Regular Session 2019-2020 House Bill 2547 P.N. 3831

PRINTER'S NO. 3831

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2547

Session of

2020

INTRODUCED BY O'NEAL, TURZAI, TOEPEL, BARRAR, DUNBAR, JONES,

RYAN, SIMMONS, ROWE, BERNSTINE, JOZWIAK, ZIMMERMAN, JAMES,

KEEFER, STRUZZI, MIHALEK, KAUFFMAN, GREINER, BOROWICZ, MASSER

AND FEE, MAY 26, 2020

REFERRED TO COMMITTEE ON LIQUOR CONTROL, MAY 26, 2020

AN ACT

Amending the act of April 12, 1951 (P.L.90, No.21), entitled "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,

for the payment of certain license fees to the respective

municipalities and townships, for the abatement of certain

nuisances and, in certain cases, for search and seizure

without warrant; prescribing penalties and forfeitures;

providing for local option, and repealing existing laws," as

follows:

In preliminary provisions, further providing for

definitions and for interpretation.

In the Pennsylvania Liquor Control Board, further

providing for general powers, providing for fee adjustment by

regulation and further providing for subject of regulations

and for enforcement and repealing provisions relating to wine

and spirits marketing.

In Pennsylvania Liquor Stores, further providing for

establishment and for sales.

Providing for wine and spirits distribution.

In licensing, further providing for hotels, restaurants

and clubs liquor licenses, providing for grocery store

licenses, further providing for liquor license sales and

restrictions, providing for grocery store license sales and

restrictions, further providing for malt and brewed beverages

licensees, for wine and spirits auction permits, for liquor

importers' license fees, privileges and restrictions, for

interlocking business prohibited and for malt and brewed

beverages licenses, providing for distributor package reform

permit, further providing for distributors and dispensers

licenses, for prohibitions against the grant of licenses, for

numbers and kinds of licenses, for distributors and importing

distributors restrictions, for retail dispensers

restrictions, for interlocking business prohibited, for

breweries, for county limitations, for assignability, for

fines, for responsible alcohol management, for local option,

for unlawful acts, for hours of operation, providing for

unlawful acts and for licensees and taxation and further

providing for penalties and for vacation of premises.

In distilleries, wineries, bonded warehouses, bailees and

transporters, further providing for limited wineries, for

distilleries and for license fees.

In disposition of money, further providing for moneys

paid into Liquor License Fund.

Providing for supplemental provisions.

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,

No.21), known as the Liquor Code, is amended by adding

definitions to read:

Section 102. Definitions.--The following words or phrases,

unless the context clearly indicates otherwise, shall have the

meanings ascribed to them in this section:

"Affiliate" or "person affiliated with" shall mean a person

that directly or indirectly, through one or more intermediaries,

controls, is controlled by or is under common control with a

specified person.

* * *

"Blended brand valuation" shall mean, for any particular

brand of liquor, the sum of the wholesale profit margin on each

product of a brand.

* * *

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"Brand of liquor" shall mean a liquor product or series of

liquor products produced by a single manufacturer.

* * *

"Change in control" shall mean, for purposes of wholesale or

retail licensees as defined in this section, the acquisition by

a person or group of persons acting in concert of more than

twenty per centum of a licensee's securities or other ownership

interests, with the exception of any ownership interest of the

person that existed at the time of initial licensing, or more

than twenty per centum of the securities or other ownership

interests of a corporation or other legal entity which owns,

directly or indirectly, at least twenty per centum of the

securities or other ownership interests of the licensee.

* * *

"Commission" shall mean the State Civil Service Commission.

* * *

"Controlling interest" shall mean as follows:

(1) For a publicly traded legal entity, an interest in a

legal entity, applicant or licensee whereby a person's sole

voting rights under State law or corporate articles or bylaws

entitles the person to elect or appoint one or more of the

members of the board of directors or other governing board or

the ownership, directly or indirectly, of five per centum or

more of the securities of the publicly traded corporation.

(2) For a privately held corporation, partnership, limited

liability company or other form of privately held legal entity,

the holding of any securities in the legal entity.

* * *

"Department" shall mean the Department of General Services of

the Commonwealth.

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* * *

"Displaced employe" shall mean a salaried employe of the

board whose employment is terminated as a sole and direct result

of the implementation of Article III-A. The term shall not

include a person who is terminated for cause or who retires or

resigns, is furloughed or is otherwise separated from employment

for any other reason. The term excludes intermittent liquor

store clerks and seasonal liquor store clerks.

* * *

"Grocery store" shall mean a reputable place operated by

persons of good repute that primarily sells food, supplies for

the table and food products for human consumption off the

premises and that has an area under one roof of ten thousand

square feet or more.

* * *

"Heritage State Stores" shall mean the number of State

stores, as determined by the board, located in any given county

as of the effective date of this definition.

* * *

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

spirits retail license issued pursuant to section 311-A.

* * *

"Variable pricing" shall mean, for purposes of the wholesale

sale of liquor, any disparity in the price of an item sold to

one licensee as compared to the price of the same item to

another licensee or a licensee of a different classification.

The term shall not include discounts for volume purchases.

* * *

"Wholesale acquisition factor" shall mean a factor of two and

one-half applied to the wholesale profit margin of a brand of

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liquor in determining a wholesale license fee.

"Wholesale licensee" shall mean a person that holds a wine

and spirits wholesale license issued pursuant to section

321.1- A.

"Wholesale profit margin" shall mean, for any particular

liquor product, twenty per centum of the total of costs of goods

sold of the product in the Commonwealth over the most recent

twelve-month period for which information is available.

* * *

"Wine and spirits retail license" shall mean a license issued

by the department or the board authorizing a person to sell and

distribute wine and spirits to the public for off-the-premises

consumption.

"Wine and spirits wholesale license" shall mean a license

issued by the department or the board authorizing a person to

sell and distribute liquor on a wholesale basis to the board

until all retail licenses have been issued in accordance with

Article III-A and to retail licensees and other licensees under

this act.

* * *

Section 2. Sections 104(c) and (d) of the act are amended to

read:

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

this act is to prohibit the manufacture of and transactions in

liquor, alcohol and malt or brewed beverages which take place in

this Commonwealth, except by and under the [control] regulatory

authority of the board as herein specifically provided, and

every section and provision of the act shall be construed

accordingly; to provide a structure in this Commonwealth for a

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distribution system, including the [establishment of

Pennsylvania liquor stores and] licensing of wine and spirits

wholesalers, wine and spirits retailers, importing distributors

and distributors; and to preserve manufacturers of liquor and

alcohol and malt and brewed beverages selling those products

within this Commonwealth. The provisions of this act dealing

with the manufacture, importation, sale, distribution and

disposition of liquor, alcohol and malt or brewed beverages

within the Commonwealth through the instrumentality of the

board, licensees and otherwise, provide the means by which such

control shall be made effective. This act shall not be construed

as forbidding, affecting or regulating any transaction which is

not subject to the legislative authority of this Commonwealth.

(d) The provisions of this act are intended to create a

system for distribution [that shall include the fixing of prices

for] of liquor and alcohol and controls placed on [prices for]

the sale and distribution of malt and brewed beverages, and each

of which shall be construed as integral to the preservation of

the system, without which system the Commonwealth's control of

the sale of liquor and alcohol and malt and brewed beverages and

the Commonwealth's promotion of its policy of temperance and

responsible conduct with respect to alcoholic beverages would

not be possible.

* * *

Section 3. Section 207(a), (b), (c), (e) and (j) of the act

are amended and the section is amended by adding subsections to

read:

Section 207. General Powers of Board.--Under this act, the

board shall have the power and its duty shall be:

(a) To buy, import or have in its possession for sale and

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sell liquor, alcohol, corkscrews, wine and liquor accessories,

trade publications, gift cards, gift certificates, wine- or

liquor-scented candles and wine glasses in the manner set forth

in this act: Provided, however, That all purchases shall be made

subject to the approval of the State Treasurer, or his

designated deputy. The board shall buy liquor and alcohol at the

lowest price and in the greatest variety reasonably obtainable.

The board's authority to exercise the powers granted pursuant to

this subsection is subject to the limitations set forth in

Article III-A.

(b) The following shall apply:

(1) To control the manufacture, possession, sale,

consumption, importation, use, storage, transportation and

delivery of liquor, alcohol and malt or brewed beverages in

accordance with the provisions of this act, and to fix the

wholesale and retail prices at which liquors and alcohol shall

be sold at Pennsylvania Liquor Stores.

(2) Except as provided in paragraphs (3) and (4), prices

shall be proportional with prices paid by the board to its

suppliers and may include a handling fee. This proportional

pricing provision shall not apply to special liquor orders

authorized under section 305(a).

(3) The board may price its best-selling items and limited

purchase items in a manner that maximizes the return on the sale

of those items.

(4) The board may discount the price of discontinued items.

(5) All prices of a particular product identification number

shall be uniform throughout the Commonwealth. The board may

establish a preferential price structure for wines produced

within this Commonwealth for the promotion of such wines, as

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long as the price structure is uniform within each class of wine

purchased by the board.

(6) On a quarterly basis the board shall publish a listing

of the wholesale and Pennsylvania Liquor Store retail prices on

its publicly accessible Internet website.

(7) No later than April 1st of each year the board shall

submit an annual written report to the Law and Justice Committee

of the Senate and the Liquor Control Committee of the House of

Representatives. The report shall contain information related to

the method and rationale for pricing products.

(8) No later than June 1st of each year, the board shall

appear before the Law and Justice Committee of the Senate and

the Liquor Control Committee of the House of Representatives to

provide testimony in relation to its annual written report under

paragraph (7).

(9) The board shall require each Pennsylvania manufacturer

and each nonresident manufacturer of liquors, other than wine,

selling such liquors to the board, which are not manufactured in

this Commonwealth, to make application for and be granted a

permit by the board before such liquors not manufactured in this

Commonwealth shall be purchased from such manufacturer. Each

such manufacturer shall pay for such permit a fee which, in the

case of a manufacturer of this Commonwealth, shall be equal to

that required to be paid, if any, by a manufacturer or

wholesaler of the state, territory or country of origin of the

liquors, for selling liquors manufactured in Pennsylvania, and

in the case of a nonresident manufacturer, shall be equal to

that required to be paid, if any, in such state, territory or

country by Pennsylvania manufacturers doing business in such

state, territory or country. In the event that any such

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manufacturer shall, in the opinion of the board, sell or attempt

to sell liquors to the board through another person for the

purpose of evading this provision relating to permits, the board

shall require such person, before purchasing liquors from him or

it, to take out a permit and pay the same fee as hereinbefore

required to be paid by such manufacturer. All permit fees so

collected shall be paid into the State Stores Fund. The board

shall not purchase any alcohol or liquor fermented, distilled,

rectified, compounded or bottled in any state, territory or

country, the laws of which result in prohibiting the importation

therein of alcohol or liquor, fermented, distilled, rectified,

compounded or bottled in Pennsylvania. The board may not sell

private label products. A Pennsylvania Liquor Store may continue

to sell private label products within its inventory after the

effective date of this section until the private label products

within its current inventory are depleted.

(10) The proportional pricing under paragraph (2) shall not

apply to special liquor orders authorized under section 305(a).

(10.1) The board's authority to exercise the powers granted

pursuant to this subsection is subject to the limitations set

forth in Article III-A.

(11) As used in this subsection, the following words and

phrases shall have the meanings given to them in this paragraph:

"Best-selling items" shall mean the one hundred fifty (150)

most sold product identification numbers of wine and the one

hundred fifty (150) most sold product identification numbers of

liquor as measured by the total number of units sold on a six-

month basis calculated every January 1 and July 1.

"Discontinued items" shall mean those product identification

numbers that the board has voted to delist at a public meeting.

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"Limited purchase items" shall mean those product

identification numbers that the board purchases on either a one-

time or nonrecurring basis due to the product's limited

availability or finite allocation.

"Product identification number" shall mean the stock keeping

unit (SKU) or a successor method of identifying specific

products.

[(c) To determine the municipalities within which

Pennsylvania Liquor Stores shall be established and the

locations of the stores within such municipalities.]

* * *

(e) (1) Through the [Department of General Services]

department as agent, to lease and furnish and equip such

buildings, rooms and other accommodations as shall be required

for the operation of this act.

(2) The department shall not relocate a Pennsylvania Liquor

Store after the effective date of this paragraph.

* * *

(j) By regulation, to provide for the use of a computerized

referral system to assist consumers in locating special items at

Pennsylvania Liquor Stores and for the use of electronic

transfer of funds and credit cards for the purchase of liquor

and alcohol at Pennsylvania Liquor Stores. The board's authority

to exercise the powers granted pursuant to this subsection is

subject to the limitations set forth in Article III-A.

* * *

(o) To close Pennsylvania Liquor Stores as directed under

Article III-A.

(p) The board may implement a delivery system as a means of

providing product to all licensees under this act.

20200HB2547PN3831 - 10 -

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

Section 207.1. Adjustment of Fees by Regulation.--(a)

Notwithstanding any provision of this act or the act of April 9,

1929 (P.L.177, No.175), known as "The Administrative Code of

1929," to the contrary, all fees required under this act shall

be fixed by the board by regulation and shall be subject to the

act of June 25, 1982 (P.L.633, No.181), known as the "Regulatory

Review Act."

(b) The board shall be authorized to increase license fees

by regulation under the following conditions:

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

act are not sufficient to meet all expenditures of the board

over a two-year period, the board shall increase the fees by

regulation, subject to the "Regulatory Review Act," so that the

projected revenues will meet projected expenditures.

(2) If the board determines that the fees established by the

board under subsection (a) are inadequate to meet the minimum

enforcement efforts required under this act, the board, after

consultation with the enforcement bureau, and subject to the

"Regulatory Review Act," shall increase the fees by regulation

in an amount so that adequate revenues are raised to meet the

required expenditures.

are inconsistent with this section.

Section 5. Sections 208(a), (c), (d), (e), (i) and (j) and

211(c) and (f) of the act are amended to read:

Section 208. Specific Subjects on Which Board May Adopt

Regulations.--Subject to the provisions of this act and without

limiting the general power conferred by the preceding section,

the board may make regulations regarding:

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[(a) The equipment and management of Pennsylvania Liquor

Stores and warehouses in which liquor and alcohol are kept or

sold, and the books and records to be kept therein.]

* * *

[(c) The purchase, as provided in this act, of liquor and

alcohol, and its supply to Pennsylvania Liquor Stores.

(d) The classes, varieties and brands of liquor and alcohol

to be kept and sold in Pennsylvania Liquor Stores. In making

this determination the board shall meet not less than twice a

year.

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

various classes, varieties or brands of liquor and alcohol kept

for sale by the board under this act.]

* * *

[(i) The place and manner of depositing the receipts of

Pennsylvania Liquor Stores and the transmission of balances to

the Treasury Department through the Department of Revenue.

