AN ACT

 

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

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

1State Stores Fund; providing for studies of the wine and 
2spirits wholesale system in this Commonwealth; and making a 
3related repeal.

<-4The General Assembly finds and declares as follows:

5(1) It is the purpose of this act to reform and 
6modernize the system by which alcohol is dispensed and 
7controlled within this Commonwealth to reflect changes in the 
8marketplace while continuing to protect the welfare, health, 
9peace and morals of the citizens of this Commonwealth.

10(2) The 21st amendment to the United States Constitution 
11dictates that the laws of the states shall govern the 
12transportation and importation of intoxicating liquors into 
13the state for delivery and use within the state.

14(3) Further, the United States Supreme Court has opined 
15in interpreting the 21st amendment that "the states' 
16regulatory power over this segment of commerce is largely 
17unfettered by the Constitution's commerce clause."

18(4) Revenues derived from the operation of a system for 
19the manufacture, transportation, distribution and sale of 
20alcohol are necessary to implement and sustain a regulated 
21marketplace to continue to protect the welfare, health, peace 
22and morals of the citizens of this Commonwealth and to 
23contribute to the overall economic stability of the 
24Commonwealth.

25(5) In order to adapt to the changing marketplace, this 
26act will:

27(i) Permit private industry to offer additional 
28products for sale while ensuring that the laws of this 
29Commonwealth are thoroughly enforced.

30(ii) Ensure that the value of licenses held by small 
31businesses are not devalued, but are enhanced through the
 

1opportunity to expand operations and sales.

2(iii) Provide for the operation of a retail system 
3that promotes competition and convenience to ensure that 
4the residents of this Commonwealth purchase products 
5within this Commonwealth.

6(iv) In recognition of the growing use of e-commerce 
7sales, permit consumers to purchase products online and 
8have those products shipped directly to them.

9(v) Establish a system by which these increased 
10opportunities will continue to contribute to overall 
11fiscal stability of the Commonwealth.

12(6) Recognition and furtherance of all these elements is 
13essential to the welfare, health, peace and morals of the 
14citizens of this Commonwealth.

15The General Assembly of the Commonwealth of Pennsylvania
16hereby enacts as follows:

<-17Section 1. Section 102 of the act of April 12, 1951 (P.L.90,
18No.21), known as the Liquor Code, reenacted and amended June 29,
191987 (P.L.32, No.14), is amended by adding definitions to read:

20Section 102. Definitions.--The following words or phrases,
21unless the context clearly indicates otherwise, shall have the
22meanings ascribed to them in this section:

23"Affiliate" or "person affiliated with" shall mean a person
24that directly or indirectly, through one or more intermediaries,
25controls, is controlled by or is under common control with a
26specified person.

27* * *

28"Blended brand valuation" shall mean, for any particular
29brand of liquor, the sum of the wholesale profit margin on each
30product of a brand.

1* * *

2"Brand of liquor" shall mean a liquor product or series of
3liquor products produced by a single manufacturer.

4* * *

5"Change in control" shall mean, for purposes of wholesale or
6retail licensees as defined in this section, the acquisition by
7a person or group of persons acting in concert of more than
8twenty per centum of a licensee's securities or other ownership
9interests, with the exception of any ownership interest of the
10person that existed at the time of initial licensing, or more
11than twenty per centum of the securities or other ownership
12interests of a corporation or other legal entity which owns,
13directly or indirectly, at least twenty per centum of the
14securities or other ownership interests of the licensee.

15* * *

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

17* * *

18"Controlling interest" shall mean as follows:

19(1) For a publicly traded legal entity, an interest in a
20legal entity, applicant or licensee whereby a person's sole
21voting rights under State law or corporate articles or bylaws
22entitles the person to elect or appoint one or more of the
23members of the board of directors or other governing board or
24the ownership, directly or indirectly, of five per centum or
25more of the securities of the publicly traded corporation.

26(2) For a privately held corporation, partnership, limited
27liability company or other form of privately held legal entity,
28the holding of any securities in the legal entity.

29* * *

30"Department" shall mean the Department of General Services of

1the Commonwealth.

2* * *

3"Displaced employe" shall mean a salaried employe of the
4board whose employment is terminated as a sole and direct result
5of the implementation of Article III-A. The term shall not
6include a person who is terminated for cause or who retires or
7resigns, is furloughed or is otherwise separated from employment
8for any other reason. The term excludes intermittent liquor
9store clerks and seasonal liquor store clerks.

10* * *

11"Grocery store" shall mean a reputable place operated by
12persons of good repute, which primarily sells food, supplies for
13the table and food products for human consumption off the
14premises and which has an area under one roof of ten thousand
15(10,000) square feet or more.

16"Growler" shall mean a refillable glass container that holds
17a minimum of sixty-four fluid ounces for malt or brewed
18beverages.

19* * *

20"Heritage State Stores" shall mean the number of State
21stores, as determined by the board, located in any given county
22as of the effective date of this definition.

23* * *

24"Institution of higher education" shall mean a public or
25private institution within this Commonwealth authorized by the
26Department of Education to grant a certificate, associate degree
27or higher degree. The term includes a branch or satellite campus
28of the institution.

29* * *

30"Retail licensee" shall mean a person that holds a wine and

1spirits retail license issued pursuant to section 311-A.

2* * *

3"Variable pricing" shall mean, for purposes of the wholesale
4sale of liquor, any disparity in the price of an item sold to
5one licensee as compared to the price of the same item to
6another licensee or a licensee of a different classification.
7The term shall not include discounts for volume purchases.

8* * *

9"Wholesale acquisition factor" shall mean a factor of 2.5
10applied to the wholesale profit margin of a brand of liquor in
11determining a wholesale license fee.

12"Wholesale licensee" shall mean a person that holds a wine
13and spirits wholesale license issued pursuant to section
14321.1-A.

15"Wholesale profit margin" shall mean, for any particular
16liquor product, twenty per centum of the total of costs of goods
17sold of the product in the Commonwealth over the most recent 12-
18month period for which information is available.

19* * *

20"Wine and spirits retail license" shall mean a license issued
21by the department or the board authorizing a person to sell and
22distribute wine and spirits to the public for off the premises
23consumption.

24"Wine and spirits wholesale license" shall mean a license
25issued by the department or the board authorizing a person to
26sell and distribute liquor on a wholesale basis to the board 
27until all retail licenses have been issued in accordance with 
28Article III-A and to retail licensees and other licensees under
29this act.

30* * *

1Section 2. Section 104(c) and (d) of the act, amended
2December 7, 1990 (P.L.622, No.160) and December 20, 1996
3(P.L.1513, No.196), is amended to read:

4Section 104. Interpretation of Act.--* * *

5(c) Except as otherwise expressly provided, the purpose of
6this act is to prohibit the manufacture of and transactions in
7liquor, alcohol and malt or brewed beverages which take place in
8this Commonwealth, except by and under the [control] regulatory
9authority of the board as herein specifically provided, and
10every section and provision of the act shall be construed
11accordingly; to provide a structure in this Commonwealth for a
12distribution system, including the [establishment of
13Pennsylvania liquor stores and] licensing of wine and spirits
14wholesalers, wine and spirits retailers, importing distributors
15and distributors; and to preserve manufacturers of liquor and
16alcohol and malt and brewed beverages selling those products
17within this Commonwealth. The provisions of this act dealing
18with the manufacture, importation, sale, distribution and
19disposition of liquor, alcohol and malt or brewed beverages
20within the Commonwealth through [the instrumentality of the
21board,] licensees and otherwise, provide the means by which such
22control shall be made effective. This act shall not be construed
23as forbidding, affecting or regulating any transaction which is
24not subject to the legislative authority of this Commonwealth.

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

1the sale of liquor and alcohol and malt and brewed beverages and
2the Commonwealth's promotion of its policy of temperance and
3responsible conduct with respect to alcoholic beverages would
4not be possible.

5* * *

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

9Section 207. General Powers of Board.--Under this act, the
10board shall have the power and its duty shall be:

11(a) To buy, import or have in its possession for sale and
12sell liquor, alcohol, corkscrews, wine and liquor accessories,
13trade publications, gift cards, gift certificates, wine- or
14liquor-scented candles and wine glasses in the manner set forth
15in this act: Provided, however, That all purchases shall be made
16subject to the approval of the State Treasurer, or his
17designated deputy. The board shall buy liquor and alcohol at the
18lowest price and in the greatest variety reasonably obtainable.
19The board's authority to exercise the powers granted pursuant to
20this subsection is subject to the limitations set forth in
21Article III-A of this act.

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

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

1exercise the powers granted pursuant to this subsection is
2subject to the limitations set forth in Article III-A of this
3act.

4[(c) To determine the municipalities within which
5Pennsylvania Liquor Stores shall be established and the
6locations of the stores within such municipalities.]

7(d) To grant and issue all licenses and to grant, issue,
8suspend and revoke all permits authorized to be issued under
9this act.

10(e) (1) Through the [Department of General Services]
11department as agent, to lease and furnish and equip such
12buildings, rooms and other accommodations as shall be required
13for the operation of this act.

14(2) The department shall not relocate a Pennsylvania Liquor
15Store after the effective date of this paragraph.

16(f) To appoint, fix the compensation and define the powers
17and duties of such managers, officers, inspectors, examiners,
18clerks and other employes as shall be required for the operation
19of this act, subject to the provisions of The Administrative
20Code of 1929 and the Civil Service Act.

21(g) To determine the nature, form and capacity of all
22packages and original containers to be used for containing
23liquor, alcohol or malt or brewed beverages.

24(h) Without in any way limiting or being limited by the
25foregoing, to do all such things and perform all such acts as
26are deemed necessary or advisable for the purpose of carrying
27into effect the provisions of this act and the regulations made
28thereunder.

29(i) From time to time, to make such regulations not
30inconsistent with this act as it may deem necessary for the

1efficient administration of this act. The board shall cause such
2regulations to be published and disseminated throughout the
3Commonwealth in such manner as it shall deem necessary and
4advisable or as may be provided by law. Such regulations adopted
5by the board shall have the same force as if they formed a part
6of this act.

7(j) By regulation, to provide for the use of a computerized
8referral system to assist consumers in locating special items at
9Pennsylvania Liquor Stores and for the use of electronic
10transfer of funds and credit cards for the purchase of liquor
11and alcohol at Pennsylvania Liquor Stores. The board's authority
12to exercise the powers granted pursuant to this subsection is
13subject to the limitations set forth in Article III-A of this
14act.

15(k) To issue grants to various entities for alcohol
16education and prevention efforts.

17(l) To close Pennsylvania Liquor Stores as directed under
18Article III-A of this act.

19(m) The board may implement a delivery system as a means of
20providing product to all licensees under this act.

21Section 4. The act is amended by adding a section to read:

22Section 207.1. Adjustment of Fees by Regulation.--(a)
23Notwithstanding any provision of this act or the act of April 9,
241929 (P.L.177, No.175), known as "The Administrative Code of
251929," to the contrary, all fees required under this act shall
26be fixed by the board by regulation and shall be subject to the
27act of June 25, 1982 (P.L.633, No.181), known as the "Regulatory
28Review Act."

29(b) The board shall be authorized to increase license fees
30by regulation under the following conditions:

1(1) If the revenues raised by the fees imposed under this
2act are not sufficient to meet all expenditures of the board
3over a two-year period, the board shall increase the fees by
4regulation, subject to the "Regulatory Review Act," so that the
5projected revenues will meet projected expenditures.

6(2) If the board determines that the fees established by the
7board under subsection (a) are inadequate to meet the minimum
8enforcement efforts required under this act, the board, after
9consultation with the enforcement bureau, and subject to the
10"Regulatory Review Act," shall increase the fees by regulation
11in an amount so that adequate revenues are raised to meet the
12required expenditures.

13(c) All acts or parts of acts are repealed insofar as they
14are inconsistent with this section.

15Section 5. Section 208 of the act is amended to read:

16Section 208. Specific Subjects on Which Board May Adopt
17Regulations.--Subject to the provisions of this act and without
18limiting the general power conferred by the preceding section,
19the board may make regulations regarding:

20[(a) The equipment and management of Pennsylvania Liquor
21Stores and warehouses in which liquor and alcohol are kept or
22sold, and the books and records to be kept therein.]

23(b) The duties and conduct of the officers and employes of
24the board.

25[(c) The purchase, as provided in this act, of liquor and
26alcohol, and its supply to Pennsylvania Liquor Stores.

27(d) The classes, varieties and brands of liquor and alcohol
28to be kept and sold in Pennsylvania Liquor Stores. In making
29this determination the board shall meet not less than twice a
30year.

1(e) The issuing and distribution of price lists for the
2various classes, varieties or brands of liquor and alcohol kept
3for sale by the board under this act.]

4(f) The labeling of liquor and alcohol sold under this act
5and of liquor and alcohol lawfully acquired by any person prior
6to January first, one thousand nine hundred thirty-four.

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

8(h) The issuance of licenses and permits and the conduct,
9management, sanitation and equipment of places licensed or
10included in permits.

11[(i) The place and manner of depositing the receipts of
12Pennsylvania Liquor Stores and the transmission of balances to
13the Treasury Department through the Department of Revenue.

14(j) The solicitation by resident or nonresident vendors of
15liquor from Pennsylvania licensees and other persons of orders
16for liquor to be sold through the Pennsylvania Liquor Stores
17and, in the case of nonresident vendors, the collection
18therefrom of license fees for such privilege at the same rate as
19provided herein for importers' licenses.]

20Section 5.1. Section 211(c) of the act, amended October 5,
211994 (P.L.537, No.80), is amended to read:

22Section 211. Enforcement.--* * *

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

1Administrative Code of 1929."

2* * *

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

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

6(e) The board is authorized to participate in or sponsor
7wine and spirits events for the purpose of educating consumers
8as to the wines and spirits available in this Commonwealth. The
9wine and spirits to be used for the event may be acquired
10through the State store system or may be donated from outside
11this Commonwealth. Participation in the tastings may be
12conditioned on the purchase of a ticket to the event. The event
13may include events occurring on premises licensed by the board,
14and the board may sell wine and spirits for off-premises
15consumption in an area designated by the board for such sale.]

16Section 7. Section 301 of the act is amended to read:

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

1a period of at least fifteen days following its determination by
2the board as required in section 403(g) of this act. The notice
3shall be posted in a conspicuous place on the outside of the
4premises in which the proposed store is to operate or, in the
5event that a new structure is to be built in a similarly visible
6location. If, within five days after the appearance of such
7advertisement, or of the last day upon which the notice was
8posted, fifteen or more taxpayers residing within a quarter of a
9mile of such location, or the City Solicitor of the city of the
10first class, shall file a protest with the court of common pleas
11of the county averring that the location is objectionable
12because of its proximity to a church, a school, or to private
13residences, the court shall forthwith hold a hearing affording
14an opportunity to the protestants and to the board to present
15evidence. The court shall render its decision immediately upon
16the conclusion of the testimony and from the decision there
17shall be no appeal. If the court shall determine that the
18proposed location is undesirable for the reasons set forth in
19the protest, the board shall abandon it and find another
20location. The board may establish, operate and maintain such
21establishments for storing and testing liquors as it shall deem
22expedient to carry out its powers and duties under this act],
23and subject to the limitations set forth in Article III-A of
24this act.

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

1of such stores or establishments.

2Section 7.1. Section 304 of the act, amended December 8, 
32004 (P.L.1810, No.239), is amended to read:

4Section 304. When Sales May Be Made at Pennsylvania Liquor
5Stores.--(a) Except as provided for in subsection (b), every
6Pennsylvania Liquor Store shall be open for business week days,
7except holidays as that term is defined in section 102. The
8board may, with the approval of the Governor, temporarily close
9any store in any municipality.

10(b) Certain Pennsylvania Liquor Stores operated by the board
11shall be open for Sunday retail sales between the hours of
12[noon] nine o'clock antemeridian and [five] nine o'clock
13postmeridian, except that no Sunday sales shall occur on Easter
14Sunday or Christmas day. The board shall open [up to twenty-five
15per centum of the total number of] Pennsylvania Liquor Stores at
16its discretion for Sunday sales as provided for in this
17subsection. The board shall submit yearly reports to the
18Appropriations and the Law and Justice Committees of the Senate
19and the Appropriations and the Liquor Control Committees of the
20House of Representatives summarizing the total dollar value of
21sales under this section.

22Section 8. Section 305 of the act, amended May 8, 2003
23(P.L.1, No.1), July 17, 2003 (P.L.63, No.15), May 8, 2003
24(P.L.1, No.1), December 8, 2004 (P.L.1810, No.239), July 6, 2005
25(P.L.135, No.39) and July 5, 2012 (P.L.1007, No.116), is amended
26to read:

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

1be sold. Every Pennsylvania Liquor Store shall be authorized to
2sell combination packages. If a person desires to purchase a
3class, variety or brand of liquor or alcohol not currently
4available from the board, he or she may place a special order
5for such item so long as the order is for two or more bottles.
6The board may require a reasonable deposit from the purchaser as
7a condition for accepting the order. The customer shall be
8notified immediately upon the arrival of the goods.

9In computing the retail price of such special orders for
10liquor or alcohol, the board shall not include the cost of
11freight or shipping before applying the mark-up and taxes but
12shall add the freight or shipping charges to the price after the
13mark-up and taxes have been applied.

14Unless the customer pays for and accepts delivery of any such
15special order within ten days after notice of arrival, the store
16may place it in stock for general sale and the customer's
17deposit shall be forfeited.

18During the retail divestiture process as provided in Article
19III-A, the board shall continue to take and process special
20liquor orders for residents and licensees of the board, and may
21establish a protocol by which pre-paid orders may be picked up
22at either a Pennsylvania Liquor Store or from the licensed
23premises of a wine and spirits retail licensee. A wine and
24spirits retail licensee is authorized to assess a handling fee
25for this purpose. Any product not claimed at a wine and spirits
26retail store by the purchaser shall be returned to the board
27after ten days notice of arrival was sent to the purchaser.

