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
24must be within the same county as the existing location or, if
25the municipality is located in more than one county, within the
26same municipality as the existing location.

27(2) In the case of distributor and importing distributor
28licenses, the board may transfer any such license from its place
29in a municipality to a place in any other municipality within
30the same county, or from one place to another place within the

1same municipality, or exchange a distributor license for an
2importing distributor license or an importing distributor
3license for a distributor license, if the building for which the
4license is to be issued has, in the case of an importing
5distributor license, an area under one roof of two thousand five
6hundred square feet and, in the case of a distributor license,
7an area under one roof of one thousand square feet: And
8provided, That, in the case of all transfers of distributor or
9importing distributor licenses, whether from a place within the
10same municipality to another place within the same municipality
11or from a place in a municipality to a place in any other
12municipality within the same county, and, in the case of an
13exchange of a distributor license for an importing distributor
14license or an importing distributor license for a distributor
15license, the premises to be affected by the transfer or exchange
16shall contain an office separate and apart from the remainder of
17the premises to be licensed for the purpose of keeping records,
18required by the board, adequate toilet facilities for employes
19of the licensee and an entrance on a public thoroughfare:
20Provided, however, That in the event that the majority of the
21voting electors of a municipality, at an election held under the
22provisions of any law so empowering them to do, shall vote
23against the issuance of distributor or importing distributor
24licenses in such municipality, the board is hereby authorized to
25transfer any such distributor or importing distributor license
26from its place in such municipality to a place in any other
27municipality within the same county, upon application prior to
28the expiration of any such license and upon payment of the
29transfer filing fee and the execution of a new bond; but no
30transfer shall be made to a person who would not have been

1eligible to receive the license originally nor for the
2transaction of business at a place for which the license could
3not lawfully have been issued originally, nor, except as herein
4provided, to a place as to which a license has been revoked.

5(3) [No license shall be transferred to any place or
6property upon which is located as a business the sale of liquid
7fuels and oil.] Except in cases of emergency such as death,
8serious illness, or circumstances beyond the control of the
9licensee, as the board may determine such circumstances to
10justify its action, transfers of licenses may be made only at
11times fixed by the board. In the case of the death of a
12licensee, the board may transfer the license to the surviving
13spouse or personal representative or to a person designated by
14him. From any refusal to grant a transfer or upon the grant of
15any transfer, the party aggrieved shall have the right of appeal
16to the proper court in the manner hereinbefore provided.

17(4) In the event the license to be transferred has been
18ordered to serve a suspension under section 471 and has not
19served the suspension at the time the board considers the
20application and all appeals regarding the suspension have been
21exhausted, the board may require the transferee to serve the
22suspension as a condition for approval of the transfer. Further,
23the board may convert the outstanding suspension into a fine and
24require the transferee to pay the fine as a condition for
25approval of the transfer. If the board converts the outstanding
26suspension to a fine, the fine need not comply with the minimum
27and maximum amounts set forth in section 471 for the underlying
28citation.

29* * *

30(e) Notwithstanding any other provision of law, the board

1may not approve an interior connection that is greater than ten
2feet wide between a licensed business and another business. This
3subsection shall not prohibit the board from approving a renewal
4application of a license, even if the licensed business has an
5interior connection that is greater than ten feet wide to an
6unlicensed business, if the board had approved the interior
7connection prior to the effective date of this subsection. This
8subsection shall not apply to the holder of a grocery store
9retail license.

10Section 29. Section 470(a) of the act, amended December 22,
112011 (P.L.530, No.113), is amended to read:

12Section 470. Renewal of Licenses; Temporary Provisions for
13Licensees in Armed Service.--(a) All applications for renewal
14or validation of licenses under the provisions of this article
15shall be filed with tax clearance from the Department of Revenue
16and the Department of Labor and Industry and requisite license
17and filing fees, including an application surcharge of seven
18hundred dollars ($700), at least sixty days before the
19expiration date of same: Provided, however, That the board, in
20its discretion, may accept nunc pro tunc a renewal application
21filed less than sixty days before the expiration date of the
22license with the required fees, upon reasonable cause shown and
23the payment of an additional filing fee of one hundred dollars
24($100.00) for late filing: And provided further, That except
25where the failure to file a renewal application on or before the
26expiration date has created a license quota vacancy after said
27expiration date which has been filled by the issuance of a new
28license, after such expiration date, but before the board has
29received a renewal application nunc pro tunc within the time
30prescribed herein the board, in its discretion, may, after

1hearing, accept a renewal application filed within two years
2after the expiration date of the license with the required fees
3upon the payment of an additional filing fee of two hundred
4fifty dollars ($250.00) for late filing. Where any such renewal
5application is filed less than sixty days before the expiration
6date, or subsequent to the expiration date, no license shall
7issue upon the filing of the renewal application until the
8matter is finally determined by the board and if an appeal is
9taken from the board's action the courts shall not order the
10issuance of the renewal license until final determination of the
11matter by the courts. The board may enter into an agreement with
12the applicant concerning additional restrictions on the license
13in question. 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 this section. A
18renewal application will not be considered filed unless
19accompanied by the requisite filing and license fees and any
20additional filing fee required by this section. Unless the board
21shall have given ten days' previous notice to the applicant of
22objections to the renewal of his license, based upon violation
23by the licensee or his servants, agents or employes of any of
24the laws of the Commonwealth or regulations of the board
25relating to the manufacture, transportation, use, storage,
26importation, possession or sale of liquors, alcohol or malt or
27brewed beverages, or the conduct of a licensed establishment, or
28unless the applicant has by his own act become a person of ill
29repute, or unless the premises do not meet the requirements of
30this act or the regulations of the board, the license of a

1licensee shall be renewed. Notwithstanding any other provision
2of this act, a noise violation shall not be the sole basis for
3objection by the board to the renewal of a license unless the
4licensee has received six prior adjudicated noise citations
5within a twenty-four-month period.

6* * *

7Section 30. Section 471(b) and (e) of the act, amended or
8added July 6, 2005 (P.L.135, No.39) and April 13, 2006 (P.L.78,
9No.26), are amended to read:

10Section 471. Revocation and Suspension of Licenses; Fines.--
11* * *

12(b) Hearing on such citations shall be held in the same
13manner as provided herein for hearings on applications for
14license. Upon such hearing, if satisfied that any such violation
15has occurred or for other sufficient cause, the administrative
16law judge shall immediately suspend or revoke the license, or
17impose a fine of not less than [fifty dollars ($50)] two hundred
18fifty dollars ($250) nor more than [one thousand dollars
19($1,000)] five thousand dollars ($5,000), or both, notifying the
20licensee by registered letter addressed to his licensed
21premises. If the licensee has been cited and found to have
22violated section 493(1) insofar as it relates to sales to minors
23or sales to a visibly intoxicated person, section 493(10)
24insofar as it relates to lewd, immoral or improper entertainment
25or section 493(14), (16) or (21), or has been found to be a
26public nuisance pursuant to section 611, or if the owner or
27operator of the licensed premises or any authorized agent of the
28owner or operator has been convicted of any violation of the act
29of April 14, 1972 (P.L.233, No.64), known as "The Controlled
30Substance, Drug, Device and Cosmetic Act," or of 18 Pa.C.S. §

15902 (relating to prostitution and related offenses) or 6301
2(relating to corruption of minors), at or relating to the
3licensed premises, the administrative law judge shall
4immediately suspend or revoke the license, or impose a fine of
5not less than [one thousand dollars ($1,000)] five thousand
6dollars ($5,000) nor more than [five thousand dollars ($5,000)]
7ten thousand dollars ($10,000), or both. However, if a licensee
8has been cited and found to have violated section 493(1) as it
9relates to sales to minors or sales to a visibly intoxicated
10person but at the time of the sale the licensee was in
11compliance with the requirements set forth in section 471.1 and
12the licensee had not sold to minors or visibly intoxicated
13persons in the previous four years, then the administrative law
14judge shall immediately suspend or revoke the license, or impose
15a fine of not less than [fifty dollars ($50)] one thousand
16dollars ($1,000) nor more than [one thousand dollars ($1,000)]
17five thousand dollars ($5,000), or both. The administrative law
18judge shall notify the licensee by registered mail, addressed to
19the licensed premises, of such suspension, revocation or fine.
20In the event the fine is not paid within twenty days of the
21adjudication, the administrative law judge shall suspend or
22revoke the license, notifying the licensee by registered mail
23addressed to the licensed premises. Suspensions and revocations
24shall not go into effect until thirty days have elapsed from the
25date of the adjudication during which time the licensee may take
26an appeal as provided for in this act, except that revocations
27mandated in section 481(c) shall go into effect immediately. Any
28licensee whose license is revoked shall be ineligible to have a
29license under this act until the expiration of three years from
30the date such license was revoked. In the event a license is

1revoked, no license shall be granted for the premises or
2transferred to the premises in which the said license was
3conducted for a period of at least one year after the date of
4the revocation of the license conducted in the said premises,
5except in cases where the licensee or a member of his immediate
6family is not the owner of the premises, in which case the board
7may, in its discretion, issue or transfer a license within the
8said year. In the event the bureau or the person who was fined
9or whose license was suspended or revoked shall feel aggrieved
10by the adjudication of the administrative law judge, there shall
11be a right to appeal to the board. The appeal shall be based
12solely on the record before the administrative law judge. The
13board shall only reverse the decision of the administrative law
14judge if the administrative law judge committed an error of law,
15abused its discretion or if its decision is not based on
16substantial evidence. In the event the bureau or the person who
17was fined or whose license was suspended or revoked shall feel
18aggrieved by the decision of the board, there shall be a right
19to appeal to the court of common pleas in the same manner as
20herein provided for appeals from refusals to grant licenses.
21Each of the appeals shall act as a supersedeas unless, upon
22sufficient cause shown, the reviewing authority shall determine
23otherwise; however, if the licensee has been cited and found to
24have violated section 493(1) insofar as it relates to sales to
25minors or sales to a visibly intoxicated person, section 493(10)
26insofar as it relates to lewd, immoral or improper entertainment
27or section 493(14), (16) or (21), or has been found to be a
28public nuisance pursuant to section 611, or if the owner or
29operator of the licensed premises or any authorized agent of the
30owner or operator has been convicted of any violation of "The

1Controlled Substance, Drug, Device and Cosmetic Act," or of 18
2Pa.C.S. § 5902 or 6301, at or relating to the licensed premises,
3or if the license has been revoked under section 481(c), its
4appeal shall not act as a supersedeas unless the reviewing
5authority determines otherwise upon sufficient cause shown. In
6any hearing on an application for a supersedeas under this
7section, the reviewing authority may consider, in addition to
8other relevant evidence, documentary evidence, including records
9of the bureau, showing the prior history of citations, fines,
10suspensions or revocations against the licensee; and the
11reviewing authority may also consider, in addition to other
12relevant evidence, evidence of any recurrence of the unlawful
13activity occurring between the date of the citation which is the
14subject of the appeal and the date of the hearing. If the
15reviewing authority is the board, no hearing shall be held on
16the application for a supersedeas; however, a decision shall be
17made based on the application, answer and documentary evidence
18under this subsection. If the application for a supersedeas is
19for a license that has been revoked under section 481(c), the
20reviewing authority shall grant the supersedeas only if it finds
21that the licensee will likely prevail on the merits. No penalty
22provided by this section shall be imposed for any violations
23provided for in this act unless the bureau notifies the licensee
24of its nature within thirty days of the completion of the
25investigation.

26* * *

27(e) If a licensee has been cited and found to have violated
28section 493(1) for a second or subsequent offense as it relates
29to sales to minors or sales to a visibly intoxicated person, the
30administrative law judge, in addition to the penalties set forth

1in subsection (b), shall impose a suspension of at least two
2consecutive weekend days when the offense is a second offense or
3two consecutive Saturdays of operation if the licensee does not
4hold a Sunday sales permit, and a suspension of at least seven
5consecutive days of operation when the offense is a third or
6subsequent offense. The mandatory suspension provision shall not
7apply to licensees which also hold a license issued by the
8Pennsylvania Gaming Control Board for the use of their premises.
9Further, the administrative law judge may, in such instances,
10require the licensee to comply with the requirements set forth
11in section 471.1 pertaining to responsible alcohol management.
12Such compliance may be required for a period of up to one year.
13Failure to adhere with such an order is sufficient cause for the
14issuance of a citation under subsection (a).

15* * *

16Section 31. Section 471.1(a) of the act, added December 20, 
172000 (P.L.992, No.141), is amended to read:

18Section 471.1. Responsible Alcohol Management.--(a) The
19board is authorized to offer a responsible alcohol service
20program to licensees. The program shall consist of four parts:
21new employe orientation, training for alcohol service personnel,
22manager/owner training and the displaying of responsible alcohol
23service signage. New employe orientation shall consist of
24orienting newly hired alcohol service personnel as to
25Pennsylvania law relating to the sale, furnishing or serving of
26alcoholic beverages to minors and visibly intoxicated persons.
27It shall also mean orienting newly hired alcohol service
28personnel to responsible server practices, as the term is
29defined by the board, through regulation. Training for alcohol
30service personnel shall be as set forth by the board, but at

1minimum it shall consist of training to prevent service of
2alcohol to minors and to visibly intoxicated persons.
3Manager/owner training shall be as set forth by the board, but
4at a minimum it shall consist of training on how to monitor
5employes, proper service of alcohol and how to develop an
6appropriate alcohol service policy. The responsible alcohol
7service signage shall be as set forth by the board and shall
8consist of signage dealing with the licensee's policy against
9sales to minors and visibly intoxicated persons. Alcohol service
10personnel training [may] shall be conducted by [the board or by
11an entity] entities certified by the board to conduct such
12training.

13* * *

14Section 32. Section 472(a) of the act, amended February 21, 
152002 (P.L.103, No.10), is amended to read:

16Section 472. Local Option.--(a) In any municipality or any
17part of a municipality where such municipality is split so that
18each part thereof is separated by another municipality, an
19election may be held, subject to subsection (c), on the date of
20the primary election immediately preceding any municipal
21election, but not oftener than once in four years, to determine
22the will of the electors with respect to the granting of liquor
23licenses to hotels, restaurants, resort facilities and clubs,
24not oftener than once in four years, to determine the will of
25the electors with respect to the granting of liquor licenses to
26public venues, to performing arts facilities, to continuing care
27retirement communities, to hotels located on property owned by
28an accredited college or university, to privately-owned private
29golf courses or to privately-owned public golf courses, not
30oftener than once in four years, to determine the will of the

1electors with respect to the granting of licenses to retail
2dispensers of malt and brewed beverages, not oftener than once
3in four years, to determine the will of the electors with
4respect to granting of licenses to wholesale distributors and
5importing distributors, not more than once in two years, to
6determine the will of the electors with respect to the granting
7of club liquor licenses or club retail dispenser licenses to
8incorporated units of national veterans' organizations, not
9oftener than once in two years to determine the will of the
10electors with respect to the granting of special occasion
11permits to qualified organizations, not more than once in two
12years, to determine the will of the electors with respect to
13granting of licenses to grocery stores, or not more than once in
14four years, to determine the will of the electors with respect
15to the establishment[, operation and maintenance by the board of
16Pennsylvania liquor stores] of wine and spirits retail
17licensees, within the limits of such municipality or part of a
18split municipality, under the provisions of this act: Provided,
19however, Where an election shall have been held at the primary
20preceding a municipal election in any year, another election may
21be held under the provisions of this act at the primary
22occurring the fourth year after such prior election: And
23provided further, That an election on the question of
24establishing and operating a State liquor store shall be
25initiated only in those municipalities, or that part of a split
26municipality that shall have voted against the granting of
27liquor licenses; and that an election on the question of
28granting wholesale distributor and importing distributor
29licenses shall be initiated only in those municipalities or
30parts of split municipalities that shall have at a previous

1election voted against the granting of dispenser's licenses.
2Whenever electors equal to at least twenty-five per centum of
3the highest vote cast for any office in the municipality or part
4of a split municipality at the last preceding general election
5shall file a petition with the county board of elections of the
6county for a referendum on the question of granting any of said
7classes of licenses [or the establishment of Pennsylvania liquor
8stores], the said county board of elections shall cause a
9question to be placed on the ballots or on the voting machine
10board and submitted at the primary immediately preceding the
11municipal election. Separate petitions must be filed for each
12question to be voted on. Said proceedings shall be in the manner
13and subject to the provisions of the election laws which relate
14to the signing, filing and adjudication of nomination petitions,
15insofar as such provisions are applicable.

16When the question is in respect to the granting of liquor
17licenses, it shall be in the following form:

18Do you favor the granting of liquor licenses for the
19sale of liquor in.......................................
20of.....................................................?

Yes

No

21When the question is in respect to the granting of liquor
22licenses to resort facilities in those municipalities that do
23not already allow the retail sale of liquor, it shall be in the
24following form:

25Do you favor the granting of liquor licenses to resort
26facilities for the sale of liquor in the................
27of.....................................................?

Yes

No

28When the question is in respect to the granting of restaurant
29liquor licenses for use at public venues in those municipalities
30that do not already allow the retail sale of liquor, it shall be

1in the following form:

2Do you favor the granting of liquor licenses to public
3venues for the sale of liquor in the....................
4of.....................................................?

Yes

No

5When the question is in respect to the granting of restaurant
6liquor licenses for use at performing arts facilities in those
7municipalities that do not already allow the retail sale of
8alcohol, it shall be in the following form:

9Do you favor the granting of liquor licenses to
10performing arts facilities for the sale of liquor in
11the.....................................................
12of.....................................................?

 

Yes

No

13When the question is in respect to the granting of liquor
14licenses for hotels located on property owned by an accredited
15college or university in those municipalities that do not
16already allow the granting of liquor licenses, it shall be in
17the following form:

18Do you favor the granting of liquor licenses to hotels
19on property owned by an accredited college or university
20in the..................................................
21of.....................................................?

Yes

No

22When the question is in respect to the granting of liquor
23licenses, for privately-owned private golf courses, it shall be
24in the following form:

25Do you favor the granting of liquor licenses for
26privately-owned private golf courses for the sale of
27liquor in....................by.........................
28of.....................................................?

Yes

No

29When the question is in respect to the granting of liquor
30licenses, for privately-owned public golf courses, it shall be

1in the following form:

2Do you favor the granting of liquor licenses for
3privately-owned public golf courses for the sale of
4liquor in....................by.........................
5of.....................................................?

Yes

No

6When the question is in respect to the granting of liquor
7licenses to continuing care retirement communities in those
8municipalities that have not already approved the granting of
9liquor licenses, it shall be in the following form:

10Do you favor the granting of liquor licenses for
11continuing care retirement communities
12in...........................by.........................
13of.....................................................?

Yes

No

14When the question is in respect to the granting of licenses
15to retail dispensers of malt and brewed beverages, it shall be
16in the following form:

17Do you favor the granting of malt and brewed beverage

 

18retail dispenser licenses for consumption on premises
19where sold in the.......................................
20of.....................................................?

Yes

No

21When the question is in respect to the granting of grocery
22store licenses for the sale of wine for consumption off the
23premises, it shall be in the following form:

24Do you favor the granting of licenses for grocery stores
25for the sale of wine for consumption off the premises
26in.........................by...........................
27of.....................................................?

 

 

Yes

No

28When the question is in respect to the granting of licenses
29to wholesale distributors of malt or brewed beverages and
30importing distributors, it shall be in the following form:

1Do you favor the granting of malt and brewed beverage
2wholesale distributor's and importing distributor's
3licenses not for consumption on premises where sold in
4the.....................................................
5of.....................................................?

 

 

 

Yes

No

6When the question is in respect to the granting of club
7liquor licenses to incorporated units of national veterans'
8organizations, it shall be in the following form:

9Do you favor the granting of club liquor licenses to
10incorporated units of national veterans' organizations
11in the..................................................
12of.....................................................?

 

Yes

No

13When the question is in respect to the granting of club
14retail dispenser licenses to incorporated units of national
15veterans' organizations, it shall be in the following form:

16Do you favor the granting of club retail dispenser
17licenses to incorporated units of national veterans'
18organizations in the....................................
19of.....................................................?

Yes

No

20When the question is in respect to the granting of special
21occasion permits allowing the sale of liquor by qualified
22organizations in municipalities that do not already allow the
23retail sale of liquor, it shall be in the following form:

24Do you favor the granting of special occasion permits to
25allow the sale of liquor by qualified organizations in
26the.....................................................
27of.....................................................?

Yes

No

28When the question is in respect to the granting of special
29occasion permits allowing the sale of malt or brewed beverages
30only by qualified organizations in municipalities that do not

1already allow the retail sale of malt or brewed beverages, it
2shall be in the following form:

3Do you favor the granting of special occasion permits to
4allow the sale of malt or brewed beverages only by
5qualified organizations in the..........................
6of.....................................................?

Yes

No

7When the question is in respect to the [establishment,
8operation and maintenance of Pennsylvania liquor stores]
9granting of licenses to wine and spirits retail operators for
10the sale of liquor for consumption off the premises, it shall be
11in the following form:

12Do you favor the [establishment, operation and
13maintenance of Pennsylvania liquor stores] granting of
14wine and spirits retail licenses for the sale of liquor
15for consumption off the premises in
16the.....................................................
17of.....................................................?

Yes

No

18In case of a tie vote, the status quo shall obtain. If a
19majority of the voting electors on any such question vote "yes,"
20then liquor licenses shall be granted by the board to hotels,
21restaurants, resort facilities and clubs, or liquor licenses
22shall be granted by the board to public venues, to performing
23arts facilities, to continuing care retirement communities, to
24hotels located on property owned by an accredited college or
25university, to privately-owned private golf courses or to
26privately-owned public golf courses, or malt and brewed beverage
27retail dispenser licenses or wholesale distributor's and
28importing distributor's license for the sale of malt or brewed
29beverages shall be granted by the board, or club liquor licenses
30or club retail dispenser licenses shall be granted by the board

1to incorporated units of national veterans' organizations, or
2special occasion permits may be issued to qualified
3organizations, or [the board may establish, operate and maintain
4Pennsylvania liquor stores] licenses to grocery stores or to
5wine and spirits retail licensees, as the case may be, in such
6municipality or part of a split municipality, as provided by
7this act; but if a majority of the electors voting on any such
8question vote "no," then the board shall have no power to grant
9or to renew upon their expiration any licenses of the class so
10voted upon in such municipality or part of a split
11municipality[; or if the negative vote is on the question in
12respect to the establishment, operation and maintenance of
13Pennsylvania liquor stores, the board shall not open and operate
14a Pennsylvania liquor store in such municipality or part of a
15split municipality, nor continue to operate a then existing
16Pennsylvania liquor store in the municipality or part of a split
17municipality for more than two years thereafter or after the
18expiration of the term of the lease on the premises occupied by
19such store, whichever period is less, unless and until at a
20later election a majority of the voting electors vote "yes" on
21such question].

22* * *

23Section 33. Section 491 of the act, amended October 5, 1994
24(P.L.522, No.77), February 21, 2002 (P.L.103, No.10), December
259, 2002 (P.L.1653, No.212), July 17, 2003 (P.L.63, No.15),
26December 22, 2011 (P.L.530, No.113) and July 5, 2012 (P.L.1007,
27No.116), is amended to read:

28Section 491. Unlawful Acts Relative to Liquor, Alcohol and
29Liquor Licensees.--

30It shall be unlawful--

1(1) Sales of Liquor. For any person, by himself or by an
2employe or agent, to expose or keep for sale, or directly or
3indirectly, or upon any pretense or upon any device, to sell or
4offer to sell any liquor within this Commonwealth, except in
5accordance with the provisions of this act and the regulations
6of the board. This clause shall not be construed to prohibit
7hospitals, physicians, dentists or veterinarians who are
8licensed and registered under the laws of this Commonwealth from
9administering liquor in the regular course of their professional
10work and taking into account the cost of the liquor so
11administered in making charges for their professional service,
12or a pharmacist duly licensed and registered under the laws of
13this Commonwealth from dispensing liquor on a prescription of a
14duly licensed physician, dentist or veterinarian, or selling
15medical preparations containing alcohol, or using liquor in
16compounding prescriptions or medicines and making a charge for
17the liquor used in such medicines, or a manufacturing pharmacist
18or chemist from using liquor in manufacturing preparations unfit
19for beverage purposes and making a charge for the liquor so
20used. All such liquors so administered or sold by hospitals,
21physicians, dentists, veterinarians, pharmacists or chemists
22shall conform to the Pharmacopoeia of the United States, the
23National Formulary, or the American Homeopathic Pharmacopoeia.
24This clause shall not be construed to prohibit an executor or an
25administrator of a decedent's estate from selling privately or
26at public auction liquor which was an asset of the decedent. The
27board shall establish regulations to ensure that State taxes
28from the sales will be paid by the estate from the proceeds of
29the sale. The board may not prohibit a sale of liquor for the
30reason that it was not lawfully acquired prior to January 1,

11934 or has not been purchased from a Pennsylvania Liquor Store
2or in compliance with Pennsylvania law.

