale, during which classes the incidental consumption
25of alcohol by registered participants of lawful age shall be
26permitted; such classes may be free of charge to participants or
27may be at fee.

28(i) Grocery store retail licensees shall be permitted to
29hold restaurant licenses issued for areas within the same
30building for which the grocery store retail license has been

1issued or for a different building. Grocery store retail
2licenses and restaurant licenses issued for areas within the
3same grocery stores may be issued for areas that are adjacent,
4abutting and contiguous and the board shall approve interior
5connections between such areas. In the event that a grocery
6store retail license and a restaurant license are issued for the
7same grocery store, wine may only be sold for off-premises
8consumption in the area licensed for grocery store retail sales.

9(j) Grocery store retail licensees may not sell wine at a
10price less than its underlying cost.

11(k)  Grocery store retail licensees shall buy wine sold
12pursuant to their grocery store retail license from the board, a
13wine and spirits wholesale licensee or a winery licensed by the
14Commonwealth.

15(l) All products purchased by grocery store retail licensees
16and all products purchased by restaurant and eating place
17licensees owned by the same individual or company must be
18separately purchased from the board or a wine and spirits
19wholesale licensee as required by this act and may not be
20purchased from another retail licensee. Separate records must be
21maintained for all purchases and sales by all grocery store
22retail licensees and restaurant or eating place licensees,
23whether or not located within the same building or owned by the
24same individual or company.

25(m) The following shall apply:

26(1) The retail license fee payable one time upon application
27to the board for issuance of the license, shall be as follows:

28(i) For grocery stores located in counties of the first
29class or counties of the second class, one hundred sixty-five
30thousand dollars ($165,000).

1(ii) For grocery stores located in counties of the second
2class A or counties of the third class, one hundred eighty-seven
3thousand five hundred dollars ($187,500).

4(iii) For grocery stores located in counties of the fourth
5class or fifth class, one hundred forty-two thousand five
6hundred dollars ($142,500).

7(iv) For grocery stores located in counties of the sixth
8class or seventh class, one hundred twenty thousand dollars
9($120,000).

10(v) For grocery stores located in counties of the eighth
11class, ninety-seven thousand five hundred dollars ($97,500).

12(2) Grocery store retail licenses shall be renewed every two
13years. The renewal fee submitted each year shall be:

14(i) For grocery stores located in counties of the fifth
15class, counties of the sixth class, counties of the seventh
16class or counties of the eighth class, two thousand dollars
17($2,000).

18(ii) For grocery stores located in counties of the first
19class, counties of the second class, counties of the second
20class A, counties of the third class or counties of the fourth
21class, four thousand dollars ($4,000).

22(3) The board may accept applications to transfer grocery
23store retail licenses to new locations, for the same owner, upon
24submission of transfer applications and fees submitted to the
25board in the following amounts:

26(i) For transfers to counties of the fifth class, counties
27of the sixth class, counties of the seventh class or counties of
28the eighth class, five thousand dollars ($5,000).

29(ii) For transfers to counties of the first class, counties 
30of the second class, counties of the second class A, counties of 

1the third class or counties of the fourth class, ten thousand 
2dollars ($10,000).

3Section 14. Section 407 of the act, amended November 29, 
42006 (P.L.1421, No.155) and June 28, 2011 (P.L.55, No.11), is 
5amended to read:

6Section 407. Sale of Malt or Brewed Beverages by Liquor
7Licensees.--(a) Every liquor license issued to a hotel, 
8restaurant, club, or a railroad, pullman or steamship company 
9under this subdivision (A) for the sale of liquor shall 
10authorize the licensee to sell malt or brewed beverages at the 
11same places but subject to the same restrictions and penalties 
12as apply to sales of liquor, except that licensees other than 
13clubs may sell malt or brewed beverages for consumption off the 
14premises where sold in quantities of not more than one hundred 
15ninety-two fluid ounces in a single sale to one person<-, however, 
16the licensees acquiring a thirty-pack permit issued by the board 
17may sell to a person a single package prepared for sale or 
18distribution of not more than thirty original containers and 
19totaling not less than three hundred sixty fluid ounces of malt 
20or brewed beverages unless the licensee acquires a reta<-il 
21package permit issued by the board under section 407(c). The 
22sales may be made in either open or closed containers, Provided, 
23however, That a municipality may adopt an ordinance restricting 
24open containers in public places. No licensee under this 
25subdivision (A) shall at the same time be the holder of any 
26other class of license, except a retail dispenser's license 
27authorizing the sale of malt or brewed beverages only.