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

1licensees, grocery stores, hotels, restaurants, clubs, and
2railroad, pullman and steamship companies licensed under this
3act; and, under the regulations of the board, to pharmacists
4duly licensed and registered under the laws of the Commonwealth,
5and to manufacturing pharmacists, and to reputable hospitals
6approved by the board, or chemists. Sales to licensees shall be
7made at a price that includes a discount of [ten] fourteen per
8centum from the retail price. The board may sell to registered
9pharmacists only such liquors as conform to the Pharmacopoeia of
10the United States, the National Formulary, or the American
11Homeopathic Pharmacopoeia. The board may sell at special prices
12under the regulations of the board, to United States Armed
13Forces facilities which are located on United States Armed
14Forces installations and are conducted pursuant to the authority
15and regulations of the United States Armed Forces. All other
16sales by such stores shall be at retail. A person entitled to
17purchase liquor at wholesale prices may purchase the liquor at
18any Pennsylvania Liquor Store upon tendering cash, check or
19credit card for the full amount of the purchase. For this
20purpose, the board shall issue a discount card to each licensee
21identifying such licensee as a person authorized to purchase
22liquor at wholesale prices. Such discount card shall be retained
23by the licensee. The board may contract through the Commonwealth
24bidding process for delivery to wholesale licensees at the
25expense of the licensee receiving the delivery.

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

1thereof, plus all protest fees, to the maker of such check
2submitted to the board. Failure to pay the face amount of the
3check in full and all charges thereon as herein required within
4ten days after demand has been made by the board upon the maker
5of the check shall be cause for revocation or suspension of any
6license issued by the board to the person who issued such check
7and the cancellation of the wholesale purchase permit card held
8by such person.

9(d) No liquor or alcohol package shall be opened on the
10premises of a Pennsylvania Liquor Store. No manager or other
11employe of the board employed in a Pennsylvania Liquor Store
12shall allow any liquor or alcohol to be consumed on the store
13premises, nor shall any person consume any liquor or alcohol on
14such premises, except liquor and alcohol which is part of a
15tasting conducted pursuant to the board's regulations. Such
16tastings may also be conducted in the board's headquarters or
17regional offices.

18(e) The board may sell tax exempt alcohol to the
19Commonwealth of Pennsylvania and to persons to whom the board
20shall, by regulation to be promulgated by it, issue special
21permits for the purchase of such tax exempt alcohol.

22Such permits may be issued to the United States or any
23governmental agency thereof, to any university or college of
24learning, any laboratory for use exclusively in scientific
25research, any hospital, sanitorium, eleemosynary institution or
26dispensary; to physicians, dentists, veterinarians and
27pharmacists duly licensed and registered under the laws of the
28Commonwealth of Pennsylvania; to manufacturing chemists and
29pharmacists or other persons for use in the manufacture or
30compounding of preparations unfit for beverage purposes.

1(f) Every purchaser of liquor, alcohol, corkscrews, wine or
2liquor accessories, trade publications, gift cards, gift
3certificates, wine- or liquor-scented candles or wine glasses
4from a Pennsylvania Liquor Store shall receive a numbered
5receipt which shall show the price paid therefor and such other
6information as the board may prescribe. Copies of all receipts
7issued by a Pennsylvania Liquor Store shall be retained by and
8shall form part of the records of such store.

9[(g) The board is hereby authorized and empowered to adopt
10and enforce appropriate rules and regulations to insure the
11equitable wholesale and retail sale and distribution, through
12the Pennsylvania Liquor Stores, of available liquor and alcohol
13at any time when the demand therefor is greater than the
14supply.]

15(h) Every Pennsylvania Liquor Store shall sell gift
16certificates and gift cards which may be redeemed for any
17product sold by the board. In addition, the board may sell
18corkscrews, wine and liquor accessories, wine- or liquor-scented
19candles, trade publications and wine sleeves at Pennsylvania
20Liquor Stores.

21(i) Notwithstanding any other provision of law to the
22contrary, the board may sell wine in containers having a
23capacity of sixty liters or less.

24Section 9. The act is amended by adding an article to read:

25ARTICLE III-A

26WINE AND SPIRITS DISTRIBUTION

27SUBARTICLE A

28GENERAL PROVISIONS

29Section 301-A. Scope of article.

30This article relates to the privatization of liquor

1distribution in this Commonwealth.

2Section 302-A. Legislative intent.

3The General Assembly finds and declares as follows:

4(1) The wholesale and retail of liquor should no longer
5be by the Commonwealth, but rather by private persons
6licensed and regulated by the Commonwealth.

7(2) The health and welfare of the citizens of this
8Commonwealth will be adequately protected by the regulation
9of private licensees through strict enforcement of laws and
10rules relating to the purchase and sale of liquor.

11(3) The sale of liquor through wholesale and retail
12licensees will provide residents with improved customer
13convenience, and will provide an opportunity for competitive
14pricing and enhanced product selection.

15(4) Modernization of the retail sale of wine and spirits
16through new outlets for consumption off the premises will
17further enhance customer convenience.

18(5) This article will improve operation and efficiency
19of State government.

20(6) The authorization of wine and spirits wholesale and
21retail licenses is intended to continue the generation of
22revenue to the Commonwealth related to the wholesale and
23retail sale of liquor.

24(7) The transition to a privately-owned and privately-
25operated wholesale and retail liquor distribution system
26should be accomplished in a manner that protects the public
27through regulation and policing of all activities involved in
28the wholesale and retail sale of liquor.

29(8) The establishment of wine and spirits wholesale and
30retail licenses is intended to provide broad economic

1opportunities to the citizens of this Commonwealth and to be
2implemented in such a manner as to prevent monopolization by
3establishing reasonable restrictions on the control of
4wholesale and retail licensees.

5(9) The transition to a privately-owned and privately-
6operated wholesale and retail liquor distribution system
7should be accomplished in a manner that minimizes disruption
8of services to the public.

9(10) In conjunction with the transition to privately-
10owned and privately-operated liquor wholesalers and retail
11liquor stores, this article is intended to modernize the
12retail sale of wine and spirits through new outlets for
13consumption off the premises, further enhancing customer
14convenience.

15(11) With the transition to a privately-owned and
16privately-operated wholesale and retail liquor distribution
17system, and with the addition of new licensing
18classifications, it is necessary to enhance alcohol education
19and enforcement efforts to:

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

21(ii) prevent and combat the illegal consumption of
22alcohol by minors and visibly intoxicated persons; and

23(iii) discourage the intemperate use of alcohol.

24(12) Participation in the wholesale and retail sale of
25liquor by a wholesale or retail licensee is a privilege,
26conditioned upon the proper and continued qualification of
27the licensee and upon the discharge of the affirmative
28responsibility of the licensee to provide the department and
29the board with assistance and information necessary to assure
30that the policies declared by this article are achieved.

1Section 303-A. Transition to private distribution system,
2powers and duties of the department and the board.

3(a) Orderly transition.--The department and the board have
4the power and duty to implement this article and effect an
5orderly transition to a privately-owned and privately-operated
6wholesale and retail liquor distribution system in this
7Commonwealth in a manner which is consistent with this article
8and the laws of this Commonwealth and which seeks to maintain
9uninterrupted service to the public.

10(b) Retail transition.--

11(1) The board, in consultation with the department, 
12shall have the authority to issue wine and spirits retail 
13licenses and wine and spirits wholesale licenses, provided 
14that the wine and spirits wholesale licenses are not issued 
15until one year after the effective date of this section. The 
16department shall contract with financial, legal and other 
17advisors as are necessary to assist the department and the 
18board in effectuating the addition of this article. Such 
19contracts shall not be subject to the provisions of 62 
20Pa.C.S. Ch. 5 (relating to source selection and contract 
21formation).

22(2) The divestiture of the board's retail operations
23shall be accomplished through the issuance of 1,200 wine and
24spirits retail licenses that shall be allocated by county.
25As the State liquor stores wind down operations, six hundred 
26wine and spirits retail licenses may be issued by the board 
27which shall be allocated by county. The additional licenses 
28shall be issued if the department determines, in cooperation 
29with the board, that the retail licenses are necessary for 
30consumer convenience. After the determination, the retail
 

1licenses shall be issued first to distributor licensees and 
2then on a first-come, first-served basis. Each successful
3applicant shall be thoroughly investigated to determine
4whether the person is a reputable and responsible person
5suitable to be licensed to sell liquor in this Commonwealth.

6(3) As licenses are awarded in a given county, the board 
7shall determine the necessity of winding down operations in 
8State stores in the county and, as it becomes necessary,
9terminate applicable lease agreements, redistribute or
10furlough store personnel and dispose of remaining inventory
11and store property.

12(c) Wholesale transition.--

13(1) Twelve months after the effective date of this 
14section, in consultation with its advisors and the board, the
15department shall transition the board's wholesale
16distribution of liquor to privately-owned and privately-
17operated wholesale licensees.

18(2) The divestiture of the board's wholesale operations
19shall be accomplished through the issuance of wine and
20spirits wholesale licenses by brand of liquor, which shall be
21subject to an application process as set forth in this
22article. The transition must fully divest the board of all
23operations relating to the wholesale distribution of liquor
24within six months of the commencement of wholesale 
25divestiture.

26(d) Cooperation required.--

27(1) The board shall fully cooperate with the department
28or its advisors in all aspects of implementation of this
29article and shall provide the department or its consultant
30with all records and information in the possession of the

1board upon request.

2(2) The board shall devote sufficient resources to
3planning and preparation for the divestiture of its wholesale
4and retail functions.

5(3) The board shall use its best efforts in coordinating
6with the department or its advisors, wine and spirits retail
7licensees and wine and spirits wholesale licensees so as to
8maintain uninterrupted service to the residents of this
9Commonwealth during divestiture.

10(e) Prohibition.--The board shall not engage in wholesale
11distribution of liquor following completion of the wholesale
12transition to a private distribution system.

13Section 304-A. Reports to the General Assembly.

14One year after the effective date of this section, and each
15year thereafter until the board has been fully divested of its
16wholesale and retail operations, the board, in cooperation with
17the department, shall submit to the Secretary of the Senate and
18the Chief Clerk of the House of Representatives, a report on
19wholesale and retail alcohol sales in this Commonwealth and the
20implementation of this article, including:

21(1) the total revenue earned by the issuance of licenses
22under this article;

23(2) the distribution and sale of brands through private
24wholesalers;

25(3) the net profit or loss of each wine and spirits
26retail licensed premise and State liquor store in this
27Commonwealth; and

28(4) the status of the ongoing transition, including
29store closures and employee displacement.

30Section 305-A. Temporary regulations.

1(a) Promulgation.--In order to facilitate the prompt
2implementation of this article, regulations promulgated by the
3department shall be deemed temporary regulations which shall
4expire no later than five years following the effective date of
5this section. The department may promulgate temporary
6regulations not subject to:

7(1) sections 201, 202 and 203 of the act of July 31,
81968 (P.L.769, No.240), referred to as the Commonwealth
9Documents Law; or

10(2) the act of June 25, 1982 (P.L.633, No.181), known as
11the Regulatory Review Act.

12(b) Expiration.--The authority provided to the department to
13adopt temporary regulations under subsection (a) shall expire on
14January 1, 2018.

15SUBARTICLE B

16WINE AND SPIRITS RETAIL LICENSES

17Section 311-A. Issuance of wine and spirits retail licenses,
18fees, taxes.

19(a) Sale of retail licenses.--The board may award not more
20than 1,200 wine and spirits retail licenses to qualified
21applicants, provided that when the State stores close in a given
22county because the wine and spirits retail licenses have
23commenced operation, the department, in cooperation with the
24board, shall determine if it is necessary to issue additional
25wine and spirits retail licenses for customer convenience and
26access. If the department determines more wine and spirits
27retail licenses are needed, the department may authorize the
28board to issue not more than 600 additional wine and spirits
29retail licenses.

30(b) License classification.--Wine and spirits retail

1licenses shall be awarded as follows:

2(1) For the first 12 months after the enactment of this
3section, the board shall receive applications from
4distributor licensees licensed under section 431. A
5distributor licensee applying for a wine and spirits retail
6license must operate out of a facility with a minimum of
71,500 square feet of retail space and dedicate a minimum of
850% of shelf space for the sale of malt and brewed beverages.

9(2) At the conclusion of the 12-month period under
10paragraph (1), the board may issue the remaining wine and
11spirits retail licenses on a first-come, first-served basis.
12A private wine and spirits retail licensee must operate in a
13facility with not less than 1,500 square feet of retail
14space.

15(c) License allocation.--

16(1) The board, in consultation with the department and
17its advisors, shall allocate the aggregate number of wine and
18spirits retail licenses to be available in each county.

19(2) A county may not be allocated fewer wine and spirits
20retail licenses than the number of licensed distributors in
21the county provided that the wine and spirits retail licenses
22shall be evenly distributed throughout the county on a per
23capita basis.

24(3) A wine and spirits retail licensee may determine
25whether it will sell wine or spirits or both. If a wine and
26spirits retail licensee elects to sell either wine or
27spirits, the board shall consider that one wine and spirits
28retail license and only the licensee will have the ability to
29pay an additional fee in the future to sell both wine and
30spirits.

1(d) License application.--An applicant for a wine and
2spirits retail license shall file a written application with the
3board in the form and containing the information as the board
4shall prescribe from time to time, which must be accompanied by
5a filing fee and license fee as prescribed under subsection (f).
6An application must contain:

7(1) a description of the part of the premises for which
8the applicant desires a license;

9(2) whether the applicant desires to sell wine, spirits
10or both on the licensed premises. Notwithstanding any other
11provision of this act, an applicant that chooses to sell wine
12or spirits may make application at a later date to the board
13to sell both products and be granted that authority after
14paying the proper fees; and

15(3) other information that the board may prescribe.

16The board may not require physical alterations, improvements or
17changes to the licensed premises until the wine and spirits
18license application has been approved.

19(e) Other licenses.--Nothing in this act shall prohibit a
20wine and spirits retail licensee from receiving:

21(1) a distributor license under section 431 that
22authorizes the licensee to sell malt and brewed beverages for
23consumption off the premises;

24(2) a restaurant liquor license or a retail dispenser
25license as long as the restaurant or retail dispenser does
26not have an interior connection to or with the wine and 
27spirits retail licensed premises; or

28(3) an importing distributor license under section 431
29that authorizes the licensee to sell malt or brewed beverages
30at wholesale so long as the importing distributor does not

1obtain a wine and spirits wholesale license.

2(f) License fees.--The fees for a wine and spirits retail
3license are as follows:

4(1) For a distributor licensed under section 431 making
5application for a wine and spirits retail license:

6(i) For the privilege of selling wine, the board
7shall require the following fees:

8(A) For a county of the first or second class,
9$30,000.

10(B) For a county of the second class A or third
11class, $37,500.

12(C) For a county of the fourth or fifth class,
13$22,500.

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

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

17(ii) For the privilege of selling spirits, the board
18shall require the following fees:

19(A) For a county of the first or second class,
20$52,500.

21(B) For a county of the second class A or third
22class, $60,000.

23(C) For a county of the fourth or fifth class,
24$45,000.

25(D) For a county of the sixth or seventh class,
26$37,500.

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

28(iii) For the privilege of selling both wine and
29spirits, the board shall require a fee equal to the sum
30of the fees listed above by county. Nothing in this act

1shall prevent a licensee who initially makes application
2to sell either wine or spirits from adding the other
3product at a later date so long as application is made to
4the board and the proper fees are paid.

5(2) For an unlicensed entity making application for a
6wine and spirits retail license:

7(i) For the privilege of selling wine, the board
8shall require the following fees:

9(A) For a county of the first or second class,
10$165,000.

11(B) For a county of the second class A or third
12class, $187,500.

13(C) For a county of the fourth or fifth class,
14$142,500.

15(D) For a county of the sixth or seventh class,
16$120,000.

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

18(ii) For the privilege of selling spirits, the board
19shall require the following fees:

20(A) For a county of the first or second class,
21$232,500.

22(B) For a county of the second class A or third
23class, $262,500.

24(C) For a county of the fourth or fifth class,
25$202,500.

26(D) For a county of the sixth or seventh class,
27$172,500.

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

29(iii) For the privilege of selling both wine and
30spirits, the board shall require a fee equal to the sum

1of the fees listed above by county. Nothing in this act
2shall prevent a licensee who initially makes application
3to sell either wine or spirits from adding the other
4product at a later date so long as application is made to
5the board and the proper fees are paid.

6(3) A restaurant or hotel licensee in good standing that
7applies for a retail wine and spirits license shall pay the
8same amount for the license as a distributor.

9(4) The board may not require a distributor making
10application for a wine and spirits retail license to pay the
11fees in full prior to issuance of the license. A distributor
12making application for a wine and spirits license has 48
13months from the issuance of the license to pay to the board
14the licensing fees plus a fee of 5%. If the licensee fails to
15make a payment to the board on a monthly basis, the board
16shall revoke the wine and spirits retail license and offer it
17on a first-come, first-served basis.

18Section 312-A. Postqualification of selected applicants.

19(a) Investigation.--Upon selection of an applicant under
20section 303-A, the Bureau of Licensing of the board shall
21conduct an investigation of an applicant based upon the
22information submitted to evaluate whether:

23(1) the applicant qualifies as a reputable, responsible
24and suitable person to hold a wine and spirits retail license
25and operate a wine and spirits store;

26(2) the applicant proposes an acceptable facility and
27location for a wine and spirits store; and

28(3) the planned operation of the applicant complies with
29this article.

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

1(1) require additional information from an applicant;
2and

3(2) conduct onsite inspections, as necessary, to
4complete the postqualification process.

5(c) Agreement.--The board may enter into an agreement with
6the Pennsylvania State Police or the Office of Inspector General
7to:

8(1) assist the board in the conduct of an investigation
9under this section; and

10(2) provide for the reimbursement of a cost incurred for
11providing assistance.

12(d) Protocol for objections.--The board shall establish
13protocol for receiving written objections from residents,
14churches, hospitals, charitable institutions, schools and public
15playgrounds that are located near a proposed wine and spirits
16store location. The board may consider a written objection in
17the postqualification investigation of applicants. An objector
18under this paragraph may not appeal the decision of the board.

19(e) Investigative fee.--The board may charge a fee to an
20applicant to recover the costs directly related to the board's
21investigation within the postqualification process.