3(2) Possession or Transportation of Liquor or Alcohol. For
4any person, except a manufacturer or the board or the holder of
5a sacramental wine license or of an importer's license or a wine
6and spirits retail licensee, to possess or transport any liquor
7or alcohol within this Commonwealth which was not lawfully
8acquired prior to January first, one thousand nine hundred and
9thirty-four, or has not been purchased from a Pennsylvania
10Liquor Store, a wine and spirits wholesale licensee or a
11licensed limited winery in Pennsylvania, except in accordance
12with section 488 or the board's regulations. In addition, it
13shall be lawful for anyone to possess miniatures totaling less
14than one gallon purchased in another state or a foreign country.
15The burden shall be upon the person possessing or transporting
16such liquor or alcohol to prove that it was so acquired.
17Notwithstanding this section or any other provision of the law,
18wine may be produced by any person without a license if the wine
19is not produced for sale and total production does not exceed
20two hundred gallons per calendar year. Wine produced in
21accordance with this clause may be used at organized affairs,
22exhibitions, competitions, contests, tastings or judgings if it
23is not sold or offered for sale.

24None of the provisions herein contained shall prohibit nor
25shall it be unlawful for any person to import into Pennsylvania,
26transport or have in his possession, an amount of liquor not
27exceeding one gallon in volume upon which a State tax has not
28been paid, if it can be shown to the satisfaction of the board
29that such person purchased the liquor in a foreign country or
30United States territory and was allowed to bring it into the

1United States. Neither shall the provisions contained herein
2prohibit nor make it unlawful for (i) any member of the armed
3forces on active duty, or (ii) any retired member of the armed
4forces, or (iii) any totally disabled veteran, or (iv) the
5spouse of any person included in the foregoing classes of
6persons to import into Pennsylvania, transport or have in his
7possession an amount of liquor not exceeding one gallon per
8month in volume upon which the State tax has not been paid, so
9long as such liquor has been lawfully purchased from a package
10store established and maintained under the authority of the
11United States and is in containers identified in accordance with
12regulations issued by the Department of Defense. Such liquor
13shall not be possessed, offered for sale or sold on any licensed
14premises. The term "package store" as used in this clause shall
15mean those retail operations located on any of the United States
16military installations, including an installation of the Army,
17Navy, Air Force, Marine Corps or Coast Guard.

18None of the provisions herein contained shall prohibit nor
19shall it be unlawful for any consul general, consul or other
20diplomatic officer of a foreign government to import into
21Pennsylvania, transport or have in his possession liquor upon
22which a State tax has not been paid, if it can be shown to the
23satisfaction of the board that such person acquired the liquor
24in a foreign country and was allowed to bring it into the United
25States. Such liquor shall not be possessed, offered for sale or
26sold on any licensed premises.

27Any person violating the provisions of this clause for a
28first offense involving the possession or transportation in
29Pennsylvania of any liquor in a package (bottle or other
30receptacle) or wine not purchased from a Pennsylvania Liquor

1Store, a wine and spirits wholesale licensee, a wine and spirits
2retail licensee or from a licensed limited winery in
3Pennsylvania, with respect to which satisfactory proof is
4produced that the required Federal tax has been paid and which
5was purchased, procured or acquired legally outside of
6Pennsylvania shall upon conviction thereof in a summary
7proceeding be sentenced to pay a fine of twenty-five dollars
8($25) for each such package, plus costs of prosecution, or
9undergo imprisonment for a term not exceeding ninety (90) days.
10Each full quart or major fraction thereof shall be considered a
11separate package (bottle or other receptacle) for the purposes
12of this clause. Such packages of liquor shall be forfeited to
13the Commonwealth in the manner prescribed in Article VI of this
14act but the vehicle, boat, vessel, animal or aircraft used in
15the illegal transportation of such packages shall not be subject
16to forfeiture: Provided, however, That if it is a second or
17subsequent offense or if it is established that the illegal
18possession or transportation was in connection with a commercial
19transaction, then the other provisions of this act providing for
20prosecution as a misdemeanor and for the forfeiture of the
21vehicle, boat, vessel, animal or aircraft shall apply.

22(3) Purchase of Liquor or Alcohol. For any person within
23this Commonwealth, by himself or by an employe or agent, to
24attempt to purchase, or directly or indirectly, or upon any
25pretense or device whatsoever, to purchase any liquor or alcohol
26from any person or source [other than a Pennsylvania Liquor
27Store], except in accordance with the provisions of this act or
28the regulations of the board.

29(4) Possession and Use of Decanters. For any person to use
30decanters of alcoholic beverages except that the use of

1decanters or other similar receptacles by licensees shall be
2permitted in the case of wines and then only in accordance with
3the regulations of the board, but nothing herein contained shall
4prohibit the manufacture and possession of wine as provided in
5clause (2) of this section.

6(5) Failure to Properly Dispose of Empty Liquor Containers.
7For any restaurant, hotel or club licensee, his servants, agents
8or employes, to fail to break any package in which liquors were
9contained, except those decanter packages that the board
10determines to be decorative, within twenty-four hours after the
11original contents were removed therefrom, unless the licensee
12participates in either a municipal recycling program, in
13accordance with the act of July 28, 1988 (P.L.556, No.101),
14known as the "Municipal Waste Planning, Recycling and Waste
15Reduction Act," or a voluntary recycling program. The licensee
16shall provide proof in writing of the participation in a
17recycling program upon the demand of the Bureau of Liquor
18Control Enforcement of the Pennsylvania State Police. The proof
19of participation shall be provided in a manner as prescribed by
20the Pennsylvania Liquor Control Board.

21(6) Sales by Restaurant and Hotel Liquor Licensees. For any
22restaurant or hotel licensee, his servants, agents or employes,
23to sell any liquor or malt or brewed beverages for consumption
24on the licensed premises except in a room or rooms or place on
25the licensed premises at all times accessible to the use and
26accommodation of the general public, but this section shall not
27be interpreted to prohibit a restaurant liquor licensee from
28providing private affairs the primary function of which is for
29catering only to weddings or special occasions arranged twenty-
30four hours in advance, nor to prohibit a hotel licensee, or a

1restaurant licensee when the restaurant is located in a hotel,
2from selling liquor or malt or brewed beverages in any room of
3such hotel occupied by a bona fide guest or to prohibit a
4restaurant licensee from selling liquor or malt or brewed
5beverages in a bowling alley where the restaurant and bowling
6alley are immediately adjacent and under the same roof.

7(7) Sales of Liquor by Manufacturers and Licensed Importers.
8For any manufacturer or licensed importer of liquor in this
9Commonwealth, his agents, servants or employes, to sell or offer
10to sell any liquor in this Commonwealth except to the board for
11use in Pennsylvania Liquor Stores, a wine and spirits wholesale
12licensee, and in the case of a manufacturer, to the holder of a
13sacramental wine license or an importer's license.
14Notwithstanding any other provision of this act, a manufacturer
15or licensed importer may sell or offer to sell liquor for
16delivery outside of this Commonwealth.

17(8) Importation and Sales of Alcohol. For any person, to
18import alcohol into this Commonwealth, or to sell alcohol to any
19person, except in accordance with section 488 and the provisions
20of this act or the regulations of the board.

21(9) Possession of Alcohol. For any person, to have alcohol
22in his possession, except in accordance with the provisions of
23this act and the regulations of the board.

24(10) Fortifying, Adulterating or Contaminating Liquor. For
25any licensee or any employe or agent of a licensee or of the
26board, to fortify, adulterate or contaminate any liquor, except
27as permitted by the regulations of the board, or to refill
28wholly or in part, with any liquid or substance whatsoever, any
29liquor bottle or other liquor container.

30(11) Importation of Liquor. For any person, other than the

1board, a wine and spirits wholesale licensee or the holder of a
2sacramental wine license, an importer's license or a direct
3shipper's license, to import any liquor whatsoever into this
4Commonwealth, but this section shall not be construed to
5prohibit railroad and pullman companies from purchasing and
6selling liquors purchased outside the Commonwealth in their
7dining, club and buffet cars which are covered by public service
8liquor licenses and which are operated in this Commonwealth.

9(12) Delivery of Liquor by Certain Licensees. For a liquor
10licensee permitted to deliver liquor, to make any deliveries
11except in his own vehicles bearing his name, address and license
12number on each side in letters not smaller than two inches in
13height, or in the vehicle of another person duly authorized to
14transport liquor within this Commonwealth.

15(13) Violation of Certain Rules and Regulations of Board.
16For any person, to violate any rules and regulations adopted by
17the board [to insure the equitable] relating to wholesale and
18retail sale and distribution of liquor and alcohol [through the
19Pennsylvania Liquor Stores] in accordance with the provisions of
20this act.

21(14) Offering Commission or Gift to Members of Board [or
22State Employe]. For any person [selling or offering to sell
23liquor or alcohol to, or purchasing at wholesale liquor or
24alcohol from, the board] licensed by the board, either directly
25or indirectly, to pay or offer to pay any commission, profit or
26remuneration, or to make or offer to make any gift to any member
27or employe of the board [or other employe of the Commonwealth]
28or to anyone on behalf of such member or employe.

29(15) Importation of alcohol from other states.
30Notwithstanding any other provision of this act, it shall not be

1unlawful for a nonlicensed resident of this Commonwealth to
2purchase alcohol outside of this Commonwealth and import that
3alcohol back into this Commonwealth so long as the nonlicensed
4resident remits all applicable taxes to the Department of
5Revenue. This section shall not apply to alcohol which is
6shipped into this Commonwealth. Section 488 shall be the sole
7law governing the shipment of alcohol into this Commonwealth.

8Section 34. Section 492 of the act, amended February 18,
91998 (P.L.162, No.25), November 10, 1999 (P.L.514, No.47),
10December 20, 2000 (P.L.992, No.141), December 9, 2002 (P.L.1653,
11No.212), January 6, 2006 (P.L.1, No.1) and December 22, 2011
12(P.L.530, No.113), is amended to read:

13Section 492. Unlawful Acts Relative to Malt or Brewed
14Beverages and Licensees.--

15It shall be unlawful--

16(1) Manufacturing Without License. Except as provided
17herein, for any person, to manufacture malt or brewed beverages,
18unless such person holds a valid manufacturer's license for such
19purpose issued by the board. Malt or brewed beverages may be
20produced by any person without a license if such malt or brewed
21beverages are produced not for sale and total production does
22not exceed two hundred gallons per calendar year. Malt or brewed
23beverages produced in accordance with this paragraph may be used
24at organized affairs, exhibitions, competitions, contests,
25tastings or judging provided it is not sold or offered for sale.

26(2) Sales of Malt or Brewed Beverages for Consumption on the
27Premises. For any person, to sell to another for consumption
28upon the premises where sold or to permit another to consume
29upon the premises where sold, any malt or brewed beverages,
30unless such person holds a valid retail dispenser license or a

1valid liquor license issued by the board authorizing the sale of
2malt or brewed beverages for consumption upon such premises.

3(3) Sales of Malt or Brewed Beverages Not for Consumption on
4the Premises. For any person, to sell to another any malt or
5brewed beverages not for consumption upon the premises where
6sold, unless such person holds a valid license permitting such
7sale.

8(5) Sales of Malt or Brewed Beverages by Hotels, Eating
9Places or Public Service Licensees During Prohibited Hours.--For
10any hotel or eating place holding a retail dispenser's license,
11or the servants, agents or employes of such licensees, to sell,
12trade or barter in malt or brewed beverages between the hours of
13two o'clock antemeridian Sunday and seven o'clock in the
14forenoon of the following Monday, or between the hours of two
15o'clock antemeridian and seven o'clock antemeridian of any week
16day: Provided, That notwithstanding any provision to the
17contrary, whenever the thirty-first day of December falls on a
18Sunday such sales of malt or brewed beverages may be made on
19such day after one o'clock postmeridian and until two o'clock
20antemeridian of the following day. For any public service
21licensee authorized to sell malt or brewed beverages or the
22servants, agents or employes of such licensees to sell, trade or
23barter in malt or brewed beverages between the hours of two
24o'clock antemeridian and seven o'clock antemeridian on any day.

25(7) Clubs Selling Between Three O'Clock Antemeridian and
26Seven O'Clock Antemeridian. For any club retail dispenser, or
27its servants, agents or employes, to sell malt or brewed
28beverages between the hours of three o'clock antemeridian and
29seven o'clock antemeridian on any day.

30(8) Transportation and Importation of Malt or Brewed

1Beverages. For any person, to transport malt or brewed beverages
2except in the original containers, or to transport malt or
3brewed beverages for another who is engaged in selling either
4liquor or malt or brewed beverages, unless such person shall
5hold (a) a license to transport for hire, alcohol, liquor and
6malt or brewed beverages, as hereinafter provided in this act,
7or (b) shall hold a permit issued by the board and shall have
8paid to the board such permit fee, as prescribed in section 614-
9A of the act of April 9, 1929 (P.L.177, No.175), known as "The
10Administrative Code of 1929," any other law to the contrary
11notwithstanding. This clause shall not be construed:

12(i) to prohibit transportation of malt or brewed beverages
13through this Commonwealth and not for delivery in this
14Commonwealth if such transporting is done in accordance with the
15rules and regulations of the board; or

16(ii) to prohibit railroad and Pullman companies from selling
17malt or brewed beverages purchased outside this Commonwealth in
18their dining, club and buffet cars which are covered by public
19service liquor licenses and which are operated in this
20Commonwealth.

21(9) Transportation of Malt or Brewed Beverages by Licensee.
22For a malt or brewed beverage licensee, to deliver or transport
23any malt or brewed beverages, excepting in vehicles bearing the
24name and address and license number of such licensee painted or
25affixed on each side of such vehicle in letters no smaller than
26two inches in height and for purposes not prohibited under this
27act.

28(11) Delivery of Malt or Brewed Beverages With Other
29Commodities. For any manufacturer, importing distributor or
30distributor, or his servants, agents or employes, except with

1board approval, to deliver or transport any malt or brewed
2beverages in any vehicle in which any other commodity is being
3transported.

4(12) Distributors and Importing Distributors Engaging in
5Other Business. For any distributor or importing distributor, or
6his servants, agents or employes, without the approval of the
7board, and then only in accordance with board regulations, to
8engage in any other business whatsoever, except the business of
9distributing malt or brewed beverages, except that the sale of
10the following goods shall be permitted on the licensed premises
11of a distributor or importing distributor:

12(i) Any book, magazine or other publication related to malt
13or brewed beverages.

14(ii) Any equipment, ingredients or other supplies necessary
15for the unlicensed manufacture of malt or brewed beverages as
16described in paragraph (1), commonly known as "homebrewing."

17If the holder of a distributor license acquires a wine and
18spirits retail license pursuant to Article III-A for use at its
19licensed premises, it may engage in the sale of liquor, so long
20as the licensee meets all of the requirements of this act. If
21the holder of an importing distributor license acquires a wine
22and spirits wholesale license pursuant to Article III-A for use
23at its licensed premises, it may engage in the sale of liquor,
24so long as the licensee meets all of the requirements of this
25act. The board shall promulgate regulations consistent with this
26act governing the sale of any other items by a distributor that
27acquires a wine and spirits retail license, as well as the sale
28of other items by an importing distributor that acquires a wine
29and spirits wholesale license.

30(13) Possession or Storage of Liquor or Alcohol by Certain

1Licensees. For any distributor, importing distributor or retail
2dispenser, or his servants, agents or employes, to have in his
3possession, or to permit the storage of on the licensed premises
4or in any place contiguous or adjacent thereto accessible to the
5public or used in connection with the operation of the licensed
6premises, any alcohol or liquor. This section may not prohibit a
7distributor that holds a wine and spirits retail license, or an
8importing distributor that holds a wine and spirits wholesale
9license, from possessing or permitting the storage of liquor on
10the licensed premises used in connection with the operation of
11the licensed premises.

12(14) Malt or Brewed Beverage Licensees Dealing in Liquor or
13Alcohol. For any malt or brewed beverage licensee, other than a
14distributor that holds a wine and spirits retail license, or an
15importing distributor that holds a wine and spirits wholesale
16license, a manufacturer, or the servants, agents or employes
17thereof, to manufacture, import, sell, transport, store, trade
18or barter in any liquor or alcohol.

19(15) Selling to Persons Doing Illegal Business. For any malt
20or brewed beverage licensee, or his servants, agents or
21employes, to knowingly sell any malt or brewed beverages to any
22person engaged in the business of illegally selling liquor or
23malt or brewed beverages.

24(16) Distributors and Importing Distributors Failing to Keep
25Records. For any importing distributor or distributor engaged in
26the sale of products, other than malt or brewed beverages, to
27fail to keep such complete separate records covering in every
28respect his transactions in malt or brewed beverages as the
29board shall by regulation require.

30(17) Fortifying, Adulterating or Contaminating Malt or

1Brewed Beverages. For any person, to fortify, adulterate,
2contaminate, or in any wise to change the character or purity
3of, the malt or brewed beverages from that as originally
4marketed by the manufacturer at the place of manufacture.

5(18) Coercing Distributors and Importing Distributors. For
6any manufacturer or any officer, agent or representative of any
7manufacturer to coerce or persuade or attempt to coerce or
8persuade any person licensed to sell or distribute malt or
9brewed beverages at wholesale or retail to establish selling
10prices for its products or to enter into any contracts or
11agreements, whether written or oral, or take any action which
12will violate or tend to violate any provisions of this act or
13any of the rules or regulations promulgated by the board
14pursuant thereto.

15(19) Modifying or Terminating Distributing Rights Agreement.
16For any manufacturer or any officer, agent or representative of
17any manufacturer to modify, cancel, terminate, rescind or not
18renew, without good cause, any distributing rights agreement,
19and in no event shall any modification, cancellation,
20termination, rescission or nonrenewal of any distributing rights
21agreement become effective for at least ninety (90) days after
22written notice of such modification, cancellation, termination,
23rescission or intention not to renew has been served on the
24affected party and board by certified mail, return receipt
25requested, except by written consent of the parties to the
26agreement. The notice shall state all the reasons for the
27intended modification, termination, cancellation, rescission or
28nonrenewal. The distributor or importing distributor holding
29such agreement shall have ninety (90) days in which to rectify
30any claimed deficiency, or challenge the alleged cause.

1If the deficiency shall be rectified within ninety (90) days
2of notice, then the proposed modification, termination,
3cancellation, rescission or nonrenewal shall be null and void
4and without legal effect.

5If the notice states as one of the reasons for the intended
6modification, cancellation, termination, rescission or renewal
7that the importing distributor or distributor's equipment or
8warehouse requires major changes or additions, then if the
9distributor or importing distributor shall have taken some
10positive action to comply with the required changes or
11additions, the distributor or importing distributor shall have
12deemed to have complied with the deficiency as set forth in the
13notice. The notice provisions of this section shall not apply if
14the reason for termination, cancellation or nonrenewal is
15insolvency, assignment for the benefit of creditors, bankruptcy,
16liquidation, fraudulent conduct in its dealings with the
17manufacturer, revocation or suspension for more than a thirty
18(30) day period of the importing distributor or distributor
19license.

20(20) Interference with Transfer of License, Business or
21Franchise. (i) For any manufacturer to interfere with or prevent
22any distributor or importing distributor from selling or
23transferring his license, business or franchise, whether before
24or after notice of modification, cancellation, termination,
25rescission or nonrenewal has been given, provided the proposed
26purchaser of the business of the distributor or importing
27distributor meets the material qualifications and standards
28required of the manufacturers other distributors or importing
29distributors; (ii) if the proposed transfer of the distributor
30or importing distributor's business is to a surviving spouse or

1adult child, the manufacturer shall not, for any reason,
2interfere with, or prevent, the transfer of the distributor or
3importing distributor's license, business or franchise. Any
4subsequent transfer by surviving spouse or adult child shall
5thereafter be subject to the provisions of subclause (i) above.

6(21) Inducing or Coercing Distributors or Importing
7Distributors to Accept Unordered Products or Commit Illegal
8Acts. For any manufacturer to compel or attempt to compel any
9distributor or importing distributor to accept delivery of any
10malt or brewed beverages or any other commodity which shall not
11have been ordered by the distributor or importing distributor,
12or to do any illegal act by any means whatsoever including, but
13not limited to, threatening to amend, cancel, terminate, rescind
14or refuse to renew any agreement existing between manufacturer
15and the distributor or importing distributor, or to require a
16distributor or importing distributor to assent to any condition,
17stipulation or provision limiting the distributor or importing
18distributor in his right to sell the products of any other
19manufacturer.

20Section 35. Section 492.1 of the act, amended January 6,
212006 (P.L.1, No.1) and December 22, 2011 (P.L.530, No.113), is
22amended to read:

23Section 492.1. Hours of Operation Relative to Manufacturers,
24Importing Distributors and Distributors.--(a) Manufacturers may
25sell or deliver malt or brewed beverages between two o'clock
26antemeridian of any Monday and twelve o'clock midnight of the
27following Saturday.

28(b) (1) Importing distributors and distributors may sell or
29deliver malt or brewed beverages between two o'clock
30antemeridian of any Monday and twelve o'clock midnight of the

1following Saturday to holders of a liquor or malt and brewed
2beverage license or permit issued by the board.

3(2) Importing distributors and distributors may sell or
4deliver malt or brewed beverages between eight o'clock
5antemeridian and [eleven o'clock postmeridian of any] two
6o'clock antemeridian of the following day, except Sunday, to
7persons not licensed or permitted by this act.

8(c) In addition to the hours authorized under subsections
9(a) and (b), manufacturers, importing distributors and
10distributors, upon purchasing a permit from the board at an
11annual fee of one hundred dollars ($100) unless the applicant
12for the permit is a distributor that holds a wine and spirits
13retail license, in which instance Article III-A governs, may
14sell malt or brewed beverages to persons not licensed under this
15act or to a holder of a special occasion permit on Sunday
16between the hours of nine o'clock antemeridian and [nine o'clock
17postmeridian] two o'clock antemeridian on Monday.

18(d) In addition to the hours authorized under subsections
19(a) and (b), delivery or receiving of malt or brewed beverages
20shall be permissible on Sunday after prior arrangement in
21accordance with the following:

22(1) A manufacturer may, at any time, deliver to any
23importing distributor or distributor to which the manufacturer
24has granted wholesale distribution rights for the manufacturer's
25product.

26(2) An importing distributor or distributor may deliver to
27any organization to which a special occasion permit has been
28issued between the hours of nine o'clock antemeridian and twelve
29o'clock noon.

30(3) An importing distributor or distributor may deliver to

1persons not licensed under this act between the hours of nine
2o'clock antemeridian and twelve o'clock noon.

3(e) Notwithstanding any provision of this section to the
4contrary, a brewery pub operating under section 446 shall be
5subject to the hours of operation set forth by the board through
6regulation.

7(f) The term "prior arrangement" shall mean that malt or
8brewed beverages having a total sale price, excluding any
9deposits or credits, exceeding two hundred fifty dollars ($250)
10have been ordered, invoiced and paid for in full at the seller's
11licensed premises before the Sunday of delivery.

12Section 36. Section 493 of the act, amended December 7, 1990
13(P.L.622, No.160), October 5, 1994 (P.L.537, No.80), June 18,
141998 (P.L.664, No.86), February 21, 2002 (P.L.103, No.10),
15December 9, 2002 (P.L.1653, No.212), May 8, 2003 (P.L.1, No.1),
16December 8, 2004 (P.L.1810, No.239), July 6, 2005 (P.L.135,
17No.39), January 6, 2006 (P.L.1, No.1), July 7, 2006 (P.L.584,
18No.84), November 29, 2006 (P.L.1421, No.155), July 16, 2007
19(P.L.107, No.34), June 28, 2011 (P.L.55, No.11), December 22,
202011 (P.L.530, No.113) and July 5, 2012 (P.L.1007, No.116), is
21amended to read:

22Section 493. Unlawful Acts Relative to Liquor, Malt and
23Brewed Beverages and Licensees.--The term "licensee," when used
24in this section, shall mean those persons licensed under [the
25provisions of Article IV] Article III-A or this article, unless
26the context clearly indicates otherwise.

27It shall be unlawful--

28(1) Furnishing Liquor or Malt or Brewed Beverages to Certain
29Persons. For any licensee or the board, or any employe, servant
30or agent of such licensee or of the board, or any other person,

1to sell, furnish or give any liquor or malt or brewed beverages,
2or to permit any liquor or malt or brewed beverages to be sold,
3furnished or given, to any person visibly intoxicated, or to any
4minor: Provided further, That notwithstanding any other
5provision of law, no cause of action will exist against a
6licensee or the board or any employe, servant or agent of such
7licensee or the board for selling, furnishing or giving any
8liquor or malt or brewed beverages or permitting any liquor or
9malt or brewed beverages to be sold, furnished or given to any
10insane person, any habitual drunkard or person of known
11intemperate habits unless the person sold, furnished or given
12alcohol is visibly intoxicated or is a minor.

