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
 

1extension, for fees, for sales and restrictions, for wine 
2auction permits and for importers' licenses; in licensing, 
3providing for grocery store licenses, convenience store 
4licenses; in licensing, further providing for malt and brewed 
5beverages licenses; and further providing for distributor 
6package reform permit, providing for authority to issue 
7liquor licenses to grocery stores, for applications for 
8grocery store retail license, for issuance or transfer of 
9grocery store liquor licenses; providing for sales by liquor 
10licensees and restrictions; further providing for sales by 
11grocery store retail licensees and restriction; in licensing, 
12providing for enhanced distributors licenses; in licensing, 
13further providing for license applications, for license 
14restrictions, for sales, storage and purchase restrictions, 
15for interlocking business, for breweries, for county 
16limitations, for administrative proceedings, for 
17assignability, for renewal and temporary provisions, for 
18sanctions, for local option, for responsible alcohol 
19management, for unlawful acts and for hours of operation; in 
20licensing, providing for unlawful acts and for licensees and 
21taxes; in licensing, further providing for penalties and for 
22vacation of premises; in distilleries, wineries, bonded 
23warehouses, bailees and transporters, further providing for 
24limited wineries, for distilleries and for license fees; and 
25providing for supplemental provisions. <-in preliminary 
26provisions, further providing for definitions; in
27Pennsylvania Liquor Control Board, further providing for 
28general powers; in Pennsylvania liquor stores, further 
29providing for time of sales and for sales by Pennsylvania 
30liquor stores; in liquor, alcohol and malt and brewed 
31beverages licenses and regulations, further providing for 
32authority to issue liquor licenses to hotels, restaurants and 
33clubs, for license districts, periods, hearings, sales and 
34restrictions, for sale of malt or brewed beverages, for 
35liquor importers' licenses, fees, privileges and 
36restrictions, for interlocking businesses; providing for 
37expanded permits and for enhanced distributor and importing 
38distributor permits; further providing for malt and brewed 
39beverages manufacturers', distributors' and importing 
40distributors' licenses, for number and kinds of licenses 
41allowed same licensee, for distributors' and importing 
42distributors' restrictions, for retail dispensers' 
43restrictions, for interlocking businesses, for breweries, for 
44county retail licenses, for assignability and transfers, for 
45local option, for surrender of license, for shipment of wine 
46into Commonwealth; establishing the Pennsylvania Wine 
47Industry Promotion Board; further providing for unlawful 
48acts, for alcohol and liquor licensees, for identification 
49cards and prosecution and for vacation of premises by 
50patrons; in distilleries, wineries, bonded warehouses, 
51bailees for hire and transporters for hire, further providing 
52for limited wineries and for distilleries; in disposition of 
53collected funds, further providing for money returned to 
54municipalities; providing for money paid into the General 
55Fund for use of the Commonwealth; further providing for money 
56for use of the Commonwealth; establishing the Senior Citizens 
57Property Tax Relief Fund; providing for a transfer from the 
58State Stores Fund; providing for studies of the wine and 
59spirits wholesale system in this Commonwealth; and making a 
60related repeal.

1The General Assembly of the Commonwealth of Pennsylvania
2hereby enacts as follows:

<-3Section 1. Section 102 of the act of April 12, 1951 (P.L.90,
4No.21), known as the Liquor Code, reenacted and amended June 29,
51987 (P.L.32, No.14), is amended by adding definitions to read:

6Section 102. Definitions.--The following words or phrases,
7unless the context clearly indicates otherwise, shall have the
8meanings ascribed to them in this section:

9"Affiliate" or "person affiliated with" shall mean a person
10that directly or indirectly, through one or more intermediaries,
11controls, is controlled by or is under common control with a
12specified person.

13* * *

14"Blended brand valuation" shall mean, for any particular
15brand of liquor, the sum of the wholesale profit margin on each
16product of a brand.

17* * *

18"Brand of liquor" shall mean a liquor product or series of
19liquor products produced by a single manufacturer.

20* * *

21"Change in control" shall mean, for purposes of wholesale or
22retail licensees as defined in this section, the acquisition by
23a person or group of persons acting in concert of more than
24twenty per centum of a licensee's securities or other ownership
25interests, with the exception of any ownership interest of the
26person that existed at the time of initial licensing, or more
27than twenty per centum of the securities or other ownership
28interests of a corporation or other legal entity which owns,
29directly or indirectly, at least twenty per centum of the
30securities or other ownership interests of the licensee.

1* * *

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

3* * *

4"Controlling interest" shall mean as follows:

5(1) For a publicly traded legal entity, an interest in a
6legal entity, applicant or licensee whereby a person's sole
7voting rights under State law or corporate articles or bylaws
8entitles the person to elect or appoint one or more of the
9members of the board of directors or other governing board or
10the ownership, directly or indirectly, of five per centum or
11more of the securities of the publicly traded corporation.

12(2) For a privately held corporation, partnership, limited
13liability company or other form of privately held legal entity,
14the holding of any securities in the legal entity.

15* * *

16"Department" shall mean the Department of General Services of
17the Commonwealth.

18* * *

19"Displaced employe" shall mean a salaried employe of the
20board whose employment is terminated as a sole and direct result
21of the implementation of Article III-A. The term shall not
22include a person who is terminated for cause or who retires or
23resigns, is furloughed or is otherwise separated from employment
24for any other reason. The term excludes intermittent liquor
25store clerks and seasonal liquor store clerks.

26* * *

27"Grocery store" shall mean a reputable place operated by
28persons of good repute, which primarily sells food, supplies for
29the table and food products for human consumption off the
30premises and which has an area under one roof of ten thousand

1(10,000) square feet or more.

2"Growler" shall mean a refillable glass container that holds
3a minimum of sixty-four fluid ounces for malt or brewed
4beverages.

5* * *

6"Heritage State Stores" shall mean the number of State
7stores, as determined by the board, located in any given county
8as of the effective date of this definition.

9* * *

10"Institution of higher education" shall mean a public or
11private institution within this Commonwealth authorized by the
12Department of Education to grant a certificate, associate degree
13or higher degree. The term includes a branch or satellite campus
14of the institution.

15* * *

16"Retail licensee" shall mean a person that holds a wine and
17spirits retail license issued pursuant to section 311-A.

18* * *

19"Variable pricing" shall mean, for purposes of the wholesale
20sale of liquor, any disparity in the price of an item sold to
21one licensee as compared to the price of the same item to
22another licensee or a licensee of a different classification.
23The term shall not include discounts for volume purchases.

24* * *

25"Wholesale acquisition factor" shall mean a factor of 2.5
26applied to the wholesale profit margin of a brand of liquor in
27determining a wholesale license fee.

28"Wholesale licensee" shall mean a person that holds a wine
29and spirits wholesale license issued pursuant to section
30321.1-A.

1"Wholesale profit margin" shall mean, for any particular
2liquor product, twenty per centum of the total of costs of goods
3sold of the product in the Commonwealth over the most recent 12-
4month period for which information is available.

5* * *

6"Wine and spirits retail license" shall mean a license issued
7by the department or the board authorizing a person to sell and
8distribute wine and spirits to the public for off the premises
9consumption.

10"Wine and spirits wholesale license" shall mean a license
11issued by the department or the board authorizing a person to
12sell and distribute liquor on a wholesale basis to the board 
13until all retail licenses have been issued in accordance with 
14Article III-A and to retail licensees and other licensees under
15this act.

16* * *

17Section 2. Section 104(c) and (d) of the act, amended
18December 7, 1990 (P.L.622, No.160) and December 20, 1996
19(P.L.1513, No.196), is amended to read:

20Section 104. Interpretation of Act.--* * *

21(c) Except as otherwise expressly provided, the purpose of
22this act is to prohibit the manufacture of and transactions in
23liquor, alcohol and malt or brewed beverages which take place in
24this Commonwealth, except by and under the [control] regulatory
25authority of the board as herein specifically provided, and
26every section and provision of the act shall be construed
27accordingly; to provide a structure in this Commonwealth for a
28distribution system, including the [establishment of
29Pennsylvania liquor stores and] licensing of wine and spirits
30wholesalers, wine and spirits retailers, importing distributors

1and distributors; and to preserve manufacturers of liquor and
2alcohol and malt and brewed beverages selling those products
3within this Commonwealth. The provisions of this act dealing
4with the manufacture, importation, sale, distribution and
5disposition of liquor, alcohol and malt or brewed beverages
6within the Commonwealth through [the instrumentality of the
7board,] licensees and otherwise, provide the means by which such
8control shall be made effective. This act shall not be construed
9as forbidding, affecting or regulating any transaction which is
10not subject to the legislative authority of this Commonwealth.

11(d) The provisions of this act are intended to create a
12system for distribution [that shall include the fixing of prices
13for] of liquor and alcohol and controls placed on [prices for]
14the sale and distribution of malt and brewed beverages, and each
15of which shall be construed as integral to the preservation of
16the system, without which system the Commonwealth's control of
17the sale of liquor and alcohol and malt and brewed beverages and
18the Commonwealth's promotion of its policy of temperance and
19responsible conduct with respect to alcoholic beverages would
20not be possible.

21* * *

22Section 3. Section 207 of the act, amended February 21, 2002
23(P.L.103, No.10), November 30, 2004 (P.L.1727, No.221) and
24December 8, 2004 (P.L.1810, No.239), is amended to read:

25Section 207. General Powers of Board.--Under this act, the
26board shall have the power and its duty shall be:

27(a) To buy, import or have in its possession for sale and
28sell liquor, alcohol, corkscrews, wine and liquor accessories,
29trade publications, gift cards, gift certificates, wine- or
30liquor-scented candles and wine glasses in the manner set forth

1in this act: Provided, however, That all purchases shall be made
2subject to the approval of the State Treasurer, or his
3designated deputy. The board shall buy liquor and alcohol at the
4lowest price and in the greatest variety reasonably obtainable.
5The board's authority to exercise the powers granted pursuant to
6this subsection is subject to the limitations set forth in
7Article III-A of this act.

8(b) To control the manufacture, possession, sale,
9consumption, importation, use, storage, transportation and
10delivery of liquor, alcohol and malt or brewed beverages in
11accordance with the provisions of this act, and to fix the
12wholesale and retail prices at which liquors and alcohol shall
13be sold at Pennsylvania Liquor Stores. Prices shall be
14proportional with prices paid by the board to its suppliers and
15shall reflect any advantage obtained through volume purchases by
16the board. The board may establish a preferential price
17structure for wines produced within this Commonwealth for the
18promotion of such wines, as long as the price structure is
19uniform within each class of wine purchased by the board. The
20board shall require each Pennsylvania manufacturer and each
21nonresident manufacturer of liquors, other than wine, selling
22such liquors to the board, which are not manufactured in this
23Commonwealth, to make application for and be granted a permit by
24the board before such liquors not manufactured in this
25Commonwealth shall be purchased from such manufacturer. Each
26such manufacturer shall pay for such permit a fee which, in the
27case of a manufacturer of this Commonwealth, shall be equal to
28that required to be paid, if any, by a manufacturer or
29wholesaler of the state, territory or country of origin of the
30liquors, for selling liquors manufactured in Pennsylvania, and

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

20[(c) To determine the municipalities within which
21Pennsylvania Liquor Stores shall be established and the
22locations of the stores within such municipalities.]

23(d) To grant and issue all licenses and to grant, issue,
24suspend and revoke all permits authorized to be issued under
25this act.

26(e) (1) Through the [Department of General Services]
27department as agent, to lease and furnish and equip such
28buildings, rooms and other accommodations as shall be required
29for the operation of this act.

30(2) The department shall not relocate a Pennsylvania Liquor

1Store after the effective date of this paragraph.

2(f) To appoint, fix the compensation and define the powers
3and duties of such managers, officers, inspectors, examiners,
4clerks and other employes as shall be required for the operation
5of this act, subject to the provisions of The Administrative
6Code of 1929 and the Civil Service Act.

7(g) To determine the nature, form and capacity of all
8packages and original containers to be used for containing
9liquor, alcohol or malt or brewed beverages.

10(h) Without in any way limiting or being limited by the
11foregoing, to do all such things and perform all such acts as
12are deemed necessary or advisable for the purpose of carrying
13into effect the provisions of this act and the regulations made
14thereunder.

15(i) From time to time, to make such regulations not
16inconsistent with this act as it may deem necessary for the
17efficient administration of this act. The board shall cause such
18regulations to be published and disseminated throughout the
19Commonwealth in such manner as it shall deem necessary and
20advisable or as may be provided by law. Such regulations adopted
21by the board shall have the same force as if they formed a part
22of this act.

23(j) By regulation, to provide for the use of a computerized
24referral system to assist consumers in locating special items at
25Pennsylvania Liquor Stores and for the use of electronic
26transfer of funds and credit cards for the purchase of liquor
27and alcohol at Pennsylvania Liquor Stores. The board's authority
28to exercise the powers granted pursuant to this subsection is
29subject to the limitations set forth in Article III-A of this
30act.

1(k) To issue grants to various entities for alcohol
2education and prevention efforts.

3(l) To close Pennsylvania Liquor Stores as directed under
4Article III-A of this act.

5(m) The board may implement a delivery system as a means of
6providing product to all licensees under this act.

7Section 4. The act is amended by adding a section to read:

8Section 207.1. Adjustment of Fees by Regulation.--(a)
9Notwithstanding any provision of this act or the act of April 9,
101929 (P.L.177, No.175), known as "The Administrative Code of
111929," to the contrary, all fees required under this act shall
12be fixed by the board by regulation and shall be subject to the
13act of June 25, 1982 (P.L.633, No.181), known as the "Regulatory
14Review Act."

15(b) The board shall be authorized to increase license fees
16by regulation under the following conditions:

17(1) If the revenues raised by the fees imposed under this
18act are not sufficient to meet all expenditures of the board
19over a two-year period, the board shall increase the fees by
20regulation, subject to the "Regulatory Review Act," so that the
21projected revenues will meet projected expenditures.

22(2) If the board determines that the fees established by the
23board under subsection (a) are inadequate to meet the minimum
24enforcement efforts required under this act, the board, after
25consultation with the enforcement bureau, and subject to the
26"Regulatory Review Act," shall increase the fees by regulation
27in an amount so that adequate revenues are raised to meet the
28required expenditures.

29(c) All acts or parts of acts are repealed insofar as they
30are inconsistent with this section.

1Section 5. Section 208 of the act is amended to read:

2Section 208. Specific Subjects on Which Board May Adopt
3Regulations.--Subject to the provisions of this act and without
4limiting the general power conferred by the preceding section,
5the board may make regulations regarding:

6[(a) The equipment and management of Pennsylvania Liquor
7Stores and warehouses in which liquor and alcohol are kept or
8sold, and the books and records to be kept therein.]

9(b) The duties and conduct of the officers and employes of
10the board.

11[(c) The purchase, as provided in this act, of liquor and
12alcohol, and its supply to Pennsylvania Liquor Stores.

13(d) The classes, varieties and brands of liquor and alcohol
14to be kept and sold in Pennsylvania Liquor Stores. In making
15this determination the board shall meet not less than twice a
16year.

17(e) The issuing and distribution of price lists for the
18various classes, varieties or brands of liquor and alcohol kept
19for sale by the board under this act.]

20(f) The labeling of liquor and alcohol sold under this act
21and of liquor and alcohol lawfully acquired by any person prior
22to January first, one thousand nine hundred thirty-four.

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

24(h) The issuance of licenses and permits and the conduct,
25management, sanitation and equipment of places licensed or
26included in permits.

27[(i) The place and manner of depositing the receipts of
28Pennsylvania Liquor Stores and the transmission of balances to
29the Treasury Department through the Department of Revenue.

30(j) The solicitation by resident or nonresident vendors of

1liquor from Pennsylvania licensees and other persons of orders
2for liquor to be sold through the Pennsylvania Liquor Stores
3and, in the case of nonresident vendors, the collection
4therefrom of license fees for such privilege at the same rate as
5provided herein for importers' licenses.]

6Section 5.1. Section 211(c) of the act, amended October 5,
71994 (P.L.537, No.80), is amended to read:

8Section 211. Enforcement.--* * *

9(c) The Pennsylvania State Police Commissioner shall assign
10State Police Officers to such [supervisory and other] capacities
11in the enforcement bureau as he deems necessary. All other
12personnel of the enforcement bureau shall be civilians.
13Notwithstanding any other provision of law, a State Police
14officer assigned to the enforcement bureau may not be counted
15against the complement of officers as prescribed in section 205
16of the act of April 9, 1929 (P.L.177, No.175), known as "The
17Administrative Code of 1929."

18* * *

19Section 6. Section 215 of the act, amended June 25, 2010
20(P.L.217, No.35), is repealed:

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

22(e) The board is authorized to participate in or sponsor
23wine and spirits events for the purpose of educating consumers
24as to the wines and spirits available in this Commonwealth. The
25wine and spirits to be used for the event may be acquired
26through the State store system or may be donated from outside
27this Commonwealth. Participation in the tastings may be
28conditioned on the purchase of a ticket to the event. The event
29may include events occurring on premises licensed by the board,
30and the board may sell wine and spirits for off-premises

1consumption in an area designated by the board for such sale.]