22(f) Acceptance of qualifications.--The qualifications of an
23applicant shall be accepted by the board if the investigation by
24the board reveals the following:

25(1) the applicant and its officers, directors and
26principals, if any, are of good repute, responsible and
27suitable for operating a wine and spirits store; and

28(2) the applicant possesses sufficient financial
29resources to:

30(i) operate a wine and spirits store;

1(ii) pay taxes due; and

2(iii) meet financial obligations;

3(3) the applicant possesses sufficient business
4experience to operate a wine and spirits store;

5(4) the proposed facilities comply with the operational
6requirements of the statement of conditions under this
7article; and

8(5) the proposed location within the community is
9suitable.

10(g) Issuance of license.--If a selected applicant's
11qualifications are accepted by the board, the board shall
12qualify the applicant and issue a wine and spirits retail
13license to the applicant upon the occurrence of the following:

14(1) execution and delivery to the board of the statement
15of conditions required under section 313-A;

16(2) payment of the license fee by certified check or
17wire transfer to a designated restricted account established
18in the State Stores Fund. A distributor licensed under
19section 431 that obtains a wine and spirits retail license
20has 48 months to pay the license fee;

21(3) payment of an outstanding investigation fee; and

22(4) fulfillment of other conditions required by the
23board.

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

29(i) License not entitlement.--

30(1) This article is not intended to establish an

1entitlement to a wine and spirits retail license. A wine and
2spirits retail license is a privilege between the board and
3the licensee.

4(2) Between the licensee and a third party, a wine and
5spirits retail license is property.

6(j) Terms of licensure.--

7(1) A wine and spirits retail license is in effect
8unless the board:

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

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

13(2) A wine and spirits retail license is subject to
14renewal every two years consistent with this article.

15(3) This subsection does not relieve a wine and spirits
16retail licensee of the affirmative duty to notify the board
17of a change relating to the status of its license or to other
18information contained in the application materials on file
19with the board.

20Section 313-A. Wine and spirits retail licensee statement of
21conditions.

22(a) Statement of conditions.--The board shall develop a
23statement of conditions to be executed by a wine and spirits
24retail licensee governing the operations of the wine and spirits
25licensee.

26(b) Conditions.--In addition to other conditions the board
27deems necessary or appropriate for a specific wine and spirits
28retail licensee, a statement of conditions under this section
29shall include, at a minimum, the following conditions and impose
30the following obligations and requirements:

1(1) Under section 493.2, a wine and spirits retail
2licensee may not sell or distribute liquor to an individual
3under 21 years of age or to an individual who is visibly
4intoxicated.

5(2) A wine and spirits retail licensee may not operate a
6retail wine and spirits store located within:

7(i) three hundred feet of an elementary or secondary
8school without the approval of the department or board;
9or

10(ii) a municipality that voted to preclude the
11establishment of a State liquor store, unless the
12municipality subsequently votes to permit the board to
13issue a wine and spirits retail license.

14(3) A wine and spirits retail licensee's wine and
15spirits store and the facilities involved in its retail
16operations, including a change to the facilities during the
17term of the license, are subject to:

18(i) inspection and investigation by the board and
19enforcement bureau; and

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

21(4) A wine and spirits retail licensee shall maintain
22adequate security to protect the licensee's inventory from
23unauthorized sale or diversion and prevent its unauthorized
24distribution.

25(5) Unless specifically authorized in this act or with
26the prior approval of the board, a wine and spirits retail
27licensee may not engage in a separate business activity upon
28a licensed premises where retail liquor operations are
29conducted.

30(6) A wine and spirits retail licensee shall notify the

1board within 15 days of a change in persons holding an
2interest in the wine and spirits license.

3(7) A wine and spirits retail licensee shall notify the
4board within 15 days of becoming aware of an arrest, criminal
5indictment or conviction by the following:

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

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

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

9(iv) if the licensee is a corporation, an officer, a
10director or a shareholder in the corporation; and

11(v) an affiliate of the licensee.

12(8) A wine and spirits retail licensee shall notify the
13board within 15 days of becoming aware of a violation of this
14article by an individual listed in paragraph (7).

15(9) The premises of a wine and spirits store must be a
16self-contained unit with limited customer access dedicated to
17the sale of liquor and related merchandise. Except for a
18licensee that also holds a distributor license, a wine and
19spirits store may not have an interior connection with
20another business or with a residential building except as
21approved by the board. A purchase of wine and spirits must be
22paid for at a location within the confines of the licensed
23premises.

24(10) A wine and spirits retail licensee shall configure
25its premises in a manner and with adequate safeguards to
26ensure that:

27(i) liquor products are secure; and

28(ii) the licensed area may not be accessed during
29prohibited hours of operation.

30(11) A wine and spirits retail licensee may not hold,

1directly or indirectly, more than five wine and spirits
2retail locations within this Commonwealth or more than one
3wine and spirits retail license within a county.

4(12) A wine and spirits store may sell liquor for
5consumption off the premises and related merchandise within
6the licensed area of the store. A sale of related merchandise
7within the licensed area may not exceed 30% of the gross
8annual sales of a wine and spirits store. Unless the wine and
9spirits retail licensee operates another license that
10authorizes the sale of malt and brewed beverages for
11consumption off the premises in the same licensed area, a
12wine and spirits store may not sell malt or brewed beverages
13within its licensed premises.

14(13) A wine and spirits retail licensee shall make the
15premises and the facilities involved in the retail operation
16and the business and financial books and records of the
17retail operation available at any time for inspection and
18audit by the board and the enforcement bureau. The board
19shall promulgate regulations regarding the records that a
20wine and spirits retail licensee must maintain in its
21licensed premises.

22(14) A wine and spirits retail licensee may sell wine or
23spirits between 9 a.m. and 11 p.m. of any day except Sunday
24to a person that is not licensed under this act.

25(15) In addition to the hours authorized under paragraph
26(14), a wine and spirits retail licensee may, upon purchasing
27a permit from the board at an annual fee of $1,000, sell wine
28or spirits on Sunday between the hours of 9 a.m. and 9 p.m.
29to persons not licensed under this act.

30(16) A wine and spirits retail licensee may not employ

1an individual under 18 years of age to work on the licensed
2premises. An employee of a wine and spirits retail licensee
3under 21 years of age may not engage in the sale of liquor.

4(17) A wine and spirits retail licensee that is a
5corporation, a limited liability company, a limited
6partnership, a partnership, an association or other legal
7entity must be organized under the laws of this Commonwealth.

8(18) A wine and spirits retail licensee who is an
9individual must be a citizen of the United States and a
10resident of this Commonwealth.

11(19) A wine and spirits retail licensee shall:

12(i) comply with the responsible alcohol management
13program training under section 471.1; and

14(ii) ensure that the wine and spirits store managers
15and employees who may engage in the sale of liquor attend
16the responsible alcohol management training within six
17months of commencing employment.

18(20) A wine and spirits retail licensee may place its
19license in safekeeping for a period not to exceed two years:

20(i) pending transfer of the license from person-to-
21person or place-to-place or both; or

22(ii) during renovation of the premises where retail
23operations are conducted.

24(21) A wine and spirits retail license that remains in
25safekeeping for a period that exceeds two years shall be
26forfeited and resold by the board in a manner consistent with
27this subarticle.

28(22) Except as set forth in paragraph (16), an
29individual under 21 years of age may not enter the licensed
30area of a wine and spirits retail licensee unless accompanied

1by an adult.

2(23) A wine and spirits retail licensee shall utilize a
3transaction scan device to verify the age of an individual
4who appears to be under 35 years of age before making a sale
5of liquor. A wine and spirits retail licensee may not sell or
6share data from the use of a transaction scan device provided
7that the licensee may use the data to show the board or
8enforcement bureau that the licensee is in compliance with
9this article. As used in this paragraph, the term
10"transaction scan device" means a device capable of
11deciphering, in an electronically readable format, the
12information encoded on the magnetic strip or bar code of an
13identification card under section 495(a).

14(24) A wine and spirits retail licensee may not sell a
15liquor product at a price less than its underlying cost.

16(25) A wine and spirits retail licensee may not provide
17tasting samples of liquor on the premises where retail
18operations are conducted except in the manner set forth in
19the board's regulations related to tasting samples provided
20by sponsors.

21(26) A wine and spirits retail licensee may not require
22a customer to purchase a membership or pay a fee in order to
23purchase products, including wine and spirits, from the
24premises.

25(27) In an inquiry or investigation by the board or the
26enforcement bureau, a wine and spirits retail licensee shall
27cooperate fully and provide requested information.

28(c) Sanctions.--

29(1) A wine and spirits retail licensee that fails to
30abide by a condition contained in the licensee's statement of
 

1conditions or commits a violation of this act or other
2Federal or State law is subject to citation by the
3enforcement bureau.

4(2) A citation under paragraph (1) may result in:

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

6(ii) nonrenewal of a license;

7(iii) revocation of operating authority; or

8(iv) another penalty authorized under sections 471
9and 494.

10SUBARTICLE C

11DIVESTITURE OF WHOLESALE LIQUOR DISTRIBUTION

12Section 321-A. Wholesale divestiture.

13(a) Utilization.--In effectuating the intent of this
14article, the department shall utilize the authority provided
15under section 305-A and any other powers of the department, with
16the full cooperation and assistance of the board.

17(b) Establishment.--On the effective date of this section,
18the department shall establish all of the following:

19(1) An application process and schedule for the
20investigation and award of wine and spirits wholesale
21licenses under this article.

22(2) A blended brand valuation for each brand of liquor
23available for sale in this Commonwealth.

24(3) Procedures and standards governing the relationship
25between wine and spirits wholesale licensees and
26manufacturers and the ability and terms upon which that
27relationship may be terminated.

28(c) Coordination.--

29(1) The department shall:

30(i) coordinate scheduling so that wine and spirits

1wholesale license applications may be received, processed
2and investigated by the board's Bureau of Licensing
3during the retail divestiture process; and

4(ii) begin a coordinated effort to allow the board
5to issue licenses 12 months from the effective date of 
6this section.

7(2) The department must fully divest the board of all
8operations relating to the wholesale distribution of liquor
9within six months of commencing wholesale divestiture.

10Section 321.1-A. Issuance of wine and spirits wholesale
11licenses.

12(a) Authorization.--The board may issue wine and spirits
13wholesale licenses under the following conditions:

14(1) The following shall apply:

15(i) One wine and spirits wholesale license may be
16issued by the board to each qualified applicant.

17(ii) A wine and spirits wholesale license shall
18authorize the holder to sell and distribute brands of
19liquor, as proposed by an applicant and approved by the
20department, to wine and spirits retail licensees and
21other licensees of the board authorized to sell or
22distribute liquor under this act, to United States Armed
23Forces facilities located on United States Armed Forces
24installations within this Commonwealth and to the holder
25of a wholesale alcohol purchase permit issued by the
26board.

27(iii) The alcoholic products shipped into this 
28Commonwealth must be delivered to the wholesaler's 
29licensed premises. Upon delivery, the products shall be 
30unloaded, inventoried and remain on the licensed premises
 

1for 48 hours before delivery is made to a retailer. 
2During that time period, the board may inspect and 
3inventory wholesale warehouses to verify taxes that are 
4required to be paid on the products.

5(2) Subject to the conditions and restrictions of this
6subarticle, wine and spirits wholesale licensees may sell and
7distribute more than one brand of liquor under the same wine
8and spirits wholesale license.

9(3) Upon application by a wine and spirits wholesale
10licensee, the board may amend its initial authorization under
11a wine and spirits wholesale license to include additional
12brands of liquor or exclude previously-approved brands of
13liquor.

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

15(1) On the effective date of this section, the
16department shall determine the wine and spirits wholesale
17license fee for each brand of liquor sold at wholesale by the
18board through its State liquor stores or via special liquor
19order for a continuous period of at least one year. The
20license fee shall be equal to the blended brand valuation for
21each brand of liquor authorized by the wine and spirits
22wholesale license multiplied by the wholesale acquisition
23factor.

24(2) The department shall publish a notice on its
25Internet website of the wine and spirits wholesale license
26fee for each brand of liquor determined under paragraph (1).
27The department shall establish deadlines within which an
28applicant must submit an application for a wine and spirits
29wholesale license for the brands of liquor specified by the
30applicant.

1(3) The department must receive the required license fee
2for the brands of liquor specified by the applicant before a
3wine and spirits wholesale license is issued by the board to
4a successful applicant.

5(c) Brands not previously sold.--

6(1) For brands of liquor that have not been sold by the
7board at State liquor stores or via special liquor order for
8a continuous period of at least one year, the department
9shall calculate the blended brand valuation utilizing sales
10data for any portion of the year that the brand was sold in
11this Commonwealth, after consulting with the board on the
12most recent sales trends of the brand, both within and
13outside this Commonwealth.

14(2) If, during the term of a wine and spirits wholesale
15license, a wine and spirits wholesale licensee proposes to
16sell and distribute a new brand of liquor not previously sold
17in this Commonwealth, the wine and spirits wholesale licensee
18shall apply to the board for permission to sell the brand and
19pay an additional license fee determined in accordance with
20this section. In calculating the blended brand valuation for
21the new products, the board shall evaluate available sales
22data in other markets or sales trends of similar products
23either within or outside this Commonwealth.

24(d) Term.--

25(1) A wine and spirits wholesale license, after payment
26of the required license fee, shall be in effect unless
27suspended, revoked or not renewed under this article.

28(2) The license of a wine and spirits wholesale licensee
29in good standing shall be renewed every two years under this
30article.

1(3) Nothing under this subsection shall be construed to
2relieve a wine and spirits wholesale licensee of the
3affirmative duty to notify the board of changes relating to
4any of the following:

5(i) The status of its license.

6(ii) Information contained in the application
7materials on file with the department or the board.

8Section 322-A. Application for wine and spirits wholesale
9license.

10(a) Applications.--An application for a wine and spirits
11wholesale license shall be submitted on a form and in a manner
12as required by the board.

13(b) Eligibility.--A person may be eligible to apply for a
14wine and spirits wholesale license if the person satisfies all
15of the following:

16(1) Neither the applicant nor any affiliate of the
17applicant has applied for or holds a wine and spirits retail
18license or other license which authorizes the retail sale of
19wine and spirits to consumers.

20(2) The applicant is organized under the laws of this
21Commonwealth if it is any of the following:

22(i) A corporation.

23(ii) A limited liability company.

24(iii) A limited partnership.

25(iv) A partnership.

26(v) An association.

27(vi) A legal entity other than a legal entity listed
28under this paragraph.

29(3) The applicant is a citizen of the United States and
30a resident of this Commonwealth if that applicant is a

1natural person.

2(4) Neither the applicant nor any affiliate of the
3applicant, executive officer, director or general or limited
4partner of the applicant or person holding, directly or
5indirectly, a controlling interest in the applicant has been
6convicted of a crime listed under subsection (d)(10).

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

8(1) A properly licensed importing distributor of malt
9and brewed beverages from applying for and, if approved,
10being issued a wine and spirits wholesale license.

11(2) The holder of a limited winery license, a limited
12distillery license or a distillery license issued by the
13board from acquiring a wine and spirits wholesale license.

14(d) General requirements.--In addition to any other
15information required under this article or by the department or
16the board, the applicant for a wine and spirits wholesale
17license shall include the following:

18(1) The name, address and tax identification number of
19the applicant.

20(2) A statement as to whether the applicant is an
21individual, corporation, limited liability company, limited
22partnership, partnership or association and, if the applicant
23is not an individual, the state of incorporation or
24organization.

25(3) If the applicant is not an individual, the name and
26residence address of each executive officer, director,
27general or limited partner or person holding a controlling
28interest in the applicant.

29(4) If the applicant is an association, the name and
30residence address of each person constituting the

1association.

2(5) A list of the brands of liquor the applicant
3proposes to engage in wholesale distribution on a Statewide
4basis.

5(6) A sworn statement that the applicant has entered
6into a contractual relationship with one or more liquor
7manufacturers, importers or vendors of record for the
8distribution in this Commonwealth of a brand or brands of
9liquor, regardless of whether the contractual relationship is
10contingent upon the board issuing a wine and spirits
11wholesale license to the applicant.

12(7) The proposed location and proof of ownership or
13lease for the wholesale operation, including proposed
14warehouses, if available.

15(8) Floor plans for any facility proposed to be used in
16wholesale operations and existing design plans for any
17facility that is planned, but not yet constructed, to the
18extent the floor plans are available.

19(9) Information disclosing all arrests of and all
20citations issued for nonsummary offenses to an applicant and
21any affiliate of the applicant, executive officer, director
22or general or limited partner of the applicant or person
23holding a controlling interest in the applicant. The
24information shall include:

25(i) A brief description of the circumstances
26surrounding the arrest or issuance of the citation.

27(ii) The specific offense charged or cited.

28(iii) The ultimate disposition of the charge or
29citation, including the details of a dismissal, plea
30bargain, conviction, sentence, pardon, expungement or

1order of Accelerated Rehabilitative Disposition.

2(10) A sworn statement that the applicant and any
3affiliate of the applicant, or any executive officer,
4director or general or limited partner of the applicant or
5person holding a controlling interest in the applicant have
6never been convicted:

7(i) of a crime involving fraud, moral turpitude or
8racketeering within a period of ten years immediately
9preceding the date of the application;

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

11(iii) in a Federal or state tribunal, including this
12Commonwealth, of the violation of a Federal or state
13liquor law.

14(11) A statement that the applicant intends to
15continuously operate as a wine and spirits wholesale licensee
16for the duration of the license term and to use its best
17efforts to provide a level of service, including product
18availability, reasonably equivalent to the level of service
19currently provided by the Commonwealth.

20(12) A financial statement or letter of credit in a form
21and containing information determined by the department to
22indicate the applicant's financial capability to operate the
23wholesale operation and the estimated volume of wholesale
24business to be conducted annually.

25(13) A current tax certificate issued by the Department
26of Revenue showing the amount of taxes owed to the
27Commonwealth for the applicant and any affiliate of the
28applicant, executive officer, director or general or limited
29partner of the applicant or person holding a controlling
30interest in the applicant.