13(2) Purchase or Sale of Liquor or Malt or Brewed Beverages
14on Credit; Importing Distributors or Distributors Accepting
15Cash. For any licensee, his agent, servant or employe, to sell
16or offer to sell or purchase or receive any liquor or malt or
17brewed beverages except for cash, excepting credit extended by a
18hotel or club to a bona fide guest or member, or by railroad or
19pullman companies in dining, club or buffet cars to passengers,
20for consumption while enroute, holding authorized credit cards
21issued by railroad or railroad credit bureaus or by hotel,
22restaurant, retail dispenser eating place, club and public
23service licensees, importing distributors or distributors to
24customers not possessing a license under this article and
25holding credit cards issued in accordance with regulations of
26the board or credit cards issued by banking institutions subject
27to State or Federal regulation: Provided further, That nothing
28herein contained shall be construed to prohibit the use of
29checks or drafts drawn on a bank, banking institution, trust
30company or similar depository, organized and existing under the

1laws of the United States of America or the laws of any state,
2territory or possession thereof, in payment for any liquor or
3malt or brewed beverages if the purchaser is the payor of the
4check or draft and the licensee is the payee: Provided further,
5That notwithstanding any other provision of this act to the
6contrary, it shall be unlawful for an importing distributor or
7distributor to accept cash for payment of any malt or brewed
8beverages from anyone possessing a license issued under this
9article, except it shall be permissible for the importing
10distributor or distributor to accept credit cards, money orders
11or cashiers' checks for payment of any malt or brewed beverages
12in addition to any other type of payment authorized by the board
13from anyone possessing a license under this article.
14Notwithstanding any other provision of law to the contrary,
15distributors and importing distributors may accept credit cards
16for payment of malt or brewed beverages but they are not
17required to accept credit cards. No right of action shall exist
18to collect any claim for credit extended contrary to the
19provisions of this clause. Nothing herein contained shall
20prohibit a licensee from crediting to a purchaser the actual
21price charged for original containers returned by the original
22purchaser as a credit on any sale, or from refunding to any
23purchaser the amount paid by such purchaser for such containers
24or as a deposit on containers when title is retained by the
25vendor, if such original containers have been returned to the
26licensee. Nothing herein contained shall prohibit a manufacturer
27from extending usual and customary credit for liquor or malt or
28brewed beverages sold to customers or purchasers who live or
29maintain places of business outside of the Commonwealth of
30Pennsylvania, when the liquor or malt or brewed beverages so

1sold are actually transported and delivered to points outside of
2the Commonwealth: Provided, however, That as to all transactions
3affecting malt or brewed beverages to be resold or consumed
4within this Commonwealth, every licensee shall pay and shall
5require cash deposits on all returnable original containers and
6all such cash deposits shall be refunded upon return of the
7original containers.

8(4) Peddling Liquor or Malt or Brewed Beverages. For any
9person, to hawk or peddle any liquor or malt or brewed beverages
10in this Commonwealth.

11(5) Failure to Have Brands as Advertised. For any licensee,
12his servants, agents or employes, to advertise or hold out for
13sale any liquor or malt or brewed beverages by trade name or
14other designation which would indicate the manufacturer or place
15of production of the said liquor or malt or brewed beverages,
16unless he shall actually have on hand and for sale a sufficient
17quantity of the particular liquor or malt or brewed beverages so
18advertised to meet requirements to be normally expected as a
19result of such advertisement or offer.

20(6) Brand or Trade Name on Spigot. For any licensee, his
21agents, servants or employes, to furnish or serve any malt or
22brewed beverages from any faucet, spigot or other dispensing
23apparatus, unless the trade name or brand of the product served
24shall appear in full sight of the customer and in legible
25lettering upon such faucet, spigot or dispensing apparatus.

26(7) Alcoholic Strength on Label of Malt or Brewed Beverages.
27For any licensee, or his servants, agents or employes, to
28transport, sell, deliver or purchase any malt or brewed
29beverages upon which there shall appear a label or other
30informative data which refers to the alcoholic contents of the

1malt or brewed beverage in any terms other than as a percentage
2of alcohol by volume. This clause shall be construed to permit,
3but not to require, a manufacturer to designate upon the label
4or descriptive data the alcoholic content of malt or brewed
5beverages in percentage of alcohol by volume. This clause shall
6not be construed to prohibit a manufacturer from designating
7upon the label or descriptive data the alcoholic content of malt
8or brewed beverages intended for shipment into another state or
9territory, when the laws of such state or territory require that
10the alcoholic content of the malt or brewed beverage must be
11stated upon the package.

12(8) Advertisements on Labels Giving Alcoholic Content of
13Malt or Brewed Beverages. For any manufacturer or other
14licensee, or his servants, agents or employes, to issue, publish
15or post, or cause to be issued, published or posted, any
16advertisement of any malt or brewed beverage including a label
17which shall refer in any manner to the alcoholic strength of the
18malt or brewed beverage manufactured, sold or distributed by
19such licensees, or to use in any advertisement or label such
20words as "full strength," "extra strength," "high test," "high
21proof," "pre-war strength," or similar words or phrases, which
22would lead or induce a consumer to purchase a brand of malt or
23brewed beverage on the basis of its alcoholic content, or to use
24in or on any advertisement or label any numeral, unless
25adequately explained in type of the same size, prominence and
26color, or for any licensee to purchase, transport, sell or
27distribute any malt or brewed beverage advertised or labeled
28contrary to the provisions of this clause.

29(10) Entertainment on Licensed Premises (Except Clubs);
30Permits; Fees. For any licensee, his servants, agents or

1employes, except club licensees, public venue licensees or
2performing arts facility licensees, to permit in any licensed
3premises or in any place operated in connection therewith,
4dancing, theatricals or floor shows of any sort, or moving
5pictures other than television, or such as are exhibited through
6machines operated by patrons by the deposit of coins, which
7project pictures on a screen not exceeding in size twenty-four
8by thirty inches and which forms part of the machine, unless the
9licensee shall first have obtained from the board a special
10permit to provide such entertainment, or for any licensee, under
11any circumstances, to permit in any licensed premises or in any
12place operated in connection therewith any lewd, immoral or
13improper entertainment, regardless of whether a permit to
14provide entertainment has been obtained or not. The special
15permit may be used only during the hours when the sale of liquor
16or malt or brewed beverages is permitted, unless the licensee
17holds an extended hours food license under section 499(b) which
18license would allow the special permit to be used while the
19establishment is open, and between eleven o'clock antemeridian
20on Sunday and two o'clock antemeridian on the following Monday,
21regardless of whether the licensee possesses a Sunday sales
22permit. The board shall have power to provide for the issue of
23such special permits, and to collect an annual fee for such
24permits as prescribed in section 614-A of the act of April 9,
251929 (P.L.177, No.175), known as "The Administrative Code of
261929." All such fees shall be paid into the State Stores Fund.
27No such permit shall be issued in any municipality which, by
28ordinance, prohibits amusements in licensed places. Any
29violation of this clause shall, in addition to the penalty
30herein provided, subject the licensee to suspension or

1revocation of his permit and his license.

2(11) Licensees Employed by Others. For any hotel, restaurant
3or club liquor licensee, or any malt or brewed beverage
4licensee, or any officer, servant, agent or employe of such
5licensee, to be at the same time employed, directly or
6indirectly, by any distributor, importing distributor,
7manufacturer, importer or vendor licensee or any out of State
8manufacturer. It shall also be unlawful for any distributor or
9importing distributor, or any officer, servant, agent or employe
10of such licensee, to be at the same time employed, directly or
11indirectly, by any other distributor, importing distributor,
12manufacturer, importer, vendor, out of State manufacturer, hotel
13restaurant, malt or brewed beverage licensee, or club liquor
14licensee. It shall also be unlawful for any manufacturer,
15importer, or vendor licensee, or any out of State manufacturer,
16or any officer, servant, agent or employe of such licensee or
17manufacturer, to be at the same time employed, directly or
18indirectly, by any hotel, restaurant or club liquor licensee or
19any malt or brewed beverage licensee or any distributor or
20importing distributor licensee. Nothing in this subsection shall
21be construed to prohibit a manufacturer or limited winery
22licensee, or any officer, servant, agent or employe of such
23licensee, to be employed at the same time by a hotel, restaurant
24or retail dispenser licensee if the hotel, restaurant or retail
25dispenser licensee is located at the manufacturer or limited
26winery premises pursuant to section 443. For the purposes of
27this subsection, an officer, servant, agent or employe of a
28licensee or manufacturer is an individual who has either an
29ownership interest in the licensee or manufacturer or who
30receives compensation for his or her work on behalf of the

1licensee or manufacturer.

2(12) Failure to Have Records on Premises. For any liquor
3licensee, or any importing distributor, distributor or retail
4dispenser, to fail to keep for a period of at least two years
5complete and truthful records covering the operation of his
6licensed business, particularly showing the date of all
7purchases of liquor and malt or brewed beverages, the actual
8price paid therefor, and the name of the vendor, including State
9Store receipts, or for any licensee, his servants, agents or
10employes, to refuse the board or an authorized employe of the
11board or the enforcement bureau access thereto or the
12opportunity to make copies of the same when the request is made
13during business hours. The records from the most recent six-
14month period must be maintained on the licensed premises.
15Records for the remainder of the two-year period may be kept off
16the licensed premises so long as the records are returned to the
17licensed premises within twenty-four hours of a request by the
18board or enforcement bureau. A licensee may remove the records
19for the most recent six-month period from the licensed premises
20only for a lawful business purpose provided that they are
21returned to the premises when that business is completed.

22(13) Retail Licensees Employing Minors. For any hotel,
23restaurant or club liquor licensee, or any retail dispenser, to
24employ or to permit any minor under the age of eighteen to serve
25any alcoholic beverages or to employ or permit any minor under
26the age of sixteen to render any service whatever in the
27licensed premises, nor shall any entertainer under the age of
28eighteen be employed or permitted to perform in any licensed
29premises in violation of the labor laws of this Commonwealth:
30Provided, That in accordance with board regulations minors

1between the ages of sixteen and eighteen may be employed to
2serve food, clear tables and perform other similar duties, not
3to include the dispensing or serving of alcoholic beverages. A
4ski resort, golf course or amusement park licensee may employ
5minors fourteen and fifteen years of age to perform duties in
6rooms or areas of the licensed premises; however, such minors
7may not perform duties in rooms or areas in which alcohol is
8being concurrently dispensed or served or in which alcohol is
9being concurrently stored in an unsecured manner.
10Notwithstanding any provisions of law to the contrary, a hotel,
11restaurant or club liquor licensee or any retail dispenser may
12allow students receiving instruction in a performing art to
13perform an exhibition if the students are not compensated and
14are under proper supervision. Written notice of the performance
15must be provided to the enforcement bureau prior to the
16performance.

17(14) Permitting Undesirable Persons or Minors to Frequent
18Premises. For any hotel, restaurant or club liquor licensee, or
19any retail dispenser, his servants, agents or employes, to
20permit persons of ill repute or prostitutes to frequent his
21licensed premises or any premises operated in connection
22therewith. Minors may only frequent licensed premises if: (a)
23they are accompanied by a parent; (b) they are accompanied by a
24legal guardian; (c) they are under proper supervision; (d) they
25are attending a social gathering; or (e) the hotel, restaurant
26or retail dispenser licensee has gross sales of food and
27nonalcoholic beverages equal to fifty per centum or more of its
28combined gross sale of both food and alcoholic beverages. If a
29minor is frequenting a hotel, restaurant or retail dispenser
30licensee under subsection (e), then the minor may not sit at the

1bar section of the premises, nor may any alcoholic beverages be
2served at the table or booth at which the said minor is seated
3unless said minor is with a parent, legal guardian or under
4proper supervision. Further, if a hotel, restaurant, club liquor
5licensee or retail dispenser is hosting a social gathering under
6subsection (d), then written notice at least forty-eight hours
7in advance of such gathering shall be given to the Bureau of
8Enforcement. If a minor is frequenting licensed premises with
9proper supervision under subsection (c), each supervisor can
10supervise up to twenty minors, except for premises located in
11cities of the first class, where each supervisor can supervise
12up to five minors. Notwithstanding any other provisions of this
13section, if the minors are on the premises as part of a school-
14endorsed function, then each supervisor can supervise fifty
15minors. Nothing in this clause shall be construed to make it
16unlawful for minors to frequent public venues or performing arts
17facilities.

18(15) Cashing Pay Roll, Public Assistance, Unemployment
19Compensation or Any Other Relief Checks. For any licensee or his
20servants, agents or employes to cash pay roll checks or to cash,
21receive, handle or negotiate in any way Public Assistance,
22Unemployment Compensation or any other relief checks.

23(16) Furnishing or Delivering Liquor or Malt or Brewed
24Beverages at Unlawful Hours. For any licensee, his servants,
25agents or employes, to give, furnish, trade, barter, serve or
26deliver any liquor or malt or brewed beverages to any person
27during hours or on days when the licensee is prohibited by this
28act from selling liquor or malt or brewed beverages.

29(17) Licensees, etc., Interested or Employed in
30Manufacturing or Sale of Equipment or Fixtures. For any

1licensee, or any officer, director, stockholder, servant, agent
2or employe of any licensee, to own any interest, directly or
3indirectly, in or be employed or engaged in any business which
4involves the manufacture or sale of any equipment, furnishings
5or fixtures to any hotel, restaurant or club licensees, or to
6any importing distributors, distributors or retail dispensers.
7Notwithstanding any other provision of this section or this act,
8licensees may sell glasses at not less than cost and to provide
9metal keg connectors and tap knobs to other licensees and to
10holders of special occasion permits.

11(20) (i) Retail Liquor and Retail Malt or Brewed Beverages
12Licensee's Inside Advertisements. For any retail liquor or
13retail malt or brewed beverages licensee, to display or permit
14the display in the show window or doorways of his licensed
15premises, any placard or sign advertising the brands of liquor
16or malt or brewed beverages, if the total display area of any
17such placard or sign advertising the product or products exceeds
18six hundred square inches. Nothing herein shall prohibit a
19licensee from displaying inside his licensed premises point of
20sale displays advertising brand names of products sold by him,
21other than a window or door display: Provided, That the total
22cost of all such point of sale advertising matter relating to
23any one brand shall not exceed the dollar amount set forth by
24the board through regulation. All such advertising material,
25including the window and door signs, may be furnished by a
26manufacturer, distributor or importing distributor. The
27restrictions on advertising set forth in subclause (ii) and in
28clauses (20.1) and (20.2) shall also apply to this subclause.

29(ii) Cooperative Advertising. No distributor or importing
30distributor, directly or indirectly, independent or otherwise,

1shall, except by prior written agreement, be required to
2participate with a manufacturer in the purchase of any
3advertising of a brand name product in any name, in any form,
4whether it be radio, television, newspaper, magazine or
5otherwise.

6(20.1) Manufacturer Shall Not Require Advertising. For a
7manufacturer to require a distributor or importing distributor
8to purchase any type of advertising.

9(20.2) Advertising Shall Be Ordered and Authorized in
10Advance. For any advertising to be done on behalf of a
11distributor or importing distributor which was not ordered and
12authorized in advance by the distributor or importing
13distributor.

14(21) Refusing The Right of Inspection. For any licensee, or
15his servants, agents or employes, to refuse the board or the
16enforcement bureau or any of their authorized employes the right
17to inspect completely the entire licensed premises at any time
18during which the premises are open for the transaction of
19business, or when patrons, guests or members are in that portion
20of the licensed premises wherein either liquor or malt or brewed
21beverages are sold.

22(22) Allowance or Rebate to Induce Purchases. For any
23licensee, or his servants, agents or employes, to offer, pay,
24make or allow, or for any licensee, or his servants, agents or
25employes, to solicit or receive any allowance or rebate, refunds
26or concessions, whether in the form of money or otherwise, to
27induce directly the purchase of liquor or malt or brewed
28beverages.

29(23) Money or Valuables Given to Employes to Influence
30Actions of Their Employers. For any licensee, or any agent,

1employe or representative of any licensee, to give or permit to
2be given, directly or indirectly, money or anything of
3substantial value, in an effort to induce agents, employes or
4representatives of customers or prospective customers to
5influence their employer or principal to purchase or contract to
6purchase liquor or malt or brewed beverages from the donor of
7such gift, or to influence such employers or principals to
8refrain from dealing or contracting to deal with other
9licensees.

10(24) (i) Things of Value Offered as Inducement. Except as
11provided in subclause (ii), for any licensee under the
12provisions of this article, or the board or any manufacturer, or
13any employe or agent of a manufacturer, licensee or of the
14board, to offer to give anything of value or to solicit or
15receive anything of value as a premium for the return of caps,
16stoppers, corks, stamps or labels taken from any bottle, case,
17barrel or package containing liquor or malt or brewed beverage,
18or to offer or give or solicit or receive anything of value as a
19premium or present to induce directly the purchase of liquor or
20malt or brewed beverage, or for any licensee, manufacturer or
21other person to offer or give to trade or consumer buyers any
22prize, premium, gift or other inducement to purchase liquor or
23malt or brewed beverages, except advertising novelties of
24nominal value which the board shall define. This section shall
25not prevent any manufacturer or any agent of a manufacturer from
26offering and honoring coupons which offer monetary rebates on
27purchases of wines and spirits through State Liquor Stores or
28the holder of a wine and spirits retail license or grocery store
29license, or purchases of malt or brewed beverages through
30distributors and importing distributors in accordance with

1conditions or regulations established by the board. The board or
2the holder of a wine and spirits retail license or grocery store
3license may redeem coupons offered by a manufacturer or an agent
4of a manufacturer at the time of purchase. Coupons offered by a
5manufacturer or an agent of a manufacturer shall not be redeemed
6without proof of purchase. This section shall not apply to the
7return of any monies specifically deposited for the return of
8the original container to the owners thereof.

9(ii) Notwithstanding subclause (i) or any other provision of
10law, a holder of a restaurant license that is also approved to
11hold a slot machine license or a conditional slot machine
12license under 4 Pa.C.S. Part II (relating to gaming) may give
13liquor and malt or brewed beverages free of charge to any person
14actively engaged in playing a slot machine.

15(iii) Notwithstanding subclause (i) or any other provision
16of law, the holder of a wine and spirits retail license may
17establish and implement a consumer relations marketing program
18for the purpose of offering incentives, such as coupons or
19discounts on certain products, which may be conditioned on the
20purchase of liquor by its customers.

21(25) Employment in Licensed Places. For any licensee or his
22agent, to employ or permit the employment of any person at his
23licensed hotel, restaurant or eating place for the purpose of
24enticing customers, or to encourage them to drink liquor, or
25make assignations for improper purposes.

26Any person violating the provisions of this clause shall be
27guilty of a misdemeanor and, upon conviction of the same, shall
28be sentenced to pay a fine of not less than one hundred dollars
29($100), nor more than five hundred dollars ($500), for each and
30every person so employed, or undergo an imprisonment of not less

1than three (3) months, nor more than one (1) year, or either or
2both, at the discretion of the court having jurisdiction of the
3case. The administrative law judge shall have the power to
4revoke or refuse licenses for violation of this clause.

5(26) Worthless Checks. For any retail liquor licensee or any
6retail dispenser, distributor or importing distributor, to make,
7draw, utter, issue or deliver, or cause to be made, drawn,
8uttered, issued or delivered, any check, draft or similar order,
9for the payment of money in payment for any purchase of malt or
10brewed beverages, when such retail liquor licensee, retail
11dispenser, distributor or importing distributor, has not
12sufficient funds in, or credit with, such bank, banking
13institution, trust company or other depository, for the payment
14of such check. Any person who is a licensee under the provisions
15of this article, who shall receive in payment for malt or brewed
16beverages sold by him any check, draft or similar order for the
17payment of money, which is subsequently dishonored by the bank,
18banking institution, trust company or other depository, upon
19which drawn, for any reason whatsoever, shall, within five days
20of receipt of notice of such dishonor, notify by certified mail
21the person who presented the said worthless check, draft or
22similar order and the malt beverage compliance officer for the
23board. If the violation of this clause involving a check, draft
24or similar order from the purchaser to the seller is
25subsequently honored within ten days from the day it was made,
26drawn, uttered, issued or delivered, then the malt beverage
27compliance officer shall not turn the matter over to the
28enforcement bureau for a citation.

29(27) Distributors and Importing Distributors Employing
30Minors. For any distributor or importing distributor to employ

1minors under the age of eighteen but persons eighteen and over
2may be employed to sell and deliver malt and brewed beverages. A
3distributor holding a wine and spirits retail license may not
4employ a person under the age of twenty-one to sell liquor.

5(28) Consumption of Liquor or Malt or Brewed Beverages While
6Tending Bar. For any licensee, his servants, agents or employes,
7to consume liquor or malt or brewed beverages while tending bar
8or otherwise serving liquor or malt or brewed beverages. No
9action shall be taken against a licensee under this clause
10unless the licensee is the individual consuming liquor or malt
11or brewed beverages in violation of this clause.

12(30) Pyrotechnics Prohibited. For any licensee, his
13servants, agents or employes, except licensees where pyrotechnic
14displays are performed by a pyrotechnic operator licensed by the
15Bureau of Alcohol, Tobacco, Firearms and Explosives and are
16approved by a municipal fire official, to store, handle, use or
17display any pyrotechnics within a building on the licensed
18premises. For purposes of this clause, "pyrotechnics" shall mean
19any chemical mixture, including pyrotechnic compositions,
20intended to produce a visible or audible effect by combustion,
21deflagration or detonation as defined by section 1.5.52 of the
22National Fire Protection Association Standard 1126 entitled
23"Standard for the Use of Pyrotechnics before a Proximate
24Audience," 1992 Edition.

25(31) (i) Sale or Purchase of Controlled Substance or Drug
26Paraphernalia by Licensee. For any licensee to possess, furnish,
27sell, offer to sell, or purchase or receive, or aid and abet in
28the sale or purchase of any controlled substance or drug
29paraphernalia, as defined in the act of April 14, 1972 (P.L.233,
30No.64), known as "The Controlled Substance, Drug, Device and

1Cosmetic Act," on the licensed premises unless the actions of
2the licensee are authorized by law.

3(ii) Sale or Purchase of Controlled Substances or Drug
4Paraphernalia by Servant, Agent or Employe of the Licensee. For
5any servants, agents or employes of the licensee to possess,
6furnish, sell, offer to sell or purchase or receive, or aid and
7abet in the sale or purchase of any controlled substance or drug
8paraphernalia, as defined in "The Controlled Substance, Drug,
9Device and Cosmetic Act," on the licensed premises unless the
10actions of the person are authorized by law. The licensee shall
11only be cited for a violation of this subclause if the licensee
12knew or should have known of the activity and failed to take
13substantial affirmative steps to prevent the activity on its
14premises.

15(32) Sale or Purchase of Alcohol Vaporizing Devices. For any
16licensee, his servants or agents or employes to possess or to
17permit an alcohol vaporizing device on the licensed premises.

18(33) Off-premises Catering Permit; Fees. For any licensee,
19his servants, agents or employes to sell alcohol at a location
20other than its licensed premises, unless the sale is
21specifically authorized under this act, or unless the licensee
22receives a special permit from the board to do so. Only those
23licensees holding a current and valid restaurant, hotel, brew
24pub or eating place license shall be allowed to apply for such a
25permit. Any licensee that wishes to obtain an off-premises
26catering permit must notify the board and pay the permitting fee
27by March of each calendar year regardless of whether the
28licensee has scheduled catered events. Any licensee that fails
29to notify the board and pay the permit fee by March 1 shall be
30precluded from obtaining the permit for that calendar year. If a

1licensee notifies the board and pays the permitting fee by March
21 and does not then use the permit throughout the calendar year,
3the licensee shall not be entitled to a return of the permitting
4fee. Any licensee not granted a license until after March 1 of
5the calendar year shall have sixty days from the date of the
6license transfer to notify the board of the licensee's intention
7to use an off-premises catering permit and pay the permitting
8fee. All servers at the off-premises catered function shall be
9certified under the board's responsible alcohol management
10program as required under section 471.1. The board may charge a
11fee of five hundred dollars ($500) each calendar year, to each
12applicant for the initial permit associated with a particular
13license, but no further fee shall be charged for any subsequent
14permits issued to the applicant for the license during the same
15calendar year. The applicant shall submit written notice to the
16board thirty days prior to each catered event, unless this time
17frame has been waived by the board, and the board may approve or
18disapprove each event if the applicant fails to provide timely
19notice of the catered function, does not intend to conduct a
20function that meets the requirements of this act or has
21previously conducted a function that did not meet the
22requirements of this act. The fees shall be paid into the State
23Stores Fund. Any violation of this act or the board's
24regulations for governing activity occurring under the authority
25of this permit may be the basis for the issuance of a citation
26under section 471, the nonrenewal of the license under section
27470 or the refusal by the board to issue subsequent permits or
28honor subsequent dates on the existing permit. This penalty
29shall be in addition to any other remedies available to the
30enforcement bureau or the board.