2Section 7. Section 301 of the act is amended to read:

3Section 301. Board to Establish State Liquor Stores.--(a)
4The board shall [establish,] operate and maintain at such places
5throughout the Commonwealth as it shall deem essential and
6advisable, stores to be known as "Pennsylvania Liquor Stores,"
7for the sale of liquor and alcohol in accordance with the
8provisions of and the regulations made under this act[; except
9that no store not so already located shall be located within
10three hundred feet of any elementary or secondary school, nor
11within a dry municipality without there first having been a
12referendum approving such location. When the board shall have
13determined upon the location of a liquor store in any
14municipality, it shall give notice of such location by public
15advertisement in two newspapers of general circulation. In
16cities of the first class, the location shall also be posted for
17a period of at least fifteen days following its determination by
18the board as required in section 403(g) of this act. The notice
19shall be posted in a conspicuous place on the outside of the
20premises in which the proposed store is to operate or, in the
21event that a new structure is to be built in a similarly visible
22location. If, within five days after the appearance of such
23advertisement, or of the last day upon which the notice was
24posted, fifteen or more taxpayers residing within a quarter of a
25mile of such location, or the City Solicitor of the city of the
26first class, shall file a protest with the court of common pleas
27of the county averring that the location is objectionable
28because of its proximity to a church, a school, or to private
29residences, the court shall forthwith hold a hearing affording
30an opportunity to the protestants and to the board to present

1evidence. The court shall render its decision immediately upon
2the conclusion of the testimony and from the decision there
3shall be no appeal. If the court shall determine that the
4proposed location is undesirable for the reasons set forth in
5the protest, the board shall abandon it and find another
6location. The board may establish, operate and maintain such
7establishments for storing and testing liquors as it shall deem
8expedient to carry out its powers and duties under this act],
9and subject to the limitations set forth in Article III-A of
10this act.

11(b) The board may lease the necessary premises for such
12stores or establishments, but all such leases shall be made
13through the [Department of General Services] department as agent
14of the board. The board, through the [Department of General
15Services] department, shall have authority to purchase such
16equipment and appointments as may be required in the operation
17of such stores or establishments.

18Section 7.1. Section 304 of the act, amended December 8, 
192004 (P.L.1810, No.239), is amended to read:

20Section 304. When Sales May Be Made at Pennsylvania Liquor
21Stores.--(a) Except as provided for in subsection (b), every
22Pennsylvania Liquor Store shall be open for business week days,
23except holidays as that term is defined in section 102. The
24board may, with the approval of the Governor, temporarily close
25any store in any municipality.

26(b) Certain Pennsylvania Liquor Stores operated by the board
27shall be open for Sunday retail sales between the hours of
28[noon] nine o'clock antemeridian and [five] nine o'clock
29postmeridian, except that no Sunday sales shall occur on Easter
30Sunday or Christmas day. The board shall open [up to twenty-five

1per centum of the total number of] Pennsylvania Liquor Stores at
2its discretion for Sunday sales as provided for in this
3subsection. The board shall submit yearly reports to the
4Appropriations and the Law and Justice Committees of the Senate
5and the Appropriations and the Liquor Control Committees of the
6House of Representatives summarizing the total dollar value of
7sales under this section.

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

13Section 305. Sales by Pennsylvania Liquor Stores.--(a) The
14board shall in its discretion determine where and what classes,
15varieties and brands of liquor and alcohol it shall make
16available to the public and where such liquor and alcohol will
17be sold. Every Pennsylvania Liquor Store shall be authorized to
18sell combination packages. If a person desires to purchase a
19class, variety or brand of liquor or alcohol not currently
20available from the board, he or she may place a special order
21for such item so long as the order is for two or more bottles.
22The board may require a reasonable deposit from the purchaser as
23a condition for accepting the order. The customer shall be
24notified immediately upon the arrival of the goods.

25In computing the retail price of such special orders for
26liquor or alcohol, the board shall not include the cost of
27freight or shipping before applying the mark-up and taxes but
28shall add the freight or shipping charges to the price after the
29mark-up and taxes have been applied.

30Unless the customer pays for and accepts delivery of any such

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

4During the retail divestiture process as provided in Article
5III-A, the board shall continue to take and process special
6liquor orders for residents and licensees of the board, and may
7establish a protocol by which pre-paid orders may be picked up
8at either a Pennsylvania Liquor Store or from the licensed
9premises of a wine and spirits retail licensee. A wine and
10spirits retail licensee is authorized to assess a handling fee
11for this purpose. Any product not claimed at a wine and spirits
12retail store by the purchaser shall be returned to the board
13after ten days notice of arrival was sent to the purchaser.

14(b) [Every] Until the wholesale divestiture process as
15provided in Article III-A is complete, every Pennsylvania Liquor
16Store shall sell liquors at wholesale to wine and spirits retail
17licensees, grocery stores, hotels, restaurants, clubs, and
18railroad, pullman and steamship companies licensed under this
19act; and, under the regulations of the board, to pharmacists
20duly licensed and registered under the laws of the Commonwealth,
21and to manufacturing pharmacists, and to reputable hospitals
22approved by the board, or chemists. Sales to licensees shall be
23made at a price that includes a discount of [ten] fourteen per
24centum from the retail price. The board may sell to registered
25pharmacists only such liquors as conform to the Pharmacopoeia of
26the United States, the National Formulary, or the American
27Homeopathic Pharmacopoeia. The board may sell at special prices
28under the regulations of the board, to United States Armed
29Forces facilities which are located on United States Armed
30Forces installations and are conducted pursuant to the authority

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

12(c) Whenever any checks issued in payment of liquor or
13alcohol purchased from State Liquor Stores by persons holding
14wholesale purchase permit cards issued by the board shall be
15returned to the board as dishonored, the board shall charge a
16fee of five dollars per hundred dollars or fractional part
17thereof, plus all protest fees, to the maker of such check
18submitted to the board. Failure to pay the face amount of the
19check in full and all charges thereon as herein required within
20ten days after demand has been made by the board upon the maker
21of the check shall be cause for revocation or suspension of any
22license issued by the board to the person who issued such check
23and the cancellation of the wholesale purchase permit card held
24by such person.

25(d) No liquor or alcohol package shall be opened on the
26premises of a Pennsylvania Liquor Store. No manager or other
27employe of the board employed in a Pennsylvania Liquor Store
28shall allow any liquor or alcohol to be consumed on the store
29premises, nor shall any person consume any liquor or alcohol on
30such premises, except liquor and alcohol which is part of a

1tasting conducted pursuant to the board's regulations. Such
2tastings may also be conducted in the board's headquarters or
3regional offices.

4(e) The board may sell tax exempt alcohol to the
5Commonwealth of Pennsylvania and to persons to whom the board
6shall, by regulation to be promulgated by it, issue special
7permits for the purchase of such tax exempt alcohol.

8Such permits may be issued to the United States or any
9governmental agency thereof, to any university or college of
10learning, any laboratory for use exclusively in scientific
11research, any hospital, sanitorium, eleemosynary institution or
12dispensary; to physicians, dentists, veterinarians and
13pharmacists duly licensed and registered under the laws of the
14Commonwealth of Pennsylvania; to manufacturing chemists and
15pharmacists or other persons for use in the manufacture or
16compounding of preparations unfit for beverage purposes.

17(f) Every purchaser of liquor, alcohol, corkscrews, wine or
18liquor accessories, trade publications, gift cards, gift
19certificates, wine- or liquor-scented candles or wine glasses
20from a Pennsylvania Liquor Store shall receive a numbered
21receipt which shall show the price paid therefor and such other
22information as the board may prescribe. Copies of all receipts
23issued by a Pennsylvania Liquor Store shall be retained by and
24shall form part of the records of such store.

25[(g) The board is hereby authorized and empowered to adopt
26and enforce appropriate rules and regulations to insure the
27equitable wholesale and retail sale and distribution, through
28the Pennsylvania Liquor Stores, of available liquor and alcohol
29at any time when the demand therefor is greater than the
30supply.]

1(h) Every Pennsylvania Liquor Store shall sell gift
2certificates and gift cards which may be redeemed for any
3product sold by the board. In addition, the board may sell
4corkscrews, wine and liquor accessories, wine- or liquor-scented
5candles, trade publications and wine sleeves at Pennsylvania
6Liquor Stores.

7(i) Notwithstanding any other provision of law to the
8contrary, the board may sell wine in containers having a
9capacity of sixty liters or less.

10Section 9. The act is amended by adding an article to read:

11ARTICLE III-A

12WINE AND SPIRITS DISTRIBUTION

13SUBARTICLE A

14GENERAL PROVISIONS

15Section 301-A. Scope of article.

16This article relates to the privatization of liquor
17distribution in this Commonwealth.

18Section 302-A. Legislative intent.

19The General Assembly finds and declares as follows:

20(1) The wholesale and retail of liquor should no longer
21be by the Commonwealth, but rather by private persons
22licensed and regulated by the Commonwealth.

23(2) The health and welfare of the citizens of this
24Commonwealth will be adequately protected by the regulation
25of private licensees through strict enforcement of laws and
26rules relating to the purchase and sale of liquor.

27(3) The sale of liquor through wholesale and retail
28licensees will provide residents with improved customer
29convenience, and will provide an opportunity for competitive
30pricing and enhanced product selection.

1(4) Modernization of the retail sale of wine and spirits
2through new outlets for consumption off the premises will
3further enhance customer convenience.

4(5) This article will improve operation and efficiency
5of State government.

6(6) The authorization of wine and spirits wholesale and
7retail licenses is intended to continue the generation of
8revenue to the Commonwealth related to the wholesale and
9retail sale of liquor.

10(7) The transition to a privately-owned and privately-
11operated wholesale and retail liquor distribution system
12should be accomplished in a manner that protects the public
13through regulation and policing of all activities involved in
14the wholesale and retail sale of liquor.

15(8) The establishment of wine and spirits wholesale and
16retail licenses is intended to provide broad economic
17opportunities to the citizens of this Commonwealth and to be
18implemented in such a manner as to prevent monopolization by
19establishing reasonable restrictions on the control of
20wholesale and retail licensees.

21(9) The transition to a privately-owned and privately-
22operated wholesale and retail liquor distribution system
23should be accomplished in a manner that minimizes disruption
24of services to the public.

25(10) In conjunction with the transition to privately-
26owned and privately-operated liquor wholesalers and retail
27liquor stores, this article is intended to modernize the
28retail sale of wine and spirits through new outlets for
29consumption off the premises, further enhancing customer
30convenience.

1(11) With the transition to a privately-owned and
2privately-operated wholesale and retail liquor distribution
3system, and with the addition of new licensing
4classifications, it is necessary to enhance alcohol education
5and enforcement efforts to:

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

7(ii) prevent and combat the illegal consumption of
8alcohol by minors and visibly intoxicated persons; and

9(iii) discourage the intemperate use of alcohol.

10(12) Participation in the wholesale and retail sale of
11liquor by a wholesale or retail licensee is a privilege,
12conditioned upon the proper and continued qualification of
13the licensee and upon the discharge of the affirmative
14responsibility of the licensee to provide the department and
15the board with assistance and information necessary to assure
16that the policies declared by this article are achieved.

17Section 303-A. Transition to private distribution system,
18powers and duties of the department and the board.

19(a) Orderly transition.--The department and the board have
20the power and duty to implement this article and effect an
21orderly transition to a privately-owned and privately-operated
22wholesale and retail liquor distribution system in this
23Commonwealth in a manner which is consistent with this article
24and the laws of this Commonwealth and which seeks to maintain
25uninterrupted service to the public.

26(b) Retail transition.--

27(1) The board, in consultation with the department, 
28shall have the authority to issue wine and spirits retail 
29licenses and wine and spirits wholesale licenses, provided 
30that the wine and spirits wholesale licenses are not issued
 

1until one year after the effective date of this section. The 
2department shall contract with financial, legal and other 
3advisors as are necessary to assist the department and the 
4board in effectuating the addition of this article. Such 
5contracts shall not be subject to the provisions of 62 
6Pa.C.S. Ch. 5 (relating to source selection and contract 
7formation).

8(2) The divestiture of the board's retail operations
9shall be accomplished through the issuance of 1,200 wine and
10spirits retail licenses that shall be allocated by county.
11As the State liquor stores wind down operations, six hundred 
12wine and spirits retail licenses may be issued by the board 
13which shall be allocated by county. The additional licenses 
14shall be issued if the department determines, in cooperation 
15with the board, that the retail licenses are necessary for 
16consumer convenience. After the determination, the retail 
17licenses shall be issued first to distributor licensees and 
18then on a first-come, first-served basis. Each successful
19applicant shall be thoroughly investigated to determine
20whether the person is a reputable and responsible person
21suitable to be licensed to sell liquor in this Commonwealth.

22(3) As licenses are awarded in a given county, the board 
23shall determine the necessity of winding down operations in 
24State stores in the county and, as it becomes necessary,
25terminate applicable lease agreements, redistribute or
26furlough store personnel and dispose of remaining inventory
27and store property.

28(c) Wholesale transition.--

29(1) Twelve months after the effective date of this 
30section, in consultation with its advisors and the board, the

1department shall transition the board's wholesale
2distribution of liquor to privately-owned and privately-
3operated wholesale licensees.

4(2) The divestiture of the board's wholesale operations
5shall be accomplished through the issuance of wine and
6spirits wholesale licenses by brand of liquor, which shall be
7subject to an application process as set forth in this
8article. The transition must fully divest the board of all
9operations relating to the wholesale distribution of liquor
10within six months of the commencement of wholesale 
11divestiture.

12(d) Cooperation required.--

13(1) The board shall fully cooperate with the department
14or its advisors in all aspects of implementation of this
15article and shall provide the department or its consultant
16with all records and information in the possession of the
17board upon request.

18(2) The board shall devote sufficient resources to
19planning and preparation for the divestiture of its wholesale
20and retail functions.

21(3) The board shall use its best efforts in coordinating
22with the department or its advisors, wine and spirits retail
23licensees and wine and spirits wholesale licensees so as to
24maintain uninterrupted service to the residents of this
25Commonwealth during divestiture.

26(e) Prohibition.--The board shall not engage in wholesale
27distribution of liquor following completion of the wholesale
28transition to a private distribution system.

29Section 304-A. Reports to the General Assembly.

30One year after the effective date of this section, and each

1year thereafter until the board has been fully divested of its
2wholesale and retail operations, the board, in cooperation with
3the department, shall submit to the Secretary of the Senate and
4the Chief Clerk of the House of Representatives, a report on
5wholesale and retail alcohol sales in this Commonwealth and the
6implementation of this article, including:

7(1) the total revenue earned by the issuance of licenses
8under this article;

9(2) the distribution and sale of brands through private
10wholesalers;

11(3) the net profit or loss of each wine and spirits
12retail licensed premise and State liquor store in this
13Commonwealth; and

14(4) the status of the ongoing transition, including
15store closures and employee displacement.

16Section 305-A. Temporary regulations.

17(a) Promulgation.--In order to facilitate the prompt
18implementation of this article, regulations promulgated by the
19department shall be deemed temporary regulations which shall
20expire no later than five years following the effective date of
21this section. The department may promulgate temporary
22regulations not subject to:

23(1) sections 201, 202 and 203 of the act of July 31,
241968 (P.L.769, No.240), referred to as the Commonwealth
25Documents Law; or

26(2) the act of June 25, 1982 (P.L.633, No.181), known as
27the Regulatory Review Act.

28(b) Expiration.--The authority provided to the department to
29adopt temporary regulations under subsection (a) shall expire on
30January 1, 2018.

1SUBARTICLE B

2WINE AND SPIRITS RETAIL LICENSES

3Section 311-A. Issuance of wine and spirits retail licenses,
4fees, taxes.

5(a) Sale of retail licenses.--The board may award not more
6than 1,200 wine and spirits retail licenses to qualified
7applicants, provided that when the State stores close in a given
8county because the wine and spirits retail licenses have
9commenced operation, the department, in cooperation with the
10board, shall determine if it is necessary to issue additional
11wine and spirits retail licenses for customer convenience and
12access. If the department determines more wine and spirits
13retail licenses are needed, the department may authorize the
14board to issue not more than 600 additional wine and spirits
15retail licenses.

16(b) License classification.--Wine and spirits retail
17licenses shall be awarded as follows:

18(1) For the first 12 months after the enactment of this
19section, the board shall receive applications from
20distributor licensees licensed under section 431. A
21distributor licensee applying for a wine and spirits retail
22license must operate out of a facility with a minimum of
231,500 square feet of retail space and dedicate a minimum of
2450% of shelf space for the sale of malt and brewed beverages.

25(2) At the conclusion of the 12-month period under
26paragraph (1), the board may issue the remaining wine and
27spirits retail licenses on a first-come, first-served basis.
28A private wine and spirits retail licensee must operate in a
29facility with not less than 1,500 square feet of retail
30space.

1(c) License allocation.--

2(1) The board, in consultation with the department and
3its advisors, shall allocate the aggregate number of wine and
4spirits retail licenses to be available in each county.

5(2) A county may not be allocated fewer wine and spirits
6retail licenses than the number of licensed distributors in
7the county provided that the wine and spirits retail licenses
8shall be evenly distributed throughout the county on a per
9capita basis.

10(3) A wine and spirits retail licensee may determine
11whether it will sell wine or spirits or both. If a wine and
12spirits retail licensee elects to sell either wine or
13spirits, the board shall consider that one wine and spirits
14retail license and only the licensee will have the ability to
15pay an additional fee in the future to sell both wine and
16spirits.

17(d) License application.--An applicant for a wine and
18spirits retail license shall file a written application with the
19board in the form and containing the information as the board
20shall prescribe from time to time, which must be accompanied by
21a filing fee and license fee as prescribed under subsection (f).
22An application must contain:

23(1) a description of the part of the premises for which
24the applicant desires a license;

25(2) whether the applicant desires to sell wine, spirits
26or both on the licensed premises. Notwithstanding any other
27provision of this act, an applicant that chooses to sell wine
28or spirits may make application at a later date to the board
29to sell both products and be granted that authority after
30paying the proper fees; and

1(3) other information that the board may prescribe.