28(b) (1) Notwithstanding any other provision of law or any
29existing permit authorizing the sale of malt or brewed beverages
30for consumption off the premises, a restaurant licensee located

1in a city of the first class who is otherwise permitted to sell
2malt or brewed beverages for consumption off the premises may
3not do so after October 31, 2007, unless it acquires a permit
4from the board.

5(2) The application for a permit to sell malt or brewed 
6beverages for consumption off the premises shall be on forms 
7designated by the board and contain such information as the 
8board may require. The application and renewal fee shall be as 
9prescribed in section 614-A(27) of the act of April 9, 1929 
10(P.L.177, No.175), known as "The Administrative Code of 1929." 
11However, no applicant who currently has a permit shall be 
12required to pay any additional fees under section 614-A(27) of 
13"The Administrative Code of 1929" in order to continue selling 
14malt or brewed beverages for consumption off the premises at its 
15currently licensed location for the licensing term beginning 
16November 1, 2007, and ending October 31, 2008.

17(3) The application for a permit to sell malt or brewed
18beverages for consumption off the premises must be accompanied
19by a copy of the approval of such request by the hearing board
20authorized by this section.

21(4) A city of the first class shall create a hearing board
22within its Department of Licenses and Inspections to hear
23requests from licensees who are seeking a permit from the
24hearing board authorizing the licensee to sell malt or brewed
25beverages for consumption off the premises. Each hearing board
26shall consist of three persons appointed by the mayor of the
27city of the first class, who are subject to approval by the city
28council of the city of the first class. Each person so appointed
29shall serve at the pleasure of the appointing authority. The
30hearing board may, in its discretion, hold hearings to adduce

1testimony regarding a request. The hearing board must render a
2decision within ninety days of receipt of a request for approval
3of a permit to sell malt or brewed beverages for consumption off
4the premises. The hearing board must approve the request unless
5it finds that doing so would adversely affect the welfare,
6health, peace and morals of the city or its residents. A
7decision by the hearing board to deny a request may be appealed
8to the court of common pleas in the county in which the city is
9located. The failure to render a decision by the hearing board
10within the required time period shall be deemed approval of the
11permit.

12(5) Upon being satisfied that the applicant has fulfilled
13all the requirements of this act and the board's regulations,
14the board shall approve the application. Such permits shall
15expire upon the transfer of the license to a new entity or to a
16new location, or both; otherwise, such permits shall expire at
17the same time as the expiration of the underlying license.

18(c) (1) The board may <-issue a retail package reform permit
19to a restaurant, hotel or retail dispenser licensee that applies
20and pays the requisite fee for use at the same place that the
21restaurant, hotel or retail dispenser maintains for the sale of
22malt or brewed beverages. The permit must allow the holder to
23sell in a single transaction not more than twenty-four original
24containers totaling not more than three hundred and eighty four
25fluid ounces of malt and brewed beverages so long as the
26original containers are in a package prepared for sale of
27distribution by the manufacturer of not more than twelve
28original containers.

29(2) For the permit issued under paragraph (1), the board
30shall require an annual fee of five hundred dollars ($500).

1Section 15. Section 408.12(g) and (h) of the act, added July
21, 1994 (P.L.402, No.61), are amended to read:

3Section 408.12. Wine Auction Permits.--* * *

4(g) Any wine sold under this section shall be purchased from
5a Pennsylvania Liquor Store, a wine and spirits retail licensee,
6a Pennsylvania limited winery or any seller authorized to sell
7wine by the bottle or case in this Commonwealth, including a 
8big-box retail store licen<-see, grocery store licensee, pharmacy 
9licensee, enhanced distributor licensee, restaurant liquor 
10licensee or hotel liquor licensee, or shall be donated by a
11person who is neither a licensee nor a permittee who has legally
12acquired the wine and legally possesses it in this Commonwealth.