1(34) Noise. Notwithstanding any law or regulation to the
2contrary, a licensee may not use or permit to be used inside or
3outside of the licensed premises a loudspeaker or similar device
4whereby the sound of music or other entertainment, or the
5advertisement thereof, can be heard beyond the licensee's
6property line; however, any licensee that is located in an area
7which is subject to an exemption from the board's regulation
8regarding amplified music being heard off the licensed premises
9shall be exempt from compliance with this paragraph until the
10expiration of the board's order granting the exemption. The
11board's regulation regarding amplified music being heard off the
12licensed premises is otherwise superseded by this paragraph.

13(35) Wine-to-go permit and fees. For any licensee, his
14servants, agents or employes to sell unopened bottles of wine
15for consumption off the licensed premises, unless the sale is
16specifically authorized under this act, or unless the licensee
17receives a special permit from the board to do so. Only those
18licensees holding a current and valid hotel or restaurant
19license shall be allowed to apply for such a permit. Any
20licensee that wishes to obtain a wine-to-go permit must make
21application to the board on a form prescribed by the board and
22pay the permitting fees. This permit shall not be issued to a
23restaurant licensee that has an interior connection to another
24unlicensed business. The board may charge a fee of five hundred
25dollars ($500) per calendar year to each applicant for this
26permit. The fees shall be paid into the State Stores Fund. Any
27violation of this act or the board's regulations for governing
28activity occurring under the authority of this permit may be the
29basis for the issuance of a citation under section 471, the
30nonrenewal of the license under section 470 or the refusal by

1the board to issue subsequent permits or honor subsequent dates
2on the existing permit. The penalty shall be in addition to any
3other remedies available to the enforcement bureau or the board.

4(36) Grocery stores employing minors. For any servant, agent
5or employe of a grocery store to make a sale of alcohol unless
6the servant, agent or employe is eighteen years of age or older.

7(37) Sale of wine received by direct shipment. For any
8licensee to sell or offer to sell wine purchased or acquired
9from a direct wine shipper pursuant to the authority of section
10488.

11(38) Duties performed by distributors and importing
12distributors. For any licensee to require that a distributor or
13importing distributor stock merchandise in the licensee's
14cooler, rotate the licensee's stock of malt or brewed beverages,
15set up displays in the licensee's premises or pay any type of
16fee required for making the distributor's product available on
17the licensee's store shelves. This clause supersedes a contrary
18provision of a contract.

19Section 37. The act is amended by adding sections to read:

20Section 493.2. Unlawful Acts Relative to Wine and Spirits
21Retail Licensees.--(a) It is unlawful for a wine and spirits
22retail licensee, or an employe, servant or agent of the licensee
23or another person to sell, furnish or give liquor or malt or
24brewed beverages or to permit liquor or malt or brewed beverages
25to be sold, furnished or given to a minor or person who is
26visibly intoxicated.

27(b) A wine and spirits retail licensee who violates the
28provisions of subsection (a) is subject to the penalty
29provisions set forth in section 471.

30Section 493.3. Licensees and Taxes.--Notwithstanding any

1other provision of this act or the act of March 4, 1971 (P.L.6, 
2No.2), known as the "Tax Reform Code of 1971," the following 
3shall apply:

4(1) The sale of malt and brewed beverages and wine and
5spirits by an entity licensed under this act, including the sale
6of malt and brewed beverages and wine and spirits from the areas
7of a licensee's premises utilized under a retail license for
8consumption on the premises, shall be considered a sale by a
9retail dispenser under section 201 of the "Tax Reform Code of
101971."

11(2) The sale of malt and brewed beverages and wine and
12spirits to an entity described in paragraph (1) for the purpose
13of sales from the areas of a licensee's premises utilized under
14a retail license for consumption on the premises shall be
15considered a sale to a retail dispenser subject to the tax
16imposed under Article II of the "Tax Reform Code of 1971."

17(3) Except for sales under paragraphs (1) and (2), any other
18sale of malt and brewed beverages shall be considered a sale by
19a distributor, and any other sale of wine or spirits shall be
20considered a sale of liquor by a Pennsylvania Liquor Store under
21section 201 of the "Tax Reform Code of 1971."

22Section 38. Section 494 of the act, amended April 29, 1994
23(P.L.212, No.30) and November 10, 1999 (P.L.514, No.47), is
24amended to read:

25Section 494. Penalties.--(a) Any person who shall violate
26any of the provisions of this article, except as otherwise
27specifically provided, shall be guilty of a misdemeanor and,
28upon conviction thereof, shall be sentenced to pay a fine of not
29less than one hundred dollars ($100), nor more than five hundred
30dollars ($500), and on failure to pay such fine, to imprisonment

1for not less than one month, nor more than three months, and for
2any subsequent offense, shall be sentenced to pay a fine not
3less than three hundred dollars ($300), nor more than five
4hundred dollars ($500), and to undergo imprisonment for a period
5not less than three months, nor more than one year, or both. If
6the person, at or relating to the licensed premises, violates
7section 493(1), (10), (14), (16) or (21), or if the owner or
8operator of the licensed premises or any authorized agent of the
9owner or operator violates the act of April 14, 1972 (P.L.233,
10No.64), known as "The Controlled Substance, Drug, Device and
11Cosmetic Act," or 18 Pa.C.S. § 5902 (relating to prostitution
12and related offenses) or 6301 (relating to corruption of
13minors), he shall be sentenced to pay a fine not exceeding [five
14thousand dollars ($5,000)] ten thousand dollars ($10,000) or to
15undergo imprisonment for a period not less than [three] six
16months, nor more than [one year] two years, or both.

17(b) The right to suspend and revoke licenses granted under
18this article shall be in addition to the penalty set forth in
19this section.

20(c) A person convicted of selling or offering to sell any
21liquor or malt or brewed beverage without being licensed is in
22violation of this article and shall, in addition to any other
23penalty prescribed by law, be sentenced to pay a fine of two
24dollars ($2) per fluid ounce for each container of malt or
25brewed beverages and four dollars ($4) per fluid ounce for each
26container of wine or liquor found on the premises where the sale
27was made or attempted. The amount of fine per container will be
28based upon the capacity of the container when full, whether or
29not it is full at the time of the sale or attempted sale. In
30addition, all malt or brewed beverages, wine and liquor found on

1the premises shall be confiscated. If a person fails to pay the
2full amount of the fine levied under this subsection, the
3premises on which the malt or brewed beverages, wine or liquor
4was found shall be subject to a lien in the amount of the unpaid
5fine if the premises are owned by the person against whom the
6fine was levied or by any other person who had knowledge of the
7proscribed activity. The lien shall be superior to any other
8liens on the premises other than a duly recorded mortgage.

9Section 39. Section 499 of the act, added or amended October
105, 1994 (P.L.522, No.77) and February 21, 2002 (P.L.103, No.10),
11is amended to read:

12Section 499. Premises to be Vacated by Patrons.--(a) Except
13as provided for elsewhere in this section, all patrons of a
14licensee shall be required to leave that part of the premises
15habitually used for the serving of liquor or malt or brewed
16beverages to guests or patrons not later than one-half hour
17after the time the licensee is required by this act to cease
18serving liquor or malt or brewed beverages and shall not be
19permitted to have any previously served liquor or malt or brewed
20beverages in their possession, nor shall they be permitted to
21remove any previously served liquor or malt or brewed beverages
22from that part of the premises. Patrons of a licensee shall not
23be permitted to reenter that portion of the premises habitually
24used for the serving of liquor or malt or brewed beverages
25between the time designated by this act for patrons to vacate
26the licensed premises and the time designated by this act when
27the serving of liquor or malt or brewed beverages is allowed to
28begin unless the licensee has been granted a permit for extended
29hours food service.

30(a.1) Subsection (a) shall not apply to sales of malt and

1brewed beverages for consumption off the premises when the
2following conditions are met:

3(1) no licensee may sell malt or brewed beverages in excess
4of one hundred ninety-two fluid ounces in any one sale for
5consumption off the premises unless the licensee possesses a
6retail package reform permit;

7(2) sales and service of malt and brewed beverages for
8consumption off the premises are made prior to the designated
9time the licensee is required by this act to cease serving
10liquor, malt or brewed beverages;

11(3) persons who have purchased malt and brewed beverages for
12consumption off the premises shall remove the malt and brewed
13beverages from the premises by the designated time as contained
14in this act that patrons are required to vacate the premises;

15(4) no club licensee may sell any malt or brewed beverage
16for consumption off the premises where sold or to any persons
17who are not members of the club.

18(b) A licensee may remain open between the hours of two
19o'clock antemeridian and seven o'clock antemeridian for the
20purpose of serving food on any day if such licensee either
21possesses or is eligible to purchase a Sunday sales permit and
22receives an extended hours food license. The board shall
23establish an annual fee for the extended hours food license
24which shall not exceed fifty dollars ($50).

25(b.1) Upon application of any club, the board shall issue a
26club extended hours food permit for a period of six (6) days
27during the term of its license. The board shall issue
28regulations governing terms of the application. The permits
29shall be used solely for the purpose of serving food between the
30hours of three o'clock antemeridian and seven o'clock

1antemeridian. All patrons of a licensee shall be required to
2leave that part of the premises habitually used for the serving
3of liquor or malt or brewed beverages to guests or patrons not
4later than one-half hour after the time the licensee is required
5by this act to cease serving liquor or malt or brewed beverages
6and shall not be permitted to have any previously served liquor
7or malt or brewed beverages in their possession, nor shall they
8be permitted to remove any previously served liquor or malt or
9brewed beverages from that part of the premises.

10(c) Any licensee who violates this section for the first
11offense commits a summary offense and shall, upon conviction, be
12sentenced to pay a fine of not more than three hundred dollars
13($300) or to imprisonment for not more than ninety (90) days, or
14both, and for the second or any subsequent offense commits a
15misdemeanor of the third degree and shall, upon conviction, be
16sentenced to pay a fine of not more than two thousand five
17hundred dollars ($2,500) or to imprisonment for not more than
18one (1) year, or both.

19(d) This section shall not apply to holders of public
20service licenses.

21(e) Nothing in this section shall prohibit restaurant
22liquor, eating place retail dispenser or hotel licenses from
23being open seven o'clock ante meridian on Sunday until two
24o'clock ante meridian Monday for the purpose of serving food and
25nonalcoholic beverages.

26Section 40. Section 505.2 of the act, amended December 8,
272004 (P.L.1810, No.239), July 16, 2007 (P.L.107, No.34), June
2825, 2010 (P.L.217, No.35), June 28, 2011 (P.L.55, No.11) and
29December 22, 2011 (P.L.530, No.113), is amended to read:

30Section 505.2. Limited Wineries.--(a) In the interest of

1promoting tourism and recreational development in Pennsylvania,
2holders of a limited winery license may:

3(1) Produce alcoholic ciders, wines and wine coolers,
4subject to the exceptions provided under this section, only from
5an agricultural commodity grown in Pennsylvania.

6(2) Sell alcoholic cider, wine and wine coolers produced by
7the limited winery or purchased in bulk in bond from another
8Pennsylvania limited winery on the licensed premises, under such
9conditions and regulations as the board may enforce, to the
10board, to wine and spirits retail licensees, to individuals and
11to brewery, hotel, restaurant, club, grocery store and public
12service liquor licensees, and to Pennsylvania winery licensees:
13Provided, That a limited winery shall not, in any calendar year,
14purchase alcoholic cider or wine produced by other limited
15wineries in an amount in excess of fifty per centum of the
16alcoholic cider or wine produced by the purchasing limited
17winery in the preceding calendar year. In addition, the holder
18of a limited winery license may purchase wine in bottles from
19another Pennsylvania limited winery if these wines undergo a
20second fermentation process. Such wine may be sold in bottles
21bearing the purchasing limited winery's label or the producing
22limited winery's label. [Such wines, if sold by the board, may
23be sold by the producing limited winery to the purchasing
24limited winery at a price lower than the price charged by the
25board.]

26(3) Separately or in conjunction with other limited
27wineries, sell alcoholic cider, wine and wine coolers produced
28by the limited winery on no more than five (5) board-approved
29locations other than the licensed premises, with no bottling or
30production requirement at those additional board-approved

1locations and under such conditions and regulations as the board
2may enforce, to the board, wine and spirits retail licensees, to
3individuals and to brewery, hotel, restaurant, club, grocery
4store and public service liquor licensees. If two or more
5limited wineries apply to operate an additional board-approved
6location in conjunction with each other, the wineries need only
7have one board-approved manager for the location, need only pay
8one application fee and need not designate specific or distinct
9areas for each winery's licensed area. Each limited winery must
10file an application for such an additional board-approved
11location, and such location shall count as one of the five
12permitted for each limited winery. Each limited winery is
13responsible for keeping only its own complete records. A limited
14winery may be cited for a violation of the recordkeeping
15requirements of sections 512 and 513 pertaining to its own
16records only.

17(4) At the discretion of the board, obtain a special permit
18to participate in alcoholic cider, wine and food expositions off
19the licensed premises. A special permit shall be issued upon
20proper application and payment of a fee of thirty dollars ($30)
21per day for each day of permitted use, not to exceed thirty (30)
22consecutive days. The total number of days for all the special
23permits may not exceed one hundred (100) days in any calendar
24year. A special permit shall entitle the holder to engage in the
25sale by the glass, by the bottle or in case lots of alcoholic
26cider or wine produced by the permittee under the authority of a
27limited winery license. Holders of special permits may provide
28tasting samples of wines in individual portions not to exceed
29one fluid ounce. Samples at alcoholic cider, wine and food
30expositions may be sold or offered free of charge. Except as

1provided herein, limited wineries utilizing special permits
2shall be governed by all applicable provisions of this act as
3well as by all applicable regulations or conditions adopted by
4the board.

5For the purposes of this clause, "alcoholic cider, wine and
6food expositions" are defined as affairs held indoors or
7outdoors with the intent of promoting Pennsylvania products by
8educating those in attendance of the availability, nature and
9quality of Pennsylvania-produced alcoholic ciders and wines in
10conjunction with suitable food displays, demonstrations and
11sales. Alcoholic cider, wine and food expositions may also
12include activities other than alcoholic cider, wine and food
13displays, including arts and crafts, musical activities,
14cultural exhibits, agricultural exhibits and farmers markets.

15(4.1) At the discretion of the board, obtain a farmers
16market permit. The permit shall entitle the holder to
17participate in more than one farmers market at any given time
18and an unlimited number throughout the year and sell alcoholic
19cider or wine produced under the authority of the underlying
20limited winery license by the bottle or in case lots. Samples
21not to exceed one fluid once per brand of wine may be offered
22free of charge. A farmers market permit shall be issued upon
23proper application and payment of an annual fee of two hundred
24fifty dollars ($250). A permit holder may participate in more
25than one farmers market at any given time. Sales by permit
26holders shall take place during the standard hours of operation
27of the farmers market. Written notice of the date, times and
28location the permit is to be used shall be provided by the
29permit holder to the enforcement bureau at least two (2) weeks
30prior to the event. Except as provided in this subsection,

1limited wineries utilizing farmers market permits shall be
2governed by all applicable provisions of this act as well as by
3all applicable regulations adopted by the board.

4(5) Apply for and hold a hotel liquor license, a restaurant
5liquor license or a malt and brewed beverages retail license to
6sell for consumption at the restaurant or limited winery on the
7licensed winery premises, liquor, wine and malt or brewed
8beverages regardless of the place of manufacture under the same
9conditions and regulations as any other hotel liquor license,
10restaurant liquor license or malt and brewed beverages retail
11license.

12(6) (i) Secure a permit from the board to allow the holder
13of a limited winery license to use up to twenty-five per centum
14permitted fruit, not wine, in the current year's production.
15Each permit is valid only for the calendar year in which it is
16issued.

17(ii) The fee for a permit to import and use permitted fruit
18shall be in an amount to be determined by the board.

19(iii) The purpose of this section is to increase the
20productivity of limited wineries while at the same time
21protecting the integrity and unique characteristics of wine
22produced from fruit primarily grown in this Commonwealth.
23Prevailing climatic conditions have a significant impact on the
24character of the fruit. Accordingly, "permitted fruit" shall
25mean fruit grown or juice derived from fruit grown within three
26hundred fifty (350) miles of the winery.

27(iv) The department is authorized to promulgate regulations
28requiring the filing of periodic reports by limited wineries to
29ensure compliance with the provisions of this section.

30(6.1) Sell food for consumption on or off the licensed
 

1premises and at the limited winery's additional board-approved 
2locations and sell by the glass, at the licensed premises and at 
3the limited winery's additional board-approved locations, only 
4wine and alcoholic ciders that may otherwise be sold by the 
5bottle.

6(6.2) Sell wine- or liquor-scented candles acquired or
7produced by the limited winery.

8(6.3) Sell alcoholic cider, wine and wine coolers only
9between the hours of nine o'clock antemeridian and eleven
10o'clock postmeridian. A limited winery also may request approval
11from the board to extend sales hours in individual locations at
12other times during the year or beyond the limits set forth in
13this clause. The request shall be made in writing to the board's
14Office of the Chief Counsel and shall detail the exact locations
15where sales hours are proposed to be extended, the proposed
16hours and dates of extended operation and the reason for the
17proposed extended hours.

18(6.4) Store alcoholic cider, wine and wine coolers produced
19by the limited winery at no more than two (2) board-approved
20locations other than the licensed premises and those premises
21referenced in clause (3) pertaining to the five (5) board-
22approved locations for the sale of wine, with no bottling or
23production requirement at those additional locations and under
24such conditions and regulations as the board may enforce. If two
25(2) or more businesses will operate out of the same storage
26facility, the limited winery must designate specific and
27distinct areas for its storage. The limited winery's designated
28storage area must be secured and no one other than the licensee
29and his employees may be allowed access to the storage area. No
30board-approved manager will be necessary for the storage

1facility. The limited winery must fill out an application for
2such an additional board-approved storage location, and such
3location shall count as one of the two permitted for each
4limited winery. The limited winery is responsible for keeping
5only its own complete records. A limited winery may be cited for
6a violation of the recordkeeping requirements of sections 512
7and 513 pertaining to its own records only.

8(b) The total production of alcoholic ciders, wine and wine
9coolers by a limited winery may not exceed two hundred thousand
10(200,000) gallons per year.

11(c) As used in this section:

12"Agricultural commodity" shall include any of the following:
13agricultural, apicultural, horticultural, silvicultural and
14viticultural commodities.

15"Farmers market" shall include any building, structure or
16other place:

17(1) owned, leased or otherwise in the possession of a
18person, municipal corporation or public or private organization;

19(2) used or intended to be used by two or more farmers or an
20association of farmers, who are certified by the Department of
21Agriculture of the Commonwealth to participate in the Farmers'
22Market Nutrition Program subject to 7 CFR Pt. 249 (relating to
23Senior Farmers' Market Nutrition Program (SFMNP)), for the
24purpose of selling agricultural commodities produced in this
25Commonwealth directly to consumers;

26(3) which is physically located within this Commonwealth;
27and

28(4) which is not open for business more than twelve hours
29each day.

30Section 41. Section 505.4 of the act, amended December 22,

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

2Section 505.4. Distilleries.--(a) The board may issue a
3distillery of historical significance license to any distillery
4which was established prior to January 1, 1875. The holder of
5the license may manufacture and sell liquor produced on the
6licensed premises to the board, to wine and spirits retail
7licensees, to other entities licensed by the board and to the
8public under such conditions and regulations as the board may
9enforce. Production at the distillery of historical significance
10shall be limited to an amount not to exceed twenty thousand
11(20,000) gallons per year. The distillery does not need to
12establish continuous operation since January 1, 1875, in order
13to qualify for a license under this section.

14(b) (1) The board may issue a limited distillery license
15that will allow the holder thereof to operate a distillery that
16shall not exceed production of one hundred thousand (100,000)
17gallons of distilled liquor per year. The holder of the license
18may manufacture and sell bottled liquors produced on the
19licensed premises to the board, to wine and spirits retail
20licensees, to other entities licensed by the board and to the
21public between the hours of nine o'clock antemeridian and eleven
22o'clock postmeridian so long as a specific code of distilled
23liquor which is listed for sale as a stock item by the board in
24State liquor stores may not be offered for sale at a licensed
25limited distillery location at a price which is lower than that
26charged by the board and under such conditions and regulations
27as the board may enforce.

28(2) (i) The holder of a limited distillery license may,
29separately or in conjunction with other limited distillery
30licensees, sell bottled liquors produced by the distillery at no

1more than two (2) board-approved locations other than the
2licensed premises, with no bottling or production requirement at
3those additional board-approved locations and under such
4conditions and regulations as the board may enforce to the
5board, to individuals and to entities licensed by the board.

6(ii) If two (2) or more limited distilleries apply to
7operate an additional board-approved location in conjunction
8with each other, the distilleries need only have one (1) board-
9approved manager for the location, need only pay one application
10fee and need not designate specific or distinct areas for each
11distillery's licensed area. A limited distillery must file an
12application for the additional board-approved location, and that
13location shall count as one (1) of the two (2) permitted for
14each limited distillery. A limited distillery is responsible for
15keeping only its own complete records. A limited distillery may
16be cited for a violation of the recordkeeping requirements of
17sections 512 and 513 pertaining to its own records only.

18(3) The holder of a limited distillery license may apply for
19and hold a hotel liquor license, a restaurant liquor license or
20a malt and brewed beverages retail license to sell for
21consumption at the restaurant or limited distillery on the
22licensed distillery premises liquor, wine and malt or brewed
23beverages regardless of the place of manufacture under the same
24conditions and regulations as any other hotel liquor license,
25restaurant liquor license or malt and brewed beverages retail
26license.

27(4) The holder of a limited distillery license may sell food
28for consumption on or off the licensed premises and at the
29limited distillery's additional board-approved locations, and
30may sell by the glass, at the licensed premises and at the

1limited distillery's additional board-approved locations, only
2liquor that may otherwise be sold by the bottle.

3(5) The holder of a limited distillery license may provide
4tasting samples of liquor that in total do not exceed one and
5one-half (1.5) fluid ounces per person on the licensed premises
6and at the two (2) board-approved locations. Samples may be sold
7or provided free of charge and may only be provided between the
8hours of nine o'clock antemeridian and eleven o'clock
9postmeridian.

10(6) The fee for the limited distillery license shall be in
11an amount to be determined by the board but shall not exceed one
12thousand five hundred dollars ($1,500).

13(7) The board may issue to the holder of a distillery
14license a limited distillery license in exchange for the
15distillery license provided that the applicant has not
16manufactured more than one hundred thousand (100,000) gallons of
17distilled liquor in the prior calendar year. The board may not
18charge a fee for this exchange. An applicant under this
19subsection shall surrender his distillery license for
20cancellation prior to the issuance of the new limited distillery
21license. The authority of the board to exchange a distillery
22license for a limited distillery license under this subsection
23and this subsection shall expire December 31, 2012.

24(c) (1) The holder of a distillery license as issued under
25section 505 may sell bottled liquors produced on the licensed
26premises to the board, to wine and spirits retail licensees and
27other entities licensed by the board and to the public between
28the hours of nine o'clock antemeridian and eleven o'clock
29postmeridian so long as a specific code of distilled liquor
30which is listed for sale as a stock item by the board in State

1liquor stores may not be offered for sale at a licensed
2distillery location at a price which is lower than that charged
3by the board and under such conditions and regulations as the
4board may enforce.

5(2) The holder of a distillery license as issued under
6section 505 may provide tasting samples of liquor that in total
7do not exceed one and one-half (1.5) fluid ounces. Samples may
8be sold or provided free of charge between the hours of nine
9o'clock antemeridian and eleven o'clock postmeridian.

10Section 42. Section 508 of the act, amended April 29, 1994
11(P.L.212, No.30), is amended to read:

12Section 508. License Fees.--(a) The annual fee for every
13license issued to a limited winery or a winery shall be as
14prescribed in section 614-A of the act of April 9, 1929
15(P.L.177, No.175), known as "The Administrative Code of 1929."
16The fee for every license issued to a distillery (manufacturer)
17shall be as prescribed in section 614-A of "The Administrative
18Code of 1929." The annual fee for all other licenses shall be as
19prescribed in section 614-A of "The Administrative Code of
201929." An applicant for renewal of a license issued under this
21article shall file a written application with the board together
22with an application surcharge of seven hundred dollars ($700).
23Whenever any checks issued in payment of filing and/or license
24fees shall be returned to the board as dishonored, the board
25shall charge a fee of five dollars ($5.00) per hundred dollars
26or fractional part thereof, plus all protest fees, to the maker
27of such check submitted to the board. Failure to make full
28payment or pay the face amount of the check in full and all
29charges thereon as herein required within ten days after demand
30has been made by the board upon the maker of the check, the

1license of such person shall not be renewed for the license
2period or validated for any interim period for such year.

