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, providing for issuance of wine 
25and spirits retail licenses, fees, taxes, for 
26postqualification of selected applicants and for wine and 
27spirits retail licensee statement of conditions, further 
28providing for authority, for issuance, for transfer or 
29extension, for fees, for sales and restrictions, for wine 

1auction permits and for importers' licenses; in licensing, 
2providing for grocery store licenses, convenience store 
3licenses; in licensing, further providing for malt and brewed 
4beverages licenses; and further providing for distributor 
5package reform permit, providing for authority to issue 
6liquor licenses to grocery stores, for applications for 
7grocery store retail license, for issuance or transfer of 
8grocery store liquor licenses; providing for sales by liquor 
9licensees and restrictions; further providing for sales by 
10grocery store retail licensees and restriction; in licensing, 
11providing for enhanced distributors licenses; in licensing, 
12further providing for license applications, for license 
13restrictions, for sales, storage and purchase restrictions, 
14for interlocking business, for breweries, for county 
15limitations, for administrative proceedings, for 
16assignability, for renewal and temporary provisions, for 
17sanctions, for local option, for responsible alcohol 
18management, for <-for unlawful acts and for hours of operation; 
19in licensing, providing for unlawful acts <-and for licensees 
20and taxes; in licensing, further providing for penalties and 
21for vacation of premises; in distilleries, wineries, bonded 
22warehouses, bailees and transporters, further providing for 
23limited wineries, for distilleries and for license fees; 
<-24providing for emergency State tax; and making a related 
25repeal <-and providing for supplemental provisions.

26The General Assembly of the Commonwealth of Pennsylvania
27hereby enacts as follows:

28Section 1. Section 102 of the act of April 12, 1951 (P.L.90,
29No.21), known as the Liquor Code, reenacted and amended June 29,
301987 (P.L.32, No.14), is amended by adding definitions to read:

31Section 102. Definitions.--The following words or phrases,
32unless the context clearly indicates otherwise, shall have the
33meanings ascribed to them in this section:

34"Affiliate" or "person affiliated with" shall mean a person
35that directly or indirectly, through one or more intermediaries,
36controls, is controlled by or is under common control with a
37specified person.

38* * *

39"Blended brand valuation" shall mean, for any particular
40brand of liquor, the sum of the wholesale profit margin on each
41product of a brand.

42* * *

1"Brand of liquor" shall mean a liquor product or series of
2liquor products produced by a single manufacturer.

3* * *

4"Change in control" shall mean, for purposes of wholesale or
5retail licensees as defined in this section, the acquisition by
6a person or group of persons acting in concert of more than
7twenty per centum of a licensee's securities or other ownership
8interests, with the exception of any ownership interest of the
9person that existed at the time of initial licensing, or more
10than twenty per centum of the securities or other ownership
11interests of a corporation or other legal entity which owns,
12directly or indirectly, at least twenty per centum of the
13securities or other ownership interests of the licensee.

14* * *

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

16* * *

17"Controlling interest" shall mean as follows:

18(1) For a publicly traded legal entity, an interest in a
19legal entity, applicant or licensee whereby a person's sole
20voting rights under State law or corporate articles or bylaws
21entitles the person to elect or appoint one or more of the
22members of the board of directors or other governing board or
23the ownership, directly or indirectly, of five per centum or
24more of the securities of the publicly traded corporation.

25(2) For a privately held corporation, partnership, limited
26liability company or other form of privately held legal entity,
27the holding of any securities in the legal entity.

28* * *

29"Department" shall mean the Department of General Services of
30the Commonwealth.

1* * *

2"Displaced employe" shall mean a salaried employe of the
3board whose employment is terminated as a sole and direct result
4of the implementation of Article III-A. The term shall not
5include a person who is terminated for cause or who retires or
6resigns, is furloughed or is otherwise separated from employment
7for any other reason. The term excludes intermittent liquor
8store clerks and seasonal liquor store clerks.

9* * *

10"Grocery store" shall mean a reputable place operated by
11persons of good repute, which primarily sells food, supplies for
12the table and food products for human consumption off the
13premises and which has an area under one roof of ten thousand
14(10,000) square feet or more.

15"Growler" shall mean a refillable glass container that holds
16a minimum of sixty-four fluid ounces for malt or brewed
17beverages.

18* * *

19"Heritage State Stores" shall mean the number of State
20stores, as determined by the board, located in any given county
21as of the effective date of this definition.

22* * *

23"Institution of higher education" shall mean a public or
24private institution within this Commonwealth authorized by the
25Department of Education to grant a certificate, associate degree
26or higher degree. The term includes a branch or satellite campus
27of the institution.

28* * *

29"Retail licensee" shall mean a person that holds a wine and
30spirits retail license issued pursuant to section 311-A.

1* * *

2"Variable pricing" shall mean, for purposes of the wholesale
3sale of liquor, any disparity in the price of an item sold to
4one licensee as compared to the price of the same item to
5another licensee or a licensee of a different classification.
6The term shall not include discounts for volume purchases.

7* * *

8"Wholesale acquisition factor" shall mean a factor of 2.5
9applied to the wholesale profit margin of a brand of liquor in
10determining a wholesale license fee.

11"Wholesale licensee" shall mean a person that holds a wine
12and spirits wholesale license issued pursuant to section
13321.1-A.

14"Wholesale profit margin" shall mean, for any particular
15liquor product, twenty per centum of the total of costs of goods
16sold of the product in the Commonwealth over the most recent 12-
17month period for which information is available.

18* * *

19"Wine and spirits retail license" shall mean a license issued
20by the department or the board authorizing a person to sell and
21distribute wine and spirits to the public for off the premises
22consumption.

23"Wine and spirits wholesale license" shall mean a license
24issued by the department or the board authorizing a person to
25sell and distribute liquor on a wholesale basis to <-the board 
26until all retail licenses have been issued in accordance with 
27Article III-A and to retail licensees and other licensees under
28this act.

29* * *

30Section 2. Section 104(c) and (d) of the act, amended

1December 7, 1990 (P.L.622, No.160) and December 20, 1996
2(P.L.1513, No.196), is amended to read:

3Section 104. Interpretation of Act.--* * *

4(c) Except as otherwise expressly provided, the purpose of
5this act is to prohibit the manufacture of and transactions in
6liquor, alcohol and malt or brewed beverages which take place in
7this Commonwealth, except by and under the [control] regulatory 
8authority of the board as herein specifically provided, and
9every section and provision of the act shall be construed
10accordingly; to provide a structure in this Commonwealth for a
11distribution system, including the [establishment of
12Pennsylvania liquor stores and] licensing of wine and spirits 
13wholesalers, wine and spirits retailers, importing distributors
14and distributors; and to preserve manufacturers of liquor and
15alcohol and malt and brewed beverages selling those products
16within this Commonwealth. The provisions of this act dealing
17with the manufacture, importation, sale, distribution and
18disposition of liquor, alcohol and malt or brewed beverages
19within the Commonwealth through [the instrumentality of the
20board,] licensees and otherwise, provide the means by which such
21control shall be made effective. This act shall not be construed
22as forbidding, affecting or regulating any transaction which is
23not subject to the legislative authority of this Commonwealth.

24(d) The provisions of this act are intended to create a
25system for distribution [that shall include the fixing of prices 
26for] of liquor and alcohol and controls placed on [prices for]
27the sale and distribution of malt and brewed beverages, and each
28of which shall be construed as integral to the preservation of
29the system, without which system the Commonwealth's control of
30the sale of liquor and alcohol and malt and brewed beverages and

1the Commonwealth's promotion of its policy of temperance and
2responsible conduct with respect to alcoholic beverages would
3not be possible.

4* * *

5Section 3. Section 207 of the act, amended February 21, 2002
6(P.L.103, No.10), November 30, 2004 (P.L.1727, No.221) and
7December 8, 2004 (P.L.1810, No.239), is amended to read:

8Section 207. General Powers of Board.--Under this act, the
9board shall have the power and its duty shall be:

10(a) To buy, import or have in its possession for sale and
11sell liquor, alcohol, corkscrews, wine and liquor accessories,
12trade publications, gift cards, gift certificates, wine- or
13liquor-scented candles and wine glasses in the manner set forth
14in this act: Provided, however, That all purchases shall be made
15subject to the approval of the State Treasurer, or his
16designated deputy. The board shall buy liquor and alcohol at the
17lowest price and in the greatest variety reasonably obtainable.
18The board's authority to exercise the powers granted pursuant to 
19this subsection is subject to the limitations set forth in 
20Article III-A of this act.

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

1promotion of such wines, as long as the price structure is
2uniform within each class of wine purchased by the board. The
3board shall require each Pennsylvania manufacturer and each
4nonresident manufacturer of liquors, other than wine, selling
5such liquors to the board, which are not manufactured in this
6Commonwealth, to make application for and be granted a permit by
7the board before such liquors not manufactured in this
8Commonwealth shall be purchased from such manufacturer. Each
9such manufacturer shall pay for such permit a fee which, in the
10case of a manufacturer of this Commonwealth, shall be equal to
11that required to be paid, if any, by a manufacturer or
12wholesaler of the state, territory or country of origin of the
13liquors, for selling liquors manufactured in Pennsylvania, and
14in the case of a nonresident manufacturer, shall be equal to
15that required to be paid, if any, in such state, territory or
16country by Pennsylvania manufacturers doing business in such
17state, territory or country. In the event that any such
18manufacturer shall, in the opinion of the board, sell or attempt
19to sell liquors to the board through another person for the
20purpose of evading this provision relating to permits, the board
21shall require such person, before purchasing liquors from him or
22it, to take out a permit and pay the same fee as hereinbefore
23required to be paid by such manufacturer. All permit fees so
24collected shall be paid into the State Stores Fund. The board
25shall not purchase any alcohol or liquor fermented, distilled,
26rectified, compounded or bottled in any state, territory or
27country, the laws of which result in prohibiting the importation
28therein of alcohol or liquor, fermented, distilled, rectified,
29compounded or bottled in Pennsylvania. The board's authority to 
30exercise the powers granted pursuant to this subsection is 

1subject to the limitations set forth in Article III-A of this 
2act.

3[(c) To determine the municipalities within which
4Pennsylvania Liquor Stores shall be established and the
5locations of the stores within such municipalities.]

6(d) To grant and issue all licenses and to grant, issue,
7suspend and revoke all permits authorized to be issued under
8this act.

9(e) <-(1) Through the [Department of General Services] 
10department as agent, to lease and furnish and equip such
11buildings, rooms and other accommodations as shall be required
12for the operation of this act.

<-13(2) The department shall not relocate a Pennsylvania Liquor
14Store after the effective date of this paragraph.

15(f) To appoint, fix the compensation and define the powers
16and duties of such managers, officers, inspectors, examiners,
17clerks and other employes as shall be required for the operation
18of this act, subject to the provisions of The Administrative
19Code of 1929 and the Civil Service Act.

20(g) To determine the nature, form and capacity of all
21packages and original containers to be used for containing
22liquor, alcohol or malt or brewed beverages.

23(h) Without in any way limiting or being limited by the
24foregoing, to do all such things and perform all such acts as
25are deemed necessary or advisable for the purpose of carrying
26into effect the provisions of this act and the regulations made
27thereunder.

28(i) From time to time, to make such regulations not
29inconsistent with this act as it may deem necessary for the
30efficient administration of this act. The board shall cause such

1regulations to be published and disseminated throughout the
2Commonwealth in such manner as it shall deem necessary and
3advisable or as may be provided by law. Such regulations adopted
4by the board shall have the same force as if they formed a part
5of this act.

6(j) By regulation, to provide for the use of a computerized
7referral system to assist consumers in locating special items at
8Pennsylvania Liquor Stores and for the use of electronic
9transfer of funds and credit cards for the purchase of liquor
10and alcohol at Pennsylvania Liquor Stores. The board's authority 
11to exercise the powers granted pursuant to this subsection is 
12subject to the limitations set forth in Article III-A of this 
13act.

14(k) To issue grants to various entities for alcohol
15education and prevention efforts.

16(l) To close Pennsylvania Liquor Stores as directed under
17Article III-A of this act.

18(m) The board may implement a delivery system as a means of
19providing product to all licensees under this act.

20Section 4. The act is amended by adding a section to read:

21Section 207.1. Adjustment of Fees by Regulation.--(a) 
22Notwithstanding any provision of this act or the act of April 9, 
231929 (P.L.177, No.175), known as "The Administrative Code of 
241929," to the contrary, all fees required under this act shall 
25be fixed by the board by regulation and shall be subject to the 
26act of June 25, 1982 (P.L.633, No.181), known as the "Regulatory 
27Review Act."

28(b) The board shall be authorized to increase license fees
29by regulation under the following conditions:

30(1) If the revenues raised by the fees imposed under this

1act are not sufficient to meet all expenditures of the board
2over a two-year period, the board shall increase the fees by
3regulation, subject to the "Regulatory Review Act," so that the
4projected revenues will meet projected expenditures.

5(2) If the board determines that the fees established by the
6board under subsection (a) are inadequate to meet the minimum
7enforcement efforts required under this act, the board, after
8consultation with the enforcement bureau, and subject to the
9"Regulatory Review Act," shall increase the fees by regulation
10in an amount so that adequate revenues are raised to meet the
11required expenditures.

12(c) All acts or parts of acts are repealed insofar as they
13are inconsistent with this section.

14Section 5. Section 208 of the act is amended to read:

15Section 208. Specific Subjects on Which Board May Adopt
16Regulations.--Subject to the provisions of this act and without
17limiting the general power conferred by the preceding section,
18the board may make regulations regarding:

19[(a) The equipment and management of Pennsylvania Liquor
20Stores and warehouses in which liquor and alcohol are kept or
21sold, and the books and records to be kept therein.]

22(b) The duties and conduct of the officers and employes of
23the board.

24[(c) The purchase, as provided in this act, of liquor and
25alcohol, and its supply to Pennsylvania Liquor Stores.

26(d) The classes, varieties and brands of liquor and alcohol
27to be kept and sold in Pennsylvania Liquor Stores. In making
28this determination the board shall meet not less than twice a
29year.

30(e) The issuing and distribution of price lists for the

1various classes, varieties or brands of liquor and alcohol kept
2for sale by the board under this act.]

3(f) The labeling of liquor and alcohol sold under this act
4and of liquor and alcohol lawfully acquired by any person prior
5to January first, one thousand nine hundred thirty-four.

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

7(h) The issuance of licenses and permits and the conduct,
8management, sanitation and equipment of places licensed or
9included in permits.

10[(i) The place and manner of depositing the receipts of
11Pennsylvania Liquor Stores and the transmission of balances to
12the Treasury Department through the Department of Revenue.

13(j) The solicitation by resident or nonresident vendors of
14liquor from Pennsylvania licensees and other persons of orders
15for liquor to be sold through the Pennsylvania Liquor Stores
16and, in the case of nonresident vendors, the collection
17therefrom of license fees for such privilege at the same rate as
18provided herein for importers' licenses.]

19Section 5.1. Section 211(c) of the act, amended October 5,
201994 (P.L.537, No.80), is amended to read:

21Section 211. Enforcement.--* * *

22(c) The Pennsylvania State Police Commissioner shall assign
23State Police Officers to such <-[supervisory and other<-] capacities
24in the enforcement bureau as he deems necessary. All other
25personnel of the enforcement bureau shall be civilians.
26Notwithstanding any other provision of law, a State Police 
27officer assigned to the enforcement bureau may not be counted 
28against the complement of officers as prescribed in section 205 
29of the act of April 9, 1929 (P.L.177, No.175), known as "The 
30Administrative Code of 1929."

1* * *

2Section 6. Section 215 of the act, amended June 25, 2010
3(P.L.217, No.35), is repealed:

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

5(e) The board is authorized to participate in or sponsor
6wine and spirits events for the purpose of educating consumers
7as to the wines and spirits available in this Commonwealth. The
8wine and spirits to be used for the event may be acquired
9through the State store system or may be donated from outside
10this Commonwealth. Participation in the tastings may be
11conditioned on the purchase of a ticket to the event. The event
12may include events occurring on premises licensed by the board,
13and the board may sell wine and spirits for off-premises
14consumption in an area designated by the board for such sale.]

15Section 7. Section 301 of the act is amended to read:

16Section 301. Board to Establish State Liquor Stores.--(a)
17The board shall [establish,] operate and maintain at such places
18throughout the Commonwealth as it shall deem essential and
19advisable, stores to be known as "Pennsylvania Liquor Stores,"
20for the sale of liquor and alcohol in accordance with the
21provisions of and the regulations made under this act[; except
22that no store not so already located shall be located within
23three hundred feet of any elementary or secondary school, nor
24within a dry municipality without there first having been a
25referendum approving such location. When the board shall have
26determined upon the location of a liquor store in any
27municipality, it shall give notice of such location by public
28advertisement in two newspapers of general circulation. In
29cities of the first class, the location shall also be posted for
30a period of at least fifteen days following its determination by

1the board as required in section 403(g) of this act. The notice
2shall be posted in a conspicuous place on the outside of the
3premises in which the proposed store is to operate or, in the
4event that a new structure is to be built in a similarly visible
5location. If, within five days after the appearance of such
6advertisement, or of the last day upon which the notice was
7posted, fifteen or more taxpayers residing within a quarter of a
8mile of such location, or the City Solicitor of the city of the
9first class, shall file a protest with the court of common pleas
10of the county averring that the location is objectionable
11because of its proximity to a church, a school, or to private
12residences, the court shall forthwith hold a hearing affording
13an opportunity to the protestants and to the board to present
14evidence. The court shall render its decision immediately upon
15the conclusion of the testimony and from the decision there
16shall be no appeal. If the court shall determine that the
17proposed location is undesirable for the reasons set forth in
18the protest, the board shall abandon it and find another
19location. The board may establish, operate and maintain such
20establishments for storing and testing liquors as it shall deem
21expedient to carry out its powers and duties under this act], 
22and subject to the limitations set forth in Article III-A of 
23this act.

24(b) The board may lease the necessary premises for such 
25stores or establishments, but all such leases shall be made 
26through the [Department of General Services] department as agent 
27of the board. The board, through the [Department of General 
28Services] department, shall have authority to purchase such 
29equipment and appointments as may be required in the operation 
30of such stores or establishments.

1Section 7.1. Section 304 of the act, amended December 8, 
22004 (P.L.1810, No.239), is amended to read:

3Section 304. When Sales May Be Made at Pennsylvania Liquor
4Stores.--(a) Except as provided for in subsection (b), every
5Pennsylvania Liquor Store shall be open for business week days,
6except holidays as that term is defined in section 102. The
7board may, with the approval of the Governor, temporarily close
8any store in any municipality.

9(b) Certain Pennsylvania Liquor Stores operated by the board 
10shall be open for Sunday retail sales between the hours of 
11[noon] nine o'clock antemeridian and [five] nine o'clock 
12postmeridian, except that no Sunday sales shall occur on Easter 
13Sunday or Christmas day. The board shall open [up to twenty-five 
14per centum of the total number of] Pennsylvania Liquor Stores at 
15its discretion for Sunday sales as provided for in this 
16subsection. The board shall submit yearly reports to the 
17Appropriations and the Law and Justice Committees of the Senate 
18and the Appropriations and the Liquor Control Committees of the 
19House of Representatives summarizing the total dollar value of 
20sales under this section.

21Section 8. Section 305 of the act, amended May 8, 2003
22(P.L.1, No.1), July 17, 2003 (P.L.63, No.15), May 8, 2003
23(P.L.1, No.1), December 8, 2004 (P.L.1810, No.239), July 6, 2005
24(P.L.135, No.39) and July 5, 2012 (P.L.1007, No.116), is amended
25to read:

26Section 305. Sales by Pennsylvania Liquor Stores.--(a) The
27board shall in its discretion determine where and what classes,
28varieties and brands of liquor and alcohol it shall make
29available to the public and where such liquor and alcohol will
30be sold. Every Pennsylvania Liquor Store shall be authorized to

1sell combination packages. If a person desires to purchase a
2class, variety or brand of liquor or alcohol not currently
3available from the board, he or she may place a special order
4for such item so long as the order is for two or more bottles.
5The board may require a reasonable deposit from the purchaser as
6a condition for accepting the order. The customer shall be
7notified immediately upon the arrival of the goods.

8In computing the retail price of such special orders for
9liquor or alcohol, the board shall not include the cost of
10freight or shipping before applying the mark-up and taxes but
11shall add the freight or shipping charges to the price after the
12mark-up and taxes have been applied.

13Unless the customer pays for and accepts delivery of any such
14special order within ten days after notice of arrival, the store
15may place it in stock for general sale and the customer's
16deposit shall be forfeited.

17During the retail divestiture process as provided in Article
18III-A, the board shall continue to take and process special
19liquor orders for residents and licensees of the board, and may
20establish a protocol by which pre-paid orders may be picked up
21at either a Pennsylvania Liquor Store or from the licensed
22premises of a wine and spirits retail licensee. A wine and
23spirits retail licensee is authorized to assess a handling fee
24for this purpose. Any product not claimed at a wine and spirits
25retail store by the purchaser shall be returned to the board
26after ten days notice of arrival was sent to the purchaser.

27(b) <-[Every<-] Until the wholesale divestiture process as 
28provided in Article III-A is complete, every Pennsylvania Liquor
29Store shall sell liquors at wholesale to wine and spirits retail 
30licensees, grocery stores, hotels, restaurants, clubs, and

1railroad, pullman and steamship companies licensed under this
2act; and, under the regulations of the board, to pharmacists
3duly licensed and registered under the laws of the Commonwealth,
4and to manufacturing pharmacists, and to reputable hospitals
5approved by the board, or chemists. Sales to licensees shall be
6made at a price that includes a discount of [ten] fourteen per
7centum from the retail price. The board may sell to registered
8pharmacists only such liquors as conform to the Pharmacopoeia of
9the United States, the National Formulary, or the American
10Homeopathic Pharmacopoeia. The board may sell at special prices
11under the regulations of the board, to United States Armed
12Forces facilities which are located on United States Armed
13Forces installations and are conducted pursuant to the authority
14and regulations of the United States Armed Forces. All other
15sales by such stores shall be at retail. A person entitled to
16purchase liquor at wholesale prices may purchase the liquor at
17any Pennsylvania Liquor Store upon tendering cash, check or
18credit card for the full amount of the purchase. For this
19purpose, the board shall issue a discount card to each licensee
20identifying such licensee as a person authorized to purchase
21liquor at wholesale prices. Such discount card shall be retained
22by the licensee. The board may contract through the Commonwealth
23bidding process for delivery to wholesale licensees at the
24expense of the licensee receiving the delivery.