1(14) A signature and verification by oath or affirmation
2or under penalty of unsworn falsification to authorities by
3one of the following:

4(i) The applicant, if the applicant is a natural
5person.

6(ii) A person specifically authorized by the legal
7entity to sign the application, if the applicant is a
8legal entity. Written evidence of the authority to sign
9must be attached to the signature and verification.

10(e) Additional information.--An applicant shall, during the
11application process, provide any other information determined to
12be appropriate by the department.

13(f) Amended application.--If a change occurs in any
14information provided to the department or the board as part of
15the application process, the applicant shall immediately notify
16the department or the board of the change and timely provide
17amended information to the department or the board in a form and
18manner determined by the department or the board.

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

20(1) An application filing fee of $10,000 shall be due
21upon application for a wine and spirits wholesale license.
22The application filing fee shall be refunded if, due to no
23fault of the applicant, the wine and spirits wholesale
24license is not approved.

25(2) The department shall establish, charge and collect
26fees from an applicant to recover the costs directly related
27to the board's review and investigation of the application
28for a wine and spirits wholesale license. The board shall
29have the same authority relating to fees as to applications
30for renewal.

1Section 323-A. Review and investigation of application.

2(a) Completeness of application.--

3(1) The following shall apply:

4(i) The department may not consider an incomplete
5application and shall notify the applicant in writing if
6an application is incomplete.

7(ii) An application shall be considered incomplete
8if it does not include all applicable fees and all
9information and accompanying documentation required by
10the department. Unpaid taxes identified on the tax 
11certificate required to be filed under section 
12322-A(d)(13) must be paid before the application is 
13considered complete.

14(2) A notification of incompleteness shall state the
15deficiencies in the application that must be corrected prior
16to consideration of the merits of the application.

17(3) The applicant must be afforded a reasonable period
18of time, as determined by the department, to cure the
19deficiencies.

20(4) If the applicant fails to timely cure noticed
21deficiencies within the time specified by the department, the
22application shall be deemed denied by the department without
23further action.

24(b) Investigation.--After receipt of an application for a
25wine and spirits wholesale license and a determination that the
26application is complete, the department shall provide the
27application to the board's Bureau of Licensing to conduct an
28investigation of the applicant. The investigation shall include
29and the applicant shall have the burden of demonstrating the
30following:

1(1) The truth and veracity of the information provided
2in the application.

3(2) The applicant's cooperation and the cooperation of
4any affiliate of the applicant and any executive officer,
5director or general or limited partner of the applicant or
6person holding a controlling interest in the applicant in the
7application process and with any request by the department or
8the board for any information deemed necessary for licensure.

9(3) The good character, reputation and suitability of
10the applicant and any affiliate of the applicant, executive
11officer, director or general or limited partner of the
12applicant or person holding a controlling interest in the
13applicant.

14(4) The applicant possesses sufficient financial
15resources to:

16(i) Operate as a wine and spirits wholesale
17licensee.

18(ii) Pay all taxes due and owing to the
19Commonwealth.

20(iii) Assume liability for the safe operation of the
21wholesale operations.

22(5) The applicant possesses sufficient financial
23resources and experience to create and maintain a successful
24and efficient wholesale operation that provides service at a
25level that is reasonably equivalent to the level of service
26currently provided in this Commonwealth on the effective date
27of this section.

28(6) The applicant has entered into a contractual
29relationship with one or more licensed manufacturers,
30importers or vendors of record for the distribution in this

1Commonwealth of a brand or brands of liquor regardless of
2whether the contractual relationship is contingent upon the
3board issuing a wine and spirits wholesale license to the
4applicant.

5(7) The physical facilities proposed to be used in the
6applicant's wholesale operations are located and designed to:

7(i) assure that all warehouses are located within
8this Commonwealth and licensed for the storage of liquor;

9(ii) function as a self-contained unit, with limited
10customer access;

11(iii) not have any interior connection with any
12other business or with any residential building without
13prior department or board approval;

14(iv) provide adequate security to protect the
15applicant's inventory from unauthorized sale or
16diversion; and

17(v) protect the public interest.

18(c) Assistance with investigations.--The board may enter
19into an agreement with the Pennsylvania State Police or the
20Office of Inspector General to assist the board in conducting
21investigations under this section and to provide for the
22reimbursement of actual costs incurred for providing the
23assistance. The board may establish, charge and collect fees
24from an applicant to recover the costs of investigation.

25Section 324-A. Issuance of licenses.

26(a) Notification.--Upon completion of the investigation
27under section 323-A, the board shall inform the department of
28the results of its investigation. The board shall inform the
29applicant in writing of its decision to approve or deny the
30application.

1(b) Approval.--If the application is approved, the
2department shall require the successful applicant to pay the
3license fee, as required under section 321.1-A, based on the
4brand licensing fees established under section 321.1-A for the
5brands of liquor approved for the applicant.

6(c) Denial.--

7(1) If an application is denied, the board shall provide
8the applicant with the specific reasons for the denial in the
9written notification required under subsection (a).

10(2) The applicant shall be entitled to a hearing on the
11denial, if a hearing is requested within ten days of the 
12board's notification and the request is in writing on a form
13and in a manner determined by the board.

14(3) A hearing under this subsection shall be conducted
15in accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating to
16practice and procedure of Commonwealth agencies).

17(d) Issuance.--After approval of an application, the board
18shall issue a wine and spirits wholesale license to the
19applicant for the exclusive privilege to sell approved brands of
20liquor in this Commonwealth, if the applicant has completed all
21of the following:

22(1) Paid the wine and spirits wholesale license fee
23required under this article. Payment must be made by
24certified check or wire transfer to a designated restricted
25account in The State Stores Fund.

26(2) Paid outstanding application or investigation fees.

27(3) Executed and delivered to the board the statement of
28conditions required under section 325-A.

29(4) Repurchased from the board remaining marketable
30inventory of the brands authorized under its license which

1are owned by the board at the board's purchase order cost and
2paid applicable taxes due and an administrative fee
3determined by the board. The wine and spirits wholesale
4licensee shall coordinate, at its own cost, the removal of
5remaining product owned by the board.

6(5) Fulfilled any other conditions required by the
7department or the board or provided for under this article.

8(e) License as privilege.--

9(1) Nothing under this article is intended or may be
10construed to create an entitlement to a wine and spirits
11wholesale license.

12(2) The authorization to participate in the distribution
13and sale of liquor as a wine and spirits wholesale licensee
14is a privilege conditioned upon this article.

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

16(1) Except as set forth in paragraph (2), if a wine and
17spirits wholesale license has been issued for a particular
18brand of liquor, the board may not engage in the sale of that
19brand of liquor.

20(2) The board may coordinate the repurchase of remaining
21board inventory of brands as provided under Subarticle D.

22(3) The board's Bureau of Licensing shall provide
23adequate notice to the board's Bureau of Supply Chain that a
24wine and spirits wholesale license application is ready for
25license approval to insure that appropriate inventory
26reduction can be effectuated without causing a shortage of
27the brand at issue.

28Section 325-A. Wine and spirits wholesale licensee statement of
29conditions.

30(a) Statement of conditions.--The department, in

1consultation with the board, shall develop a statement of
2conditions to be executed by each wine and spirits wholesale
3licensee governing the operation of the wine and spirits
4wholesale licensee.

5(b) Conditions, restrictions and prohibited acts.--In
6addition to any other conditions the department, in consultation
7with the board, deems necessary or appropriate for a specific
8wine and spirits wholesale licensee or which may be mandated for
9all licensees through regulations of the department or the
10board, the statement of conditions under subsection (a) shall
11include the following:

12(1) A wine and spirits wholesale licensee may not sell
13liquor to a person, except a person specified in section
14321.1-A(a)(1).

15(2) A wine and spirits wholesale licensee must serve all
16licensees eligible to purchase and resell liquor under this
17act and must make liquor available for sale to those
18licensees under the same pricing structure.

19(3) Except for a wine and spirits wholesale licensee
20that holds an importing distributor license under section
21431, a wine and spirits wholesale licensee may not sell malt
22or brewed beverages.

23(4) A wine and spirits wholesale licensee may not engage
24in conduct that would constitute any of the following:

25(i) Variable pricing.

26(ii) Unfair or deceptive trade practices proscribed
27under Federal or State law or regulation.

28(iii) Intentional exclusion of competing brands of
29liquor from the marketplace.

30(5) A wine and spirits wholesale licensee may only sell

1and distribute liquor products in this Commonwealth that are
2subject to a contractual relationship between the wine and
3spirits wholesale licensee and one or more licensed
4manufacturers or importers of wine and spirits.

5(6) (i) A wine and spirits wholesale licensee shall do
6all of the following:

7(A) Acquire liquor exclusively from:

8(I) a licensed manufacturer or importer of
9wine and spirits with whom the wine and spirits
10wholesale licensee has the contractual authority
11to sell at wholesale as provided under this act;
12or

13(II) an entity affiliated with the wine and
14spirits wholesale licensee.

15(B) Keep a detailed log of wholesale liquor
16transactions, including acquisitions of liquor from
17an entity listed under clause (A) and sales to
18licensees under this act.

19(ii) If liquor is acquired from an entity affiliated
20with the wine and spirits wholesale licensee, the entity
21shall, for taxation purposes, be considered a licensed
22manufacturer or importer of wine and spirits.

23(7) A wine and spirits wholesale licensee's licensed
24premises and all facilities involved in its wholesale
25operations, including any changes to the facilities during
26the term of the license, shall be subject to the inspection,
27investigation and approval of the department or the board or
28the enforcement bureau.

29(8) A wine and spirits wholesale licensee shall maintain
30adequate security to protect the licensee's inventory from

1unauthorized sale, removal or theft and prevent its
2unauthorized distribution.

3(9) As follows:

4(i) Except as provided under paragraph (1), a wine
5and spirits wholesale licensee may not engage in a
6separate business activity on a premises on which
7wholesale liquor operations are conducted without prior
8approval of the board.

9(ii) A wine and spirits wholesale licensee which
10holds an importing distributor license may engage in
11sales of malt or brewed beverages under this act.

12(10) A wine and spirits wholesale licensee shall collect
13and remit to the Department of Revenue all applicable taxes.

14(11) A wine and spirits wholesale licensee shall be
15considered a State liquor store for the purpose of collecting
16and remitting taxes under Article II of the act of March 4,
171971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
18from persons licensed to sell liquor for consumption on the
19premises under Article IV.

20(12) A wine and spirits wholesale licensee shall notify
21the board within 15 days of a change in a person holding a
22controlling interest in the licensee.

23(13) A wine and spirits wholesale licensee shall notify
24the board within 15 days of becoming aware of an arrest,
25criminal indictment or conviction by the licensee, an
26affiliate of the licensee or an executive officer, director
27or general or limited partner of the licensee or person
28holding a controlling interest in the licensee.

29(14) A wine and spirits wholesale licensee shall notify
30the board within 15 days of becoming aware of a violation of

1this act by the licensee, an affiliate of the licensee or an
2executive officer, director or general or limited partner of
3the licensee, person holding a controlling interest in the
4licensee or employee of the licensee.

5(15) As follows:

6(i) A wine and spirits wholesale licensee may not
7operate in a manner which constitutes a violation of
8Federal or State law, including antitrust or other unfair
9trade practices, or creates a monopolistic liquor
10distribution system in this Commonwealth.

11(ii) If a wine and spirits wholesale licensee seeks
12to be approved by the department or the board to
13distribute additional brands of liquor which would give
14the licensee a control of more than 50% of the liquor
15distributed in the wholesale market of this Commonwealth,
16in terms of gross dollar sales, the board shall convene a
17hearing to determine whether approval of the proposed
18application for additional brands would constitute a
19violation of antitrust or other unfair trade practice
20laws, or would create a monopolistic liquor distribution
21system in this Commonwealth.

22(iii) The board is authorized to promulgate
23regulations providing for the procedure for hearings
24under subparagraph (ii).

25(16) A wine and spirits wholesale licensee shall make
26the licensed premises, all of the facilities involved in the
27wholesale operation and all of the business and financial
28books and records of the wholesale operation available at any
29time for inspection and audit by the department, the board or
30the enforcement bureau. The board shall promulgate

1regulations regarding the records that a licensee must
2maintain on its premises.

3(17) A wine and spirits wholesale licensee shall
4cooperate fully in an inquiry or investigation by the
5department or the board or the enforcement bureau and provide
6information requested by the department, the board or the
7enforcement bureau.

8(18) A wine and spirits wholesale licensee which is a
9corporation, a limited liability company, limited
10partnership, partnership, association or other legal entity
11must be organized under the laws of this Commonwealth.

12(19) A wine and spirits wholesale licensee which is a
13natural person must be a citizen of the United States and a
14resident of this Commonwealth.

15(c) Sanctions.--A wine and spirits wholesale licensee that
16fails to abide by a condition contained in the licensee's
17statement of conditions or commits a violation of this act or
18Federal or State law:

19(1) shall be subject to citation by the enforcement
20bureau; and

21(2) may be subject to:

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

23(ii) nonrenewal of the license or revocation of
24temporary operating authority; or

25(iii) other penalties authorized under sections 471
26and 494.

27Section 326-A. Loss of rights to wholesale brands of liquor.

28The department, in consultation with the board, shall
29establish procedures and standards governing the relationship
30between wine and spirits wholesale licensees and manufacturers

1and the ability and terms upon which that relationship may be
2terminated. The procedures and standards shall incorporate the
3following principles:

4(1) As follows:

5(i) A manufacturer having a contract, including all
6written or oral agreements, understandings or other
7arrangements with a wine and spirits wholesale licensee
8for the distribution in this Commonwealth of a brand of
9liquor may terminate the distribution rights and transfer
10the rights to another wine and spirits wholesale licensee
11upon the voluntary agreement of both licensees.

12(ii) If a voluntary termination and transfer occurs,
13the manufacturer shall provide written notice to the
14board indicating that affected wine and spirits wholesale
15licensees have both agreed to the termination and
16transfer. A copy of the notification to the board shall
17be provided to both licensees.

18(2) If a wine and spirits wholesale licensee does not
19agree to the termination or transfer of its distribution
20rights, the manufacturer may only terminate or transfer the
21rights upon payment to the terminated licensee of reasonable
22compensation.

23(3) A voluntary or involuntary termination and transfer
24of the right to distribute the brand of liquor shall comply
25with this section.

26Section 327-A. Transfer of brands of liquor.

27(a) Prohibition.--No brand of liquor offered for sale in
28this Commonwealth may be transferred to a different wine and
29spirits wholesale licensee without prior approval from the
30board.

1(b) Transfer fee.--An application to the board to transfer
2the right to distribute a brand of liquor shall be subject to an
3application fee equal to 1% of the initial license fee
4attributable to the brand of liquor or $1,000, whichever is
5greater.

6SUBARTICLE D

7CLOSURE OF STATE LIQUOR STORES

8AND ASSISTANCE FOR DISPLACED EMPLOYEES

9Section 331-A. Closure of State liquor stores.

10(a) Process for closure.--

11(1) The board shall review the viability of a store 
12located within a county where the number of privately owned 
13and privately operated wine and spirits retail licenses plus 
14the number of grocery store licenses equal the number of 
15Heritage State Stores.

16(2) Where the number of Heritage State Stores equals the
17number of privately owned and privately operated wine and
18spirits retail licenses plus the grocery store licenses, the
19board shall provide a rationale to the department for the
20continued operation or closure of a store located in a
21county.

22(3) A Heritage State Store designated for closure shall
23cease operations within 60 days.

24(4) Where the number of privately owned and privately
25operated wine and spirits retail licenses plus the grocery
26store licenses exceed the number of Heritage State Stores by
27a factor of two, the Heritage State Stores within a county
28must close within six months.

29(5) The board may not operate fewer than 100 Heritage
30State Stores within this Commonwealth.

1(b) Disposition of liquor.--The board shall arrange for the
2disposition of the liquor remaining in inventory at a designated
3store. In order to effectuate this subsection, the board may, in
4consultation with the department, do any of the following:

5(1) Coordinate with the vendor of record for the
6repurchase products by the vendor of record.

7(2) Sell products to newly licensed wine and spirits
8retail licensees.

9(3) Transport products for sale at another operating
10State liquor store.

11(c) Disposition of nonliquor State-owned property.--The
12department, in consultation with the board, shall establish a
13procedure for the sale of the nonliquor inventory, property and
14fixtures of all State liquor stores consistent with 62 Pa.C.S.
15Ch. 15 (relating to supply management). Wine and spirits retail
16licensees shall have the opportunity to bid on the items to be
17sold or otherwise participate in the sale. All proceeds from the
18sales shall be deposited into The State Stores Fund.

19(d) Pennsylvania Liquor Store leases.--The board shall
20provide immediate notice to the lessor upon receipt of the
21department's notice to close a designated Pennsylvania Liquor
22Store.

23(e) Hiring restrictions.--

24(1) Notwithstanding any other provision of this act, the
25board may not hire additional salaried or wage employees for
26the purpose of staffing its retail operations, including its
27bureau of marketing and retail operations, unless explicitly
28authorized by the department.

29(2) Paragraph (1) shall not prohibit the board from
30hiring personnel, with approval from the department, to

1adequately staff its Bureau of Supply Chain for the purpose
2of transitioning its retail and wholesale operations to
3licensees of this article.

4Section 331.1-A. Licensee service centers.

5The board shall work collaboratively with the department to
6ensure that an adequate number of stores designated for sales to
7licensees or licensee service center locations are maintained
8during the retail and wholesale divestiture process so that
9licensees are able to timely acquire products sold by the board.

10Section 332-A. Transition assistance committee.

11(a) Formation.--

12(1) On the effective date of this section, the
13department shall designate individuals to serve on a
14committee for the purpose of managing the staffing transition
15and displacement of employees during the divestiture process.

16(2) The committee, which shall be chaired by a
17representative from the department, shall involve the
18participation of the Office of Administration, the Civil
19Service Commission, the Department of Labor and Industry and
20the board's bureau of human resources, to ensure a
21coordinated approach to allocating personnel and assisting
22displaced employees during the transition to find an
23appropriate position.

