PRINTER'S NO. 1274

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1075

Session of

2017

INTRODUCED BY TURZAI, BERNSTINE, BLOOM, CUTLER, DOWLING, DUNBAR,

EMRICK, GREINER, GROVE, A. HARRIS, HICKERNELL, IRVIN, JAMES,

JOZWIAK, KAUFFMAN, LAWRENCE, MACKENZIE, McGINNIS, MENTZER,

reenacted, "An act relating to alcoholic liquors, alcohol and

malt and brewed beverages; amending, revising, consolidating

and changing the laws relating thereto; regulating and

restricting the manufacture, purchase, sale, possession,

consumption, importation, transportation, furnishing, holding

in bond, holding in storage, traffic in and use of alcoholic

liquors, alcohol and malt and brewed beverages and the

persons engaged or employed therein; defining the powers and

duties of the Pennsylvania Liquor Control Board; providing

for the establishment and operation of State liquor stores,

licenses and regulations, liquor, alcohol and malt and brewed

beverages, providing for wholesale permit and for wholesale

licenses; and, in disposition of moneys collected under

provisions of act, further providing for moneys paid into the

State Stores Fund for use of the Commonwealth, providing for

moneys paid into the State Stores Operating Fund for use of

the board and establishing the State Stores Operating Fund.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 102 of the act of April 12, 1951 (P.L.90,

"Spirits" shall mean any beverage which contains alcohol

obtained by distillation, mixed with water or other substance in

solution, and includes brandy, rum, whiskey, gin or other

spirituous liquors, and such liquors when rectified, blended or

otherwise mixed with alcohol or other substances.

* * *

Section 2. The act is amended by adding sections to read:

Section 410.1. Wholesale Permit.--(a) Notwithstanding any

other provision of law, an importer licensed under this article

may make application to the board, on forms prescribed by the

shall approve the issuance of a wholesale permit within sixty

days of receipt of the application if the applicant meets the

requirements under this section. An applicant shall submit the

initial permit fee with the application to the board. The

Department of Revenue shall audit retailers to determine whether

wholesale permit holders or licensees are remitting the tax

imposed under sections 415 and 416 and Article II of the act of

March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of

Forces facilities and any other authorized person permitted to

purchase and resell wine and spirits under this act and make

wine and spirits available for sale under the same pricing

structure.

(iii) Post prices with the board as follows:

(A) A schedule of prices shall identify the filer by name,

address and license number on forms prescribed by the board.

(B) Schedules shall be filed on or before the twenty-fifth

day of each month and shall become effective on the first day of

the second succeeding calendar month. When the twenty-fifth day

falls on a Saturday, Sunday or holiday, amended schedules may be

filed on the following business day.

(D) The schedules filed each month which contain a listing

of all brands of wine and spirits to be sold shall be known as

master schedules. The board may permit or require the filing of

short form schedules for any particular month in place of the

master schedule. Short form schedules shall show all new items,

price changes or items discontinued since the last filing of a

(2) The wholesale permit holder may sell and distribute more

than one brand of wine or spirits under the same permit and

shall provide any contractual agreements between the wholesale

permit holder and the licensed manufacturer to the board.

(3) The wholesale permit holder may amend the list of brands

of wine and spirits it distributes to include additional brands

of wine and spirits. The following shall apply:

(i) For brands of wine or spirits that have not been sold by

the board at Pennsylvania Liquor Stores or through special

liquor orders, a wholesale permit holder shall apply to the

Commonwealth must be delivered to a wholesale permit holder's

licensed premises. Upon delivery, the products shall be

unloaded, inventoried and remain on the licensed premises for

forty-eight hours before delivery is made to a Pennsylvania

Liquor Store, a licensee's licensed premises or United States

Armed Forces facilities. During that time period, the board may

inspect and inventory importer warehouses. In the event that the

forty-eight hour hold period may cause economic hardship to the

(ii) Unfair or deceptive trade practices proscribed under

Federal or State law or regulation.