25(c) Whenever any checks issued in payment of liquor or
26alcohol purchased from State Liquor Stores by persons holding
27wholesale purchase permit cards issued by the board shall be
28returned to the board as dishonored, the board shall charge a
29fee of five dollars per hundred dollars or fractional part
30thereof, plus all protest fees, to the maker of such check

1submitted to the board. Failure to pay the face amount of the
2check in full and all charges thereon as herein required within
3ten days after demand has been made by the board upon the maker
4of the check shall be cause for revocation or suspension of any
5license issued by the board to the person who issued such check
6and the cancellation of the wholesale purchase permit card held
7by such person.

8(d) No liquor or alcohol package shall be opened on the
9premises of a Pennsylvania Liquor Store. No manager or other
10employe of the board employed in a Pennsylvania Liquor Store
11shall allow any liquor or alcohol to be consumed on the store
12premises, nor shall any person consume any liquor or alcohol on
13such premises, except liquor and alcohol which is part of a
14tasting conducted pursuant to the board's regulations. Such
15tastings may also be conducted in the board's headquarters or
16regional offices.

17(e) The board may sell tax exempt alcohol to the
18Commonwealth of Pennsylvania and to persons to whom the board
19shall, by regulation to be promulgated by it, issue special
20permits for the purchase of such tax exempt alcohol.

21Such permits may be issued to the United States or any
22governmental agency thereof, to any university or college of
23learning, any laboratory for use exclusively in scientific
24research, any hospital, sanitorium, eleemosynary institution or
25dispensary; to physicians, dentists, veterinarians and
26pharmacists duly licensed and registered under the laws of the
27Commonwealth of Pennsylvania; to manufacturing chemists and
28pharmacists or other persons for use in the manufacture or
29compounding of preparations unfit for beverage purposes.

30(f) Every purchaser of liquor, alcohol, corkscrews, wine or

1liquor accessories, trade publications, gift cards, gift
2certificates, wine- or liquor-scented candles or wine glasses
3from a Pennsylvania Liquor Store shall receive a numbered
4receipt which shall show the price paid therefor and such other
5information as the board may prescribe. Copies of all receipts
6issued by a Pennsylvania Liquor Store shall be retained by and
7shall form part of the records of such store.

8[(g) The board is hereby authorized and empowered to adopt
9and enforce appropriate rules and regulations to insure the
10equitable wholesale and retail sale and distribution, through
11the Pennsylvania Liquor Stores, of available liquor and alcohol
12at any time when the demand therefor is greater than the
13supply.]

14(h) Every Pennsylvania Liquor Store shall sell gift
15certificates and gift cards which may be redeemed for any
16product sold by the board. In addition, the board may sell
17corkscrews, wine and liquor accessories, wine- or liquor-scented
18candles, trade publications and wine sleeves at Pennsylvania
19Liquor Stores.

20(i) Notwithstanding any other provision of law to the
21contrary, the board may sell wine in containers having a
22capacity of sixty liters or less.

23Section 9. The act is amended by adding an article to read:

24ARTICLE III-A

25WINE AND SPIRITS DISTRIBUTION

26SUBARTICLE A

27GENERAL PROVISIONS

28Section 301-A. Scope of article.

29This article relates to the privatization of liquor
30distribution in this Commonwealth.

1Section 302-A. Legislative intent.

2The General Assembly finds and declares as follows:

3(1) The wholesale and retail of liquor should no longer
4be by the Commonwealth, but rather by private persons
5licensed and regulated by the Commonwealth.

6(2) The health and welfare of the citizens of this
7Commonwealth will be adequately protected by the regulation
8of private licensees through strict enforcement of laws and
9rules relating to the purchase and sale of liquor.

10(3) The sale of liquor through wholesale and retail
11licensees will provide residents with improved customer
12convenience, and will provide an opportunity for competitive
13pricing and enhanced product selection.

14(4) Modernization of the retail sale of wine <-and spirits
15through new outlets for consumption off the premises will
16further enhance customer convenience.

17(5) This article will improve operation and efficiency
18of State government.

19(6) The authorization of wine and spirits wholesale and
20retail licenses is intended to continue the generation of
21revenue to the Commonwealth related to the wholesale and
22retail sale of liquor.

23(7) The transition to a privately-owned and privately-
24operated wholesale and retail liquor distribution system
25should be accomplished in a manner that protects the public
26through regulation and policing of all activities involved in
27the wholesale and retail sale of liquor.

28(8) The establishment of wine and spirits wholesale and
29retail licenses is intended to provide broad economic
30opportunities to the citizens of this Commonwealth and to be

1implemented in such a manner as to prevent monopolization by
2establishing reasonable restrictions on the control of
3wholesale and retail licensees.

4(9) The transition to a privately-owned and privately-
5operated wholesale and retail liquor distribution system
6should be accomplished in a manner that minimizes disruption
7of services to the public.

8(10) In conjunction with the transition to privately-
9owned and privately-operated liquor wholesalers and retail
10liquor stores, this article is intended to modernize the
11retail sale of wine <-and spirits through new outlets for
12consumption off the premises, further enhancing customer
13convenience.

14(11) With the transition to a privately-owned and 
15privately-operated wholesale and retail liquor distribution 
16system, and with the addition of new licensing 
17classifications, it is necessary to enhance alcohol education 
18and enforcement efforts to:

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

20(ii) prevent and combat the illegal consumption of
21alcohol by minors and visibly intoxicated persons; and

22(iii) discourage the intemperate use of alcohol.

23(12) Participation in the wholesale and retail sale of
24liquor by a wholesale or retail licensee is a privilege,
25conditioned upon the proper and continued qualification of
26the licensee and upon the discharge of the affirmative
27responsibility of the licensee to provide the department and
28the board with assistance and information necessary to assure
29that the policies declared by this article are achieved.

30Section 303-A. Transition to private distribution system,

1powers and duties of the department and the board.

2(a) Orderly transition.--The department and the board have
3the power and duty to implement this article and effect an
4orderly transition to a privately-owned and privately-operated
5wholesale and retail liquor distribution system in this
6Commonwealth in a manner which is consistent with this article
7and the laws of this Commonwealth and which seeks to maintain
8uninterrupted service to the public.

9(b) Retail transition.--

10(1) The board<-, in consultation with the department,
11shall have the authority to issue wine and spirits retail
12licenses and wine and spirits wholesale licenses, provided
13that the wine and spirits wholesale licenses are not issued
14until one year after the effective date of this section.<- The
15department shall engage the services of a consultant to
16assist the committee in effectuating the intent of this
17section. The department shall not be bound by the procedural
18constraints or requirements of 62 Pa.C.S. Pt. I (relating to
19Commonwealth Procurement Code) in hiring the consultant. <-The
20department shall contract with financial, legal and other
21advisors as are necessary to assist the department and the
22board in effectuating the addition of this article. Such
23contracts shall not be subject to the provisions of 62
24Pa.C.S. Ch. 5 (relating to source selection and contract
25formation).

26(2) The divestiture of the board's retail operations
27shall be accomplished through the issuance of 1,200 wine and
28spirits retail licenses that shall be allocated by county.
<-29Six <-As the State liquor stores wind down operations, six
30hundred wine and spirits retail licenses may be issued by the

1board <-as the State liquor stores wind down operations in a
2county. The <-which shall be allocated by county. The
3additional licenses shall be issued if the department
4determines, in cooperation with the board, that the retail
5licenses are necessary for consumer convenience. After the
6determination, the retail licenses shall be issued first to
7distributor licensees and then on a first-come, first-served
8basis. Each successful applicant shall be thoroughly
9investigated to determine whether the person is a reputable
10and responsible person suitable to be licensed to sell liquor
11in this Commonwealth.

12(3) As licenses are awarded in a given county, the board
13shall determine the necessity of winding down operations in
14State stores in the <-region <-county and, as it becomes
15necessary, terminate applicable lease agreements,
16redistribute or furlough store personnel and dispose of
17remaining inventory and store property.

18(c) Wholesale transition.--

19(1) Twelve months after the effective date of this
20section, <-in consultation with its advisors and the board, the
21department shall transition the board's wholesale
22distribution of liquor to privately-owned and privately-
23operated wholesale licensees.

24(2) The divestiture of the board's wholesale operations
25shall be accomplished through the issuance of wine and
26spirits wholesale licenses by brand of liquor, which shall be
27subject to an application process as set forth in this
28article. The transition must fully divest the board of all
29operations relating to the wholesale distribution of liquor
30within six months of the commencement of wholesale

1divestiture.

2(d) Cooperation required.--

3(1) The board shall fully cooperate with the department
4or its <-consultant <-advisors in all aspects of implementation
5of this article and shall provide the department or its
6consultant with all records and information in the possession
7of the board upon request.

8(2) The board shall devote sufficient resources to
9planning and preparation for the divestiture of its wholesale
10and retail functions.

11(3) The board shall use its best efforts in coordinating
12with the department or its <-consultant <-advisors, wine and
13spirits retail licensees and wine and spirits wholesale
14licensees so as to maintain uninterrupted service to the
15residents of this Commonwealth during divestiture.

16(e) Prohibition.--The board shall not engage in wholesale
17distribution of liquor following completion of the wholesale
18transition to a private distribution system.

19Section 304-A. Reports to the General Assembly.

20One year after the effective date of this section, and each
21year thereafter until the board has been fully divested of its
22wholesale and retail operations, the board, in cooperation with
23the department, shall submit to the Secretary of the Senate and
24the Chief Clerk of the House of Representatives, a report on
25wholesale and retail alcohol sales in this Commonwealth and the
26implementation of this article, including:

27(1) the total revenue earned by the issuance of licenses
28under this article;

29(2) the distribution and sale of brands through private
30wholesalers;

1(3) the net profit or loss of each wine and spirits
2retail licensed premise and State liquor store in this
3Commonwealth; and

4(4) the status of the ongoing transition, including
5store closures and employee displacement.

6Section 305-A. Temporary regulations.

7(a) Promulgation.--In order to facilitate the prompt
8implementation of this article, regulations promulgated by the
9department shall be deemed temporary regulations which shall
10expire no later than five years following the effective date of
11this section. The department may promulgate temporary
12regulations not subject to:

13(1) sections 201, 202 and 203 of the act of July 31,
141968 (P.L.769, No.240), referred to as the Commonwealth
15Documents Law; or

16(2) the act of June 25, 1982 (P.L.633, No.181), known as
17the Regulatory Review Act.

18(b) Expiration.--The authority provided to the department to
19adopt temporary regulations under subsection (a) shall expire on
20January 1, 2018.

21SUBARTICLE B

22WINE AND SPIRITS RETAIL LICENSES

23Section 311-A. Issuance of wine and spirits retail licenses,
24fees, taxes.

25(a) Sale of retail licenses.--The board may award not more
26than 1,200 wine and spirits retail licenses to qualified
27applicants, provided that when the State stores close in a given
28county because the wine and spirits retail licenses have
29commenced operation, the department, in cooperation with the
30board, shall determine if it is necessary to issue additional

1wine and spirits retail licenses for customer convenience and
2access. If the department determines more wine and spirits
3retail licenses are needed, the department may <-authorize the 
4board to issue not more than 600 additional wine and spirits
5retail licenses.

6(b) License classification.--Wine and spirits retail
7licenses shall be awarded as follows:

8(1) For the first 12 months after the enactment of this
9section, the board shall receive applications from
10distributor licensees licensed under section 431. A
11distributor licensee applying for a wine and spirits retail
12license must operate out of a facility with a minimum of
131,500 square feet of retail space and dedicate a minimum of
1450% of shelf space for the sale of malt and brewed beverages.

15(2) At the conclusion of the 12-month period under
16paragraph (1), the board may issue the remaining wine and
17spirits retail licenses on a first-come, first-served basis.
18A private wine and spirits retail licensee must operate in a
19facility with not less than 1,500 square feet of retail
20space.

21(c) License allocation.--

22(1) The board<-, in consultation with the department and 
23its advisors, shall allocate the aggregate number of wine and
24spirits retail licenses to be available in each county.

25(2) A county may not be allocated fewer wine and spirits
26retail licenses than the number of licensed distributors in
27the county <-provided that the wine and spirits retail licenses 
28shall be evenly distributed throughout the county on a per 
29capita basis.

30(3) A wine and spirits retail licensee may determine

1whether it will sell wine or spirits or both. If a wine and
2spirits retail licensee elects to sell either wine or
3spirits, the board shall consider that one wine and spirits
4retail license and only the licensee will have the ability to
5pay an additional fee in the future to sell both wine and
6spirits.

7(d) License application.--An applicant for a wine and
8spirits retail license shall file a written application with the
9board in the form and containing the information as the board
10shall prescribe from time to time, which must be accompanied by
11a filing fee and license fee as prescribed under subsection (f).
12An application must contain:

13(1) a description of the part of the premises for which
14the applicant desires a license;

15(2) whether the applicant desires to sell wine, spirits
16or both on the licensed premises. Notwithstanding any other
17provision of this act, an applicant that chooses to sell wine
18or spirits may make application at a later date to the board
19to sell both products and be granted that authority after
20paying the proper fees; and

21(3) other information that the board may prescribe.

22The board may not require physical alterations, improvements or
23changes to the licensed premises until the wine and spirits
24license application has been approved.

25(e) Other licenses.--Nothing in this act shall prohibit a
26wine and spirits retail licensee from receiving:

27(1) a distributor license under section 431 that
28authorizes the licensee to sell malt and brewed beverages for
29consumption off the premises;<- or

30(2) a restaurant liquor license or a retail dispenser

1license as long as the restaurant or retail dispenser does
2not have an interior connection to or with the wine and
3spirits retail licensed premises<-.;<- or

4(3) an importing distributor license under section 431
5that authorizes the licensee to sell malt or brewed beverages
6at wholesale so long as the importing distributor does not
7obtain a wine and spirits wholesale license.

8(f) License fees.--The fees for a wine and spirits retail
9license are as follows:

10(1) For a distributor licensed under section 431 making
11application for a wine and spirits retail license:

12(i) For the privilege of selling wine, the board
13shall require the following fees:

14(A) For a county of the first or second class,
15$30,000.

16(B) For a county of the second class A or third
17class, $37,500.

18(C) For a county of the fourth or fifth class,
19$22,500.

20(D) For a county of the sixth or seventh class,
21$15,000.

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

23(ii) For the privilege of selling spirits, the board
24shall require the following fees:

25(A) For a county of the first or second class,
26$52,500.

27(B) For a county of the second class A or third
28class, $60,000.

29(C) For a county of the fourth or fifth class,
30$45,000.

1(D) For a county of the sixth or seventh class,
2$37,500.

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

4(iii) For the privilege of selling both wine and
5spirits, the board shall require a fee equal to the sum
6of the fees listed above by county. Nothing in this act
7shall prevent a licensee who initially makes application
8to sell either wine or spirits from adding the other
9product at a later date so long as application is made to
10the board and the proper fees are paid.

11(2) For an unlicensed entity making application for a
12wine and spirits retail license:

13(i) For the privilege of selling wine, the board
14shall require the following fees:

15(A) For a county of the first or second class,
16$165,000.

17(B) For a county of the second class A or third
18class, $187,500.

19(C) For a county of the fourth or fifth class,
20$142,500.

21(D) For a county of the sixth or seventh class,
22$120,000.

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

24(ii) For the privilege of selling spirits, the board
25shall require the following fees:

26(A) For a county of the first or second class,
27$232,500.

28(B) For a county of the second class A or third
29class, $262,500.

30(C) For a county of the fourth or fifth class,

1$202,500.

2(D) For a county of the sixth or seventh class,
3$172,500.

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

5(iii) For the privilege of selling both wine and
6spirits, the board shall require a fee equal to the sum
7of the fees listed above by county. Nothing in this act
8shall prevent a licensee who initially makes application
9to sell either wine or spirits from adding the other
10product at a later date so long as application is made to
11the board and the proper fees are paid.

12(3) A restaurant or hotel licensee in good standing that
13applies for a retail wine and spirits license shall pay the
14same amount for the license as a distributor.

15(4) The board may not require a distributor making
16application for a wine and spirits retail license to pay the
17fees in full prior to issuance of the license. A distributor
18making application for a wine and spirits license has 48
19months from the issuance of the license to pay to the board
20the licensing fees plus a fee of 5%. If the licensee fails to
21make a payment to the board on a monthly basis, the board
22shall revoke the wine and spirits retail license and offer it
23on a first-come, first-served basis.

<-24(g) Taxes.--

25(1) Wine and spirits retail licensees shall be required
26to obtain a sales tax permit from the Department of Revenue.

27(2) Wine and spirits retail licensees shall collect and
28remit to the Department of Revenue all applicable taxes.

29(3) A wine and spirits retail licensee shall be
30considered a Pennsylvania Liquor Store for the purpose of

1collecting and remitting taxes under the act of March 4, 1971
2(P.L.6, No.2), known as the Tax Reform Code of 1971. A wine
3and spirits retail licensee may not be required to pay the
4sales tax when making wholesale purchases but shall collect
5the tax at retail.

6Section 312-A. Postqualification of selected applicants.

7(a) Investigation.--Upon selection of an applicant under
8section 303-A, the Bureau of Licensing of the board shall
9conduct an investigation of an applicant based upon the
10information submitted to evaluate whether:

11(1) the applicant qualifies as a reputable, responsible
12and suitable person to hold a wine and spirits retail license
13and operate a wine and spirits store;

14(2) the applicant proposes an acceptable facility and
15location for a wine and spirits store; and

16(3) the planned operation of the applicant complies with
17this article.

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

19(1) require additional information from an applicant;
20and

21(2) conduct onsite inspections, as necessary, to
22complete the postqualification process.

23(c) Agreement.--The board may enter into an agreement with
24the Pennsylvania State Police or the Office of Inspector General
25to:

26(1) assist the board in the conduct of an investigation
27under this section; and

28(2) provide for the reimbursement of a cost incurred for
29providing assistance.

30(d) Protocol for objections.--The board shall establish

1protocol for receiving written objections from residents,
2churches, hospitals, charitable institutions, schools and public
3playgrounds that are located near a proposed wine and spirits
4store location. The board may consider a written objection in
5the postqualification investigation of applicants. An objector
6under this paragraph may not appeal the decision of the board.

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

10(f) Acceptance of qualifications.--The qualifications of an
11applicant shall be accepted by the board if the investigation by
12the board reveals the following:

13(1) the applicant and its officers, directors and
14principals, if any, are of good repute, responsible and
15suitable for operating a wine and spirits store; and

16(2) the applicant possesses sufficient financial
17resources to:

18(i) operate a wine and spirits store;

19(ii) pay taxes due; and

20(iii) meet financial obligations;

21(3) the applicant possesses sufficient business
22experience to operate a wine and spirits store;

23(4) the proposed facilities comply with the operational
24requirements of the statement of conditions under this
25article; and

26(5) the proposed location within the community is
27suitable.

28(g) Issuance of license.--If a selected applicant's
29qualifications are accepted by the board, the board shall
30qualify the applicant and issue a wine and spirits retail

1license to the applicant upon the occurrence of the following:

2(1) execution and delivery to the board of the statement
3of conditions required under section <-305-A 313-A;

4(2) payment of the license fee by certified check or
5wire transfer to a designated restricted account established
6in the State Stores Fund. A distributor licensed under
7section 431 that obtains a wine and spirits retail license
8has 48 months to pay the license fee;

9(3) payment of an outstanding investigation fee; and

10(4) fulfillment of other conditions required by the
11board.

12(h) Approval of qualifications.--If the qualifications of
13the applicant are approved by the board under subsection (f),
14the board shall issue a wine and spirits retail license to the
15successful applicant consistent with the requirements of
16subsection (g).

17(i) License not entitlement.--

18(1) This article is not intended to establish an
19entitlement to a wine and spirits retail license. A wine and
20spirits retail license is a privilege between the board and
21the licensee.

22(2) Between the licensee and a third party, a wine and
23spirits retail license is property.

24(j) Terms of licensure.--

25(1) A wine and spirits retail license is in effect
26unless the board:

27(i) revokes, suspends or fails to renew the license;
28or

29(ii) revokes the operating authority of the licensee
30under the license requirements of this article.

1(2) A wine and spirits retail license is subject to
2renewal every two years consistent with this article.

3(3) This subsection does not relieve a wine and spirits
4retail licensee of the affirmative duty to notify the board
5of a change relating to the status of its license or to other
6information contained in the application materials on file
7with the board.

8Section 313-A. Wine and spirits retail licensee statement of
9conditions.

10(a) Statement of conditions.--The board shall develop a
11statement of conditions to be executed by a wine and spirits
12retail licensee governing the operations of the wine and spirits
13licensee.

14(b) Conditions.--In addition to other conditions the board
15deems necessary or appropriate for a specific wine and spirits
16retail licensee, a statement of conditions under this section
17shall include, at a minimum, the following conditions and impose
18the following obligations and requirements:

19(1) Under section 493.2, a wine and spirits retail
20licensee may not sell or distribute liquor to an individual
21under 21 years of age or to an individual who is visibly
22intoxicated.

23(2) A wine and spirits retail licensee may not operate a
24retail wine and spirits store located within:

25(i) three hundred feet of an elementary or secondary
26school without the approval of the department or board;
27or

28(ii) a municipality that voted to preclude the
29establishment of a State liquor store, unless the
30municipality subsequently votes to permit the board to

1issue a wine and spirits retail license.

2(3) A wine and spirits retail licensee's wine and
3spirits store and the facilities involved in its retail
4operations, including a change to the facilities during the
5term of the license, are subject to:

6(i) inspection and investigation by the board and
7enforcement bureau; and

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

9(4) A wine and spirits retail licensee shall maintain
10adequate security to protect the licensee's inventory from
11unauthorized sale or diversion and prevent its unauthorized
12distribution.

13(5) Unless specifically authorized in this act or with
14the prior approval of the board, a wine and spirits retail
15licensee may not engage in a separate business activity upon
16a licensed premises where retail liquor operations are
17conducted.