(j) The solicitation by resident or nonresident vendors of

liquor from Pennsylvania licensees and other persons of orders

for liquor to be sold through the Pennsylvania Liquor Stores

and, in the case of nonresident vendors, the collection

therefrom of license fees for such privilege at the same rate as

provided herein for importers' licenses.]

Section 211. Enforcement.--* * *

State Police Officers to such [supervisory and other] capacities

in the enforcement bureau as he deems necessary. All other

personnel of the enforcement bureau shall be civilians.

Notwithstanding any other provision of law, a State Police

Officer assigned to the enforcement bureau may not be counted

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against the complement of officers as prescribed in section 205

of the act of April 9, 1929 (P.L.177, No.175), known as "The

Administrative Code of 1929."

* * *

(f) In addition to the information provided to the General

Assembly and the Legislative Data Processing Center under

sections 613 and 614 of [the act of April 9, 1929 (P.L.177,

No.175), known as] "The Administrative Code of 1929,"

respectively, the Pennsylvania State Police shall provide to the

chairman and minority chairman of the Appropriations Committee

of the Senate and the chairman and minority chairman of the

Appropriations Committee of the House of Representatives any

other information as requested. The Pennsylvania State Police

shall also provide:

(1) a copy of the most recently completed audit of

expenditures of the enforcement bureau; and

(2) a report detailing the demographic characteristics of

the bureau's complement of civilian officers. Such report shall

include information relating to workplace diversity as contained

in section two of the Governor's Annual Workforce Report

relating to equal employment.

* * *

Section 6. Section 215 of the act is repealed:

[Section 215. Wine and Spirits Marketing.--

(e) The board is authorized to participate in or sponsor

wine and spirits events for the purpose of educating consumers

as to the wines and spirits available in this Commonwealth. The

wine and spirits to be used for the event may be acquired

through the State store system or may be donated from outside

this Commonwealth. Participation in the tastings may be

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conditioned on the purchase of a ticket to the event. The event

may include events occurring on premises licensed by the board,

and the board may sell wine and spirits for off-premises

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

Section 7. Sections 301 and 305(a), (b) and (g) of the act

are amended to read:

Section 301. Board to Establish State Liquor Stores.--(a)

The board shall [establish,] operate and maintain at such places

throughout the Commonwealth as it shall deem essential and

advisable, stores to be known as "Pennsylvania Liquor Stores,"

for the sale of liquor and alcohol in accordance with the

provisions of and the regulations made under this act[; except

that no store not so already located shall be located within

three hundred feet of any elementary or secondary school, nor

within a dry municipality without there first having been a

referendum approving such location. When the board shall have

determined upon the location of a liquor store in any

municipality, it shall give notice of such location by public

advertisement in two newspapers of general circulation. In

cities of the first class, the location shall also be posted for

a period of at least fifteen days following its determination by

the board as required in section 403(g) of this act. The notice

shall be posted in a conspicuous place on the outside of the

premises in which the proposed store is to operate or, in the

event that a new structure is to be built in a similarly visible

location. If, within five days after the appearance of such

advertisement, or of the last day upon which the notice was

posted, fifteen or more taxpayers residing within a quarter of a

mile of such location, or the City Solicitor of the city of the

first class, shall file a protest with the court of common pleas

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of the county averring that the location is objectionable

because of its proximity to a church, a school, or to private

residences, the court shall forthwith hold a hearing affording

an opportunity to the protestants and to the board to present

evidence. The court shall render its decision immediately upon

the conclusion of the testimony and from the decision there

shall be no appeal. If the court shall determine that the

proposed location is undesirable for the reasons set forth in

the protest, the board shall abandon it and find another

location. The board may establish, operate and maintain such

establishments for storing and testing liquors as it shall deem

expedient to carry out its powers and duties under this act.],

and subject to the limitations set forth in Article III-A.

(b) The board may lease the necessary premises for such

stores or establishments, but all such leases shall be made

through the [Department of General Services] department as agent

of the board. The board, through the [Department of General

Services] department, shall have authority to purchase such

equipment and appointments as may be required in the operation

of such stores or establishments.

Section 305. Sales by Pennsylvania Liquor Stores.--(a) The

board shall in its discretion determine where and what classes,

varieties and brands of liquor and alcohol it shall make

available to the public and where such liquor and alcohol will

be sold. Every Pennsylvania Liquor Store shall be authorized to

sell combination packages. If a person desires to purchase a

class, variety or brand of liquor or alcohol not currently

available from the board, he or she may place a special order

for such item. A supplier of a special order may not refuse an

order from a customer placing an order for one bottle of the

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item and may assess a surcharge on the order if the supplier

otherwise requires a minimum quantity purchase. The board may

require a reasonable deposit from the purchaser as a condition

for accepting the order. The customer shall be notified

immediately upon the arrival of the goods.

In computing the retail price of such special orders for

liquor or alcohol, the board shall not include the cost of

freight or shipping before applying a mark-up that is equal to

ten per centum of the cost of the product and taxes but shall

add the freight or shipping charges to the price after the mark-

up and taxes have been applied. In addition to the ten per

centum mark-up, the board shall impose handling fees on special

orders which come to rest at a store, in the same manner that it

imposes them on the other alcohol that it sells.

A licensed importer or a licensed vendor may place special

orders on behalf of customers and may deliver the orders to

customers. The orders do not need to come to rest at a store,

but delivery may not occur until payment for the order has been

forwarded to the board and the board has authorized the delivery

of the order. A handling fee may not be assessed by the board on

an order delivered directly to a customer. Liability for special

orders that do not come to rest at a store, shall, until the

order is delivered to the customer, remain with the licensed

importer or licensed vendor that placed the order on behalf of

the customer. The board shall, by January 1, 2017, implement a

procedure for processing special orders which do not come to

rest at a store. The board may continue to accept special orders

at its stores even after the procedure is implemented.

Unless the customer pays for and accepts delivery of any such

special order within ten days after notice of arrival, the store

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may place it in stock for general sale and the customer's

deposit shall be forfeited.

During the retail divestiture process as provided in Article

III-A, the board shall continue to take and process special

liquor orders for residents and licensees of the board, and may

establish a protocol by which prepaid orders may be picked up at

either a Pennsylvania Liquor Store or from the licensed premises

of a wine and spirits retail licensee. A wine and spirits retail

licensee is authorized to assess a handling fee for this

purpose. Any product not claimed at a wine and spirits retail

store by the purchaser shall be returned to the board after ten

days' notice of arrival was sent to the purchaser.

* * *

(b) [Every] Until the wholesale divestiture process as

provided in Article III-A is complete, every Pennsylvania Liquor

Store shall sell liquors at wholesale to wine and spirits retail

licensees, grocery stores, hotels, restaurants, clubs, and

railroad, pullman and steamship companies licensed under this

act; and, under the regulations of the board, to pharmacists

duly licensed and registered under the laws of the Commonwealth,

and to manufacturing pharmacists, and to reputable hospitals

approved by the board, or chemists. Sales to licensees shall be

made at a price that includes a discount of [ten] fourteen per

centum from the retail price; except that special order sales to

licensees authorized in subsection (a) shall not be subject to

the ten per centum discount. The board may sell to registered

pharmacists only such liquors as conform to the Pharmacopoeia of

the United States, the National Formulary, or the American

Homeopathic Pharmacopoeia. The board may sell at special prices

under the regulations of the board, to United States Armed

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Forces facilities which are located on United States Armed

Forces installations and are conducted pursuant to the authority

and regulations of the United States Armed Forces. All other

sales by such stores shall be at retail, except that incentives,

such as coupons or discounts on certain products, may be offered

to unlicensed customers of the board as provided under sections

207(m) and 493(24)(ii)(B). A person entitled to purchase liquor

at wholesale prices may purchase the liquor at any Pennsylvania

Liquor Store upon tendering cash, check or credit card for the

full amount of the purchase. For this purpose, the board shall

issue a discount card to each licensee identifying such licensee

as a person authorized to purchase liquor at wholesale prices.

Such discount card shall be retained by the licensee. The board

may contract through the Commonwealth bidding process for

delivery to wholesale licensees at the expense of the licensee

receiving the delivery.

* * *

[(g) The board is hereby authorized and empowered to adopt

and enforce appropriate rules and regulations to insure the

equitable wholesale and retail sale and distribution, through

the Pennsylvania Liquor Stores, of available liquor and alcohol

at any time when the demand therefor is greater than the

supply.]

* * *

Section 8. The act is amended by adding an article to read:

ARTICLE III-A

WINE AND SPIRITS DISTRIBUTION

SUBARTICLE A

GENERAL PROVISIONS

Section 301-A. Scope of article.

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This article relates to the privatization of liquor

distribution in this Commonwealth.

Section 302-A. Legislative intent.

The General Assembly finds and declares as follows:

(1) The wholesale and retail sale of liquor should no

longer be by the Commonwealth, but rather by private persons

licensed and regulated by the Commonwealth.

(2) The health and welfare of the citizens of this

Commonwealth will be adequately protected by the regulation

of private licensees through strict enforcement of laws and

rules relating to the purchase and sale of liquor.

(3) The sale of liquor through wholesale and retail

licensees will provide residents with improved customer

convenience, and will provide an opportunity for competitive

pricing and enhanced product selection.

(4) Modernization of the retail sale of wine and spirits

through new outlets for consumption off the premises will

further enhance customer convenience.

(5) This article will improve operation and efficiency

of State government.

(6) The authorization of wine and spirits wholesale and

retail licenses is intended to continue the generation of

revenue to the Commonwealth related to the wholesale and

retail sale of liquor.

(7) The transition to a privately-owned and privately-

operated wholesale and retail liquor distribution system

should be accomplished in a manner that protects the public

through regulation and policing of all activities involved in

the wholesale and retail sale of liquor.

(8) The establishment of wine and spirits wholesale and

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retail licenses is intended to provide broad economic

opportunities to the citizens of this Commonwealth and to be

implemented in such a manner as to prevent monopolization by

establishing reasonable restrictions on the control of

wholesale and retail licensees.

(9) The transition to a privately-owned and privately-

operated wholesale and retail liquor distribution system

should be accomplished in a manner that minimizes disruption

of services to the public.

(10) In conjunction with the transition to privately-

owned and privately-operated liquor wholesalers and retail

liquor stores, this article is intended to modernize the

retail sale of wine and spirits through new outlets for

consumption off the premises, further enhancing customer

convenience.

(11) With the transition to a privately-owned and

privately-operated wholesale and retail liquor distribution

system, and with the addition of new licensing

classifications, it is necessary to enhance alcohol education

and enforcement efforts to:

(i) ensure against the illegal sale of alcohol;

(ii) prevent and combat the illegal consumption of

alcohol by minors and visibly intoxicated individuals;

and

(iii) discourage the intemperate use of alcohol.

(12) Participation in the wholesale and retail sale of

liquor by a wholesale or retail licensee is a privilege,

conditioned upon the proper and continued qualification of

the licensee and upon the discharge of the affirmative

responsibility of the licensee to provide the department and

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the board with assistance and information necessary to assure

that the policies declared by this article are achieved.

Section 303-A. Transition to private distribution system,

powers and duties of the department and the board.

(a) Orderly transition.--The department and the board have

the power and duty to implement this article and effect an

orderly transition to a privately-owned and privately-operated

wholesale and retail liquor distribution system in this

Commonwealth in a manner that is consistent with this article

and the laws of this Commonwealth and that seeks to maintain

uninterrupted service to the public.

(b) Retail transition.--

(1) The board, in consultation with the department,

shall have the authority to issue wine and spirits retail

licenses and wine and spirits wholesale licenses, provided

that the wine and spirits wholesale licenses are not issued

until one year after the effective date of this section. The

department shall contract with financial, legal and other

advisors as are necessary to assist the department and the

board in effectuating the addition of this article. Such

contracts shall not be subject to the provisions of 62

Pa.C.S. Ch. 5 (relating to source selection and contract

formation).

(2) The divestiture of the board's retail operations

shall be accomplished through the issuance of 1,200 wine and

spirits retail licenses that shall be allocated by county . As

the State liquor stores wind down operations, 600 wine and

spirits retail licenses may be issued by the board which

shall be allocated by county. The additional licenses shall

be issued if the department determines, in cooperation with

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the board, that the retail licenses are necessary for

consumer convenience. After the determination, the retail

licenses shall be issued first to distributor licensees and

then on a first-come, first-served basis. Each successful

applicant shall be thoroughly investigated to determine

whether the person is a reputable and responsible person

suitable to be licensed to sell liquor in this Commonwealth.

(3) As licenses are awarded in a given county, the board

shall determine the necessity of winding down operations in

State liquor stores in the county and, as it becomes

necessary , terminate applicable lease agreements,

redistribute or furlough store personnel and dispose of

remaining inventory and store property.

(1) Twelve months after the effective date of this

section , in consultation with the department's advisors and

the board, the department shall transition the board's

wholesale distribution of liquor to privately-owned and

privately-operated wholesale licensees.

(2) The divestiture of the board's wholesale operations

shall be accomplished through the issuance of wine and

spirits wholesale licenses by brand of liquor, which shall be

subject to an application process as set forth in this

article. The transition must fully divest the board of all

operations relating to the wholesale distribution of liquor

within six months of the commencement of wholesale

divestiture.

(d) Cooperation required.--

(1) The board shall fully cooperate with the department

or its advisors in all aspects of implementation of this

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article and shall provide the department or its consultant

with all records and information in the possession of the

board upon request.

(2) The board shall devote sufficient resources to

planning and preparation for the divestiture of its wholesale

and retail functions.

(3) The board shall use its best efforts in coordinating

with the department or its advisors , wine and spirits retail

licensees and wine and spirits wholesale licensees so as to

maintain uninterrupted service to the residents of this

Commonwealth during divestiture.

(e) Prohibition.--The board shall not engage in wholesale

distribution of liquor following completion of the wholesale

transition to a private distribution system.

Section 304-A. Reports to the General Assembly.

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

year thereafter until the board has been fully divested of its

wholesale and retail operations, the board, in cooperation with

the department, shall submit to the Secretary of the Senate and

the Chief Clerk of the House of Representatives a report on

wholesale and retail alcohol sales in this Commonwealth and the

implementation of this article, including:

(1) the total revenue earned by the issuance of licenses

under this article;

(2) the distribution and sale of brands through private

wholesalers;

(3) the net profit or loss of each wine and spirits

retail licensed premise and State liquor store in this

Commonwealth; and

(4) the status of the ongoing transition, including

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store closures and employee displacement.

Section 305-A. Temporary regulations.

(a) Promulgation.--In order to facilitate the prompt

implementation of this article, regulations promulgated by the

department shall be deemed temporary regulations which shall

expire no later than five years following the effective date of

this section. The department may promulgate temporary

regulations not subject to:

(1) sections 201, 202 and 203 of the act of July 31,

1968 (P.L.769, No.240), referred to as the Commonwealth

Documents Law; or

(2) the act of June 25, 1982 (P.L.633, No.181), known as

the Regulatory Review Act.