13(h) If any wine sold under this section is purchased from a
14seller other than a Pennsylvania Liquor Store, wine and spirits 
15retail licensee, big-box retail store licensee,<- grocery store 
16licensee, pharmacy licensee, enhanced distributor licensee,<- 
17restaurant liquor licensee, hotel liquor licensee or [a]
18Pennsylvania limited winery, the permittee shall provide thirty
19days' notice to the board of its intent to purchase such wine.
20The notice shall include a description of the wine to be
21purchased, the quantity to be purchased, the name of the seller
22and any other information which the board may require. The
23permittee shall comply with all board regulations regarding
24taxes and fees.

25* * *

26Section 16. Section 410(e) of the act is amended to read:

27Section 410. Liquor Importers' Licenses; Fees; Privileges;
28Restrictions.--* * *

29(e) Importers' licenses shall permit the holders thereof to
30bring or import liquor from other states, foreign countries, or

1insular possessions of the United States, and purchase liquor
2from manufacturers located within this Commonwealth, to be sold
3outside of this Commonwealth or to Pennsylvania Liquor Stores or 
4wine and spirits wholesale licensees within this Commonwealth,
5or when in original containers of ten gallons or greater
6capacity, to licensed manufacturers within this Commonwealth.

7All importations of liquor into Pennsylvania by the licensed
8importer shall be consigned to the board or the principal place
9of business or authorized place of storage maintained by the
10licensee or a wine and spirits wholesale licensee.

11* * *

12Section 17. The act is amended by adding sections<- to read:

13Section 415. Grocery Store Licenses.--(a) The board is 
14authorized to issue a grocery store license to the operator of a 
15grocery store who has applied for the license.

16(b) The following shall apply:

17(1) An applicant for a grocery store license shall file a
18written 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).

22(2) Except as provided under paragraph (3), the initial 
23license fee shall be twenty-five thousand dollars ($25,000) with 
24an annual renewal fee of twenty-five thousand dollars ($25,000).

25(3) If the applicant is a grocery store with annual gross 
26sales totaling more than two million dollars ($2,000,000), the 
27initial application shall be subject to a license fee of thirty 
28thousand dollars ($30,000) and an annual renewal fee of thirty 
29thousand dollars ($30,000).

30(c) A license issued under this section is considered a

1restaurant liquor license under this act subject to the
2following additional restrictions and privileges:

3(1) A license holder may sell malt or brewed beverages for 
4consumption off the premises in original sealed containers in 
5quantities of no more than one hundred ninety-two fluid ounces 
6in a single sale to one person. The sale of a individual bottle 
7or can of any size is not permitted. The malt or brewed 
8beverages sold must be lawfully procured from a licensed 
9manufacturer or from an importing distributor or distributor who 
10has been appointed to the territory in which the grocery store 
11is physically located.

12(2) A license holder may sell up to six unopened sealed
13bottles of wine for consumption off the premises to nonlicensed
14customers and permit holders. For purposes of this subsection,
15"wine" shall have the meaning given to it under section 488(i).
16The wine sold by grocery store license holders must be lawfully
17procured from a Pennsylvania Liquor Store, licensed limited
18winery or a 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 seven o'clock ante meridian and two o'clock ante
23meridian on Monday upon acquiring a Sunday sales permit from the
24board upon application and payment of a permit fee of two
25thousand dollars ($2,000). A license holder does not need to
26acquire an extended hours food permit in order to remain open
27past two o'clock ante meridian, however alcohol sales may not
28occur 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 alcohol for

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

11(5) A license holder may not provide entertainment as
12otherwise authorized by the special permit available under
13section 493(10).

14(6) A license holder may not acquire an off premises
15catering permit.