24(3) The department shall contract with advisors 
25necessary to assist the department and the board in 
26administering the duties under paragraph (2). The contracts 
27shall not be subject to the provisions of 62 Pa.C.S. Ch. 5 
28(relating to source selection and contract formation).

29(b) Counseling and placement.--The committee shall
30coordinate with the Office of Administration to provide

1counseling and other general assistance to employees of the
2board who are displaced to transition the employees to other
3employment in either the public or private sector.

4(c) Transition funding.--The costs for the programs provided
5under this subarticle shall be paid for out of the proceeds from
6the divestiture of the board's wholesale and retail operations.

7Section 333-A. Preference in public employment hiring.

8(a) Civil service examinations.--

9(1) A displaced employee who successfully passes a civil
10service appointment examination shall be marked or graded an
11additional three points above the mark or grade credited for
12the examination if all of the following apply:

13(i) The examination is for a paid position
14administered under the act of August 5, 1941 (P.L.752,
15No.286), known as the Civil Service Act, and in the
16classified service existing under the commission's
17jurisdiction.

18(ii) The employee establishes the qualifications
19required by law for appointment to the position.

20(2) The total mark or grade, including the mark-up under
21paragraph (1), obtained by the displaced employee shall
22represent the final mark or grade of the employee and shall
23determine the employee's standing on any eligibility list
24certified or furnished to the appointing power.

25(3) The three additional points awarded under paragraph
26(1) shall be in addition to any points that shall be afforded
27to a veteran meeting the requirements of 51 Pa.C.S. § 7103
28(relating to additional points in grading civil service
29examinations).

30(b) Certification.--The commission shall require the board

1to certify a list of displaced employees under subsection (a).
2Placement on the list by the board shall establish eligibility
3for the preference granted under subsection (a).

4(c) Noncivil service positions.--If a paid State position
5does not require a civil service examination, a displaced
6employee, possessing the requisite qualifications and who is
7eligible for appointment to a paid State position in offices
8under the Governor's jurisdiction within the executive branch
9shall be given a preference in the appointment by the appointing
10authority over nonveteran candidates.

11(d) (Reserved).

12(e) Eligibility.--

13(1) A displaced employee's eligibility for the mark-up
14provided under subsection (a) and for the preference for
15noncivil service positions provided under subsection (c)
16shall cease upon the occurrence of one of the following:

17(i) The displaced employee's appointment or hiring
18into a position in the classified service existing under
19the commission's jurisdiction or into a paid State
20position where no civil service examination is required.

21(ii) Four years from the effective date of this
22section.

23(2) In order to be eligible for the mark-up provided
24under subsection (a) and for the preference for noncivil
25service positions provided under subsection (c), a displaced
26worker must be terminated as a sole and direct result of the
27decision to cease wholesale and retail operations under this
28article and must work until the final day set by the board
29for that employee's job function.

30Section 334-A. Career training and post-secondary education

1grant eligibility.

2(a) Eligibility.--A displaced employee shall be eligible for
3a two-year grant for attending a program of instruction at an
4institution of higher education, including career training and
5adult education courses of study, within one year of the date of
6displacement from State service in the following amount:

7(1) two thousand dollars per year for attendance on a
8full-time basis; or

9(2) one thousand dollars per year for attendance on a
10part-time basis.

11(b) Certification.--The board shall certify the list of
12displaced employees to the Pennsylvania Higher Education 
13Assistance Agency.

14(c) Grant award.--The agency shall make a determination of
15grant eligibility and shall pay the grant directly to the
16institution of higher education attended by the displaced
17employee in a manner consistent with the Pennsylvania Higher 
18Education Assistance Agency's regulations.

19Section 335-A. Reemployment tax credit.

20(a) Eligibility.--

21(1) A displaced employee shall be eligible for a two-
22year reemployment tax credit voucher in the amount of $2,000
23per taxable year.

24(2) The voucher under paragraph (1) shall be made
25available to each displaced employee upon termination of
26employment.

27(3) Each voucher under paragraph (1) shall be certified
28by the board before the voucher is provided to the displaced
29employee.

30(4) The Department of Revenue shall be informed of each

1displaced employee to whom a voucher under paragraph (1) has
2been provided.

3(b) Transfer of voucher.--An employer in this Commonwealth
4who employs a displaced employee on a full-time basis may, upon
5transfer of the voucher from the employee to the employer, use
6the voucher as a credit against the State tax liability of the
7employer, if the employer can demonstrate the following:

8(1) The employee for whom the tax credit is being sought
9was displaced from the board within 12 months of being
10employed by the employer.

11(2) The former board employee has been employed by the
12employer seeking the tax credit on a full-time basis for a
13period not less than one year.

14(c) Voucher submittal.--The employer shall submit the tax
15credit voucher to the Department of Revenue with the information
16required under subsection (b)(1) and (2) to claim a tax credit
17against the employer's liability for a tax identified under
18subsection (d)(2).

19(d) Amount of credit.--

20(1) An employer may claim a reemployment tax credit for
21each job filled by a displaced employee of $2,000 per
22taxable year for a maximum of two taxable years.

23(2) An employer may apply the reemployment tax credit to
24100% of the employer's:

25(i) State corporate net income tax, capital stock
26and franchise tax or the personal tax of a shareholder of
27the company if the company is a Pennsylvania S
28corporation.

29(ii) Insurance premiums tax, gross receipts tax,
30bank and trust company shares tax, mutual thrift

1institutions tax or title insurance companies shares tax.

2(iii) Any combination of the taxes under
3subparagraphs (i) and (ii).

4(3) A displaced employee whose subsequent employment is
5terminated with an employer and who has utilized the
6reemployment tax credit voucher to claim a one-year $2,000
7tax credit may transfer the voucher to a new employer who may
8use the remaining $2,000 tax credit as a claim against the
9employer's tax liability for taxes identified under paragraph
10(2).

11(4) The term of the reemployment tax credit voucher may
12not exceed two years from the date the voucher is provided to
13the qualified displaced employee.

14Section 336-A. Protection of existing benefits.

15(a) Contract benefits.--Nothing under this section shall be
16deemed to affect:

17(1) Pension benefits accrued prior to the date of
18separation occurring as a sole and direct result of the
19divestiture of the board's wholesale and retail operations
20under this article.

21(2) Payment of an accrued benefit derived from the terms
22of a preexisting collective bargaining agreement payable upon
23separation from employment.

24(b) Collective bargaining.--As a result of the preferential
25hiring benefits, the tax credit for subsequent employers and the
26protection of benefits arising from an employee's pension or
27from a preexisting collective bargaining agreement under this
28section, the board shall be deemed to have satisfied all
29obligations to bargain over the impact of the decision to cease
30wholesale and retail operations under this article which may

1arise under the act of July 23, 1970 (P.L.563, No.195), known as
2the Public Employe Relations Act.

3(c) Local regulation.--This article supersedes a local
4regulation, ordinance or resolution of a political subdivision
5regarding notice to displaced workers.

6SUBARTICLE E

7MISCELLANEOUS PROVISIONS

8Section 341-A. License renewals.

9(a) Renewal.--

10(1) Wine and spirits licenses issued under this article
11shall be subject to renewal every two years, with validation.

12(2) The application for renewal shall be submitted on a
13form provided by the board at least 30 days prior to the
14expiration of the wine and spirits license and shall include,
15at a minimum, an update of the information contained in the
16initial and prior renewal applications and the payment of any
17renewal fee required under this article.

18(3) A wine and spirits license for which a completed
19renewal application and fee has been received by the board
20shall continue to be valid until the board sends written
21notification to the licensee that the board has denied the
22renewal of the license.

23(b) Fee.--

24(1) A renewal fee of $1,000 shall be due upon
25application for the renewal or validation of a wine and
26spirits retail license.

27(2) A renewal fee of $5,000 shall be due upon
28application for the renewal or validation of a wine and
29spirits wholesale license.

30(3) The board may adjust the renewal fee to ensure that

1the fee adequately recovers the costs associated with
2investigating the renewal application.

3(c) Renewal hearings.--The director of the board's Bureau of
4Licensing may object to the renewal of licenses issued under
5this article pursuant to the same authority granted under
6section 470. Hearings and appeals arising from the objections
7shall be conducted in accordance with section 464.

8(d) Revocation of operating authority.--

9(1) The board may revoke the operating authority of a
10wine and spirits license issued under this article if it
11finds that the licensee or any of its affiliates, executive
12officers, directors or general or limited partners or persons
13holding a controlling interest in the licensee:

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

15(ii) has furnished the board with false or
16misleading information; or

17(iii) is no longer reputable or suitable for
18licensure.

19(2) If a wine and spirits license is revoked or not
20renewed, the wine and spirits licensee's authorization to
21conduct business as a wine and spirits licensee shall
22immediately cease until the board notifies the licensee that
23the operating authority has been reinstated.

24(e) Affirmative duty.--Nothing under this section shall
25relieve a wine and spirits licensee of the affirmative duty to
26notify the board of changes relating to the status of its
27license or to other information contained in the application
28materials filed with the board.

29Section 342-A. Revocation, suspension and fines.

30(a) Authority of enforcement bureau.--The enforcement bureau

1shall have the authority to issue a citation against a wine and
2spirits licensee in the same manner as under section 471. The
3bureau may issue a citation to the licensee based on the
4following conduct:

5(1) The licensee violated any of the following:

6(i) A provision of this act.

7(ii) The regulations of the board.

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

9(iv) The licensee violated any other law of this
10Commonwealth.

11(2) The licensee knowingly presented to the board false,
12incomplete or misleading information.

13(3) The licensee pleaded guilty, entered a plea of nolo
14contendere or has been found guilty of a felony by a judge or
15jury in a Federal or State court.

16(4) The licensee failed to operate the business or to
17provide a reasonable level of consumer service.

18(5) The licensee failed to remit taxes as required.

19(b) Administrative Law Judge.--Enforcement matters shall be
20heard by an administrative judge in the same manner as under
21section 471. The administrative law judge may issue a fine and
22either suspend or revoke the license. Appeals may be taken in
23the same manner as under section 471.

24(c) Sales prohibited.--No person may sell liquor at a
25premises if any of the following apply:

26(1) The wine and spirits license applicable to that
27premises has been suspended or revoked or has expired.

28(2) The operating authority for the wine and spirits
29license has been revoked.

30(d) Public sale.--If a wine and spirits retail license is

1revoked, forfeited or surrendered under this article, the board
2shall conduct a sale of the license, consistent with this
3article.

4Section 343-A. Sale, assignment or transfer of license.

5(a) Prohibition.--No person may sell, assign or transfer
6their interest in a wine and spirits license granted under this
7article to another person until the board has received,
8investigated and approved a transfer application. If the license
9is a wine and spirits retail license, the wine and spirits
10licensee must have been in continuous operation for at least one
11year prior to the date of the application to transfer the
12license.

13(b) Compliance.--Any person to whom a wine and spirits
14license is transferred must comply with this article prior to
15the transfer of the license.

16(c) Transfer fee.--

17(1) The transfer of a wine and spirits license shall be
18subject to a transfer fee equal to 1% of the license fee paid
19for the license and shall be paid as a condition of the
20transfer of the license.

21(2) The transfer fee applicable to the transfer of
22brands of liquor under section 327-A(b) shall not apply to
23the transfer of a wine and spirits wholesale license.

24(3) A wine and spirits retail license may not be
25transferred to another location outside the county in which
26it was initially issued.

27(d) Change of control.--For the purposes of this section, a
28change of control of a wine and spirits wholesale or retail
29licensee shall be deemed to be a sale, assignment or transfer of
30a wine and spirits wholesale or retail license. A wine and

1spirits wholesale or retail licensee must notify the board
2immediately upon becoming aware of a proposed or contemplated
3change of control.

4Section 344-A. The State Stores Fund.

5All fees, assessments, bid amounts or other charges paid by
6wine and spirits license applicants or licensees shall be paid
7or transferred into a restricted account which is hereby 
8established in The State Stores Fund. Funds in the restricted 
9account shall be used for programs under Subarticle D and any 
10other use specified by statute. Any fines collected by the
11administrative law judge from the licensees shall be remitted to
12the enforcement bureau for continued enforcement efforts.

13Section 345-A. Return of fee or bid.

14(a) Wine and spirits wholesale license fee.--The entire wine
15and spirits wholesale license fee paid by a wine and spirits
16wholesale licensee under section 324-A(d)(1) shall be returned
17if this article is amended or otherwise altered by an act of the
18General Assembly within five years of the effective date of this
19section to change provisions relating to the loss of rights to
20wholesale brands of liquors under section 326-A.

21(b) Wine and spirits retail licensee fee or bid amount.--The
22entire wine and spirits retail license fee or retail bid amount
23paid by a wine and spirits retail licensee shall be returned if
24this article is amended or otherwise altered by an act of the
25General Assembly within five years of the effective date of this
26section to authorize additional wine and spirits retail licenses
27under section 311.1-A.

28Section 10. Section 401 of the act, amended December 22,
292011 (P.L.530, No.113), is amended to read:

30Section 401. Authority to Issue Liquor Licenses to Hotels,

1Restaurants and Clubs.--(a) Subject to the provisions of this
2act and regulations promulgated under this act, the board shall
3have authority to issue a retail liquor license for any premises
4kept or operated by a hotel, restaurant or club and specified in
5the license entitling the hotel, restaurant or club to purchase
6liquor from a Pennsylvania Liquor Store or a wine and spirits
7wholesale licensee and to keep on the premises such liquor and,
8subject to the provisions of this act and the regulations made
9thereunder, to sell the same and also malt or brewed beverages
10to guests, patrons or members for consumption on the hotel,
11restaurant or club premises. Such licensees, other than clubs,
12shall be permitted to sell malt or brewed beverages for
13consumption off the premises where sold in quantities of not
14more than one hundred ninety-two fluid ounces in a single sale
15to one person as provided for in section 407 unless the licensee
16acquires a retail package reform permit issued by the board
17under section 407(c). Such licenses shall be known as hotel
18liquor licenses, restaurant liquor licenses and club liquor
19licenses, respectively. No person who holds any public office
20that involves the duty to enforce any of the penal laws of the
21United States, this Commonwealth or of any political subdivision
22of this Commonwealth may have any interest in a hotel or
23restaurant liquor license. This prohibition applies to anyone
24with arrest authority, including, but not limited to, United
25States attorneys, State attorneys general, district attorneys,
26sheriffs and police officers. This prohibition shall also apply
27to magisterial district judges, judges or any other individuals
28who can impose a criminal sentence. This prohibition does not
29apply to members of the General Assembly, township supervisors,
30city councilpersons, mayors without arrest authority and any

1other public official who does not have the ability to arrest or
2the ability to impose a criminal sentence. This section does not
3apply if the proposed premises are located outside the
4jurisdiction of the individual in question.

5(b) The board may issue to any club which caters to groups
6of non-members, either privately or for functions, a catering
7license, and the board shall, by its rules and regulations,
8define what constitutes catering under this subsection except
9that any club which is issued a catering license shall not be
10prohibited from catering on Sundays during the hours which the
11club may lawfully serve liquor, malt or brewed beverages.

12Section 10.1. The act is amended by adding sections to read:

13Section 401.1.  Authority to Issue Liquor Licenses to Grocery
14Stores.--(a) Subject to the provisions of this act and
15regulations promulgated under this act, the board shall have
16authority to issue a retail liquor license for any premises kept
17or operated by a grocery store and specified in the license
18entitling the grocery store to:

19(1) Purchase wine from a Pennsylvania liquor wholesale
20licensee, a wine and spirits store and any person licensed by
21the board as a producer of wine and subject to section 505.2.

22(2) Keep on the premises such wine and, subject to the
23provisions of this act and the regulations made hereunder, to
24sell the same to patrons for consumption off the licensed
25premises.

26(b) Licenses issued under this section shall be known as
27grocery store retail liquor licenses.

28(c) No individual who holds any public office that involves
29the duty to enforce any of the penal laws of the United States,
30this Commonwealth or of any political subdivision of this

1Commonwealth may have any interest in a grocery store retail
2liquor license. This prohibition applies to an individual with
3arrest authority, including, but not limited to, police
4officers, sheriffs, district attorneys, State attorneys general
5and United States attorneys. This prohibition shall also apply
6to magisterial district judges, judges or any other individuals
7who may impose a criminal sentence. This prohibition does not
8apply to members of the General Assembly, township supervisors,
9city councilpersons, mayors without arrest authority and any
10other public official who does not have the ability to arrest or
11the ability to impose a criminal sentence. An individual subject
12to this prohibition may have an interest in a grocery store
13retail liquor license if the proposed premises are located
14outside the jurisdiction of the individual.

15Section 403.1.  Applications for Grocery Store Retail
16License.--(a) Every applicant for a grocery store retail
17license or for the transfer of an existing license to another
18premises not then licensed shall file a written application with
19the board in such form and containing such information as the
20board shall from time to time prescribe, which shall be
21accompanied by a filing fee and an annual license fee as set
22forth in section 406.1 of this act. Every such application shall
23contain a description of that part of the grocery store for
24which the applicant desires a license and shall set forth such
25other material information, description or plan of that part of
26the grocery store where it is proposed to keep and sell liquor
27as may be required by the regulations of the board. The
28descriptions, information and plans referred to in this
29subsection shall show the grocery store, or the proposed
30location for the construction of a grocery store, at the time

1the application is made, and shall show any alterations proposed
2to be made thereto, or the new building proposed to be
3constructed after the approval by the board of the application
4for a license or for the transfer of an existing license to
5another premises not then licensed. No physical alterations,
6improvements or changes shall be required to be made to any
7grocery store, nor shall any new building for any such purpose
8be required to be constructed until approval of the application
9for license or for the transfer of an existing license to
10another premises not then licensed by the board. After approval
11of the application, the licensee shall make the physical
12alterations, improvements and changes to the licensed premises,
13or shall construct the new building in the manner specified by
14the board at the time of approval, and the licensee shall not
15transact any business under the license until the board has
16approved the completed physical alterations, improvements and
17changes to the licensed premises, or the completed construction
18of the new building as conforming to the specifications required
19by the board at the time of issuance or transfer of the license,
20and is satisfied that the establishment is a grocery store as
21defined by this act. The board may require that all such
22alterations or construction or conformity to definition be
23completed within six months from the time of issuance or
24transfer of the license. Failure to comply with these
25requirements shall be considered cause for revocation of the
26license. No such license shall be transferable between the time
27of issuance or transfer of the license and the approval of the
28completed alterations or construction by the board and full
29compliance by the licensee with the requirements of this act
30unless full compliance is impossible for reasons beyond the

1licensee's control, in which event, the license may be
2transferred by the board as provided in this act.