18(6) A wine and spirits retail licensee shall notify the
19board within 15 days of a change in persons holding an
20interest in the wine and spirits license.

21(7) A wine and spirits retail licensee shall notify the
22board within 15 days of becoming aware of an arrest, criminal
23indictment or conviction by the following:

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

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

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

27(iv) if the licensee is a corporation, an officer, a
28director or a shareholder in the corporation; and

29(v) an affiliate of the licensee.

30(8) A wine and spirits retail licensee shall notify the

1board within 15 days of becoming aware of a violation of this
2article by an individual listed in paragraph (7).

3(9) The premises of a wine and spirits store must be a
4self-contained unit with limited customer access dedicated to
5the sale of liquor and related merchandise. Except for a
6licensee that also holds a distributor license, a wine and
7spirits store may not have an interior connection with
8another business or with a residential building except as
9approved by the board. A purchase of wine and spirits must be
10paid for at a location within the confines of the licensed
11premises.

12(10) A wine and spirits retail licensee shall configure
13its premises in a manner and with adequate safeguards to
14ensure that:

15(i) liquor products are secure; and

16(ii) the licensed area may not be accessed during
17prohibited hours of operation.

18(11) A wine and spirits retail licensee may not hold,
19directly or indirectly, more than five wine and spirits
20retail locations within this Commonwealth or more than one
21wine and spirits retail license within a county.

22(12) A wine and spirits store may sell liquor for
23consumption off the premises and related merchandise within
24the licensed area of the store. A sale of related merchandise
25within the licensed area may not exceed 30% of the gross
26annual sales of a wine and spirits store. Unless the wine and
27spirits retail licensee operates another license that
28authorizes the sale of malt and brewed beverages for
29consumption off the premises in the same licensed area, a
30wine and spirits store may not sell malt or brewed beverages

1within its licensed premises.

2(13) A wine and spirits retail licensee shall make the
3premises and the facilities involved in the retail operation
4and the business and financial books and records of the
5retail operation available at any time for inspection and
6audit by the board and the enforcement bureau. The board
7shall promulgate regulations regarding the records that a
8wine and spirits retail licensee must maintain in its
9licensed premises.

10(14) A wine and spirits retail licensee may sell wine or
11spirits between 9 a.m. and 11 p.m. of any day except Sunday
12to a person that is not licensed under this act.

13(15) In addition to the hours authorized under paragraph
14(14), a wine and spirits retail licensee may, upon purchasing
15a permit from the board at an annual fee of $1,000, sell wine
16or spirits on Sunday between the hours of 9 a.m. and 9 p.m.
17to persons not licensed under this act.

18(16) A wine and spirits retail licensee may not employ
19an individual under 18 years of age to work on the licensed
20premises. An employee of a wine and spirits retail licensee
21under 21 years of age may not engage in the sale of liquor.

22(17) A wine and spirits retail licensee that is a
23corporation, a limited liability company, a limited
24partnership, a partnership, an association or other legal
25entity must be organized under the laws of this Commonwealth.

26(18) A wine and spirits retail licensee who is an
27individual must be a citizen of the United States and a
28resident of this Commonwealth.

29(19) A wine and spirits retail licensee shall:

30(i) comply with the responsible alcohol management

1program training under section 471.1; and

2(ii) ensure that the wine and spirits store managers
3and employees who may engage in the sale of liquor attend
4the responsible alcohol management training within six
5months of commencing employment.

6(20) A wine and spirits retail licensee may place its
7license in safekeeping for a period not to exceed two years:

8(i) pending transfer of the license from person-to-
9person or place-to-place or both; or

10(ii) during renovation of the premises where retail
11operations are conducted.

12(21) A wine and spirits retail license that remains in
13safekeeping for a period that exceeds two years shall be
14forfeited and resold by the board in a manner consistent with
15this subarticle.

16(22) Except as set forth in paragraph (16), an
17individual under 21 years of age may not enter the licensed
18area of a wine and spirits retail licensee unless accompanied
19by an adult.

20(23) A wine and spirits retail licensee shall utilize a
21transaction scan device to verify the age of an individual
22who appears to be under 35 years of age before making a sale
23of liquor. A wine and spirits retail licensee may not sell or
24share data from the use of a transaction scan device provided
25that the licensee may use the data to show the board or
26enforcement bureau that the licensee is in compliance with
27this article. As used in this paragraph, the term
28"transaction scan device" means a device capable of
29deciphering, in an electronically readable format, the
30information encoded on the magnetic strip or bar code of an

1identification card under section 495(a).

2(24) A wine and spirits retail licensee may not sell a
3liquor product at a price less than its underlying cost.

4(25) A wine and spirits retail licensee may not provide
5tasting samples of liquor on the premises where retail
6operations are conducted except in the manner set forth in
7the board's regulations related to tasting samples provided
8by sponsors.

9(26) A wine and spirits retail licensee may not require
10a customer to purchase a membership or pay a fee in order to
11purchase products, including wine and spirits, from the
12premises.

13(27) In an inquiry or investigation by the board or the
14enforcement bureau, a wine and spirits retail licensee shall
15cooperate fully and provide requested information.

16(c) Sanctions.--

17(1) A wine and spirits retail licensee that fails to
18abide by a condition contained in the licensee's statement of 
19conditions or commits a violation of this act or other
20Federal or State law is subject to citation by the
21enforcement bureau.

22(2) A citation under paragraph (1) may result in:

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

24(ii) nonrenewal of a license;

25(iii) revocation of <-temporary operating authority;
26or

27(iv) another penalty authorized under sections 471
28and 494.

29SUBARTICLE C

30DIVESTITURE OF WHOLESALE LIQUOR DISTRIBUTION

1Section 321-A. Wholesale divestiture.

2(a) Utilization.--In effectuating the intent of this
3article, the department shall utilize the authority provided
4under section 305-A and any other powers of the department, with
5the full cooperation and assistance of the board.

6(b) Establishment.--On the effective date of this section,
7the department shall establish all of the following:

8(1) An application process and schedule for the
9investigation and award of wine and spirits wholesale
10licenses under this article.

11(2) A blended brand valuation for each brand of liquor
12available for sale in this Commonwealth.

13(3) Procedures and standards governing the relationship
14between wine and spirits wholesale licensees and
15manufacturers and the ability and terms upon which that
16relationship may be terminated.

17(c) Coordination.--

18(1) The department shall:

19(i) coordinate scheduling so that wine and spirits
20wholesale license applications may be received, processed
21and investigated by the board's Bureau of Licensing
22during the retail divestiture process; and

23(ii) begin a coordinated effort to allow the board
24to issue licenses 12 months from the effective date of 
25this section.

26(2) The department must fully divest the board of all
27operations relating to the wholesale distribution of liquor
28within six months of commencing wholesale divestiture.

29Section 321.1-A. Issuance of wine and spirits wholesale
30licenses.

1(a) Authorization.--The board may issue wine and spirits
2wholesale licenses under the following conditions:

3(1) The following shall apply:

4(i) One wine and spirits wholesale license may be
5issued by the board to each qualified applicant.

6(ii) A wine and spirits wholesale license shall
7authorize the holder to sell and distribute brands of
8liquor, as proposed by an applicant and approved by the
9department, to wine and spirits retail licensees and
10other licensees of the board authorized to sell or
11distribute liquor under this act, to United States Armed
12Forces facilities located on United States Armed Forces
13installations within this Commonwealth and to the holder
14of a wholesale alcohol purchase permit issued by the
15board.

16(iii) The alcoholic products shipped into this 
17Commonwealth must be delivered to the wholesaler's 
18licensed premises. Upon delivery, the products shall be 
19unloaded, inventoried and remain on the licensed premises 
20for 48 hours before delivery is made to a retailer. 
21During that time period, the board may inspect and 
22inventory wholesale warehouses to verify taxes that are 
23required to be paid on the products.

24(2) Subject to the conditions and restrictions of this
25subarticle, wine and spirits wholesale licensees may sell and
26distribute more than one brand of liquor under the same wine
27and spirits wholesale license.

28(3) Upon application by a wine and spirits wholesale
29licensee, the board may amend its initial authorization under
30a wine and spirits wholesale license to include additional

1brands of liquor or exclude previously-approved brands of
2liquor.

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

4(1) On the effective date of this section, the
5department shall determine the wine and spirits wholesale
6license fee for each brand of liquor sold at wholesale by the
7board through its State liquor stores or via special liquor
8order for a continuous period of at least one year. The
9license fee shall be equal to the blended brand valuation for
10each brand of liquor authorized by the wine and spirits
11wholesale license multiplied by the wholesale acquisition
12factor.

13(2) The department shall publish a notice <-in the
14Pennsylvania Bulletin and on its Internet website of the wine
15and spirits wholesale license fee for each brand of liquor
16determined under paragraph (1). The department shall
17establish deadlines within which an applicant must submit an
18application for a wine and spirits wholesale license for the
19brands of liquor specified by the applicant.

20(3) The department must receive the required license fee
21for the brands of liquor specified by the applicant before a
22wine and spirits wholesale license is issued by the board to
23a successful applicant.

24(c) Brands not previously sold.--

25(1) For brands of liquor that have not been sold by the
26board at State liquor stores or via special liquor order for
27a continuous period of at least one year, the department
28shall calculate the blended brand valuation utilizing sales
29data for any portion of the year that the brand was sold in
30this Commonwealth, after consulting with the board on the

1most recent sales trends of the brand, both within and
2outside this Commonwealth.

3(2) If, during the term of a wine and spirits wholesale
4license, a wine and spirits wholesale licensee proposes to
5sell and distribute a new brand of liquor not previously sold
6in this Commonwealth, the wine and spirits wholesale licensee
7shall apply to the board for permission to sell the brand and
8pay an additional license fee determined in accordance with
9this section. In calculating the blended brand valuation for
10the new products, the board shall evaluate available sales
11data in other markets or sales trends of similar products
12either within or outside this Commonwealth.

13(d) Term.--

14(1) A wine and spirits wholesale license, after payment
15of the required license fee, shall be in effect unless
16suspended, revoked or not renewed under this article.

17(2) The license of a wine and spirits wholesale licensee
18in good standing shall be renewed every two years under this
19article.

20(3) Nothing under this subsection shall be construed to
21relieve a wine and spirits wholesale licensee of the
22affirmative duty to notify the board of changes relating to
23any of the following:

24(i) The status of its license.

25(ii) Information contained in the application
26materials on file with the department or the board.

27Section 322-A. Application for wine and spirits wholesale
28license.

29(a) Applications.--An application for a wine and spirits
30wholesale license shall be submitted on a form and in a manner

1as required by the board.

2(b) Eligibility.--A person may be eligible to apply for a
3wine and spirits wholesale license if the person satisfies all
4of the following:

5(1) Neither the applicant nor any affiliate of the
6applicant has applied for or holds a wine and spirits retail
7license or other license which authorizes the retail sale of
8wine and spirits to consumers.

9(2) The applicant is organized under the laws of this
10Commonwealth if it is any of the following:

11(i) A corporation.

12(ii) A limited liability company.

13(iii) A limited partnership.

14(iv) A partnership.

15(v) An association.

16(vi) A legal entity other than a legal entity listed
17under this paragraph.

18(3) The applicant is a citizen of the United States and
19a resident of this Commonwealth if that applicant is a
20natural person.

21(4) Neither the applicant nor any affiliate of the
22applicant, executive officer, director or general or limited
23partner of the applicant or person holding, directly or
24indirectly, a controlling interest in the applicant has been
25convicted of a crime listed under subsection (d)(10).

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

27(1) A properly licensed importing distributor of malt
28and brewed beverages from applying for and, if approved,
29being issued a wine and spirits wholesale license.

30(2) The holder of a limited winery license, a limited

1distillery license or a distillery license issued by the
2board from acquiring a wine and spirits wholesale license.

3(d) General requirements.--In addition to any other
4information required under this article or by the department or
5the board, the applicant for a wine and spirits wholesale
6license shall include the following:

7(1) The name, address and tax identification number of
8the applicant.

9(2) A statement as to whether the applicant is an
10individual, corporation, limited liability company, limited
11partnership, partnership or association and, if the applicant
12is not an individual, the state of incorporation or
13organization.

14(3) If the applicant is not an individual, the name and
15residence address of each executive officer, director,
16general or limited partner or person holding a controlling
17interest in the applicant.

18(4) If the applicant is an association, the name and
19residence address of each person constituting the
20association.

21(5) A list of the brands of liquor the applicant
22proposes to engage in wholesale distribution on a Statewide
23basis.

24(6) A sworn statement that the applicant has entered
25into a contractual relationship with one or more liquor
26manufacturers, importers or vendors of record for the
27distribution in this Commonwealth of a brand or brands of
28liquor, regardless of whether the contractual relationship is
29contingent upon the board issuing a wine and spirits
30wholesale license to the applicant.

1(7) The proposed location and proof of ownership or
2lease for the wholesale operation, including proposed
3warehouses, if available.

4(8) Floor plans for any facility proposed to be used in
5wholesale operations and existing design plans for any
6facility that is planned, but not yet constructed, to the
7extent the floor plans are available.

8(9) Information disclosing all arrests of and all
9citations issued for nonsummary offenses to an applicant and
10any affiliate of the applicant, executive officer, director
11or general or limited partner of the applicant or person
12holding a controlling interest in the applicant. The
13information shall include:

14(i) A brief description of the circumstances
15surrounding the arrest or issuance of the citation.

16(ii) The specific offense charged or cited.

17(iii) The ultimate disposition of the charge or
18citation, including the details of a dismissal, plea
19bargain, conviction, sentence, pardon, expungement or
20order of Accelerated Rehabilitative Disposition.

21(10) A sworn statement that the applicant and any
22affiliate of the applicant, or any executive officer,
23director or general or limited partner of the applicant or
24person holding a controlling interest in the applicant have
25never been convicted:

26(i) of a crime involving fraud, moral turpitude or
27racketeering within a period of ten years immediately
28preceding the date of the application;

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

30(iii) in a Federal or state tribunal, including this

1Commonwealth, of the violation of a Federal or state
2liquor law.

3(11) A statement that the applicant intends to
4continuously operate as a wine and spirits wholesale licensee
5for the duration of the license term and to use its best
6efforts to provide a level of service, including product
7availability, reasonably equivalent to the level of service
8currently provided by the Commonwealth.

9(12) A financial statement or letter of credit in a form
10and containing information determined by the department to
11indicate the applicant's financial capability to operate the
12wholesale operation and the estimated volume of wholesale
13business to be conducted annually.

14(13) A current tax certificate issued by the Department
15of Revenue showing the amount of taxes owed to the
16Commonwealth for the applicant and any affiliate of the
17applicant, executive officer, director or general or limited
18partner of the applicant or person holding a controlling
19interest in the applicant.

20(14) A signature and verification by oath or affirmation
21or under penalty of unsworn falsification to authorities by
22one of the following:

23(i) The applicant, if the applicant is a natural
24person.

25(ii) A person specifically authorized by the legal
26entity to sign the application, if the applicant is a
27legal entity. Written evidence of the authority to sign
28must be attached to the signature and verification.

29(e) Additional information.--An applicant shall, during the
30application process, provide any other information determined to

1be appropriate by the department.

2(f) Amended application.--If a change occurs in any
3information provided to the department or the board as part of
4the application process, the applicant shall immediately notify
5the department or the board of the change and timely provide
6amended information to the department or the board in a form and
7manner determined by the department or the board.

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

9(1) An application filing fee of $10,000 shall be due
10upon application for a wine and spirits wholesale license.
11The application filing fee shall be refunded if, due to no
12fault of the applicant, the wine and spirits wholesale
13license is not approved.

14(2) The department shall establish, charge and collect
15fees from an applicant to recover the costs directly related
16to the board's review and investigation of the application
17for a wine and spirits wholesale license. The board shall
18have the same authority relating to fees as to applications
19for renewal.

20Section 323-A. Review and investigation of application.

21(a) Completeness of application.--

22(1) The following shall apply:

23(i) The department may not consider an incomplete
24application and shall notify the applicant in writing if
25an application is incomplete.

26(ii) An application shall be considered incomplete
27if it does not include all applicable fees and all
28information and accompanying documentation required by
29the department. Unpaid taxes identified on the tax 
30certificate required to be filed under section 

1322-A(d)(13) must be paid before the application is 
2considered complete.

3(2) A notification of incompleteness shall state the
4deficiencies in the application that must be corrected prior
5to consideration of the merits of the application.

6(3) The applicant must be afforded a reasonable period
7of time, as determined by the department, to cure the
8deficiencies.

9(4) If the applicant fails to timely cure noticed
10deficiencies within the time specified by the department, the
11application shall be deemed denied by the department without
12further action.

13(b) Investigation.--After receipt of an application for a
14wine and spirits wholesale license and a determination that the
15application is complete, the department shall provide the
16application to the board's Bureau of Licensing to conduct an
17investigation of the applicant. The investigation shall include
18and the applicant shall have the burden of demonstrating the
19following:

20(1) The truth and veracity of the information provided
21in the application.

22(2) The applicant's cooperation and the cooperation of
23any affiliate of the applicant and any executive officer,
24director or general or limited partner of the applicant or
25person holding a controlling interest in the applicant in the
26application process and with any request by the department or
27the board for any information deemed necessary for licensure.

28(3) The good character, reputation and suitability of
29the applicant and any affiliate of the applicant, executive
30officer, director or general or limited partner of the

1applicant or person holding a controlling interest in the
2applicant.

3(4) The applicant possesses sufficient financial
4resources to:

5(i) Operate as a wine and spirits wholesale
6licensee.

7(ii) Pay all taxes due and owing to the
8Commonwealth.

9(iii) Assume liability for the safe operation of the
10wholesale operations.

11(5) The applicant possesses sufficient financial
12resources and experience to create and maintain a successful
13and efficient wholesale operation that provides service at a
14level that is reasonably equivalent to the level of service
15currently provided in this Commonwealth on the effective date
16of this section.

17(6) The applicant has entered into a contractual
18relationship with one or more licensed manufacturers,
19importers or vendors of record for the distribution in this
20Commonwealth of a brand or brands of liquor regardless of
21whether the contractual relationship is contingent upon the
22board issuing a wine and spirits wholesale license to the
23applicant.

24(7) The physical facilities proposed to be used in the
25applicant's wholesale operations are located and designed to:

26(i) assure that all warehouses are located within
27this Commonwealth and licensed for the storage of liquor;

28(ii) function as a self-contained unit, with limited
29customer access;

30(iii) not have any interior connection with any

1other business or with any residential building without
2prior department or board approval;

3(iv) provide adequate security to protect the
4applicant's inventory from unauthorized sale or
5diversion; and

6(v) protect the public interest.

7(c) Assistance with investigations.--The <-department <-board
8may enter into an agreement with the Pennsylvania State Police
9or the Office of Inspector General to assist the <-department
<-10board in conducting investigations under this section and to
11provide for the reimbursement of actual costs incurred for
12providing the assistance. The <-department <-board may establish,
13charge and collect fees from an applicant to recover the costs
14of investigation.

15Section 324-A. Issuance of licenses.

16(a) Notification.--Upon completion of the investigation
17under section 323-A, the board shall inform the department of
18the results of its investigation. The <-department <-board shall
19inform the applicant in writing of its decision to approve or
20deny the application.

21(b) Approval.--If the application is approved, the
22department shall require the successful applicant to pay the
23license fee, as required under section 321.1-A, based on the
24brand licensing fees established under section 321.1-A for the
25brands of liquor approved for the applicant.

26(c) Denial.--

27(1) If an application is denied, the <-department <-board
28shall provide the applicant with the specific reasons for the
29denial in the written notification required under subsection
30(a).

1(2) The applicant shall be entitled to a hearing on the
2denial, if a hearing is requested within ten days of the
<-3department's <-board's notification and the request is in
4writing on a form and in a manner determined by the
<-5department <-board.

6(3) A hearing under this subsection shall be conducted
7in accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating to
8practice and procedure of Commonwealth agencies).

9(d) Issuance.--After approval of an application, the board
10shall issue a wine and spirits wholesale license to the
11applicant for the exclusive privilege to sell approved brands of
12liquor in this Commonwealth, if the applicant has completed all
13of the following:

14(1) Paid the wine and spirits wholesale license fee
15required under this article. Payment must be made by
16certified check or wire transfer to a designated restricted
17account in The State Stores Fund.

18(2) Paid outstanding application or investigation fees.

19(3) Executed and delivered to the board the statement of
20conditions required under section 325-A.

21(4) Repurchased from the board remaining marketable
22inventory of the brands authorized under its license which
23are owned by the board at the board's purchase order cost and
24paid applicable taxes due and an administrative fee
25determined by the board. The wine and spirits wholesale
26licensee shall coordinate, at its own cost, the removal of
27remaining product owned by the board.

28(5) Fulfilled any other conditions required by the
29department or the board or provided for under this article.

30(e) License as privilege.--

1(1) Nothing under this article is intended or may be
2construed to create an entitlement to a wine and spirits
3wholesale license.

4(2) The authorization to participate in the distribution
5and sale of liquor as a wine and spirits wholesale licensee
6is a privilege conditioned upon this article.

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

8(1) Except as set forth in paragraph (2), if a wine and
9spirits wholesale license has been issued for a particular
10brand of liquor, the board may not engage in the sale of that
11brand of liquor.

12(2) The board may coordinate the repurchase of remaining
13board inventory of brands as provided under Subarticle D.

14(3) The board's Bureau of Licensing shall provide
15adequate notice to the board's Bureau of Supply Chain that a
16wine and spirits wholesale license application is ready for
17license approval to insure that appropriate inventory
18reduction can be effectuated without causing a shortage of
19the brand at issue.

20Section 325-A. Wine and spirits wholesale licensee statement of
21conditions.

22(a) Statement of conditions.--The department, in
23consultation with the board, shall develop a statement of
24conditions to be executed by each wine and spirits wholesale
25licensee governing the operation of the wine and spirits
26wholesale licensee.

27(b) Conditions, restrictions and prohibited acts.--In
28addition to any other conditions the department, in consultation
29with the board, deems necessary or appropriate for a specific
30wine and spirits wholesale licensee or which may be mandated for

1all licensees through regulations of the department or the
2board, the statement of conditions under subsection (a) shall
3include the following:

4(1) A wine and spirits wholesale licensee may not sell
5liquor to a person, except a person specified in section
6321.1-A(a)(1).