3(b) For the purpose of this section, the term "proof gallon" 
4shall mean a gallon liquid which contains one-half its volume of 
5alcohol of a specific gravity of seven thousand nine hundred 
6thirty-nine ten thousandths (.7939) at sixty degrees Fahrenheit.

7Section 42.1. Section 801 of the act is amended to read:

8Section 801. Moneys Paid Into Liquor License Fund and
9Returned to Municipalities.--(a) The following fees collected
10by the board under the provisions of this act shall be paid into
11the State Treasury through the Department of Revenue into a
12special fund to be known as the "Liquor License Fund":

13(1) License fees for hotel, restaurant and club liquor
14licenses.

15(2) License fees for retail dispensers' (malt and brewed
16beverages) licenses.

17(a.1) The license fees for grocery stores collected by the
18board under the provisions of this act shall be paid into the
19State Treasury through the Department of Revenue into the State
20Stores Fund.

21(b) The moneys in the Liquor License Fund shall, on the
22first days of February and August of each year, be paid by the
23board to the respective municipalities in which the respective
24licensed places are situated, in such amounts as represent the
25aggregate license fees collected from licenses in such
26municipalities during the preceding period.

27(c) The board shall have the power to appropriate moneys in
28the Liquor License Fund for the payment of claims for refunds
29allowed and approved by the board for moneys paid into the
30Liquor License Fund because of the over-payment or overcharge on

1license fees. In the event that the moneys in the Liquor License
2Fund have been distributed to the respective municipalities, the
3board shall have the authority to deduct from the next semi-
4annual payment to the respective municipalities the amount of
5any over-payment previously refunded by the board to any person
6on account of an overcharge or over-payment on a license fee.

7Section 43. The act is amended by adding an article to read:

8ARTICLE VIII-A

9SUPPLEMENTAL PROVISIONS

10Section 801-A. Definitions.

11The following words and phrases when used in this article
12shall have the meanings given to them in this section unless the
13context clearly indicates otherwise:

14"Emergency act." The act of June 6, 1936 (Sp.Sess., P.L.13,
15No.4), entitled, as reenacted, "An act imposing an emergency
16State tax on liquor, as herein defined, sold by the Pennsylvania
17Liquor Control Board; providing for the collection and payment
18of such tax; and imposing duties upon the Department of Revenue
19and the Pennsylvania Liquor Control Board."

20Section 802-A. Controlling provisions.

21For the purpose of the emergency act, the following shall
22apply:

23(1) The term "board" in the emergency act shall include:

24(i) The board only to the extent the board is making
25sales:

26(A) to the general public; or

27(B) of liquor sold for on-premises consumption
28to licensees holding a license permitting on-premises
29consumption of liquor.

30(ii) A wine or spirits retail licensee.

1(iii) A wine or spirits wholesale licensee only to
2the extent the wholesale licensee makes sales of liquor
3sold for on-premises consumption to licensees holding a
4license permitting on-premises consumption of liquor.

5(iv) A grocery store licensee only to the extent
6that the sales of liquor are not sold under a license
7authorizing the on-premises consumption of liquor.

8(v) Any entity selling liquor to another entity that
9is not required to pay the tax imposed by the emergency
10act.

11(2) The term "net price" shall mean total receipts
12received from the sale of liquor without any deductions for
13cost or expenses, including, but not limited to:

14(i) Any reimbursement from manufacturers, purchasers
15or other parties.

16(ii) In the case of a bundled sale which includes
17liquor, the term includes the entire purchase price
18charged for the bundled sale, unless a fair market price
19for the liquor is separately stated on the sales document
20given to the purchaser, then the term shall only include
21the price charged for the liquor.

22(3) The tax imposed by the emergency act shall be
23included in any advertised price, shelf price or any other
24price for a container of liquor and shall not be listed as an
25itemized tax on any sales receipt for the sale of liquor.

26(4) The emergency act shall be administered and enforced
27under the provisions of Article II of the act of March 4, 
281971 (P.L.6, No.2), known as the Tax Reform Code of 1971, 
29including the provisions of Article II concerning returns, 
30payment, assessment and enforcement where applicable, except
 

1that the exclusions and exemptions under Article II of the 
2Tax Reform Code of 1971 shall not apply to the emergency act, 
3except for the resale exemption, provided that exemption 
4shall not be claimed for liquor purchased for on-premises 
5consumption.

6(5) The term "fiscal month" shall mean "calendar month."

7Section 44. This act shall take effect as follows:

8(1) The addition of Article III-A of the act shall take
9effect in 120 days.

10(2) The amendment or addition of sections 401.1, 403.1,
11404.1 and 406.2 of the act shall take effect in 60 days.

12(3) The amendment or addition of sections 207, 215 and
13301 of the act shall take effect upon completion of
14divestiture of retail sale operations under Subarticle B of
15Article III-A of the act.

16(4) The amendment or addition of section 208 of the act
17shall take effect upon completion of divestiture of wholesale
18operation under Subarticle C of Article III-A of the act.

19(5) The remainder of this act shall take effect
20immediately.

21Sec<-tion 1. The definitions of "direct shipper,"
22"distributor," "importing distributor" and "retail dispenser" in
23section 102 of the act of April 12, 1951 (P.L.90, No.21), known
24as the Liquor Code, reenacted and amended June 29, 1987 (P.L.32,
25No.14) and amended or added May 31, 1996 (P.L.312, No.49) and
26February 21, 2002 (P.L.103, No.10), are amended and the section
27is amended by adding definitions to read:

28Section 102. Definitions.--The following words or phrases,
29unless the context clearly indicates otherwise, shall have the
30meanings ascribed to them in this section:

1* * *

2["Direct shipper" shall mean a person outside this
3Commonwealth who obtains a license from the board to accept
4orders placed for wine from within this Commonwealth by the
5Internet and who ships or facilitates in any way shipment of
6wine by a delivery agent or common carrier to a Pennsylvania
7Liquor Store.]

8"Direct wine shipper" shall mean a person licensed by the
9board or another state as a producer of wine who accepts orders
10placed for wine from within this Commonwealth by Internet,
11telephone or mail order. The term shall include a limited
12winery.

13* * *

14"Distributor" shall mean any person licensed by the board to
15engage in the purchase only from Pennsylvania manufacturers and
16from importing distributors and the resale of malt or brewed
17beverages, except to importing distributors and distributors, in
18the original sealed containers as prepared for the market by the
19manufacturer at the place of manufacture, but not for
20consumption on the premises where sold, and in quantities of not
21less than [a case or original containers containing one hundred
22twenty-eight ounces or more which may be sold separately] a six- 
23pack or growler.

24* * *

<-25"Food market" shall mean a reputable place of business
26operated by a responsible person or persons of good reputation
27that meets all of the following:

28(1) Principally sells food, specifically dairy, fresh
29produce, fruit, eggs, food products for consumption off the
30premises and supplies for the table.

1(2) Has an area under one roof of two thousand five hundred
2square feet to thirty thousand square feet of which more than
3seventy-five per centum of its gross floor area is used in the
4preparation, purchase, service, consumption or storage of food,
5food products for consumption off the premises and supplies for
6the table.

7* * *

8"Growler" shall mean a refillable container that holds a
9minimum of sixty-four fluid ounces for malt and brewed
10beverages.

11* * *

12"Importing distributor" shall mean any person licensed by the
13board to engage in the purchase from manufacturers and other
14persons located outside this Commonwealth and from persons
15licensed as manufacturers of malt or brewed beverages and
16importing distributors under this act, and the resale of malt or
17brewed beverages in the original sealed containers as prepared
18for the market by the manufacturer at the place of manufacture,
19but not for consumption on the premises where sold, and in
20quantities of not less than [a case or original containers
21containing one hundred twenty-eight ounces or more which may be
22sold separately] a six-pack or growler.

23* * *

24"Private label" shall mean a product made under contract by a
25manufacturer or its agent for the exclusive rights of a
26retailer.

27* * *

28"Retail dispenser" shall mean any person licensed to engage
29in the retail sale of malt or brewed beverages for consumption
30on the premises of such licensee, with the privilege of selling

1malt or brewed beverages in quantities [not in excess of one
2hundred ninety-two fluid ounces in a single sale to one person,
3to be carried from the premises by the purchaser thereof] of up 
4to four six-packs or up to two twelve-packs<- three six-packs or 
5up to one twelve-pack and one six-pack in a single transaction.

6* * *

7"Six-pack" shall mean a configuration:

8(1) consisting of up to six bottles or cans which total not
9more than ninety-six ounces; and

10(2) which is to be sold in a single sale and carried from
11the premises by the purchaser.

12* * *

13"Spirits" means an alcoholic beverage obtained by
14distillation and which is mixed with water and other substances
15in a solution. The term includes, but is not limited to, any of
16the following:

17(1) Brandy, rum, whiskey, gin, tequila, vodka, cognac or a 
18cordial, as defined in 27 CFR § 5.22 (relating to the standards 
19of identity) or 5.35 (relating to class and type), or successor 
20regulations.

21(2) A patented or nonpatented liquid or solid, containing at
22least one-half of one per centum alcohol by volume which is fit
23for use for a beverage purpose.

24* * *

25"Twelve-pack" shall mean a configuration:

26(1) consisting of up to twelve bottles or cans which total
27not more than one hundred ninety-two ounces; and

28(2) which is to be sold in a single sale and carried from
29the premises by the purchaser.

30* * *

<-1Section 1.1. The act is amended by adding a section to read:

2Section 204.1. Executive Director of Board.--The Governor
3shall, in accordance with the provisions of the Constitution of
4Pennsylvania, and by the advice and consent of a majority of the
5members of the Senate, nominate and appoint an executive
6director of the board. The executive director of the board shall
7serve at the pleasure of the Governor. The salary of the
8executive director shall be set by the executive board pursuant
9to section 709 of the act of April 9, 1929 (P.L.177, No.175), 
10known as "The Administrative Code of 1929."

11Section 1.1<- 1.2 Section 207(a) and (b) of the act, amended
12November 30, 2004 (P.L.1727, No.221) and December 8, 2004
13(P.L.1810, No.239), are amended and the section is amended by
14adding subsections to read:

15Section 207. General Powers of Board.--Under this act, the
16board shall have the power and its duty shall be:

17(a) To buy, import or have in its possession for sale and
18sell liquor, alcohol, corkscrews, wine and liquor accessories,
19trade publications, gift cards, gift certificates, wine- or
20liquor-scented candles and wine glasses in the manner set forth
21in this act: Provided, however, That all purchases shall be made
22subject to the approval of the State Treasurer, or his
23designated deputy. The board shall buy liquor and alcohol at the
24lowest price [and in the greatest variety reasonably
25obtainable]. The board shall buy any specific liquor or alcohol 
26requested by an expanded or enhanced permit holder.

27(a.1) (1) <-To close Pennsylvania Liquor Stores. Before
28making a determination to close a Pennsylvania Liquor Store, the
29board shall take into consideration the term of the current
30lease, the availability and accessibility of liquor to the

1public through the private retail market, the pricing of liquor
2in the area and the profitability of the store. If it is
3determined by the board that the private retail market is
4serving the needs of the public, and the economic viability of
5the store is unsustainable, the board shall close the
6Pennsylvania Liquor Store.

<-7(2) Where the number of distributors and importing
8distributors operating with a wine and spirits enhanced permit
9exceed the number of Pennsylvania Liquor Stores in operation
10within a county as of the effective date of this section by a
11factor of two, the Pennsylvania Liquor Stores within a county
12must close within six months except when the provisions of
13paragraph (3) apply.

14(3) Before making a decision to close a Pennsylvania Liquor
15Store within a municipality without a distributor or importing
16distributor operating with a wine and spirits enhanced permit,
17the board shall take into consideration the term of the current
18lease, the availability of and accessibility of liquor to the
19public through the private retail market, the pricing of liquor
20in the area and the profitability of the Pennsylvania Liquor
21Store. If it is determined by the board that the private retail
22market is serving the needs of the public, and the economic
23viability of the Pennsylvania Liquor Store is unsustainable, the
24board shall close the Pennsylvania Liquor Store.

25(b) To control the manufacture, possession, sale,
26consumption, importation, use, storage, transportation and
27delivery of liquor, alcohol and malt or brewed beverages in
28accordance with the provisions of this act, and to fix the
29wholesale price of liquor and alcohol for all licensees and 
30permit holders and retail prices at which liquors and alcohol

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

1rectified, compounded or bottled in any state, territory or
2country, the laws of which result in prohibiting the importation
3therein of alcohol or liquor, fermented, distilled, rectified,
4compounded or bottled in Pennsylvania. The board may not sell 
5private label products.

6(b.1) To establish the Safe Ride Home Grant Pilot Program.
7The following shall apply:

8(1) The board shall establish and administer the Safe Ride
9Home Grant Pilot Program, beginning in the 2014-2015 fiscal year
10and continuing through the 2016-2017 fiscal year to fund local
11initiatives aimed at providing alternative means of
12transportation to persons suspected of having a prohibited blood
13alcohol concentration as set forth in 75 Pa.C.S. § 3802
14(relating to driving under influence of alcohol or controlled
15substance) from any premises licensed by the board to sell
16alcoholic beverages to their places of residence. The board may
17work in collaboration with private organizations to implement
18the Safe Ride Home Grant Pilot Program and may award grants to
19any county, municipality, university or nonprofit corporation.

20(2) The liability of a provider that operates such local
21initiative to persons transported under the Safe Ride Home Grant
22Pilot Program is limited to the amounts required for a motor
23vehicle liability insurance policy under 75 Pa.C.S. Ch. 17
24(relating to financial responsibility).

25(3) The board shall monitor and evaluate the Safe Ride Home
26Grant Pilot Program and, upon the conclusion of the 2014-2015
27fiscal year, present a report of the evaluation to the Law and
28Justice Committee of the Senate and the Liquor Control Committee
29of the House of Representatives and make recommendations on the
30continuation, alteration or expansion of the Safe Ride Home

1Grant Pilot Program. The final report shall be made no later
2than December 1, 2017.

3* * *

<-4(l) After the completion of studies of the wine and spirits
5wholesale system by the Pennsylvania Legislative Budget and
6Finance Committee and the board, if the findings of either study
7determine that leasing of the wine and spirits wholesale system
8would not have a significant negative impact on the annual
9fiscal stability of the Commonwealth, the board may issue a
10request for proposal for the lease of the wholesale liquor
11business for a period not to exceed ten years. A proposal may be
12awarded by a unanimous vote of the board if it is determined by
13the board that the lease would result in an increase in annual
14gross profits to the Commonwealth.

15Section 1.2<- 1.3. Section 304 of the act, amended December 8,
162004 (P.L.1810, No.239), is amended to read:

17Section 304. When Sales May Be Made at Pennsylvania Liquor
18Stores.--(a) Except as provided for in subsection (b), every
19Pennsylvania Liquor Store shall be open for business week days,
20except holidays as that term is defined in section 102. The
21board may, with the approval of the Governor, temporarily close
22any store in any municipality.

23(b) [Certain] Pennsylvania Liquor Stores operated by the
24board [shall] may be open for Sunday retail sales [between the
25hours of noon and five o'clock postmeridian], except that no
26Sunday sales shall occur on Easter Sunday or Christmas day. [The
27board shall open up to twenty-five per centum of the total
28number of Pennsylvania Liquor Stores at its discretion for
29Sunday sales as provided for in this subsection. The board shall
30submit yearly reports to the Appropriations and the Law and

1Justice Committees of the Senate and the Appropriations and the
2Liquor Control Committees of the House of Representatives
3summarizing the total dollar value of sales under this section.]

4Section 2. Section 305(b) of the act, amended July 6, 2005
5(P.L.135, No.39), is amended and the section is amended by
6adding a subsection to read:

7Section 305. Sales by Pennsylvania Liquor Stores.--* * *

8(b) Every Pennsylvania Liquor Store shall sell liquors at
9wholesale to hotels, restaurants, clubs, and railroad, pullman
10and steamship companies licensed under this act; <-and to eating 
11places that hold an expanded permit as provided for in section 
12415, distributors and importing distributors who hold an 
13enhanced permit as provided for in section 416 and, under the
14regulations of the board, to pharmacists duly licensed and
15registered under the laws of the Commonwealth, and to
16manufacturing pharmacists, and to reputable hospitals approved
17by the board, or chemists. Sales to licensees shall be made at a
18price that includes a discount of ten per centum from the retail
19p<-rice and eighteen per centum for wine and spirits expanded and 
20enhanced permits as provided for in sections 415 and 416. The 
<-21price. Wine sales to licensees who hold a wine expanded permit 
22shall be made at a price that includes a discount of eighteen 
23per centum from the retail price, regardless of whether the 
24licensee offers the wine for consumption on or off the premises. 
25Special spirit sales to licensees who hold a special spirits 
26expanded permit shall be made at a price that includes a 
27discount of eighteen per centum from the retail price regardless 
28of whether the licensee offers the special spirits for 
29consumption on or off the premises. Sales to licensees who hold 
30a wine or spirits enhanced permit shall be made at a price that
 

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

20(b.1) The board may contract through the Commonwealth
21bidding process for delivery to licensees and permit holders, at
22the expense of the licensee or permit holder receiving the
23delivery. Payment shall be by credit card or electronic fund
24transfer only and may occur no later than the time of delivery.

25* * *

26Section 2.1. Section 401 of the act, amended December 22, 
272011 (P.L.530, No.113), is amended to read:

28Section 401. Authority to Issue Liquor Licenses to Hotels,
29Restaurants and Clubs.--(a) Subject to the provisions of this 
30act and regulations promulgated under this act, the board shall
 

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

1apply if the proposed premises are located outside the 
2jurisdiction of the individual in question.

3(b) The board may issue to any club which caters to groups
4of non-members, either privately or for functions, a catering
5license, and the board shall, by its rules and regulations,
6define what constitutes catering under this subsection except
7that any club which is issued a catering license shall not be
8prohibited from catering on Sundays during the hours which the
9club may lawfully serve liquor, malt or brewed beverages.

10Section 2.2. Section 402 of the act is amended by adding a
11subsection to read:

12Section 402. License Districts; License Period; Hearings.--*
13* *

14(d) This section shall not apply to an expanded or enhanced
15permit holder under sections 415 and 416.

<-16Section 2.3. The act is amended by adding a section to read:

17Section 403.1. Food Market Restaurant License.--(a) The
18board is authorized to issue a restaurant liquor license to a
19food market that is not within a radius three quarters of a mile
20of a distributor or importing distributor and if the board
21determines there is not sufficient availability and
22accessibility of malt or brewed beverages through the private
23market. The three-quarters-of-a-mile radius restriction shall
24not apply to a food market if all distributors or importing
25distributors within a radius of three quarters of a mile do not
26obtain an enhanced wine or spirits permit within six months of
27the effective date of this section. The licensing period shall
28be as established under section 402. The application and
29issuance of the license is subject to sections 403 and 404
30insofar as provisions of those sections are not contrary to the

1provisions of this section. The application, renewal and filing
2fee shall be as prescribed in section 614-A(1) of the act of 
3April 9, 1929 (P.L.177, No.175), known as "The Administrative 
4Code of 1929."

5(b) Licenses issued under this section are subject to the
6quota restrictions contained under section 461.

7(c) Licenses issued under this section are restaurant liquor
8licenses for all purposes, except as provided herein. The
9following additional restrictions and privileges apply:

10(1) A license issued under this section shall license the
11premises of a food market located under one roof.

12(2) Malt or brewed beverages, or wine sold pursuant to an
13authorized expanded permit, sold within a licensed food market
14shall be placed under the roof of a licensed premises, in a
15specifically designated area on the inside perimeter and not in
16the aisle of the premises, as approved by the board.

17(3) Notwithstanding any other provisions of law, malt or
18brewed beverages or wine sold pursuant to an authorized expanded
19permit, sold within a food market shall not be available for
20consumption on the licensed premises.

21(4) Licenses issued under this section shall not be required
22to meet the requirements defining a restaurant contained in
23section 102.

24(d) Licenses issued under this section are subject to
25section 493(13).

26Section 2.4. Section 404 of the act, amended January 6, 2006
27(P.L.1, No.1), is amended to read:

28Section 404. Issuance, Transfer or Extension of Hotel,
29Restaurant and Club Liquor Licenses.--Upon receipt of the
30application and the proper fees, and upon being satisfied of the

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

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

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

14Section 2.3<- 2.5. Section 406(a) of the act is amended by
15adding paragraphs to read:

16Section 406. Sales by Liquor Licensees; Restrictions.--(a)
17* * *

18(7) Notwithstanding any other provision of law, if Groundhog
19Day falls on a Sunday, a hotel or restaurant licensee or the
20hotel or restaurant licensee's servants, agents or employes may
21sell liquor and malt or brewed beverages on any such day after
22seven o'clock antemeridian and until two o'clock antemeridian of
23the following day.

24(8) (i) Notwithstanding any provision of this act, the 
25practice by a bed and breakfast homestead or inn of providing 
26one bottle of wine to its paying guests at check-in while in an 
27overnight status shall not be construed as the direct or 
28indirect sale of alcohol so long as that wine is produced by a 
29licensed limited winery as provided for under section 505.2.

30(ii) For purposes of this paragraph, a "bed and breakfast

1homestead or inn" shall mean a private residence that contains
2ten or fewer bedrooms used for providing overnight
3accommodations to the public and in which breakfast is the only
4meal served and is included in the charge for the room.

5Section 3. Sections<- Section 407(a) of the act, amended June
628, 2011 (P.L.55, No.11), is amended to read:

7Section 407. Sale of Malt or Brewed Beverages by Liquor
8Licensees.--(a) Every liquor license issued to a hotel,
9restaurant, club, or a railroad, pullman or steamship company
10under this subdivision (A) for the sale of liquor shall
11authorize the licensee to sell malt or brewed beverages at the
12same places but subject to the same restrictions and penalties
13as apply to sales of liquor, except that licensees other than
14clubs may sell malt or brewed beverages for consumption off the
15premises where sold in quantities [of not more than one hundred
16ninety-two fluid ounces in a single sale to one person.] of up 
17to <-four six-packs or up to two twelve-packs three six-packs or 
18up to one twelve-pack and one six-pack in a single transaction. 
19A licensee may not sell malt or brewed beverages for off-
20premises consumption at less than the malt or brewed beverage's 
21acquisition cost. The sales may be made in either open or closed 
22containers, Provided, however, That a municipality may adopt an 
23ordinance restricting open containers in public places. No
24licensee under this subdivision (A) shall at the same time be
25the holder of any other class of license, except a retail
26dispenser's license authorizing the sale of malt or brewed
27beverages only.

28* * *

29Section 4. Sections 410 and 411 of the act are amended by
30adding subsections to read:

1Section 410. Liquor Importers' Licenses; Fees; Privileges;
2Restrictions.--* * *

3(g) The holder of an importers' license or the holder of a
4vendor's permit under section 208 may deliver liquor purchased
5from the board to a licensee as follows:

6(1) The liquor may be stored at the licensed importer's or
7vendor's place of business or its authorized place of storage.

8(2) The licensee must place a purchase order with the board
9and the order must be paid in full prior to delivery.

10(3) The holder of an importer's license or vendor's permit
11may charge a fee for delivery.

12(h) The board may release liquor to the holder of an
13importer's license or the holder of a vendor's permit for
14delivery to a licensee as follows:

15(1) The licensee must place a purchase order with the board
16and the order must be paid in full prior to delivery.

17(2) The holder of an importer's license or vendor's permit
18may charge a fee for delivery.

19Section 411. Interlocking Business Prohibited.--* * *

20(f) The following shall apply:

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

1agents or employes directly or by or to a trade organization
2consisting, in whole or part, of a group of licensees.

3(2) The manufacturer, licensee and trade organization
4associated with the person providing the money or other things
5of value must keep a record of the value of the money or other
6things of value provided, the date provided and the entity to
7whom it was provided, as part of the records required under
8section 493(12) of this act.

9(3) The manufacturer, licensee and trade organization 
10associated with the person receiving money or other things of 
11value must keep a record of the value of the money or other 
12things of value used, as part of the records required under 
13section 493(12) of this act.

14Section 5. The act is amended by adding sections to read:

15Section 415. Expanded Permits.--(a) (1) Notwithstanding
16section 492(13) and (14), the board may issue an expanded permit
17to a person holding and possessing a valid restaurant liquor
18license, eating place license or hotel license.<-: Provided, That
19a restaurant liquor licensee who obtained a license through
20section 403.1 shall file a written application with the board
21for a wine expanded permit and the board shall approve the
22application if it determines there is not sufficient
23availability and accessibility of wine through the private
24retail market.

25(2) Nothing in this section shall affect the ability of an
26existing licensee to operate within the scope of its current
27license as authorized by this act, except that:

28(i) The following shall apply:

29(A) No sales of wine and <-special spirits for off-premises
30consumption may take place by an expanded permit holder after

1eleven o'clock postmeridian of any day until eight o'clock
2antemeridian of the next day, including Sundays if the licensee
3has a permit authorized under sections 406(a)(3) and 432(f).