2The board may not require physical alterations, improvements or
3changes to the licensed premises until the wine and spirits
4license application has been approved.

5(e) Other licenses.--Nothing in this act shall prohibit a
6wine and spirits retail licensee from receiving:

7(1) a distributor license under section 431 that
8authorizes the licensee to sell malt and brewed beverages for
9consumption off the premises;

10(2) a restaurant liquor license or a retail dispenser
11license as long as the restaurant or retail dispenser does
12not have an interior connection to or with the wine and 
13spirits retail licensed premises; or

14(3) an importing distributor license under section 431
15that authorizes the licensee to sell malt or brewed beverages
16at wholesale so long as the importing distributor does not
17obtain a wine and spirits wholesale license.

18(f) License fees.--The fees for a wine and spirits retail
19license are as follows:

20(1) For a distributor licensed under section 431 making
21application for a wine and spirits retail license:

22(i) For the privilege of selling wine, the board
23shall require the following fees:

24(A) For a county of the first or second class,
25$30,000.

26(B) For a county of the second class A or third
27class, $37,500.

28(C) For a county of the fourth or fifth class,
29$22,500.

30(D) For a county of the sixth or seventh class,

1$15,000.

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

3(ii) For the privilege of selling spirits, the board
4shall require the following fees:

5(A) For a county of the first or second class,
6$52,500.

7(B) For a county of the second class A or third
8class, $60,000.

9(C) For a county of the fourth or fifth class,
10$45,000.

11(D) For a county of the sixth or seventh class,
12$37,500.

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

14(iii) For the privilege of selling both wine and
15spirits, the board shall require a fee equal to the sum
16of the fees listed above by county. Nothing in this act
17shall prevent a licensee who initially makes application
18to sell either wine or spirits from adding the other
19product at a later date so long as application is made to
20the board and the proper fees are paid.

21(2) For an unlicensed entity making application for a
22wine and spirits retail license:

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

25(A) For a county of the first or second class,
26$165,000.

27(B) For a county of the second class A or third
28class, $187,500.

29(C) For a county of the fourth or fifth class,
30$142,500.

1(D) For a county of the sixth or seventh class,
2$120,000.

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

4(ii) For the privilege of selling spirits, the board
5shall require the following fees:

6(A) For a county of the first or second class,
7$232,500.

8(B) For a county of the second class A or third
9class, $262,500.

10(C) For a county of the fourth or fifth class,
11$202,500.

12(D) For a county of the sixth or seventh class,
13$172,500.

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

15(iii) For the privilege of selling both wine and
16spirits, the board shall require a fee equal to the sum
17of the fees listed above by county. Nothing in this act
18shall prevent a licensee who initially makes application
19to sell either wine or spirits from adding the other
20product at a later date so long as application is made to
21the board and the proper fees are paid.

22(3) A restaurant or hotel licensee in good standing that
23applies for a retail wine and spirits license shall pay the
24same amount for the license as a distributor.

25(4) The board may not require a distributor making
26application for a wine and spirits retail license to pay the
27fees in full prior to issuance of the license. A distributor
28making application for a wine and spirits license has 48
29months from the issuance of the license to pay to the board
30the licensing fees plus a fee of 5%. If the licensee fails to

1make a payment to the board on a monthly basis, the board
2shall revoke the wine and spirits retail license and offer it
3on a first-come, first-served basis.

4Section 312-A. Postqualification of selected applicants.

5(a) Investigation.--Upon selection of an applicant under
6section 303-A, the Bureau of Licensing of the board shall
7conduct an investigation of an applicant based upon the
8information submitted to evaluate whether:

9(1) the applicant qualifies as a reputable, responsible
10and suitable person to hold a wine and spirits retail license
11and operate a wine and spirits store;

12(2) the applicant proposes an acceptable facility and
13location for a wine and spirits store; and

14(3) the planned operation of the applicant complies with
15this article.

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

17(1) require additional information from an applicant;
18and

19(2) conduct onsite inspections, as necessary, to
20complete the postqualification process.

21(c) Agreement.--The board may enter into an agreement with
22the Pennsylvania State Police or the Office of Inspector General
23to:

24(1) assist the board in the conduct of an investigation
25under this section; and

26(2) provide for the reimbursement of a cost incurred for
27providing assistance.

28(d) Protocol for objections.--The board shall establish
29protocol for receiving written objections from residents,
30churches, hospitals, charitable institutions, schools and public

1playgrounds that are located near a proposed wine and spirits
2store location. The board may consider a written objection in
3the postqualification investigation of applicants. An objector
4under this paragraph may not appeal the decision of the board.

5(e) Investigative fee.--The board may charge a fee to an
6applicant to recover the costs directly related to the board's
7investigation within the postqualification process.

8(f) Acceptance of qualifications.--The qualifications of an
9applicant shall be accepted by the board if the investigation by
10the board reveals the following:

11(1) the applicant and its officers, directors and
12principals, if any, are of good repute, responsible and
13suitable for operating a wine and spirits store; and

14(2) the applicant possesses sufficient financial
15resources to:

16(i) operate a wine and spirits store;

17(ii) pay taxes due; and

18(iii) meet financial obligations;

19(3) the applicant possesses sufficient business
20experience to operate a wine and spirits store;

21(4) the proposed facilities comply with the operational
22requirements of the statement of conditions under this
23article; and

24(5) the proposed location within the community is
25suitable.

26(g) Issuance of license.--If a selected applicant's
27qualifications are accepted by the board, the board shall
28qualify the applicant and issue a wine and spirits retail
29license to the applicant upon the occurrence of the following:

30(1) execution and delivery to the board of the statement

1of conditions required under section 313-A;

2(2) payment of the license fee by certified check or
3wire transfer to a designated restricted account established
4in the State Stores Fund. A distributor licensed under
5section 431 that obtains a wine and spirits retail license
6has 48 months to pay the license fee;

7(3) payment of an outstanding investigation fee; and

8(4) fulfillment of other conditions required by the
9board.

10(h) Approval of qualifications.--If the qualifications of
11the applicant are approved by the board under subsection (f),
12the board shall issue a wine and spirits retail license to the
13successful applicant consistent with the requirements of
14subsection (g).

15(i) License not entitlement.--

16(1) This article is not intended to establish an
17entitlement to a wine and spirits retail license. A wine and
18spirits retail license is a privilege between the board and
19the licensee.

20(2) Between the licensee and a third party, a wine and
21spirits retail license is property.

22(j) Terms of licensure.--

23(1) A wine and spirits retail license is in effect
24unless the board:

25(i) revokes, suspends or fails to renew the license;
26or

27(ii) revokes the operating authority of the licensee
28under the license requirements of this article.

29(2) A wine and spirits retail license is subject to
30renewal every two years consistent with this article.

1(3) This subsection does not relieve a wine and spirits
2retail licensee of the affirmative duty to notify the board
3of a change relating to the status of its license or to other
4information contained in the application materials on file
5with the board.

6Section 313-A. Wine and spirits retail licensee statement of
7conditions.

8(a) Statement of conditions.--The board shall develop a
9statement of conditions to be executed by a wine and spirits
10retail licensee governing the operations of the wine and spirits
11licensee.

12(b) Conditions.--In addition to other conditions the board
13deems necessary or appropriate for a specific wine and spirits
14retail licensee, a statement of conditions under this section
15shall include, at a minimum, the following conditions and impose
16the following obligations and requirements:

17(1) Under section 493.2, a wine and spirits retail
18licensee may not sell or distribute liquor to an individual
19under 21 years of age or to an individual who is visibly
20intoxicated.

21(2) A wine and spirits retail licensee may not operate a
22retail wine and spirits store located within:

23(i) three hundred feet of an elementary or secondary
24school without the approval of the department or board;
25or

26(ii) a municipality that voted to preclude the
27establishment of a State liquor store, unless the
28municipality subsequently votes to permit the board to
29issue a wine and spirits retail license.

30(3) A wine and spirits retail licensee's wine and

1spirits store and the facilities involved in its retail
2operations, including a change to the facilities during the
3term of the license, are subject to:

4(i) inspection and investigation by the board and
5enforcement bureau; and

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

7(4) A wine and spirits retail licensee shall maintain
8adequate security to protect the licensee's inventory from
9unauthorized sale or diversion and prevent its unauthorized
10distribution.

11(5) Unless specifically authorized in this act or with
12the prior approval of the board, a wine and spirits retail
13licensee may not engage in a separate business activity upon
14a licensed premises where retail liquor operations are
15conducted.

16(6) A wine and spirits retail licensee shall notify the
17board within 15 days of a change in persons holding an
18interest in the wine and spirits license.

19(7) A wine and spirits retail licensee shall notify the
20board within 15 days of becoming aware of an arrest, criminal
21indictment or conviction by the following:

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

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

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

25(iv) if the licensee is a corporation, an officer, a
26director or a shareholder in the corporation; and

27(v) an affiliate of the licensee.

28(8) A wine and spirits retail licensee shall notify the
29board within 15 days of becoming aware of a violation of this
30article by an individual listed in paragraph (7).

1(9) The premises of a wine and spirits store must be a
2self-contained unit with limited customer access dedicated to
3the sale of liquor and related merchandise. Except for a
4licensee that also holds a distributor license, a wine and
5spirits store may not have an interior connection with
6another business or with a residential building except as
7approved by the board. A purchase of wine and spirits must be
8paid for at a location within the confines of the licensed
9premises.

10(10) A wine and spirits retail licensee shall configure
11its premises in a manner and with adequate safeguards to
12ensure that:

13(i) liquor products are secure; and

14(ii) the licensed area may not be accessed during
15prohibited hours of operation.

16(11) A wine and spirits retail licensee may not hold,
17directly or indirectly, more than five wine and spirits
18retail locations within this Commonwealth or more than one
19wine and spirits retail license within a county.

20(12) A wine and spirits store may sell liquor for
21consumption off the premises and related merchandise within
22the licensed area of the store. A sale of related merchandise
23within the licensed area may not exceed 30% of the gross
24annual sales of a wine and spirits store. Unless the wine and
25spirits retail licensee operates another license that
26authorizes the sale of malt and brewed beverages for
27consumption off the premises in the same licensed area, a
28wine and spirits store may not sell malt or brewed beverages
29within its licensed premises.

30(13) A wine and spirits retail licensee shall make the

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

8(14) A wine and spirits retail licensee may sell wine or
9spirits between 9 a.m. and 11 p.m. of any day except Sunday
10to a person that is not licensed under this act.

11(15) In addition to the hours authorized under paragraph
12(14), a wine and spirits retail licensee may, upon purchasing
13a permit from the board at an annual fee of $1,000, sell wine
14or spirits on Sunday between the hours of 9 a.m. and 9 p.m.
15to persons not licensed under this act.

16(16) A wine and spirits retail licensee may not employ
17an individual under 18 years of age to work on the licensed
18premises. An employee of a wine and spirits retail licensee
19under 21 years of age may not engage in the sale of liquor.

20(17) A wine and spirits retail licensee that is a
21corporation, a limited liability company, a limited
22partnership, a partnership, an association or other legal
23entity must be organized under the laws of this Commonwealth.

24(18) A wine and spirits retail licensee who is an
25individual must be a citizen of the United States and a
26resident of this Commonwealth.

27(19) A wine and spirits retail licensee shall:

28(i) comply with the responsible alcohol management
29program training under section 471.1; and

30(ii) ensure that the wine and spirits store managers

1and employees who may engage in the sale of liquor attend
2the responsible alcohol management training within six
3months of commencing employment.

4(20) A wine and spirits retail licensee may place its
5license in safekeeping for a period not to exceed two years:

6(i) pending transfer of the license from person-to-
7person or place-to-place or both; or

8(ii) during renovation of the premises where retail
9operations are conducted.

10(21) A wine and spirits retail license that remains in
11safekeeping for a period that exceeds two years shall be
12forfeited and resold by the board in a manner consistent with
13this subarticle.

14(22) Except as set forth in paragraph (16), an
15individual under 21 years of age may not enter the licensed
16area of a wine and spirits retail licensee unless accompanied
17by an adult.

18(23) A wine and spirits retail licensee shall utilize a
19transaction scan device to verify the age of an individual
20who appears to be under 35 years of age before making a sale
21of liquor. A wine and spirits retail licensee may not sell or
22share data from the use of a transaction scan device provided
23that the licensee may use the data to show the board or
24enforcement bureau that the licensee is in compliance with
25this article. As used in this paragraph, the term
26"transaction scan device" means a device capable of
27deciphering, in an electronically readable format, the
28information encoded on the magnetic strip or bar code of an
29identification card under section 495(a).

30(24) A wine and spirits retail licensee may not sell a

1liquor product at a price less than its underlying cost.

2(25) A wine and spirits retail licensee may not provide
3tasting samples of liquor on the premises where retail
4operations are conducted except in the manner set forth in
5the board's regulations related to tasting samples provided
6by sponsors.

7(26) A wine and spirits retail licensee may not require
8a customer to purchase a membership or pay a fee in order to
9purchase products, including wine and spirits, from the
10premises.

11(27) In an inquiry or investigation by the board or the
12enforcement bureau, a wine and spirits retail licensee shall
13cooperate fully and provide requested information.

14(c) Sanctions.--

15(1) A wine and spirits retail licensee that fails to
16abide by a condition contained in the licensee's statement of 
17conditions or commits a violation of this act or other
18Federal or State law is subject to citation by the
19enforcement bureau.

20(2) A citation under paragraph (1) may result in:

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

22(ii) nonrenewal of a license;

23(iii) revocation of operating authority; or

24(iv) another penalty authorized under sections 471
25and 494.

26SUBARTICLE C

27DIVESTITURE OF WHOLESALE LIQUOR DISTRIBUTION

28Section 321-A. Wholesale divestiture.

29(a) Utilization.--In effectuating the intent of this
30article, the department shall utilize the authority provided

1under section 305-A and any other powers of the department, with
2the full cooperation and assistance of the board.

3(b) Establishment.--On the effective date of this section,
4the department shall establish all of the following:

5(1) An application process and schedule for the
6investigation and award of wine and spirits wholesale
7licenses under this article.

8(2) A blended brand valuation for each brand of liquor
9available for sale in this Commonwealth.

10(3) Procedures and standards governing the relationship
11between wine and spirits wholesale licensees and
12manufacturers and the ability and terms upon which that
13relationship may be terminated.

14(c) Coordination.--

15(1) The department shall:

16(i) coordinate scheduling so that wine and spirits
17wholesale license applications may be received, processed
18and investigated by the board's Bureau of Licensing
19during the retail divestiture process; and

20(ii) begin a coordinated effort to allow the board
21to issue licenses 12 months from the effective date of 
22this section.

23(2) The department must fully divest the board of all
24operations relating to the wholesale distribution of liquor
25within six months of commencing wholesale divestiture.

26Section 321.1-A. Issuance of wine and spirits wholesale
27licenses.

28(a) Authorization.--The board may issue wine and spirits
29wholesale licenses under the following conditions:

30(1) The following shall apply:

1(i) One wine and spirits wholesale license may be
2issued by the board to each qualified applicant.

3(ii) A wine and spirits wholesale license shall
4authorize the holder to sell and distribute brands of
5liquor, as proposed by an applicant and approved by the
6department, to wine and spirits retail licensees and
7other licensees of the board authorized to sell or
8distribute liquor under this act, to United States Armed
9Forces facilities located on United States Armed Forces
10installations within this Commonwealth and to the holder
11of a wholesale alcohol purchase permit issued by the
12board.

13(iii) The alcoholic products shipped into this 
14Commonwealth must be delivered to the wholesaler's 
15licensed premises. Upon delivery, the products shall be 
16unloaded, inventoried and remain on the licensed premises 
17for 48 hours before delivery is made to a retailer. 
18During that time period, the board may inspect and 
19inventory wholesale warehouses to verify taxes that are 
20required to be paid on the products.

21(2) Subject to the conditions and restrictions of this
22subarticle, wine and spirits wholesale licensees may sell and
23distribute more than one brand of liquor under the same wine
24and spirits wholesale license.

25(3) Upon application by a wine and spirits wholesale
26licensee, the board may amend its initial authorization under
27a wine and spirits wholesale license to include additional
28brands of liquor or exclude previously-approved brands of
29liquor.

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

1(1) On the effective date of this section, the
2department shall determine the wine and spirits wholesale
3license fee for each brand of liquor sold at wholesale by the
4board through its State liquor stores or via special liquor
5order for a continuous period of at least one year. The
6license fee shall be equal to the blended brand valuation for
7each brand of liquor authorized by the wine and spirits
8wholesale license multiplied by the wholesale acquisition
9factor.

10(2) The department shall publish a notice on its
11Internet website of the wine and spirits wholesale license
12fee for each brand of liquor determined under paragraph (1).
13The department shall establish deadlines within which an
14applicant must submit an application for a wine and spirits
15wholesale license for the brands of liquor specified by the
16applicant.

17(3) The department must receive the required license fee
18for the brands of liquor specified by the applicant before a
19wine and spirits wholesale license is issued by the board to
20a successful applicant.