16(7) A license holder is not subject to section 493(14) as it
17relates to minors frequenting the licensed premises, except that
18section 493(14) applies in the areas separately licensed for on
19the premises sale, service, storage or consumption of alcohol.

20(8) A license holder is not subject to the prohibition on
21cashing certain checks set forth in section 493(15).

22(9) A license holder is not subject to the cost and total
23display area limitations of section 493(20)(i).

24(10) A license holder is not subject to the restrictions set
25forth in section 499 related to patrons vacating the premises.

26(11) Sales of alcohol for consumption off the premises may
27be paid for at a register designated by the license holder, and
28the register may be used to pay for other items sold by the
29license holder. Sales of alcohol for on premises consumption
30made under a retail license authorizing the sales may only take

1place at a register located within the area licensed for on
2premises sales.

3(12) A license holder shall utilize a transaction scan
4device to verify the age of a person before making a sale of
5alcohol. For purposes of this section, a "transaction scan
6device" is a device capable of deciphering in an electronically
7readable format the information encoded on the magnetic strip or
8bar code of an identification card set forth in section 495(a).

9(13) A license holder is strictly prohibited from selling
10alcohol at a price less than the underlying cost of the product.

11(14) A license holder is prohibited from directly or
12indirectly offering an inducement to purchase alcoholic
13beverages under section 493(24)(i) or engaging in a discount
14pricing practice authorized by this act.

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

17(16) A license may not be issued in a municipality that has
18adopted a resolution prohibiting the issuance of a restaurant
19liquor license unless the municipality subsequently adopts a
20resolution that permits the board to issue a grocery store
21license in the municipality.

22Section 416. Convenience Store Licenses.--(a) The board is
23authorized to issue a convenience store license to the operator
24of a convenience store who has applied for the license.

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

1($10,000) and an annual renewal fee of ten thousand dollars
2($10,000).

3(c) A license issued under this section is considered an
4eating place retail dispenser license under this act subject to
5the following additional restrictions and privileges:

6(1) A license holder may sell malt or brewed beverages for 
7consumption off the premises in original sealed containers in 
8quantities of not more than ninety-six fluid ounces in a single 
9sale to one person. The sale of an individual bottle or can of 
10any size is not permitted. The malt or brewed beverages sold 
11must be lawfully procured from a licensed manufacturer or from 
12an importing distributor or distributor who has been appointed 
13to the territory in which the convenience store is physically 
14located.

15(2) A license holder may not sell liquor on the premises.

16(3) Sales of malt or brewed beverages may occur on Monday
17through Saturday between the hours of seven o'clock ante
18meridian and two o'clock ante meridian of the following day, and
19on Sunday between the hours of eleven o'clock ante meridian and
20two o'clock ante meridian on the following day upon acquiring a
21Sunday sales permit from the board upon application and payment
22of a permit fee of two thousand dollars ($2,000). A license
23holder does not need to acquire an extended hours food permit in
24order to remain open past two o'clock ante meridian, however, no
25alcohol sales may occur until seven o'clock ante meridian of
26that day.

27(4) A license holder is not subject to the definition of an
28"eating place" unless the license holder wishes to sell malt or
29brewed beverages for consumption on the premises. The holder of
30a convenience store license may only sell malt or brewed

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

11(5) A license holder is not allowed to provide entertainment
12as otherwise authorized by the special permit available under
13section 493(10).

14(6) A license holder may not acquire an off premises
15catering permit.

16(7) A license holder is not subject to section 493(14) as it
17relates to minors frequenting the licensed premises, except that
18section 493(14) applies in the areas separately licensed for on
19premises sale, service, storage or consumption of alcohol.

20(8) A license holder is not subject to the prohibition on
21cashing certain checks set forth in section 493(15).

22(9) A license holder is not subject to the cost and total
23display area limitations of section 493(20)(i).

24(10) A license holder is not subject to the restrictions set
25forth in section 499 related to patrons vacating the premises.