(b) Expiration.--The authority provided to the department to

adopt temporary regulations under subsection (a) shall expire on

January 1, 2021.

SUBARTICLE B

WINE AND SPIRITS RETAIL LICENSES

Section 311-A. Issuance of wine and spirits retail licenses,

fees and taxes.

(a) Sale of retail licenses.--The board may award not more

than 1,200 wine and spirits retail licenses to qualified

applicants, provided that when the S tate stores close in a given

county because the wine and spirits retail licenses have

commenced operation, the department, in cooperation with the

board, shall determine if it is necessary to issue additional

wine and spirits retail licenses for customer convenience and

access. If the department determines more wine and spirits

retail licenses are needed, the department may authorize the

board to issue not more than 600 additional wine and spirits

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retail licenses.

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

licenses shall be awarded as follows:

(1) For the first 12 months after the enactment of this

section, the board shall receive applications from

distributor licensees licensed under section 431. A

distributor licensee applying for a wine and spirits retail

license must operate out of a facility with a minimum of

1,500 square feet of retail space and dedicate a minimum of

50% of shelf space for the sale of malt and brewed beverages.

(2) At the conclusion of the 12-month period under

paragraph (1), the board may issue the remaining wine and

spirits retail licenses on a first-come, first-served basis.

A private wine and spirits retail licensee must operate in a

facility with not less than 1,500 square feet of retail

space.

(1) The board, in consultation with the department and

its advisors, shall allocate the aggregate number of wine and

spirits retail licenses to be available in each county.

(2) A county may not be allocated fewer wine and spirits

retail licenses than the number of licensed distributors in

the county provided that the wine and spirits retail licenses

shall be evenly distributed throughout the county on a per

capita basis.

(3) A wine and spirits retail licensee may determine

whether the wine and spirits retail licensee will sell wine

or spirits or both. If a wine and spirits retail licensee

elects to sell either wine or spirits, the board shall

consider that one wine and spirits retail license and only

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the licensee will have the ability to pay an additional fee

in the future to sell both wine and spirits.

(d) License application.--An applicant for a wine and

spirits retail license shall file a written application with the

board in the form and containing the information as the board

shall prescribe from time to time, which must be accompanied by

a filing fee and license fee as prescribed under subsection (f).

An application must contain:

(1) a description of the part of the premises for which

the applicant desires a license;

(2) whether the applicant desires to sell wine or

spirits or both on the licensed premises. Notwithstanding any

other provision of this act, an applicant that chooses to

sell wine or spirits may make application at a later date to

the board to sell both products and be granted that authority

after paying the proper fees; and

(3) other information that the board may prescribe.

The board may not require physical alterations, improvements or

changes to the licensed premises until the wine and spirits

license application has been approved.

(e) Other licenses.--Nothing in this act shall prohibit a

wine and spirits retail licensee from receiving:

(1) a distributor license under section 431 that

authorizes the licensee to sell malt and brewed beverages for

consumption off the premises;

(2) a restaurant liquor license or a retail dispenser

license as long as the restaurant or retail dispenser does

not have an interior connection to or with the wine and

spirits retail licensed premises ; or

(3) an importing distributor license under section 431

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that authorizes the licensee to sell malt or brewed beverages

at wholesale so long as the importing distributor does not

obtain a wine and spirits wholesale license.

(f) License fees.--The fees for a wine and spirits retail

license are as follows:

(1) For a distributor licensed under section 431 making

application for a wine and spirits retail license:

(i) For the privilege of selling wine, the board

shall require the following fees:

(A) For a county of the first class or second

class, $30,000.

(B) For a county of the second class A or third

class, $37,500.

class, $22,500.

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

class, $15,000.

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

(ii) For the privilege of selling spirits, the board

shall require the following fees:

(A) For a county of the first class or second

class, $52,500.

(B) For a county of the second class A or third

class, $60,000.

class, $45,000.

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

class, $37,500.

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

(iii) For the privilege of selling both wine and

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spirits, the board shall require a fee equal to the sum

of the fees listed above by county. Nothing in this act

shall prevent a licensee who initially makes application

to sell either wine or spirits from adding the other

product at a later date so long as application is made to

the board and the proper fees are paid.

(2) For an unlicensed entity making application for a

wine and spirits retail license:

(i) For the privilege of selling wine, the board

shall require the following fees:

(A) For a county of the first class or second

class, $165,000.

(B) For a county of the second class A or third

class, $187,500.

class, $142,500.

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

class, $120,000.

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

(ii) For the privilege of selling spirits, the board

shall require the following fees:

(A) For a county of the first class or second

class, $232,500.

(B) For a county of the second class A or third

class, $262,500.

class, $202,500.

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

class, $172,500.

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

20200HB2547PN3831 - 28 -

(iii) For the privilege of selling both wine and

spirits, the board shall require a fee equal to the sum

of the fees listed above by county. Nothing in this act

shall prevent a licensee who initially makes application

to sell either wine or spirits from adding the other

product at a later date so long as application is made to

the board and the proper fees are paid.

(3) A restaurant or hotel licensee in good standing that

applies for a retail wine and spirits license shall pay the

same amount for the license as a distributor.

(4) The board may not require a distributor making

application for a wine and spirits retail license to pay the

fees in full prior to issuance of the license. A distributor

making application for a wine and spirits license has 48

months from the issuance of the license to pay to the board

the licensing fees plus a fee of 5%. If the licensee fails to

make a payment to the board on a monthly basis, the board

shall revoke the wine and spirits retail license and offer it

on a first-come, first-served basis.

Section 312-A. Postqualification of selected applicants.

(a) Investigation.--Upon selection of an applicant under

section 303-A, the Bureau of Licensing of the board shall

conduct an investigation of an applicant based upon the

information submitted to evaluate whether:

(1) the applicant qualifies as a reputable, responsible

and suitable person to hold a wine and spirits retail license

and operate a wine and spirits store;

(2) the applicant proposes an acceptable facility and

location for a wine and spirits store; and

(3) the planned operation of the applicant complies with

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this article.

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

(1) require additional information from an applicant;

and

(2) conduct onsite inspections, as necessary, to

complete the postqualification process.

the Pennsylvania State Police or the Office of Inspector General

to:

(1) assist the board in the conduct of an investigation

under this section; and

(2) provide for the reimbursement of a cost incurred for

providing assistance.

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

protocol for receiving written objections from residents,

churches, hospitals, charitable institutions, schools and public

playgrounds that are located near a proposed wine and spirits

store location. The board may consider a written objection in

the postqualification investigation of applicants. An objector

under this paragraph may not appeal the decision of the board.

(e) Investigative fee.--The board may charge a fee to an

applicant to recover the costs directly related to the board's

investigation within the postqualification process.

(f) Acceptance of qualifications.--The qualifications of an

applicant shall be accepted by the board if the investigation by

the board reveals the following:

(1) the applicant and its officers, directors and

principals, if any, are of good repute, responsible and

suitable for operating a wine and spirits store;

(2) the applicant possesses sufficient financial

20200HB2547PN3831 - 30 -

resources to:

(i) operate a wine and spirits store;

(ii) pay taxes due; and

(iii) meet financial obligations;

(3) the applicant possesses sufficient business

experience to operate a wine and spirits store;

(4) the proposed facilities comply with the operational

requirements of the statement of conditions under this

article; and

(5) the proposed location within the community is

suitable.

(g) Issuance of license.--If a selected applicant's

qualifications are accepted by the board, the board shall

qualify the applicant and issue a wine and spirits retail

license to the applicant upon the occurrence of the following:

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

of conditions required under section 313-A ;

(2) payment of the license fee by certified check or

wire transfer to a designated restricted account established

in The State Stores Fund. A distributor licensed under

section 431 that obtains a wine and spirits retail license

has 48 months to pay the license fee;

(3) payment of an outstanding investigation fee; and

(4) fulfillment of other conditions required by the

board.

(h) Approval of qualifications.--If the qualifications of

the applicant are approved by the board under subsection (f),

the board shall issue a wine and spirits retail license to the

successful applicant consistent with the requirements of

subsection (g).

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(i) License not entitlement.--

(1) This article is not intended to establish an

entitlement to a wine and spirits retail license. A wine and

spirits retail license is a privilege between the board and

the licensee.

(2) Between the licensee and a third party, a wine and

spirits retail license is property.

(j) Terms of licensure.--

(1) A wine and spirits retail license is in effect

unless the board:

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

(ii) revokes the operating authority of the licensee

under the license requirements of this article.

(2) A wine and spirits retail license is subject to

renewal every two years consistent with this article.

(3) This subsection does not relieve a wine and spirits

retail licensee of the affirmative duty to notify the board

of a change relating to the status of the wine and spirits

retail licensee's license or to other information contained

in the application materials on file with the board.

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

conditions.

(a) Statement of conditions.--The board shall develop a

statement of conditions to be executed by a wine and spirits

retail licensee governing the operations of the wine and spirits

licensee.

(b) Conditions.--In addition to other conditions the board

deems necessary or appropriate for a specific wine and spirits

retail licensee, a statement of conditions under this section

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shall include, at a minimum, the following conditions and impose

the following obligations and requirements:

(1) Under section 493.2, a wine and spirits retail

licensee may not sell or distribute liquor to an individual

under 21 years of age or to an individual who is visibly

intoxicated.

(2) A wine and spirits retail licensee may not operate a

retail wine and spirits store located within:

(i) three hundred feet of an elementary or secondary

school without the approval of the department or board;

(ii) a municipality that voted to preclude the

establishment of a State liquor store, unless the

municipality subsequently votes to permit the board to

issue a wine and spirits retail license.

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

spirits store and the facilities involved in its retail

operations, including a change to the facilities during the

term of the license, are subject to:

(i) inspection and investigation by the board and

enforcement bureau; and

(ii) approval of the board and enforcement bureau.

(4) A wine and spirits retail licensee shall maintain

adequate security to protect the licensee's inventory from

unauthorized sale or diversion and prevent the inventory's

unauthorized distribution.

(5) Unless specifically authorized in this act or with

the prior approval of the board, a wine and spirits retail

licensee may not engage in a separate business activity upon

a licensed premises where retail liquor operations are

20200HB2547PN3831 - 33 -

conducted.

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

board within 15 days of a change in persons holding an

interest in the wine and spirits license.

(7) A wine and spirits retail licensee shall notify the

board within 15 days of becoming aware of an arrest, criminal

indictment or conviction by the following:

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

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

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

(iv) if the licensee is a corporation, an officer, a

director or a shareholder in the corporation; and

(v) an affiliate of the licensee.

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

board within 15 days of becoming aware of a violation of this

article by an individual listed in paragraph (7).

(9) The premises of a wine and spirits store must be a

self-contained unit with limited customer access dedicated to

the sale of liquor and related merchandise. Except for a

licensee that also holds a distributor license, a wine and

spirits store may not have an interior connection with

another business or with a residential building except as

approved by the board. A purchase of wine and spirits must be

paid for at a location within the confines of the licensed

premises.

(10) A wine and spirits retail licensee shall configure

its premises in a manner and with adequate safeguards to

ensure that:

(i) liquor products are secure; and

(ii) the licensed area may not be accessed during

20200HB2547PN3831 - 34 -

prohibited hours of operation.

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

directly or indirectly, more than five wine and spirits

retail locations within this Commonwealth or more than one

wine and spirits retail license within a county.

(12) A wine and spirits store may sell liquor for

consumption off the premises and related merchandise within

the licensed area of the store. A sale of related merchandise

within the licensed area may not exceed 30% of the gross

annual sales of a wine and spirits store. Unless the wine and

spirits retail licensee operates another license that

authorizes the sale of malt and brewed beverages for

consumption off the premises in the same licensed area, a

wine and spirits store may not sell malt or brewed beverages

within its licensed premises.

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

premises and the facilities involved in the retail operation

and the business and financial books and records of the

retail operation available at any time for inspection and

audit by the board and the enforcement bureau. The board

shall promulgate regulations regarding the records that a

wine and spirits retail licensee must maintain in its

licensed premises.

(14) A wine and spirits retail licensee may sell wine or

spirits between 9 a.m. and 11 p.m. of any day except Sunday

to a person that is not licensed under this act.

(15) In addition to the hours authorized under paragraph

(14), a wine and spirits retail licensee may, upon purchasing

a permit from the board at an annual fee of $1,000, sell wine

or spirits on Sunday between the hours of 9 a.m. and 9 p.m.

20200HB2547PN3831 - 35 -

to persons not licensed under this act.

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

an individual under 18 years of age to work on the licensed

premises. An employee of a wine and spirits retail licensee

under 21 years of age may not engage in the sale of liquor.

(17) A wine and spirits retail licensee that is a

corporation, a limited liability company, a limited

partnership, a partnership, an association or other legal

entity must be organized under the laws of this Commonwealth.

(18) A wine and spirits retail licensee who is an

individual must be a citizen of the United States and a

resident of this Commonwealth.

(19) A wine and spirits retail licensee shall:

(i) comply with the responsible alcohol management

program training under section 471.1; and

(ii) ensure that the wine and spirits store managers

and employees who may engage in the sale of liquor attend

the responsible alcohol management training within six

months of commencing employment.

(20) A wine and spirits retail licensee may place its

license in safekeeping for a period not to exceed two years:

(i) pending transfer of the license from person-to-

person or place-to-place or both; or

(ii) during renovation of the premises where retail

operations are conducted.

(21) A wine and spirits retail license that remains in

safekeeping for a period that exceeds two years shall be

forfeited and resold by the board in a manner consistent with

this subarticle.

(22) Except as set forth in paragraph (16), an

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individual under 21 years of age may not enter the licensed

area of a wine and spirits retail licensee unless accompanied

by an adult.

(23) A wine and spirits retail licensee shall utilize a

transaction scan device to verify the age of an individual

who appears to be under 35 years of age before making a sale

of liquor. A wine and spirits retail licensee may not sell or

share data from the use of a transaction scan device provided

that the licensee may use the data to show the board or

enforcement bureau that the licensee is in compliance with

this article. As used in this paragraph, the term

"transaction scan device" means a device capable of

deciphering, in an electronically readable format, the

information encoded on the magnetic strip or bar code of an

identification card under section 495(a).

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

liquor product at a price less than the liquor product's

underlying cost.

(25) A wine and spirits retail licensee may not provide

tasting samples of liquor on the premises where retail

operations are conducted except in the manner set forth in

the board's regulations related to tasting samples provided

by sponsors.

(26) A wine and spirits retail licensee may not require

a customer to purchase a membership or pay a fee in order to

purchase products, including wine and spirits, from the

premises.

(27) In an inquiry or investigation by the board or the

enforcement bureau, a wine and spirits retail licensee shall

cooperate fully and provide requested information.

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(1) A wine and spirits retail licensee that fails to

abide by a condition contained in the licensee's statement of

conditions or commits a violation of this act or other

Federal or State law is subject to citation by the

enforcement bureau.