21(c) Brands not previously sold.--

22(1) For brands of liquor that have not been sold by the
23board at State liquor stores or via special liquor order for
24a continuous period of at least one year, the department
25shall calculate the blended brand valuation utilizing sales
26data for any portion of the year that the brand was sold in
27this Commonwealth, after consulting with the board on the
28most recent sales trends of the brand, both within and
29outside this Commonwealth.

30(2) If, during the term of a wine and spirits wholesale

1license, a wine and spirits wholesale licensee proposes to
2sell and distribute a new brand of liquor not previously sold
3in this Commonwealth, the wine and spirits wholesale licensee
4shall apply to the board for permission to sell the brand and
5pay an additional license fee determined in accordance with
6this section. In calculating the blended brand valuation for
7the new products, the board shall evaluate available sales
8data in other markets or sales trends of similar products
9either within or outside this Commonwealth.

10(d) Term.--

11(1) A wine and spirits wholesale license, after payment
12of the required license fee, shall be in effect unless
13suspended, revoked or not renewed under this article.

14(2) The license of a wine and spirits wholesale licensee
15in good standing shall be renewed every two years under this
16article.

17(3) Nothing under this subsection shall be construed to
18relieve a wine and spirits wholesale licensee of the
19affirmative duty to notify the board of changes relating to
20any of the following:

21(i) The status of its license.

22(ii) Information contained in the application
23materials on file with the department or the board.

24Section 322-A. Application for wine and spirits wholesale
25license.

26(a) Applications.--An application for a wine and spirits
27wholesale license shall be submitted on a form and in a manner
28as required by the board.

29(b) Eligibility.--A person may be eligible to apply for a
30wine and spirits wholesale license if the person satisfies all

1of the following:

2(1) Neither the applicant nor any affiliate of the
3applicant has applied for or holds a wine and spirits retail
4license or other license which authorizes the retail sale of
5wine and spirits to consumers.

6(2) The applicant is organized under the laws of this
7Commonwealth if it is any of the following:

8(i) A corporation.

9(ii) A limited liability company.

10(iii) A limited partnership.

11(iv) A partnership.

12(v) An association.

13(vi) A legal entity other than a legal entity listed
14under this paragraph.

15(3) The applicant is a citizen of the United States and
16a resident of this Commonwealth if that applicant is a
17natural person.

18(4) Neither the applicant nor any affiliate of the
19applicant, executive officer, director or general or limited
20partner of the applicant or person holding, directly or
21indirectly, a controlling interest in the applicant has been
22convicted of a crime listed under subsection (d)(10).

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

24(1) A properly licensed importing distributor of malt
25and brewed beverages from applying for and, if approved,
26being issued a wine and spirits wholesale license.

27(2) The holder of a limited winery license, a limited
28distillery license or a distillery license issued by the
29board from acquiring a wine and spirits wholesale license.

30(d) General requirements.--In addition to any other

1information required under this article or by the department or
2the board, the applicant for a wine and spirits wholesale
3license shall include the following:

4(1) The name, address and tax identification number of
5the applicant.

6(2) A statement as to whether the applicant is an
7individual, corporation, limited liability company, limited
8partnership, partnership or association and, if the applicant
9is not an individual, the state of incorporation or
10organization.

11(3) If the applicant is not an individual, the name and
12residence address of each executive officer, director,
13general or limited partner or person holding a controlling
14interest in the applicant.

15(4) If the applicant is an association, the name and
16residence address of each person constituting the
17association.

18(5) A list of the brands of liquor the applicant
19proposes to engage in wholesale distribution on a Statewide
20basis.

21(6) A sworn statement that the applicant has entered
22into a contractual relationship with one or more liquor
23manufacturers, importers or vendors of record for the
24distribution in this Commonwealth of a brand or brands of
25liquor, regardless of whether the contractual relationship is
26contingent upon the board issuing a wine and spirits
27wholesale license to the applicant.

28(7) The proposed location and proof of ownership or
29lease for the wholesale operation, including proposed
30warehouses, if available.

1(8) Floor plans for any facility proposed to be used in
2wholesale operations and existing design plans for any
3facility that is planned, but not yet constructed, to the
4extent the floor plans are available.

5(9) Information disclosing all arrests of and all
6citations issued for nonsummary offenses to an applicant and
7any affiliate of the applicant, executive officer, director
8or general or limited partner of the applicant or person
9holding a controlling interest in the applicant. The
10information shall include:

11(i) A brief description of the circumstances
12surrounding the arrest or issuance of the citation.

13(ii) The specific offense charged or cited.

14(iii) The ultimate disposition of the charge or
15citation, including the details of a dismissal, plea
16bargain, conviction, sentence, pardon, expungement or
17order of Accelerated Rehabilitative Disposition.

18(10) A sworn statement that the applicant and any
19affiliate of the applicant, or any executive officer,
20director or general or limited partner of the applicant or
21person holding a controlling interest in the applicant have
22never been convicted:

23(i) of a crime involving fraud, moral turpitude or
24racketeering within a period of ten years immediately
25preceding the date of the application;

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

27(iii) in a Federal or state tribunal, including this
28Commonwealth, of the violation of a Federal or state
29liquor law.

30(11) A statement that the applicant intends to

1continuously operate as a wine and spirits wholesale licensee
2for the duration of the license term and to use its best
3efforts to provide a level of service, including product
4availability, reasonably equivalent to the level of service
5currently provided by the Commonwealth.

6(12) A financial statement or letter of credit in a form
7and containing information determined by the department to
8indicate the applicant's financial capability to operate the
9wholesale operation and the estimated volume of wholesale
10business to be conducted annually.

11(13) A current tax certificate issued by the Department
12of Revenue showing the amount of taxes owed to the
13Commonwealth for the applicant and any affiliate of the
14applicant, executive officer, director or general or limited
15partner of the applicant or person holding a controlling
16interest in the applicant.

17(14) A signature and verification by oath or affirmation
18or under penalty of unsworn falsification to authorities by
19one of the following:

20(i) The applicant, if the applicant is a natural
21person.

22(ii) A person specifically authorized by the legal
23entity to sign the application, if the applicant is a
24legal entity. Written evidence of the authority to sign
25must be attached to the signature and verification.

26(e) Additional information.--An applicant shall, during the
27application process, provide any other information determined to
28be appropriate by the department.

29(f) Amended application.--If a change occurs in any
30information provided to the department or the board as part of

1the application process, the applicant shall immediately notify
2the department or the board of the change and timely provide
3amended information to the department or the board in a form and
4manner determined by the department or the board.

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

6(1) An application filing fee of $10,000 shall be due
7upon application for a wine and spirits wholesale license.
8The application filing fee shall be refunded if, due to no
9fault of the applicant, the wine and spirits wholesale
10license is not approved.

11(2) The department shall establish, charge and collect
12fees from an applicant to recover the costs directly related
13to the board's review and investigation of the application
14for a wine and spirits wholesale license. The board shall
15have the same authority relating to fees as to applications
16for renewal.

17Section 323-A. Review and investigation of application.

18(a) Completeness of application.--

19(1) The following shall apply:

20(i) The department may not consider an incomplete
21application and shall notify the applicant in writing if
22an application is incomplete.

23(ii) An application shall be considered incomplete
24if it does not include all applicable fees and all
25information and accompanying documentation required by
26the department. Unpaid taxes identified on the tax 
27certificate required to be filed under section 
28322-A(d)(13) must be paid before the application is 
29considered complete.

30(2) A notification of incompleteness shall state the

1deficiencies in the application that must be corrected prior
2to consideration of the merits of the application.

3(3) The applicant must be afforded a reasonable period
4of time, as determined by the department, to cure the
5deficiencies.

6(4) If the applicant fails to timely cure noticed
7deficiencies within the time specified by the department, the
8application shall be deemed denied by the department without
9further action.

10(b) Investigation.--After receipt of an application for a
11wine and spirits wholesale license and a determination that the
12application is complete, the department shall provide the
13application to the board's Bureau of Licensing to conduct an
14investigation of the applicant. The investigation shall include
15and the applicant shall have the burden of demonstrating the
16following:

17(1) The truth and veracity of the information provided
18in the application.

19(2) The applicant's cooperation and the cooperation of
20any affiliate of the applicant and any executive officer,
21director or general or limited partner of the applicant or
22person holding a controlling interest in the applicant in the
23application process and with any request by the department or
24the board for any information deemed necessary for licensure.

25(3) The good character, reputation and suitability of
26the applicant and any affiliate of the applicant, executive
27officer, director or general or limited partner of the
28applicant or person holding a controlling interest in the
29applicant.

30(4) The applicant possesses sufficient financial

1resources to:

2(i) Operate as a wine and spirits wholesale
3licensee.

4(ii) Pay all taxes due and owing to the
5Commonwealth.

6(iii) Assume liability for the safe operation of the
7wholesale operations.

8(5) The applicant possesses sufficient financial
9resources and experience to create and maintain a successful
10and efficient wholesale operation that provides service at a
11level that is reasonably equivalent to the level of service
12currently provided in this Commonwealth on the effective date
13of this section.

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

21(7) The physical facilities proposed to be used in the
22applicant's wholesale operations are located and designed to:

23(i) assure that all warehouses are located within
24this Commonwealth and licensed for the storage of liquor;

25(ii) function as a self-contained unit, with limited
26customer access;

27(iii) not have any interior connection with any
28other business or with any residential building without
29prior department or board approval;

30(iv) provide adequate security to protect the

1applicant's inventory from unauthorized sale or
2diversion; and

3(v) protect the public interest.

4(c) Assistance with investigations.--The board may enter
5into an agreement with the Pennsylvania State Police or the
6Office of Inspector General to assist the board in conducting
7investigations under this section and to provide for the
8reimbursement of actual costs incurred for providing the
9assistance. The board may establish, charge and collect fees
10from an applicant to recover the costs of investigation.

11Section 324-A. Issuance of licenses.

12(a) Notification.--Upon completion of the investigation
13under section 323-A, the board shall inform the department of
14the results of its investigation. The board shall inform the
15applicant in writing of its decision to approve or deny the
16application.

17(b) Approval.--If the application is approved, the
18department shall require the successful applicant to pay the
19license fee, as required under section 321.1-A, based on the
20brand licensing fees established under section 321.1-A for the
21brands of liquor approved for the applicant.

22(c) Denial.--

23(1) If an application is denied, the board shall provide
24the applicant with the specific reasons for the denial in the
25written notification required under subsection (a).

26(2) The applicant shall be entitled to a hearing on the
27denial, if a hearing is requested within ten days of the 
28board's notification and the request is in writing on a form
29and in a manner determined by the board.

30(3) A hearing under this subsection shall be conducted

1in accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating to
2practice and procedure of Commonwealth agencies).

3(d) Issuance.--After approval of an application, the board
4shall issue a wine and spirits wholesale license to the
5applicant for the exclusive privilege to sell approved brands of
6liquor in this Commonwealth, if the applicant has completed all
7of the following:

8(1) Paid the wine and spirits wholesale license fee
9required under this article. Payment must be made by
10certified check or wire transfer to a designated restricted
11account in The State Stores Fund.

12(2) Paid outstanding application or investigation fees.

13(3) Executed and delivered to the board the statement of
14conditions required under section 325-A.

15(4) Repurchased from the board remaining marketable
16inventory of the brands authorized under its license which
17are owned by the board at the board's purchase order cost and
18paid applicable taxes due and an administrative fee
19determined by the board. The wine and spirits wholesale
20licensee shall coordinate, at its own cost, the removal of
21remaining product owned by the board.

22(5) Fulfilled any other conditions required by the
23department or the board or provided for under this article.

24(e) License as privilege.--

25(1) Nothing under this article is intended or may be
26construed to create an entitlement to a wine and spirits
27wholesale license.

28(2) The authorization to participate in the distribution
29and sale of liquor as a wine and spirits wholesale licensee
30is a privilege conditioned upon this article.

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

2(1) Except as set forth in paragraph (2), if a wine and
3spirits wholesale license has been issued for a particular
4brand of liquor, the board may not engage in the sale of that
5brand of liquor.

6(2) The board may coordinate the repurchase of remaining
7board inventory of brands as provided under Subarticle D.

8(3) The board's Bureau of Licensing shall provide
9adequate notice to the board's Bureau of Supply Chain that a
10wine and spirits wholesale license application is ready for
11license approval to insure that appropriate inventory
12reduction can be effectuated without causing a shortage of
13the brand at issue.

14Section 325-A. Wine and spirits wholesale licensee statement of
15conditions.

16(a) Statement of conditions.--The department, in
17consultation with the board, shall develop a statement of
18conditions to be executed by each wine and spirits wholesale
19licensee governing the operation of the wine and spirits
20wholesale licensee.

21(b) Conditions, restrictions and prohibited acts.--In
22addition to any other conditions the department, in consultation
23with the board, deems necessary or appropriate for a specific
24wine and spirits wholesale licensee or which may be mandated for
25all licensees through regulations of the department or the
26board, the statement of conditions under subsection (a) shall
27include the following:

28(1) A wine and spirits wholesale licensee may not sell
29liquor to a person, except a person specified in section
30321.1-A(a)(1).

1(2) A wine and spirits wholesale licensee must serve all
2licensees eligible to purchase and resell liquor under this
3act and must make liquor available for sale to those
4licensees under the same pricing structure.

5(3) Except for a wine and spirits wholesale licensee
6that holds an importing distributor license under section
7431, a wine and spirits wholesale licensee may not sell malt
8or brewed beverages.

9(4) A wine and spirits wholesale licensee may not engage
10in conduct that would constitute any of the following:

11(i) Variable pricing.

12(ii) Unfair or deceptive trade practices proscribed
13under Federal or State law or regulation.

14(iii) Intentional exclusion of competing brands of
15liquor from the marketplace.

16(5) A wine and spirits wholesale licensee may only sell
17and distribute liquor products in this Commonwealth that are
18subject to a contractual relationship between the wine and
19spirits wholesale licensee and one or more licensed
20manufacturers or importers of wine and spirits.

21(6) (i) A wine and spirits wholesale licensee shall do
22all of the following:

23(A) Acquire liquor exclusively from:

24(I) a licensed manufacturer or importer of
25wine and spirits with whom the wine and spirits
26wholesale licensee has the contractual authority
27to sell at wholesale as provided under this act;
28or

29(II) an entity affiliated with the wine and
30spirits wholesale licensee.

1(B) Keep a detailed log of wholesale liquor
2transactions, including acquisitions of liquor from
3an entity listed under clause (A) and sales to
4licensees under this act.

5(ii) If liquor is acquired from an entity affiliated
6with the wine and spirits wholesale licensee, the entity
7shall, for taxation purposes, be considered a licensed
8manufacturer or importer of wine and spirits.

9(7) A wine and spirits wholesale licensee's licensed
10premises and all facilities involved in its wholesale
11operations, including any changes to the facilities during
12the term of the license, shall be subject to the inspection,
13investigation and approval of the department or the board or
14the enforcement bureau.

15(8) A wine and spirits wholesale licensee shall maintain
16adequate security to protect the licensee's inventory from
17unauthorized sale, removal or theft and prevent its
18unauthorized distribution.

19(9) As follows:

20(i) Except as provided under paragraph (1), a wine
21and spirits wholesale licensee may not engage in a
22separate business activity on a premises on which
23wholesale liquor operations are conducted without prior
24approval of the board.

25(ii) A wine and spirits wholesale licensee which
26holds an importing distributor license may engage in
27sales of malt or brewed beverages under this act.

28(10) A wine and spirits wholesale licensee shall collect
29and remit to the Department of Revenue all applicable taxes.

30(11) A wine and spirits wholesale licensee shall be

1considered a State liquor store for the purpose of collecting
2and remitting taxes under Article II of the act of March 4,
31971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
4from persons licensed to sell liquor for consumption on the
5premises under Article IV.

6(12) A wine and spirits wholesale licensee shall notify
7the board within 15 days of a change in a person holding a
8controlling interest in the licensee.

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

15(14) A wine and spirits wholesale licensee shall notify
16the board within 15 days of becoming aware of a violation of
17this act by the licensee, an affiliate of the licensee or an
18executive officer, director or general or limited partner of
19the licensee, person holding a controlling interest in the
20licensee or employee of the licensee.

21(15) As follows:

22(i) A wine and spirits wholesale licensee may not
23operate in a manner which constitutes a violation of
24Federal or State law, including antitrust or other unfair
25trade practices, or creates a monopolistic liquor
26distribution system in this Commonwealth.

27(ii) If a wine and spirits wholesale licensee seeks
28to be approved by the department or the board to
29distribute additional brands of liquor which would give
30the licensee a control of more than 50% of the liquor

1distributed in the wholesale market of this Commonwealth,
2in terms of gross dollar sales, the board shall convene a
3hearing to determine whether approval of the proposed
4application for additional brands would constitute a
5violation of antitrust or other unfair trade practice
6laws, or would create a monopolistic liquor distribution
7system in this Commonwealth.

8(iii) The board is authorized to promulgate
9regulations providing for the procedure for hearings
10under subparagraph (ii).

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

19(17) A wine and spirits wholesale licensee shall
20cooperate fully in an inquiry or investigation by the
21department or the board or the enforcement bureau and provide
22information requested by the department, the board or the
23enforcement bureau.

24(18) A wine and spirits wholesale licensee which is a
25corporation, a limited liability company, limited
26partnership, partnership, association or other legal entity
27must be organized under the laws of this Commonwealth.

28(19) A wine and spirits wholesale licensee which is a
29natural person must be a citizen of the United States and a
30resident of this Commonwealth.