7(2) A wine and spirits wholesale licensee must serve all
8licensees eligible to purchase and resell liquor under this
9act and must make liquor available for sale to those
10licensees under the same pricing structure.

11(3) Except for a wine and spirits wholesale licensee
12that holds an importing distributor license under section
13431, a wine and spirits wholesale licensee may not sell malt
14or brewed beverages.

15(4) A wine and spirits wholesale licensee may not engage
16in conduct that would constitute any of the following:

17(i) Variable pricing.

18(ii) Unfair or deceptive trade practices proscribed
19under Federal or State law or regulation.

20(iii) Intentional exclusion of competing brands of
21liquor from the marketplace.

22(5) A wine and spirits wholesale licensee may only sell
23and distribute liquor products in this Commonwealth that are
24subject to a contractual relationship between the wine and
25spirits wholesale licensee and one or more licensed
26manufacturers or importers of wine and spirits.

27(6) (i) A wine and spirits wholesale licensee shall do
28all of the following:

29(A) Acquire liquor exclusively from:

30(I) a licensed manufacturer or importer of

1wine and spirits with whom the wine and spirits
2wholesale licensee has the contractual authority
3to sell at wholesale as provided under this act;
4or

5(II) an entity affiliated with the wine and
6spirits wholesale licensee.

7(B) Keep a detailed log of wholesale liquor
8transactions, including acquisitions of liquor from
9an entity listed under clause (A) and sales to
10licensees under this act.

11(ii) If liquor is acquired from an entity affiliated
12with the wine and spirits wholesale licensee, the entity
13shall, for taxation purposes, be considered a licensed
14manufacturer or importer of wine and spirits.

15(7) A wine and spirits wholesale licensee's licensed
16premises and all facilities involved in its wholesale
17operations, including any changes to the facilities during
18the term of the license, shall be subject to the inspection,
19investigation and approval of the department or the board or
20the enforcement bureau.

21(8) A wine and spirits wholesale licensee shall maintain
22adequate security to protect the licensee's inventory from
23unauthorized sale, removal or theft and prevent its
24unauthorized distribution.

25(9) As follows:

26(i) Except as provided under paragraph (1), a wine
27and spirits wholesale licensee may not engage in a
28separate business activity on a premises on which
29wholesale liquor operations are conducted without prior
30approval of the board.

1(ii) A wine and spirits wholesale licensee which
2holds an importing distributor license may engage in
3sales of malt or brewed beverages under this act.

4(10) A wine and spirits wholesale licensee shall collect
5and remit to the Department of Revenue all applicable taxes.

6(11) A wine and spirits wholesale licensee shall be
7considered a State liquor store for the purpose of collecting
8and remitting taxes under <-Article II of the act of March 4,
91971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
10from persons licensed to sell liquor for consumption on the
11premises under Article IV.

12(12) A wine and spirits wholesale licensee shall notify
13the board within 15 days of a change in a person holding a
14controlling interest in the licensee.

15(13) A wine and spirits wholesale licensee shall notify
16the board within 15 days of becoming aware of an arrest,
17criminal indictment or conviction by the licensee, an
18affiliate of the licensee or an executive officer, director
19or general or limited partner of the licensee or person
20holding a controlling interest in the licensee.

21(14) A wine and spirits wholesale licensee shall notify
22the board within 15 days of becoming aware of a violation of
23this act by the licensee, an affiliate of the licensee or an
24executive officer, director or general or limited partner of
25the licensee, person holding a controlling interest in the
26licensee or employee of the licensee.

27(15) As follows:

28(i) A wine and spirits wholesale licensee may not
29operate in a manner which constitutes a violation of
30Federal or State law, including antitrust or other unfair

1trade practices, or creates a monopolistic liquor
2distribution system in this Commonwealth.

3(ii) If a wine and spirits wholesale licensee seeks
4to be approved by the department or the board to
5distribute additional brands of liquor which would give
6the licensee a control of more than 50% of the liquor
7distributed in the wholesale market of this Commonwealth,
8in terms of gross dollar sales, the board shall convene a
9hearing to determine whether approval of the proposed
10application for additional brands would constitute a
11violation of antitrust or other unfair trade practice
12laws, or would create a monopolistic liquor distribution
13system in this Commonwealth.

14(iii) The board is authorized to promulgate
15regulations providing for the procedure for hearings
16under subparagraph (ii).

17(16) A wine and spirits wholesale licensee shall make
18the licensed premises, all of the facilities involved in the
19wholesale operation and all of the business and financial
20books and records of the wholesale operation available at any
21time for inspection and audit by the department, the board or
22the enforcement bureau. The board shall promulgate
23regulations regarding the records that a licensee must
24maintain on its premises.

25(17) A wine and spirits wholesale licensee shall
26cooperate fully in an inquiry or investigation by the
27department or the board or the enforcement bureau and provide
28information requested by the department, the board or the
29enforcement bureau.

30(18) A wine and spirits wholesale licensee which is a

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

4(19) A wine and spirits wholesale licensee which is a
5natural person must be a citizen of the United States and a
6resident of this Commonwealth.

7(c) Sanctions.--A wine and spirits wholesale licensee that
8fails to abide by a condition contained in the licensee's
9statement of conditions or commits a violation of this act or
10Federal or State law:

11(1) shall be subject to citation by the enforcement
12bureau; and

13(2) may be subject to:

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

15(ii) nonrenewal of the license or revocation of
16temporary operating authority; or

17(iii) other penalties authorized under sections 471
18and 494.

19Section 326-A. Loss of rights to wholesale brands of liquor.

20The department<-, in consultation with the board, shall
21establish procedures and standards governing the relationship
22between wine and spirits wholesale licensees and manufacturers
23and the ability and terms upon which that relationship may be
24terminated. The procedures and standards shall incorporate the
25following principles:

26(1) As follows:

27(i) A manufacturer having a contract, including all
28written or oral agreements, understandings or other
29arrangements with a wine and spirits wholesale licensee
30for the distribution in this Commonwealth of a brand of

1liquor may terminate the distribution rights and transfer
2the rights to another wine and spirits wholesale licensee
3upon the voluntary agreement of both licensees.

4(ii) If a voluntary termination and transfer occurs,
5the manufacturer shall provide written notice to the
6board indicating that affected wine and spirits wholesale
7licensees have both agreed to the termination and
8transfer. A copy of the notification to the board shall
9be provided to both licensees.

10(2) If a wine and spirits wholesale licensee does not
11agree to the termination or transfer of its distribution
12rights, the manufacturer may only terminate or transfer the
13rights upon payment to the terminated licensee of reasonable
14compensation.

15(3) A voluntary or involuntary termination and transfer
16of the right to distribute the brand of liquor shall comply
17with this section.

18Section 327-A. Transfer of brands of liquor.

19(a) Prohibition.--No brand of liquor offered for sale in
20this Commonwealth may be transferred to a different wine and
21spirits wholesale licensee without prior approval from the
22board.

23(b) Transfer fee.--An application to the board to transfer
24the right to distribute a brand of liquor shall be subject to an
25application fee equal to 1% of the initial license fee
26attributable to the brand of liquor or $1,000, whichever is
27greater.

28SUBARTICLE D

29CLOSURE OF STATE LIQUOR STORES

30AND ASSISTANCE FOR DISPLACED EMPLOYEES

1Section 331-A. Closure of State liquor stores.

2(a) Process for closure.--

3(1) The board shall review the viability of a store 
4located within a county where the number of privately owned 
5and privately operated wine and spirits retail licenses plus 
6the number of grocery store licenses equal the number of 
7Heritage State Stores.

8(2) Where the number of Heritage State Stores equals the
9number of privately owned and privately operated wine and
10spirits retail licenses plus the grocery store licenses, the
11board shall provide a rationale to the department for the
12continued operation or closure of a store located in a
13county.

14(3) A Heritage State Store designated for closure shall
15cease operations within 60 days.

16(4) Where the number of privately owned and privately
17operated wine and spirits retail licenses plus the grocery
18store licenses exceed the number of Heritage State Stores by
19a factor of two, the Heritage State Stores within a county
20must close within six months.

21(5) The board may not operate fewer than 100 Heritage
22State Stores within this Commonwealth.

23(b) Disposition of liquor.--The board shall arrange for the
24disposition of the liquor remaining in inventory at a designated
25store. In order to effectuate this subsection, the board may, in
26consultation with the department, do any of the following:

27(1) Coordinate with the vendor of record for the
28repurchase products by the vendor of record.

29(2) Sell products to newly licensed wine and spirits
30retail licensees.

1(3) Transport products for sale at another operating
2State liquor store.

3(c) Disposition of nonliquor State-owned property.--The
4department, in consultation with the board, shall establish a
5procedure for the sale of the nonliquor inventory, property and
6fixtures of all State liquor stores consistent with 62 Pa.C.S.
7Ch. 15 (relating to supply management). Wine and spirits retail
8licensees shall have the opportunity to bid on the items to be
9sold or otherwise participate in the sale. All proceeds from the
10sales shall be deposited into The State Stores Fund.

11(d) Pennsylvania Liquor Store leases.--The board shall
12provide immediate notice to the lessor upon receipt of the
13department's notice to close a designated Pennsylvania Liquor
14Store.

15(e) Hiring restrictions.--

16(1) Notwithstanding any other provision of this act <-and
17except as provided under subsection (f), the board may not
18hire additional salaried or wage employees for the purpose of
19staffing its retail operations, including its bureau of
20marketing and retail operations, unless explicitly authorized
21by the department.

22(2) Paragraph (1) shall not prohibit the board from
23hiring personnel, with approval from the department, to
24adequately staff its Bureau of Supply Chain for the purpose
25of transitioning its retail and wholesale operations to
26licensees of this article.

<-27(f) Limited authority to hire temporary workers.--

28(1) Notwithstanding any other provision of law and
29except as provided under paragraph (3), the board, with the
30approval of the department, may temporarily staff a State

1liquor store which has not been designated for closure under
2this section, if staffing and service levels would be
3otherwise compromised. The board may utilize the services of
4an employment agency to carry out this paragraph.

5(2) The act of August 5, 1941 (P.L.752, No.286), known
6as the Civil Service Act, shall not apply to temporary
7employees hired under paragraph (1).

8(3) The board may not employ temporary workers at a
9State liquor store if the board determines the State store 
10must close.

11(4) A temporary worker engaged by the board under this
12subsection shall not be considered a displaced employee.

13Section 331.1-A. Licensee service centers.

14The board shall work collaboratively with the department <-and
15the retail divestiture strategy committee to ensure that an
16adequate number of stores designated for sales to licensees or
17licensee service center locations are maintained during the
18retail and wholesale divestiture process so that licensees are
19able to timely acquire products sold by the board.

20Section 332-A. Transition assistance committee.

21(a) Formation.--

22(1) On the effective date of this section, the
23department shall designate individuals to serve on a
24committee for the purpose of managing the staffing transition
25and displacement of employees during the divestiture process.

26(2) The committee, which shall be chaired by a
27representative from the department, shall involve the
28participation of the Office of Administration, the Civil
29Service Commission, the Department of Labor and Industry and
30the board's bureau of human resources, to ensure a

1coordinated approach to allocating personnel and assisting
2displaced employees during the transition to find an
3appropriate position.

<-4(3) The committee may engage the services of a third-
5party administrator to assist in administering the duties
6under paragraph (2). The procedural constraints of 62 Pa.C.S.
7Pt. I (relating to Commonwealth Procurement Code) shall not
8apply to this paragraph.

<-9(3) The department shall contract with advisors
10necessary to assist the department and the board in
11administering the duties under paragraph (2). The contracts
12shall not be subject to the provisions of 62 Pa.C.S. Ch. 5
13(relating to source selection and contract formation).

14(b) Counseling and placement.--The committee shall
15coordinate with the Office of Administration to provide
16counseling and other general assistance to employees of the
17board who are displaced to transition the employees to other
18employment in either the public or private sector.

19(c) Transition funding.--The costs for the programs provided
20under this subarticle shall be paid for out of the proceeds from
21the divestiture of the board's wholesale and retail operations.

22Section 333-A. Preference in public employment hiring.

23(a) Civil service examinations.--

24(1) A displaced employee who successfully passes a civil
25service appointment examination shall be marked or graded an
26additional three points above the mark or grade credited for
27the examination if all of the following apply:

28(i) The examination is for a paid position
29administered under the act of August 5, 1941 (P.L.752,
30No.286), known as the Civil Service Act, and in the

1classified service existing under the commission's
2jurisdiction.

3(ii) The employee establishes the qualifications
4required by law for appointment to the position.

5(2) The total mark or grade, including the mark-up under
6paragraph (1), obtained by the displaced employee shall
7represent the final mark or grade of the employee and shall
8determine the employee's standing on any eligibility list
9certified or furnished to the appointing power.

<-10(3) The three additional points awarded under paragraph
11(1) shall be in addition to any points that shall be afforded
12to a veteran meeting the requirements of 51 Pa.C.S. § 7103
13(relating to additional points in grading civil service
14examinations).

15(b) Certification.--The commission shall require the board
16to certify a list of displaced employees under subsection (a).
17Placement on the list by the board shall establish eligibility
18for the preference granted under subsection (a).

19(c) Noncivil service positions.--If a paid State position
20does not require a civil service examination, a displaced
21employee, possessing the requisite qualifications and who is
22eligible for appointment to a paid State position in offices
23under the Governor's jurisdiction within the executive branch
24shall be given a preference in the appointment by the appointing
25authority <-over nonveteran candidates.

26(d) (Reserved).

27(e) Eligibility.--

28(1) A displaced employee's eligibility for the mark-up
29provided under subsection (a) and for the preference for
30noncivil service positions provided under subsection (c)

1shall cease upon the occurrence of one of the following:

2(i) The displaced employee's appointment or hiring
3into a position in the classified service existing under
4the commission's jurisdiction or into a paid State
5position where no civil service examination is required.

6(ii) Four years from the effective date of this
7section.

8(2) In order to be eligible for the mark-up provided
9under subsection (a) and for the preference for noncivil
10service positions provided under subsection (c), a displaced
11worker must be terminated as a sole and direct result of the
12decision to cease wholesale and retail operations under this
13article and must work until the final day set by the board
14for that employee's job function.

15Section 334-A. Career training and post-secondary education
16grant eligibility.

17(a) Eligibility.--A displaced employee shall be eligible for
18a two-year grant for attending a program of instruction at an
19institution of higher education, including career training and
20adult education courses of study, within one year of the date of
21displacement from State service in the following amount:

22(1) two thousand dollars per year for attendance on a
23full-time basis; or

24(2) one thousand dollars per year for attendance on a
25part-time basis.

26(b) Certification.--The board shall certify the list of
27displaced employees to the <-agency <-Pennsylvania Higher Education
28Assistance Agency.

29(c) Grant award.--The agency shall make a determination of
30grant eligibility and shall pay the grant directly to the

1institution of higher education attended by the displaced
2employee in a manner consistent with the <-agency's <-Pennsylvania
3Higher Education Assistance Agency's regulations.

4Section 335-A. Reemployment tax credit.

5(a) Eligibility.--

6(1) A displaced employee shall be eligible for a two-
7year reemployment tax credit voucher in the amount of $2,000
8per taxable year.

9(2) The voucher under paragraph (1) shall be made
10available to each displaced employee upon termination of
11employment.

12(3) Each voucher under paragraph (1) shall be certified
13by the board before the voucher is provided to the displaced
14employee.

15(4) The Department of Revenue shall be informed of each
16displaced employee to whom a voucher under paragraph (1) has
17been provided.

18(b) Transfer of voucher.--An employer in this Commonwealth
19who employs a displaced employee on a full-time basis may, upon
20transfer of the voucher from the employee to the employer, use
21the voucher as a credit against the State tax liability of the
22employer, if the employer can demonstrate the following:

23(1) The employee for whom the tax credit is being sought
24was displaced from the board within 12 months of being
25employed by the employer.

26(2) The former board employee has been employed by the
27employer seeking the tax credit on a full-time basis for a
28period not less than one year.

29(c) Voucher submittal.--The employer shall submit the tax
30credit voucher to the Department of Revenue with the information

1required under subsection (b)(1) and (2) to claim a tax credit
2against the employer's liability for a tax identified under
3subsection (d)(2).

4(d) Amount of credit.--

5(1) An employer may claim a reemployment tax credit for
6each job filled by a displaced employee of $2,000 per
7taxable year for a maximum of two taxable years.

8(2) An employer may apply the reemployment tax credit to
9100% of the employer's:

10(i) State corporate net income tax, capital stock
11and franchise tax or the personal tax of a shareholder of
12the company if the company is a Pennsylvania S
13corporation.

14(ii) Insurance premiums tax, gross receipts tax,
15bank and trust company shares tax, mutual thrift
16institutions tax or title insurance companies shares tax.

17(iii) Any combination of the taxes under
18subparagraphs (i) and (ii).

19(3) A displaced employee whose subsequent employment is
20terminated with an employer and who has utilized the
21reemployment tax credit voucher to claim a one-year $2,000
22tax credit may transfer the voucher to a new employer who may
23use the remaining $2,000 tax credit as a claim against the
24employer's tax liability for taxes identified under paragraph
25(2).

26(4) The term of the reemployment tax credit voucher may
27not exceed two years from the date the voucher is provided to
28the qualified displaced employee.

29Section 336-A. Protection of existing benefits.

30(a) Contract benefits.--Nothing under this section shall be

1deemed to affect:

2(1) Pension benefits accrued prior to the date of
3separation occurring as a sole and direct result of the
4divestiture of the board's wholesale and retail operations
5under this article.

6(2) Payment of an accrued benefit derived from the terms
7of a preexisting collective bargaining agreement payable upon
8separation from employment.

9(b) Collective bargaining.--As a result of the preferential
10hiring benefits, the tax credit for subsequent employers and the
11protection of benefits arising from an employee's pension or
12from a preexisting collective bargaining agreement under this
13section, the board shall be deemed to have satisfied all
14obligations to bargain over the <-effects <-impact of the decision
15to cease wholesale and retail operations under this article
16which may arise under<-:

17(1) the act of June 1, 1937 (P.L.1168, No.294), known as
18the Pennsylvania Labor Relations Act; or

19(2) the act of July 23, 1970 (P.L.563, No.195), known as
20the Public Employe Relations Act.

21(c) Local regulation.--This article supersedes a local
22regulation, ordinance or resolution of a political subdivision
23regarding notice to displaced workers.

24SUBARTICLE E

25MISCELLANEOUS PROVISIONS

26Section 341-A. License renewals.

27(a) Renewal.--

28(1) Wine and spirits licenses issued under this article
29shall be subject to renewal every two years, with validation.

30(2) The application for renewal shall be submitted on a

1form provided by the board at least 30 days prior to the
2expiration of the wine and spirits license and shall include,
3at a minimum, an update of the information contained in the
4initial and prior renewal applications and the payment of any
5renewal fee required under this article.

6(3) A wine and spirits license for which a completed
7renewal application and fee has been received by the board
8shall continue to be valid until the board sends written
9notification to the licensee that the board has denied the
10renewal of the license.

11(b) Fee.--

12(1) A renewal fee of $1,000 shall be due upon
13application for the renewal or validation of a wine and
14spirits retail license.

15(2) A renewal fee of $5,000 shall be due upon
16application for the renewal or validation of a wine and
17spirits wholesale license.

18(3) The board may adjust the renewal fee to ensure that
19the fee adequately recovers the costs associated with
20investigating the renewal application.

21(c) Renewal hearings.--The director of the board's Bureau of
22Licensing may object to the renewal of licenses issued under
23this article pursuant to the same authority granted under
24section 470. Hearings and appeals arising from the objections
25shall be conducted in accordance with section 464.

26(d) Revocation of operating authority.--

27(1) The board may revoke the operating authority of a
28wine and spirits license issued under this article if it
29finds that the licensee or any of its affiliates, executive
30officers, directors or general or limited partners or persons

1holding a controlling interest in the licensee:

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

3(ii) has furnished the board with false or
4misleading information; or

5(iii) is no longer reputable or suitable for
6licensure.

7(2) If a wine and spirits license is revoked or not
8renewed, the wine and spirits licensee's authorization to
9conduct business as a wine and spirits licensee shall
10immediately cease until the board notifies the licensee that
11the operating authority has been reinstated.

12(e) Affirmative duty.--Nothing under this section shall
13relieve a wine and spirits licensee of the affirmative duty to
14notify the board of changes relating to the status of its
15license or to other information contained in the application
16materials filed with the board.

17Section 342-A. Revocation, suspension and fines.

18(a) Authority of enforcement bureau.--The enforcement bureau
19shall have the authority to issue a citation against a wine and
20spirits licensee in the same manner as under section 471. The
21bureau may issue a citation to the licensee based on the
22following conduct:

23(1) The licensee violated any of the following:

24(i) A provision of this act.

25(ii) The regulations of the board.

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

27(iv) The licensee violated any other law of this
28Commonwealth.

29(2) The licensee knowingly presented to the board false,
30incomplete or misleading information.

1(3) The licensee pleaded guilty, entered a plea of nolo
2contendere or has been found guilty of a felony by a judge or
3jury in a Federal or State court.

4(4) The licensee failed to operate the business or to
5provide a reasonable level of consumer service.

6(5) The licensee failed to remit taxes as required.

7(b) Administrative Law Judge.--Enforcement matters shall be
8heard by an administrative judge in the same manner as under
9section 471. The administrative law judge may issue a fine and
10either suspend or revoke the license. Appeals may be taken in
11the same manner as under section 471.

12(c) Sales prohibited.--No person may sell liquor at a
13premises if any of the following apply:

14(1) The wine and spirits license applicable to that
15premises has been suspended or revoked or has expired.

16(2) The operating authority for the wine and spirits
17license has been revoked.

18(d) Public sale.--If a wine and spirits retail license is
19revoked, forfeited or surrendered under this article, the board
20shall conduct a sale of the license, consistent with this
21article.

22Section 343-A. Sale, assignment or transfer of license.

23(a) Prohibition.--No person may sell, assign or transfer
24their interest in a wine and spirits license granted under this
25article to another person until the board has received,
26investigated and approved a transfer application. If the license
27is a wine and spirits retail license, the wine and spirits
28licensee must have been in continuous operation for at least one
29year prior to the date of the application to transfer the
30license.