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

(i) a fine or suspension or license revocation;

(ii) nonrenewal of a license;

(iii) revocation of operating authority; or

(iv) another penalty authorized under sections 471

and 494.

SUBARTICLE C

DIVESTITURE OF WHOLESALE LIQUOR DISTRIBUTION

Section 321-A. Wholesale divestiture.

(a) Utilization.--In effectuating the intent of this

article, the department shall utilize the authority provided

under section 305-A and any other powers of the department, with

the full cooperation and assistance of the board.

(b) Establishment.--On the effective date of this section,

the department shall establish all of the following:

(1) An application process and schedule for the

investigation and award of wine and spirits wholesale

licenses under this article.

(2) A blended brand valuation for each brand of liquor

available for sale in this Commonwealth.

(3) Procedures and standards governing the relationship

between wine and spirits wholesale licensees and

manufacturers and the ability and terms upon which that

relationship may be terminated.

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(1) The department shall:

(i) coordinate scheduling so that wine and spirits

wholesale license applications may be received, processed

and investigated by the board's Bureau of Licensing

during the retail divestiture process; and

(ii) begin a coordinated effort to allow the board

to issue licenses 12 months from the effective date of

this section.

(2) The department must fully divest the board of all

operations relating to the wholesale distribution of liquor

within six months of commencing wholesale divestiture.

Section 321.1-A. Issuance of wine and spirits wholesale

licenses.

(a) Authorization.--The board may issue wine and spirits

wholesale licenses under the following conditions:

(1) The following shall apply:

(i) One wine and spirits wholesale license may be

issued by the board to each qualified applicant.

(ii) A wine and spirits wholesale license shall

authorize the holder to sell and distribute brands of

liquor, as proposed by an applicant and approved by the

department, to wine and spirits retail licensees and

other licensees of the board authorized to sell or

distribute liquor under this act, to United States Armed

Forces facilities located on United States Armed Forces

installations within this Commonwealth and to the holder

of a wholesale alcohol purchase permit issued by the

board.

(iii) The alcoholic products shipped into this

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Commonwealth must be delivered to the wholesaler's

licensed premises. Upon delivery, the products shall be

unloaded, inventoried and remain on the licensed premises

for 48 hours before delivery is made to a retailer.

During that time period, the board may inspect and

inventory wholesale warehouses to verify taxes that are

required to be paid on the products.

(2) Subject to the conditions and restrictions of this

subarticle, wine and spirits wholesale licensees may sell and

distribute more than one brand of liquor under the same wine

and spirits wholesale license.

(3) Upon application by a wine and spirits wholesale

licensee, the board may amend its initial authorization under

a wine and spirits wholesale license to include additional

brands of liquor or exclude previously-approved brands of

liquor.

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

(1) On the effective date of this section, the

department shall determine the wine and spirits wholesale

license fee for each brand of liquor sold at wholesale by the

board through its State liquor stores or via special liquor

order for a continuous period of at least one year. The

license fee shall be equal to the blended brand valuation for

each brand of liquor authorized by the wine and spirits

wholesale license multiplied by the wholesale acquisition

factor.

(2) The department shall publish a notice on its

Internet website of the wine and spirits wholesale license

fee for each brand of liquor determined under paragraph (1).

The department shall establish deadlines within which an

20200HB2547PN3831 - 40 -

applicant must submit an application for a wine and spirits

wholesale license for the brands of liquor specified by the

applicant.

(3) The department must receive the required license fee

for the brands of liquor specified by the applicant before a

wine and spirits wholesale license is issued by the board to

a successful applicant.

(1) For brands of liquor that have not been sold by the

board at State liquor stores or via special liquor order for

a continuous period of at least one year, the department

shall calculate the blended brand valuation utilizing sales

data for any portion of the year that the brand was sold in

this Commonwealth, after consulting with the board on the

most recent sales trends of the brand, both within and

outside this Commonwealth.

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

license, a wine and spirits wholesale licensee proposes to

sell and distribute a new brand of liquor not previously sold

in this Commonwealth, the wine and spirits wholesale licensee

shall apply to the board for permission to sell the brand and

pay an additional license fee determined in accordance with

this section. In calculating the blended brand valuation for

the new products, the board shall evaluate available sales

data in other markets or sales trends of similar products

either within or outside this Commonwealth.

(d) Term.--

(1) A wine and spirits wholesale license, after payment

of the required license fee, shall be in effect unless

suspended, revoked or not renewed under this article.

20200HB2547PN3831 - 41 -

(2) The license of a wine and spirits wholesale licensee

in good standing shall be renewed every two years under this

article.

(3) Nothing under this subsection shall be construed to

relieve a wine and spirits wholesale licensee of the

affirmative duty to notify the board of changes relating to

any of the following:

(i) The status of its license.

(ii) Information contained in the application

materials on file with the department or the board.

Section 322-A. Application for wine and spirits wholesale

license.

(a) Applications.--An application for a wine and spirits

wholesale license shall be submitted on a form and in a manner

as required by the board.

(b) Eligibility.--A person may be eligible to apply for a

wine and spirits wholesale license if the person satisfies all

of the following:

(1) Neither the applicant nor any affiliate of the

applicant has applied for or holds a wine and spirits retail

license or other license that authorizes the retail sale of

wine and spirits to consumers.

(2) The applicant is organized under the laws of this

Commonwealth if it is any of the following:

(i) A corporation.

(ii) A limited liability company.

(iii) A limited partnership.

(iv) A partnership.

(v) An association.

(vi) A legal entity other than a legal entity listed

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under this paragraph.

(3) The applicant is a citizen of the United States and

a resident of this Commonwealth if that applicant is a

natural person.

(4) Neither the applicant nor any affiliate of the

applicant, executive officer, director or general or limited

partner of the applicant or person holding, directly or

indirectly, a controlling interest in the applicant has been

convicted of a crime listed under subsection (d) (10).

(1) A properly licensed importing distributor of malt

and brewed beverages from applying for and, if approved,

being issued a wine and spirits wholesale license.

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

distillery license or a distillery license issued by the

board from acquiring a wine and spirits wholesale license.

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

information required under this article or by the department or

the board, the applicant for a wine and spirits wholesale

license shall include the following:

(1) The name, address and tax identification number of

the applicant.

(2) A statement as to whether the applicant is an

individual, corporation, limited liability company, limited

partnership, partnership or association and, if the applicant

is not an individual, the state of incorporation or

organization.

(3) If the applicant is not an individual, the name and

residence address of each executive officer, director,

general or limited partner or person holding a controlling

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interest in the applicant.

(4) If the applicant is an association, the name and

residence address of each person constituting the

association.

(5) A list of the brands of liquor the applicant

proposes to engage in wholesale distribution on a Statewide

basis.

(6) A sworn statement that the applicant has entered

into a contractual relationship with one or more liquor

manufacturers, importers or vendors of record for the

distribution in this Commonwealth of a brand or brands of

liquor, regardless of whether the contractual relationship is

contingent upon the board issuing a wine and spirits

wholesale license to the applicant.

(7) The proposed location and proof of ownership or

lease for the wholesale operation, including proposed

warehouses, if available.

(8) Floor plans for any facility proposed to be used in

wholesale operations and existing design plans for any

facility that is planned, but not yet constructed, to the

extent the floor plans are available.

(9) Information disclosing all arrests of and all

citations issued for nonsummary offenses to an applicant and

any affiliate of the applicant, executive officer, director

or general or limited partner of the applicant or person

holding a controlling interest in the applicant. The

information shall include:

(i) A brief description of the circumstances

surrounding the arrest or issuance of the citation.

(ii) The specific offense charged or cited.

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(iii) The ultimate disposition of the charge or

citation, including the details of a dismissal, plea

bargain, conviction, sentence, pardon, expungement or

order of Accelerated Rehabilitative Disposition.

(10) A sworn statement that the applicant and any

affiliate of the applicant, or any executive officer,

director or general or limited partner of the applicant or

person holding a controlling interest in the applicant have

never been convicted:

(i) of a crime involving fraud, moral turpitude or

racketeering within a period of 10 years immediately

preceding the date of the application;

(ii) of a felony or equivalent crime; or

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

Commonwealth, of the violation of a Federal or state

liquor law.

(11) A statement that the applicant intends to

continuously operate as a wine and spirits wholesale licensee

for the duration of the license term and to use its best

efforts to provide a level of service, including product

availability, reasonably equivalent to the level of service

currently provided by the Commonwealth.

(12) A financial statement or letter of credit in a form

and containing information determined by the department to

indicate the applicant's financial capability to operate the

wholesale operation and the estimated volume of wholesale

business to be conducted annually.

(13) A current tax certificate issued by the Department

of Revenue showing the amount of taxes owed to the

Commonwealth for the applicant and any affiliate of the

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applicant, executive officer, director or general or limited

partner of the applicant or person holding a controlling

interest in the applicant.

(14) A signature and verification by oath or affirmation

or under penalty of unsworn falsification to authorities by

one of the following:

(i) The applicant, if the applicant is a natural

person.

(ii) A person specifically authorized by the legal

entity to sign the application, if the applicant is a

legal entity. Written evidence of the authority to sign

must be attached to the signature and verification.

(e) Additional information.--An applicant shall, during the

application process, provide any other information determined to

be appropriate by the department.

(f) Amended application.--If a change occurs in any

information provided to the department or the board as part of

the application process, the applicant shall immediately notify

the department or the board of the change and timely provide

amended information to the department or the board in a form and

manner determined by the department or the board.

(g) Application fees and investigative costs.--

(1) An application filing fee of $10,000 shall be due

upon application for a wine and spirits wholesale license.

The application filing fee shall be refunded if, due to no

fault of the applicant, the wine and spirits wholesale

license is not approved.

(2) The department shall establish, charge and collect

fees from an applicant to recover the costs directly related

to the board's review and investigation of the application

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for a wine and spirits wholesale license. The board shall

have the same authority relating to fees as to applications

for renewal.

Section 323-A. Review and investigation of application.

(a) Completeness of application.--

(1) The following shall apply:

(i) The department may not consider an incomplete

application and shall notify the applicant in writing if

an application is incomplete.

(ii) An application shall be considered incomplete

if it does not include all applicable fees and all

information and accompanying documentation required by

the department . Unpaid taxes identified on the tax

certificate required to be filed under section

322- A(d) (13) must be paid before the application is

considered complete.

(2) A notification of incompleteness shall state the

deficiencies in the application that must be corrected prior

to consideration of the merits of the application.

(3) The applicant must be afforded a reasonable period

of time, as determined by the department, to cure the

deficiencies.

(4) If the applicant fails to timely cure noticed

deficiencies within the time specified by the department, the

application shall be deemed denied by the department without

further action.

(b) Investigation.--After receipt of an application for a

wine and spirits wholesale license and a determination that the

application is complete, the department shall provide the

application to the board's Bureau of Licensing to conduct an

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investigation of the applicant. The investigation shall include

and the applicant shall have the burden of demonstrating the

following:

(1) The truth and veracity of the information provided

in the application.

(2) The applicant's cooperation and the cooperation of

any affiliate of the applicant and any executive officer,

director or general or limited partner of the applicant or

person holding a controlling interest in the applicant in the

application process and with any request by the department or

the board for any information deemed necessary for licensure.

(3) The good character, reputation and suitability of

the applicant and any affiliate of the applicant, executive

officer, director or general or limited partner of the

applicant or person holding a controlling interest in the

applicant.

(4) The applicant possesses sufficient financial

resources to:

(i) Operate as a wine and spirits wholesale

licensee.

(ii) Pay all taxes due and owing to the

Commonwealth.

(iii) Assume liability for the safe operation of the

wholesale operations.

(5) The applicant possesses sufficient financial

resources and experience to create and maintain a successful

and efficient wholesale operation that provides service at a

level that is reasonably equivalent to the level of service

currently provided in this Commonwealth on the effective date

of this section.

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(6) The applicant has entered into a contractual

relationship with one or more licensed manufacturers,

importers or vendors of record for the distribution in this

Commonwealth of a brand or brands of liquor regardless of

whether the contractual relationship is contingent upon the

board issuing a wine and spirits wholesale license to the

applicant.

(7) The physical facilities proposed to be used in the

applicant's wholesale operations are located and designed to:

(i) assure that all warehouses are located within

this Commonwealth and licensed for the storage of liquor;

(ii) function as a self-contained unit, with limited

customer access;

(iii) not have any interior connection with any

other business or with any residential building without

prior department or board approval;

(iv) provide adequate security to protect the

applicant's inventory from unauthorized sale or

diversion; and

(v) protect the public interest.

into an agreement with the Pennsylvania State Police or the

Office of Inspector General to assist the board in conducting

investigations under this section and to provide for the

reimbursement of actual costs incurred for providing the

assistance. The board may establish, charge and collect fees

from an applicant to recover the costs of investigation.

Section 324-A. Issuance of licenses.

(a) Notification.--Upon completion of the investigation

under section 323-A, the board shall inform the department of

20200HB2547PN3831 - 49 -

the results of the board's investigation. The board shall inform

the applicant in writing of its decision to approve or deny the

application.

(b) Approval.--If the application is approved, the

department shall require the successful applicant to pay the

license fee, as required under section 321.1-A, based on the

brand licensing fees established under section 321.1-A for the

brands of liquor approved for the applicant.

(1) If an application is denied, the board shall provide

the applicant with the specific reasons for the denial in the

written notification required under subsection (a).

(2) The applicant shall be entitled to a hearing on the

denial, if a hearing is requested within 10 days of the

board's notification and the request is in writing on a form

and in a manner determined by the board .

(3) A hearing under this subsection shall be conducted

in accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating to

practice and procedure of Commonwealth agencies).

(d) Issuance.--After approval of an application, the board

shall issue a wine and spirits wholesale license to the

applicant for the exclusive privilege to sell approved brands of

liquor in this Commonwealth, if the applicant has completed all

of the following:

(1) Paid the wine and spirits wholesale license fee

required under this article. Payment must be made by

certified check or wire transfer to a designated restricted

account in The State Stores Fund.

(2) Paid outstanding application or investigation fees.

(3) Executed and delivered to the board the statement of

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conditions required under section 325-A.

(4) Repurchased from the board remaining marketable

inventory of the brands authorized under its license which

are owned by the board at the board's purchase order cost and

paid applicable taxes due and an administrative fee

determined by the board. The wine and spirits wholesale

licensee shall coordinate, at its own cost, the removal of

remaining product owned by the board.

(5) Fulfilled any other conditions required by the

department or the board or provided for under this article.

(e) License as privilege.--

(1) Nothing under this article is intended or may be

construed to create an entitlement to a wine and spirits

wholesale license.

(2) The authorization to participate in the distribution

and sale of liquor as a wine and spirits wholesale licensee

is a privilege conditioned upon this article.

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

(1) Except as set forth in paragraph (2), if a wine and

spirits wholesale license has been issued for a particular

brand of liquor, the board may not engage in the sale of that

brand of liquor.