4(B) A permit holder may only sell wine and <-special spirits
5for off-premises consumption during the time during which the
6permit holder is serving alcohol for consumption on premises.

7(ii) The holder of an eating place license who also holds a
8wine expanded permit may also sell wine by the glass for
9on-premises consumption.

10(iii) No expanded permit may be issued to a license holder
11whose underlying license is subject to a pending objection by
12the Director of the Bureau of Licensing or the board under
13section 470(a.1), until the matter is ultimately decided.
14Notwithstanding any other provision of law, a holder of an
15expanded permit may continue to operate under the permit if its
16underlying license is objected by the Director of the Bureau of
17Licensing or the board under section 470(a.1), until the matter
18is ultimately decided.

19(3) If the board has approved the operation of another
20business which has an inside passage or communication to or with
21the licensed premises, the sale and purchase of wine and spirits
22shall be confined strictly to the premises, in a specifically
23designated area covered by the license. The purchase of a good
24obtained from the unlicensed area of the premises shall be
25permitted in the licensed area.

26(4) An expanded permit holder must be in compliance with the
27responsible alcohol management provisions under section 471.1.

28(5) Expanded permit holders may store alcohol in a
29noncontiguous area that is not accessible to the public and is:

30(i) Locked at all times when not being accessed by

1licensees' employes.

2(ii) Not accessible to employes under the age of eighteen.

3(iii) Identified by dimensions and locations on forms
4submitted to the board.

5(6) An expanded permit holder may not sell private label
6products.

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

18(b) The application and renewal fee for an expanded permit
19shall be as follows:

<-20(1) For a wine and spirits expanded permit, a fee of eight
21thousand dollars ($8,000).

22(2) For a wine expanded permit, a fee of four thousand
23dollars ($4,000).

24(3) For a spirits expanded permit, a fee of four thousand
25dollars ($4,000).

26(4) For a special spirits expanded permit, a fee of two
27thousand dollars ($2,000).

<-28(1) For a wine expanded permit:

29(i) Two thousand dollars ($2,000) for licensees whose total
30annual alcohol purchase from the board is less than one hundred

1thousand dollars ($100,000) in the prior calendar year.

2(ii) Four thousand dollars ($4,000) for licensees whose
3total annual alcohol purchase from the board is between one
4hundred thousand and one dollar ($100,001) and two hundred
5thousand dollars ($200,000) in the prior calendar year.

6(iii) Six thousand dollars ($6,000) for licensees whose
7total annual purchase from the board is greater than two hundred
8thousand and one dollar ($200,001) in the prior calendar year.

9(2) For a special spirits expanded permit, a fee of two
10thousand dollars ($2,000).

11(b.1) The board may accept installment payments from the
12permit holder for payment of the application and renewal fees
13and charge an installment payment fee.

14(c) Bottles may be sold for off-premises consumption in the
15following manner:

<-16(1) A restaurant or hotel licensee holding one of the
17following expanded permits may sell the following quantities in
18a single transaction:

19(i) A wine and spirits expanded permit, up to four bottles
20of wine or up to two bottles of spirits, in seven hundred fifty
21milliliter to one liter bottles or up to two bottles of wine or
22one bottle of spirits in one and five-tenths liter to one and
23three-quarter liter bottles.

24(ii) A wine expanded permit

<-25(1) A wine expanded permit holder may sell in a single
26transaction up to four bottles of wine in seven hundred fifty
27milliliter to one liter bottles or up to two bottles of wine in
28one and five-tenths liter to one and three-quarter liter
29bottles.

<-30(iii) A spirits expanded permit, up to two bottles of

1spirits in seven hundred fifty milliliter to one liter bottles
2or one bottle of spirits in one and five-tenths liter to one and
3three-quarter liter bottle.

4(iv) <-(2) A specialty spirits expanded permit, holder may
5sell in a single transaction up to two bottles of spirits in
6seven hundred fifty milliliter to one liter bottles or up to one
7bottle of spirits in one and five-tenths liter to one and three-
8quarter liter bottle.

9(2)<- (3) An eating place licensee holding an expanded wine
10permit may sell up to four bottles of wine in seven hundred
11fifty milliliter to one liter bottles or up to two bottles of
12wine in one and five-tenths liter to one and three-quarter liter
13bottles.

14(d) A specialty spirits expanded permit holder may only sell
15one of the following types of spirits, as defined in 27 CFR §§ 
165.22 (relating to the standards of identity) or 5.35 (relating 
17to class and type), or successor regulations:

18(1) Gin.

19(2) Rum.

20(3) Tequila.

21(4) Vodka.

22(5) Whiskey.

23(6) Brandy.

24(7) Cognac or cordials.

25(e) Upon the condition of granting an expanded permit:

26(1) The board shall require an applicant to file a written
27application with the board in the manner determined by the
28board. The application shall include a description or plan of
29the part of the premises where the storage and sales of wine and
30spirits for retail are proposed.

1(2) (Reserved).

2(f) The board may not grant an expanded permit to any
3licensee or a licensee's officers, directors or shareholders who
4have been convicted in any jurisdiction of a felony liquor
5offense. The board may not issue an expanded license to a person
6who has, through an attorney of record, pled or agreed to plead
7guilty, either as an individual or as an officer of a
8corporation, to a criminal charge filed against them in this
9Commonwealth involving illegal controlling interest in licenses
10authorized under this act, notwithstanding if the record of the
11plea agreement has been expunged.

12(g) A wine or <-special spirits expanded permit holder may not
13sell a liquor product for off-premises consumption at a price
14less than the liquor product's acquisition cost.

15(h) (Reserved).

16(i) For the purposes of this section, the following terms
17shall have the meaning given to them in this subsection:

18"Expanded permit" shall mean any of the following:

19(1) A wine and spirits permit.

20(2) A wine permit.

21(3) A spirits permit.

22(4) A special spirits permit.

23Section 416. Enhanced Distributor and Importing Distributor
24Permits.--(a) (1)  Notwithstanding section 492(12), (13) and
25(14), the board may issue an enhanced permit to a person holding
26and possessing a valid distributor license or importing
27distributor license. Nothing in this section shall affect the
28ability of an existing licensee to operate within the scope of
29its current license as authorized by this act.

30(2) If the board has approved the operation of another

1business which has an inside passage or communication to or with
2the licensed premises, the sale and purchase of wine and spirits
3shall be confined strictly to the premises, in a specifically
4designated area covered by the license. The purchase of a good
5obtained from the unlicensed area of the premises shall be
6permitted in the licensed area.

7(3) Licensees must be in compliance with the responsible
8alcohol management provisions under section 471.1.

9(4) The application and fee for an enhanced permit shall be
10as follows:

11(i) For a wine and spirits enhanced permit, a fee of<- eight
12thousand dollars ($8,000).<-:

13(A) Four thousand dollars ($4,000) for licensees whose total
14annual alcohol purchase from the board is less than two hundred
15thousand dollars ($200,000) in the prior calendar year.

16(B)  Eight thousand dollars ($8,000) for licensees whose
17total annual alcohol purchase from the board is between two
18hundred thousand and one dollar ($200,001) and four hundred
19thousand dollars ($400,000) in the prior calendar year.

20(C)  Twelve thousand dollars ($12,000) for licensees whose
21total annual purchase from the board is greater than four
22hundred thousand and one dollar ($400,001) in the prior calendar
23year.

24(ii) For a wine enhanced permit, a fee of <-four thousand
25dollars ($4,000).<-:

26(A) Two thousand dollars ($2,000) for licensees whose total
27annual alcohol purchase from the board is less than one hundred
28thousand dollars ($100,000) in the prior calendar year.

29(B) Four thousand dollars ($4,000) for licensees whose total
30annual alcohol purchase from the board is between one hundred

1thousand and one dollar ($100,001) and two hundred thousand
2dollars ($200,000) in the prior calendar year.

3(C) Six thousand dollars ($6,000) for licensees whose total
4annual purchase from the board is greater than two hundred
5thousand and one dollar ($200,001) in the prior calendar year.

6(iii) For a spirits enhanced permit, a fee of <-four thousand
7dollars ($4,000).<-:

8(A) Two thousand dollars ($2,000) for licensees whose total
9annual alcohol purchase from the board is less than one hundred
10thousand dollars ($100,000) in the prior calendar year.

11(B) Four thousand dollars ($4,000) for licensees whose total
12annual alcohol purchase from the board is between one hundred
13thousand and one dollar ($100,001) and two hundred thousand
14dollars ($200,000) in the prior calendar year.

15(C) Six thousand dollars ($6,000) for licensees whose total
16annual purchase from the board is greater than two hundred
17thousand and one dollar ($200,001) in the prior calendar year.

18(iv) For a special spirits enhanced permit, a fee of two
19thousand dollars ($2,000).

20(4.1) The board may accept installment payments for payment
21of the application and renewal fee from the permit holder and
22charge an installment payment fee.

23(5)  A beer distributor or importing distributor holding one
24of the following enhanced permits may sell the following
25quantities:

26(i)  A wine and spirits enhanced permit, any quantity in any
27size.

28(ii)  A wine enhanced permit, any quantity in any size.

29(iii)  A spirits enhanced permit, any quantity in any size.

30(iv)  A specialty spirits enhanced permit, any quantity in

1any size.

2(6) A specialty spirits enhanced permit holder may only sell
3one of the following types of spirits as defined in 27 CFR §
45.22 (relating to the standards of identity) or 5.35 (relating
5to class and type) or successor regulations:

6(i) Gin.

7(ii)  Rum.

8(iii)  Tequila.

9(iv)  Vodka.

10(v)  Whiskey.

11(vi)  Brandy.

12(vii) Cognac or cordials.

13(6.1) Notwithstanding any other provision of this act, an
14enhanced permit holder may sell malt and brewed beverages in a
15single bottle size of .750<- 750 milliliters or greater.

16(7)  Upon the condition of granting an expanded permit, the
17board shall require an applicant to file a written application
18with the board in the manner determined by the board.

19(8)  The board may not grant an enhanced permit to any
20licensee or a licensee's officers, directors or shareholders
21who:

22(i)  (Reserved); or

23(ii)  have been convicted in any jurisdiction of a felony 
24liquor offense. The board may not issue an enhanced permit to a 
25person who has, through an attorney of record, pled or agreed to 
26plead guilty, either as an individual or as an officer of a 
27corporation, to a criminal charge filed against him in this 
28Commonwealth involving illegal controlling interest in licenses 
29authorized under this act, notwithstanding if the record of the 
30plea agreement has been expunged.

1(9)  A wine or spirits permit holder may not sell a liquor
2product or malt and brewed beverages at a price less than the
3liquor product's or malt and brewed beverage's acquisition cost.

4(10) (Reserved).<- An enhanced permit holder shall utilize a
5transaction scan device to verify the age of an individual who
6appears to be less than thirty-five years of age before making a
7sale of liquor. An expanded permit holder may not sell or share
8data from the use of a transaction scan device provided that the
9licensee may use the data to show the enforcement bureau of the
10board that the licensee is in compliance with this act. As used
11in this paragraph, the term "transaction scan device" means a
12device capable of deciphering, in an electronically readable
13format, the information encoded on the magnetic strip or bar
14code of an identification card under section 495(a).

15(11) An enhanced permit may not be issued to a license
16holder whose underlying license is subject to a pending
17objection by the Director of the Bureau of Licensing or the
18board under section 470(a.1), until the matter is ultimately
19decided. Notwithstanding any other provision of law, a holder of
20an enhanced permit may continue to use that permit if its
21underlying license is objected by the Director of the Bureau of
22Licensing or the board under section 470(a.1), until the matter
23is ultimately decided.

24(12) Sales of wine and spirits for off-premises consumption
25may not take place by an enhanced permit holder after eleven
26o'clock postmeridian on any day until eight o'clock antemeridian
27of the next day, including Sundays, if the licensee has a permit
28authorized under section 492.1(c).

29(13) For the purposes of this section, the following terms
30shall have the meaning given to them in this paragraph:

1"Enhanced permit" shall mean any of the following:

2(i)  A wine and spirits enhanced permit.

3(ii)  A wine enhanced permit.

4(iii)  A spirits enhanced permit.

5(iv)  A special spirits enhanced permit.

6Section 6. Section 431(b) of the act, amended December 8,
72004 (P.L.1810, No.239), is amended to read:

8Section 431. Malt and Brewed Beverages Manufacturers',
9Distributors' and Importing Distributors' Licenses.--* * *

10(b) The board shall issue to any reputable person who
11applies therefor, and pays the license fee hereinafter
12prescribed, a distributor's or importing distributor's license
13for the place which such person desires to maintain for the sale
14of malt or brewed beverages, not for consumption on the premises
15where sold, and in quantities of not less than [a case or
16original containers containing one hundred twenty-eight ounces
17or more which may be sold separately] a six-pack as prepared for
18the market by the manufacturer at the place of manufacture[.] or 
19a growler. A distributor or importing distributor may not sell a 
20malt or brewed beverage at a price less than the malt or brewed 
21beverage's acquisition cost. The board shall have the discretion
22to refuse a license to any person or to any corporation,
23partnership or association if such person, or any officer or
24director of such corporation, or any member or partner of such
25partnership or association shall have been convicted or found
26guilty of a felony within a period of five years immediately
27preceding the date of application for the said license: And
28provided further, That, in the case of any new license or the
29transfer of any license to a new location, the board may, in its
30discretion, grant or refuse such new license or transfer if such

1place proposed to be licensed is within three hundred feet of
2any church, hospital, charitable institution, school or public
3playground, or if such new license or transfer is applied for a
4place which is within two hundred feet of any other premises
5which is licensed by the board: And provided further, That the
6board shall refuse any application for a new license or the
7transfer of any license to a new location if, in the board's
8opinion, such new license or transfer 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
11proposed to be licensed. [<-The board shall refuse any application
12for a new license or the transfer of any license to a location
13where the sale of liquid fuels or oil is conducted.]<- The board
14may enter into an agreement with the applicant concerning
15additional restrictions on the license in question. If the board
16and the applicant enter into such an agreement, such agreement
17shall be binding on the applicant. Failure by the applicant to
18adhere to the agreement will be sufficient cause to form the
19basis for a citation under section 471 and for the nonrenewal of
20the license under section 470. If the board enters into an
21agreement with an applicant concerning additional restrictions,
22those restrictions shall be binding on subsequent holders of the
23license until the license is transferred to a new location or
24until the board enters into a subsequent agreement removing
25those restrictions. If the application in question involves a
26location previously licensed by the board, then any restrictions
27imposed by the board on the previous license at that location
28shall be binding on the applicant unless the board enters into a
29new agreement rescinding those restrictions. The board shall
30require notice to be posted on the property or premises upon

1which the licensee or proposed licensee will engage in sales of
2malt or brewed beverages. This notice shall be similar to the
3notice required of hotel, restaurant and club liquor licensees.

4Except as hereinafter provided, such license shall authorize
5the holder thereof to sell or deliver malt or brewed beverages
6in quantities above specified anywhere within the Commonwealth
7of Pennsylvania, which, in the case of distributors, have been
8purchased only from persons licensed under this act as
9manufacturers or importing distributors, and in the case of
10importing distributors, have been purchased from manufacturers
11or persons outside this Commonwealth engaged in the legal sale
12of malt or brewed beverages or from manufacturers or importing
13distributors licensed under this article. In the case of an
14importing distributor, the holder of such a license shall be
15authorized to store and repackage malt or brewed beverages owned
16by a manufacturer at a segregated portion of a warehouse or
17other storage facility authorized by section 441(d) and operated
18by the importing distributor within its appointed territory and
19deliver such beverages to another importing distributor who has
20been granted distribution rights by the manufacturer as provided
21herein. The importing distributor shall be permitted to receive
22a fee from the manufacturer for any related storage, repackaging
23or delivery services. In the case of a bailee for hire hired by
24a manufacturer, the holder of such a permit shall be authorized:
25to receive, store and repackage malt or brewed beverages
26produced by that manufacturer for sale by that manufacturer to
27importing distributors to whom that manufacturer has given
28distribution rights pursuant to this subsection or to purchasers
29outside this Commonwealth for delivery outside this
30Commonwealth; or to ship to that manufacturer's storage

1facilities outside this Commonwealth. The bailee for hire shall
2be permitted to receive a fee from the manufacturer for any
3related storage, repackaging or delivery services. The bailee
4for hire shall, as required in Article V of this act, keep
5complete and accurate records of all transactions, inventory,
6receipts and shipments and make all records and the licensed
7areas available for inspection by the board and for the
8Pennsylvania State Police, Bureau of Liquor Control Enforcement,
9during normal business hours.

10Each out of State manufacturer of malt or brewed beverages
11whose products are sold and delivered in this Commonwealth shall
12give distributing rights for such products in designated
13geographical areas to specific importing distributors, and such
14importing distributor shall not sell or deliver malt or brewed
15beverages manufactured by the out of State manufacturer to any
16person issued a license under the provisions of this act whose
17licensed premises are not located within the geographical area
18for which he has been given distributing rights by such
19manufacturer. Should a licensee accept the delivery of such malt
20or brewed beverages in violation of this section, said licensee
21shall be subject to a suspension of his license for at least
22thirty days: Provided, That the importing distributor holding
23such distributing rights for such product shall not sell or
24deliver the same to another importing distributor without first
25having entered into a written agreement with the said secondary
26importing distributor setting forth the terms and conditions
27under which such products are to be resold within the territory
28granted to the primary importing distributor by the
29manufacturer.

30When a Pennsylvania manufacturer of malt or brewed beverages

1licensed under this article names or constitutes a distributor
2or importing distributor as the primary or original supplier of
3his product, he shall also designate the specific geographical
4area for which the said distributor or importing distributor is
5given distributing rights, and such distributor or importing
6distributor shall not sell or deliver the products of such
7manufacturer to any person issued a license under the provisions
8of this act whose licensed premises are not located within the 
9geographical area for which distributing rights have been given 
10to the distributor and importing distributor by the said 
11manufacturer: Provided, That the importing distributor holding 
12such distributing rights for such product shall not sell or 
13deliver the same to another importing distributor without first 
14having entered into a written agreement with the said secondary 
15importing distributor setting forth the terms and conditions 
16under which such products are to be resold within the territory 
17granted to the primary importing distributor by the 
18manufacturer. Nothing herein contained shall be construed to 
19prevent any manufacturer from authorizing the importing 
20distributor holding the distributing rights for a designated 
21geographical area from selling the products of such manufacturer 
22to another importing distributor also holding distributing 
23rights from the same manufacturer for another geographical area, 
24providing such authority be contained in writing and a copy 
25thereof be given to each of the importing distributors so 
26affected.

27* * *

<-28Section 6.1. Section 432(d) of the act, amended January 6,
292006 (P.L.1, No.1), is amended to read:

30Section 432. Malt and Brewed Beverages Retail Licenses.--

1* * *

2(d) The board shall, in its discretion, grant or refuse any
3new license, the transfer of any license to a new location or
4the extension of an existing license to cover an additional area
5if such place proposed to be licensed is within three hundred
6feet of any church, hospital, charitable institution, school, or
7public playground, or if such new license, transfer or extension
8is applied for a place which is within two hundred feet of any
9other premises which is licensed by the board. The board shall
10refuse any application for a new license, the transfer of any
11license to a new location or the extension of an existing
12license to cover an additional area if, in the board's opinion,
13such new license, transfer or extension would be detrimental to
14the welfare, health, peace and morals of the inhabitants of the
15neighborhood within a radius of five hundred feet of the place
16to be licensed. The board may enter into an agreement with the
17applicant concerning additional restrictions on the license in
18question. If the board and the applicant enter into such an
19agreement, such agreement shall be binding on the applicant.
20Failure by the applicant to adhere to the agreement will be
21sufficient cause to form the basis for a citation under section
22471 and for the nonrenewal of the license under section 470. If
23the board enters into an agreement with an applicant concerning
24additional restrictions, those restrictions shall be binding on
25subsequent holders of the license until the license is
26transferred to a new location or until the board enters into a
27subsequent agreement removing those restrictions. If the
28application in question involves a location previously licensed
29by the board, then any restrictions imposed by the board on the
30previous license at that location shall be binding on the

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

27* * *

28Section 7. Section 438(a) of the act is amended to read:

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

1maintain, operate or conduct any number of places for the sale
2of malt [or], brewed beverages[,] or wine, but a separate
3license must be secured for each place where malt [or], brewed
4beverages or wine as provided under section 415 are sold.

5* * *

6Section 8. Section 441(a), (b) and (f) of the act, amended
7or added May 31, 1996 (P.L.312, No.49), June 18, 1998 (P.L.664,
8No.86) and December 9, 2002 (P.L.1653, No.212), are amended to
9read:

10Section 441. Distributors' and Importing Distributors'
11Restrictions on Sales, Storage, Etc.--(a) No distributor or
12importing distributor shall purchase, receive or resell any malt
13or brewed beverages except:

14(1) in the original containers as prepared for the market by
15the manufacturer at the place of manufacture[;], except that a 
16distributor or importing distributor may break the bulk of a 
17case and sell a unit of that case in quantities of not less than 
18a six-pack;

19(2) in the case of identical containers repackaged in the
20manner described by subsection (f); [or]

21(3) as provided in section 431(b)[.]; or

22(4) growlers filled with malt and brewed beverages.

23(b) No distributor or importing distributor shall sell any
24malt or brewed beverages in quantities of less than a [case or
25original containers containing one hundred twenty-eight ounces
26or more which may be sold separately] six-pack or a growler:
27Provided, That no malt or brewed beverages sold or delivered
28shall be consumed upon the premises of the distributor or
29importing distributor, or in any place provided for such purpose
30by such distributor or importing distributor. Notwithstanding

1any other provision of this section or act, malt or brewed
2beverages which are part of a tasting conducted pursuant to the
3board's regulations may be consumed on licensed premises.

4* * *

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

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

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

17* * *

18Section 9. Section 442(a)(1) of the act, amended June 28,
192011 (P.L.55, No.11), is amended to read:

20Section 442. Retail Dispensers' Restrictions on Purchases
21and Sales.--(a) (1) No retail dispenser shall purchase or
22receive any malt or brewed beverages except in original
23containers as prepared for the market by the manufacturer at the
24place of manufacture. The retail dispenser may thereafter break
25the bulk upon the licensed premises and sell or dispense the
26same for consumption on or off the premises so licensed. No
27retail dispenser may sell malt or brewed beverages for
28consumption off the premises in quantities in excess of [one
29hundred ninety-two fluid ounces] up to <-four six-packs and up to 
30two twelve-packs <-three six-packs or up to one twelve-pack and
 

1one six-pack in a single transaction. Sales may be made in open 
2or closed containers, Provided, however, That a municipality may 
3adopt an ordinance restricting open containers in public places. 
4No club licensee may sell any malt or brewed beverages for
5consumption off the premises where sold or to persons not
6members of the club. A licensee may not sell malt or brewed 
7beverages for consumption off the premises at less than its 
8acquisition cost.

9* * *

10Section 10. Section 443 of the act is amended by adding a
11subsection to read:

12Section 443. Interlocking Business Prohibited.--* * *

13(h) The following shall apply:

14(1) Notwithstanding any other provision of law to the
15contrary, a manufacturer or licensee and its officers,
16directors, shareholders, servants, agents or employes may
17contribute, and a manufacturer or licensee and its officers,
18directors, shareholders, servants, agents or employes may accept
19money or other things of value solely for the administration of
20a responsible alcohol management training program for alcohol
21service personnel as provided for under this section. The money
22or other things of value may be provided by or to a manufacturer
23or licensee and its officers, directors, shareholders, servants,
24agents or employes directly or by or to a trade organization
25consisting, in whole or part, of a group of licensees.

26(2) The manufacturer, licensee and trade organization
27associated with the person providing the money or other things
28of value must keep a record of the value of the money or other
29things of value provided, the date provided and the entity to
30whom it was provided, as part of the records required under

1section 493(12) of this act.

2(3) The manufacturer, licensee and trade organization 
3associated with the person receiving money or other things of 
4value must keep a record of the value of the money or other 
5things of value used, as part of the records required under 
6section 493(12) of this act.

7Section 11. Section 446(a)(2) and (b) introductory paragraph
8of the act, amended December 22, 2011 (P.L.530, No.113) and July 
95, 2012 (P.L.1007, No.116), are amended <-and the section is
10amended by adding subsections to read:

11Section 446. Breweries.--(a) Holders of a brewery license
12may:

13* * *

14(2) Operate a restaurant or brewery pub on the licensed
15premises under such conditions and regulations as the board may
16enforce: Provided, however, That sales on Sunday may be made
17irrespective of the volume of food sales if the licensed
18premises are at a public venue location. The holder of a brewery
19license may sell at its brewery pub premises [Pennsylvania wines
20it has purchased from either the holder of a Pennsylvania
21limited winery license or from the board] wines produced by the 
22holder of a limited winery license or liquor produced by a 
23licensed limited distillery: Provided, however, That said wines
24and liquor must be consumed at the licensed brewery pub
25premises.