26(11) Sales of malt or brewed beverages for consumption off
27the premises may be paid for at a register designated by the
28license holder and the register may be used to pay for other
29items sold by the license holder. Sales of alcohol for
30consumption on the premises made under a retail license

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

3(12) A license holder shall utilize a transaction scan
4device to verify the age of a person before making a sale of
5alcohol. For purposes of this section, a "transaction scan
6device" is a device capable of deciphering in an electronically
7readable format the information encoded on the magnetic strip or
8bar code of an identification card set forth in section 495(a).

9(13) A license holder is strictly prohibited from selling
10alcohol at a price less than the underlying cost of the product.

11(14) A license holder is prohibited from directly or
12indirectly offering an inducement to purchase alcoholic
13beverages under section 493(24)(i) or engaging in a discount
14pricing practice authorized by this act.

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

17(16) A license may not be issued in a municipality that has
18adopted a resolution prohibiting the issuance of an eating place
19retail dispenser license unless the municipality subsequently
20adopts a resolution that permits the board to issue a
21convenience store license in the municipality.

22Section 417. Big-Box Retail Store Licenses.--(a) The board
23is authorized to issue a big-box retail store license to the
24operator of a big-box retail store who has applied for the
25license.

26(b) An applicant for a big-box retail store license shall
27file a written application with the board in the form and
28containing the information as the board prescribes from time to
29time. The application must be accompanied by an application fee
30of seven hundred dollars ($700). The initial application for a

1big-box retail store license shall be subject to a license fee
2of thirty-five thousand dollars ($35,000) and an annual renewal
3fee of thirty-five thousand dollars ($35,000), due at the time
4of renewal or validation of the license.

5(c) A license issued under this section is considered a
6restaurant liquor license under this act subject to the
7following additional restrictions and privileges:

8(1) A license holder may sell to nonlicensed customers malt
9or brewed beverages for consumption off the premises by the
10case. The malt or brewed beverages sold by a big-box retail
11store license holder must be lawfully procured from licensed
12manufacturers, or for those products manufactured outside of the
13Commonwealth, from an importing distributor who has been
14appointed to the territory in which the big-box retail store is
15physically located. A license holder is prohibited from
16transporting, or having transported, a brand of malt or brewed
17beverages purchased from one licensed location to another
18licensed location for the purpose of selling the malt or brewed
19beverages at the other location.

20(2) A license holder may sell to nonlicensed customers and
21permit holders up to six unopened sealed bottles of wine for
22consumption off the premises. For purposes of this subsection,
23"wine" shall have the meaning given to it under section 488(i).
24The wine sold by big-box retail store license holders must be
25lawfully procured from a Pennsylvania Liquor Store, licensed
26limited winery or wholesale licensee.

27(3) Sales of alcohol may occur on Monday through Saturday
28between the hours of seven o'clock ante meridian and two o'clock
29ante meridian of the following day, and on Sunday between the
30hours of eleven o'clock ante meridian and two o'clock ante

1meridian on the following day upon acquiring a Sunday sales
2permit from the board upon application and payment of a permit
3fee of two thousand dollars ($2,000). A license holder does not
4need to acquire an extended hours food permit in order to remain
5open past two o'clock ante meridian, however, no alcohol sales
6may occur until seven o'clock ante meridian of that day.

7(4) A license holder is not subject to the definition of a
8restaurant unless the license holder wishes to sell malt or
9brewed beverages for consumption on the premises. The holder of
10a big-box retail store license may only sell malt or brewed
11beverages and wine for consumption on the licensed premises if
12it holds an appropriate retail license issued by the board that
13authorizes the sale for consumption on the premises at the same
14location. A big-box retail store license holder that holds a
15retail license for consumption on the premises must clearly
16delineate the areas of the licensed premises to be utilized
17under a license. Notwithstanding any other provision of law, a
18convenience store license holder may have an interior connection
19to or with its separately licensed restaurant or eating place.

20(5) A license holder is not allowed to provide entertainment
21as otherwise authorized by the special permit available under
22section 493(10).

23(6) A license holder may not acquire an off premises
24catering permit.

25(7) A license holder is not subject to section 493(14) as it
26relates to minors frequenting the licensed premises, except that
27section 493(14) applies in the areas separately licensed for on
28premises sale, service, storage or consumption of alcohol.