(2) The board may coordinate the repurchase of remaining

board inventory of brands as provided under Subarticle D.

(3) The board's Bureau of Licensing shall provide

adequate notice to the board's Bureau of Supply Chain that a

wine and spirits wholesale license application is ready for

license approval to ensure that appropriate inventory

reduction can be effectuated without causing a shortage of

the brand at issue.

20200HB2547PN3831 - 51 -

Section 325-A. W ine and spirits w holesale licensee statement of

conditions.

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

consultation with the board, shall develop a statement of

conditions to be executed by each wine and spirits wholesale

licensee governing the operation of the wine and spirits

wholesale licensee.

(b) Conditions, restrictions and prohibited acts.--In

addition to any other conditions the department, in consultation

with the board, deems necessary or appropriate for a specific

wine and spirits wholesale licensee or which may be mandated for

all licensees through regulations of the department or the

board, the statement of conditions under subsection (a) shall

include the following:

(1) A wine and spirits wholesale licensee may not sell

liquor to a person, except a person specified in section

321.1-A(a)(1).

(2) A wine and spirits wholesale licensee must serve all

licensees eligible to purchase and resell liquor under this

act and must make liquor available for sale to those

licensees under the same pricing structure.

(3) Except for a wine and spirits wholesale licensee

that holds an importing distributor license under section

431, a wine and spirits wholesale licensee may not sell malt

or brewed beverages.

(4) A wine and spirits wholesale licensee may not engage

in conduct that would constitute any of the following:

(i) Variable pricing.

(ii) Unfair or deceptive trade practices proscribed

under Federal or State law or regulation.

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(iii) Intentional exclusion of competing brands of

liquor from the marketplace.

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

and distribute liquor products in this Commonwealth that are

subject to a contractual relationship between the wine and

spirits wholesale licensee and one or more licensed

manufacturers or importers of wine and spirits.

(6) (i) A wine and spirits wholesale licensee shall do

all of the following:

(A) Acquire liquor exclusively from:

(I) a licensed manufacturer or importer of

wine and spirits with whom the wine and spirits

wholesale licensee has the contractual authority

to sell at wholesale as provided under this act;

(II) an entity affiliated with the wine and

spirits wholesale licensee.

(B) Keep a detailed log of wholesale liquor

transactions, including acquisitions of liquor from

an entity listed under clause (A) and sales to

licensees under this act.

(ii) If liquor is acquired from an entity affiliated

with the wine and spirits wholesale licensee, the entity

shall, for taxation purposes, be considered a licensed

manufacturer or importer of wine and spirits.

(7) A wine and spirits wholesale licensee's licensed

premises and all facilities involved in its wholesale

operations, including any changes to the facilities during

the term of the license, shall be subject to the inspection,

investigation and approval of the department or the board or

20200HB2547PN3831 - 53 -

the enforcement bureau.

(8) A wine and spirits wholesale licensee shall maintain

adequate security to protect the licensee's inventory from

unauthorized sale, removal or theft and prevent the

inventory's unauthorized distribution.

(9) As follows:

(i) Except as provided under paragraph (1), a wine

and spirits wholesale licensee may not engage in a

separate business activity on a premises on which

wholesale liquor operations are conducted without prior

approval of the board.

(ii) A wine and spirits wholesale licensee that

holds an importing distributor license may engage in

sales of malt or brewed beverages under this act.

(10) A wine and spirits wholesale licensee shall collect

and remit to the Department of Revenue all applicable taxes.

(11) A wine and spirits wholesale licensee shall be

considered a State liquor store for the purpose of collecting

and remitting taxes under Article II of the act of March 4,

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

from persons licensed to sell liquor for consumption on the

premises under Article IV.

(12) A wine and spirits wholesale licensee shall notify

the board within 15 days of a change in a person holding a

controlling interest in the licensee.

(13) A wine and spirits wholesale licensee shall notify

the board within 15 days of becoming aware of an arrest,

criminal indictment or conviction by the licensee, an

affiliate of the licensee or an executive officer, director

or general or limited partner of the licensee or person

20200HB2547PN3831 - 54 -

holding a controlling interest in the licensee.

(14) A wine and spirits wholesale licensee shall notify

the board within 15 days of becoming aware of a violation of

this act by the licensee, an affiliate of the licensee or an

executive officer, director or general or limited partner of

the licensee, person holding a controlling interest in the

licensee or employee of the licensee.

(15) As follows:

(i) A wine and spirits wholesale licensee may not

operate in a manner which constitutes a violation of

Federal or State law, including antitrust or other unfair

trade practices, or creates a monopolistic liquor

distribution system in this Commonwealth.

(ii) If a wine and spirits wholesale licensee seeks

to be approved by the department or the board to

distribute additional brands of liquor which would give

the licensee a control of more than 50% of the liquor

distributed in the wholesale market of this Commonwealth,

in terms of gross dollar sales, the board shall convene a

hearing to determine whether approval of the proposed

application for additional brands would constitute a

violation of antitrust or other unfair trade practice

laws, or would create a monopolistic liquor distribution

system in this Commonwealth.

(iii) The board is authorized to promulgate

regulations providing for the procedure for hearings

under subparagraph (ii).

(16) A wine and spirits wholesale licensee shall make

the licensed premises, all of the facilities involved in the

wholesale operation and all of the business and financial

20200HB2547PN3831 - 55 -

books and records of the wholesale operation available at any

time for inspection and audit by the department, the board or

the enforcement bureau. The board shall promulgate

regulations regarding the records that a licensee must

maintain on the licensee's premises.

(17) A wine and spirits wholesale licensee shall

cooperate fully in an inquiry or investigation by the

department or the board or the enforcement bureau and provide

information requested by the department, the board or the

enforcement bureau.

(18) A wine and spirits wholesale licensee that is a

corporation, a limited liability company, limited

partnership, partnership, association or other legal entity

must be organized under the laws of this Commonwealth.

(19) A wine and spirits wholesale licensee that is a

natural person must be a citizen of the United States and a

resident of this Commonwealth.

fails to abide by a condition contained in the licensee's

statement of conditions or commits a violation of this act or

Federal or State law:

(1) shall be subject to citation by the enforcement

bureau; and

(2) may be subject to:

(i) a fine, suspension or license revocation;

(ii) nonrenewal of the license or revocation of

temporary operating authority; or

(iii) other penalties authorized under sections 471

and 494.

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

20200HB2547PN3831 - 56 -

The department, in consultation with the board, shall

establish procedures and standards governing the relationship

between wine and spirits wholesale licensees and manufacturers

and the ability and terms upon which that relationship may be

terminated. The procedures and standards shall incorporate the

following principles:

(1) As follows:

(i) A manufacturer having a contract, including all

written or oral agreements, understandings or other

arrangements with a wine and spirits wholesale licensee

for the distribution in this Commonwealth of a brand of

liquor may terminate the distribution rights and transfer

the rights to another wine and spirits wholesale licensee

upon the voluntary agreement of both licensees.

(ii) If a voluntary termination and transfer occurs,

the manufacturer shall provide written notice to the

board indicating that affected wine and spirits wholesale

licensees have both agreed to the termination and

transfer. A copy of the notification to the board shall

be provided to both licensees.

(2) If a wine and spirits wholesale licensee does not

agree to the termination or transfer of its distribution

rights, the manufacturer may only terminate or transfer the

rights upon payment to the terminated licensee of the blended

brand valuation of the products for which the wine and

spirits wholesale licensee will no longer hold distribution

rights.

(3) A voluntary or involuntary termination and transfer

of the right to distribute the brand of liquor shall comply

with this section.

20200HB2547PN3831 - 57 -

Section 327-A. Transfer of brands of liquor.

(a) Prohibition.--No brand of liquor offered for sale in

this Commonwealth may be transferred to a different wine and

spirits wholesale licensee without prior approval from the

board.

(b) Transfer fee.--An application to the board to transfer

the right to distribute a brand of liquor shall be subject to an

application fee equal to 1% of the initial license fee

attributable to the brand of liquor or $1,000, whichever is

greater.

SUBARTICLE D

CLOSURE OF STATE LIQUOR STORES

AND ASSISTANCE FOR DISPLACED EMPLOYEES

Section 331-A. Closure of State liquor stores.

(a) Process for closure.--

(1) The board shall review the viability of a store

located within a county where the number of privately owned

and privately operated wine and spirits retail licenses plus

the number of grocery store licenses equal the number of

Heritage State Stores.

(2) Where the number of Heritage State Stores equals the

number of privately owned and privately operated wine and

spirits retail licenses plus the grocery store licenses, the

board shall provide a rationale to the department for the

continued operation or closure of a store located in a

county.

(3) A Heritage State Store designated for closure shall

cease operations within 60 days.

(4) Where the number of privately owned and privately

operated wine and spirits retail licenses plus the grocery

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store licenses exceed the number of Heritage State Stores by

a factor of two, the Heritage State Stores within a county

must close within six months.

(5) The board may not operate fewer than 100 Heritage

State Stores within this Commonwealth.

(b) Disposition of liquor.--The board shall arrange for the

disposition of the liquor remaining in inventory at a designated

store. In order to effectuate this subsection, the board may, in

consultation with the department, do any of the following:

(1) Coordinate with the vendor of record for the

repurchase products by the vendor of record.

(2) Sell products to newly licensed wine and spirits

retail licensees.

(3) Transport products for sale at another operating

State liquor store.

department, in consultation with the board, shall establish a

procedure for the sale of the nonliquor inventory, property and

fixtures of all State liquor stores consistent with 62 Pa.C.S.

Ch. 15 (relating to supply management). Wine and spirits retail

licensees shall have the opportunity to bid on the items to be

sold or otherwise participate in the sale. All proceeds from the

sales shall be deposited into The State Stores Fund.

(d) Pennsylvania Liquor Store leases.--The board shall

provide immediate notice to the lessor upon receipt of the

department's notice to close a designated Pennsylvania Liquor

Store.

(e) Hiring restrictions.--

(1) Notwithstanding any other provision of this act, the

board may not hire additional salaried or wage employees for

20200HB2547PN3831 - 59 -

the purpose of staffing the board's retail operations,

including the board's bureau of marketing and retail

operations, unless explicitly authorized by the department.

(2) Paragraph (1) shall not prohibit the board from

hiring personnel, with approval from the department, to

adequately staff the board's Bureau of Supply Chain for the

purpose of transitioning its retail and wholesale operations

to licensees of this article.

Section 331.1-A. Licensee service centers.

The board shall work collaboratively with the department to

ensure that an adequate number of stores designated for sales to

licensees or licensee service center locations are maintained

during the retail and wholesale divestiture process so that

licensees are able to timely acquire products sold by the board.

Section 332-A. Transition assistance committee.

(a) Formation.--

(1) On the effective date of this section, the

department shall designate individuals to serve on a

committee for the purpose of managing the staffing transition

and displacement of employees during the divestiture process.

(2) The committee, which shall be chaired by a

representative from the department, shall involve the

participation of the Office of Administration, the

commission, the Department of Labor and Industry and the

board's bureau of human resources, to ensure a coordinated

approach to allocating personnel and assisting displaced

employees during the transition to find an appropriate

position.

(3) The department shall contract with advisors

necessary to assist the department and the board in

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administering the duties under paragraph (2). The contracts

shall not be subject to the provisions of 62 Pa.C.S. Ch. 5

(relating to source selection and contract formation).

(b) Counseling and placement.--The committee shall

coordinate with the Office of Administration to provide

counseling and other general assistance to employees of the

board who are displaced to transition the employees to other

employment in either the public or private sector.

under this subarticle shall be paid for out of the proceeds from

the divestiture of the board's wholesale and retail operations.

Section 333-A. Preference in public employment hiring.

(a) Civil service examinations.--

(1) A displaced employee who successfully passes a civil

service appointment examination shall be marked or graded an

additional three points above the mark or grade credited for

the examination if all of the following apply:

(i) The examination is for a paid position

administered under 71 Pa.C.S. Pt. III (relating to civil

service reform), and in the classified service existing

under the commission's jurisdiction.

(ii) The employee establishes the qualifications

required by law for appointment to the position.

(2) The total mark or grade, including the mark-up under

paragraph (1), obtained by the displaced employee shall

represent the final mark or grade of the employee and shall

determine the employee's standing on any eligibility list

certified or furnished to the appointing power.

(3) The three additional points awarded under paragraph

(1) shall be in addition to any points that shall be afforded

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to a veteran meeting the requirements of 51 Pa.C.S. § 7103

(relating to additional points in grading civil service

examinations).

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

to certify a list of displaced employees under subsection (a).

Placement on the list by the board shall establish eligibility

for the preference granted under subsection (a).

does not require a civil service examination, a displaced

employee, possessing the requisite qualifications and who is

eligible for appointment to a paid State position in offices

under the Governor's jurisdiction within the executive branch

shall be given a preference in the appointment by the appointing

authority over nonveteran candidates.

(d) (Reserved).

(e) Eligibility.--

(1) A displaced employee's eligibility for the mark-up

provided under subsection (a) and for the preference for

noncivil service positions provided under subsection (c)

shall cease upon the occurrence of one of the following:

(i) The displaced employee's appointment or hiring

into a position in the classified service existing under

the commission's jurisdiction or into a paid State

position where no civil service examination is required.

(ii) Four years elapsing from the effective date of

this section.

(2) In order to be eligible for the mark-up provided

under subsection (a) and for the preference for noncivil

service positions provided under subsection (c), a displaced

worker must be terminated as a sole and direct result of the

20200HB2547PN3831 - 62 -

decision to cease wholesale and retail operations under this

article and must work until the final day set by the board

for that employee's job function.

Section 334-A. Career training and postsecondary education

grant eligibility.

(a) Eligibility.--A displaced employee shall be eligible for

a two-year grant for attending a program of instruction at an

institution of higher education, including career training and

adult education courses of study, within one year of the date of

displacement from State service in the following amount:

(1) two thousand dollars per year for attendance on a

full-time basis; or

(2) one thousand dollars per year for attendance on a

part-time basis.

(b) Certification.--The board shall certify the list of

displaced employees to the Pennsylvania Higher Education

Assistance Agency .

grant eligibility and shall pay the grant directly to the

institution of higher education attended by the displaced

employee in a manner consistent with the Pennsylvania Higher

Education Assistance Agency's regulations.

Section 335-A. Reemployment tax credit.

(a) Eligibility.--

(1) A displaced employee shall be eligible for a two-

year reemployment tax credit voucher in the amount of $2,000

per taxable year.

(2) The voucher under paragraph (1) shall be made

available to each displaced employee upon termination of

employment.

20200HB2547PN3831 - 63 -

(3) Each voucher under paragraph (1) shall be certified

by the board before the voucher is provided to the displaced

employee.

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

displaced employee to whom a voucher under paragraph (1) has

been provided.

(b) Transfer of voucher.--An employer in this Commonwealth

who employs a displaced employee on a full-time basis may, upon

transfer of the voucher from the employee to the employer, use

the voucher as a credit against the State tax liability of the

employer, if the employer can demonstrate the following:

(1) The employee for whom the tax credit is being sought

was displaced from the board within 12 months of being

employed by the employer.