1(c) Sanctions.--A wine and spirits wholesale licensee that
2fails to abide by a condition contained in the licensee's
3statement of conditions or commits a violation of this act or
4Federal or State law:

5(1) shall be subject to citation by the enforcement
6bureau; and

7(2) may be subject to:

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

9(ii) nonrenewal of the license or revocation of
10temporary operating authority; or

11(iii) other penalties authorized under sections 471
12and 494.

13Section 326-A. Loss of rights to wholesale brands of liquor.

14The department, in consultation with the board, shall
15establish procedures and standards governing the relationship
16between wine and spirits wholesale licensees and manufacturers
17and the ability and terms upon which that relationship may be
18terminated. The procedures and standards shall incorporate the
19following principles:

20(1) As follows:

21(i) A manufacturer having a contract, including all
22written or oral agreements, understandings or other
23arrangements with a wine and spirits wholesale licensee
24for the distribution in this Commonwealth of a brand of
25liquor may terminate the distribution rights and transfer
26the rights to another wine and spirits wholesale licensee
27upon the voluntary agreement of both licensees.

28(ii) If a voluntary termination and transfer occurs,
29the manufacturer shall provide written notice to the
30board indicating that affected wine and spirits wholesale

1licensees have both agreed to the termination and
2transfer. A copy of the notification to the board shall
3be provided to both licensees.

4(2) If a wine and spirits wholesale licensee does not
5agree to the termination or transfer of its distribution
6rights, the manufacturer may only terminate or transfer the
7rights upon payment to the terminated licensee of reasonable
8compensation.

9(3) A voluntary or involuntary termination and transfer
10of the right to distribute the brand of liquor shall comply
11with this section.

12Section 327-A. Transfer of brands of liquor.

13(a) Prohibition.--No brand of liquor offered for sale in
14this Commonwealth may be transferred to a different wine and
15spirits wholesale licensee without prior approval from the
16board.

17(b) Transfer fee.--An application to the board to transfer
18the right to distribute a brand of liquor shall be subject to an
19application fee equal to 1% of the initial license fee
20attributable to the brand of liquor or $1,000, whichever is
21greater.

22SUBARTICLE D

23CLOSURE OF STATE LIQUOR STORES

24AND ASSISTANCE FOR DISPLACED EMPLOYEES

25Section 331-A. Closure of State liquor stores.

26(a) Process for closure.--

27(1) The board shall review the viability of a store 
28located within a county where the number of privately owned 
29and privately operated wine and spirits retail licenses plus 
30the number of grocery store licenses equal the number of
 

1Heritage State Stores.

2(2) Where the number of Heritage State Stores equals the
3number of privately owned and privately operated wine and
4spirits retail licenses plus the grocery store licenses, the
5board shall provide a rationale to the department for the
6continued operation or closure of a store located in a
7county.

8(3) A Heritage State Store designated for closure shall
9cease operations within 60 days.

10(4) Where the number of privately owned and privately
11operated wine and spirits retail licenses plus the grocery
12store licenses exceed the number of Heritage State Stores by
13a factor of two, the Heritage State Stores within a county
14must close within six months.

15(5) The board may not operate fewer than 100 Heritage
16State Stores within this Commonwealth.

17(b) Disposition of liquor.--The board shall arrange for the
18disposition of the liquor remaining in inventory at a designated
19store. In order to effectuate this subsection, the board may, in
20consultation with the department, do any of the following:

21(1) Coordinate with the vendor of record for the
22repurchase products by the vendor of record.

23(2) Sell products to newly licensed wine and spirits
24retail licensees.

25(3) Transport products for sale at another operating
26State liquor store.

27(c) Disposition of nonliquor State-owned property.--The
28department, in consultation with the board, shall establish a
29procedure for the sale of the nonliquor inventory, property and
30fixtures of all State liquor stores consistent with 62 Pa.C.S.

1Ch. 15 (relating to supply management). Wine and spirits retail
2licensees shall have the opportunity to bid on the items to be
3sold or otherwise participate in the sale. All proceeds from the
4sales shall be deposited into The State Stores Fund.

5(d) Pennsylvania Liquor Store leases.--The board shall
6provide immediate notice to the lessor upon receipt of the
7department's notice to close a designated Pennsylvania Liquor
8Store.

9(e) Hiring restrictions.--

10(1) Notwithstanding any other provision of this act, the
11board may not hire additional salaried or wage employees for
12the purpose of staffing its retail operations, including its
13bureau of marketing and retail operations, unless explicitly
14authorized by the department.

15(2) Paragraph (1) shall not prohibit the board from
16hiring personnel, with approval from the department, to
17adequately staff its Bureau of Supply Chain for the purpose
18of transitioning its retail and wholesale operations to
19licensees of this article.

20Section 331.1-A. Licensee service centers.

21The board shall work collaboratively with the department to
22ensure that an adequate number of stores designated for sales to
23licensees or licensee service center locations are maintained
24during the retail and wholesale divestiture process so that
25licensees are able to timely acquire products sold by the board.

26Section 332-A. Transition assistance committee.

27(a) Formation.--

28(1) On the effective date of this section, the
29department shall designate individuals to serve on a
30committee for the purpose of managing the staffing transition

1and displacement of employees during the divestiture process.

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

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

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

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

23Section 333-A. Preference in public employment hiring.

24(a) Civil service examinations.--

25(1) A displaced employee who successfully passes a civil
26service appointment examination shall be marked or graded an
27additional three points above the mark or grade credited for
28the examination if all of the following apply:

29(i) The examination is for a paid position
30administered under the act of August 5, 1941 (P.L.752,

1No.286), known as the Civil Service Act, and in the
2classified service existing under the commission's
3jurisdiction.

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

6(2) The total mark or grade, including the mark-up under
7paragraph (1), obtained by the displaced employee shall
8represent the final mark or grade of the employee and shall
9determine the employee's standing on any eligibility list
10certified or furnished to the appointing power.

11(3) The three additional points awarded under paragraph
12(1) shall be in addition to any points that shall be afforded
13to a veteran meeting the requirements of 51 Pa.C.S. § 7103
14(relating to additional points in grading civil service
15examinations).

16(b) Certification.--The commission shall require the board
17to certify a list of displaced employees under subsection (a).
18Placement on the list by the board shall establish eligibility
19for the preference granted under subsection (a).

20(c) Noncivil service positions.--If a paid State position
21does not require a civil service examination, a displaced
22employee, possessing the requisite qualifications and who is
23eligible for appointment to a paid State position in offices
24under the Governor's jurisdiction within the executive branch
25shall be given a preference in the appointment by the appointing
26authority over nonveteran candidates.

27(d) (Reserved).

28(e) Eligibility.--

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

1noncivil service positions provided under subsection (c)
2shall cease upon the occurrence of one of the following:

3(i) The displaced employee's appointment or hiring
4into a position in the classified service existing under
5the commission's jurisdiction or into a paid State
6position where no civil service examination is required.

7(ii) Four years from the effective date of this
8section.

9(2) In order to be eligible for the mark-up provided
10under subsection (a) and for the preference for noncivil
11service positions provided under subsection (c), a displaced
12worker must be terminated as a sole and direct result of the
13decision to cease wholesale and retail operations under this
14article and must work until the final day set by the board
15for that employee's job function.

16Section 334-A. Career training and post-secondary education
17grant eligibility.

18(a) Eligibility.--A displaced employee shall be eligible for
19a two-year grant for attending a program of instruction at an
20institution of higher education, including career training and
21adult education courses of study, within one year of the date of
22displacement from State service in the following amount:

23(1) two thousand dollars per year for attendance on a
24full-time basis; or

25(2) one thousand dollars per year for attendance on a
26part-time basis.

27(b) Certification.--The board shall certify the list of
28displaced employees to the Pennsylvania Higher Education 
29Assistance Agency.

30(c) Grant award.--The agency shall make a determination of

1grant eligibility and shall pay the grant directly to the
2institution of higher education attended by the displaced
3employee in a manner consistent with the Pennsylvania Higher 
4Education Assistance Agency's regulations.

5Section 335-A. Reemployment tax credit.

6(a) Eligibility.--

7(1) A displaced employee shall be eligible for a two-
8year reemployment tax credit voucher in the amount of $2,000
9per taxable year.

10(2) The voucher under paragraph (1) shall be made
11available to each displaced employee upon termination of
12employment.

13(3) Each voucher under paragraph (1) shall be certified
14by the board before the voucher is provided to the displaced
15employee.

16(4) The Department of Revenue shall be informed of each
17displaced employee to whom a voucher under paragraph (1) has
18been provided.

19(b) Transfer of voucher.--An employer in this Commonwealth
20who employs a displaced employee on a full-time basis may, upon
21transfer of the voucher from the employee to the employer, use
22the voucher as a credit against the State tax liability of the
23employer, if the employer can demonstrate the following:

24(1) The employee for whom the tax credit is being sought
25was displaced from the board within 12 months of being
26employed by the employer.

27(2) The former board employee has been employed by the
28employer seeking the tax credit on a full-time basis for a
29period not less than one year.

30(c) Voucher submittal.--The employer shall submit the tax

1credit voucher to the Department of Revenue with the information
2required under subsection (b)(1) and (2) to claim a tax credit
3against the employer's liability for a tax identified under
4subsection (d)(2).

5(d) Amount of credit.--

6(1) An employer may claim a reemployment tax credit for
7each job filled by a displaced employee of $2,000 per
8taxable year for a maximum of two taxable years.

9(2) An employer may apply the reemployment tax credit to
10100% of the employer's:

11(i) State corporate net income tax, capital stock
12and franchise tax or the personal tax of a shareholder of
13the company if the company is a Pennsylvania S
14corporation.

15(ii) Insurance premiums tax, gross receipts tax,
16bank and trust company shares tax, mutual thrift
17institutions tax or title insurance companies shares tax.

18(iii) Any combination of the taxes under
19subparagraphs (i) and (ii).

20(3) A displaced employee whose subsequent employment is
21terminated with an employer and who has utilized the
22reemployment tax credit voucher to claim a one-year $2,000
23tax credit may transfer the voucher to a new employer who may
24use the remaining $2,000 tax credit as a claim against the
25employer's tax liability for taxes identified under paragraph
26(2).

27(4) The term of the reemployment tax credit voucher may
28not exceed two years from the date the voucher is provided to
29the qualified displaced employee.

30Section 336-A. Protection of existing benefits.

1(a) Contract benefits.--Nothing under this section shall be
2deemed to affect:

3(1) Pension benefits accrued prior to the date of
4separation occurring as a sole and direct result of the
5divestiture of the board's wholesale and retail operations
6under this article.

7(2) Payment of an accrued benefit derived from the terms
8of a preexisting collective bargaining agreement payable upon
9separation from employment.

10(b) Collective bargaining.--As a result of the preferential
11hiring benefits, the tax credit for subsequent employers and the
12protection of benefits arising from an employee's pension or
13from a preexisting collective bargaining agreement under this
14section, the board shall be deemed to have satisfied all
15obligations to bargain over the impact of the decision to cease
16wholesale and retail operations under this article which may
17arise under the act of July 23, 1970 (P.L.563, No.195), known as
18the Public Employe Relations Act.

19(c) Local regulation.--This article supersedes a local
20regulation, ordinance or resolution of a political subdivision
21regarding notice to displaced workers.

22SUBARTICLE E

23MISCELLANEOUS PROVISIONS

24Section 341-A. License renewals.

25(a) Renewal.--

26(1) Wine and spirits licenses issued under this article
27shall be subject to renewal every two years, with validation.

28(2) The application for renewal shall be submitted on a
29form provided by the board at least 30 days prior to the
30expiration of the wine and spirits license and shall include,

1at a minimum, an update of the information contained in the
2initial and prior renewal applications and the payment of any
3renewal fee required under this article.

4(3) A wine and spirits license for which a completed
5renewal application and fee has been received by the board
6shall continue to be valid until the board sends written
7notification to the licensee that the board has denied the
8renewal of the license.

9(b) Fee.--

10(1) A renewal fee of $1,000 shall be due upon
11application for the renewal or validation of a wine and
12spirits retail license.

13(2) A renewal fee of $5,000 shall be due upon
14application for the renewal or validation of a wine and
15spirits wholesale license.

16(3) The board may adjust the renewal fee to ensure that
17the fee adequately recovers the costs associated with
18investigating the renewal application.

19(c) Renewal hearings.--The director of the board's Bureau of
20Licensing may object to the renewal of licenses issued under
21this article pursuant to the same authority granted under
22section 470. Hearings and appeals arising from the objections
23shall be conducted in accordance with section 464.

24(d) Revocation of operating authority.--

25(1) The board may revoke the operating authority of a
26wine and spirits license issued under this article if it
27finds that the licensee or any of its affiliates, executive
28officers, directors or general or limited partners or persons
29holding a controlling interest in the licensee:

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

1(ii) has furnished the board with false or
2misleading information; or

3(iii) is no longer reputable or suitable for
4licensure.

5(2) If a wine and spirits license is revoked or not
6renewed, the wine and spirits licensee's authorization to
7conduct business as a wine and spirits licensee shall
8immediately cease until the board notifies the licensee that
9the operating authority has been reinstated.

10(e) Affirmative duty.--Nothing under this section shall
11relieve a wine and spirits licensee of the affirmative duty to
12notify the board of changes relating to the status of its
13license or to other information contained in the application
14materials filed with the board.

15Section 342-A. Revocation, suspension and fines.

16(a) Authority of enforcement bureau.--The enforcement bureau
17shall have the authority to issue a citation against a wine and
18spirits licensee in the same manner as under section 471. The
19bureau may issue a citation to the licensee based on the
20following conduct:

21(1) The licensee violated any of the following:

22(i) A provision of this act.

23(ii) The regulations of the board.

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

25(iv) The licensee violated any other law of this
26Commonwealth.

27(2) The licensee knowingly presented to the board false,
28incomplete or misleading information.

29(3) The licensee pleaded guilty, entered a plea of nolo
30contendere or has been found guilty of a felony by a judge or

1jury in a Federal or State court.

2(4) The licensee failed to operate the business or to
3provide a reasonable level of consumer service.

4(5) The licensee failed to remit taxes as required.

5(b) Administrative Law Judge.--Enforcement matters shall be
6heard by an administrative judge in the same manner as under
7section 471. The administrative law judge may issue a fine and
8either suspend or revoke the license. Appeals may be taken in
9the same manner as under section 471.

10(c) Sales prohibited.--No person may sell liquor at a
11premises if any of the following apply:

12(1) The wine and spirits license applicable to that
13premises has been suspended or revoked or has expired.

14(2) The operating authority for the wine and spirits
15license has been revoked.

16(d) Public sale.--If a wine and spirits retail license is
17revoked, forfeited or surrendered under this article, the board
18shall conduct a sale of the license, consistent with this
19article.

20Section 343-A. Sale, assignment or transfer of license.

21(a) Prohibition.--No person may sell, assign or transfer
22their interest in a wine and spirits license granted under this
23article to another person until the board has received,
24investigated and approved a transfer application. If the license
25is a wine and spirits retail license, the wine and spirits
26licensee must have been in continuous operation for at least one
27year prior to the date of the application to transfer the
28license.

29(b) Compliance.--Any person to whom a wine and spirits
30license is transferred must comply with this article prior to

1the transfer of the license.

2(c) Transfer fee.--

3(1) The transfer of a wine and spirits license shall be
4subject to a transfer fee equal to 1% of the license fee paid
5for the license and shall be paid as a condition of the
6transfer of the license.

7(2) The transfer fee applicable to the transfer of
8brands of liquor under section 327-A(b) shall not apply to
9the transfer of a wine and spirits wholesale license.

10(3) A wine and spirits retail license may not be
11transferred to another location outside the county in which
12it was initially issued.

13(d) Change of control.--For the purposes of this section, a
14change of control of a wine and spirits wholesale or retail
15licensee shall be deemed to be a sale, assignment or transfer of
16a wine and spirits wholesale or retail license. A wine and
17spirits wholesale or retail licensee must notify the board
18immediately upon becoming aware of a proposed or contemplated
19change of control.

20Section 344-A. The State Stores Fund.

21All fees, assessments, bid amounts or other charges paid by
22wine and spirits license applicants or licensees shall be paid
23or transferred into a restricted account which is hereby 
24established in The State Stores Fund. Funds in the restricted 
25account shall be used for programs under Subarticle D and any 
26other use specified by statute. Any fines collected by the
27administrative law judge from the licensees shall be remitted to
28the enforcement bureau for continued enforcement efforts.

29Section 345-A. Return of fee or bid.

30(a) Wine and spirits wholesale license fee.--The entire wine

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

7(b) Wine and spirits retail licensee fee or bid amount.--The
8entire wine and spirits retail license fee or retail bid amount
9paid by a wine and spirits retail licensee shall be returned if
10this article is amended or otherwise altered by an act of the
11General Assembly within five years of the effective date of this
12section to authorize additional wine and spirits retail licenses
13under section 311.1-A.