1(b) Compliance.--Any person to whom a wine and spirits
2license is transferred must comply with this article prior to
3the transfer of the license.

4(c) Transfer fee.--

5(1) The transfer of a wine and spirits license shall be
6subject to a transfer fee equal to 1% of the license fee paid
7for the license and shall be paid as a condition of the
8transfer of the license.

9(2) The transfer fee applicable to the transfer of
10brands of liquor under section 327-A(b) shall not apply to
11the transfer of a wine and spirits wholesale license.

12(3) A wine and spirits retail license may not be
13transferred to another location outside the county in which
14it was initially issued.

15(d) Change of control.--For the purposes of this section, a
16change of control of a wine and spirits wholesale or retail
17licensee shall be deemed to be a sale, assignment or transfer of
18a wine and spirits wholesale or retail license. A wine and
19spirits wholesale or retail licensee must notify the board
20immediately upon becoming aware of a proposed or contemplated
21change of control.

22Section 344-A. The State Stores Fund.

23All fees, assessments, bid amounts or other charges paid by
24wine and spirits license applicants or licensees shall be paid
25or transferred into a restricted account <-which is hereby 
26established in The State Stores Fund. <-Funds in the restricted 
27account shall be used for programs under Subarticle D and any 
28other use specified by statute. Any fines collected by the
29administrative law judge from the licensees shall be remitted to
30the enforcement bureau for continued enforcement efforts.

1Section 345-A. Return of fee or bid.

2(a) Wine and spirits wholesale license fee.--The entire wine
3and spirits wholesale license fee paid by a wine and spirits
4wholesale licensee under section 324-A(d)(1) shall be returned
5if this article is amended or otherwise altered by an act of the
6General Assembly within five years of the effective date of this
7section to change provisions relating to the loss of rights to
8wholesale brands of liquors under section 326-A.

9(b) Wine and spirits retail licensee fee or bid amount.--The
10entire wine and spirits retail license fee or retail bid amount
11paid by a wine and spirits retail licensee shall be returned if
12this article is amended or otherwise altered by an act of the
13General Assembly within five years of the effective date of this
14section to authorize additional wine and spirits retail licenses
15under section 311.1-A.

16Section 10. Section 401 of the act, amended December 22,
172011 (P.L.530, No.113), is amended to read:

18Section 401. Authority to Issue Liquor Licenses to Hotels,
19Restaurants and Clubs.--(a) Subject to the provisions of this 
20act and regulations promulgated under this act, the board shall 
21have authority to issue a retail liquor license for any premises 
22kept or operated by a hotel, restaurant or club and specified in 
23the license entitling the hotel, restaurant or club to purchase 
24liquor from a Pennsylvania Liquor Store or a wine and spirits 
25wholesale licensee and to keep on the premises such liquor and, 
26subject to the provisions of this act and the regulations made 
27thereunder, to sell the same and also malt or brewed beverages 
28to guests, patrons or members for consumption on the hotel, 
29restaurant or club premises. Such licensees, other than clubs, 
30shall be permitted to sell malt or brewed beverages for 

1consumption off the premises where sold in quantities of not 
2more than one hundred ninety-two fluid ounces in a single sale 
3to one person as provided for in section 407 unless the licensee 
4acquires a retail package reform permit issued by the board 
5under section 407(c). Such licenses shall be known as hotel 
6liquor licenses, restaurant liquor licenses and club liquor 
7licenses, respectively. No person who holds any public office 
8that involves the duty to enforce any of the penal laws of the 
9United States, this Commonwealth or of any political subdivision 
10of this Commonwealth may have any interest in a hotel or 
11restaurant liquor license. This prohibition applies to anyone 
12with arrest authority, including, but not limited to, United 
13States attorneys, State attorneys general, district attorneys, 
14sheriffs and police officers. This prohibition shall also apply 
15to magisterial district judges, judges or any other individuals 
16who can impose a criminal sentence. This prohibition does not 
17apply to members of the General Assembly, township supervisors, 
18city councilpersons, mayors without arrest authority and any 
19other public official who does not have the ability to arrest or 
20the ability to impose a criminal sentence. This section does not 
21apply if the proposed premises are located outside the 
22jurisdiction of the individual in question.

23(b) The board may issue to any club which caters to groups
24of non-members, either privately or for functions, a catering
25license, and the board shall, by its rules and regulations,
26define what constitutes catering under this subsection except
27that any club which is issued a catering license shall not be
28prohibited from catering on Sundays during the hours which the
29club may lawfully serve liquor, malt or brewed beverages.

30Section 10.1. The act is amended by adding sections to read:

1Section 401.1.  Authority to Issue Liquor Licenses to Grocery
2Stores.--(a) Subject to the provisions of this act and
3regulations promulgated under this act, the board shall have
4authority to issue a retail liquor license for any premises kept
5or operated by a grocery store and specified in the license
6entitling the grocery store to:

7(1) Purchase wine from a Pennsylvania <-Liquor Store <-liquor
8wholesale licensee, a wine and spirits store and any person
9licensed by the board as a producer of wine and subject to
10section 505.2.

11(2) Keep on the premises such wine and, subject to the
12provisions of this act and the regulations made hereunder, to
13sell the same to patrons for consumption off the licensed
14premises.

15(b) Licenses issued under this section shall be known as
16grocery store retail liquor licenses.

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

1to this prohibition may have an interest in a grocery store
2retail liquor license if the proposed premises are located
3outside the jurisdiction of the individual.

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

1alterations, improvements and changes to the licensed premises,
2or shall construct the new building in the manner specified by
3the board at the time of approval, and the licensee shall not
4transact any business under the license until the board has
5approved the completed physical alterations, improvements and
6changes to the licensed premises, or the completed construction
7of the new building as conforming to the specifications required
8by the board at the time of issuance or transfer of the license,
9and is satisfied that the establishment is a grocery store as
10defined by this act. The board may require that all such
11alterations or construction or conformity to definition be
12completed within six months from the time of issuance or
13transfer of the license. Failure to comply with these
14requirements shall be considered cause for revocation of the
15license. No such license shall be transferable between the time
16of issuance or transfer of the license and the approval of the
17completed alterations or construction by the board and full
18compliance by the licensee with the requirements of this act
19unless full compliance is impossible for reasons beyond the
20licensee's control, in which event, the license may be
21transferred by the board as provided in this act.

22(b)  If the applicant is a natural person, the applicant's
23application must show that the applicant is a citizen of the
24United States and has been a resident of this Commonwealth for
25at least two years immediately preceding the applicant's
26application.

27(c)  If the applicant is a corporation, the application must
28show that the corporation was created under the laws of this
29Commonwealth or holds a certificate of authority to transact
30business in this Commonwealth, that all officers, directors and

1stockholders are citizens of the United States and that the
2manager of the grocery store retail license is a citizen of the
3United States.

4(d)  Each application shall be signed and verified by oath or
5affirmation by the owner, if a natural person, or, in the case
6of an association, by a member or partner thereof, or, in the
7case of a corporation, by an executive officer thereof or any
8person specifically authorized by the corporation to sign the
9application, to which shall be attached written evidence of his
10authority.

11(e)  Every applicant for a new license or for the transfer of
12an existing license shall post, for a period of at least thirty
13days beginning with the day the application is filed with the
14board, in a conspicuous place on the outside of the premises or
15at the proposed new location for which the license is applied, a
16notice of such application. The notice shall be in such form, be
17of such size and contain such provisions as the board may
18require by its regulations. Proof of the posting of such notice
19shall be filed with the board. The posting requirement imposed
20by this subsection shall not apply to license applications
21submitted for public venues.

22(f)  If any false statement is intentionally made in any part
23of the application, the affiant shall be deemed guilty of a
24misdemeanor and, upon conviction, shall be subject to the
25penalties provided by this article.

26(g)  Upon receipt of an application for a new license or
27transfer of an existing license to a new location, the board
28shall immediately notify, in writing, the municipality in which
29the premises proposed to be licensed are located.

30Section 11. Section 404 of the act, amended January 6, 2006

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

2Section 404. Issuance, Transfer or Extension of Hotel,
3Restaurant and Club Liquor Licenses.--Upon receipt of the
4application and the proper fees, and upon being satisfied of the
5truth of the statements in the application that the applicant is
6the only person in any manner pecuniarily interested in the
7business so asked to be licensed and that no other person will
8be in any manner pecuniarily interested therein during the
9continuance of the license, except as hereinafter permitted, and
10that the applicant is a person of good repute, that the premises
11applied for meet all the requirements of this act and the
12regulations of the board, that the applicant seeks a license for
13a hotel, restaurant or club, as defined in this act, and that
14the issuance of such license is not prohibited by any of the
15provisions of this act, the board shall, in the case of a hotel
16or restaurant, grant and issue to the applicant a liquor
17license, and in the case of a club may, in its discretion, issue
18or refuse a license: Provided, however, That in the case of any
19new license or the transfer of any license to a new location or
20the extension of an existing license to cover an additional area
21the board may, in its discretion, grant or refuse such new
22license, transfer or extension if such place proposed to be
23licensed is within three hundred feet of any church, hospital,
24charitable institution, school, or public playground, or if such
25new license, transfer or extension is applied for a place which
26is within two hundred feet of any other premises which is
27licensed by the board: And provided further, That the board's
28authority to refuse to grant a license because of its proximity
29to a church, hospital, charitable institution, public playground
30or other licensed premises shall not be applicable to license

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

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

18Section 11.1. The act is amended by adding a section to
19read:

20Section 404.1.  Issuance or Transfer of Grocery Store Liquor
21Licenses.--Upon receipt of the application and the proper fees,
22and upon being satisfied of the truth of the statements in the
23application that the applicant is the only person in any manner
24pecuniarily interested in the business so asked to be licensed
25and that no other person will be in any manner pecuniarily
26interested therein during the continuance of the license, except
27as hereinafter permitted, and that the applicant is a person of
28good repute, that the premises applied for meet all the
29requirements of this act and the regulations of the board, that
30the applicant seeks a license for a grocery store, as defined in

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

1citation under section 471 and for the nonrenewal of the license
2under section 470. If the board enters into an agreement with an
3applicant concerning additional restrictions, those restrictions
4shall be binding on subsequent holders of the license until the
5license is transferred to a new location or until the board
6enters into a subsequent agreement removing those restrictions.
7If the application in question involves a location previously
8licensed by the board, then any restrictions imposed by the
9board on the previous license at that location shall be binding
10on the applicant unless the board enters into a new agreement
11rescinding those restrictions.

12Section 12. Section 405(c) of the act, amended April 29,
131994 (P.L.212, No.30), is amended to read:

14Section 405. License Fees.--* * *

15(c) All license fees authorized under this section shall be
16collected by the board for the use of the municipalities in
17which such fees were collected[.] if the municipalities receive 
18services from a municipal police department. Fees collected in 
19municipalities that do not receive service from a municipal 
20police department must be transferred to the enforcement bureau 
21for continued enforcement efforts.

22* * *

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. [In addition, the 
4holder of a hotel license or a restaurant license may allow 
5persons who have purchased but only partially consumed a bottle 
6of wine on the premises to remove the bottle from the premises 
7so long as the bottle was purchased in conjunction with a meal 
8which was consumed on the premises and so long as the bottle is 
9resealed.] Notwithstanding this paragraph, the holder of a hotel 
10license or a restaurant license may sell up to six bottles of 
11wine for consumption off the licensed premises so long as the 
12bottles remain sealed and the holder has obtained a wine-to-go 
13permit as authorized under section 493(35). In addition, the 
14holder of a hotel license or a restaurant license may allow a 
15person who has purchased but only partially consumed a bottle of 
16spirits on the premises to remove the bottle from the premises 
17so long as the bottle is resealed. For purposes of this 
18subsection, "wine" shall have the meaning given to it under 
19section 488(i). For purposes of this section and section 432, 
20"meal" shall mean food prepared on the premises, sufficient to 
21constitute breakfast, lunch or dinner; it shall not mean a 
22snack, such as pretzels, popcorn, chips or similar food.

23* * *

24(3) The holder of a restaurant license whose premises has an 
25interior connection to a grocery store may allow a purchase of 
26beer and wine for consumption off the premises to be paid for at 
27a point of sale other than a point of sale located on the 
28licensed premises.

29Section 13.1. The act is amended by adding a section to
30read:

1Section 406.2.  Sales by Grocery Store Retail Licensees and
2Restrictions.--(a) Every grocery store retail licensee may sell
3wine for consumption off the licensed premises from any location
4within the licensed premises. Educational information regarding
5the types of products sold by the grocery store retail licensee
6and regarding the responsible consumption of alcohol shall be
7displayed and readily available wherever wine is displayed.
8Grocery store retail licensees may display the alcohol products
9they offer for sale on shelving units and systems, and in or on
10refrigerated cases and equipment, within the discretion of the
11licensee, provided that such displays are not designed to
12attract minors and, provided further, that the manner and method
13of display allows access by all customers, including the
14physically dependent.

<-15(b) Grocery store retail licensees may sell wine in any
16quantity for consumption off the licensed premises.

<-17(b) Grocery store retail licensees may sell no more than
18twelve bottles of wine in a single sale for consumption off the
19licensed 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. <-At no time shall the purchase of wine 
28occur at a point of sale where the customer scans his own 
29purchases. All sales of wine shall occur at a point of sale 
30manned by a sales clerk at all times.

1(e) Grocery store retail licensees may store alcohol in a
2storage area or storage areas not accessible to the public
3provided such storage areas are:

4(1) locked at all times when not being accessed by the
5licensees' employes; and

6(2) identified by dimensions and location on forms submitted
7in advance to the board.

8(f) Grocery store retail licensees may sell wine from seven
9o'clock antemeridian until eleven o'clock postmeridian every day
10except Sunday.

11(g) Grocery store retail licensees may sell wine from nine
12o'clock antemeridian until eleven o'clock postmeridian on
13Sundays upon submission to the board of a Sunday sales permit
14application and fee of one thousand five hundred dollars
15($1,500) per year.

16(h) Grocery store retail licensees shall be permitted to
17hold:

18(1) Tastings at any location in the grocery store, provided
19the tastings are in compliance with the provisions and
20regulations regarding tastings held on restaurant licensed
21premises.

22(2) Educational classes, including cooking classes, "how to"
23classes, seminars and the like, regarding the proper or
24recommended use, consumption, identification, pairing,
25appellation, aging, storage, characteristics, service,
26presentation and the like, of the alcohol products that they
27offer for sale, during which classes the incidental consumption
28of alcohol by registered participants of lawful age shall be
29permitted; such classes may be free of charge to participants or
30may be at fee.

1(i) Grocery store retail licensees shall be permitted to
2hold restaurant licenses issued for areas within the same
3building for which the grocery store retail license has been
4issued or for a different building. Grocery store retail
5licenses and restaurant licenses issued for areas within the
6same grocery stores may be issued for areas that are adjacent,
7abutting and contiguous and the board shall approve interior
8connections between such areas. In the event that a grocery
9store retail license and a restaurant license are issued for the
10same grocery store, wine may only be sold for off-premises
11consumption in the area licensed for grocery store retail sales.

12(j) Grocery store retail licensees may not sell wine at a
13price less than its underlying cost.

14(k)  Grocery store retail licensees shall buy wine sold
15pursuant to their grocery store retail license from the board, a
16wine and spirits wholesale licensee or a winery licensed by the
17Commonwealth.

18(l) All products purchased by grocery store retail licensees
19and all products purchased by restaurant and eating place
20licensees owned by the same individual or company must be
21separately purchased from the board or a wine and spirits
22wholesale licensee as required by this act and may not be
23purchased from another retail licensee. Separate records must be
24maintained for all purchases and sales by all grocery store
25retail licensees and restaurant or eating place licensees,
26whether or not located within the same building or owned by the
27same individual or company.

28(m) The following shall apply:

29(1) The retail license fee payable one time upon application
30to the board for issuance of the license, shall be as follows:

1(i) For grocery stores located in counties of the first
2class or counties of the second class, one hundred sixty-five
3thousand dollars ($165,000).

4(ii) For grocery stores located in counties of the second
5class A or counties of the third class, one hundred eighty-seven
6thousand five hundred dollars ($187,500).

7(iii) For grocery stores located in counties of the fourth
8class or fifth class, one hundred forty-two thousand five
9hundred dollars ($142,500).

10(iv) For grocery stores located in counties of the sixth
11class or seventh class, one hundred twenty thousand dollars
12($120,000).

13(v) For grocery stores located in counties of the eighth
14class, ninety-seven thousand five hundred dollars ($97,500).

15(2) Grocery store retail licenses shall be renewed every two
16years. The renewal fee submitted each year shall be:

17(i) For grocery stores located in counties of the fifth
18class, counties of the sixth class, counties of the seventh
19class or counties of the eighth class, two thousand dollars
20($2,000).

21(ii) For grocery stores located in counties of the first
22class, counties of the second class, counties of the second
23class A, counties of the third class or counties of the fourth
24class, four thousand dollars ($4,000).

25(3) The board may accept applications to transfer grocery
26store retail licenses to new locations, for the same owner, upon
27submission of transfer applications and fees submitted to the
28board in the following amounts:

29(i) For transfers to counties of the fifth class, counties
30of the sixth class, counties of the seventh class or counties of

1the eighth class, five thousand dollars ($5,000).

2(ii) For transfers to counties of the first class, counties 
3of the second class, counties of the second class A, counties of 
4the third class or counties of the fourth class, ten thousand 
5dollars ($10,000).

<-6(n) (1) Grocery store licensees selling wine for off-
7premises consumption shall be required to obtain a sales tax
8license from the Department of Revenue.

9(2) A grocery store licensee selling wine for off-premises 
10consumption shall be considered a Pennsylvania Liquor Store for 
11purposes of collecting and remitting taxes under Article II of 
12the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform 
13Code of 1971." A grocery store licensee selling wine for off-
14premises consumption may not be required to pay the sales tax 
15when making wholesale purchases but shall collect the tax at 
16retail.

17Section 14. Section 407 of the act, amended November 29, 
182006 (P.L.1421, No.155) and June 28, 2011 (P.L.55, No.11), is 
19amended to read:

20Section 407. Sale of Malt or Brewed Beverages by Liquor
21Licensees.--(a) Every liquor license issued to a hotel,
22restaurant, club, or a railroad, pullman or steamship company
23under this subdivision (A) for the sale of liquor shall
24authorize the licensee to sell malt or brewed beverages at the
25same places but subject to the same restrictions and penalties
26as apply to sales of liquor, except that licensees other than
27clubs may sell malt or brewed beverages for consumption off the
28premises where sold in quantities of not more than one hundred
29ninety-two fluid ounces in a single sale to one person unless 
30the licensee acquires a retail package permit issued by the 

1board under section 407(c). The sales may be made in either open 
2or closed containers, Provided, however, That a municipality may 
3adopt an ordinance restricting open containers in public places.
4No licensee under this subdivision (A) shall at the same time be
5the holder of any other class of license, except a retail
6dispenser's license authorizing the sale of malt or brewed
7beverages only.

8(b) (1) Notwithstanding any other provision of law or any
9existing permit authorizing the sale of malt or brewed beverages
10for consumption off the premises, a restaurant licensee located
11in a city of the first class who is otherwise permitted to sell
12malt or brewed beverages for consumption off the premises may
13not do so after October 31, 2007, unless it acquires a permit
14from the board.

15(2) The application for a permit to sell malt or brewed 
16beverages for consumption off the premises shall be on forms 
17designated by the board and contain such information as the 
18board may require. The application and renewal fee shall be as 
19prescribed in section 614-A(27) of the act of April 9, 1929 
20(P.L.177, No.175), known as "The Administrative Code of 1929." 
21However, no applicant who currently has a permit shall be 
22required to pay any additional fees under section 614-A(27) of 
23"The Administrative Code of 1929" in order to continue selling 
24malt or brewed beverages for consumption off the premises at its 
25currently licensed location for the licensing term beginning 
26November 1, 2007, and ending October 31, 2008.

27(3) The application for a permit to sell malt or brewed
28beverages for consumption off the premises must be accompanied
29by a copy of the approval of such request by the hearing board
30authorized by this section.

1(4) A city of the first class shall create a hearing board
2within its Department of Licenses and Inspections to hear
3requests from licensees who are seeking a permit from the
4hearing board authorizing the licensee to sell malt or brewed
5beverages for consumption off the premises. Each hearing board
6shall consist of three persons appointed by the mayor of the
7city of the first class, who are subject to approval by the city
8council of the city of the first class. Each person so appointed
9shall serve at the pleasure of the appointing authority. The
10hearing board may, in its discretion, hold hearings to adduce
11testimony regarding a request. The hearing board must render a
12decision within ninety days of receipt of a request for approval
13of a permit to sell malt or brewed beverages for consumption off
14the premises. The hearing board must approve the request unless
15it finds that doing so would adversely affect the welfare,
16health, peace and morals of the city or its residents. A
17decision by the hearing board to deny a request may be appealed
18to the court of common pleas in the county in which the city is
19located. The failure to render a decision by the hearing board
20within the required time period shall be deemed approval of the
21permit.

22(5) Upon being satisfied that the applicant has fulfilled
23all the requirements of this act and the board's regulations,
24the board shall approve the application. Such permits shall
25expire upon the transfer of the license to a new entity or to a
26new location, or both; otherwise, such permits shall expire at
27the same time as the expiration of the underlying license.

28(c) (1) The board may issue a retail package reform permit
29to a restaurant, hotel or retail dispenser licensee that applies
30and pays the requisite fee for use at the same place that the

1restaurant, hotel or retail dispenser maintains for the sale of
2malt or brewed beverages. The permit must allow the holder to
3sell in a single transaction not more than twenty-four original
4containers totaling not more than three hundred and eighty four
5fluid ounces of malt and brewed beverages so long as the
6original containers are in a package prepared for sale of
7distribution by the manufacturer of not more than twelve
8original containers.

9(2) For the permit issued under paragraph (1), the board
10shall require an annual fee of five hundred dollars ($500).