(2) The former board employee has been employed by the

employer seeking the tax credit on a full-time basis for a

period not less than one year.

credit voucher to the Department of Revenue with the information

required under subsection (b) to claim a tax credit against the

employer's liability for a tax identified under subsection (d)

(2).

(d) Amount of credit.--

(1) An employer may claim a reemployment tax credit for

each job filled by a displaced employee of $2,000 per taxable

year for a maximum of two taxable years.

(2) An employer may apply the reemployment tax credit to

100% of the employer's:

(i) State corporate net income tax, capital stock

and franchise tax or the personal tax of a shareholder of

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the company if the company is a Pennsylvania S

corporation.

(ii) Insurance premiums tax, gross receipts tax,

bank and trust company shares tax, mutual thrift

institutions tax or title insurance companies shares tax.

(iii) Any combination of the taxes under

subparagraphs (i) and (ii).

(3) A displaced employee whose subsequent employment is

terminated with an employer and who has utilized the

reemployment tax credit voucher to claim a one-year $2,000

tax credit may transfer the voucher to a new employer who may

use the remaining $2,000 tax credit as a claim against the

employer's tax liability for taxes identified under paragraph

(2).

(4) The term of the reemployment tax credit voucher may

not exceed two years from the date the voucher is provided to

the qualified displaced employee.

Section 336-A. Protection of existing benefits.

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

deemed to affect:

(1) Pension benefits accrued prior to the date of

separation occurring as a sole and direct result of the

divestiture of the board's wholesale and retail operations

under this article.

(2) Payment of an accrued benefit derived from the terms

of a preexisting collective bargaining agreement payable upon

separation from employment.

(b) Collective bargaining.--As a result of the preferential

hiring benefits, the tax credit for subsequent employers and the

protection of benefits arising from an employee's pension or

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from a preexisting collective bargaining agreement under this

section, the board shall be deemed to have satisfied all

obligations to bargain over the impact of the decision to cease

wholesale and retail operations under this article that may

arise under the act of July 23, 1970 (P.L.563, No.195), known as

the Public Employe Relations Act.

regulation, ordinance or resolution of a political subdivision

regarding notice to displaced workers.

SUBARTICLE E

MISCELLANEOUS PROVISIONS

Section 341-A. License renewals.

(a) Renewal.--

(1) Wine and spirits licenses issued under this article

shall be subject to renewal every two years, with validation.

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

form provided by the board at least 30 days prior to the

expiration of the wine and spirits 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 article.

(3) A wine and spirits license for which a completed

renewal application and fee has been received by the board

shall continue to be valid until the board sends written

notification to the licensee that the board has denied the

renewal of the license.

(b) Fee.--

(1) A renewal fee of $1,000 shall be due upon

application for the renewal or validation of a wine and

spirits retail license.

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(2) A renewal fee of $5,000 shall be due upon

application for the renewal or validation of a wine and

spirits wholesale license.

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

the fee adequately recovers the costs associated with

investigating the renewal application.

Licensing may object to the renewal of licenses issued under

this article pursuant to the same authority granted under

section 470. Hearings and appeals arising from the objections

shall be conducted in accordance with section 464.

(d) Revocation of operating authority.--

(1) The board may revoke the operating authority of a

wine and spirits license issued under this article if the

board 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 any provision of this act;

(ii) has furnished the board with false or

misleading information; or

(iii) is no longer reputable or suitable for

licensure.

(2) If a wine and spirits license is revoked or not

renewed, the wine and spirits licensee's authorization to

conduct business as a wine and spirits licensee shall

immediately cease until the board notifies the licensee that

the operating authority has been reinstated.

(e) Affirmative duty.--Nothing under this section shall

relieve a wine and spirits licensee of the affirmative duty to

notify the board of changes relating to the status of its

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license or to other information contained in the application

materials filed with the board.

Section 342-A. Revocation, suspension and fines.

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

shall have the authority to issue a citation against a wine and

spirits licensee in the same manner as under section 471. The

enforcement bureau may issue a citation to the licensee based on

the following conduct:

(1) The licensee violated any of the following:

(i) A provision of this act.

(ii) The regulations of the board.

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

(iv) Any other law of this Commonwealth.

(2) The licensee knowingly presented to the board false,

incomplete or misleading information.

(3) The licensee pleaded guilty, entered a plea of nolo

contendere or has been found guilty of a felony by a judge or

jury in a Federal or State court.

(4) The licensee failed to operate the business or to

provide a reasonable level of consumer service.

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

(b) Administrative law judge.--Enforcement matters shall be

heard by an administrative law judge in the same manner as under

section 471. The administrative law judge may issue a fine and

either suspend or revoke the license. Appeals may be taken in

the same manner as under section 471.

premises if any of the following apply:

(1) The wine and spirits license applicable to that

premises has been suspended or revoked or has expired.

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(2) The operating authority for the wine and spirits

license has been revoked.

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

revoked, forfeited or surrendered under this article, the board

shall conduct a sale of the license, consistent with this

article.

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

(a) Prohibition.--No person may sell, assign or transfer

their interest in a wine and spirits license granted under this

article to another person until the board has received,

investigated and approved a transfer application. If the license

is a wine and spirits retail license, the wine and spirits

licensee must have been in continuous operation for at least one

year prior to the date of the application to transfer the

license.

(b) Compliance.--Any person to whom a wine and spirits

license is transferred must comply with this article prior to

the transfer of the license.

(1) The transfer of a wine and spirits license shall be

subject to a transfer fee equal to 1% of the license fee paid

for the license and shall be paid as a condition of the

transfer of the license.

(2) The transfer fee applicable to the transfer of

brands of liquor under section 327-A(b) shall not apply to

the transfer of a wine and spirits wholesale license.

(3) A wine and spirits retail license may not be

transferred to another location outside the county in which

the wine and spirits retail license was initially issued.

(d) Change of control.--For the purposes of this section, a

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change of control of a wine and spirits wholesale or retail

licensee shall be deemed to be a sale, assignment or transfer of

a wine and spirits wholesale or retail license. A wine and

spirits wholesale or retail licensee must notify the board

immediately upon becoming aware of a proposed or contemplated

change of control.

Section 344-A. The State Stores Fund.

All fees, assessments, bid amounts or other charges paid by

wine and spirits license applicants or licensees shall be paid

or transferred into a restricted account which is hereby

established in The State Stores Fund. Funds in the restricted

account shall be used for programs under Subarticle D and any

other use specified by statute. Any fines collected by the

administrative law judge from the licensees shall be remitted to

the enforcement bureau for continued enforcement efforts.

Section 345-A. Return of fee or bid.

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

and spirits wholesale license fee paid by a wine and spirits

wholesale licensee under section 324-A(d)(1) shall be returned

if this article is amended or otherwise altered by an act of the

General Assembly within five years of the effective date of this

section to change provisions relating to the loss of rights to

wholesale brands of liquors under section 326-A.

(b) Wine and spirits retail licensee fee or bid amount.--The

entire wine and spirits retail license fee or retail bid amount

paid by a wine and spirits retail licensee shall be returned if

this article is amended or otherwise altered by an act of the

General Assembly within five years of the effective date of this

section to authorize additional wine and spirits retail licenses

under section 311-A.

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Section 9. Section 401(a) of the act is amended to read:

Section 401. Authority to Issue Liquor Licenses to Hotels,

Restaurants and Clubs.--(a) Subject to the provisions of this

act and regulations promulgated under this act, the board shall

have authority to issue a retail liquor license for any premises

kept or operated by a hotel, restaurant or club and specified in

the license entitling the hotel, restaurant or club to purchase

liquor from a Pennsylvania Liquor Store or a wine and spirits

wholesale licensee and to keep on the premises such liquor and,

subject to the provisions of this act and the regulations made

thereunder, to sell the same and also malt or brewed beverages

to guests, patrons or members for consumption on the hotel,

restaurant or club premises. Such licensees, other than clubs,

shall be permitted to sell malt or brewed beverages for

consumption off the premises where sold in quantities of not

more than one hundred ninety-two fluid ounces in a single sale

to one person as provided for in section 407 unless the licensee

acquires a retail package reform permit issued by the board

under section 407(c). Such licenses shall be known as hotel

liquor licenses, restaurant liquor licenses and club liquor

licenses, respectively. No person who holds any public office

that involves the duty to enforce any of the penal laws of the

United States, this Commonwealth or of any political subdivision

of this Commonwealth may have any interest in a hotel or

restaurant liquor license. This prohibition applies to anyone

with arrest authority, including, but not limited to, United

States attorneys, State attorneys general, district attorneys,

sheriffs and police officers. This prohibition shall also apply

to magisterial district judges, judges or any other individuals

who can impose a criminal sentence. This prohibition does not

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apply to members of the General Assembly, township supervisors,

city councilpersons, mayors without arrest authority and any

other public official who does not have the ability to arrest or

the ability to impose a criminal sentence. This section does not

apply if the proposed premises are located outside the

jurisdiction of the individual in question.

* * *

Section 10. The act is amended by adding sections to read:

Section 401.1. Authority to Issue Liquor Licenses to Grocery

Stores.--(a) Subject to the provisions of this act and

regulations promulgated under this act, the board shall have

authority to issue a retail liquor license for any premises kept

or operated by a grocery store and specified in the license

entitling the grocery store to:

(1) Purchase wine from a Pennsylvania liquor wholesale

licensee , a wine and spirits store and any person licensed by

the board as a producer of wine and subject to section 505.2.

(2) Keep on the premises such wine and, subject to the

provisions of this act and the regulations made hereunder, to

sell the same to patrons for consumption off the licensed

premises.

(b) Licenses issued under this section shall be known as

grocery store retail liquor licenses.

the duty to enforce any of the penal laws of the United States,

this Commonwealth or of any political subdivision of this

Commonwealth may have any interest in a grocery store retail

liquor license. This prohibition applies to an individual with

arrest authority, including, but not limited to, United States

attorneys, State attorneys general, district attorneys, sheriffs

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and police officers. This prohibition shall also apply to

magisterial district judges, judges or any other individuals who

may impose a criminal sentence. This prohibition does not apply

to members of the General Assembly, township supervisors, city

councilpersons, mayors without arrest authority and any other

public official who does not have the ability to arrest or the

ability to impose a criminal sentence. An individual subject to

this prohibition may have an interest in a grocery store retail

liquor license if the proposed premises are located outside the

jurisdiction of the individual.

Section 403.1. Applications for Grocery Store Retail

License.--(a) Every applicant for a grocery store retail

license or for the transfer of an existing license to another

premises not then licensed shall file a written application with

the board in such form and containing such information as the

board shall from time to time prescribe, which shall be

accompanied by a filing fee and an annual license fee as set

forth in section 406.1 of this act. Every such application shall

contain a description of that part of the grocery store for

which the applicant desires a license and shall set forth such

other material information, description or plan of that part of

the grocery store where it is proposed to keep and sell liquor

as may be required by the regulations of the board. The

descriptions, information and plans referred to in this

subsection shall show the grocery store, or the proposed

location for the construction of a grocery store, at the time

the application is made, and shall show any alterations proposed

to be made thereto, or the new building proposed to be

constructed after the approval by the board of the application

for a license or for the transfer of an existing license to

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another premises not then licensed. No physical alterations,

improvements or changes shall be required to be made to any

grocery store, nor shall any new building for any such purpose

be required to be constructed until approval of the application

for license or for the transfer of an existing license to

another premises not then licensed by the board. After approval

of the application, the licensee shall make the physical

alterations, improvements and changes to the licensed premises,

or shall construct the new building in the manner specified by

the board at the time of approval, and the licensee shall not

transact any business under the license until the board has

approved the completed physical alterations, improvements and

changes to the licensed premises, or the completed construction

of the new building as conforming to the specifications required

by the board at the time of issuance or transfer of the license,

and is satisfied that the establishment is a grocery store as

defined by this act. The board may require that all such

alterations or construction or conformity to definition be

completed within six months from the time of issuance or

transfer of the license. Failure to comply with these

requirements shall be considered cause for revocation of the

license. No such license shall be transferable between the time

of issuance or transfer of the license and the approval of the

completed alterations or construction by the board and full

compliance by the licensee with the requirements of this act

unless full compliance is impossible for reasons beyond the

licensee's control, in which event, the license may be

transferred by the board as provided in this act.

(b) If the applicant is a natural person, the applicant's

application must show that the applicant is a citizen of the

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United States and has been a resident of this Commonwealth for

at least two years immediately preceding the applicant's

application.

show that the corporation was created under the laws of this

Commonwealth or holds a certificate of authority to transact

business in this Commonwealth, that all officers, directors and

stockholders are citizens of the United States and that the

manager of the grocery store retail license is a citizen of the

United States.

(d) Each application shall be signed and verified by oath or

affirmation by the owner, if a natural person, or, in the case

of an association, by a member or partner thereof, or, in the

case of a corporation, by an executive officer thereof or any

person specifically authorized by the corporation to sign the

application, to which shall be attached written evidence of his

authority.

(e) Every applicant for a new license or for the transfer of

an existing license shall post, for a period of at least thirty

days beginning with the day the application is filed with the

board, in a conspicuous place on the outside of the premises or

at the proposed new location for which the license is applied, a

notice of such application. The notice shall be in such form, be

of such size and contain such provisions as the board may

require by its regulations. Proof of the posting of such notice

shall be filed with the board. The posting requirement imposed

by this subsection shall not apply to license applications

submitted for public venues.

(f) If any false statement is intentionally made in any part

of the application, the affiant shall be deemed guilty of a

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misdemeanor and, upon conviction, shall be subject to the

penalties provided by this article.

(g) Upon receipt of an application for a new license or

transfer of an existing license to a new location, the board

shall immediately notify, in writing, the municipality in which

the premises proposed to be licensed are located.