(iii) Intentional exclusion of competing brands of wine or

spirits from the marketplace.

(6) The wholesale permit holder may only sell and distribute

those products in this Commonwealth that are subject to a

contractual relationship between the wholesale permit holder and

one or more licensed manufacturers or suppliers of wine or

spirits.

(7) A wholesale permit holder shall remit to the Department

1936 (1st Sp.Sess., P.L.13, No.4), entitled "An act imposing an

emergency State tax on liquor, as herein defined, sold by the

Pennsylvania Liquor Control Board; providing for the collection

and payment of such tax; and imposing duties upon the Department

of Revenue and the Pennsylvania Liquor Control Board," shall be

included in the retail price of wine or spirits offered for sale

by the wholesale permit holder. The tax may not be assessed at

the point of sale to consumers. The wholesale permit holder

Commonwealth may obtain a wholesale permit or license from the

board. No wholesale permit may be issued to any wine or spirits

manufacturer or producer.

(10) A licensed importer that wishes to obtain a wholesale

permit shall do all of the following:

(i) Notify the board in writing.

(ii) Pay the permitting fees specified under clause (11).

(iii) Provide a statement to the board indicating that the

licensed importer plans to continuously operate under the

wholesale permit for the duration of the permit. The wholesale

For purposes of this subclause, "cost of goods sold" shall be

determined as the purchase price the board paid to the licensed

importer for products sold by the board in the most recent

twelve-month period.

(ii) A wholesale permit holder shall pay a renewal fee equal

to ten per centum of its gross receipts for each calendar

quarter upon commencement of its wholesale operations.

(iii) The renewal fee shall be due and payable on the

and any other authorized purchaser.

(12) A violation of this act or the board's regulations for

governing activity occurring under the authority of the

wholesale permit may be the basis for any of the following:

(i) A fine, suspension or wholesale permit revocation.

(ii) Nonrenewal of the wholesale permit.

(iii) Other penalties authorized under section 471.

(13) The board shall have no authority to do any of the

following once wholesale permits have been issued and permit

holders have commenced providing wholesale products to licensees

other authorized purchaser under this act.

(b) All fees paid to the board under this section shall be

deposited into the General Fund.

Section 410.2. Wholesale Licenses.--(a) At the conclusion

of the ten-year wholesale permit under section 410.1:

(1) The Commonwealth's wholesale wine and spirits system

shall be divested.

(2) The holder of a wholesale permit shall be granted a

(1) Wholesale licenses issued under this section shall be

subject to renewal every year.

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

form prescribed by the board, at least thirty days prior to the

expiration of the wholesale license and shall include, at a

minimum, an update of the information contained in the initial

and prior renewal applications and the payment of any renewal

fee required under this section.

(3) A renewal fee of five per centum of the wholesale

licensee's gross receipts shall be due upon application for the

this section if it finds that the licensee or any of its

affiliates, executive officers, directors or general or limited

partners or persons holding a controlling interest in the

licensee:

(i) is in violation of a provision of this act;

(ii) has furnished the board with false or misleading

information; or

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

into the Liquor License Fund as provided by section 801,

collected, received or recovered under the provisions of this

act for license fees, permit fees, filing fees and registration

fees, from forfeitures, sales of forfeited property[,] and

compromise penalties [and sales of liquor and alcohol at the

Pennsylvania Liquor Stores], shall be paid into the State

Treasury through the Department of Revenue into a special fund

to be known as "The State Stores Fund."

* * *

(f) Any moneys in the State Stores Fund or the State Stores

Pennsylvania Liquor Control Board, with the approval of the

Governor, shall, from time to time, fix the amount of money

which may be so paid over into the General Fund and by its

requisition shall direct the Department of the Auditor General

and the Treasury Department to transfer such moneys from the

State Stores Fund or the State Stores Operating Fund to the

General Fund. The Pennsylvania Liquor Control Board shall,

immediately upon voting to pay over any moneys from the State