26* * *

27(b) The holder of a brew pub license may obtain an off-
28premises catering permit subject to section 493(33) to hold a 
29catered function off the licensed premises and on otherwise 
30unlicensed premises where the licensee may sell wine produced by
 

1a licensed limited winery, liquor produced by a licensed limited 
2distillery and malt or brewed beverages produced by the brewery 
3by the glass, open bottle or other container together with food, 
4and in any mixture, for consumption on those premises. Functions 
5conducted under the authority of the permit shall be subject to 
6the following:

<-7(c) (1) The holder of a brewery license may, at the
8discretion of the board, obtain a farmers market permit. The
9permit shall entitle the holder to participate in more than one
10farmers market at any given time and an unlimited number
11throughout the year and sell malt or brewed beverages produced
12under the authority of the underlying brewery license by the
13bottle or in a package not to exceed one hundred forty-four
14ounces. Samples not to exceed four fluid ounces per brand of
15malt or brewed beverages may be offered free of charge. A
16farmers market permit shall be issued upon proper application
17and payment of an annual fee of two hundred fifty dollars
18($250). A permit holder may participate in more than one farmers
19market at any given time. Sales by permit holders shall take
20place during the standard hours of operation of the farmers
21market. Written notice of the date, times and location the
22permit is to be used shall be provided by the permit holder to
23the enforcement bureau at least two weeks prior to the event.
24Except as provided in this subsection, breweries utilizing
25farmers market permits shall be governed by all applicable
26provisions of this act as well as by all applicable regulations
27adopted by the board.

28(2) The term "farmers market" as used in this subsection
29shall include any building, structure or other place:

30(i) owned, leased or otherwise in the possession of a

1person, municipal corporation or public or private organization;

2(ii) used or intended to be used by two or more farmers or
3an association of farmers, who are certified by the Department
4of Agriculture to participate in the Farmers Market Nutrition
5Program subject to 7 CFR Pt. 249 (relating to Senior Farmers'
6Market Nutrition Program (SFMNP)), for the purpose of selling
7agricultural commodities produced in this Commonwealth directly
8to consumers;

9(iii) which is physically located within this Commonwealth;
10and

11(iv) which is not open for business more than twelve hours
12each day.

13(3) The permit, as authorized by this subsection, is only
14available to breweries who produce less than one hundred
15thousand barrels per year. All brands of malt or brewed
16beverages sold or provided under the farmers market permit must
17be registered as set forth by this act.

18(d) The holder of a brewery license may also sell wines
19produced by a licensed limited winery or distilled liquor
20produced by a licensed limited distillery.

21* * *

22Section 12. Section 461(b.1)(4), (7) and (8), (b.2) and (d)
23of the act, amended February 21, 2002 (P.L.103, No.10), November 
2429, 2006 (P.L.1421, No.155) and June 28, 2011 (P.L.55, No.11),
25are amended to read:

26Section 461. Limiting Number of Retail Licenses To Be Issued
27In Each County.--* * *

28(b.1) The board may issue restaurant and eating place retail
29dispenser licenses and renew licenses issued under this
30subsection without regard to the quota restrictions set forth in

1subsection (a) for the purpose of economic development in a
2municipality under the following conditions:

3* * *

4(4) An applicant under this subsection shall be required to
5sell food and nonalcoholic beverages equal to [seventy per
6centum (70%)] fifty per centum (50%) or more of its combined
7gross sales of food and alcoholic beverages.

8* * *

9(7) An appeal of the board's decision refusing to grant or
10renew a license under this subsection shall not act as a
11supersedeas of the decision of the board if the decision is
12based, in whole or in part, on the licensee's failure to
13demonstrate that its food and nonalcoholic beverages were at
14least [seventy per centum (70%)] fifty per centum (50%) of its
15combined gross sales of food and alcoholic beverages.

16(8) A license issued under this subsection may not be
17validated or renewed unless the licensee can establish that its
18sale of food and nonalcoholic beverages during the license year
19immediately preceding application for validation or renewal is
20equal to [seventy per centum (70%)] fifty per centum (50%) or
21more of its food and alcoholic beverage sales.

22(b.2) Qualified applicants under subsection (b.1) shall
23receive a provisional license for one hundred twenty days,
24exclusive of periods of safekeeping. After ninety days from the
25date of issuance, the licensee may file an application for a
26permanent license. A license shall be issued if the licensee
27establishes that for ninety consecutive days from the date of
28initial issue its sales of food and nonalcoholic beverages is
29equal to at least [seventy per centum (70%)] fifty per centum 
30(50%) of its combined gross sales of food and alcoholic

1beverages. Licensees shall not be subject to citation by the
2Enforcement Bureau for a violation of the requirement that food
3and nonalcoholic beverages equal at least [seventy per centum
4(70%)] fifty per centum (50%) of the combined gross sales of
5food and alcoholic beverages during the provisional licensing
6period.

7* * *

8(d) "Airport restaurant," as used in this section, shall
9mean restaurant facilities at any airport for public
10accommodation, which are owned or operated directly or through
11lessees by the Commonwealth of Pennsylvania, by any municipal
12authority, county or city, either severally or jointly, with any
13other municipal authority, county or city, but shall not include
14any such restaurant facilities at any airport situated in a
15municipality where by vote of the electors the retail sale of
16liquor and malt or brewed beverages is not permitted. An airport
17restaurant is not subject to the seating requirements nor to the
18square footage requirements of the definition of restaurant in
19section 102. An airport restaurant may have unlimited extensions
20of service areas providing all extended service areas are inside
21the airport terminal building or buildings[, notwithstanding any
22intervening thoroughfares]. In addition to the privileges
23granted under sections 406 and 407 relative to malt or brewed
24beverages, airport restaurant liquor licensees may also sell
25[wine] alcohol by the glass, open bottle or other container for
26consumption [off the licensed premises and] within the airport
27terminal building. Notwithstanding any provision to the
28contrary, an airport restaurant licensee that has acquired a
29Sunday sales permit may commence sales at seven o'clock
30antemeridian.

1* * *

2Section 13. Section <-468(e) of the act, added 468(a) and (e) 
3of the act, amended or added December 20, 2000 (P.L.992, 
4No.141), February 21, 2002 (P.L.103, No.10), June 28, 2011 
5(P.L.55, No.11) and December 22, 2011 (P.L.530, No.113), are
6amended to read:

7Section 468. Licenses Not Assignable; <-Transfers.--* * *
8Transfers.--(a) (1) Licenses issued under this article may not 
9be assigned. The board, upon payment of the transfer filing fee, 
10is hereby authorized to transfer any license issued by it under 
11the provisions of this article from one person to another or 
12from one place to another, or both. Except for restaurant liquor 
13and eating place retail dispenser licenses transferred under 
14section 461(b.4), if the license is a retail license, the new 
15location must be within the same county as the existing location 
16or, if the municipality is located in more than one county, 
17within the same municipality as the existing location.

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

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

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

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

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

20* * *

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

29Section 14. Section 472(a) of the act, amended February 21,
302002 (P.L.103, No.10), is amended to read:

1Section 472. Local Option.--(a) In any municipality or any
2part of a municipality where such municipality is split so that
3each part thereof is separated by another municipality, an
4election may be held, subject to subsection (c), on the date of
5the primary election immediately preceding any municipal
6election, but not oftener than once in four years, to determine
7the will of the electors with respect to the granting of liquor
8licenses to hotels, restaurants, resort facilities and clubs,
9not oftener than once in four years, to determine the will of
10the electors with respect to the granting of liquor licenses to
11public venues, to performing arts facilities, to continuing care
12retirement communities, to hotels located on property owned by
13an accredited college or university, to privately-owned private
14golf courses or to privately-owned public golf courses, not
15oftener than once in four years, to determine the will of the
16electors with respect to the granting of licenses to retail
17dispensers of malt and brewed beverages, not oftener than once
18in four years, to determine the will of the electors with
19respect to granting of licenses to wholesale distributors and
20importing distributors, not more than once in two years, to
21determine the will of the electors with respect to the granting
22of club liquor licenses or club retail dispenser licenses to
23incorporated units of national veterans' organizations, not
24oftener than once in two years to determine the will of the
25electors with respect to the granting of special occasion
26permits to qualified organizations, [or] not more than once in
27four years, to determine the will of the electors with respect
28to the establishment, operation and maintenance by the board of
29Pennsylvania liquor stores, within the limits of such
30municipality or part of a split municipality, or not more than
 

1once in two years, to determine the will of the electors with 
2respect to the granting of liquor licenses to ski resort 
3facilities, under the provisions of this act: Provided, however,
4Where an election shall have been held at the primary preceding
5a municipal election in any year, another election may be held
6under the provisions of this act at the primary occurring the
7fourth year after such prior election: And provided further,
8That an election on the question of establishing and operating a
9State liquor store shall be initiated only in those
10municipalities, or that part of a split municipality that shall
11have voted against the granting of liquor licenses; and that an
12election on the question of granting wholesale distributor and
13importing distributor licenses shall be initiated only in those
14municipalities or parts of split municipalities that shall have
15at a previous election voted against the granting of dispenser's
16licenses. Whenever electors equal to at least twenty-five per
17centum of the highest vote cast for any office in the
18municipality or part of a split municipality at the last
19preceding general election shall file a petition with the county
20board of elections of the county for a referendum on the
21question of granting any of said classes of licenses or the
22establishment of Pennsylvania liquor stores, the said county
23board of elections shall cause a question to be placed on the
24ballots or on the voting machine board and submitted at the
25primary immediately preceding the municipal election. Separate
26petitions must be filed for each question to be voted on. Said
27proceedings shall be in the manner and subject to the provisions
28of the election laws which relate to the signing, filing and
29adjudication of nomination petitions, insofar as such provisions
30are applicable.

1When the question is in respect to the granting of liquor
2licenses, it shall be in the following form:

3Do you favor the granting of liquor licenses for the
4sale of liquor in.......................................
5of.....................................................?

Yes

No

6When the question is in respect to the granting of liquor
7licenses to resort facilities in those municipalities that do
8not already allow the retail sale of liquor, it shall be in the
9following form:

10Do you favor the granting of liquor licenses to resort
11facilities for the sale of liquor in the................
12of.....................................................?

Yes

No

13When the question is in respect to the granting of liquor
14licenses to ski resorts in those municipalities that do not
15already allow the retail sale of liquor, it shall be in the
16following form:

17Do you favor the granting of liquor licenses to ski
18resort facilities for the sale of liquor in the.........
19of.....................................................?

Yes

No

20When the question is in respect to the granting of restaurant
21liquor licenses for use at public venues in those municipalities
22that do not already allow the retail sale of liquor, it shall be
23in the following form:

24Do you favor the granting of liquor licenses to public
25venues for the sale of liquor in the....................
26of.....................................................?

Yes

No

27When the question is in respect to the granting of restaurant
28liquor licenses for use at performing arts facilities in those
29municipalities that do not already allow the retail sale of
30alcohol, it shall be in the following form:

1Do you favor the granting of liquor licenses to
2performing arts facilities for the sale of liquor in
3the.....................................................
4of.....................................................?

Yes

No

5When the question is in respect to the granting of liquor
6licenses for hotels located on property owned by an accredited
7college or university in those municipalities that do not
8already allow the granting of liquor licenses, it shall be in
9the following form:

10Do you favor the granting of liquor licenses to hotels
11on property owned by an accredited college or university
12in the..................................................
13of.....................................................?

Yes

No

14When the question is in respect to the granting of liquor
15licenses, for privately-owned private golf courses, it shall be
16in the following form:

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

20of.....................................................?

Yes

No

21When the question is in respect to the granting of liquor
22licenses, for privately-owned public golf courses, it shall be
23in the following form:

24Do you favor the granting of liquor licenses for
25privately-owned public golf courses for the sale of
26liquor in....................by.........................
27of.....................................................?

Yes

No

28When the question is in respect to the granting of liquor
29licenses to continuing care retirement communities in those
30municipalities that have not already approved the granting of

1liquor licenses, it shall be in the following form:

2Do you favor the granting of liquor licenses for
3continuing care retirement communities
4in...........................by.........................
5of.....................................................?

Yes

No

6When the question is in respect to the granting of licenses
7to retail dispensers of malt and brewed beverages, it shall be
8in the following form:

9Do you favor the granting of malt and brewed beverage

 

10retail dispenser licenses for consumption on premises
11where sold in the.......................................
12of.....................................................?

Yes

No

13When the question is in respect to the granting of licenses
14to wholesale distributors of malt or brewed beverages and
15importing distributors, it shall be in the following form:

16Do you favor the granting of malt and brewed beverage
17wholesale distributor's and importing distributor's
18licenses not for consumption on premises where sold in
19the.....................................................
20of.....................................................?

Yes

No

21When the question is in respect to the granting of club
22liquor licenses to incorporated units of national veterans'
23organizations, it shall be in the following form:

24Do you favor the granting of club liquor licenses to
25incorporated units of national veterans' organizations
26in the..................................................
27of.....................................................?

Yes

No

28When the question is in respect to the granting of club
29retail dispenser licenses to incorporated units of national
30veterans' organizations, it shall be in the following form:

1Do you favor the granting of club retail dispenser
2licenses to incorporated units of national veterans'
3organizations in the....................................
4of.....................................................?

Yes

No

5When the question is in respect to the granting of special
6occasion permits allowing the sale of liquor by qualified
7organizations in municipalities that do not already allow the
8retail sale of liquor, it shall be in the following form:

9Do you favor the granting of special occasion permits to
10allow the sale of liquor by qualified organizations in
11the.....................................................
12of.....................................................?

Yes

No

13When the question is in respect to the granting of special
14occasion permits allowing the sale of malt or brewed beverages
15only by qualified organizations in municipalities that do not
16already allow the retail sale of malt or brewed beverages, it
17shall be in the following form:

18Do you favor the granting of special occasion permits to
19allow the sale of malt or brewed beverages only by
20qualified organizations in the..........................
21of.....................................................?

Yes

No

22When the question is in respect to the establishment,
23operation and maintenance of Pennsylvania liquor stores it shall
24be in the following form:

25Do you favor the establishment, operation and
26maintenance of Pennsylvania liquor stores in
27the.....................................................
28of.....................................................?

Yes

No

29In case of a tie vote, the status quo shall obtain. If a
30majority of the voting electors on any such question vote "yes,"

1then liquor licenses shall be granted by the board to hotels,
2restaurants, resort facilities and clubs, or liquor licenses
3shall be granted by the board to public venues, to performing
4arts facilities, to continuing care retirement communities, to
5hotels located on property owned by an accredited college or
6university, to privately-owned private golf courses or to
7privately-owned public golf courses, or malt and brewed beverage
8retail dispenser licenses or wholesale distributor's and
9importing distributor's license for the sale of malt or brewed
10beverages shall be granted by the board, or club liquor licenses
11or club retail dispenser licenses shall be granted by the board
12to incorporated units of national veterans' organizations, or
13special occasion permits may be issued to qualified
14organizations, or the board may establish, operate and maintain
15Pennsylvania liquor stores, as the case may be, in such
16municipality or part of a split municipality, as provided by
17this act; but if a majority of the electors voting on any such
18question vote "no," then the board shall have no power to grant
19or to renew upon their expiration any licenses of the class so
20voted upon in such municipality or part of a split municipality;
21or if the negative vote is on the question in respect to the
22establishment, operation and maintenance of Pennsylvania liquor
23stores, the board shall not open and operate a Pennsylvania
24liquor store in such municipality or part of a split
25municipality, nor continue to operate a then existing
26Pennsylvania liquor store in the municipality or part of a split
27municipality for more than two years thereafter or after the
28expiration of the term of the lease on the premises occupied by
29such store, whichever period is less, unless and until at a
30later election a majority of the voting electors vote "yes" on

1such question.

2* * *

3Section 15. Section 474.1(a) and (g) of the act, amended
4November 29, 2006 (P.L.1421, No.155), are amended to read:

5Section 474.1. Surrender of Restaurant, Eating Place Retail
6Dispenser, Hotel, Importing Distributor and Distributor License
7for Benefit of Licensee.--(a) A restaurant, eating place retail
8dispenser, hotel, importing distributor and distributor licensee
9whose licensed establishment is not in operation for fifteen
10consecutive days or an expanded or enhanced permit holder that 
11does not sell wine or spirits as provided under sections 415 and 
12416 during a fifteen-consecutive-day period shall return its
13license or permit for safekeeping with the board no later than
14at the expiration of the fifteen-day period. The license may
15only be reissued from safekeeping in the manner set forth by the
16board through regulation.

17* * *

18(g) (1) A licensee whose license is subject to this section
19may, upon written request, apply to the board to allow the
20license to remain in safekeeping for an additional one year. The
21written request must be accompanied by a [five thousand dollar
22($5,000)] ten thousand dollar ($10,000) fee for licenses placed
23in safekeeping from counties of the first class, second class,
24second class A, third class and fourth class and a fee of [two
25thousand five hundred dollars ($2,500)] five thousand dollars 
26($5,000) for licenses placed in safekeeping from counties of the
27fifth through eighth classes. The board shall approve the
28request unless the license or licensee no longer meets the
29requirements of this act or the board's regulations. The fee
30collected shall be paid into the State Treasury through the

1Department of Revenue into the State Store Fund.

2(2) A licensee whose license remains in safekeeping after
3the expiration of an approved additional one-year period may
4submit a written request for additional one-year periods;
5however, each such request must be accompanied by a [five
6thousand dollar ($5,000)] ten thousand dollar ($10,000) fee for
7licenses placed in safekeeping from counties of the first class,
8second class, second class A, third class and fourth class and a
9fee of [two thousand five hundred dollars ($2,500)] five 
10thousand dollars ($5,000) for licenses placed in safekeeping
11from counties of the fifth through eighth classes.

12Section 16. Section 488 of the act, added February 21, 2002
13(P.L.103, No.10), is amended to read:

14Section 488. [Shipment of Wine into Commonwealth.--(a) The
15shipment of wine from out-of-State to residents of this
16Commonwealth is prohibited, except as otherwise provided for in
17this section.

18(b) Notwithstanding any other provision of this act or law
19to the contrary, a person licensed by another state as a
20producer, supplier, importer, wholesaler, distributor or
21retailer of wine and who obtains a direct wine shipper license
22as provided for in this section may ship up to nine liters per
23month of any wine not included on the list provided for in
24subsection (c) on the Internet order of any resident of this
25Commonwealth who is at least twenty-one (21) years of age for
26such resident's personal use and not for resale.

27(c) Each month, the board shall publish on the Internet a
28list of all classes, varieties and brands of wine available for
29sale in the Pennsylvania Liquor Stores. A person holding a
30direct shipper license may ship only those classes, varieties

1and brands of wine not included on the list at the time an
2Internet order is placed.

3(d) An out-of-State wine shipper shall:

4(1) Not ship more than nine liters per month on the Internet
5order of any person in this Commonwealth.

6(2) Report to the board each year the total of wine shipped
7into this Commonwealth in the preceding calendar year.

8(3) Permit the board or the Secretary of Revenue, or their
9designated representatives, to perform an audit of the out-of-
10State wine shipper's records upon request.

11(4) Be deemed to have submitted to the jurisdiction of the
12board, any other State agency and the courts of this
13Commonwealth for purposes of enforcement of this section and any
14related laws, rules or regulations.

15(e) A direct shipper may ship wine on the Internet order of
16a resident into this Commonwealth provided that the wine is
17shipped to a Pennsylvania Liquor Store selected by the resident.
18The wine will be subject to taxes in the same manner as wine
19sold directly by the board. The wine will not be released by the
20State store until all moneys due, including all taxes and fees,
21have been paid by the resident.

22(f) A person shall sign an affidavit provided by the
23Pennsylvania Liquor Store where the wine was delivered to
24stating that the wine will only be used for the person's
25personal use. Any person who resells wine obtained under this
26section commits a misdemeanor of the second degree.

27(g) The board may promulgate such rules and regulations as
28are necessary to implement and enforce the provisions of this
29section. The board may charge the resident a fee to cover the
30cost associated with processing the Internet order.

1(h) The board shall submit monthly reports to the
2Appropriations Committee and the Law and Justice Committee of
3the Senate and to the Appropriations Committee and the Liquor
4Control Committee of the House of Representatives summarizing
5the number of direct shipper licenses issued by the board, the
6quantity of wine sold pursuant to this section and the total
7dollar value of sales under this section.

8(i) The term "wine" as used in this section shall mean
9liquor which is fermented from grapes and other fruits, having
10alcoholic content of twenty-four per centum or less. The term
11"wine" shall not include malt or brewed beverages nor shall wine
12include any products containing alcohol derived from malt,
13grain, cereal, molasses or cactus.] Shipment of Wine.--(a) The 
14shipment of wine to residents of this Commonwealth shall be 
15governed by this section.

16(b) Notwithstanding any other provision of this act or law,
17a person licensed by the board or another state as a producer of
18wine and who obtains a direct wine shipper license as provided
19under this section may ship up to eighteen liters per month of
20wine on the Internet, telephone or mail order to a resident of
21this Commonwealth who is at least twenty-one (21) years of age
22for the resident's personal use and not for resale.

23(c) Each month, the board shall publish on the Internet a
24list of all classes, varieties and brands of wine available for
25sale in the Pennsylvania Liquor Stores.

26(c.1) Prior to issuing a direct wine shipper license, the
27board shall require the person seeking the license to:

28(1) File an application with the board.

29(2) Pay a one hundred dollar ($100) registration fee.

30(3) Provide to the board a true copy of its current

1alcoholic beverage license issued by the board or another state.

2(4) Provide the board with any other information the board
3deems necessary and appropriate.

4(5) Provide documentation which evidences that it has
5obtained a sales tax license from the Department of Revenue.

6(d) A direct wine shipper:

7(1) May not ship more than eighteen liters per month on the
8Internet, telephone or mail-order to a person in this
9Commonwealth.

10(2) Shall do all of the following:

11(i) Report to the board each year the total of wine shipped
12to residents of this Commonwealth in the preceding calendar
13year.

14(ii) Permit the board or the Secretary of Revenue, or their
15designated representatives, to perform an audit of the direct
16wine shipper's records upon request.

17(iii) Be deemed to have submitted to the jurisdiction of the
18board, any other State agency and the courts of this
19Commonwealth for purposes of enforcement of this section and any
20related laws, rules or regulations.

21(iv) Require proof of age of the recipient, in a manner or
22format approved by the board, before wine is shipped to a
23resident of this Commonwealth.

24(v) Ensure that a box or exterior container of wine shipped
25directly to a resident in this Commonwealth is conspicuously
26labeled with the words:

27"CONTAINS ALCOHOL: SIGNATURE OF PERSON 21 YEARS OF AGE

28 OR OLDER REQUIRED FOR DELIVERY."

29(vi) Pay to the Department of Revenue all taxes due on sales
30to residents of this Commonwealth. The amount of the taxes shall

1be calculated as if the sales were in this Commonwealth at the
2locations where delivery is made. The wine delivered under the
3authority of this subsection shall be subject to all of the
4following:

5(A) The sales and use tax imposed under section 202 of the
6act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform
7Code of 1971."

8(B) The sales and use tax imposed under Article XXXI-B of
9the act of July 28, 1953 (P.L.723, No.230), known as the "Second
10Class County Code."

11(C) The sales and use tax imposed under the act of June 5,
121991 (P.L.9, No.6), known as the "Pennsylvania Intergovernmental
13Cooperation Authority Act for Cities of the First Class."

<-14(D) The sales and use tax imposed under section 1003 of the
15act of December 18, 1984 (P.L.1005, No.205), known as the 
16"Municipal Pension Plan Funding Standard and Recovery Act."

17(D)<- (E) The direct wine shipment tax imposed under
18subsection (i).

19(vii) Annually renew its license by paying a renewal fee
20established by the board.

<-21(e) (Reserved).

22(f) A person who resells wine obtained under this section
23commits a misdemeanor of the second degree.

24(g) The board may promulgate rules and regulations as are
25necessary to implement and enforce the provisions of this
26section.

27(h) The board shall submit annual reports to the
28Appropriations Committee and the Law and Justice Committee of
29the Senate and to the Appropriations Committee and the Liquor
30Control Committee of the House of Representatives summarizing

1the number of direct shipper licenses issued by the board and
2the quantity of wine sold by direct wine shippers under this
3section.

4(i) A direct wine shipment tax is imposed and assessed at
5the rate of twelve per centum of the net price of all wine sold
6and delivered under the authority of this section. The tax shall
7be collected by the direct wine shipper from the purchaser and
8be paid to the Department of Revenue as provided under this
9section. Unless otherwise specified, the tax shall be assessed,
10collected and enforced by the Department of Revenue in the same
11manner as the tax under Article II of the "Tax Reform Code of
121971."

13(j) Receipts from the tax imposed under subsection (i) shall
14be deposited into the General Fund. Annually, on January 15 and
15July 15, the amount of two hundred fifty thousand dollars
16($250,000) shall be transferred from the General Fund to a
17restricted account within the General Fund. The money in the
18restricted account is appropriated on a continuing basis to the
19Pennsylvania Wine Industry Promotion Board for the purpose of
20awarding grants under section 488.1.