Section 11. Section 404(a) of the act is amended to read:

Section 404. Issuance, Transfer or Extension of Hotel,

Restaurant and Club Liquor Licenses.--(a) Upon receipt of the

application and the proper fees, and upon being satisfied of the

truth of the statements in the application that the applicant

and management company or companies, if any, are the only

persons in any manner pecuniarily interested in the business so

asked to be licensed and that no other person will be in any

manner pecuniarily interested therein during the continuance of

the license, except as hereinafter permitted, and that the

applicant is a person of good repute, that the premises applied

for meet all the requirements of this act and the regulations of

the board, that the applicant seeks a license for a hotel,

restaurant or club, as defined in this act, and that the

issuance of such license is not prohibited by any of the

provisions of this act, the board shall, in the case of a hotel

or restaurant, grant and issue to the applicant a liquor

license, and in the case of a club may, in its discretion, issue

or refuse a license: Provided, however, That in the case of any

new license or the transfer of any license to a new location or

the extension of an existing license to cover an additional area

the board may, in its discretion, grant or refuse such new

license, transfer or extension if such place proposed to be

licensed is within three hundred feet of any church, hospital,

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charitable institution, school, or public playground, or if such

new license, transfer or extension is applied for a place which

is within two hundred feet of any other premises which is

licensed by the board: And provided further, That the board's

authority to refuse to grant a license because of its proximity

to a church, hospital, charitable institution, public playground

or other licensed premises shall not be applicable to license

applications submitted for public venues or performing arts

facilities: And provided further, That the board shall refuse

any application for a new license, the transfer of any license

to a new location or the extension of an existing license to

cover an additional area if, in the board's opinion, such new

license, transfer or extension would be detrimental to the

welfare, health, peace and morals of the inhabitants of the

neighborhood within a radius of five hundred feet of the place

proposed to be licensed: And provided further, That the board

shall have the discretion to refuse a license to any person or

to any corporation, partnership or association if such person,

or any officer or director of such corporation, or any member or

partner of such partnership or association shall have been

convicted or found guilty of a felony within a period of five

years immediately preceding the date of application for the said

license. [The board shall not license the area where liquid

fuels or oil is sold. No sales of liquid fuels or oil may be

made from a licensee's licensed premises. A licensed premises

may not have an interior connection with a location that sells

liquid fuels or oil unless it first receives permission from the

board for the interior connection. The approval shall be

required regardless of whether the licensee or another party is

the entity selling the liquid fuels or oil.] The board may enter

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into an agreement with the applicant concerning additional

restrictions on the license in question. If the board and the

applicant enter into such an agreement, such agreement shall be

binding on the applicant. Failure by the applicant to adhere to

the agreement will be sufficient cause to form the basis for a

citation under section 471 and for the nonrenewal of the license

under section 470. If the board enters into an agreement with an

applicant concerning additional restrictions, those restrictions

shall be binding on subsequent holders of the license until the

license is transferred to a new location or until the board

enters into a subsequent agreement removing those restrictions.

If the application in question involves a location previously

licensed by the board, then any restrictions imposed by the

board on the previous license at that location shall be binding

on the applicant unless the board enters into a new agreement

rescinding those restrictions. The board may, in its discretion,

refuse an application for an economic development license under

section 461(b.1) or an application for an intermunicipal

transfer of a license if the board receives a protest from the

governing body of the receiving municipality. The receiving

municipality of an intermunicipal transfer or an economic

development license under section 461(b.1) may file a protest

against the transfer of a license into its municipality, and the

receiving municipality shall have standing in a hearing to

present testimony in support of or against the issuance or

transfer of a license. Upon any opening in any quota, an

application for a new license shall only be filed with the board

for a period of six months following said opening.

* * *

Section 12. The act is amended by adding a section to read:

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Section 404.1. Issuance or Transfer of Grocery Store Liquor

Licenses.--Upon receipt of the application and the proper fees,

and upon being satisfied of the truth of the statements in the

application that the applicant is the only person in any manner

pecuniarily interested in the business so asked to be licensed

and that no other person will be in any manner pecuniarily

interested therein during the continuance of the license, except

as hereinafter permitted, and that the applicant is a person of

good repute, that the premises applied for meets all the

requirements of this act and the regulations of the board, that

the applicant seeks a license for a grocery store, as defined in

this act, and that the issuance of such license is not

prohibited by any of the provisions of this act, the board shall

grant and issue to the applicant a liquor license: Provided,

however, That in the case of any new license or the transfer of

any license to a new location the board may, in its discretion,

grant or refuse such new license, transfer or extension if such

place proposed to be licensed is within three hundred feet of

any church, hospital, charitable institution, school or public

playground, or if such new license, transfer or extension is

applied for a place that is within two hundred feet of any other

premises that is licensed by the board: And provided further,

That the board shall refuse any application for a new license,

the transfer of any license to a new location or the extension

of an existing license to cover an additional area if, in the

board's opinion, such new license, transfer or extension would

be detrimental to the welfare, health, peace and morals of the

inhabitants of the neighborhood within a radius of five hundred

feet of the place proposed to be licensed: And provided further,

That the board shall have the discretion to refuse a license to

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any person or to any corporation, partnership or association if

such person, or any officer or director of such corporation, or

any member or partner of such partnership or association shall

have been convicted or found guilty of a felony within a period

of five years immediately preceding the date of application for

the said license. The board may enter into an agreement with the

applicant concerning additional restrictions on the license in

question. If the board and the applicant enter into such an

agreement, such agreement shall be binding on the applicant.

Failure by the applicant to adhere to the agreement will be

sufficient cause to form the basis for a citation under section

471 and for the nonrenewal of the license under section 470. If

the board enters into an agreement with an applicant concerning

additional restrictions, those restrictions shall be binding on

subsequent holders of the license until the license is

transferred to a new location or until the board enters into a

subsequent agreement removing those restrictions. If the

application in question involves a location previously licensed

by the board, any restrictions imposed by the board on the

previous license at that location shall be binding on the

applicant unless the board enters into a new agreement

rescinding those restrictions.

Section 13. Section 406(e)(1) of the act is amended and the

subsection is amended by adding a paragraph to read:

Section 406. Sales by Liquor Licensees; Restrictions.--* * *

(e) (1) The holder of a hotel license or the holder of a

restaurant license located in a hotel may allow persons to

transport liquor or malt or brewed beverages from the licensed

portion of the premises to the unlicensed portion of the

premises, so long as the liquor or malt or brewed beverages

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remain on the hotel property. In addition, a holder of a

restaurant or club license located on a golf course may sell,

furnish or give liquor or malt or brewed beverages on the

unlicensed portion of the golf course so long as the liquor or

malt or brewed beverages remain on the restaurant, club or golf

course. The holder of a restaurant license located immediately

adjacent to and under the same roof of a bowling center may

allow persons to transport liquor or malt or brewed beverages

from the licensed portion of the premises to the unlicensed

portion of the premises, so long as the liquor or malt or brewed

beverages remain within the bowling center. In addition, the

holder of a hotel license or a restaurant license may allow

persons who have purchased but only partially consumed a bottle

of wine on the premises to remove the bottle from the premises

so long as the bottle was purchased in conjunction with a meal

which was consumed on the premises and so long as the bottle is

resealed. Notwithstanding this paragraph, the holder of a hotel

license or a restaurant license may sell up to six bottles of

wine for consumption off the licensed premises so long as the

bottles remain sealed and the holder has obtained a wine-to-go

permit as authorized under section 493(35). In addition, the

holder of a hotel license or a restaurant license may sell up to

one bottle of spirits for consumption off the licensed premises

so long as the bottle remains sealed and the holder has obtained

a spirits-to-go permit as authorized under section 493(39). For

purposes of this subsection, "wine" shall have the meaning given

to it under section 488(i). For purposes of this section and

section 432, "meal" shall mean food prepared on the premises,

sufficient to constitute breakfast, lunch or dinner; it shall

not mean a snack, such as pretzels, popcorn, chips or similar

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food.

* * *

(3) The holder of a restaurant license whose premises has an

interior connection to a grocery store may allow a purchase of

beer and wine for consumption off the premises to be paid for at

a point of sale other than a point of sale located on the

licensed premises. The purchase of beer or wine may not occur at

a point of sale where the customer scans his own purchases. All

sales of beer and wine shall occur at a point of sale manned by

a sales clerk who is at least eighteen years of age.

* * *

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

Section 406.2. Sales by Grocery Store Retail Licensees and

Restrictions.--(a) Every grocery store retail licensee may sell

wine for consumption off the licensed premises from any location

within the licensed premises. Educational information regarding

the types of products sold by the grocery store retail licensee

and regarding the responsible consumption of alcohol shall be

displayed and readily available wherever wine is displayed.

Grocery store retail licensees may display the alcohol products

they offer for sale on shelving units and systems, and in or on

refrigerated cases and equipment, within the discretion of the

licensee, provided that such displays are not designed to

attract minors and, provided further, that the manner and method

of display allows access by all customers, including the

physically dependent.

(b) Grocery store retail licensees may sell no more than

twelve bottles of wine in a single sale for consumption off the

licensed premises.

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membership fee in order for customers to make purchases from the

grocery store.

(d) Sales by grocery store retail licensees shall be made

via grocery store registers, well designated with signage and

manned by sales clerks who are at least eighteen years of age

and have been trained in the Responsible Alcohol Management

Program and utilizing a transaction scan device for any

purchases. At no time shall the purchase of wine occur at a

point of sale where the customer scans his own purchases. All

sales of wine shall occur at a point of sale manned by a sales

clerk at all times.

(e) Grocery store retail licensees may store alcohol in a

storage area or storage areas not accessible to the public

provided such storage areas are:

(1) locked at all times when not being accessed by the

licensees' employes; and

(2) identified by dimensions and location on forms submitted

in advance to the board.

(f) Grocery store retail licensees may sell wine from seven

o'clock antemeridian until eleven o'clock postmeridian every

day, except Sunday.

(g) Grocery store retail licensees may sell wine from nine

o'clock antemeridian until eleven o'clock postmeridian on

Sundays upon submission to the board of a Sunday sales permit

application and fee of one thousand five hundred dollars

($1,500) per year.

(h) Grocery store retail licensees shall be permitted to

hold:

(1) Tastings at any location in the grocery store, provided

the tastings are in compliance with the provisions and

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regulations regarding tastings held on restaurant licensed

premises.

(2) Educational classes, including cooking classes, how to

classes, seminars and the like, regarding the proper or

recommended use, consumption, identification, pairing,

appellation, aging, storage, characteristics, service,

presentation and the like, of the alcohol products that they

offer for sale, during which classes the incidental consumption

of alcohol by registered participants of lawful age shall be

permitted; such classes may be free of charge to participants or

may be at fee.

(i) Grocery store retail licensees shall be permitted to

hold restaurant licenses issued for areas within the same

building for which the grocery store retail license has been

issued or for a different building. Grocery store retail

licenses and restaurant licenses issued for areas within the

same grocery stores may be issued for areas that are adjacent,

abutting and contiguous and the board shall approve interior

connections between such areas. In the event that a grocery

store retail license and a restaurant license are issued for the

same grocery store, wine may only be sold for off-premises

consumption in the area licensed for grocery store retail sales.

(j) Grocery store retail licensees may not sell wine at a

price less than its underlying cost.

(k) Grocery store retail licensees shall buy wine sold

pursuant to their grocery store retail license from the board, a

wine and spirits wholesale licensee or a winery licensed by the

Commonwealth.

(l) All products purchased by grocery store retail licensees

and all products purchased by restaurant and eating place

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licensees owned by the same individual or company must be

separately purchased from the board or a wine and spirits

wholesale licensee as required by this act and may not be

purchased from another retail licensee. Separate records must be

maintained for all purchases and sales by all grocery store

retail licensees and restaurant or eating place licensees,

whether or not located within the same building or owned by the

same individual or company.

(m) The following shall apply:

(1) The retail license fee payable one time upon application

to the board for issuance of the license, shall be as follows:

(i) For grocery stores located in counties of the first

class or counties of the second class, one hundred sixty-five

thousand dollars ($165,000).

(ii) For grocery stores located in counties of the second

class A or counties of the third class, one hundred eighty-seven

thousand five hundred dollars ($187,500).

(iii) For grocery stores located in counties of the fourth

class or fifth class, one hundred forty-two thousand five

hundred dollars ($142,500).

(iv) For grocery stores located in counties of the sixth

class or seventh class, one hundred twenty thousand dollars

($120,000).

(v) For grocery stores located in counties of the eighth

class, ninety-seven thousand five hundred dollars ($97,500).

(2) Grocery store retail licenses shall be renewed every two

years. The renewal fee submitted each year shall be:

(i) For grocery stores located in counties of the fifth

class, counties of the sixth class, counties of the seventh

class or counties of the eighth class, two thousand dollars

20200HB2547PN3831 - 85 -

($2,000).

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

class, counties of the second class, counties of the second

class A, counties of the third class or counties of the fourth

class, four thousand dollars ($4,000).

(3) The board may accept applications to transfer grocery

store retail licenses to new locations, for the same owner, upon

submission of transfer applications and fees submitted to the

board in the following amounts:

(i) For transfers to counties of the fifth class, counties

of the sixth class, counties of the seventh class or counties of

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

(ii) For transfers to counties of the first class, counties

of the second class, counties of the second class A, counties of

the third class or counties of the fourth class, ten thousand

dollars ($10,000).

(n) (1) Grocery store licensees selling wine for off-

premises consumption shall be required to obtain a sales tax

license from the Department of Revenue.

(2) A grocery store licensee selling wine for off-premises

consumption shall be considered a Pennsylvania Liquor Store for

purposes of collecting and remitting taxes under Article II of

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

Code of 1971." A grocery store licensee selling wine for off-

premises consumption may not be required to pay the sales tax

when making wholesale purchases but shall collect the tax at

retail.

Section 15. Sections 407(a) of the act is amended and the

section is amended by adding a subsection to read:

Section 407. Sale of Malt or Brewed Beverages by Liquor

20200HB2547PN3831 - 86 -

Licensees.--(a) Every liquor license issued to a hotel,

restaurant, club, or a railroad, pullman or steamship company

under this subdivision (A) for the sale of liquor shall

authorize the licensee to sell malt or brewed beverages at the

same places but subject to the same restrictions and penalties

as apply to sales of liquor, except that licensees other than

clubs may sell malt or brewed beverages for consumption off the

premises where sold in quantities of not more than one hundred

ninety-two fluid ounces in a single sale to one person unless

the licensee acquires a retail package permit issued by the

board under subsection (c). The sales may be made in either open

or closed containers, Provided, however, That a municipality may

adopt an ordinance restricting open containers in public places.

No licensee under this subdivision (A) shall at the same time be

the holder of any other class of license, except a retail

dispenser's license authorizing the sale of malt or brewed

beverages only.

* * *

to a restaurant, hotel or retail dispenser licensee that applies

and pays the requisite fee for use at the same place that the

restaurant, hotel or retail dispenser maintains for the sale of

malt or brewed beverages. The permit must allow the holder to

sell in a single transaction not more than twenty-four original

containers totaling not more than three hundred eighty-four

fluid ounces of malt and brewed beverages so long as the

original containers are in a package prepared for sale of

distribution by the manufacturer of not more than twelve

original containers.

(2) For the permit issued under paragraph (1), the board

20200HB2547PN3831 - 87 -

shall require an annual fee of five hundred dollars ($500).

Section 16. Sections 408.12(g) and (h) and 410(e) of the act

are amended to read:

Section 408.12. Wine and Spirits Auction Permits.--* * *

(g) Any wine and spirits sold under this section shall be

purchased from a Pennsylvania Liquor Store, a wine and spirits

retail licensee, a Pennsylvania limited winery, limited

distillery or any seller authorized to sell wine or spirits by

the bottle or case in this Commonwealth, including a grocery

store licensee, restaurant liquor licensee or hotel liquor

licensee, or shall be donated by a person who is neither a

licensee nor a permittee who has legally acquired the wine or

spirits and legally possesses it in this Commonwealth.