14Section 10. Section 401 of the act, amended December 22,
152011 (P.L.530, No.113), is amended to read:

16Section 401. Authority to Issue Liquor Licenses to Hotels,
17Restaurants and Clubs.--(a) Subject to the provisions of this
18act and regulations promulgated under this act, the board shall
19have authority to issue a retail liquor license for any premises
20kept or operated by a hotel, restaurant or club and specified in
21the license entitling the hotel, restaurant or club to purchase
22liquor from a Pennsylvania Liquor Store or a wine and spirits
23wholesale licensee and to keep on the premises such liquor and,
24subject to the provisions of this act and the regulations made
25thereunder, to sell the same and also malt or brewed beverages
26to guests, patrons or members for consumption on the hotel,
27restaurant or club premises. Such licensees, other than clubs,
28shall be permitted to sell malt or brewed beverages for
29consumption off the premises where sold in quantities of not
30more than one hundred ninety-two fluid ounces in a single sale

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

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

28Section 10.1. The act is amended by adding sections to read:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

15Section 11.1. The act is amended by adding a section to
16read:

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

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

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

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

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

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

19* * *

20Section 13. Section 406(a)(3) and (e)(1) of the act, amended 
21December 22, 2011 (P.L.530, No.113), are amended and subsection 
22(e) is amended by adding a paragraph to read:

23Section 406. Sales by Liquor Licensees; Restrictions.--(a)
24* * *

25(3) Hotel and restaurant liquor licensees, municipal golf
26course restaurant liquor licensees and privately-owned public
27golf course restaurant licensees may sell liquor and malt or
28brewed beverages on Sunday between the hours of [eleven] nine
29o'clock antemeridian and two o'clock antemeridian Monday upon
30purchase of a special permit from the board at an annual fee as

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

14* * *

15(e) (1) The holder of a hotel license or the holder of a
16restaurant license located in a hotel may allow persons to
17transport liquor or malt or brewed beverages from the licensed
18portion of the premises to the unlicensed portion of the
19premises, so long as the liquor or malt or brewed beverages
20remain on the hotel property. In addition, a holder of a
21restaurant or club license located on a golf course may sell,
22furnish or give liquor or malt or brewed beverages on the
23unlicensed portion of the golf course so long as the liquor or
24malt or brewed beverages remain on the restaurant, club or golf
25course. The holder of a restaurant license located immediately
26adjacent to and under the same roof of a bowling center may
27allow persons to transport liquor or malt or brewed beverages
28from the licensed portion of the premises to the unlicensed
29portion of the premises, so long as the liquor or malt or brewed
30beverages remain within the bowling center. [In addition, the

1holder of a hotel license or a restaurant license may allow
2persons who have purchased but only partially consumed a bottle
3of wine on the premises to remove the bottle from the premises
4so long as the bottle was purchased in conjunction with a meal
5which was consumed on the premises and so long as the bottle is
6resealed.] Notwithstanding this paragraph, the holder of a hotel
7license or a restaurant license may sell up to six bottles of
8wine for consumption off the licensed premises so long as the
9bottles remain sealed and the holder has obtained a wine-to-go
10permit as authorized under section 493(35). In addition, the
11holder of a hotel license or a restaurant license may allow a
12person who has purchased but only partially consumed a bottle of
13spirits on the premises to remove the bottle from the premises
14so long as the bottle is resealed. For purposes of this
15subsection, "wine" shall have the meaning given to it under
16section 488(i). For purposes of this section and section 432,
17"meal" shall mean food prepared on the premises, sufficient to
18constitute breakfast, lunch or dinner; it shall not mean a
19snack, such as pretzels, popcorn, chips or similar food.

20* * *

21(3) The holder of a restaurant license whose premises has an
22interior connection to a grocery store may allow a purchase of
23beer and wine for consumption off the premises to be paid for at
24a point of sale other than a point of sale located on the
25licensed premises.

26Section 13.1. The act is amended by adding a section to
27read:

28Section 406.2.  Sales by Grocery Store Retail Licensees and
29Restrictions.--(a) Every grocery store retail licensee may sell
30wine for consumption off the licensed premises from any location

1within the licensed premises. Educational information regarding
2the types of products sold by the grocery store retail licensee
3and regarding the responsible consumption of alcohol shall be
4displayed and readily available wherever wine is displayed.
5Grocery store retail licensees may display the alcohol products
6they offer for sale on shelving units and systems, and in or on
7refrigerated cases and equipment, within the discretion of the
8licensee, provided that such displays are not designed to
9attract minors and, provided further, that the manner and method
10of display allows access by all customers, including the
11physically dependent.

12(b) Grocery store retail licensees may sell no more than 
13twelve bottles of wine in a single sale for consumption off the 
14licensed premises.

15(c) Grocery store retail licensees may not charge a
16membership fee in order for customers to make purchases from the
17grocery store.

18(d) Sales by grocery store retail licensees shall be made
19via grocery store registers, well designated with signage and
20manned by sales clerks who are at least eighteen years of age
21and have been RAMP-trained and utilizing a transaction scan
22device for any purchases. At no time shall the purchase of wine
23occur at a point of sale where the customer scans his own
24purchases. All sales of wine shall occur at a point of sale
25manned by a sales clerk at all times.

26(e) Grocery store retail licensees may store alcohol in a
27storage area or storage areas not accessible to the public
28provided such storage areas are:

29(1) locked at all times when not being accessed by the
30licensees' employes; and

1(2) identified by dimensions and location on forms submitted
2in advance to the board.

3(f) Grocery store retail licensees may sell wine from seven
4o'clock antemeridian until eleven o'clock postmeridian every day
5except Sunday.

6(g) Grocery store retail licensees may sell wine from nine
7o'clock antemeridian until eleven o'clock postmeridian on
8Sundays upon submission to the board of a Sunday sales permit
9application and fee of one thousand five hundred dollars
10($1,500) per year.

11(h) Grocery store retail licensees shall be permitted to
12hold:

13(1) Tastings at any location in the grocery store, provided
14the tastings are in compliance with the provisions and
15regulations regarding tastings held on restaurant licensed
16premises.

17(2) Educational classes, including cooking classes, "how to"
18classes, seminars and the like, regarding the proper or
19recommended use, consumption, identification, pairing,
20appellation, aging, storage, characteristics, service,
21presentation and the like, of the alcohol products that they
22offer for sale, during which classes the incidental consumption
23of alcohol by registered participants of lawful age shall be
24permitted; such classes may be free of charge to participants or
25may be at fee.

26(i) Grocery store retail licensees shall be permitted to
27hold restaurant licenses issued for areas within the same
28building for which the grocery store retail license has been
29issued or for a different building. Grocery store retail
30licenses and restaurant licenses issued for areas within the

1same grocery stores may be issued for areas that are adjacent,
2abutting and contiguous and the board shall approve interior
3connections between such areas. In the event that a grocery
4store retail license and a restaurant license are issued for the
5same grocery store, wine may only be sold for off-premises
6consumption in the area licensed for grocery store retail sales.

7(j) Grocery store retail licensees may not sell wine at a
8price less than its underlying cost.

9(k)  Grocery store retail licensees shall buy wine sold
10pursuant to their grocery store retail license from the board, a
11wine and spirits wholesale licensee or a winery licensed by the
12Commonwealth.

13(l) All products purchased by grocery store retail licensees
14and all products purchased by restaurant and eating place
15licensees owned by the same individual or company must be
16separately purchased from the board or a wine and spirits
17wholesale licensee as required by this act and may not be
18purchased from another retail licensee. Separate records must be
19maintained for all purchases and sales by all grocery store
20retail licensees and restaurant or eating place licensees,
21whether or not located within the same building or owned by the
22same individual or company.

23(m) The following shall apply:

24(1) The retail license fee payable one time upon application
25to the board for issuance of the license, shall be as follows:

26(i) For grocery stores located in counties of the first
27class or counties of the second class, one hundred sixty-five
28thousand dollars ($165,000).

29(ii) For grocery stores located in counties of the second
30class A or counties of the third class, one hundred eighty-seven

1thousand five hundred dollars ($187,500).

2(iii) For grocery stores located in counties of the fourth
3class or fifth class, one hundred forty-two thousand five
4hundred dollars ($142,500).

5(iv) For grocery stores located in counties of the sixth
6class or seventh class, one hundred twenty thousand dollars
7($120,000).

8(v) For grocery stores located in counties of the eighth
9class, ninety-seven thousand five hundred dollars ($97,500).

10(2) Grocery store retail licenses shall be renewed every two
11years. The renewal fee submitted each year shall be:

12(i) For grocery stores located in counties of the fifth
13class, counties of the sixth class, counties of the seventh
14class or counties of the eighth class, two thousand dollars
15($2,000).

16(ii) For grocery stores located in counties of the first
17class, counties of the second class, counties of the second
18class A, counties of the third class or counties of the fourth
19class, four thousand dollars ($4,000).

20(3) The board may accept applications to transfer grocery
21store retail licenses to new locations, for the same owner, upon
22submission of transfer applications and fees submitted to the
23board in the following amounts:

24(i) For transfers to counties of the fifth class, counties
25of the sixth class, counties of the seventh class or counties of
26the eighth class, five thousand dollars ($5,000).

27(ii) For transfers to counties of the first class, counties 
28of the second class, counties of the second class A, counties of 
29the third class or counties of the fourth class, ten thousand 
30dollars ($10,000).

1(n) (1) Grocery store licensees selling wine for off-
2premises consumption shall be required to obtain a sales tax
3license from the Department of Revenue.

4(2) A grocery store licensee selling wine for off-premises 
5consumption shall be considered a Pennsylvania Liquor Store for 
6purposes of collecting and remitting taxes under Article II of 
7the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform 
8Code of 1971." A grocery store licensee selling wine for off-
9premises consumption may not be required to pay the sales tax 
10when making wholesale purchases but shall collect the tax at 
11retail.

12Section 14. Section 407 of the act, amended November 29,
132006 (P.L.1421, No.155) and June 28, 2011 (P.L.55, No.11), is
14amended to read:

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

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

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

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

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

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

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

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

23(c) (1) The board may issue a retail package reform permit
24to a restaurant, hotel or retail dispenser licensee that applies
25and pays the requisite fee for use at the same place that the
26restaurant, hotel or retail dispenser maintains for the sale of
27malt or brewed beverages. The permit must allow the holder to
28sell in a single transaction not more than twenty-four original
29containers totaling not more than three hundred and eighty four
30fluid ounces of malt and brewed beverages so long as the

1original containers are in a package prepared for sale of
2distribution by the manufacturer of not more than twelve
3original containers.

4(2) For the permit issued under paragraph (1), the board
5shall require an annual fee of five hundred dollars ($500).

6Section 15. Section 408.12(g) and (h) of the act, added July
71, 1994 (P.L.402, No.61), are amended to read:

8Section 408.12. Wine Auction Permits.--* * *

9(g) Any wine sold under this section shall be purchased from
10a Pennsylvania Liquor Store, a wine and spirits retail licensee,
11a Pennsylvania limited winery or any seller authorized to sell
12wine by the bottle or case in this Commonwealth, including a
13grocery store licensee, restaurant liquor licensee or hotel
14liquor licensee, or shall be donated by a person who is neither
15a licensee nor a permittee who has legally acquired the wine and
16legally possesses it in this Commonwealth.

17(h) If any wine sold under this section is purchased from a
18seller other than a Pennsylvania Liquor Store, wine and spirits
19retail licensee, grocery store licensee, restaurant liquor
20licensee, hotel liquor licensee or [a] Pennsylvania limited
21winery, the permittee shall provide thirty days' notice to the
22board of its intent to purchase such wine. The notice shall
23include a description of the wine to be purchased, the quantity
24to be purchased, the name of the seller and any other
25information which the board may require. The permittee shall
26comply with all board regulations regarding taxes and fees.

27* * *

28Section 16. Section 410(e) of the act is amended to read:

29Section 410. Liquor Importers' Licenses; Fees; Privileges;
30Restrictions.--* * *

1(e) Importers' licenses shall permit the holders thereof to
2bring or import liquor from other states, foreign countries, or
3insular possessions of the United States, and purchase liquor
4from manufacturers located within this Commonwealth, to be sold
5outside of this Commonwealth or to Pennsylvania Liquor Stores or
6wine and spirits wholesale licensees within this Commonwealth,
7or when in original containers of ten gallons or greater
8capacity, to licensed manufacturers within this Commonwealth.

9All importations of liquor into Pennsylvania by the licensed
10importer shall be consigned to the board or the principal place
11of business or authorized place of storage maintained by the
12licensee or a wine and spirits wholesale licensee.

13* * *

14Section 17. Section 411 of the act is amended by adding a
15subsection to read:

16Section 411. Interlocking Business Prohibited.--* * *

17(f) (1) Notwithstanding any other provision of law, a
18manufacturer or licensee and its officers, directors,
19shareholders, servants, agents or employes may contribute, and a
20manufacturer or licensee and its officers, directors,
21shareholders, servants, agents or employes may accept moneys or
22other things of value solely for the administration of a
23responsible alcohol management training program for alcohol
24service personnel as provided for under section 471.1 of this
25act. The moneys or other things of value may be provided by or
26to a manufacturer or licensee and its officers, directors,
27shareholders, servants, agents or employes directly or by or to
28a trade organization consisting, in whole or in part, of a group
29of licensees.

30(2) The manufacturer, licensee and trade organization

1associated with the person providing the moneys or other things
2of value must keep a record of the value of the moneys or other
3things of value provided, the date provided and the entity to
4whom it was provided, as part of the records required under
5section 493(12) of this act.

6(3) The manufacturer, licensee and trade organization
7associated with the person receiving moneys or other things of
8value must keep a record of the value of the moneys or other
9things of value used, as part of the records required under
10section 493(12) of this act.

11Section 18. Section 431(b) of the act, amended December 8,
122004 (P.L.1810, No.239), is amended to read:

13Section 431. Malt and Brewed Beverages Manufacturers',
14Distributors' and Importing Distributors' Licenses.--* * *

15(b) The board shall issue to any reputable person who
16applies therefor, and pays the license fee hereinafter
17prescribed, a distributor's or importing distributor's license
18for the place which such person desires to maintain for the sale
19of malt or brewed beverages, not for consumption on the premises
20where sold, and in quantities of not less than a case or
21original containers containing one hundred twenty-eight ounces
22or more which may be sold separately as prepared for the market
23by the manufacturer at the place of manufacture. The board shall
24have the discretion to refuse a license to any person or to any
25corporation, partnership or association if such person, or any
26officer or director of such corporation, or any member or
27partner of such partnership or association shall have been
28convicted or found guilty of a felony within a period of five
29years immediately preceding the date of application for the said
30license: And provided further, That, in the case of any new

1license or the transfer of any license to a new location, the
2board may, in its discretion, grant or refuse such new license
3or transfer if such place proposed to be licensed is within
4three hundred feet of any church, hospital, charitable
5institution, school or public playground, or if such new license
6or transfer is applied for a place which is within two hundred
7feet of any other premises which is licensed by the board: And
8provided further, That the board shall refuse any application
9for a new license or the transfer of any license to a new
10location if, in the board's opinion, such new license or
11transfer would be detrimental to the welfare, health, peace and
12morals of the inhabitants of the neighborhood within a radius of
13five hundred feet of the place proposed to be licensed. [The
14board shall refuse any application for a new license or the
15transfer of any license to a location where the sale of liquid
16fuels or oil is conducted.] The board may enter into an
17agreement with the applicant concerning additional restrictions
18on the license in question. If the board and the applicant enter
19into such an agreement, such agreement shall be binding on the
20applicant. Failure by the applicant to adhere to the agreement
21will be sufficient cause to form the basis for a citation under
22section 471 and for the nonrenewal of the license under section
23470. If the board enters into an agreement with an applicant
24concerning additional restrictions, those restrictions shall be
25binding on subsequent holders of the license until the license
26is transferred to a new location or until the board enters into
27a subsequent agreement removing those restrictions. If the
28application in question involves a location previously licensed
29by the board, then any restrictions imposed by the board on the
30previous license at that location shall be binding on the

1applicant unless the board enters into a new agreement
2rescinding those restrictions. The board shall require notice to
3be posted on the property or premises upon which the licensee or
4proposed licensee will engage in sales of malt or brewed
5beverages. This notice shall be similar to the notice required
6of hotel, restaurant and club liquor licensees.

7Except as hereinafter provided, such license shall authorize
8the holder thereof to sell or deliver malt or brewed beverages
9in quantities above specified anywhere within the Commonwealth
10of Pennsylvania, which, in the case of distributors, have been
11purchased only from persons licensed under this act as
12manufacturers or importing distributors, and in the case of
13importing distributors, have been purchased from manufacturers
14or persons outside this Commonwealth engaged in the legal sale
15of malt or brewed beverages or from manufacturers or importing
16distributors licensed under this article. If the holder of a
17distributor license applies for and receives a wine and spirits
18retail license issued pursuant to Article III-A, that
19distributor shall be authorized to sell wine and/or spirits on
20the same premises where malt or brewed beverages are sold, and
21if a distributor licensee applies for and receives a distributor
22package reform permit issued pursuant to section 431.2, that
23distributor shall be authorized to sell malt or brewed beverages
24in quantities enumerated in section 431.2. In the case of an
25importing distributor, the holder of such a license shall be
26authorized to store and repackage malt or brewed beverages owned
27by a manufacturer at a segregated portion of a warehouse or
28other storage facility authorized by section 441(d) and operated
29by the importing distributor within its appointed territory and
30deliver such beverages to another importing distributor who has

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

21Each out of State manufacturer of malt or brewed beverages
22whose products are sold and delivered in this Commonwealth shall
23give distributing rights for such products in designated
24geographical areas to specific importing distributors, and such
25importing distributor shall not sell or deliver malt or brewed
26beverages manufactured by the out of State manufacturer to any
27person issued a license under the provisions of this act whose
28licensed premises are not located within the geographical area
29for which he has been given distributing rights by such
30manufacturer. Should a licensee accept the delivery of such malt

1or brewed beverages in violation of this section, said licensee
2shall be subject to a suspension of his license for at least
3thirty days: Provided, That the importing distributor holding
4such distributing rights for such product shall not sell or
5deliver the same to another importing distributor without first
6having entered into a written agreement with the said secondary
7importing distributor setting forth the terms and conditions
8under which such products are to be resold within the territory
9granted to the primary importing distributor by the
10manufacturer.