21Section 17. The act is amended by adding a section to read:

22Section 488.1. Pennsylvania Wine Industry Promotion Board.--
23(a) There is established the Pennsylvania Wine Industry
24Promotion Board.

25(b) The Pennsylvania Wine Industry Promotion Board shall be
26composed of the following members:

27(1) One member appointed by the Governor under subsection
28(c).

29(2) Four members appointed by the General Assembly under
30subsection (c).

1(c) The gubernatorial appointee must be a resident of this
2Commonwealth, have substantial experience or expertise in the
3Pennsylvania wine industry and shall serve at the pleasure of
4the Governor.

5(d) Appointments of members by the General Assembly shall be
6made as follows:

7(1) One individual appointed by the President pro tempore of
8the Senate.

9(2) One individual appointed by the Minority Leader of the
10Senate.

11(3) One individual appointed by the Speaker of the House of
12Representatives.

13(4) One individual appointed by the Minority Leader of the
14House of Representatives.

15(e) Legislative appointees must be residents of this
16Commonwealth, have substantial experience or expertise in the
17Pennsylvania wine industry and shall serve at the pleasure of
18the appointing authority.

19(f) The Pennsylvania Wine Industry Promotion Board shall do
20all of the following:

21(1) Award grants to entities for the purpose of increasing
22the production of Pennsylvania-made wines and enhancing the
23Pennsylvania wine industry through promotion, marketing and
24research-based programs and projects.

25(2) Allocate grants through a competitive grant review
26process established by the Pennsylvania Wine Industry Promotion
27Board. The application for a grant shall include:

28(i) the purpose for which the grant shall be utilized;

29(ii) information indicating need for the grant;

30(iii) an estimated budget;

1(iv) methods for measuring outcomes; and

2(v) any other criteria the Pennsylvania Wine Industry
3Promotion Board requires.

4(3) Require grant recipients to provide full and complete
5access to all records relating to the performance of the grant
6and to submit accurate information as required by the
7Pennsylvania Wine Industry Promotion Board.

8(4) Conduct a thorough annual evaluation of each program for
9which a grant under this section is made. The Pennsylvania Wine
10Industry Promotion Board shall seek repayment of funds if it
11determines that funds are not utilized for the original stated
12purpose.

13(5) Submit an annual report to the General Assembly
14detailing all actions of the Pennsylvania Wine Industry
15Promotion Board and grants awarded under this section.

16(g) The Department of Agriculture shall provide assistance
17to assist the Pennsylvania Wine Industry Promotion Board in
18carrying out its duties and responsibilities under this section.

19Section 18. Section 491(11) of the act, amended December 9,
202002 (P.L.1653, No.212), is amended to read:

21Section 491. Unlawful Acts Relative to Liquor, Alcohol and
22Liquor Licensees.--

23It shall be unlawful--

24* * *

25(11) Importation of Liquor. For any person, other than the
26board or the holder of a sacramental wine license, an importer's
27license or a direct wine shipper's license, to import any liquor
28whatsoever into this Commonwealth, but this section shall not be
29construed to prohibit railroad and pullman companies from
30purchasing and selling liquors purchased outside the

1Commonwealth in their dining, club and buffet cars which are
2covered by public service liquor licenses and which are operated
3in this Commonwealth.

4* * *

5Section 19. Section 493(12), (24) and (33) of the act,
6amended November 29, 2006 (P.L.1421, No.155), December 22, 2011
7(P.L.530, No.113) and July 5, 2012 (P.L.1007, No.116) are
8amended and the section is amended by adding a clause to read:

9Section 493. Unlawful Acts Relative to Liquor, Malt and
10Brewed Beverages and Licensees.--The term "licensee," when used
11in this section, shall mean those persons licensed under the
12provisions of Article IV, unless the context clearly indicates
13otherwise.

14It shall be unlawful--

15* * *

16(12) Failure to Have Records on Premises. For any liquor
17licensee, or any importing distributor, distributor or retail
18dispenser, to fail to keep for a period of at least two years
19complete and truthful records covering the operation of his
20licensed business, particularly showing the date of all
21purchases of liquor and malt or brewed beverages, the actual
22price paid therefor, and the name of the vendor, including State
23Store receipts, or for any licensee, his servants, agents or
24employes, to refuse the board or an authorized employe of the
25board or the enforcement bureau access thereto or the
26opportunity to make copies of the same when the request is made
27during business hours. [The records from the most recent six-
28month period must be maintained on the licensed premises.] 
29Records for [the remainder of] the two-year period may be kept 
30off the licensed premises so long as the records are returned to
 

1the licensed premises within twenty-four hours of a request by 
2the board or enforcement bureau. [A licensee may remove the 
3records for the most recent six-month period from the licensed 
4premises only for a lawful business purpose provided that they 
5are returned to the premises when that business is completed.]

6* * *

7(24) (i) Things of Value Offered as Inducement. Except as
8provided in subclause (ii), for any licensee under the
9provisions of this article, or the board or any manufacturer, or
10any employe or agent of a manufacturer, licensee or of the
11board, to offer to give anything of value or to solicit or
12receive anything of value as a premium for the return of caps,
13stoppers, corks, stamps or labels taken from any bottle, case,
14barrel or package containing liquor or malt or brewed beverage,
15or to offer or give or solicit or receive anything of value as a
16premium or present to induce directly the purchase of liquor or
17malt or brewed beverage, or for any licensee, manufacturer or
18other person to offer or give to trade or consumer buyers any
19prize, premium, gift or other inducement to purchase liquor or
20malt or brewed beverages, except advertising novelties of
21nominal value which the board shall define. This section shall
22not prevent any manufacturer or any agent of a manufacturer from
23offering and honoring coupons which offer monetary rebates on
24purchases of wines and spirits through State Liquor Stores, 
25purchases of wines and <-special spirits for off-premises 
26consumption from expanded restaurant, hotel or eating place 
27permit holders or purchases of malt or brewed beverages and wine 
28and spirits through distributors and importing distributors, in
29accordance with conditions or regulations established by the
30board. The board may redeem coupons offered by a manufacturer or

1an agent of a manufacturer at the time of purchase. Coupons
2offered by a manufacturer or an agent of a manufacturer shall
3not be redeemed without proof of purchase. This section shall
4not apply to the return of any monies specifically deposited for
5the return of the original container to the owners thereof.

6(ii) Notwithstanding subclause (i) or any other provision of
7law, a holder of a restaurant license that is also approved to
8hold a slot machine license or a conditional slot machine
9license under 4 Pa.C.S. Part II (relating to gaming) may give
10liquor and malt or brewed beverages free of charge to any person
11actively engaged in playing a slot machine.

12* * *

13(33) Off-premises Catering Permit; Fees. For any licensee, 
14his servants, agents or employes to sell alcohol at a location 
15other than its licensed premises, unless the sale is 
16specifically authorized under this act, or unless the licensee 
17receives a special permit from the board to do so. Only those 
18licensees holding a current and valid restaurant, hotel, brew 
19pub or eating place license shall be allowed to apply for such a 
20permit. Any licensee that wishes to obtain an off-premises 
21catering permit must notify the board and pay the permitting fee 
22by March of each calendar year regardless of whether the 
23licensee has scheduled catered events. Any licensee that fails 
24to notify the board and pay the permit fee by March 1 shall be 
25precluded from obtaining the permit for that calendar year. If a 
26licensee notifies the board and pays the permitting fee by March 
271 and does not then use the permit throughout the calendar year, 
28the licensee shall not be entitled to a return of the permitting 
29fee. Any licensee not granted a license until after March 1 of 
30the calendar year shall have sixty days from the date of the
 

1license transfer to notify the board of the licensee's intention 
2to use an off-premises catering permit and pay the permitting 
3fee. The board shall have the discretion to allow the issuance 
4of the permit after the March 1 deadline if the applicant is a 
5licensee in good standing with the board and complies with all 
6other requirements for the off-premises catering permit. A 
7licensee shall apply for the permit at least sixty days prior to 
8the first catered function. All servers at the off-premises 
9catered function shall be certified under the board's 
10responsible alcohol management program as required under section 
11471.1. The board may charge a fee of five hundred dollars ($500) 
12each calendar year, to each applicant for the initial permit 
13associated with a particular license, but no further fee shall 
14be charged for any subsequent permits issued to the applicant 
15for the license during the same calendar year. The applicant 
16shall submit written notice to the board thirty days prior to 
17each catered event, unless this time frame has been waived by 
18the board, and the board may approve or disapprove each event if 
19the applicant fails to provide timely notice of the catered 
20function, does not intend to conduct a function that meets the 
21requirements of this act or has previously conducted a function 
22that did not meet the requirements of this act. The fees shall 
23be paid into the State Stores Fund. Any violation of this act or 
24the board's regulations for governing activity occurring under 
25the authority of this permit may be the basis for the issuance 
26of a citation under section 471, the nonrenewal of the license 
27under section 470 or the refusal by the board to issue 
28subsequent permits or honor subsequent dates on the existing 
29permit. This penalty shall be in addition to any other remedies 
30available to the enforcement bureau or the board.

1* * *

2(35) Sale of unauthorized wine, spirits or malt or brewed
3beverages. For any licensee, his servants, agents or employes to
4offer for sale, sell or cause to be sold any wine, spirits or
5malt or brewed beverages, or any size container or quantity
6thereof, other than that which is specifically authorized by the
7license and any corresponding permits held by such licensee. Any
8wine, spirits or malt or brewed beverages that are offered for
9sale, sold or caused to be sold in violation of this clause
10shall be subject to seizure by the enforcement bureau pursuant
11to the provisions of section 211(3) or, where appropriate,
12forfeited to the Commonwealth in the manner prescribed in
13Article VI.

14Section 20. Section 495(c) and (e) of the act, amended
15December 20, 1996 (P.L.1523, No.199) and February 21, 2002
16(P.L.103, No.10), are amended to read:

17Section 495. Identification Cards; Licensees and State
18Liquor Store Employes Saved From Prosecution.--* * *

19[(c) In addition to the presentation of such identification
20card, the agent of the State Liquor Store or the licensee, or
21his servant, agent or employe, may require the person whose age
22may be in question to fill in and sign a form containing
23language approved by the board or containing the following:

24............................ 19

25I,........................................., hereby represent
26to ..........................................., a State Store or
27licensee of the board, that I am of full age and discretion and
28over the age of 21 years, having been born
29on ........................ 19..... at .........................
30This statement is made to induce said store or licensee above

1named to sell or otherwise furnish alcoholic beverages to the
2undersigned.

3Serial Number of Identification Card:

4I understand that I am subject to a fine of
5$300.00 and sixty days imprisonment for any
6misrepresentation herein.

 

7 

 

...................

8 

9 

10 

 

(Name)

11 

 

...................

12 

 

(Address)

13Witness:

 

 

14Name.............................

 

 

15Address..........................

 

 

16The forms shall be printed in a manner approved by the board
17and shall be filed alphabetically by the State Liquor Store or
18licensee in a file box containing a suitable alphabetical index
19at or before the close of business on the day that the form is
20executed, and any such form shall be subject to examination by
21any officer, agent or employe of the enforcement bureau at any
22and all times.]

23* * *

24(e) No penalty shall be imposed on a licensee, licensee's
25employe or State Liquor Store employe for serving alcohol to a
26minor if the licensee or employe can establish that the minor
27was required to produce an identification card as set forth in
28subsection (a)[, the minor completed and signed the form as set
29forth in subsection (c) and these documents were] and the 
30identification card was relied upon in good faith. This defense

1shall apply to all civil and criminal prosecutions.

2* * *

3Section 21. Section 499(a.1) of the act, amended October 5,
41994 (P.L.522, No.77), is amended to read:

5Section 499. Premises to be Vacated by Patrons.--* * *

6(a.1) Subsection (a) shall not apply to sales of malt and
7brewed beverages for consumption off the premises when the
8following conditions are met:

9(1) no licensee may sell malt or brewed beverages in excess
10of [one hundred ninety-two fluid ounces] up to <-four six-packs or 
11​​​​up to two twelve-packs <-three six-packs or up to one twelve-pack 
12and one six-pack in a single transaction in any one sale for
13consumption off the premises;

14(2) sales and service of malt and brewed beverages for
15consumption off the premises are made prior to the designated
16time the licensee is required by this act to cease serving
17liquor, malt or brewed beverages;

18(3) persons who have purchased malt and brewed beverages for
19consumption off the premises shall remove the malt and brewed
20beverages from the premises by the designated time as contained
21in this act that patrons are required to vacate the premises;

22(4) no club licensee may sell any malt or brewed beverage
23for consumption off the premises where sold or to any persons
24who are not members of the club.

25* * *

26Section 22. Section 505.2(a)(6.1) of the act, amended June
2728, 2011 (P.L.55, No.11), is amended to read:

28Section 505.2. Limited Wineries.--(a) In the interest of
29promoting tourism and recreational development in Pennsylvania,
30holders of a limited winery license may:

1* * *

2(6.1) Sell food for consumption on or off the licensed
3premises and at the limited winery's additional board-approved
4locations and sell by the glass, at the licensed premises and at
5the limited winery's additional board-approved locations, [only]
6wine and alcoholic ciders that may otherwise be sold by the
7bottle. In addition, the holder of a limited winery license may 
8sell for consumption on the licensed premises and at the limited 
9winery's additional board-approved locations, liquor produced by 
10a licensed limited distillery and malt or brewed beverages 
11produced by a licensed brewery.

12* * *

13Section 23. Section 505.4(b)(1) and (c)(1) of the act, 
14amended December 22, 2011 (P.L.530, No.113), are amended to 
15read:

16Section 505.4. Distilleries.--* * *

17(b) (1) The board may issue a limited distillery license 
18that will allow the holder thereof to operate a distillery that 
19shall not exceed production of one hundred thousand (100,000) 
20gallons of distilled liquor per year. The holder of the license 
21may manufacture and sell bottled liquors produced on the 
22licensed premises to the board, to entities licensed by the 
23board and to the public between the hours of nine o'clock 
24antemeridian and eleven o'clock postmeridian so long as a 
25specific code of distilled liquor which is listed for sale as a 
26stock item by the board in State liquor stores may not be 
27offered for sale at a licensed limited distillery location at a 
28price which is lower than that charged by the board and under 
29such conditions and regulations as the board may enforce. The 
30holder of a limited distillery license may also sell wines

1produced by a licensed limited winery or malt or brewed 
2beverages produced by a licensed brewery.

3* * *

4(c) (1) The holder of a distillery license as issued under
5section 505 may sell bottled liquors produced on the licensed
6premises to the board, to entities licensed by the board and to
7the public between the hours of nine o'clock antemeridian and
8eleven o'clock postmeridian so long as a specific code of
9distilled liquor which is listed for sale as a stock item by the
10board in State liquor stores may not be offered for sale at a
11licensed distillery location at a price which is lower than that
12charged by the board and under such conditions and regulations
13as the board may enforce. The holder of a limited distillery 
14license may also sell wines produced by a licensed limited 
15winery or malt or brewed beverages produced by a licensed 
16brewery.

17* * *

18Section 24. Section 801(a) of the act is amended to read:

19Section 801. Moneys Paid Into Liquor License Fund and
20Returned to Municipalities.--(a) The following fees, except 
21fees for expanded permit holders, collected by the board under
22the provisions of this act shall be paid into the State Treasury
23through the Department of Revenue into a special fund to be
24known as the "Liquor License Fund":

25(1) License fees for hotel, restaurant and club liquor
26licenses.

27(2) License fees for retail dispensers' (malt and brewed
28beverages) licenses.

29* * *

30Section 25. The act is amended by adding a section to read:

1Section 801.1. Moneys Paid Into the General Fund for Use of
2the Commonwealth.--(a) Fifteen and one-half per centum of gross
3sales shall be paid not less often than monthly into the State
4Treasury through the Department of Revenue for deposit in the
5General Fund, provided that in fiscal year 2013-2014, the amount
6paid under this subsection shall be at least three hundred
7thirteen million dollars ($313,000,000).

8(b) For the purposes of this section, the term "gross sales"
9shall mean the sum total of wines and spirits sold by the board
10at wholesale and retail, including the cost of goods sold and
11all markups, handling charges, taxes and other charges that are
12added to arrive at the shelf price of the product. Gross sales
13shall not include sales taxes added to the shelf price of the
14product at the point of sale.

15Section 26. Section 802(a) of the act is amended to read:

16Section 802. Moneys Paid Into The State Stores Fund for Use
17of the Commonwealth.--(a) All moneys, except fees to be paid
18into the Liquor License Fund as provided by section 801 and 
19moneys paid into the General Fund as provided by section 801.1,
20collected, received or recovered under the provisions of this
21act for license fees, permit fees, filing fees and registration
22fees, from forfeitures, sales of forfeited property, compromise
23penalties and sales of liquor and alcohol at the Pennsylvania
24Liquor Stores, shall be paid into the State Treasury through the
25Department of Revenue into a special fund to be known as "The
26State Stores Fund."

27* * *

28Section 27. The act is amended by adding <-sections to read:

29Section 804. Senior Citizens Property Tax Relief Fund.--
30There is created in the State Treasury a special fund to be

1known as the Senior Citizens Property Tax Relief Fund. Beginning
2July 1, 2014, and each year thereafter, any increase in the
3board's cash position after the distribution of funds under
4sections 801.1 and 802(c), (e) and (f) may be deposited by the
5board into the fund. Money in the fund may only be used for the
6reduction of increases in property taxes incurred by senior
7citizens pursuant to legislation distributing the money.

<-8Section 805. Transfers from the State Store Fund.--Beginning
9on July 1, 2014, and each year thereafter, the amount of one
10hundred dollars ($100) received from each application fee and
11permit fee received from expanded and enhanced permit holders
12under sections 415 and 416 shall be transferred to the
13Department of Public Welfare to be used to provide funding for
14rape crisis and domestic violence programs.

<-15Section 1002. Small Brewers Tax Credits.--(a) A tax credit 
16or credits shall be allowed for each calendar year to a 
17taxpayer, not to exceed in total amount the amount of qualifying 
18capital expenditures made by the taxpayer and certified by the 
19secretary.

20(b) A taxpayer desiring to claim a tax credit or credits
21under this section shall, within one year of the date of the
22original purchase of the qualifying capital expenditures, in
23accordance with regulations promulgated by the secretary, report
24annually to the secretary the nature, amounts and dates of
25qualifying capital expenditures made by him and such other
26information as the secretary shall require. If satisfied as to
27the correctness of such a report, the secretary shall issue to
28the taxpayer a certificate establishing the amount of qualifying
29capital expenditures made by the taxpayer and included within
30said report. The taxpayer shall also provide to the secretary

1the number of employes, total production of malt or brewed
2beverages and the amount of capital expenditures made by the
3taxpayer at each location operated by the taxpayer or a parent
4corporation, subsidiary, joint venture or affiliate. The
5taxpayer shall notify the secretary of any contract for
6production held with another manufacturer. The secretary shall
7file a report annually with the Chief Clerk of the House of
8Representatives and with the Secretary of the Senate outlining
9the employment, production, expenditures and tax credits
10authorized under this section.

11(c) Upon receipt from a taxpayer of a certificate from the
12secretary issued under subsection (a), the secretary shall grant
13a tax credit or credits in the amount certified against any tax
14due under Article XX of the act of March 4, 1971 (P.L.6, No.2), 
15known as the "Tax Reform Code of 1971," in the calendar year in
16which the expenditures were incurred or against any tax becoming
17due from the taxpayer under Article XX of the "Tax Reform Code
18of 1971," in the following three calendar years. No credit shall
19be allowed against any tax due for any taxable period ending
20before January 1, 2013, and no taxpayer shall be eligible to
21receive a tax credit for a qualifying expenditure made on or
22before December 31, 2009.

23(d) (1) As used in this section, the following words and
24phrases shall have the meanings given to them in this subsection
25unless the context clearly indicates otherwise:

26"Amounts paid." The phrase means:

27(i) amounts actually paid; or

28(ii) at the taxpayer's election, amounts promised to be paid
29under firm purchase contracts actually executed during any
30calendar year: Provided, however, That there shall be no

1duplication of "amounts paid" under this definition.

2"Qualifying capital expenditures." Amounts paid by a
3taxpayer for the purchase of items of plant, machinery or
4equipment for use by the taxpayer within this Commonwealth in
5the manufacture and sale of malt or brewed beverages: Provided,
6however, That the total amount of qualifying capital
7expenditures made by a taxpayer within a single calendar year
8shall not exceed two hundred thousand dollars ($200,000) and
9must have been made on or after January 1, 2010.

10"Secretary." The Secretary of Revenue of the Commonwealth of
11Pennsylvania where not otherwise qualified.

12"Taxpayer." A manufacturer of malt or brewed beverages
13claiming a tax credit or credits under this section after making
14a qualifying capital expenditure.

15(2) Except as otherwise provided in clause (1), the 
16definitions in section 2002 of the "Tax Reform Code of 1971," 
17shall apply to this section.

18Section 28. Studies of the wine and spirits wholesale system
19in this Commonwealth shall be conducted as follows:

20(1) The Legislative Budget and Finance Committee shall
21conduct a study of the wine and spirits wholesale system in
22this Commonwealth. The study shall commence September 1,
232015, and shall be presented to the chairman and minority
24chairman of the Law and Justice Committee of the Senate and
25the chairman and minority chairman of the Liquor Control
26Committee of the House of Representatives within six months
27of its commencement. The study shall:

28(i) Analyze the current wholesale system's ability
29to meet the demand from retailers.

30(ii) Evaluate the impact of public sector job losses

1through the transfer of the wholesale system to private
2operators.

3(iii) Consider best practices related to the
4operation of a wine and spirits wholesale operation and
5the timeline related to the transition to a privately run
6operation.

7(iv) Determine what impact such a transition would
8have on the annual fiscal stability of the Commonwealth.

9(v) Determine the effectiveness of the provisions
10contained in this act and provide recommendations to
11improve these reforms.

12(vi) Provide a valuation of the wine and spirits
13wholesale and retail systems.

<-14(vii) Determine whether the current quota system in
15each individual county is meeting consumer demand.

16(2) The Pennsylvania Liquor Control Board shall conduct
17a study of the wine and spirits wholesale system in this
18Commonwealth. The study shall commence September 1, 2015, and
19shall be presented to the chairman and minority chairman of
20the Law and Justice Committee of the Senate and the chairman
21and minority chairman of the Liquor Control Committee of the
22House of Representatives within six months of its
23commencement. The study shall:

24(i) Analyze the current wholesale system's ability
25to meet the demand from retailers.

26(ii) Evaluate the impact of public sector job losses
27through the transfer of the wholesale system to private
28operators.

29(iii) Consider best practices related to the
30operation of a wine and spirits wholesale operation and

1the timeline related to the transition to a privately run
2operation.

3(iv) Determine what impact such a transition would
4have on the annual fiscal stability of the Commonwealth.

5(v) Determine the effectiveness of the provisions
6contained in this act and provide recommendations to
7improve these reforms.

8(vi) Provide a valuation of the wine and spirits
9wholesale and retail systems.

10(<-vii) Determine whether the current quota system in
11each individual county is meeting consumer demand.

12(3) If the findings of either study determine that the
13divestiture of the wine and spirits wholesale system would
14not have a significant impact on the annual fiscal stability
15of the Commonwealth, the General Assembly may consider
16legislation providing for the divestiture of the wine and
17spirits wholesale system. Following the General Assembly's
18enactment of legislation providing for the divestiture of the
19board's wholesale wine and spirits operation, the board shall
20divest of its wine and spirits wholesale system consistent
21with the provision of the act authorizing wholesale
22divestiture.

<-23Section 29. The regulations of the board at 40 Pa. Code §§
243.52 (relating to connection with other business), 3.53
25(relating to restriction on storage and sales where board has
26approved connection with other business), 3.54 (relating to
27separation between licensed premises and other business) and
283.56 (relating to licensed premises operated in conjunction with
29other business) are abrogated to the extent the regulations are
30inconsistent with this act.

1Section 29<- 30. Repeals are as follows:

2(1) The General Assembly declares that the repeal under
3paragraph (2) is necessary to effectuate the addition of
4section 801.1 of the act.

5(2) The act of June 9, 1936 (Sp.Sess., P.L.13, No.4),
6entitled, as reenacted and amended, "An act imposing an
7emergency State tax on liquor, as herein defined, sold by the
8Pennsylvania Liquor Control Board; providing for the
9collection and payment of such tax; and imposing duties upon
10the Department of Revenue and the Pennsylvania Liquor Control
11Board," is repealed.

12Section 30<- 31. This act shall take effect as follows:

13(1) The following provisions shall take effect
14immediately:

15(i) The amendment of section 493(33) of the act.

16(ii) This section.

17(2) The remainder of this act shall take effect in 60
18days.