11Section 15. Section 408.12(g) and (h) of the act, added July
121, 1994 (P.L.402, No.61), are amended to read:

13Section 408.12. Wine Auction Permits.--* * *

14(g) Any wine sold under this section shall be purchased from
15a Pennsylvania Liquor Store, a wine and spirits retail licensee,
16a Pennsylvania limited winery or any seller authorized to sell
17wine by the bottle or case in this Commonwealth, including a
18grocery store licensee, restaurant liquor licensee or hotel 
19liquor licensee, or shall be donated by a person who is neither
20a licensee nor a permittee who has legally acquired the wine and
21legally possesses it in this Commonwealth.

22(h) If any wine sold under this section is purchased from a
23seller other than a Pennsylvania Liquor Store, wine and spirits 
24retail licensee, grocery store licensee, restaurant liquor 
25licensee, hotel liquor licensee or [a] Pennsylvania limited
26winery, the permittee shall provide thirty days' notice to the
27board of its intent to purchase such wine. The notice shall
28include a description of the wine to be purchased, the quantity
29to be purchased, the name of the seller and any other
30information which the board may require. The permittee shall

1comply with all board regulations regarding taxes and fees.

2* * *

3Section 16. Section 410(e) of the act is amended to read:

4Section 410. Liquor Importers' Licenses; Fees; Privileges;
5Restrictions.--* * *

6(e) Importers' licenses shall permit the holders thereof to
7bring or import liquor from other states, foreign countries, or
8insular possessions of the United States, and purchase liquor
9from manufacturers located within this Commonwealth, to be sold
10outside of this Commonwealth or to Pennsylvania Liquor Stores or 
11wine and spirits wholesale licensees within this Commonwealth,
12or when in original containers of ten gallons or greater
13capacity, to licensed manufacturers within this Commonwealth.

14All importations of liquor into Pennsylvania by the licensed
15importer shall be consigned to the board or the principal place
16of business or authorized place of storage maintained by the
17licensee or a wine and spirits wholesale licensee.

18* * *

19Section 17. Section 411 of the act is amended by adding a 
20subsection to read:

21Section 411. Interlocking Business Prohibited.--* * *

22(f) (1) Notwithstanding any other provision of law, a
23manufacturer or licensee and its officers, directors,
24shareholders, servants, agents or employes may contribute, and a
25manufacturer or licensee and its officers, directors,
26shareholders, servants, agents or employes may accept moneys or
27other things of value solely for the administration of a
28responsible alcohol management training program for alcohol
29service personnel as provided for under section 471.1 of this
30act. The moneys or other things of value may be provided by or

1to a manufacturer or licensee and its officers, directors,
2shareholders, servants, agents or employes directly or by or to
3a trade organization consisting, in whole or in part, of a group
4of licensees.

5(2) The manufacturer, licensee and trade organization
6associated with the person providing the moneys or other things
7of value must keep a record of the value of the moneys or other
8things of value provided, the date provided and the entity to
9whom it was provided, as part of the records required under
10section 493(12) of this act.

11(3) The manufacturer, licensee and trade organization
12associated with the person receiving moneys or other things of
13value must keep a record of the value of the moneys or other
14things of value used, as part of the records required under
15section 493(12) of this act.

16Section 18. Section 431(b) of the act, amended December 8,
172004 (P.L.1810, No.239), is amended to read:

18Section 431. Malt and Brewed Beverages Manufacturers',
19Distributors' and Importing Distributors' Licenses.--* * *

20(b) The board shall issue to any reputable person who
21applies therefor, and pays the license fee hereinafter
22prescribed, a distributor's or importing distributor's license
23for the place which such person desires to maintain for the sale
24of malt or brewed beverages, not for consumption on the premises
25where sold, and in quantities of not less than a case or
26original containers containing one hundred twenty-eight ounces
27or more which may be sold separately as prepared for the market
28by the manufacturer at the place of manufacture. The board shall
29have the discretion to refuse a license to any person or to any
30corporation, partnership or association if such person, or any

1officer or director of such corporation, or any member or
2partner of such partnership or association shall have been
3convicted or found guilty of a felony within a period of five
4years immediately preceding the date of application for the said
5license: And provided further, That, in the case of any new
6license or the transfer of any license to a new location, the
7board may, in its discretion, grant or refuse such new license
8or transfer if such place proposed to be licensed is within
9three hundred feet of any church, hospital, charitable
10institution, school or public playground, or if such new license
11or transfer is applied for a place which is within two hundred
12feet of any other premises which is licensed by the board: And
13provided further, That the board shall refuse any application
14for a new license or the transfer of any license to a new
15location if, in the board's opinion, such new license or
16transfer would be detrimental to the welfare, health, peace and
17morals of the inhabitants of the neighborhood within a radius of
18five hundred feet of the place proposed to be licensed. [The
19board shall refuse any application for a new license or the
20transfer of any license to a location where the sale of liquid
21fuels or oil is conducted.] The board may enter into an
22agreement with the applicant concerning additional restrictions
23on the license in question. If the board and the applicant enter
24into such an agreement, such agreement shall be binding on the
25applicant. Failure by the applicant to adhere to the agreement
26will be sufficient cause to form the basis for a citation under
27section 471 and for the nonrenewal of the license under section
28470. If the board enters into an agreement with an applicant
29concerning additional restrictions, those restrictions shall be
30binding on subsequent holders of the license until the license

1is transferred to a new location or until the board enters into
2a subsequent agreement removing those restrictions. If the
3application in question involves a location previously licensed
4by the board, then any restrictions imposed by the board on the
5previous license at that location shall be binding on the
6applicant unless the board enters into a new agreement
7rescinding those restrictions. The board shall require notice to
8be posted on the property or premises upon which the licensee or
9proposed licensee will engage in sales of malt or brewed
10beverages. This notice shall be similar to the notice required
11of hotel, restaurant and club liquor licensees.

12Except as hereinafter provided, such license shall authorize
13the holder thereof to sell or deliver malt or brewed beverages
14in quantities above specified anywhere within the Commonwealth
15of Pennsylvania, which, in the case of distributors, have been
16purchased only from persons licensed under this act as
17manufacturers or importing distributors, and in the case of
18importing distributors, have been purchased from manufacturers
19or persons outside this Commonwealth engaged in the legal sale
20of malt or brewed beverages or from manufacturers or importing
21distributors licensed under this article. If the holder of a 
22distributor license applies for and receives a wine and spirits 
23retail license issued pursuant to Article III-A, that 
24distributor shall be authorized to sell wine and/or spirits on 
25the same premises where malt or brewed beverages are sold, and 
26if a distributor licensee applies for and receives a distributor 
27package reform permit issued pursuant to section 431.2, that 
28distributor shall be authorized to sell malt or brewed beverages 
29in quantities enumerated in section 431.2. In the case of an
30importing distributor, the holder of such a license shall be

1authorized to store and repackage malt or brewed beverages owned
2by a manufacturer at a segregated portion of a warehouse or
3other storage facility authorized by section 441(d) and operated
4by the importing distributor within its appointed territory and
5deliver such beverages to another importing distributor who has
6been granted distribution rights by the manufacturer as provided
7herein. The importing distributor shall be permitted to receive
8a fee from the manufacturer for any related storage, repackaging
9or delivery services. In the case of a bailee for hire hired by
10a manufacturer, the holder of such a permit shall be authorized:
11to receive, store and repackage malt or brewed beverages
12produced by that manufacturer for sale by that manufacturer to
13importing distributors to whom that manufacturer has given
14distribution rights pursuant to this subsection or to purchasers
15outside this Commonwealth for delivery outside this
16Commonwealth; or to ship to that manufacturer's storage
17facilities outside this Commonwealth. The bailee for hire shall
18be permitted to receive a fee from the manufacturer for any
19related storage, repackaging or delivery services. The bailee
20for hire shall, as required in Article V of this act, keep
21complete and accurate records of all transactions, inventory,
22receipts and shipments and make all records and the licensed
23areas available for inspection by the board and for the
24Pennsylvania State Police, Bureau of Liquor Control Enforcement,
25during normal business hours.

26Each out of State manufacturer of malt or brewed beverages
27whose products are sold and delivered in this Commonwealth shall
28give distributing rights for such products in designated
29geographical areas to specific importing distributors, and such
30importing distributor shall not sell or deliver malt or brewed

1beverages manufactured by the out of State manufacturer to any
2person issued a license under the provisions of this act whose
3licensed premises are not located within the geographical area
4for which he has been given distributing rights by such
5manufacturer. Should a licensee accept the delivery of such malt
6or brewed beverages in violation of this section, said licensee
7shall be subject to a suspension of his license for at least
8thirty days: Provided, That the importing distributor holding
9such distributing rights for such product shall not sell or
10deliver the same to another importing distributor without first
11having entered into a written agreement with the said secondary
12importing distributor setting forth the terms and conditions
13under which such products are to be resold within the territory
14granted to the primary importing distributor by the
15manufacturer.

16When a Pennsylvania manufacturer of malt or brewed beverages
17licensed under this article names or constitutes a distributor
18or importing distributor as the primary or original supplier of
19his product, he shall also designate the specific geographical
20area for which the said distributor or importing distributor is
21given distributing rights, and such distributor or importing
22distributor shall not sell or deliver the products of such
23manufacturer to any person issued a license under the provisions
24of this act whose licensed premises are not located within the
25geographical area for which distributing rights have been given
26to the distributor and importing distributor by the said
27manufacturer: Provided, That the importing distributor holding
28such distributing rights for such product shall not sell or
29deliver the same to another importing distributor without first
30having entered into a written agreement with the said secondary

1importing distributor setting forth the terms and conditions
2under which such products are to be resold within the territory
3granted to the primary importing distributor by the
4manufacturer. Nothing herein contained shall be construed to
5prevent any manufacturer from authorizing the importing
6distributor holding the distributing rights for a designated
7geographical area from selling the products of such manufacturer
8to another importing distributor also holding distributing
9rights from the same manufacturer for another geographical area,
10providing such authority be contained in writing and a copy
11thereof be given to each of the importing distributors so
12affected.

13* * *

14Section 19. The act is amended by adding a section to read:

15Section 431.2. Distributor Package Reform Permit.--(a) The
16board may issue a distributor package reform permit to a
17currently licensed distributor who makes application and pays
18the requisite permit fee for use at the same place the
19distributor maintains for the sale of malt and brewed beverages.

20(b) For a permit under subsection (a), the board shall
21require an annual fee of one thousand dollars ($1,000).

22(c) Notwithstanding any other provision of this act, the
23permit shall allow the holder to:

24(1) Break the bulk of a case and sell a unit of that case in
25quantities not less than sixty ounces so long as the holder only
26sells a package prepared for sale by the manufacturer of no more
27than twelve original containers.

28(2) Sell a growler <-filled with malt or brewed beverages.

29(d) Before the holder of an enhanced distributor license
30breaks the bulk of a case of malt or brewed beverages for the

1purpose of selling units of the case, the licensee shall inspect
2such case for damage and appropriate production date. When the
3licensee breaks the bulk of a case of malt or brewed beverages
4for the purpose of selling units of the case, the licensee shall
5bear all the risk of loss and shall be responsible for the
6destruction of any malt or brewed beverages which violate the
7manufacturer's specifications relating to sales by a certain
8date or within a number of days of the production date.

9(e) As used in this section:

10"Unit" shall mean an undamaged bottle, can from a case or a
11growler.

12Section 20. Section 432(d) and (f) of the act, amended 
13January 6, 2006 (P.L.1, No.1) and December 22, 2011 (P.L.530, 
14No.113), are amended and the section is amended by adding a 
15subsection to read:

16Section 432. Malt and Brewed Beverages Retail Licenses.--* *
17*

18(d) The board shall, in its discretion, grant or refuse any
19new license, the transfer of any license to a new location or
20the extension of an existing license to cover an additional area
21if such place proposed to be licensed is within three hundred
22feet of any church, hospital, charitable institution, school, or
23public playground, or if such new license, transfer or extension
24is applied for a place which is within two hundred feet of any
25other premises which is licensed by the board. The board shall
26refuse any application for a new license, the transfer of any
27license to a new location or the extension of an existing
28license to cover an additional area if, in the board's opinion,
29such new license, transfer or extension would be detrimental to
30the welfare, health, peace and morals of the inhabitants of the

1neighborhood within a radius of five hundred feet of the place
2to be licensed. The board may enter into an agreement with the
3applicant concerning additional restrictions on the license in
4question. If the board and the applicant enter into such an
5agreement, such agreement shall be binding on the applicant.
6Failure by the applicant to adhere to the agreement will be
7sufficient cause to form the basis for a citation under section
8471 and for the nonrenewal of the license under section 470. If
9the board enters into an agreement with an applicant concerning
10additional restrictions, those restrictions shall be binding on
11subsequent holders of the license until the license is
12transferred to a new location or until the board enters into a
13subsequent agreement removing those restrictions. If the
14application in question involves a location previously licensed
15by the board, then any restrictions imposed by the board on the
16previous license at that location shall be binding on the
17applicant unless the board enters into a new agreement
18rescinding those restrictions[. The board shall refuse any
19application for a new license, the transfer of any license to a
20location where the sale of liquid fuels or oil is conducted or
21the extension of an existing license to cover an additional
22area]: And provided further, That the board shall have the
23discretion to refuse a license to any person or to any
24corporation, partnership or association if such person, or any
25officer or director of such corporation, or any member or
26partner of such partnership or association shall have been
27convicted or found guilty of a felony within a period of five
28years immediately preceding the date of application for the said
29license. The board may, in its discretion, refuse an application
30for an economic development license under section 461(b.1) or an

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

13* * *

14(f) Hotel, eating places, or municipal golf course retail 
15dispenser licensees may sell malt or brewed beverages between 
16the hours of [eleven] nine o'clock antemeridian on Sunday and 
17two o'clock antemeridian on Monday upon purchase of a special 
18permit from the board at an annual fee as prescribed in section 
19614-A of the act of April 9, 1929 (P.L.177, No.175), known as 
20"The Administrative Code of 1929," which shall be in addition to 
21any other license fees. Notwithstanding this provision, a 
22licensee holding such a special permit may begin selling malt or 
23brewed beverages on Sunday between the hours of nine o'clock 
24antemeridian and eleven o'clock antemeridian provided that the 
25licensee offers a meal, as that term is defined in section 406, 
26beginning at nine o'clock antemeridian.

27(g) The board may issue to any retail dispenser licensee a
28restaurant license in exchange for the retail dispenser license
29in any municipality which has approved the granting of liquor
30licenses.

1(1) An applicant under this section shall surrender his
2retail dispenser license for cancellation prior to the issuance
3of the new restaurant license.

4(2) The applicant for such an exchange of license shall file
5an application for a restaurant liquor license and shall post
6notice of such application in the manner provided in section
7403. In determining whether the exchange shall be granted the
8board shall have the same discretion as provided in section 404
9in the case of any new license.

10(3) The provisions of section 461 pertaining to a quota do
11not pertain to this section for exchange purposes.

12(4) The board shall charge a one-time upgrade fee of not
13more than thirty thousand dollars ($30,000).

14Section 21. Sections 436(e) and 437(e) of the act are
15amended to read:

16Section 436. Application for Distributors', Importing
17Distributors' and Retail Dispensers' Licenses.--* * *

18(e) That the applicant is not, or in case of a partnership
19or association, that the members or partners are not, and in the
20case of a corporation, that the officers and directors are not,
21in any manner pecuniarily interested, either directly or
22indirectly, in the profits of any other class of business
23regulated under this article, except as hereinafter permitted.
24The requirements of this section shall not prohibit a 
25distributor from holding a wine and spirits retail license, or 
26an importing distributor from holding a wine and spirits 
27wholesale license, under the conditions provided under Article 
28III-A.

29* * *

30Section 437. Prohibitions Against the Grant of Licenses.--*

1* *

2(e) No distributor's or importing distributor's license
3shall be issued for any premises in any part of which there is
4operated any retail license for the sale of liquor or malt or
5brewed beverages. The requirements of this section shall not 
6prohibit a distributor from holding a wine and spirits retail 
7license or an importing distributor from holding a wine and 
8spirits wholesale license, under the conditions provided under 
9Article III-A.

10* * *

11Section 22. Section 438 of the act, amended June 25, 2010
12(P.L.217, No.35), is amended to read:

13Section 438. Number and Kinds of Licenses Allowed Same
14Licensee.--(a) Any retail dispenser may be granted licenses to
15maintain, operate or conduct any number of places for the sale
16of malt or brewed beverages, but a separate license must be
17secured for each place where malt or brewed beverages are sold.

18(b) [No person shall possess or be issued more than one
19distributor's or importing distributor's license.] A person may 
20not possess or be issued more than five distributor licenses or 
21more than one distributor license in a county.

22(c) No person shall possess more than one class of license, 
23except that a holder of a retail dispenser's license may also be 
24a holder of a retail liquor license or a wine and spirits retail 
25license consistent with the restrictions contained in Article 
26III-A: Provided, however, That nothing contained in this section 
27shall be construed to prohibit a member of the governing board 
28of a public authority created under subdivision (n) of Article 
29XXIII of the act of August 9, 1955 (P.L.323, No.130), known as 
30"The County Code," from having an interest in a distributor or 

1importing distributor license notwithstanding the fact that the 
2public authority has an interest in one or more retail licenses 
3or acts as a landlord for one or more retail licenses: And, 
4provided further, That, notwithstanding any other provision of 
5this section, an entity may acquire both a manufacturer's 
6license or a limited winery license and a hotel, restaurant or 
7retail dispenser license for use at the same location and more 
8than one location may be so licensed. The licenses and a 
9person's interest in the licenses or in the entity holding the 
10licenses shall not be subject to this section.

11Section 23. Section 441 of the act, amended or added May 31,
121996 (P.L.312, No.49), December 20, 1996 (P.L.1513, No.196),
13June 18, 1998 (P.L.664, No.86), December 9, 2002 (P.L.1653,
14No.212), June 28, 2011 (P.L.55, No.11) and December 22, 2011
15(P.L.530, No.113), is amended to read:

16Section 441. Distributors' and Importing Distributors'
17Restrictions on Sales, Storage, Etc.--(a) No distributor or
18importing distributor shall purchase, receive or resell any malt
19or brewed beverages except:

20(1) in the original containers as prepared for the market by
21the manufacturer at the place of manufacture;

22(2) in the case of identical containers repackaged in the
23manner described by subsection (f); or

24(3) as provided in section 431(b).

25(b) No distributor or importing distributor, except for a 
26distributor that also holds a distributor package reform permit 
27under section 431.2, shall sell any malt or brewed beverages in
28quantities of less than a case or original containers containing
29one hundred twenty-eight ounces or more which may be sold
30separately: Provided, That no malt or brewed beverages sold or

1delivered shall be consumed upon the premises of the distributor
2or importing distributor, or in any place provided for such
3purpose by such distributor or importing distributor.
4Notwithstanding any other provision of this section or act, malt
5or brewed beverages which are part of a tasting conducted
6pursuant to the board's regulations may be consumed on licensed
7premises.

8(c) No distributor or importing distributor shall maintain
9or operate any place where sales are made other than that for
10which the license is granted.

11(d) (1) No distributor shall maintain any place for the
12storage of malt or brewed beverages except in the same
13municipality in which the licensed premises is located and
14unless the same has been approved by the board. In the event
15there is no place of cold storage in the same municipality, the
16board may approve a place of cold storage in the nearest
17municipality.

18(2) No importing distributor shall maintain any place for
19the storage of malt or brewed beverages except in the franchise
20territory in which the licensed premises is located and unless
21the same has been approved by the board. The board shall issue
22no more than one storage facility license to an importing
23distributor. The storage location shall be designated solely as
24a storage facility, from which only sales to other licensees are
25permitted. Retail sales may be made at the licensed location
26pursuant to subsection (c). If the importing distributor
27maintains a storage location for cold storage in the same
28municipality in which the importing distributor is licensed or a
29nearby municipality, the importing distributor may continue to
30maintain that cold storage location in addition to another

1storage location within their franchise territory.

2(e) No distributor or importing distributor shall purchase,
3sell, resell, receive or deliver any malt or brewed beverages,
4except in strict compliance with the provisions of subsection
5(b) of section 431 of this act.

6(f)(1) To salvage one or more salable cases from one or more
7damaged cases, cartons or packages of malt or brewed beverages,
8a distributor or importing distributor may repackage consequent
9to inadvertent damage and sell a case, carton or package of
10identical units of malt or brewed beverages.

11(2) Repackaging is permissible only to the extent made
12necessary by inadvertent damage. Repackaging not consequent to
13damage is prohibited.

14(3) The term "identical units" as used in this subsection
15means undamaged bottles or cans of identical brand, package and
16volume.

17(g) All malt or brewed beverages purchased by an importing
18distributor from a Pennsylvania manufacturer of malt or brewed
19beverages or from any person located outside this Commonwealth
20for resale shall be invoiced to the importing distributor, shall
21come physically into the possession of such importing
22distributor and shall be unloaded into and distributed from the
23licensed premises of such importing distributor. The board may
24act to further define and control the storage and distribution
25of malt or brewed beverages in conformity with this section and
26this act.

27(h) As used in this section, the term "franchise territory"
28shall mean the geographically contiguous area in which an
29importing distributor has been given rights for the sale or
30resale of malt or brewed beverages.

1(i) Notwithstanding any other provision to the contrary,
2when making a sale of malt or brewed beverages to a private
3individual, no distributor or importing distributor may be
4required to collect the name, address or any other identifying
5information of the private individual for the purpose of keeping
6a record of the quantity of cases or volume of malt or brewed
7beverages purchased.

8(j) No distributor shall engage in the sale of wine without
9first obtaining a wine and spirits retail license under Article
10III-A. Sales of wine may only be made on premises licensed for
11the sale of malt or brewed beverages.

12Section 24. Section 442 of the act, amended or added
13December 9, 2002 (P.L.1653, No.212), December 16, 2002
14(P.L.1806, No.221), May 8, 2003 (P.L.1, No.1), July 17, 2003
15(P.L.63, No.15), November 29, 2006 (P.L.1421, No.155), June 28,
162011 (P.L.55, No.11), December 22, 2011 (P.L.530, No.113) and
17July 5, 2012 (P.L.1007, No.116), is amended to read:

18Section 442. Retail Dispensers' Restrictions on Purchases
19and Sales.--(a) (1) No retail dispenser shall purchase or
20receive any malt or brewed beverages except in original
21containers as prepared for the market by the manufacturer at the
22place of manufacture. The retail dispenser may thereafter break
23the bulk upon the licensed premises and sell or dispense the
24same for consumption on or off the premises so licensed. No
25retail dispenser may sell malt or brewed beverages for
26consumption off the premises in quantities in excess of one
27hundred ninety-two fluid ounces[.] unless the licensee acquires 
28a retail package reform permit issued by the board under section 
29407(c). Sales may be made in open or closed containers, 
30Provided, however, That a municipality may adopt an ordinance 

1restricting open containers in public places. No club licensee
2may sell any malt or brewed beverages for consumption off the
3premises where sold or to persons not members of the club.