3(b)  If the applicant is a natural person, the applicant's
4application must show that the applicant is a citizen of the
5United States and has been a resident of this Commonwealth for
6at least two years immediately preceding the applicant's
7application.

8(c)  If the applicant is a corporation, the application must
9show that the corporation was created under the laws of this
10Commonwealth or holds a certificate of authority to transact
11business in this Commonwealth, that all officers, directors and
12stockholders are citizens of the United States and that the
13manager of the grocery store retail license is a citizen of the
14United States.

15(d)  Each application shall be signed and verified by oath or
16affirmation by the owner, if a natural person, or, in the case
17of an association, by a member or partner thereof, or, in the
18case of a corporation, by an executive officer thereof or any
19person specifically authorized by the corporation to sign the
20application, to which shall be attached written evidence of his
21authority.

22(e)  Every applicant for a new license or for the transfer of
23an existing license shall post, for a period of at least thirty
24days beginning with the day the application is filed with the
25board, in a conspicuous place on the outside of the premises or
26at the proposed new location for which the license is applied, a
27notice of such application. The notice shall be in such form, be
28of such size and contain such provisions as the board may
29require by its regulations. Proof of the posting of such notice
30shall be filed with the board. The posting requirement imposed

1by this subsection shall not apply to license applications
2submitted for public venues.

3(f)  If any false statement is intentionally made in any part
4of the application, the affiant shall be deemed guilty of a
5misdemeanor and, upon conviction, shall be subject to the
6penalties provided by this article.

7(g)  Upon receipt of an application for a new license or
8transfer of an existing license to a new location, the board
9shall immediately notify, in writing, the municipality in which
10the premises proposed to be licensed are located.

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

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

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

1into an agreement with the applicant concerning additional
2restrictions on the license in question. If the board and the
3applicant enter into such an agreement, such agreement shall be
4binding on the applicant. Failure by the applicant to adhere to
5the agreement will be sufficient cause to form the basis for a
6citation under section 471 and for the nonrenewal of the license
7under section 470. If the board enters into an agreement with an
8applicant concerning additional restrictions, those restrictions
9shall be binding on subsequent holders of the license until the
10license is transferred to a new location or until the board
11enters into a subsequent agreement removing those restrictions.
12If the application in question involves a location previously
13licensed by the board, then any restrictions imposed by the
14board on the previous license at that location shall be binding
15on the applicant unless the board enters into a new agreement
16rescinding those restrictions. The board may, in its discretion,
17refuse an application for an economic development license under
18section 461(b.1) or an application for an intermunicipal
19transfer of a license if the board receives a protest from the
20governing body of the receiving municipality. The receiving
21municipality of an intermunicipal transfer or an economic
22development license under section 461(b.1) may file a protest
23against the transfer of a license into its municipality, and the
24receiving municipality shall have standing in a hearing to
25present testimony in support of or against the issuance or
26transfer of a license. Upon any opening in any quota, an
27application for a new license shall only be filed with the board
28for a period of six months following said opening.

29Section 11.1. The act is amended by adding a section to
30read:

1Section 404.1.  Issuance or Transfer of Grocery Store Liquor
2Licenses.--Upon receipt of the application and the proper fees,
3and upon being satisfied of the truth of the statements in the
4application that the applicant is the only person in any manner
5pecuniarily interested in the business so asked to be licensed
6and that no other person will be in any manner pecuniarily
7interested therein during the continuance of the license, except
8as hereinafter permitted, and that the applicant is a person of
9good repute, that the premises applied for meet all the
10requirements of this act and the regulations of the board, that
11the applicant seeks a license for a grocery store, as defined in
12this act, and that the issuance of such license is not
13prohibited by any of the provisions of this act, the board shall
14grant and issue to the applicant a liquor license: Provided,
15however, That in the case of any new license or the transfer of
16any license to a new location the board may, in its discretion,
17grant or refuse such new license, transfer or extension if such
18place proposed to be licensed is within three hundred feet of
19any church, hospital, charitable institution, school, or public
20playground, or if such new license, transfer or extension is
21applied for a place which is within two hundred feet of any
22other premises which is licensed by the board: And provided
23further, That the board shall refuse any application for a new
24license, the transfer of any license to a new location or the
25extension of an existing license to cover an additional area if,
26in the board's opinion, such new license, transfer or extension
27would be detrimental to the welfare, health, peace and morals of
28the inhabitants of the neighborhood within a radius of five
29hundred feet of the place proposed to be licensed: And provided
30further, That the board shall have the discretion to refuse a

1license to any person or to any corporation, partnership or
2association if such person, or any officer or director of such
3corporation, or any member or partner of such partnership or
4association shall have been convicted or found guilty of a
5felony within a period of five years immediately preceding the
6date of application for the said license. The board may enter
7into an agreement with the applicant concerning additional
8restrictions on the license in question. If the board and the
9applicant enter into such an agreement, such agreement shall be
10binding on the applicant. Failure by the applicant to adhere to
11the agreement will be sufficient cause to form the basis for a
12citation under section 471 and for the nonrenewal of the license
13under section 470. If the board enters into an agreement with an
14applicant concerning additional restrictions, those restrictions
15shall be binding on subsequent holders of the license until the
16license is transferred to a new location or until the board
17enters into a subsequent agreement removing those restrictions.
18If the application in question involves a location previously
19licensed by the board, then any restrictions imposed by the
20board on the previous license at that location shall be binding
21on the applicant unless the board enters into a new agreement
22rescinding those restrictions.

23Section 12. Section 405(c) of the act, amended April 29,
241994 (P.L.212, No.30), is amended to read:

25Section 405. License Fees.--* * *

26(c) All license fees authorized under this section shall be
27collected by the board for the use of the municipalities in
28which such fees were collected[.] if the municipalities receive
29services from a municipal police department. Fees collected in
30municipalities that do not receive service from a municipal

1police department must be transferred to the enforcement bureau
2for continued enforcement efforts.

3* * *

4Section 13. Section 406(a)(3) and (e)(1) of the act, amended 
5December 22, 2011 (P.L.530, No.113), are amended and subsection 
6(e) is amended by adding a paragraph to read:

7Section 406. Sales by Liquor Licensees; Restrictions.--(a)
8* * *

9(3) Hotel and restaurant liquor licensees, municipal golf
10course restaurant liquor licensees and privately-owned public
11golf course restaurant licensees may sell liquor and malt or
12brewed beverages on Sunday between the hours of [eleven] nine
13o'clock antemeridian and two o'clock antemeridian Monday upon
14purchase of a special permit from the board at an annual fee as
15prescribed in section 614-A of the act of April 9, 1929
16(P.L.177, No.175), known as "The Administrative Code of 1929."
17Notwithstanding this provision, a licensee holding such a permit
18may begin selling liquor and malt or brewed beverages on Sunday
19between the hours of nine o'clock antemeridian and eleven
20o'clock antemeridian provided that the licensee offers a meal
21beginning at nine o'clock antemeridian. Airport restaurant
22liquor licensees may sell liquor and malt or brewed beverages on
23Sunday between the hours of seven o'clock antemeridian and two
24o'clock antemeridian Monday upon purchase of a special permit
25from the board at an annual fee as prescribed in section 614-A
26of the act of April 9, 1929 (P.L.177, No.175), known as "The
27Administrative Code of 1929."

28* * *

29(e) (1) The holder of a hotel license or the holder of a
30restaurant license located in a hotel may allow persons to

1transport liquor or malt or brewed beverages from the licensed
2portion of the premises to the unlicensed portion of the
3premises, so long as the liquor or malt or brewed beverages
4remain on the hotel property. In addition, a holder of a
5restaurant or club license located on a golf course may sell,
6furnish or give liquor or malt or brewed beverages on the
7unlicensed portion of the golf course so long as the liquor or
8malt or brewed beverages remain on the restaurant, club or golf
9course. The holder of a restaurant license located immediately
10adjacent to and under the same roof of a bowling center may
11allow persons to transport liquor or malt or brewed beverages
12from the licensed portion of the premises to the unlicensed
13portion of the premises, so long as the liquor or malt or brewed
14beverages remain within the bowling center. [In addition, the
15holder of a hotel license or a restaurant license may allow
16persons who have purchased but only partially consumed a bottle
17of wine on the premises to remove the bottle from the premises
18so long as the bottle was purchased in conjunction with a meal
19which was consumed on the premises and so long as the bottle is
20resealed.] Notwithstanding this paragraph, the holder of a hotel
21license or a restaurant license may sell up to six bottles of
22wine for consumption off the licensed premises so long as the
23bottles remain sealed and the holder has obtained a wine-to-go
24permit as authorized under section 493(35). In addition, the
25holder of a hotel license or a restaurant license may allow a
26person who has purchased but only partially consumed a bottle of
27spirits on the premises to remove the bottle from the premises
28so long as the bottle is resealed. For purposes of this
29subsection, "wine" shall have the meaning given to it under
30section 488(i). For purposes of this section and section 432,

1"meal" shall mean food prepared on the premises, sufficient to
2constitute breakfast, lunch or dinner; it shall not mean a
3snack, such as pretzels, popcorn, chips or similar food.

4* * *

5(3) The holder of a restaurant license whose premises has an
6interior connection to a grocery store may allow a purchase of
7beer and wine for consumption off the premises to be paid for at
8a point of sale other than a point of sale located on the
9licensed premises.

10Section 13.1. The act is amended by adding a section to
11read:

12Section 406.2.  Sales by Grocery Store Retail Licensees and
13Restrictions.--(a) Every grocery store retail licensee may sell
14wine for consumption off the licensed premises from any location
15within the licensed premises. Educational information regarding
16the types of products sold by the grocery store retail licensee
17and regarding the responsible consumption of alcohol shall be
18displayed and readily available wherever wine is displayed.
19Grocery store retail licensees may display the alcohol products
20they offer for sale on shelving units and systems, and in or on
21refrigerated cases and equipment, within the discretion of the
22licensee, provided that such displays are not designed to
23attract minors and, provided further, that the manner and method
24of display allows access by all customers, including the
25physically dependent.

26(b) Grocery store retail licensees may sell no more than 
27twelve bottles of wine in a single sale for consumption off the 
28licensed premises.

29(c) Grocery store retail licensees may not charge a
30membership fee in order for customers to make purchases from the

1grocery store.

2(d) Sales by grocery store retail licensees shall be made
3via grocery store registers, well designated with signage and
4manned by sales clerks who are at least eighteen years of age
5and have been RAMP-trained and utilizing a transaction scan
6device for any purchases. At no time shall the purchase of wine
7occur at a point of sale where the customer scans his own
8purchases. All sales of wine shall occur at a point of sale
9manned by a sales clerk at all times.

10(e) Grocery store retail licensees may store alcohol in a
11storage area or storage areas not accessible to the public
12provided such storage areas are:

13(1) locked at all times when not being accessed by the
14licensees' employes; and

15(2) identified by dimensions and location on forms submitted
16in advance to the board.

17(f) Grocery store retail licensees may sell wine from seven
18o'clock antemeridian until eleven o'clock postmeridian every day
19except Sunday.

20(g) Grocery store retail licensees may sell wine from nine
21o'clock antemeridian until eleven o'clock postmeridian on
22Sundays upon submission to the board of a Sunday sales permit
23application and fee of one thousand five hundred dollars
24($1,500) per year.

25(h) Grocery store retail licensees shall be permitted to
26hold:

27(1) Tastings at any location in the grocery store, provided
28the tastings are in compliance with the provisions and
29regulations regarding tastings held on restaurant licensed
30premises.

1(2) Educational classes, including cooking classes, "how to"
2classes, seminars and the like, regarding the proper or
3recommended use, consumption, identification, pairing,
4appellation, aging, storage, characteristics, service,
5presentation and the like, of the alcohol products that they
6offer for sale, during which classes the incidental consumption
7of alcohol by registered participants of lawful age shall be
8permitted; such classes may be free of charge to participants or
9may be at fee.

10(i) Grocery store retail licensees shall be permitted to
11hold restaurant licenses issued for areas within the same
12building for which the grocery store retail license has been
13issued or for a different building. Grocery store retail
14licenses and restaurant licenses issued for areas within the
15same grocery stores may be issued for areas that are adjacent,
16abutting and contiguous and the board shall approve interior
17connections between such areas. In the event that a grocery
18store retail license and a restaurant license are issued for the
19same grocery store, wine may only be sold for off-premises
20consumption in the area licensed for grocery store retail sales.

21(j) Grocery store retail licensees may not sell wine at a
22price less than its underlying cost.

23(k)  Grocery store retail licensees shall buy wine sold
24pursuant to their grocery store retail license from the board, a
25wine and spirits wholesale licensee or a winery licensed by the
26Commonwealth.

27(l) All products purchased by grocery store retail licensees
28and all products purchased by restaurant and eating place
29licensees owned by the same individual or company must be
30separately purchased from the board or a wine and spirits

1wholesale licensee as required by this act and may not be
2purchased from another retail licensee. Separate records must be
3maintained for all purchases and sales by all grocery store
4retail licensees and restaurant or eating place licensees,
5whether or not located within the same building or owned by the
6same individual or company.

7(m) The following shall apply:

8(1) The retail license fee payable one time upon application
9to the board for issuance of the license, shall be as follows:

10(i) For grocery stores located in counties of the first
11class or counties of the second class, one hundred sixty-five
12thousand dollars ($165,000).

13(ii) For grocery stores located in counties of the second
14class A or counties of the third class, one hundred eighty-seven
15thousand five hundred dollars ($187,500).

16(iii) For grocery stores located in counties of the fourth
17class or fifth class, one hundred forty-two thousand five
18hundred dollars ($142,500).

19(iv) For grocery stores located in counties of the sixth
20class or seventh class, one hundred twenty thousand dollars
21($120,000).

22(v) For grocery stores located in counties of the eighth
23class, ninety-seven thousand five hundred dollars ($97,500).

24(2) Grocery store retail licenses shall be renewed every two
25years. The renewal fee submitted each year shall be:

26(i) For grocery stores located in counties of the fifth
27class, counties of the sixth class, counties of the seventh
28class or counties of the eighth class, two thousand dollars
29($2,000).

30(ii) For grocery stores located in counties of the first

1class, counties of the second class, counties of the second
2class A, counties of the third class or counties of the fourth
3class, four thousand dollars ($4,000).

4(3) The board may accept applications to transfer grocery
5store retail licenses to new locations, for the same owner, upon
6submission of transfer applications and fees submitted to the
7board in the following amounts:

8(i) For transfers to counties of the fifth class, counties
9of the sixth class, counties of the seventh class or counties of
10the eighth class, five thousand dollars ($5,000).

11(ii) For transfers to counties of the first class, counties 
12of the second class, counties of the second class A, counties of 
13the third class or counties of the fourth class, ten thousand 
14dollars ($10,000).

15(n) (1) Grocery store licensees selling wine for off-
16premises consumption shall be required to obtain a sales tax
17license from the Department of Revenue.

18(2) A grocery store licensee selling wine for off-premises 
19consumption shall be considered a Pennsylvania Liquor Store for 
20purposes of collecting and remitting taxes under Article II of 
21the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform 
22Code of 1971." A grocery store licensee selling wine for off-
23premises consumption may not be required to pay the sales tax 
24when making wholesale purchases but shall collect the tax at 
25retail.

26Section 14. Section 407 of the act, amended November 29,
272006 (P.L.1421, No.155) and June 28, 2011 (P.L.55, No.11), is
28amended to read:

29Section 407. Sale of Malt or Brewed Beverages by Liquor
30Licensees.--(a) Every liquor license issued to a hotel,

1restaurant, club, or a railroad, pullman or steamship company
2under this subdivision (A) for the sale of liquor shall
3authorize the licensee to sell malt or brewed beverages at the
4same places but subject to the same restrictions and penalties
5as apply to sales of liquor, except that licensees other than
6clubs may sell malt or brewed beverages for consumption off the
7premises where sold in quantities of not more than one hundred
8ninety-two fluid ounces in a single sale to one person unless
9the licensee acquires a retail package permit issued by the
10board under section 407(c). The sales may be made in either open
11or closed containers, Provided, however, That a municipality may
12adopt an ordinance restricting open containers in public places.
13No licensee under this subdivision (A) shall at the same time be
14the holder of any other class of license, except a retail
15dispenser's license authorizing the sale of malt or brewed
16beverages only.

17(b) (1) Notwithstanding any other provision of law or any
18existing permit authorizing the sale of malt or brewed beverages
19for consumption off the premises, a restaurant licensee located
20in a city of the first class who is otherwise permitted to sell
21malt or brewed beverages for consumption off the premises may
22not do so after October 31, 2007, unless it acquires a permit
23from the board.

24(2) The application for a permit to sell malt or brewed 
25beverages for consumption off the premises shall be on forms 
26designated by the board and contain such information as the 
27board may require. The application and renewal fee shall be as 
28prescribed in section 614-A(27) of the act of April 9, 1929 
29(P.L.177, No.175), known as "The Administrative Code of 1929." 
30However, no applicant who currently has a permit shall be
 

1required to pay any additional fees under section 614-A(27) of 
2"The Administrative Code of 1929" in order to continue selling 
3malt or brewed beverages for consumption off the premises at its 
4currently licensed location for the licensing term beginning 
5November 1, 2007, and ending October 31, 2008.

6(3) The application for a permit to sell malt or brewed
7beverages for consumption off the premises must be accompanied
8by a copy of the approval of such request by the hearing board
9authorized by this section.