29(8) A license holder is not subject to the prohibition on
30cashing certain checks set forth in section 493(15).

1(9) A license holder is not subject to the cost and total
2display area limitations of section 493(20)(i).

3(10) A license holder is not subject to the restrictions set
4forth in section 499 related to patrons vacating the premises.

5(11) Sales of alcohol for consumption off the premises may
6be paid for at a register designated by the license holder and
7the register may be used to pay for other items sold by the
8license holder. Sales of alcohol for consumption on the premises
9made under a retail license authorizing the sales may only take
10place at a register located within the area licensed for on
11premises sales.

12(12) A license holder shall utilize a transaction scan
13device to verify the age of a person before making a sale of
14alcohol. For purposes of this section, a "transaction scan
15device" is a device capable of deciphering in an electronically
16readable format the information encoded on the magnetic strip or
17bar code of an identification card set forth in section 495(a).

18(13) A license holder is strictly prohibited from selling
19alcohol at a price less than the underlying cost of the product.

20(14) A license holder is not prohibited from directly or
21indirectly offering an inducement to purchase alcoholic
22beverages under section 493(24)(i) or engaging in a discount
23pricing practice authorized by this act.

24(15) A license holder is not subject to the noise
25restrictions of section 493(34).

26(16) A license may not be issued in a municipality that has
27adopted a resolution prohibiting the issuance of a restaurant
28liquor license unless the municipality subsequently adopts a
29resolution that permits the board to issue a big-box retail
30store license in the municipality.

1Section 418. Pharmacy Licenses.--(a) The board is 
2authorized to issue a pharmacy license to the operator of a 
3pharmacy who has applied for the license.

4(b) An applicant for a pharmacy license must file a written 
5application with the board in the form and containing
6information as the board prescribes and an application filing 
7fee of seven hundred dollars ($700). The initial application for 
8a pharmacy license shall be subject to a license fee of 
9seventeen thousand five hundred dollars ($17,500) and an annual 
10renewal fee of seventeen thousand five hundred dollars 
11($17,500).

12(c) A license issued under this section is considered a 
13restaurant liquor license under this act subject to the 
14following additional restrictions and privileges:

15(1) A license holder may sell malt or brewed beverages for 
16consumption off the premises in original sealed containers in 
17quantities of not more than one hundred ninety-two fluid ounces 
18in a single sale to one person. The sale of an individual bottle 
19or can of any size is not permitted. The malt or brewed 
20beverages sold must be lawfully procured from a licensed 
21manufacturer or from an importing distributor or distributor who 
22has been appointed to the territory in which the grocery store 
23is physically located.

24(2) A license holder may sell to nonlicensed customers and
25permit holders up to six unopened sealed bottles of wine for
26consumption off the premises. For purposes of this subsection,
27"wine" shall have the meaning given to it under section 488(i).
28The wine sold by pharmacy store license holders must be lawfully
29procured from a Pennsylvania Liquor Store, licensed limited
30winery or wholesale licensee.

1(3) Sales of alcohol may occur on Monday through Saturday
2between the hours of seven o'clock ante meridian and two o'clock
3ante meridian of the following day, and on Sunday between the
4hours of seven o'clock ante meridian and two o'clock ante
5meridian on Monday upon acquiring a Sunday sales permit from the
6board upon application of a permit fee of two thousand dollars
7($2,000). A license holder does not need to acquire an extended
8hours food permit in order to remain open past two o'clock ante
9meridian, however no alcohol sales may occur until seven o'clock
10ante meridian of that day.

11(4) A license holder is not subject to the definition of a
12"restaurant" unless the license holder wishes to sell alcohol
13for consumption on the premises. The holder of a pharmacy
14license may only sell alcohol for consumption on the licensed
15premises if it holds an appropriate retail license issued by the
16board that authorizes the sale for consumption on the premises
17at the same location. A pharmacy license holder that holds a
18retail license for consumption on the premises must clearly
19delineate the areas of the premises to be utilized under a
20license. Notwithstanding any other provision of law, a pharmacy
21license holder may have an interior connection to or with its
22separately licensed restaurant or eating place.