4(2) Notwithstanding any other provision of law or any
5existing permit authorizing the sale of malt or brewed beverages
6for consumption off the premises, a retail dispenser licensee
7located in a city of the first class who is otherwise permitted
8to sell malt or brewed beverages for consumption off the
9premises may not do so after October 31, 2007, unless it
10acquires a permit from the board.

11(3) The application for a permit to sell malt or brewed
12beverages for consumption off the premises shall be on forms
13designated by the board and contain such information as the
14board may require. The application and renewal fee shall be as
15prescribed in section 614-A(28) of the act of April 9, 1929 
16(P.L.177, No.175), known as "The Administrative Code of 1929."
17However, no applicant who currently has a permit shall be
18required to pay any additional fees under section 614-A(28) of
19"The Administrative Code of 1929" in order to continue selling
20malt or brewed beverages for consumption off the premises at its
21currently licensed location for the licensing term beginning
22November 1, 2007, and ending October 31, 2008.

23(4) The application for a permit to sell malt or brewed
24beverages for consumption off the premises must be accompanied
25by a copy of the approval of such request by the hearing board
26authorized by this section.

27(5) A city of the first class shall create a hearing board
28within its Department of Licenses and Inspections to hear
29requests from licensees who are seeking a permit from the
30hearing board authorizing the licensee to sell malt or brewed

1beverages for consumption off the premises. Each hearing board
2shall consist of three persons appointed by the mayor of the
3city of the first class, who are subject to approval by the city
4council of the city of the first class. Each person so appointed
5shall serve at the pleasure of the appointing authority. The
6hearing board may, in its discretion, hold hearings to adduce
7testimony regarding a request. The hearing board must render a
8decision within ninety days of receipt of a request for approval
9of a permit to sell malt or brewed beverages for consumption off
10the premises. The hearing board must approve the request unless
11it finds that doing so would adversely affect the welfare,
12health, peace and morals of the city or its residents. A
13decision by the hearing board to deny a request may be appealed
14to the court of common pleas in the county in which the city is
15located. The failure to render a decision by the hearing board
16within the required time period shall be deemed approval of the
17permit.

18(6) Upon being satisfied that the applicant has fulfilled
19all the requirements of this act and the board's regulations,
20the board shall approve the application. Such permits shall
21expire upon the transfer of the license to a new entity or to a
22new location, or both; otherwise, such permits shall expire at
23the same time as the expiration of the underlying license.

24(b) No retail dispenser shall sell any malt or brewed
25beverages for consumption on the licensed premises except in a
26room or rooms or place on the licensed premises at all times
27accessible to the use and accommodation of the general public,
28but this section shall not be interpreted to prohibit a retail
29dispenser from selling malt or brewed beverages in a hotel or
30club house in any room of such hotel or club house occupied by a

1bona fide registered guest or member entitled to purchase the
2same or to prohibit a retail dispenser from selling malt or
3brewed beverages in a bowling alley where the licensed premises
4and bowling alley are immediately adjacent and under the same
5roof.

6(c) For the purpose of this section any person who is an
7active member of another club which is chartered by the same
8state or national organization shall have the same rights and
9privileges as members of the particular club.

10(d) For the purposes of this section, any person who is an
11active member of any volunteer firefighting company, association
12or group of this Commonwealth, whether incorporated or
13unincorporated, shall upon the approval of any club composed of
14volunteer firemen licensed under this act, have the same social
15rights and privileges as members of such licensed club.

16(e) (1) The holder of a retail dispenser license located in
17a hotel may allow persons to transport malt or brewed beverages
18from the licensed portion of the premises to the unlicensed
19portion of the premises so long as the malt or brewed beverages
20remain on the hotel property.

21(2) In addition, the holder of a retail dispenser license
22located on a golf course may allow its patrons to order malt or
23brewed beverages on licensed premises for subsequent delivery by
24the licensee on nonlicensed portions of the premises, including
25the golf course.

26(3) In addition, a holder of a restaurant or club license
27located on a golf course may sell, furnish or give liquor or
28malt or brewed beverages on the unlicensed portion of the golf
29course so long as the liquor or malt or brewed beverages remain
30on the restaurant, club or golf course.

1(4) The holder of a restaurant license located immediately
2adjacent to and under the same roof of a bowling center may
3allow persons to transport liquor or malt or brewed beverages
4from the licensed portion of the premises to the unlicensed
5portion of the premises so long as the liquor or malt or brewed
6beverages remain within the bowling center.

7(f) The holder of an eating place retail dispenser license 
8may obtain an off-premises catering permit under section 493(33) 
9to hold a catered function off of the licensed premises and on 
10otherwise unlicensed premises where the licensee may sell malt 
11or brewed beverages by the glass, open bottle or any other 
12container, together with food, for consumption on those premises 
13solely used for catering premises. Functions conducted under the 
14authority of the permit shall be subject to the following:

15(1) malt or brewed beverages may only be provided during the
16days and hours that the license holder may otherwise sell malt
17or brewed beverages;

18(2) each catered function shall last no longer than one day 
19and not more than fifty catered functions may be held each 
20calendar year by each license holder for use with a particular 
21license;

22(3) a catered function shall not be held at a location that
23is already subject to the applicant's or another licensee's
24license;

25(4) a permit shall not be issued to an applicant whose
26license is in safekeeping;

27(5) a permit shall not be issued to a location that is
28subject to a pending objection by the director of the Bureau of
29Licensing or the board under section 470(a.1);

30(6) a permit shall not be issued to a location that is

1subject to a pending license suspension under section 471 or the
2one-year prohibition on the issuance or transfer of a license
3under section 471(b);

4(7) no malt or brewed beverages may be taken from the
5permitted location by a patron, but the applicant may transport
6malt or brewed beverages to and from its licensed premises to
7the proposed premises;

8(8) written notice of the catered function as enumerated in
9paragraph (9) shall be provided to the local police and the
10enforcement bureau at least seven days in advance of the event;

11(9) written notice shall be provided to the board at least
12thirty days prior to a catered function. Written notice must
13include the location of the function, time of the function, host
14of the function, general information regarding the guests
15expected at the function as well as any information the board
16shall from time to time prescribe. The board may, in its
17discretion, accept notice in an electronic format. The board
18may, in its discretion, waive the thirty-day notice period for a
19catered function if:

20(i) the applicant has previously conducted functions that
21meet the requirements of this act;

22(ii) the applicant is a licensee in good standing with the
23board;

24(iii) notification was received at least fourteen days prior
25to the catered function; and

26(iv) the applicant pays a late fee of one hundred dollars
27($100);

28(10) the board shall, in its discretion, approve or
29disapprove a catered function if the applicant fails to provide
30timely notice of the catered function, does not intend to

1conduct a function that meets the requirements of this act or
2has previously conducted a function that did not meet the
3requirements of this act;

4(11) if a catered function is scheduled to occur on private
5property, the owner of that property is deemed to have submitted
6to the jurisdiction of the enforcement bureau, and the warrant
7required by section 211(a)(2) of this act shall not be necessary
8for the enforcement bureau to enter and search the premises
9during the function or any activities related to the function;

10(12) all servers at the off-premises catered function shall
11be in compliance with the responsible alcohol management
12provisions under section 471.1 of this act;

13(13) no catered function may be held for more than five
14hours per day and must end by midnight;

15(14) neither the owner of the property nor the applicant may
16sell tickets to a catered function unless one of the following
17conditions is met:

18(i) the applicant has contracted with an eligible entity for
19the function, and the function is being used to raise money for
20the eligible entity's organization;

21(ii) the applicant has contracted with a nonprofit
22organization as defined under section 501(c)(3) of the Internal
23Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)),
24for an event which has the sole purpose of raising funds for
25that nonprofit organization;

26(iii) the applicant has contracted with an organization that
27holds tax-exempt status under section 527 of the Internal
28Revenue Code of 1986;

29(15) catered functions held on unlicensed premises shall be
30subject to section 493(34) of this act;

1(16) catered functions may not be held in locations that are
2subject to a pending, protested transfer application;

3(17) a permit may not be issued to a licensee who is subject
4to objection under the board's nuisance bar program;

5(18) a permit shall not be issued to a licensee for use in
6any location that is mobile; and

7(19) a permit shall not be issued for use on any location
8used for parking at a sports event or concert event.

9(g) Notwithstanding any other provision of law or
10regulation, the holder of a retail dispenser license may hold
11happy hours up to four consecutive or nonconsecutive hours per
12day and up to fourteen hours per week during which the holder
13discounts the price of alcoholic beverages. No discounts may be
14given between the hours of midnight and the legal closing time.
15Notice of all happy hours shall be visibly posted on the
16licensed premises seven days prior to the happy hour. Except as
17provided in this subsection, a licensee shall comply with the
18provisions of 40 Pa. Code § 13.102 (relating to discount pricing
19practices). Events conducted under the authority of 40 Pa. Code
20§ 13.102(b) shall not be counted against the four-hours per day
21or fourteen-hours per week.

22Section 25. Section 443(b) of the act, amended May 31, 1996
23(P.L.312, No.49), is amended and the section is amended by
24adding a subsection to read:

25Section 443. Interlocking Business Prohibited.--* * *

26(b) No distributor or importing distributor and no officer
27or director of any distributor or importing distributor shall at
28the same time be a manufacturer, a retail dispenser or a liquor
29licensee, or be an officer, director, stockholder or creditor of
30a manufacturer, a retail dispenser or a liquor licensee, or,

1directly or indirectly, own any stock of, or have any financial
2interest in, or be the owner, proprietor or lessor of, any place
3covered by any other malt or brewed beverage or liquor license.
4The requirements of this section or any other provision of law, 
5shall not prohibit the holder of a distributor license from 
6holding a wine and spirits retail license issued pursuant to 
7Article III-A, or an importing distributor from also holding a 
8wine and spirits wholesale license issued pursuant to Article 
9III-A.

10* * *

11(h) (1) Notwithstanding any other provision of law, a
12manufacturer or licensee and its officers, directors,
13shareholders, servants, agents or employes may contribute and a
14manufacturer or licensee and its officers, directors,
15shareholders, servants, agents or employes may accept moneys or
16other things of value solely for the administration of a
17responsible alcohol management training program for alcohol
18service personnel as provided under section 471.1. The moneys or
19other things of value may be provided by or to a manufacturer or
20licensee and its officers, directors, shareholders, servants,
21agents or employes directly of, by or to a trade organization
22consisting, in whole or in part, of a group of licensees.

23(2) The manufacturer, licensee and trade organization
24associated with the person providing moneys or other things of
25value must keep a record of the value of the moneys or other
26things of value provided, the date provided and the entity to
27whom the moneys or other things of value were provided, as part
28of the records required under section 493(12).

29(3) The manufacturer, licensee and trade organization
30associated with the person receiving the moneys or other things

1of value must keep a record of the value of the moneys or other
2things of value received, the date provided, the entity from
3whom the moneys or other things of value were received and the
4manner in which the moneys or other things of value were used,
5as part of the records required under section 493(12) of this
6act.

7Section 26. Section 446(a)(1) of the act, amended December
822, 2011 (P.L.530, No.113), is amended to read:

9Section 446. Breweries.--(a) Holders of a brewery license
10may:

11(1) Sell malt or brewed beverages produced and owned by the
12brewery under such conditions and regulations as the board may
13enforce, to individuals for consumption on the licensed premises
14in any container or package of any volume and to hotel,
15restaurant, club, grocery stores and public service liquor
16licensees.

17* * *

18Section 27. Section 461(a) of the act, amended October 24,
192012 (P.L.1203, No.149), is amended and the section is amended
20by adding a subsection to read:

21Section 461. Limiting Number of Retail Licenses To Be Issued
22In Each County.--(a) No additional restaurant, eating place
23retail dispenser or club licenses shall be issued within a
24county if the total number of restaurant and eating place retail
25dispenser licenses is greater than one license for each three
26thousand inhabitants in the county, except the board may issue
27licenses to public venues, performing arts facilities,
28continuing care retirement communities, airport restaurants,
29municipal golf courses, hotels, privately-owned private golf
30courses, privately-owned public golf courses, racetracks,

1automobile racetracks, nonprimary pari-mutuel wagering
2locations, privately-owned ski resorts, grocery stores and to
3any other entity which this act specifically exempts from the
4limitations provided in this section, and the board may issue a
5license to a club situated in a borough having a population less
6than eight thousand inhabitants which is located in a county of
7the second class A whose application is filed on or before
8February 28, 2001. In addition, the board may issue an eating
9place retail dispenser license for on-premises sales only to the
10owner or operator of a facility having a minimum of a one-half
11mile asphalt track and having a permanent seating capacity of at
12least six thousand people used principally for holding
13automobile races, regardless of the number of restaurant and
14eating place retail dispenser licenses already issued in that
15county. When determining the number of restaurant and eating
16place retail dispenser licenses issued in a county for the
17purposes of this section, licenses exempted from this limitation
18and club licenses shall not be considered. Inhabitants of dry
19municipalities shall be considered when determining the
20population in a county. Licenses shall not be issued or
21transferred into municipalities where such licenses are
22prohibited pursuant to local referendum in accordance with
23section 472. Licenses approved for intermunicipal transfer may
24not be transferred from the receiving municipality for a period
25of five years after the date that the licensed premises are
26operational in the receiving municipality.

27(a.1) An additional grocery store retail license may not be
28issued within a county if the total number of grocery store
29retail licenses is greater than one license for every fifteen
30thousand inhabitants in the county, provided that a total of two

1such licenses may be granted in a county in this Commonwealth.

2* * *

3Section 28. Section 468(a) and (e) of the act, amended or 
4added December 20, 2000 (P.L.992, No.141), February 21, 2002 
5(P.L.103, No.10), June 28, 2011 (P.L.55, No.11) and December 22, 
62011 (P.L.530, No.113), are amended to read:

7Section 468. Licenses Not Assignable; Transfers.--(a) (1)
8Licenses issued under this article may not be assigned. The 
9board, upon payment of the transfer filing fee, is hereby 
10authorized to transfer any license issued by it under the 
11provisions of this article from one person to another or from 
12one place to another, or both. Except for restaurant liquor and 
13eating place retail dispenser licenses transferred under section 
14461(b.4), if the license is a retail license, the new location 
15must be within the same county as the existing location or, if 
16the municipality is located in more than one county, within the 
17same municipality as the existing location.

18(2) In the case of distributor and importing distributor
19licenses, the board may transfer any such license from its place
20in a municipality to a place in any other municipality within
21the same county, or from one place to another place within the
22same municipality, or exchange a distributor license for an
23importing distributor license or an importing distributor
24license for a distributor license, if the building for which the
25license is to be issued has, in the case of an importing
26distributor license, an area under one roof of two thousand five
27hundred square feet and, in the case of a distributor license,
28an area under one roof of one thousand square feet: And
29provided, That, in the case of all transfers of distributor or
30importing distributor licenses, whether from a place within the

1same municipality to another place within the same municipality
2or from a place in a municipality to a place in any other
3municipality within the same county, and, in the case of an
4exchange of a distributor license for an importing distributor
5license or an importing distributor license for a distributor
6license, the premises to be affected by the transfer or exchange
7shall contain an office separate and apart from the remainder of
8the premises to be licensed for the purpose of keeping records,
9required by the board, adequate toilet facilities for employes
10of the licensee and an entrance on a public thoroughfare:
11Provided, however, That in the event that the majority of the
12voting electors of a municipality, at an election held under the
13provisions of any law so empowering them to do, shall vote
14against the issuance of distributor or importing distributor
15licenses in such municipality, the board is hereby authorized to
16transfer any such distributor or importing distributor license
17from its place in such municipality to a place in any other
18municipality within the same county, upon application prior to
19the expiration of any such license and upon payment of the
20transfer filing fee and the execution of a new bond; but no
21transfer shall be made to a person who would not have been
22eligible to receive the license originally nor for the
23transaction of business at a place for which the license could
24not lawfully have been issued originally, nor, except as herein
25provided, to a place as to which a license has been revoked.

26(3) [No license shall be transferred to any place or
27property upon which is located as a business the sale of liquid
28fuels and oil.] Except in cases of emergency such as death,
29serious illness, or circumstances beyond the control of the
30licensee, as the board may determine such circumstances to

1justify its action, transfers of licenses may be made only at
2times fixed by the board. In the case of the death of a
3licensee, the board may transfer the license to the surviving
4spouse or personal representative or to a person designated by
5him. From any refusal to grant a transfer or upon the grant of
6any transfer, the party aggrieved shall have the right of appeal
7to the proper court in the manner hereinbefore provided.

8(4) In the event the license to be transferred has been
9ordered to serve a suspension under section 471 and has not
10served the suspension at the time the board considers the
11application and all appeals regarding the suspension have been
12exhausted, the board may require the transferee to serve the
13suspension as a condition for approval of the transfer. Further,
14the board may convert the outstanding suspension into a fine and
15require the transferee to pay the fine as a condition for
16approval of the transfer. If the board converts the outstanding
17suspension to a fine, the fine need not comply with the minimum
18and maximum amounts set forth in section 471 for the underlying
19citation.

20* * *

21(e) Notwithstanding any other provision of law, the board
22may not approve an interior connection that is greater than ten
23feet wide between a licensed business and another business. This
24subsection shall not prohibit the board from approving a renewal
25application of a license, even if the licensed business has an
26interior connection that is greater than ten feet wide to an
27unlicensed business, if the board had approved the interior
28connection prior to the effective date of this subsection. This 
29subsection shall not apply to the holder of a grocery store 
30retail license.

1Section 29. Section 470(a) of the act, amended December 22,
22011 (P.L.530, No.113), is amended to read:

3Section 470. Renewal of Licenses; Temporary Provisions for
4Licensees in Armed Service.--(a) All applications for renewal
5or validation of licenses under the provisions of this article
6shall be filed with tax clearance from the Department of Revenue
7and the Department of Labor and Industry and requisite license
8and filing fees, including an application surcharge of seven 
9hundred dollars ($700), at least sixty days before the
10expiration date of same: Provided, however, That the board, in
11its discretion, may accept nunc pro tunc a renewal application
12filed less than sixty days before the expiration date of the
13license with the required fees, upon reasonable cause shown and
14the payment of an additional filing fee of one hundred dollars
15($100.00) for late filing: And provided further, That except
16where the failure to file a renewal application on or before the
17expiration date has created a license quota vacancy after said
18expiration date which has been filled by the issuance of a new
19license, after such expiration date, but before the board has
20received a renewal application nunc pro tunc within the time
21prescribed herein the board, in its discretion, may, after
22hearing, accept a renewal application filed within two years
23after the expiration date of the license with the required fees
24upon the payment of an additional filing fee of two hundred
25fifty dollars ($250.00) for late filing. Where any such renewal
26application is filed less than sixty days before the expiration
27date, or subsequent to the expiration date, no license shall
28issue upon the filing of the renewal application until the
29matter is finally determined by the board and if an appeal is
30taken from the board's action the courts shall not order the

1issuance of the renewal license until final determination of the
2matter by the courts. The board may enter into an agreement with
3the applicant concerning additional restrictions on the license
4in question. If the board and the applicant enter into such an
5agreement, such agreement shall be binding on the applicant.
6Failure by the applicant to adhere to the agreement will be
7sufficient cause to form the basis for a citation under section
8471 and for the nonrenewal of the license under this section. A
9renewal application will not be considered filed unless
10accompanied by the requisite filing and license fees and any
11additional filing fee required by this section. Unless the board
12shall have given ten days' previous notice to the applicant of
13objections to the renewal of his license, based upon violation
14by the licensee or his servants, agents or employes of any of
15the laws of the Commonwealth or regulations of the board
16relating to the manufacture, transportation, use, storage,
17importation, possession or sale of liquors, alcohol or malt or
18brewed beverages, or the conduct of a licensed establishment, or
19unless the applicant has by his own act become a person of ill
20repute, or unless the premises do not meet the requirements of
21this act or the regulations of the board, the license of a
22licensee shall be renewed. Notwithstanding any other provision 
23of this act, a noise violation shall not be the sole basis for 
24objection by the board to the renewal of a license unless the 
25licensee has received six prior adjudicated noise citations 
26within a twenty-four-month period.