10(4) A city of the first class shall create a hearing board
11within its Department of Licenses and Inspections to hear
12requests from licensees who are seeking a permit from the
13hearing board authorizing the licensee to sell malt or brewed
14beverages for consumption off the premises. Each hearing board
15shall consist of three persons appointed by the mayor of the
16city of the first class, who are subject to approval by the city
17council of the city of the first class. Each person so appointed
18shall serve at the pleasure of the appointing authority. The
19hearing board may, in its discretion, hold hearings to adduce
20testimony regarding a request. The hearing board must render a
21decision within ninety days of receipt of a request for approval
22of a permit to sell malt or brewed beverages for consumption off
23the premises. The hearing board must approve the request unless
24it finds that doing so would adversely affect the welfare,
25health, peace and morals of the city or its residents. A
26decision by the hearing board to deny a request may be appealed
27to the court of common pleas in the county in which the city is
28located. The failure to render a decision by the hearing board
29within the required time period shall be deemed approval of the
30permit.

1(5) Upon being satisfied that the applicant has fulfilled
2all the requirements of this act and the board's regulations,
3the board shall approve the application. Such permits shall
4expire upon the transfer of the license to a new entity or to a
5new location, or both; otherwise, such permits shall expire at
6the same time as the expiration of the underlying license.

7(c) (1) The board may issue a retail package reform permit
8to a restaurant, hotel or retail dispenser licensee that applies
9and pays the requisite fee for use at the same place that the
10restaurant, hotel or retail dispenser maintains for the sale of
11malt or brewed beverages. The permit must allow the holder to
12sell in a single transaction not more than twenty-four original
13containers totaling not more than three hundred and eighty four
14fluid ounces of malt and brewed beverages so long as the
15original containers are in a package prepared for sale of
16distribution by the manufacturer of not more than twelve
17original containers.

18(2) For the permit issued under paragraph (1), the board
19shall require an annual fee of five hundred dollars ($500).

20Section 15. Section 408.12(g) and (h) of the act, added July
211, 1994 (P.L.402, No.61), are amended to read:

22Section 408.12. Wine Auction Permits.--* * *

23(g) Any wine sold under this section shall be purchased from
24a Pennsylvania Liquor Store, a wine and spirits retail licensee,
25a Pennsylvania limited winery or any seller authorized to sell
26wine by the bottle or case in this Commonwealth, including a
27grocery store licensee, restaurant liquor licensee or hotel
28liquor licensee, or shall be donated by a person who is neither
29a licensee nor a permittee who has legally acquired the wine and
30legally possesses it in this Commonwealth.

1(h) If any wine sold under this section is purchased from a
2seller other than a Pennsylvania Liquor Store, wine and spirits
3retail licensee, grocery store licensee, restaurant liquor
4licensee, hotel liquor licensee or [a] Pennsylvania limited
5winery, the permittee shall provide thirty days' notice to the
6board of its intent to purchase such wine. The notice shall
7include a description of the wine to be purchased, the quantity
8to be purchased, the name of the seller and any other
9information which the board may require. The permittee shall
10comply with all board regulations regarding taxes and fees.

11* * *

12Section 16. Section 410(e) of the act is amended to read:

13Section 410. Liquor Importers' Licenses; Fees; Privileges;
14Restrictions.--* * *

15(e) Importers' licenses shall permit the holders thereof to
16bring or import liquor from other states, foreign countries, or
17insular possessions of the United States, and purchase liquor
18from manufacturers located within this Commonwealth, to be sold
19outside of this Commonwealth or to Pennsylvania Liquor Stores or
20wine and spirits wholesale licensees within this Commonwealth,
21or when in original containers of ten gallons or greater
22capacity, to licensed manufacturers within this Commonwealth.

23All importations of liquor into Pennsylvania by the licensed
24importer shall be consigned to the board or the principal place
25of business or authorized place of storage maintained by the
26licensee or a wine and spirits wholesale licensee.

27* * *

28Section 17. Section 411 of the act is amended by adding a
29subsection to read:

30Section 411. Interlocking Business Prohibited.--* * *

1(f) (1) Notwithstanding any other provision of law, a
2manufacturer or licensee and its officers, directors,
3shareholders, servants, agents or employes may contribute, and a
4manufacturer or licensee and its officers, directors,
5shareholders, servants, agents or employes may accept moneys or
6other things of value solely for the administration of a
7responsible alcohol management training program for alcohol
8service personnel as provided for under section 471.1 of this
9act. The moneys or other things of value may be provided by or
10to a manufacturer or licensee and its officers, directors,
11shareholders, servants, agents or employes directly or by or to
12a trade organization consisting, in whole or in part, of a group
13of licensees.

14(2) The manufacturer, licensee and trade organization
15associated with the person providing the moneys or other things
16of value must keep a record of the value of the moneys or other
17things of value provided, the date provided and the entity to
18whom it was provided, as part of the records required under
19section 493(12) of this act.

20(3) The manufacturer, licensee and trade organization
21associated with the person receiving moneys or other things of
22value must keep a record of the value of the moneys or other
23things of value used, as part of the records required under
24section 493(12) of this act.

25Section 18. Section 431(b) of the act, amended December 8,
262004 (P.L.1810, No.239), is amended to read:

27Section 431. Malt and Brewed Beverages Manufacturers',
28Distributors' and Importing Distributors' Licenses.--* * *

29(b) The board shall issue to any reputable person who
30applies therefor, and pays the license fee hereinafter

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

1agreement with the applicant concerning additional restrictions
2on the license in question. If the board and the applicant enter
3into such an agreement, such agreement shall be binding on the
4applicant. Failure by the applicant to adhere to the agreement
5will be sufficient cause to form the basis for a citation under
6section 471 and for the nonrenewal of the license under section
7470. If the board enters into an agreement with an applicant
8concerning additional restrictions, those restrictions shall be
9binding on subsequent holders of the license until the license
10is transferred to a new location or until the board enters into
11a subsequent agreement removing those restrictions. If the
12application in question involves a location previously licensed
13by the board, then any restrictions imposed by the board on the
14previous license at that location shall be binding on the
15applicant unless the board enters into a new agreement
16rescinding those restrictions. The board shall require notice to
17be posted on the property or premises upon which the licensee or
18proposed licensee will engage in sales of malt or brewed
19beverages. This notice shall be similar to the notice required
20of hotel, restaurant and club liquor licensees.

21Except as hereinafter provided, such license shall authorize
22the holder thereof to sell or deliver malt or brewed beverages
23in quantities above specified anywhere within the Commonwealth
24of Pennsylvania, which, in the case of distributors, have been
25purchased only from persons licensed under this act as
26manufacturers or importing distributors, and in the case of
27importing distributors, have been purchased from manufacturers
28or persons outside this Commonwealth engaged in the legal sale
29of malt or brewed beverages or from manufacturers or importing
30distributors licensed under this article. If the holder of a

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

1receipts and shipments and make all records and the licensed
2areas available for inspection by the board and for the
3Pennsylvania State Police, Bureau of Liquor Control Enforcement,
4during normal business hours.

5Each out of State manufacturer of malt or brewed beverages
6whose products are sold and delivered in this Commonwealth shall
7give distributing rights for such products in designated
8geographical areas to specific importing distributors, and such
9importing distributor shall not sell or deliver malt or brewed
10beverages manufactured by the out of State manufacturer to any
11person issued a license under the provisions of this act whose
12licensed premises are not located within the geographical area
13for which he has been given distributing rights by such
14manufacturer. Should a licensee accept the delivery of such malt
15or brewed beverages in violation of this section, said licensee
16shall be subject to a suspension of his license for at least
17thirty days: Provided, That the importing distributor holding
18such distributing rights for such product shall not sell or
19deliver the same to another importing distributor without first
20having entered into a written agreement with the said secondary
21importing distributor setting forth the terms and conditions
22under which such products are to be resold within the territory
23granted to the primary importing distributor by the
24manufacturer.

25When a Pennsylvania manufacturer of malt or brewed beverages
26licensed under this article names or constitutes a distributor
27or importing distributor as the primary or original supplier of
28his product, he shall also designate the specific geographical
29area for which the said distributor or importing distributor is
30given distributing rights, and such distributor or importing

1distributor shall not sell or deliver the products of such
2manufacturer to any person issued a license under the provisions
3of this act whose licensed premises are not located within the
4geographical area for which distributing rights have been given
5to the distributor and importing distributor by the said
6manufacturer: Provided, That the importing distributor holding
7such distributing rights for such product shall not sell or
8deliver the same to another importing distributor without first
9having entered into a written agreement with the said secondary
10importing distributor setting forth the terms and conditions
11under which such products are to be resold within the territory
12granted to the primary importing distributor by the
13manufacturer. Nothing herein contained shall be construed to
14prevent any manufacturer from authorizing the importing
15distributor holding the distributing rights for a designated
16geographical area from selling the products of such manufacturer
17to another importing distributor also holding distributing
18rights from the same manufacturer for another geographical area,
19providing such authority be contained in writing and a copy
20thereof be given to each of the importing distributors so
21affected.

22* * *

23Section 19. The act is amended by adding a section to read:

24Section 431.2. Distributor Package Reform Permit.--(a) The
25board may issue a distributor package reform permit to a
26currently licensed distributor who makes application and pays
27the requisite permit fee for use at the same place the
28distributor maintains for the sale of malt and brewed beverages.

29(b) For a permit under subsection (a), the board shall
30require an annual fee of one thousand dollars ($1,000).

1(c) Notwithstanding any other provision of this act, the
2permit shall allow the holder to:

3(1) Break the bulk of a case and sell a unit of that case in
4quantities not less than sixty ounces so long as the holder only
5sells a package prepared for sale by the manufacturer of no more
6than twelve original containers.

7(2) Sell a growler filled with malt or brewed beverages.

8(d) Before the holder of an enhanced distributor license
9breaks the bulk of a case of malt or brewed beverages for the
10purpose of selling units of the case, the licensee shall inspect
11such case for damage and appropriate production date. When the
12licensee breaks the bulk of a case of malt or brewed beverages
13for the purpose of selling units of the case, the licensee shall
14bear all the risk of loss and shall be responsible for the
15destruction of any malt or brewed beverages which violate the
16manufacturer's specifications relating to sales by a certain
17date or within a number of days of the production date.

18(e) As used in this section:

19"Unit" shall mean an undamaged bottle, can from a case or a
20growler.

21Section 20. Section 432(d) and (f) of the act, amended 
22January 6, 2006 (P.L.1, No.1) and December 22, 2011 (P.L.530, 
23No.113), are amended and the section is amended by adding a 
24subsection to read:

25Section 432. Malt and Brewed Beverages Retail Licenses.--* *
26*

27(d) The board shall, in its discretion, grant or refuse any
28new license, the transfer of any license to a new location or
29the extension of an existing license to cover an additional area
30if such place proposed to be licensed is within three hundred

1feet of any church, hospital, charitable institution, school, or
2public playground, or if such new license, transfer or extension
3is applied for a place which is within two hundred feet of any
4other premises which is licensed by the board. The board shall
5refuse any application for a new license, the transfer of any
6license to a new location or the extension of an existing
7license to cover an additional area if, in the board's opinion,
8such new license, transfer or extension would be detrimental to
9the welfare, health, peace and morals of the inhabitants of the
10neighborhood within a radius of five hundred feet of the place
11to be licensed. The board may enter into an agreement with the
12applicant concerning additional restrictions on the license in
13question. If the board and the applicant enter into such an
14agreement, such agreement shall be binding on the applicant.
15Failure by the applicant to adhere to the agreement will be
16sufficient cause to form the basis for a citation under section
17471 and for the nonrenewal of the license under section 470. If
18the board enters into an agreement with an applicant concerning
19additional restrictions, those restrictions shall be binding on
20subsequent holders of the license until the license is
21transferred to a new location or until the board enters into a
22subsequent agreement removing those restrictions. If the
23application in question involves a location previously licensed
24by the board, then any restrictions imposed by the board on the
25previous license at that location shall be binding on the
26applicant unless the board enters into a new agreement
27rescinding those restrictions[. The board shall refuse any
28application for a new license, the transfer of any license to a
29location where the sale of liquid fuels or oil is conducted or
30the extension of an existing license to cover an additional

1area]: And provided further, That the board shall have the
2discretion to refuse a license to any person or to any
3corporation, partnership or association if such person, or any
4officer or director of such corporation, or any member or
5partner of such partnership or association shall have been
6convicted or found guilty of a felony within a period of five
7years immediately preceding the date of application for the said
8license. The board may, in its discretion, refuse an application
9for an economic development license under section 461(b.1) or an
10application for an intermunicipal transfer or a license if the
11board receives a protest from the governing body of the
12receiving municipality. The receiving municipality of an
13intermunicipal transfer or an economic development license under
14section 461(b.1) may file a protest against the approval for
15issuance of a license for economic development or an
16intermunicipal transfer of a license into its municipality, and
17such municipality shall have standing in a hearing to present
18testimony in support of or against the issuance or transfer of a
19license. Upon any opening in any quota, an application for a new
20license shall only be filed with the board for a period of six
21months following said opening.

22* * *

23(f) Hotel, eating places, or municipal golf course retail
24dispenser licensees may sell malt or brewed beverages between
25the hours of [eleven] nine o'clock antemeridian on Sunday and
26two o'clock antemeridian on Monday upon purchase of a special
27permit from the board at an annual fee as prescribed in section
28614-A of the act of April 9, 1929 (P.L.177, No.175), known as
29"The Administrative Code of 1929," which shall be in addition to
30any other license fees. Notwithstanding this provision, a

1licensee holding such a special permit may begin selling malt or
2brewed beverages on Sunday between the hours of nine o'clock
3antemeridian and eleven o'clock antemeridian provided that the
4licensee offers a meal, as that term is defined in section 406,
5beginning at nine o'clock antemeridian.

6(g) The board may issue to any retail dispenser licensee a
7restaurant license in exchange for the retail dispenser license
8in any municipality which has approved the granting of liquor
9licenses.

10(1) An applicant under this section shall surrender his
11retail dispenser license for cancellation prior to the issuance
12of the new restaurant license.

13(2) The applicant for such an exchange of license shall file
14an application for a restaurant liquor license and shall post
15notice of such application in the manner provided in section
16403. In determining whether the exchange shall be granted the
17board shall have the same discretion as provided in section 404
18in the case of any new license.

19(3) The provisions of section 461 pertaining to a quota do
20not pertain to this section for exchange purposes.

21(4) The board shall charge a one-time upgrade fee of not
22more than thirty thousand dollars ($30,000).

23Section 21. Sections 436(e) and 437(e) of the act are
24amended to read:

25Section 436. Application for Distributors', Importing
26Distributors' and Retail Dispensers' Licenses.--* * *

27(e) That the applicant is not, or in case of a partnership
28or association, that the members or partners are not, and in the
29case of a corporation, that the officers and directors are not,
30in any manner pecuniarily interested, either directly or

1indirectly, in the profits of any other class of business
2regulated under this article, except as hereinafter permitted.
3The requirements of this section shall not prohibit a
4distributor from holding a wine and spirits retail license, or
5an importing distributor from holding a wine and spirits
6wholesale license, under the conditions provided under Article
7III-A.

8* * *

9Section 437. Prohibitions Against the Grant of Licenses.--*
10* *

11(e) No distributor's or importing distributor's license
12shall be issued for any premises in any part of which there is
13operated any retail license for the sale of liquor or malt or
14brewed beverages. The requirements of this section shall not
15prohibit a distributor from holding a wine and spirits retail
16license or an importing distributor from holding a wine and
17spirits wholesale license, under the conditions provided under
18Article III-A.

19* * *

20Section 22. Section 438 of the act, amended June 25, 2010
21(P.L.217, No.35), is amended to read:

22Section 438. Number and Kinds of Licenses Allowed Same
23Licensee.--(a) Any retail dispenser may be granted licenses to
24maintain, operate or conduct any number of places for the sale
25of malt or brewed beverages, but a separate license must be
26secured for each place where malt or brewed beverages are sold.

27(b) [No person shall possess or be issued more than one
28distributor's or importing distributor's license.] A person may
29not possess or be issued more than five distributor licenses or
30more than one distributor license in a county.

1(c) No person shall possess more than one class of license,
2except that a holder of a retail dispenser's license may also be
3a holder of a retail liquor license or a wine and spirits retail
4license consistent with the restrictions contained in Article
5III-A: Provided, however, That nothing contained in this section
6shall be construed to prohibit a member of the governing board
7of a public authority created under subdivision (n) of Article
8XXIII of the act of August 9, 1955 (P.L.323, No.130), known as
9"The County Code," from having an interest in a distributor or
10importing distributor license notwithstanding the fact that the
11public authority has an interest in one or more retail licenses
12or acts as a landlord for one or more retail licenses: And,
13provided further, That, notwithstanding any other provision of
14this section, an entity may acquire both a manufacturer's
15license or a limited winery license and a hotel, restaurant or
16retail dispenser license for use at the same location and more
17than one location may be so licensed. The licenses and a
18person's interest in the licenses or in the entity holding the
19licenses shall not be subject to this section.

20Section 23. Section 441 of the act, amended or added May 31,
211996 (P.L.312, No.49), December 20, 1996 (P.L.1513, No.196),
22June 18, 1998 (P.L.664, No.86), December 9, 2002 (P.L.1653,
23No.212), June 28, 2011 (P.L.55, No.11) and December 22, 2011
24(P.L.530, No.113), is amended to read:

25Section 441. Distributors' and Importing Distributors'
26Restrictions on Sales, Storage, Etc.--(a) No distributor or
27importing distributor shall purchase, receive or resell any malt
28or brewed beverages except:

29(1) in the original containers as prepared for the market by
30the manufacturer at the place of manufacture;

1(2) in the case of identical containers repackaged in the
2manner described by subsection (f); or

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

4(b) No distributor or importing distributor, except for a
5distributor that also holds a distributor package reform permit
6under section 431.2, shall sell any malt or brewed beverages in
7quantities of less than a case or original containers containing
8one hundred twenty-eight ounces or more which may be sold
9separately: Provided, That no malt or brewed beverages sold or
10delivered shall be consumed upon the premises of the distributor
11or importing distributor, or in any place provided for such
12purpose by such distributor or importing distributor.
13Notwithstanding any other provision of this section or act, malt
14or brewed beverages which are part of a tasting conducted
15pursuant to the board's regulations may be consumed on licensed
16premises.