11When a Pennsylvania manufacturer of malt or brewed beverages
12licensed under this article names or constitutes a distributor
13or importing distributor as the primary or original supplier of
14his product, he shall also designate the specific geographical
15area for which the said distributor or importing distributor is
16given distributing rights, and such distributor or importing
17distributor shall not sell or deliver the products of such
18manufacturer to any person issued a license under the provisions
19of this act whose licensed premises are not located within the
20geographical area for which distributing rights have been given
21to the distributor and importing distributor by the said
22manufacturer: Provided, That the importing distributor holding
23such distributing rights for such product shall not sell or
24deliver the same to another importing distributor without first
25having entered into a written agreement with the said secondary
26importing distributor setting forth the terms and conditions
27under which such products are to be resold within the territory
28granted to the primary importing distributor by the
29manufacturer. Nothing herein contained shall be construed to
30prevent any manufacturer from authorizing the importing

1distributor holding the distributing rights for a designated
2geographical area from selling the products of such manufacturer
3to another importing distributor also holding distributing
4rights from the same manufacturer for another geographical area,
5providing such authority be contained in writing and a copy
6thereof be given to each of the importing distributors so
7affected.

8* * *

9Section 19. The act is amended by adding a section to read:

10Section 431.2. Distributor Package Reform Permit.--(a) The
11board may issue a distributor package reform permit to a
12currently licensed distributor who makes application and pays
13the requisite permit fee for use at the same place the
14distributor maintains for the sale of malt and brewed beverages.

15(b) For a permit under subsection (a), the board shall
16require an annual fee of one thousand dollars ($1,000).

17(c) Notwithstanding any other provision of this act, the
18permit shall allow the holder to:

19(1) Break the bulk of a case and sell a unit of that case in
20quantities not less than sixty ounces so long as the holder only
21sells a package prepared for sale by the manufacturer of no more
22than twelve original containers.

23(2) Sell a growler filled with malt or brewed beverages.

24(d) Before the holder of an enhanced distributor license
25breaks the bulk of a case of malt or brewed beverages for the
26purpose of selling units of the case, the licensee shall inspect
27such case for damage and appropriate production date. When the
28licensee breaks the bulk of a case of malt or brewed beverages
29for the purpose of selling units of the case, the licensee shall
30bear all the risk of loss and shall be responsible for the

1destruction of any malt or brewed beverages which violate the
2manufacturer's specifications relating to sales by a certain
3date or within a number of days of the production date.

4(e) As used in this section:

5"Unit" shall mean an undamaged bottle, can from a case or a
6growler.

7Section 20. Section 432(d) and (f) of the act, amended 
8January 6, 2006 (P.L.1, No.1) and December 22, 2011 (P.L.530, 
9No.113), are amended and the section is amended by adding a 
10subsection to read:

11Section 432. Malt and Brewed Beverages Retail Licenses.--* *
12*

13(d) The board shall, in its discretion, grant or refuse any
14new license, the transfer of any license to a new location or
15the extension of an existing license to cover an additional area
16if such place proposed to be licensed is within three hundred
17feet of any church, hospital, charitable institution, school, or
18public playground, or if such new license, transfer or extension
19is applied for a place which is within two hundred feet of any
20other premises which is licensed by the board. The board shall
21refuse any application for a new license, the transfer of any
22license to a new location or the extension of an existing
23license to cover an additional area if, in the board's opinion,
24such new license, transfer or extension would be detrimental to
25the welfare, health, peace and morals of the inhabitants of the
26neighborhood within a radius of five hundred feet of the place
27to be licensed. The board may enter into an agreement with the
28applicant concerning additional restrictions on the license in
29question. If the board and the applicant enter into such an
30agreement, such agreement shall be binding on the applicant.

1Failure by the applicant to adhere to the agreement will be
2sufficient cause to form the basis for a citation under section
3471 and for the nonrenewal of the license under section 470. If
4the board enters into an agreement with an applicant concerning
5additional restrictions, those restrictions shall be binding on
6subsequent holders of the license until the license is
7transferred to a new location or until the board enters into a
8subsequent agreement removing those restrictions. If the
9application in question involves a location previously licensed
10by the board, then any restrictions imposed by the board on the
11previous license at that location shall be binding on the
12applicant unless the board enters into a new agreement
13rescinding those restrictions[. The board shall refuse any
14application for a new license, the transfer of any license to a
15location where the sale of liquid fuels or oil is conducted or
16the extension of an existing license to cover an additional
17area]: And provided further, That the board shall have the
18discretion to refuse a license to any person or to any
19corporation, partnership or association if such person, or any
20officer or director of such corporation, or any member or
21partner of such partnership or association shall have been
22convicted or found guilty of a felony within a period of five
23years immediately preceding the date of application for the said
24license. The board may, in its discretion, refuse an application
25for an economic development license under section 461(b.1) or an
26application for an intermunicipal transfer or a license if the
27board receives a protest from the governing body of the
28receiving municipality. The receiving municipality of an
29intermunicipal transfer or an economic development license under
30section 461(b.1) may file a protest against the approval for

1issuance of a license for economic development or an
2intermunicipal transfer of a license into its municipality, and
3such municipality shall have standing in a hearing to present
4testimony in support of or against the issuance or transfer of a
5license. Upon any opening in any quota, an application for a new
6license shall only be filed with the board for a period of six
7months following said opening.

8* * *

9(f) Hotel, eating places, or municipal golf course retail
10dispenser licensees may sell malt or brewed beverages between
11the hours of [eleven] nine o'clock antemeridian on Sunday and
12two o'clock antemeridian on Monday upon purchase of a special
13permit from the board at an annual fee as prescribed in section
14614-A of the act of April 9, 1929 (P.L.177, No.175), known as
15"The Administrative Code of 1929," which shall be in addition to
16any other license fees. Notwithstanding this provision, a
17licensee holding such a special permit may begin selling malt or
18brewed beverages on Sunday between the hours of nine o'clock
19antemeridian and eleven o'clock antemeridian provided that the
20licensee offers a meal, as that term is defined in section 406,
21beginning at nine o'clock antemeridian.

22(g) The board may issue to any retail dispenser licensee a
23restaurant license in exchange for the retail dispenser license
24in any municipality which has approved the granting of liquor
25licenses.

26(1) An applicant under this section shall surrender his
27retail dispenser license for cancellation prior to the issuance
28of the new restaurant license.

29(2) The applicant for such an exchange of license shall file
30an application for a restaurant liquor license and shall post

1notice of such application in the manner provided in section
2403. In determining whether the exchange shall be granted the
3board shall have the same discretion as provided in section 404
4in the case of any new license.

5(3) The provisions of section 461 pertaining to a quota do
6not pertain to this section for exchange purposes.

7(4) The board shall charge a one-time upgrade fee of not
8more than thirty thousand dollars ($30,000).

9Section 21. Sections 436(e) and 437(e) of the act are
10amended to read:

11Section 436. Application for Distributors', Importing
12Distributors' and Retail Dispensers' Licenses.--* * *

13(e) That the applicant is not, or in case of a partnership
14or association, that the members or partners are not, and in the
15case of a corporation, that the officers and directors are not,
16in any manner pecuniarily interested, either directly or
17indirectly, in the profits of any other class of business
18regulated under this article, except as hereinafter permitted.
19The requirements of this section shall not prohibit a
20distributor from holding a wine and spirits retail license, or
21an importing distributor from holding a wine and spirits
22wholesale license, under the conditions provided under Article
23III-A.

24* * *

25Section 437. Prohibitions Against the Grant of Licenses.--*
26* *

27(e) No distributor's or importing distributor's license
28shall be issued for any premises in any part of which there is
29operated any retail license for the sale of liquor or malt or
30brewed beverages. The requirements of this section shall not

1prohibit a distributor from holding a wine and spirits retail
2license or an importing distributor from holding a wine and
3spirits wholesale license, under the conditions provided under
4Article III-A.

5* * *

6Section 22. Section 438 of the act, amended June 25, 2010
7(P.L.217, No.35), is amended to read:

8Section 438. Number and Kinds of Licenses Allowed Same
9Licensee.--(a) Any retail dispenser may be granted licenses to
10maintain, operate or conduct any number of places for the sale
11of malt or brewed beverages, but a separate license must be
12secured for each place where malt or brewed beverages are sold.

13(b) [No person shall possess or be issued more than one
14distributor's or importing distributor's license.] A person may
15not possess or be issued more than five distributor licenses or
16more than one distributor license in a county.

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

1license or a limited winery license and a hotel, restaurant or
2retail dispenser license for use at the same location and more
3than one location may be so licensed. The licenses and a
4person's interest in the licenses or in the entity holding the
5licenses shall not be subject to this section.

6Section 23. Section 441 of the act, amended or added May 31,
71996 (P.L.312, No.49), December 20, 1996 (P.L.1513, No.196),
8June 18, 1998 (P.L.664, No.86), December 9, 2002 (P.L.1653,
9No.212), June 28, 2011 (P.L.55, No.11) and December 22, 2011
10(P.L.530, No.113), is amended to read:

11Section 441. Distributors' and Importing Distributors'
12Restrictions on Sales, Storage, Etc.--(a) No distributor or
13importing distributor shall purchase, receive or resell any malt
14or brewed beverages except:

15(1) in the original containers as prepared for the market by
16the manufacturer at the place of manufacture;

17(2) in the case of identical containers repackaged in the
18manner described by subsection (f); or

19(3) as provided in section 431(b).

20(b) No distributor or importing distributor, except for a
21distributor that also holds a distributor package reform permit
22under section 431.2, shall sell any malt or brewed beverages in
23quantities of less than a case or original containers containing
24one hundred twenty-eight ounces or more which may be sold
25separately: Provided, That no malt or brewed beverages sold or
26delivered shall be consumed upon the premises of the distributor
27or importing distributor, or in any place provided for such
28purpose by such distributor or importing distributor.
29Notwithstanding any other provision of this section or act, malt
30or brewed beverages which are part of a tasting conducted

1pursuant to the board's regulations may be consumed on licensed
2premises.

3(c) No distributor or importing distributor shall maintain
4or operate any place where sales are made other than that for
5which the license is granted.

6(d) (1) No distributor shall maintain any place for the
7storage of malt or brewed beverages except in the same
8municipality in which the licensed premises is located and
9unless the same has been approved by the board. In the event
10there is no place of cold storage in the same municipality, the
11board may approve a place of cold storage in the nearest
12municipality.

13(2) No importing distributor shall maintain any place for
14the storage of malt or brewed beverages except in the franchise
15territory in which the licensed premises is located and unless
16the same has been approved by the board. The board shall issue
17no more than one storage facility license to an importing
18distributor. The storage location shall be designated solely as
19a storage facility, from which only sales to other licensees are
20permitted. Retail sales may be made at the licensed location
21pursuant to subsection (c). If the importing distributor
22maintains a storage location for cold storage in the same
23municipality in which the importing distributor is licensed or a
24nearby municipality, the importing distributor may continue to
25maintain that cold storage location in addition to another
26storage location within their franchise territory.

27(e) No distributor or importing distributor shall purchase,
28sell, resell, receive or deliver any malt or brewed beverages,
29except in strict compliance with the provisions of subsection
30(b) of section 431 of this act.

1(f)(1) To salvage one or more salable cases from one or more
2damaged cases, cartons or packages of malt or brewed beverages,
3a distributor or importing distributor may repackage consequent
4to inadvertent damage and sell a case, carton or package of
5identical units of malt or brewed beverages.

6(2) Repackaging is permissible only to the extent made
7necessary by inadvertent damage. Repackaging not consequent to
8damage is prohibited.

9(3) The term "identical units" as used in this subsection
10means undamaged bottles or cans of identical brand, package and
11volume.

12(g) All malt or brewed beverages purchased by an importing
13distributor from a Pennsylvania manufacturer of malt or brewed
14beverages or from any person located outside this Commonwealth
15for resale shall be invoiced to the importing distributor, shall
16come physically into the possession of such importing
17distributor and shall be unloaded into and distributed from the
18licensed premises of such importing distributor. The board may
19act to further define and control the storage and distribution
20of malt or brewed beverages in conformity with this section and
21this act.

22(h) As used in this section, the term "franchise territory"
23shall mean the geographically contiguous area in which an
24importing distributor has been given rights for the sale or
25resale of malt or brewed beverages.

26(i) Notwithstanding any other provision to the contrary,
27when making a sale of malt or brewed beverages to a private
28individual, no distributor or importing distributor may be
29required to collect the name, address or any other identifying
30information of the private individual for the purpose of keeping

1a record of the quantity of cases or volume of malt or brewed
2beverages purchased.

3(j) No distributor shall engage in the sale of wine without
4first obtaining a wine and spirits retail license under Article
5III-A. Sales of wine may only be made on premises licensed for
6the sale of malt or brewed beverages.

7Section 24. Section 442 of the act, amended or added
8December 9, 2002 (P.L.1653, No.212), December 16, 2002
9(P.L.1806, No.221), May 8, 2003 (P.L.1, No.1), July 17, 2003
10(P.L.63, No.15), November 29, 2006 (P.L.1421, No.155), June 28,
112011 (P.L.55, No.11), December 22, 2011 (P.L.530, No.113) and
12July 5, 2012 (P.L.1007, No.116), is amended to read:

13Section 442. Retail Dispensers' Restrictions on Purchases
14and Sales.--(a) (1) No retail dispenser shall purchase or
15receive any malt or brewed beverages except in original
16containers as prepared for the market by the manufacturer at the
17place of manufacture. The retail dispenser may thereafter break
18the bulk upon the licensed premises and sell or dispense the
19same for consumption on or off the premises so licensed. No
20retail dispenser may sell malt or brewed beverages for
21consumption off the premises in quantities in excess of one
22hundred ninety-two fluid ounces[.] unless the licensee acquires
23a retail package reform permit issued by the board under section
24407(c). Sales may be made in open or closed containers,
25Provided, however, That a municipality may adopt an ordinance
26restricting open containers in public places. No club licensee
27may sell any malt or brewed beverages for consumption off the
28premises where sold or to persons not members of the club.

29(2) Notwithstanding any other provision of law or any
30existing permit authorizing the sale of malt or brewed beverages

1for consumption off the premises, a retail dispenser licensee
2located in a city of the first class who is otherwise permitted
3to sell malt or brewed beverages for consumption off the
4premises may not do so after October 31, 2007, unless it
5acquires a permit from the board.

6(3) The application for a permit to sell malt or brewed
7beverages for consumption off the premises shall be on forms
8designated by the board and contain such information as the
9board may require. The application and renewal fee shall be as
10prescribed in section 614-A(28) of the act of April 9, 1929 
11(P.L.177, No.175), known as "The Administrative Code of 1929."
12However, no applicant who currently has a permit shall be
13required to pay any additional fees under section 614-A(28) of
14"The Administrative Code of 1929" in order to continue selling
15malt or brewed beverages for consumption off the premises at its
16currently licensed location for the licensing term beginning
17November 1, 2007, and ending October 31, 2008.

18(4) The application for a permit to sell malt or brewed
19beverages for consumption off the premises must be accompanied
20by a copy of the approval of such request by the hearing board
21authorized by this section.

22(5) A city of the first class shall create a hearing board
23within its Department of Licenses and Inspections to hear
24requests from licensees who are seeking a permit from the
25hearing board authorizing the licensee to sell malt or brewed
26beverages for consumption off the premises. Each hearing board
27shall consist of three persons appointed by the mayor of the
28city of the first class, who are subject to approval by the city
29council of the city of the first class. Each person so appointed
30shall serve at the pleasure of the appointing authority. The

1hearing board may, in its discretion, hold hearings to adduce
2testimony regarding a request. The hearing board must render a
3decision within ninety days of receipt of a request for approval
4of a permit to sell malt or brewed beverages for consumption off
5the premises. The hearing board must approve the request unless
6it finds that doing so would adversely affect the welfare,
7health, peace and morals of the city or its residents. A
8decision by the hearing board to deny a request may be appealed
9to the court of common pleas in the county in which the city is
10located. The failure to render a decision by the hearing board
11within the required time period shall be deemed approval of the
12permit.

13(6) Upon being satisfied that the applicant has fulfilled
14all the requirements of this act and the board's regulations,
15the board shall approve the application. Such permits shall
16expire upon the transfer of the license to a new entity or to a
17new location, or both; otherwise, such permits shall expire at
18the same time as the expiration of the underlying license.

19(b) No retail dispenser shall sell any malt or brewed
20beverages for consumption on the licensed premises except in a
21room or rooms or place on the licensed premises at all times
22accessible to the use and accommodation of the general public,
23but this section shall not be interpreted to prohibit a retail
24dispenser from selling malt or brewed beverages in a hotel or
25club house in any room of such hotel or club house occupied by a
26bona fide registered guest or member entitled to purchase the
27same or to prohibit a retail dispenser from selling malt or
28brewed beverages in a bowling alley where the licensed premises
29and bowling alley are immediately adjacent and under the same
30roof.

1(c) For the purpose of this section any person who is an
2active member of another club which is chartered by the same
3state or national organization shall have the same rights and
4privileges as members of the particular club.

5(d) For the purposes of this section, any person who is an
6active member of any volunteer firefighting company, association
7or group of this Commonwealth, whether incorporated or
8unincorporated, shall upon the approval of any club composed of
9volunteer firemen licensed under this act, have the same social
10rights and privileges as members of such licensed club.