27* * *

28Section 30. Section 471(b) and (e) of the act, amended or
29added July 6, 2005 (P.L.135, No.39) and April 13, 2006 (P.L.78,
30No.26), are amended to read:

1Section 471. Revocation and Suspension of Licenses; Fines.--
2* * *

3(b) Hearing on such citations shall be held in the same
4manner as provided herein for hearings on applications for
5license. Upon such hearing, if satisfied that any such violation
6has occurred or for other sufficient cause, the administrative
7law judge shall immediately suspend or revoke the license, or
8impose a fine of not less than [fifty dollars ($50)] two hundred 
9fifty dollars ($250) nor more than [one thousand dollars
10($1,000)] five thousand dollars ($5,000), or both, notifying the
11licensee by registered letter addressed to his licensed
12premises. If the licensee has been cited and found to have
13violated section 493(1) insofar as it relates to sales to minors
14or sales to a visibly intoxicated person, section 493(10)
15insofar as it relates to lewd, immoral or improper entertainment
16or section 493(14), (16) or (21), or has been found to be a
17public nuisance pursuant to section 611, or if the owner or
18operator of the licensed premises or any authorized agent of the
19owner or operator has been convicted of any violation of the act
20of April 14, 1972 (P.L.233, No.64), known as "The Controlled
21Substance, Drug, Device and Cosmetic Act," or of 18 Pa.C.S. § 
225902 (relating to prostitution and related offenses) or 6301
23(relating to corruption of minors), at or relating to the
24licensed premises, the administrative law judge shall
25immediately suspend or revoke the license, or impose a fine of
26not less than [one thousand dollars ($1,000)] five thousand 
27dollars ($5,000) nor more than [five thousand dollars ($5,000)] 
28ten thousand dollars ($10,000), or both. However, if a licensee
29has been cited and found to have violated section 493(1) as it
30relates to sales to minors or sales to a visibly intoxicated

1person but at the time of the sale the licensee was in
2compliance with the requirements set forth in section 471.1 and
3the licensee had not sold to minors or visibly intoxicated
4persons in the previous four years, then the administrative law
5judge shall immediately suspend or revoke the license, or impose
6a fine of not less than [fifty dollars ($50)] one thousand 
7dollars ($1,000) nor more than [one thousand dollars ($1,000)] 
8five thousand dollars ($5,000), or both. The administrative law
9judge shall notify the licensee by registered mail, addressed to
10the licensed premises, of such suspension, revocation or fine.
11In the event the fine is not paid within twenty days of the
12adjudication, the administrative law judge shall suspend or
13revoke the license, notifying the licensee by registered mail
14addressed to the licensed premises. Suspensions and revocations
15shall not go into effect until thirty days have elapsed from the
16date of the adjudication during which time the licensee may take
17an appeal as provided for in this act, except that revocations
18mandated in section 481(c) shall go into effect immediately. Any
19licensee whose license is revoked shall be ineligible to have a
20license under this act until the expiration of three years from
21the date such license was revoked. In the event a license is
22revoked, no license shall be granted for the premises or
23transferred to the premises in which the said license was
24conducted for a period of at least one year after the date of
25the revocation of the license conducted in the said premises,
26except in cases where the licensee or a member of his immediate
27family is not the owner of the premises, in which case the board
28may, in its discretion, issue or transfer a license within the
29said year. In the event the bureau or the person who was fined
30or whose license was suspended or revoked shall feel aggrieved

1by the adjudication of the administrative law judge, there shall
2be a right to appeal to the board. The appeal shall be based
3solely on the record before the administrative law judge. The
4board shall only reverse the decision of the administrative law
5judge if the administrative law judge committed an error of law,
6abused its discretion or if its decision is not based on
7substantial evidence. In the event the bureau or the person who
8was fined or whose license was suspended or revoked shall feel
9aggrieved by the decision of the board, there shall be a right
10to appeal to the court of common pleas in the same manner as
11herein provided for appeals from refusals to grant licenses.
12Each of the appeals shall act as a supersedeas unless, upon
13sufficient cause shown, the reviewing authority shall determine
14otherwise; however, if the licensee has been cited and found to
15have violated section 493(1) insofar as it relates to sales to
16minors or sales to a visibly intoxicated person, section 493(10)
17insofar as it relates to lewd, immoral or improper entertainment
18or section 493(14), (16) or (21), or has been found to be a
19public nuisance pursuant to section 611, or if the owner or
20operator of the licensed premises or any authorized agent of the
21owner or operator has been convicted of any violation of "The
22Controlled Substance, Drug, Device and Cosmetic Act," or of 18 
23Pa.C.S. § 5902 or 6301, at or relating to the licensed premises,
24or if the license has been revoked under section 481(c), its
25appeal shall not act as a supersedeas unless the reviewing
26authority determines otherwise upon sufficient cause shown. In
27any hearing on an application for a supersedeas under this
28section, the reviewing authority may consider, in addition to
29other relevant evidence, documentary evidence, including records
30of the bureau, showing the prior history of citations, fines,

1suspensions or revocations against the licensee; and the
2reviewing authority may also consider, in addition to other
3relevant evidence, evidence of any recurrence of the unlawful
4activity occurring between the date of the citation which is the
5subject of the appeal and the date of the hearing. If the
6reviewing authority is the board, no hearing shall be held on
7the application for a supersedeas; however, a decision shall be
8made based on the application, answer and documentary evidence
9under this subsection. If the application for a supersedeas is
10for a license that has been revoked under section 481(c), the
11reviewing authority shall grant the supersedeas only if it finds
12that the licensee will likely prevail on the merits. No penalty
13provided by this section shall be imposed for any violations
14provided for in this act unless the bureau notifies the licensee
15of its nature within thirty days of the completion of the
16investigation.

17* * *

18(e) If a licensee has been cited and found to have violated
19section 493(1) for a second or subsequent offense as it relates
20to sales to minors or sales to a visibly intoxicated person, the
21administrative law judge, in addition to the penalties set forth
22in subsection (b), shall impose a suspension of at least two 
23consecutive weekend days when the offense is a second offense or 
24two consecutive Saturdays of operation if the licensee does not 
25hold a Sunday sales permit, and a suspension of at least seven 
26consecutive days of operation when the offense is a third or 
27subsequent offense. The mandatory suspension provision shall not 
28apply to licensees which also hold a license issued by the 
29Pennsylvania Gaming Control Board for the use of their premises. 
30Further, the administrative law judge may, in such instances,

1require the licensee to comply with the requirements set forth
2in section 471.1 pertaining to responsible alcohol management.
3Such compliance may be required for a period of up to one year.
4Failure to adhere with such an order is sufficient cause for the
5issuance of a citation under subsection (a).

6* * *

7Section 31. Section 471.1(a) of the act, added December 20, 
82000 (P.L.992, No.141), is amended to read:

9Section 471.1. Responsible Alcohol Management.--(a) The
10board is authorized to offer a responsible alcohol service
11program to licensees. The program shall consist of four parts:
12new employe orientation, training for alcohol service personnel,
13manager/owner training and the displaying of responsible alcohol
14service signage. New employe orientation shall consist of
15orienting newly hired alcohol service personnel as to
16Pennsylvania law relating to the sale, furnishing or serving of
17alcoholic beverages to minors and visibly intoxicated persons.
18It shall also mean orienting newly hired alcohol service
19personnel to responsible server practices, as the term is
20defined by the board, through regulation. Training for alcohol
21service personnel shall be as set forth by the board, but at
22minimum it shall consist of training to prevent service of
23alcohol to minors and to visibly intoxicated persons.
24Manager/owner training shall be as set forth by the board, but
25at a minimum it shall consist of training on how to monitor
26employes, proper service of alcohol and how to develop an
27appropriate alcohol service policy. The responsible alcohol
28service signage shall be as set forth by the board and shall
29consist of signage dealing with the licensee's policy against
30sales to minors and visibly intoxicated persons. Alcohol service

1personnel training [may] shall be conducted by [the board or by
2an entity] entities certified by the board to conduct such
3training.

4* * *

5Section 32. Section 472(a) of the act, amended February 21, 
62002 (P.L.103, No.10), is amended to read:

7Section 472. Local Option.--(a) In any municipality or any
8part of a municipality where such municipality is split so that
9each part thereof is separated by another municipality, an
10election may be held, subject to subsection (c), on the date of
11the primary election immediately preceding any municipal
12election, but not oftener than once in four years, to determine
13the will of the electors with respect to the granting of liquor
14licenses to hotels, restaurants, resort facilities and clubs,
15not oftener than once in four years, to determine the will of
16the electors with respect to the granting of liquor licenses to
17public venues, to performing arts facilities, to continuing care
18retirement communities, to hotels located on property owned by
19an accredited college or university, to privately-owned private
20golf courses or to privately-owned public golf courses, not
21oftener than once in four years, to determine the will of the
22electors with respect to the granting of licenses to retail
23dispensers of malt and brewed beverages, not oftener than once
24in four years, to determine the will of the electors with
25respect to granting of licenses to wholesale distributors and
26importing distributors, not more than once in two years, to
27determine the will of the electors with respect to the granting
28of club liquor licenses or club retail dispenser licenses to
29incorporated units of national veterans' organizations, not
30oftener than once in two years to determine the will of the

1electors with respect to the granting of special occasion
2permits to qualified organizations, not more than once in two 
3years, to determine the will of the electors with respect to 
4granting of licenses to grocery stores, or not more than once in
5four years, to determine the will of the electors with respect
6to the establishment[, operation and maintenance by the board of
7Pennsylvania liquor stores] of wine and spirits retail 
8licensees, within the limits of such municipality or part of a
9split municipality, under the provisions of this act: Provided,
10however, Where an election shall have been held at the primary
11preceding a municipal election in any year, another election may
12be held under the provisions of this act at the primary
13occurring the fourth year after such prior election: And
14provided further, That an election on the question of
15establishing and operating a State liquor store shall be
16initiated only in those municipalities, or that part of a split
17municipality that shall have voted against the granting of
18liquor licenses; and that an election on the question of
19granting wholesale distributor and importing distributor
20licenses shall be initiated only in those municipalities or
21parts of split municipalities that shall have at a previous
22election voted against the granting of dispenser's licenses.
23Whenever electors equal to at least twenty-five per centum of
24the highest vote cast for any office in the municipality or part
25of a split municipality at the last preceding general election
26shall file a petition with the county board of elections of the
27county for a referendum on the question of granting any of said
28classes of licenses [or the establishment of Pennsylvania liquor
29stores], the said county board of elections shall cause a
30question to be placed on the ballots or on the voting machine

1board and submitted at the primary immediately preceding the
2municipal election. Separate petitions must be filed for each
3question to be voted on. Said proceedings shall be in the manner
4and subject to the provisions of the election laws which relate
5to the signing, filing and adjudication of nomination petitions,
6insofar as such provisions are applicable.

7When the question is in respect to the granting of liquor
8licenses, it shall be in the following form:

9Do you favor the granting of liquor licenses for the
10sale of liquor in.......................................
11of.....................................................?

Yes

No

12When the question is in respect to the granting of liquor
13licenses to resort facilities in those municipalities that do
14not already allow the retail sale of liquor, it shall be in the
15following form:

16Do you favor the granting of liquor licenses to resort
17facilities for the sale of liquor in the................
18of.....................................................?

Yes

No

19When the question is in respect to the granting of restaurant
20liquor licenses for use at public venues in those municipalities
21that do not already allow the retail sale of liquor, it shall be
22in the following form:

23Do you favor the granting of liquor licenses to public
24venues for the sale of liquor in the....................
25of.....................................................?

Yes

No

26When the question is in respect to the granting of restaurant
27liquor licenses for use at performing arts facilities in those
28municipalities that do not already allow the retail sale of
29alcohol, it shall be in the following form:

30Do you favor the granting of liquor licenses to

 

1performing arts facilities for the sale of liquor in
2the.....................................................
3of.....................................................?

 




Yes

No

4When the question is in respect to the granting of liquor
5licenses for hotels located on property owned by an accredited
6college or university in those municipalities that do not
7already allow the granting of liquor licenses, it shall be in
8the following form:

9Do you favor the granting of liquor licenses to hotels
10on property owned by an accredited college or university
11in the..................................................
12of.....................................................?

Yes

No

13When the question is in respect to the granting of liquor
14licenses, for privately-owned private golf courses, it shall be
15in the following form:

16Do you favor the granting of liquor licenses for
17privately-owned private golf courses for the sale of
18liquor in....................by.........................
19of.....................................................?

Yes

No

20When the question is in respect to the granting of liquor
21licenses, for privately-owned public golf courses, it shall be
22in the following form:

23Do you favor the granting of liquor licenses for
24privately-owned public golf courses for the sale of
25liquor in....................by.........................
26of.....................................................?

Yes

No

27When the question is in respect to the granting of liquor
28licenses to continuing care retirement communities in those
29municipalities that have not already approved the granting of
30liquor licenses, it shall be in the following form:

1Do you favor the granting of liquor licenses for
2continuing care retirement communities
3in...........................by.........................
4of.....................................................?

Yes

No

5When the question is in respect to the granting of licenses
6to retail dispensers of malt and brewed beverages, it shall be
7in the following form:

8Do you favor the granting of malt and brewed beverage

 

9retail dispenser licenses for consumption on premises
10where sold in the.......................................
11of.....................................................?

Yes

No

12When the question is in respect to the granting of grocery
13store licenses for the sale of wine for consumption off the
14premises, it shall be in the following form:

15Do you favor the granting of licenses for grocery stores
16for the sale of wine for consumption off the premises
17in.........................by...........................
18of.....................................................?

 

 

Yes

No

19When the question is in respect to the granting of licenses
20to wholesale distributors of malt or brewed beverages and
21importing distributors, it shall be in the following form:

22Do you favor the granting of malt and brewed beverage
23wholesale distributor's and importing distributor's
24licenses not for consumption on premises where sold in
25the.....................................................
26of.....................................................?

 

 

 

Yes

No

27When the question is in respect to the granting of club
28liquor licenses to incorporated units of national veterans'
29organizations, it shall be in the following form:

30Do you favor the granting of club liquor licenses to

 

1incorporated units of national veterans' organizations
2in the..................................................
3of.....................................................?

 




Yes

No

4When the question is in respect to the granting of club
5retail dispenser licenses to incorporated units of national
6veterans' organizations, it shall be in the following form:

7Do you favor the granting of club retail dispenser
8licenses to incorporated units of national veterans'
9organizations in the....................................
10of.....................................................?

Yes

No

11When the question is in respect to the granting of special
12occasion permits allowing the sale of liquor by qualified
13organizations in municipalities that do not already allow the
14retail sale of liquor, it shall be in the following form:

15Do you favor the granting of special occasion permits to
16allow the sale of liquor by qualified organizations in
17the.....................................................
18of.....................................................?

Yes

No

19When the question is in respect to the granting of special
20occasion permits allowing the sale of malt or brewed beverages
21only by qualified organizations in municipalities that do not
22already allow the retail sale of malt or brewed beverages, it
23shall be in the following form:

24Do you favor the granting of special occasion permits to
25allow the sale of malt or brewed beverages only by
26qualified organizations in the..........................
27of.....................................................?

Yes

No

28When the question is in respect to the [establishment,
29operation and maintenance of Pennsylvania liquor stores] 
30granting of licenses to wine and spirits retail operators for 

1the sale of liquor for consumption off the premises, it shall be
2in the following form:

3Do you favor the [establishment, operation and
4maintenance of Pennsylvania liquor stores] granting of 
5wine and spirits retail licenses for the sale of liquor 
6for consumption off the premises in
7the.....................................................
8of.....................................................?

Yes

No

9In case of a tie vote, the status quo shall obtain. If a
10majority of the voting electors on any such question vote "yes,"
11then liquor licenses shall be granted by the board to hotels,
12restaurants, resort facilities and clubs, or liquor licenses
13shall be granted by the board to public venues, to performing
14arts facilities, to continuing care retirement communities, to
15hotels located on property owned by an accredited college or
16university, to privately-owned private golf courses or to
17privately-owned public golf courses, or malt and brewed beverage
18retail dispenser licenses or wholesale distributor's and
19importing distributor's license for the sale of malt or brewed
20beverages shall be granted by the board, or club liquor licenses
21or club retail dispenser licenses shall be granted by the board
22to incorporated units of national veterans' organizations, or
23special occasion permits may be issued to qualified
24organizations, or [the board may establish, operate and maintain
25Pennsylvania liquor stores] licenses to grocery stores or to 
26wine and spirits retail licensees, as the case may be, in such
27municipality or part of a split municipality, as provided by
28this act; but if a majority of the electors voting on any such
29question vote "no," then the board shall have no power to grant
30or to renew upon their expiration any licenses of the class so

1voted upon in such municipality or part of a split
2municipality[; or if the negative vote is on the question in
3respect to the establishment, operation and maintenance of
4Pennsylvania liquor stores, the board shall not open and operate
5a Pennsylvania liquor store in such municipality or part of a
6split municipality, nor continue to operate a then existing
7Pennsylvania liquor store in the municipality or part of a split
8municipality for more than two years thereafter or after the
9expiration of the term of the lease on the premises occupied by
10such store, whichever period is less, unless and until at a
11later election a majority of the voting electors vote "yes" on
12such question].

13* * *

14Section 33. Section 491 of the act, amended October 5, 1994 
15(P.L.522, No.77), February 21, 2002 (P.L.103, No.10), December 
169, 2002 (P.L.1653, No.212), July 17, 2003 (P.L.63, No.15), 
17December 22, 2011 (P.L.530, No.113) and July 5, 2012 (P.L.1007, 
18No.116), is amended to read:

19Section 491. Unlawful Acts Relative to Liquor, Alcohol and
20Liquor Licensees.--

21It shall be unlawful--

22(1) Sales of Liquor. For any person, by himself or by an
23employe or agent, to expose or keep for sale, or directly or
24indirectly, or upon any pretense or upon any device, to sell or
25offer to sell any liquor within this Commonwealth, except in
26accordance with the provisions of this act and the regulations
27of the board. This clause shall not be construed to prohibit
28hospitals, physicians, dentists or veterinarians who are
29licensed and registered under the laws of this Commonwealth from
30administering liquor in the regular course of their professional

1work and taking into account the cost of the liquor so
2administered in making charges for their professional service,
3or a pharmacist duly licensed and registered under the laws of
4this Commonwealth from dispensing liquor on a prescription of a
5duly licensed physician, dentist or veterinarian, or selling
6medical preparations containing alcohol, or using liquor in
7compounding prescriptions or medicines and making a charge for
8the liquor used in such medicines, or a manufacturing pharmacist
9or chemist from using liquor in manufacturing preparations unfit
10for beverage purposes and making a charge for the liquor so
11used. All such liquors so administered or sold by hospitals,
12physicians, dentists, veterinarians, pharmacists or chemists
13shall conform to the Pharmacopoeia of the United States, the
14National Formulary, or the American Homeopathic Pharmacopoeia.
15This clause shall not be construed to prohibit an executor or an
16administrator of a decedent's estate from selling privately or
17at public auction liquor which was an asset of the decedent. The
18board shall establish regulations to ensure that State taxes
19from the sales will be paid by the estate from the proceeds of
20the sale. The board may not prohibit a sale of liquor for the
21reason that it was not lawfully acquired prior to January 1,
221934 or has not been purchased from a Pennsylvania Liquor Store
23or in compliance with Pennsylvania law.

24(2) Possession or Transportation of Liquor or Alcohol. For
25any person, except a manufacturer or the board or the holder of
26a sacramental wine license or of an importer's license or a wine 
27and spirits retail licensee, to possess or transport any liquor
28or alcohol within this Commonwealth which was not lawfully
29acquired prior to January first, one thousand nine hundred and
30thirty-four, or has not been purchased from a Pennsylvania

1Liquor Store, a wine and spirits wholesale licensee or a
2licensed limited winery in Pennsylvania, except in accordance
3with section 488 or the board's regulations. In addition, it
4shall be lawful for anyone to possess miniatures totaling less
5than one gallon purchased in another state or a foreign country.
6The burden shall be upon the person possessing or transporting
7such liquor or alcohol to prove that it was so acquired.
8Notwithstanding this section or any other provision of the law,
9wine may be produced by any person without a license if the wine
10is not produced for sale and total production does not exceed
11two hundred gallons per calendar year. Wine produced in
12accordance with this clause may be used at organized affairs,
13exhibitions, competitions, contests, tastings or judgings if it
14is not sold or offered for sale.

15None of the provisions herein contained shall prohibit nor
16shall it be unlawful for any person to import into Pennsylvania,
17transport or have in his possession, an amount of liquor not
18exceeding one gallon in volume upon which a State tax has not
19been paid, if it can be shown to the satisfaction of the board
20that such person purchased the liquor in a foreign country or
21United States territory and was allowed to bring it into the
22United States. Neither shall the provisions contained herein
23prohibit nor make it unlawful for (i) any member of the armed
24forces on active duty, or (ii) any retired member of the armed
25forces, or (iii) any totally disabled veteran, or (iv) the
26spouse of any person included in the foregoing classes of
27persons to import into Pennsylvania, transport or have in his
28possession an amount of liquor not exceeding one gallon per
29month in volume upon which the State tax has not been paid, so
30long as such liquor has been lawfully purchased from a package

1store established and maintained under the authority of the
2United States and is in containers identified in accordance with
3regulations issued by the Department of Defense. Such liquor
4shall not be possessed, offered for sale or sold on any licensed
5premises. The term "package store" as used in this clause shall 
6mean those retail operations located on any of the United States 
7military installations, including an installation of the Army, 
8Navy, Air Force, Marine Corps or Coast Guard.

9None of the provisions herein contained shall prohibit nor
10shall it be unlawful for any consul general, consul or other
11diplomatic officer of a foreign government to import into
12Pennsylvania, transport or have in his possession liquor upon
13which a State tax has not been paid, if it can be shown to the
14satisfaction of the board that such person acquired the liquor
15in a foreign country and was allowed to bring it into the United
16States. Such liquor shall not be possessed, offered for sale or
17sold on any licensed premises.

18Any person violating the provisions of this clause for a
19first offense involving the possession or transportation in
20Pennsylvania of any liquor in a package (bottle or other
21receptacle) or wine not purchased from a Pennsylvania Liquor
22Store, a wine and spirits wholesale licensee, a wine and spirits 
23retail licensee or from a licensed limited winery in
24Pennsylvania, with respect to which satisfactory proof is
25produced that the required Federal tax has been paid and which
26was purchased, procured or acquired legally outside of
27Pennsylvania shall upon conviction thereof in a summary
28proceeding be sentenced to pay a fine of twenty-five dollars
29($25) for each such package, plus costs of prosecution, or
30undergo imprisonment for a term not exceeding ninety (90) days.

1Each full quart or major fraction thereof shall be considered a
2separate package (bottle or other receptacle) for the purposes
3of this clause. Such packages of liquor shall be forfeited to
4the Commonwealth in the manner prescribed in Article VI of this
5act but the vehicle, boat, vessel, animal or aircraft used in
6the illegal transportation of such packages shall not be subject
7to forfeiture: Provided, however, That if it is a second or
8subsequent offense or if it is established that the illegal
9possession or transportation was in connection with a commercial
10transaction, then the other provisions of this act providing for
11prosecution as a misdemeanor and for the forfeiture of the
12vehicle, boat, vessel, animal or aircraft shall apply.

13(3) Purchase of Liquor or Alcohol. For any person within
14this Commonwealth, by himself or by an employe or agent, to
15attempt to purchase, or directly or indirectly, or upon any
16pretense or device whatsoever, to purchase any liquor or alcohol
17from any person or source [other than a Pennsylvania Liquor
18Store], except in accordance with the provisions of this act or
19the regulations of the board.

20(4) Possession and Use of Decanters. For any person to use