17(c) No distributor or importing distributor shall maintain
18or operate any place where sales are made other than that for
19which the license is granted.

20(d) (1) No distributor shall maintain any place for the
21storage of malt or brewed beverages except in the same
22municipality in which the licensed premises is located and
23unless the same has been approved by the board. In the event
24there is no place of cold storage in the same municipality, the
25board may approve a place of cold storage in the nearest
26municipality.

27(2) No importing distributor shall maintain any place for
28the storage of malt or brewed beverages except in the franchise
29territory in which the licensed premises is located and unless
30the same has been approved by the board. The board shall issue

1no more than one storage facility license to an importing
2distributor. The storage location shall be designated solely as
3a storage facility, from which only sales to other licensees are
4permitted. Retail sales may be made at the licensed location
5pursuant to subsection (c). If the importing distributor
6maintains a storage location for cold storage in the same
7municipality in which the importing distributor is licensed or a
8nearby municipality, the importing distributor may continue to
9maintain that cold storage location in addition to another
10storage location within their franchise territory.

11(e) No distributor or importing distributor shall purchase,
12sell, resell, receive or deliver any malt or brewed beverages,
13except in strict compliance with the provisions of subsection
14(b) of section 431 of this act.

15(f)(1) To salvage one or more salable cases from one or more
16damaged cases, cartons or packages of malt or brewed beverages,
17a distributor or importing distributor may repackage consequent
18to inadvertent damage and sell a case, carton or package of
19identical units of malt or brewed beverages.

20(2) Repackaging is permissible only to the extent made
21necessary by inadvertent damage. Repackaging not consequent to
22damage is prohibited.

23(3) The term "identical units" as used in this subsection
24means undamaged bottles or cans of identical brand, package and
25volume.

26(g) All malt or brewed beverages purchased by an importing
27distributor from a Pennsylvania manufacturer of malt or brewed
28beverages or from any person located outside this Commonwealth
29for resale shall be invoiced to the importing distributor, shall
30come physically into the possession of such importing

1distributor and shall be unloaded into and distributed from the
2licensed premises of such importing distributor. The board may
3act to further define and control the storage and distribution
4of malt or brewed beverages in conformity with this section and
5this act.

6(h) As used in this section, the term "franchise territory"
7shall mean the geographically contiguous area in which an
8importing distributor has been given rights for the sale or
9resale of malt or brewed beverages.

10(i) Notwithstanding any other provision to the contrary,
11when making a sale of malt or brewed beverages to a private
12individual, no distributor or importing distributor may be
13required to collect the name, address or any other identifying
14information of the private individual for the purpose of keeping
15a record of the quantity of cases or volume of malt or brewed
16beverages purchased.

17(j) No distributor shall engage in the sale of wine without
18first obtaining a wine and spirits retail license under Article
19III-A. Sales of wine may only be made on premises licensed for
20the sale of malt or brewed beverages.

21Section 24. Section 442 of the act, amended or added
22December 9, 2002 (P.L.1653, No.212), December 16, 2002
23(P.L.1806, No.221), May 8, 2003 (P.L.1, No.1), July 17, 2003
24(P.L.63, No.15), November 29, 2006 (P.L.1421, No.155), June 28,
252011 (P.L.55, No.11), December 22, 2011 (P.L.530, No.113) and
26July 5, 2012 (P.L.1007, No.116), is amended to read:

27Section 442. Retail Dispensers' Restrictions on Purchases
28and Sales.--(a) (1) No retail dispenser shall purchase or
29receive any malt or brewed beverages except in original
30containers as prepared for the market by the manufacturer at the

1place of manufacture. The retail dispenser may thereafter break
2the bulk upon the licensed premises and sell or dispense the
3same for consumption on or off the premises so licensed. No
4retail dispenser may sell malt or brewed beverages for
5consumption off the premises in quantities in excess of one
6hundred ninety-two fluid ounces[.] unless the licensee acquires
7a retail package reform permit issued by the board under section
8407(c). Sales may be made in open or closed containers,
9Provided, however, That a municipality may adopt an ordinance
10restricting open containers in public places. No club licensee
11may sell any malt or brewed beverages for consumption off the
12premises where sold or to persons not members of the club.

13(2) Notwithstanding any other provision of law or any
14existing permit authorizing the sale of malt or brewed beverages
15for consumption off the premises, a retail dispenser licensee
16located in a city of the first class who is otherwise permitted
17to sell malt or brewed beverages for consumption off the
18premises may not do so after October 31, 2007, unless it
19acquires a permit from the board.

20(3) The application for a permit to sell malt or brewed
21beverages for consumption off the premises shall be on forms
22designated by the board and contain such information as the
23board may require. The application and renewal fee shall be as
24prescribed in section 614-A(28) of the act of April 9, 1929 
25(P.L.177, No.175), known as "The Administrative Code of 1929."
26However, no applicant who currently has a permit shall be
27required to pay any additional fees under section 614-A(28) of
28"The Administrative Code of 1929" in order to continue selling
29malt or brewed beverages for consumption off the premises at its
30currently licensed location for the licensing term beginning

1November 1, 2007, and ending October 31, 2008.

2(4) The application for a permit to sell malt or brewed
3beverages for consumption off the premises must be accompanied
4by a copy of the approval of such request by the hearing board
5authorized by this section.

6(5) A city of the first class shall create a hearing board
7within its Department of Licenses and Inspections to hear
8requests from licensees who are seeking a permit from the
9hearing board authorizing the licensee to sell malt or brewed
10beverages for consumption off the premises. Each hearing board
11shall consist of three persons appointed by the mayor of the
12city of the first class, who are subject to approval by the city
13council of the city of the first class. Each person so appointed
14shall serve at the pleasure of the appointing authority. The
15hearing board may, in its discretion, hold hearings to adduce
16testimony regarding a request. The hearing board must render a
17decision within ninety days of receipt of a request for approval
18of a permit to sell malt or brewed beverages for consumption off
19the premises. The hearing board must approve the request unless
20it finds that doing so would adversely affect the welfare,
21health, peace and morals of the city or its residents. A
22decision by the hearing board to deny a request may be appealed
23to the court of common pleas in the county in which the city is
24located. The failure to render a decision by the hearing board
25within the required time period shall be deemed approval of the
26permit.

27(6) Upon being satisfied that the applicant has fulfilled
28all the requirements of this act and the board's regulations,
29the board shall approve the application. Such permits shall
30expire upon the transfer of the license to a new entity or to a

1new location, or both; otherwise, such permits shall expire at
2the same time as the expiration of the underlying license.

3(b) No retail dispenser shall sell any malt or brewed
4beverages for consumption on the licensed premises except in a
5room or rooms or place on the licensed premises at all times
6accessible to the use and accommodation of the general public,
7but this section shall not be interpreted to prohibit a retail
8dispenser from selling malt or brewed beverages in a hotel or
9club house in any room of such hotel or club house occupied by a
10bona fide registered guest or member entitled to purchase the
11same or to prohibit a retail dispenser from selling malt or
12brewed beverages in a bowling alley where the licensed premises
13and bowling alley are immediately adjacent and under the same
14roof.

15(c) For the purpose of this section any person who is an
16active member of another club which is chartered by the same
17state or national organization shall have the same rights and
18privileges as members of the particular club.

19(d) For the purposes of this section, any person who is an
20active member of any volunteer firefighting company, association
21or group of this Commonwealth, whether incorporated or
22unincorporated, shall upon the approval of any club composed of
23volunteer firemen licensed under this act, have the same social
24rights and privileges as members of such licensed club.

25(e) (1) The holder of a retail dispenser license located in
26a hotel may allow persons to transport malt or brewed beverages
27from the licensed portion of the premises to the unlicensed
28portion of the premises so long as the malt or brewed beverages
29remain on the hotel property.

30(2) In addition, the holder of a retail dispenser license

1located on a golf course may allow its patrons to order malt or
2brewed beverages on licensed premises for subsequent delivery by
3the licensee on nonlicensed portions of the premises, including
4the golf course.

5(3) In addition, a holder of a restaurant or club license
6located on a golf course may sell, furnish or give liquor or
7malt or brewed beverages on the unlicensed portion of the golf
8course so long as the liquor or malt or brewed beverages remain
9on the restaurant, club or golf course.

10(4) The holder of a restaurant license located immediately
11adjacent to and under the same roof of a bowling center may
12allow persons to transport liquor or malt or brewed beverages
13from the licensed portion of the premises to the unlicensed
14portion of the premises so long as the liquor or malt or brewed
15beverages remain within the bowling center.

16(f) The holder of an eating place retail dispenser license
17may obtain an off-premises catering permit under section 493(33)
18to hold a catered function off of the licensed premises and on
19otherwise unlicensed premises where the licensee may sell malt
20or brewed beverages by the glass, open bottle or any other
21container, together with food, for consumption on those premises
22solely used for catering premises. Functions conducted under the
23authority of the permit shall be subject to the following:

24(1) malt or brewed beverages may only be provided during the
25days and hours that the license holder may otherwise sell malt
26or brewed beverages;

27(2) each catered function shall last no longer than one day
28and not more than fifty catered functions may be held each
29calendar year by each license holder for use with a particular
30license;

1(3) a catered function shall not be held at a location that
2is already subject to the applicant's or another licensee's
3license;

4(4) a permit shall not be issued to an applicant whose
5license is in safekeeping;

6(5) a permit shall not be issued to a location that is
7subject to a pending objection by the director of the Bureau of
8Licensing or the board under section 470(a.1);

9(6) a permit shall not be issued to a location that is
10subject to a pending license suspension under section 471 or the
11one-year prohibition on the issuance or transfer of a license
12under section 471(b);

13(7) no malt or brewed beverages may be taken from the
14permitted location by a patron, but the applicant may transport
15malt or brewed beverages to and from its licensed premises to
16the proposed premises;

17(8) written notice of the catered function as enumerated in
18paragraph (9) shall be provided to the local police and the
19enforcement bureau at least seven days in advance of the event;

20(9) written notice shall be provided to the board at least
21thirty days prior to a catered function. Written notice must
22include the location of the function, time of the function, host
23of the function, general information regarding the guests
24expected at the function as well as any information the board
25shall from time to time prescribe. The board may, in its
26discretion, accept notice in an electronic format. The board
27may, in its discretion, waive the thirty-day notice period for a
28catered function if:

29(i) the applicant has previously conducted functions that
30meet the requirements of this act;

1(ii) the applicant is a licensee in good standing with the
2board;

3(iii) notification was received at least fourteen days prior
4to the catered function; and

5(iv) the applicant pays a late fee of one hundred dollars
6($100);

7(10) the board shall, in its discretion, approve or
8disapprove a catered function if the applicant fails to provide
9timely notice of the catered function, does not intend to
10conduct a function that meets the requirements of this act or
11has previously conducted a function that did not meet the
12requirements of this act;

13(11) if a catered function is scheduled to occur on private
14property, the owner of that property is deemed to have submitted
15to the jurisdiction of the enforcement bureau, and the warrant
16required by section 211(a)(2) of this act shall not be necessary
17for the enforcement bureau to enter and search the premises
18during the function or any activities related to the function;

19(12) all servers at the off-premises catered function shall
20be in compliance with the responsible alcohol management
21provisions under section 471.1 of this act;

22(13) no catered function may be held for more than five
23hours per day and must end by midnight;

24(14) neither the owner of the property nor the applicant may
25sell tickets to a catered function unless one of the following
26conditions is met:

27(i) the applicant has contracted with an eligible entity for
28the function, and the function is being used to raise money for
29the eligible entity's organization;

30(ii) the applicant has contracted with a nonprofit

1organization as defined under section 501(c)(3) of the Internal
2Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)),
3for an event which has the sole purpose of raising funds for
4that nonprofit organization;

5(iii) the applicant has contracted with an organization that
6holds tax-exempt status under section 527 of the Internal
7Revenue Code of 1986;

8(15) catered functions held on unlicensed premises shall be
9subject to section 493(34) of this act;

10(16) catered functions may not be held in locations that are
11subject to a pending, protested transfer application;

12(17) a permit may not be issued to a licensee who is subject
13to objection under the board's nuisance bar program;

14(18) a permit shall not be issued to a licensee for use in
15any location that is mobile; and

16(19) a permit shall not be issued for use on any location
17used for parking at a sports event or concert event.

18(g) Notwithstanding any other provision of law or
19regulation, the holder of a retail dispenser license may hold
20happy hours up to four consecutive or nonconsecutive hours per
21day and up to fourteen hours per week during which the holder
22discounts the price of alcoholic beverages. No discounts may be
23given between the hours of midnight and the legal closing time.
24Notice of all happy hours shall be visibly posted on the
25licensed premises seven days prior to the happy hour. Except as
26provided in this subsection, a licensee shall comply with the
27provisions of 40 Pa. Code § 13.102 (relating to discount pricing
28practices). Events conducted under the authority of 40 Pa. Code
29§ 13.102(b) shall not be counted against the four-hours per day
30or fourteen-hours per week.

1Section 25. Section 443(b) of the act, amended May 31, 1996
2(P.L.312, No.49), is amended and the section is amended by
3adding a subsection to read:

4Section 443. Interlocking Business Prohibited.--* * *

5(b) No distributor or importing distributor and no officer
6or director of any distributor or importing distributor shall at
7the same time be a manufacturer, a retail dispenser or a liquor
8licensee, or be an officer, director, stockholder or creditor of
9a manufacturer, a retail dispenser or a liquor licensee, or,
10directly or indirectly, own any stock of, or have any financial
11interest in, or be the owner, proprietor or lessor of, any place
12covered by any other malt or brewed beverage or liquor license.
13The requirements of this section or any other provision of law,
14shall not prohibit the holder of a distributor license from
15holding a wine and spirits retail license issued pursuant to
16Article III-A, or an importing distributor from also holding a
17wine and spirits wholesale license issued pursuant to Article
18III-A.

19* * *

20(h) (1) Notwithstanding any other provision of law, a
21manufacturer or licensee and its officers, directors,
22shareholders, servants, agents or employes may contribute and a
23manufacturer or licensee and its officers, directors,
24shareholders, servants, agents or employes may accept moneys or
25other things of value solely for the administration of a
26responsible alcohol management training program for alcohol
27service personnel as provided under section 471.1. The moneys or
28other things of value may be provided by or to a manufacturer or
29licensee and its officers, directors, shareholders, servants,
30agents or employes directly of, by or to a trade organization

1consisting, in whole or in part, of a group of licensees.

2(2) The manufacturer, licensee and trade organization
3associated with the person providing moneys or other things of
4value must keep a record of the value of the moneys or other
5things of value provided, the date provided and the entity to
6whom the moneys or other things of value were provided, as part
7of the records required under section 493(12).

8(3) The manufacturer, licensee and trade organization
9associated with the person receiving the moneys or other things
10of value must keep a record of the value of the moneys or other
11things of value received, the date provided, the entity from
12whom the moneys or other things of value were received and the
13manner in which the moneys or other things of value were used,
14as part of the records required under section 493(12) of this
15act.

16Section 26. Section 446(a)(1) of the act, amended December
1722, 2011 (P.L.530, No.113), is amended to read:

18Section 446. Breweries.--(a) Holders of a brewery license
19may:

20(1) Sell malt or brewed beverages produced and owned by the
21brewery under such conditions and regulations as the board may
22enforce, to individuals for consumption on the licensed premises
23in any container or package of any volume and to hotel,
24restaurant, club, grocery stores and public service liquor
25licensees.

26* * *

27Section 27. Section 461(a) of the act, amended October 24,
282012 (P.L.1203, No.149), is amended and the section is amended
29by adding a subsection to read:

30Section 461. Limiting Number of Retail Licenses To Be Issued

1In Each County.--(a) No additional restaurant, eating place
2retail dispenser or club licenses shall be issued within a
3county if the total number of restaurant and eating place retail
4dispenser licenses is greater than one license for each three
5thousand inhabitants in the county, except the board may issue
6licenses to public venues, performing arts facilities,
7continuing care retirement communities, airport restaurants,
8municipal golf courses, hotels, privately-owned private golf
9courses, privately-owned public golf courses, racetracks,
10automobile racetracks, nonprimary pari-mutuel wagering
11locations, privately-owned ski resorts, grocery stores and to
12any other entity which this act specifically exempts from the
13limitations provided in this section, and the board may issue a
14license to a club situated in a borough having a population less
15than eight thousand inhabitants which is located in a county of
16the second class A whose application is filed on or before
17February 28, 2001. In addition, the board may issue an eating
18place retail dispenser license for on-premises sales only to the
19owner or operator of a facility having a minimum of a one-half
20mile asphalt track and having a permanent seating capacity of at
21least six thousand people used principally for holding
22automobile races, regardless of the number of restaurant and
23eating place retail dispenser licenses already issued in that
24county. When determining the number of restaurant and eating
25place retail dispenser licenses issued in a county for the
26purposes of this section, licenses exempted from this limitation
27and club licenses shall not be considered. Inhabitants of dry
28municipalities shall be considered when determining the
29population in a county. Licenses shall not be issued or
30transferred into municipalities where such licenses are

1prohibited pursuant to local referendum in accordance with
2section 472. Licenses approved for intermunicipal transfer may
3not be transferred from the receiving municipality for a period
4of five years after the date that the licensed premises are
5operational in the receiving municipality.

6(a.1) An additional grocery store retail license may not be
7issued within a county if the total number of grocery store
8retail licenses is greater than one license for every fifteen
9thousand inhabitants in the county, provided that a total of two
10such licenses may be granted in a county in this Commonwealth.

11* * *

12Section 28. Section 468(a) and (e) of the act, amended or 
13added December 20, 2000 (P.L.992, No.141), February 21, 2002 
14(P.L.103, No.10), June 28, 2011 (P.L.55, No.11) and December 22, 
152011 (P.L.530, No.113), are amended to read:

16Section 468. Licenses Not Assignable; Transfers.--(a) (1)
17Licenses issued under this article may not be assigned. The
18board, upon payment of the transfer filing fee, is hereby
19authorized to transfer any license issued by it under the
20provisions of this article from one person to another or from
21one place to another, or both. Except for restaurant liquor and
22eating place retail dispenser licenses transferred under section
23461(b.4), if the license is a retail license, the new location