23(5) A license holder is not allowed to provide entertainment
24as otherwise authorized by the special permit available under
25section 493(10).

26(6) A license holder may not acquire an off-premises
27catering permit.

28(7) A license holder is not subject to section 493(14) as it
29relates to minors frequenting the licensed premises, except that
30section 493(14) applies in the areas separately licensed for on

1premises sale, service, storage or consumption of alcohol.

2(8) A license holder is not subject to the prohibition on
3cashing certain checks set forth in section 493(15).

4(9) A license holder is not subject to the cost and total
5display area limitations of section 493(20)(i).

6(10) A license holder is not subject to the restrictions set
7forth in section 499 related to patrons vacating the premises.

8(11) Sales of alcohol for consumption off the premises may
9be paid for at a register designated by the license holder and
10the register may be used to pay for other items sold by the
11license holder. Sales of alcohol for consumption off the
12premises made under a retail license authorizing the sales may
13only take place at a register located within the area licensed
14for on premises sales.

15(12) A license holder shall utilize a transaction scan
16device to verify the age of a person before making a sale of
17alcohol. For purposes of this section, a "transaction scan
18device" is a device capable of deciphering in an electronically
19readable format the information encoded on the magnetic strip or
20bar code of an identification card set forth in section 495(a).

21(13) A license holder is strictly prohibited from selling
22alcohol at a price less than the underlying cost of the product.

23(14) A license holder is prohibited from directly or
24indirectly offering an inducement to purchase alcoholic
25beverages under section 493(24)(i) or engaging in a discount
26pricing practice authorized by this act.

27(15) A license holder is not subject to the noise
28restrictions of section 493(34).

29(16) A license may not be issued in a municipality that has
30adopted a resolution prohibiting the issuance of a restaurant

1liquor license unless the municipality subsequently adopts a
2resolution that permits the board to issue a pharmacy license in
3the municipality.

4Section 17. Section 411 of the act is amended by a<-dding a
5subsection to read:

6Section 411. Interlocking Business Prohibited.--* * *

7(f) (1) Notwithstanding any other provision of law, a
8manufacturer or licensee and its officers, directors,
9shareholders, servants, agents or employes may contribute, and a
10manufacturer or licensee and its officers, directors,
11shareholders, servants, agents or employes may accept moneys or
12other things of value solely for the administration of a
13responsible alcohol management training program for alcohol
14service personnel as provided for under section 471.1 of this
15act. The moneys or other things of value may be provided by or
16to a manufacturer or licensee and its officers, directors,
17shareholders, servants, agents or employes directly or by or to
18a trade organization consisting, in whole or in part, of a group
19of licensees.

20(2) The manufacturer, licensee and trade organization
21associated with the person providing the moneys or other things
22of value must keep a record of the value of the moneys or other
23things of value provided, the date provided and the entity to
24whom it was provided, as part of the records required under
25section 493(12) of this act.

26(3) The manufacturer, licensee and trade organization
27associated with the person receiving moneys or other things of
28value must keep a record of the value of the moneys or other
29things of value used, as part of the records required under
30section 493(12) of this act.

1Section 18. Section 431(b) of the act, amended December 8,
22004 (P.L.1810, No.239), is amended to read:

3Section 431. Malt and Brewed Beverages Manufacturers',
4Distributors' and Importing Distributors' Licenses.--* * *