11(e) (1) The holder of a retail dispenser license located in
12a hotel may allow persons to transport malt or brewed beverages
13from the licensed portion of the premises to the unlicensed
14portion of the premises so long as the malt or brewed beverages
15remain on the hotel property.

16(2) In addition, the holder of a retail dispenser license
17located on a golf course may allow its patrons to order malt or
18brewed beverages on licensed premises for subsequent delivery by
19the licensee on nonlicensed portions of the premises, including
20the golf course.

21(3) In addition, a holder of a restaurant or club license
22located on a golf course may sell, furnish or give liquor or
23malt or brewed beverages on the unlicensed portion of the golf
24course so long as the liquor or malt or brewed beverages remain
25on the restaurant, club or golf course.

26(4) The holder of a restaurant license located immediately
27adjacent to and under the same roof of a bowling center may
28allow persons to transport liquor or malt or brewed beverages
29from the licensed portion of the premises to the unlicensed
30portion of the premises so long as the liquor or malt or brewed

1beverages remain within the bowling center.

2(f) The holder of an eating place retail dispenser license
3may obtain an off-premises catering permit under section 493(33)
4to hold a catered function off of the licensed premises and on
5otherwise unlicensed premises where the licensee may sell malt
6or brewed beverages by the glass, open bottle or any other
7container, together with food, for consumption on those premises
8solely used for catering premises. Functions conducted under the
9authority of the permit shall be subject to the following:

10(1) malt or brewed beverages may only be provided during the
11days and hours that the license holder may otherwise sell malt
12or brewed beverages;

13(2) each catered function shall last no longer than one day
14and not more than fifty catered functions may be held each
15calendar year by each license holder for use with a particular
16license;

17(3) a catered function shall not be held at a location that
18is already subject to the applicant's or another licensee's
19license;

20(4) a permit shall not be issued to an applicant whose
21license is in safekeeping;

22(5) a permit shall not be issued to a location that is
23subject to a pending objection by the director of the Bureau of
24Licensing or the board under section 470(a.1);

25(6) a permit shall not be issued to a location that is
26subject to a pending license suspension under section 471 or the
27one-year prohibition on the issuance or transfer of a license
28under section 471(b);

29(7) no malt or brewed beverages may be taken from the
30permitted location by a patron, but the applicant may transport

1malt or brewed beverages to and from its licensed premises to
2the proposed premises;

3(8) written notice of the catered function as enumerated in
4paragraph (9) shall be provided to the local police and the
5enforcement bureau at least seven days in advance of the event;

6(9) written notice shall be provided to the board at least
7thirty days prior to a catered function. Written notice must
8include the location of the function, time of the function, host
9of the function, general information regarding the guests
10expected at the function as well as any information the board
11shall from time to time prescribe. The board may, in its
12discretion, accept notice in an electronic format. The board
13may, in its discretion, waive the thirty-day notice period for a
14catered function if:

15(i) the applicant has previously conducted functions that
16meet the requirements of this act;

17(ii) the applicant is a licensee in good standing with the
18board;

19(iii) notification was received at least fourteen days prior
20to the catered function; and

21(iv) the applicant pays a late fee of one hundred dollars
22($100);

23(10) the board shall, in its discretion, approve or
24disapprove a catered function if the applicant fails to provide
25timely notice of the catered function, does not intend to
26conduct a function that meets the requirements of this act or
27has previously conducted a function that did not meet the
28requirements of this act;

29(11) if a catered function is scheduled to occur on private
30property, the owner of that property is deemed to have submitted

1to the jurisdiction of the enforcement bureau, and the warrant
2required by section 211(a)(2) of this act shall not be necessary
3for the enforcement bureau to enter and search the premises
4during the function or any activities related to the function;

5(12) all servers at the off-premises catered function shall
6be in compliance with the responsible alcohol management
7provisions under section 471.1 of this act;

8(13) no catered function may be held for more than five
9hours per day and must end by midnight;

10(14) neither the owner of the property nor the applicant may
11sell tickets to a catered function unless one of the following
12conditions is met:

13(i) the applicant has contracted with an eligible entity for
14the function, and the function is being used to raise money for
15the eligible entity's organization;

16(ii) the applicant has contracted with a nonprofit
17organization as defined under section 501(c)(3) of the Internal
18Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)),
19for an event which has the sole purpose of raising funds for
20that nonprofit organization;

21(iii) the applicant has contracted with an organization that
22holds tax-exempt status under section 527 of the Internal
23Revenue Code of 1986;

24(15) catered functions held on unlicensed premises shall be
25subject to section 493(34) of this act;

26(16) catered functions may not be held in locations that are
27subject to a pending, protested transfer application;

28(17) a permit may not be issued to a licensee who is subject
29to objection under the board's nuisance bar program;

30(18) a permit shall not be issued to a licensee for use in

1any location that is mobile; and

2(19) a permit shall not be issued for use on any location
3used for parking at a sports event or concert event.

4(g) Notwithstanding any other provision of law or
5regulation, the holder of a retail dispenser license may hold
6happy hours up to four consecutive or nonconsecutive hours per
7day and up to fourteen hours per week during which the holder
8discounts the price of alcoholic beverages. No discounts may be
9given between the hours of midnight and the legal closing time.
10Notice of all happy hours shall be visibly posted on the
11licensed premises seven days prior to the happy hour. Except as
12provided in this subsection, a licensee shall comply with the
13provisions of 40 Pa. Code § 13.102 (relating to discount pricing
14practices). Events conducted under the authority of 40 Pa. Code
15§ 13.102(b) shall not be counted against the four-hours per day
16or fourteen-hours per week.

17Section 25. Section 443(b) of the act, amended May 31, 1996
18(P.L.312, No.49), is amended and the section is amended by
19adding a subsection to read:

20Section 443. Interlocking Business Prohibited.--* * *

21(b) No distributor or importing distributor and no officer
22or director of any distributor or importing distributor shall at
23the same time be a manufacturer, a retail dispenser or a liquor
24licensee, or be an officer, director, stockholder or creditor of
25a manufacturer, a retail dispenser or a liquor licensee, or,
26directly or indirectly, own any stock of, or have any financial
27interest in, or be the owner, proprietor or lessor of, any place
28covered by any other malt or brewed beverage or liquor license.
29The requirements of this section or any other provision of law,
30shall not prohibit the holder of a distributor license from

1holding a wine and spirits retail license issued pursuant to
2Article III-A, or an importing distributor from also holding a
3wine and spirits wholesale license issued pursuant to Article
4III-A.

5* * *

6(h) (1) Notwithstanding any other provision of law, a
7manufacturer or licensee and its officers, directors,
8shareholders, servants, agents or employes may contribute and a
9manufacturer or licensee and its officers, directors,
10shareholders, servants, agents or employes may accept moneys or
11other things of value solely for the administration of a
12responsible alcohol management training program for alcohol
13service personnel as provided under section 471.1. The moneys or
14other things of value may be provided by or to a manufacturer or
15licensee and its officers, directors, shareholders, servants,
16agents or employes directly of, by or to a trade organization
17consisting, in whole or in part, of a group of licensees.

18(2) The manufacturer, licensee and trade organization
19associated with the person providing moneys or other things of
20value must keep a record of the value of the moneys or other
21things of value provided, the date provided and the entity to
22whom the moneys or other things of value were provided, as part
23of the records required under section 493(12).

24(3) The manufacturer, licensee and trade organization
25associated with the person receiving the moneys or other things
26of value must keep a record of the value of the moneys or other
27things of value received, the date provided, the entity from
28whom the moneys or other things of value were received and the
29manner in which the moneys or other things of value were used,
30as part of the records required under section 493(12) of this

1act.

2Section 26. Section 446(a)(1) of the act, amended December
322, 2011 (P.L.530, No.113), is amended to read:

4Section 446. Breweries.--(a) Holders of a brewery license
5may:

6(1) Sell malt or brewed beverages produced and owned by the
7brewery under such conditions and regulations as the board may
8enforce, to individuals for consumption on the licensed premises
9in any container or package of any volume and to hotel,
10restaurant, club, grocery stores and public service liquor
11licensees.

12* * *

13Section 27. Section 461(a) of the act, amended October 24,
142012 (P.L.1203, No.149), is amended and the section is amended
15by adding a subsection to read:

16Section 461. Limiting Number of Retail Licenses To Be Issued
17In Each County.--(a) No additional restaurant, eating place
18retail dispenser or club licenses shall be issued within a
19county if the total number of restaurant and eating place retail
20dispenser licenses is greater than one license for each three
21thousand inhabitants in the county, except the board may issue
22licenses to public venues, performing arts facilities,
23continuing care retirement communities, airport restaurants,
24municipal golf courses, hotels, privately-owned private golf
25courses, privately-owned public golf courses, racetracks,
26automobile racetracks, nonprimary pari-mutuel wagering
27locations, privately-owned ski resorts, grocery stores and to
28any other entity which this act specifically exempts from the
29limitations provided in this section, and the board may issue a
30license to a club situated in a borough having a population less

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

22(a.1) An additional grocery store retail license may not be
23issued within a county if the total number of grocery store
24retail licenses is greater than one license for every fifteen
25thousand inhabitants in the county, provided that a total of two
26such licenses may be granted in a county in this Commonwealth.

27* * *

28Section 28. Section 468(a) and (e) of the act, amended or 
29added December 20, 2000 (P.L.992, No.141), February 21, 2002 
30(P.L.103, No.10), June 28, 2011 (P.L.55, No.11) and December 22,
 

12011 (P.L.530, No.113), are amended to read:

2Section 468. Licenses Not Assignable; Transfers.--(a) (1)
3Licenses issued under this article may not be assigned. The
4board, upon payment of the transfer filing fee, is hereby
5authorized to transfer any license issued by it under the
6provisions of this article from one person to another or from
7one place to another, or both. Except for restaurant liquor and
8eating place retail dispenser licenses transferred under section
9461(b.4), if the license is a retail license, the new location
10must be within the same county as the existing location or, if
11the municipality is located in more than one county, within the
12same municipality as the existing location.

13(2) In the case of distributor and importing distributor
14licenses, the board may transfer any such license from its place
15in a municipality to a place in any other municipality within
16the same county, or from one place to another place within the
17same municipality, or exchange a distributor license for an
18importing distributor license or an importing distributor
19license for a distributor license, if the building for which the
20license is to be issued has, in the case of an importing
21distributor license, an area under one roof of two thousand five
22hundred square feet and, in the case of a distributor license,
23an area under one roof of one thousand square feet: And
24provided, That, in the case of all transfers of distributor or
25importing distributor licenses, whether from a place within the
26same municipality to another place within the same municipality
27or from a place in a municipality to a place in any other
28municipality within the same county, and, in the case of an
29exchange of a distributor license for an importing distributor
30license or an importing distributor license for a distributor

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

21(3) [No license shall be transferred to any place or
22property upon which is located as a business the sale of liquid
23fuels and oil.] Except in cases of emergency such as death,
24serious illness, or circumstances beyond the control of the
25licensee, as the board may determine such circumstances to
26justify its action, transfers of licenses may be made only at
27times fixed by the board. In the case of the death of a
28licensee, the board may transfer the license to the surviving
29spouse or personal representative or to a person designated by
30him. From any refusal to grant a transfer or upon the grant of

1any transfer, the party aggrieved shall have the right of appeal
2to the proper court in the manner hereinbefore provided.

3(4) In the event the license to be transferred has been
4ordered to serve a suspension under section 471 and has not
5served the suspension at the time the board considers the
6application and all appeals regarding the suspension have been
7exhausted, the board may require the transferee to serve the
8suspension as a condition for approval of the transfer. Further,
9the board may convert the outstanding suspension into a fine and
10require the transferee to pay the fine as a condition for
11approval of the transfer. If the board converts the outstanding
12suspension to a fine, the fine need not comply with the minimum
13and maximum amounts set forth in section 471 for the underlying
14citation.

15* * *

16(e) Notwithstanding any other provision of law, the board
17may not approve an interior connection that is greater than ten
18feet wide between a licensed business and another business. This
19subsection shall not prohibit the board from approving a renewal
20application of a license, even if the licensed business has an
21interior connection that is greater than ten feet wide to an
22unlicensed business, if the board had approved the interior
23connection prior to the effective date of this subsection. This
24subsection shall not apply to the holder of a grocery store
25retail license.

26Section 29. Section 470(a) of the act, amended December 22,
272011 (P.L.530, No.113), is amended to read:

28Section 470. Renewal of Licenses; Temporary Provisions for
29Licensees in Armed Service.--(a) All applications for renewal
30or validation of licenses under the provisions of this article

1shall be filed with tax clearance from the Department of Revenue
2and the Department of Labor and Industry and requisite license
3and filing fees, including an application surcharge of seven
4hundred dollars ($700), at least sixty days before the
5expiration date of same: Provided, however, That the board, in
6its discretion, may accept nunc pro tunc a renewal application
7filed less than sixty days before the expiration date of the
8license with the required fees, upon reasonable cause shown and
9the payment of an additional filing fee of one hundred dollars
10($100.00) for late filing: And provided further, That except
11where the failure to file a renewal application on or before the
12expiration date has created a license quota vacancy after said
13expiration date which has been filled by the issuance of a new
14license, after such expiration date, but before the board has
15received a renewal application nunc pro tunc within the time
16prescribed herein the board, in its discretion, may, after
17hearing, accept a renewal application filed within two years
18after the expiration date of the license with the required fees
19upon the payment of an additional filing fee of two hundred
20fifty dollars ($250.00) for late filing. Where any such renewal
21application is filed less than sixty days before the expiration
22date, or subsequent to the expiration date, no license shall
23issue upon the filing of the renewal application until the
24matter is finally determined by the board and if an appeal is
25taken from the board's action the courts shall not order the
26issuance of the renewal license until final determination of the
27matter by the courts. The board may enter into an agreement with
28the applicant concerning additional restrictions on the license
29in question. If the board and the applicant enter into such an
30agreement, such agreement shall be binding on the applicant.

1Failure by the applicant to adhere to the agreement will be
2sufficient cause to form the basis for a citation under section
3471 and for the nonrenewal of the license under this section. A
4renewal application will not be considered filed unless
5accompanied by the requisite filing and license fees and any
6additional filing fee required by this section. Unless the board
7shall have given ten days' previous notice to the applicant of
8objections to the renewal of his license, based upon violation
9by the licensee or his servants, agents or employes of any of
10the laws of the Commonwealth or regulations of the board
11relating to the manufacture, transportation, use, storage,
12importation, possession or sale of liquors, alcohol or malt or
13brewed beverages, or the conduct of a licensed establishment, or
14unless the applicant has by his own act become a person of ill
15repute, or unless the premises do not meet the requirements of
16this act or the regulations of the board, the license of a
17licensee shall be renewed. Notwithstanding any other provision
18of this act, a noise violation shall not be the sole basis for
19objection by the board to the renewal of a license unless the
20licensee has received six prior adjudicated noise citations
21within a twenty-four-month period.

22* * *

23Section 30. Section 471(b) and (e) of the act, amended or
24added July 6, 2005 (P.L.135, No.39) and April 13, 2006 (P.L.78,
25No.26), are amended to read:

26Section 471. Revocation and Suspension of Licenses; Fines.--
27* * *

28(b) Hearing on such citations shall be held in the same
29manner as provided herein for hearings on applications for
30license. Upon such hearing, if satisfied that any such violation

1has occurred or for other sufficient cause, the administrative
2law judge shall immediately suspend or revoke the license, or
3impose a fine of not less than [fifty dollars ($50)] two hundred
4fifty dollars ($250) nor more than [one thousand dollars
5($1,000)] five thousand dollars ($5,000), or both, notifying the
6licensee by registered letter addressed to his licensed
7premises. If the licensee has been cited and found to have
8violated section 493(1) insofar as it relates to sales to minors
9or sales to a visibly intoxicated person, section 493(10)
10insofar as it relates to lewd, immoral or improper entertainment
11or section 493(14), (16) or (21), or has been found to be a
12public nuisance pursuant to section 611, or if the owner or
13operator of the licensed premises or any authorized agent of the
14owner or operator has been convicted of any violation of the act
15of April 14, 1972 (P.L.233, No.64), known as "The Controlled
16Substance, Drug, Device and Cosmetic Act," or of 18 Pa.C.S. §
175902 (relating to prostitution and related offenses) or 6301
18(relating to corruption of minors), at or relating to the
19licensed premises, the administrative law judge shall
20immediately suspend or revoke the license, or impose a fine of
21not less than [one thousand dollars ($1,000)] five thousand
22dollars ($5,000) nor more than [five thousand dollars ($5,000)]
23ten thousand dollars ($10,000), or both. However, if a licensee
24has been cited and found to have violated section 493(1) as it
25relates to sales to minors or sales to a visibly intoxicated
26person but at the time of the sale the licensee was in
27compliance with the requirements set forth in section 471.1 and
28the licensee had not sold to minors or visibly intoxicated
29persons in the previous four years, then the administrative law
30judge shall immediately suspend or revoke the license, or impose

1a fine of not less than [fifty dollars ($50)] one thousand
2dollars ($1,000) nor more than [one thousand dollars ($1,000)]
3five thousand dollars ($5,000), or both. The administrative law
4judge shall notify the licensee by registered mail, addressed to
5the licensed premises, of such suspension, revocation or fine.
6In the event the fine is not paid within twenty days of the
7adjudication, the administrative law judge shall suspend or
8revoke the license, notifying the licensee