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

1transfer would be detrimental to the welfare, health, peace and
2morals of the inhabitants of the neighborhood within a radius of
3five hundred feet of the place proposed to be licensed. [The
4board shall refuse any application for a new license or the
5transfer of any license to a location where the sale of liquid
6fuels or oil is conducted.] The board may enter into an
7agreement with the applicant concerning additional restrictions
8on the license in question. If the board and the applicant enter
9into such an agreement, such agreement shall be binding on the
10applicant. Failure by the applicant to adhere to the agreement
11will be sufficient cause to form the basis for a citation under
12section 471 and for the nonrenewal of the license under section
13470. If the board enters into an agreement with an applicant
14concerning additional restrictions, those restrictions shall be
15binding on subsequent holders of the license until the license
16is transferred to a new location or until the board enters into
17a subsequent agreement removing those restrictions. If the
18application in question involves a location previously licensed
19by the board, then any restrictions imposed by the board on the
20previous license at that location shall be binding on the
21applicant unless the board enters into a new agreement
22rescinding those restrictions. The board shall require notice to
23be posted on the property or premises upon which the licensee or
24proposed licensee will engage in sales of malt or brewed
25beverages. This notice shall be similar to the notice required
26of hotel, restaurant and club liquor licensees.

27Except as hereinafter provided, such license shall authorize
28the holder thereof to sell or deliver malt or brewed beverages
29in quantities above specified anywhere within the Commonwealth
30of Pennsylvania, which, in the case of distributors, have been

1purchased only from persons licensed under this act as
2manufacturers or importing distributors, and in the case of
3importing distributors, have been purchased from manufacturers
4or persons outside this Commonwealth engaged in the legal sale
5of malt or brewed beverages or from manufacturers or importing
6distributors licensed under this article. If the holder<- of a 
7distributor license applies for and receives an enhanced 
8distributor license, issued pursuant to section 431.2, that 
9distributor shall be authorized to sell wine on the same 
10premises where malt or brewed beverages are sold, and shall be 
11authorized to sell malt or brewed beverages in quantities 
12enumerated in section 431.2. If the holder of<- a distributor 
13license applies for and receives a wine and spirits retail 
14license issued pursuant to Article III-A, that distributor shall 
15be authorized to sell wine and/or spirits on the same premises 
16where malt or brewed beverages are sold, and if a distributor 
17licensee applies for and receives a distributor package reform 
18permit issued pursuant to section 431.2, that distributor shall 
19be authorized to sell malt or brewed beverages in quantities 
20enumerated in section 431.2. In the case of an importing
21distributor, the holder of such a license shall be authorized to
22store and repackage malt or brewed beverages owned by a
23manufacturer at a segregated portion of a warehouse or other
24storage facility authorized by section 441(d) and operated by
25the importing distributor within its appointed territory and
26deliver such beverages to another importing distributor who has
27been granted distribution rights by the manufacturer as provided
28herein. The importing distributor shall be permitted to receive
29a fee from the manufacturer for any related storage, repackaging
30or delivery services. In the case of a bailee for hire hired by

1a manufacturer, the holder of such a permit shall be authorized:
2to receive, store and repackage malt or brewed beverages
3produced by that manufacturer for sale by that manufacturer to
4importing distributors to whom that manufacturer has given
5distribution rights pursuant to this subsection or to purchasers
6outside this Commonwealth for delivery outside this
7Commonwealth; or to ship to that manufacturer's storage
8facilities outside this Commonwealth. The bailee for hire shall
9be permitted to receive a fee from the manufacturer for any
10related storage, repackaging or delivery services. The bailee
11for hire shall, as required in Article V of this act, keep
12complete and accurate records of all transactions, inventory,
13receipts and shipments and make all records and the licensed
14areas available for inspection by the board and for the
15Pennsylvania State Police, Bureau of Liquor Control Enforcement,
16during normal business hours.

17Each out of State manufacturer of malt or brewed beverages
18whose products are sold and delivered in this Commonwealth shall
19give distributing rights for such products in designated
20geographical areas to specific importing distributors, and such
21importing distributor shall not sell or deliver malt or brewed
22beverages manufactured by the out of State manufacturer to any
23person issued a license under the provisions of this act whose
24licensed premises are not located within the geographical area
25for which he has been given distributing rights by such
26manufacturer. Should a licensee accept the delivery of such malt
27or brewed beverages in violation of this section, said licensee
28shall be subject to a suspension of his license for at least
29thirty days: Provided, That the importing distributor holding
30such distributing rights for such product shall not sell or

1deliver the same to another importing distributor without first
2having entered into a written agreement with the said secondary
3importing distributor setting forth the terms and conditions
4under which s