(h) If any wine or spirits sold under this section is

purchased from a seller other than a Pennsylvania Liquor Store,

wine and spirits retail licensee, grocery store licensee,

restaurant liquor licensee, hotel liquor licensee or [a]

Pennsylvania limited winery or limited distillery, the permittee

shall provide thirty days' notice to the board of its intent to

purchase such wine or spirits. The notice shall include a

description of the wine or spirits to be purchased, the quantity

to be purchased, the name of the seller and any other

information which the board may require. The permittee shall

comply with all board regulations regarding taxes and fees.

* * *

Section 410. Liquor Importers' Licenses; Fees; Privileges;

Restrictions.--* * *

(e) Importers' licenses shall permit the holders thereof to

bring or import liquor from other states, foreign countries, or

insular possessions of the United States, and purchase liquor

20200HB2547PN3831 - 88 -

from manufacturers located within this Commonwealth, to be sold

outside of this Commonwealth or to Pennsylvania Liquor Stores or

wine and spirits wholesale licensees within this Commonwealth,

or when in original containers of ten gallons or greater

capacity, to licensed manufacturers within this Commonwealth.

All importations of liquor into Pennsylvania by the licensed

importer shall be consigned to the board or the principal place

of business or authorized place of storage maintained by the

licensee or a wine and spirits wholesale licensee.

* * *

Section 17. Section 411 of the act is amended by adding a

subsection to read:

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

(g) (1) Notwithstanding any other provision of law, a

manufacturer or licensee and its officers, directors,

shareholders, servants, agents or employes may contribute, and a

manufacturer or licensee and its officers, directors,

shareholders, servants, agents or employes may accept moneys or

other things of value solely for the administration of a

Responsible Alcohol Management Training Program for alcohol

service personnel as provided for under section 471.1 of this

act. The moneys or other things of value may be provided by or

to a manufacturer or licensee and its officers, directors,

shareholders, servants, agents or employes directly or by or to

a trade organization consisting, in whole or in part, of a group

of licensees.

(2) The manufacturer, licensee and trade organization

associated with the person providing the moneys or other things

of value must keep a record of the value of the moneys or other

things of value provided, the date provided and the entity to

20200HB2547PN3831 - 89 -

whom it was provided, as part of the records required under

section 493(12) of this act.

(3) The manufacturer, licensee and trade organization

associated with the person receiving moneys or other things of

value must keep a record of the value of the moneys or other

things of value used, as part of the records required under

section 493(12) of this act.

Section 18. Section 431(b) of the act is amended to read:

Section 431. Malt and Brewed Beverages Manufacturers',

Distributors' and Importing Distributors' Licenses.--* * *

(b) The board shall issue to any reputable person who

applies therefor, and pays the license fee hereinafter

prescribed, a distributor's or importing distributor's license

for the place which such person desires to maintain for the sale

of malt or brewed beverages, not for consumption on the premises

where sold, and in quantities of not less than a case or

original containers containing one hundred twenty-eight ounces

or more which may be sold separately as prepared for the market

by the manufacturer at the place of manufacture. In addition, a

distributor license holder may sell malt or brewed beverages in

any amount to a person not licensed by the board for off-

premises consumption. The sales shall not be required to be in

the package configuration designated by the manufacturer and may

be sold in refillable growlers. The board shall have the

discretion to refuse a license to any person or to any

corporation, partnership or association if such person, or any

officer or director of such corporation, or any member or

partner of such partnership or association shall have been

convicted or found guilty of a felony within a period of five

years immediately preceding the date of application for the said

20200HB2547PN3831 - 90 -

license: And provided further, That, in the case of any new

license or the transfer of any license to a new location, the

board may, in its discretion, grant or refuse such new license

or transfer if such place proposed to be licensed is within

three hundred feet of any church, hospital, charitable

institution, school or public playground, or if such new license

or transfer is applied for a place which is within two hundred

feet of any other premises which is licensed by the board: And

provided further, That the board shall refuse any application

for a new license or the transfer of any license to a new

location if, in the board's opinion, such new license or

transfer would be detrimental to the welfare, health, peace and

morals of the inhabitants of the neighborhood within a radius of

five hundred feet of the place proposed to be licensed. The

board shall not license the area where liquid fuels or oil is

sold. No sales of liquid fuels or oil may be made from a

licensee's licensed premises. A licensed premises may not have

an interior connection with a location that sells liquid fuels

or oil unless it first receives permission from the board for

the interior connection. The approval shall be required

regardless of whether the licensee or another party is the

entity selling the liquid fuels or oil. The board may enter into

an agreement with the applicant concerning additional

restrictions on the license in question. If the board and the

applicant enter into such an agreement, such agreement shall be

binding on the applicant. Failure by the applicant to adhere to

the agreement will be sufficient cause to form the basis for a

citation under section 471 and for the nonrenewal of the license

under section 470. If the board enters into an agreement with an

applicant concerning additional restrictions, those restrictions

20200HB2547PN3831 - 91 -

shall be binding on subsequent holders of the license until the

license is transferred to a new location or until the board

enters into a subsequent agreement removing those restrictions.

If the application in question involves a location previously

licensed by the board, then any restrictions imposed by the

board on the previous license at that location shall be binding

on the applicant unless the board enters into a new agreement

rescinding those restrictions. The board shall require notice to

be posted on the property or premises upon which the licensee or

proposed licensee will engage in sales of malt or brewed

beverages. This notice shall be similar to the notice required

of hotel, restaurant and club liquor licensees.

Except as hereinafter provided, such license shall authorize

the holder thereof to sell or deliver malt or brewed beverages

in quantities above specified anywhere within the Commonwealth

of Pennsylvania, which, in the case of distributors, have been

purchased only from persons licensed under this act as

manufacturers or importing distributors, and in the case of

importing distributors, have been purchased from manufacturers

or persons outside this Commonwealth engaged in the legal sale

of malt or brewed beverages or from manufacturers or importing

distributors licensed under this article. If the holder of a

distributor license applies for and receives a wine and spirits

retail license issued pursuant to Article III-A, that

distributor shall be authorized to sell wine and/or spirits on

the same premises where malt or brewed beverages are sold, and

if a distributor licensee applies for and receives a distributor

package reform permit issued pursuant to section 431.2, that

distributor shall be authorized to sell malt or brewed beverages

in quantities enumerated in section 431.2. In the case of an

20200HB2547PN3831 - 92 -

importing distributor, the holder of such a license shall be

authorized to store and repackage malt or brewed beverages owned

by a manufacturer at a segregated portion of a warehouse or

other storage facility authorized by section 441(d) and operated

by the importing distributor within its appointed territory and

deliver such beverages to another importing distributor who has

been granted distribution rights by the manufacturer as provided

herein. The importing distributor shall be permitted to receive

a fee from the manufacturer for any related storage, repackaging

or delivery services. In the case of a bailee for hire hired by

a manufacturer, the holder of such a permit shall be authorized:

to receive, store and repackage malt or brewed beverages

produced by that manufacturer for sale by that manufacturer to

importing distributors to whom that manufacturer has given

distribution rights pursuant to this subsection or to purchasers

outside this Commonwealth for delivery outside this

Commonwealth; or to ship to that manufacturer's storage

facilities outside this Commonwealth. The bailee for hire shall

be permitted to receive a fee from the manufacturer for any

related storage, repackaging or delivery services. The bailee

for hire shall, as required in Article V of this act, keep

complete and accurate records of all transactions, inventory,

receipts and shipments and make all records and the licensed

areas available for inspection by the board and for the

Pennsylvania State Police, Bureau of Liquor Control Enforcement,

during normal business hours.

Each out of State manufacturer of malt or brewed beverages

whose products are sold and delivered in this Commonwealth shall

give distributing rights for such products in designated

geographical areas to specific importing distributors, and such

20200HB2547PN3831 - 93 -

importing distributor shall not sell or deliver malt or brewed

beverages manufactured by the out of State manufacturer to any

person issued a license under the provisions of this act whose

licensed premises are not located within the geographical area

for which he has been given distributing rights by such

manufacturer. In addition, the holder of a distributor license

may not sell or deliver malt or brewed beverages to any licensee

whose licensed premises is located within the designated

geographical area granted to an importing distributor other than

the importing distributor that sold the malt or brewed beverages

to the distributor. If the licensee purchasing the malt or

brewed beverages from the distributor license holder holds

multiple licenses or operates at more than one location, then

the malt or brewed beverages may not be consumed or sold at

licensed premises located within the designated geographical

area granted to an importing distributor other than the

importing distributor that sold the malt or brewed beverages to

the distributor. Should a licensee accept the delivery of malt

or brewed beverages or transfer malt or brewed beverages in

violation of this section, said licensee shall be subject to a

suspension of his license for at least thirty days: Provided,

That the importing distributor holding such distributing rights

for such product shall not sell or deliver the same to another

importing distributor without first having entered into a

written agreement with the said secondary importing distributor

setting forth the terms and conditions under which such products

are to be resold within the territory granted to the primary

importing distributor by the manufacturer.

When a Pennsylvania manufacturer of malt or brewed beverages

licensed under this article names or constitutes a distributor

20200HB2547PN3831 - 94 -

or importing distributor as the primary or original supplier of

his product, he shall also designate the specific geographical

area for which the said distributor or importing distributor is

given distributing rights, and such distributor or importing

distributor shall not sell or deliver the products of such

manufacturer to any person issued a license under the provisions

of this act whose licensed premises are not located within the

geographical area for which distributing rights have been given

to the distributor and importing distributor by the said

manufacturer. In addition, the holder of a distributor license

may not sell or deliver malt or brewed beverages to a licensee

whose licensed premises is located within the designated

geographical area granted to an importing distributor other than

the importing distributor that sold the malt or brewed beverages

to the distributor. If the licensee purchasing the malt or

brewed beverages from the distributor license holder holds

multiple licenses or operates at more than one location, the

malt or brewed beverages may not be consumed or sold at licensed

premises located within the designated geographical area granted

to an importing distributor other than the importing distributor

that sold the malt or brewed beverages to the distributor. If a

licensee accepts the delivery of malt or brewed beverages or

transfers malt or brewed beverages in violation of this section,

the licensee shall be subject to suspension of his license for

at least thirty days: Provided, That the importing distributor

holding such distributing rights for such product shall not sell

or deliver the same to another importing distributor without

first having entered into a written agreement with the said

secondary importing distributor setting forth the terms and

conditions under which such products are to be resold within the

20200HB2547PN3831 - 95 -

territory granted to the primary importing distributor by the

manufacturer. Nothing herein contained shall be construed to

prevent any manufacturer from authorizing the importing

distributor holding the distributing rights for a designated

geographical area from selling the products of such manufacturer

to another importing distributor also holding distributing

rights from the same manufacturer for another geographical area,

providing such authority be contained in writing and a copy

thereof be given to each of the importing distributors so

affected.

* * *

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

Section 431.2. Distributor Package Reform Permit.--(a) The

board may issue a distributor package reform permit to a

currently licensed distributor who makes application and pays

the requisite permit fee for use at the same place the

distributor maintains for the sale of malt and brewed beverages.

(b) For a permit under subsection (a), the board shall

require an annual fee of one thousand dollars ($1,000).

permit shall allow the holder to:

(1) Break the bulk of a case and sell a unit of that case in

quantities not less than sixty ounces so long as the holder only

sells a package prepared for sale by the manufacturer of no more

than twelve original containers.

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

(d) Before the holder of an enhanced distributor license

breaks the bulk of a case of malt or brewed beverages for the

purpose of selling units of the case, the licensee shall inspect

such case for damage and appropriate production date. When the

20200HB2547PN3831 - 96 -

licensee breaks the bulk of a case of malt or brewed beverages

for the purpose of selling units of the case, the licensee shall

bear all the risk of loss and shall be responsible for the

destruction of any malt or brewed beverages that violate the

manufacturer's specifications relating to sales by a certain

date or within a number of days of the production date.

(e) As used in this section:

"Unit" shall mean an undamaged bottle , can from a case or a

growler.

Section 20. Section 432(d) and (f) of the act are amended

and the section is amended by adding a subsection to read:

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

(d) The board shall, in its discretion, grant or refuse any

new license, the transfer of any license to a new location or

the extension of an existing license to cover an additional area

if such place proposed to be licensed is within three hundred

feet of any church, hospital, charitable institution, school, or

public playground, or if such new license, transfer or extension

is applied for a place which is within two hundred feet of any

other premises which is licensed by the board. The board shall

refuse any application for a new license, the transfer of any

license to a new location or the extension of an existing

license to cover an additional area if, in the board's opinion,

such new license, transfer or extension would be detrimental to

the welfare, health, peace and morals of the inhabitants of the

neighborhood within a radius of five hundred feet of the place

to be licensed. The board may enter into an agreement with the

applicant concerning additional restrictions on the license in

question. If the board and the applicant enter into such an

20200HB2547PN3831 - 97 -

agreement, such agreement shall be binding on the applicant.

Failure by the applicant to adhere to the agreement will be

sufficient cause to form the basis for a citation under section

471 and for the nonrenewal of the license under section 470. If

the board enters into an agreement with an applicant concerning

additional restrictions, those restrictions shall be binding on

subsequent holders of the license until the license is

transferred to a new location or until the board enters into a

subsequent agreement removing those restrictions. If the

application in question involves a location previously licensed

by the board, then any restrictions imposed by the board on the

previous license at that location shall be binding on the

applicant unless the board enters into a new agreement

rescinding those restrictions. [The board shall not license the

area where liquid fuels or oil is sold. No sales of liquid fuels

or oil may be made from a licensee's licensed premises. A

licensed premises may not have an interior connection with a

location that sells liquid fuels or oil unless it first receives

permission from the board for the interior connection. The

approval shall be required regardless of whether the licensee or

another party is the entity selling the liquid fuels or oil:]

And provided further, That the board shall have the discretion

to refuse a license to any person or to any corporation,

partnership or association if such person, or any officer or

director of such corporation, or any member or partner of such

partnership or association shall have been convicted or found

guilty of a felony within a period of five years immediately

preceding the date of application for the said license. The

board may, in its discretion, refuse an application for an

economic development license under section 461(b.1) or an

20200HB2547PN3831 - 98 -

application for an intermunicipal transfer or a license if the

board receives a protest from the governing body of the

receiving municipality. The receiving municipality of an

intermunicipal transfer or an economic development license under

section 461(b.1) may file a protest against the approval for

issuance of a license for economic development or an

intermunicipal transfer of a license into its municipality, and

such municipality shall have standing in a hearing to present

testimony in support of or against the issuance or transfer of a

license. Upon any opening in any quota, an application for a new

license shall only be filed with the board for a period of six

months following said opening.

* * *

(f) Hotel, eating places, or municipal golf course retail

dispenser licensees may sell malt or brewed beverages between

the hours of [eleven] nine o'clock antemeridian on Sunday and

two o'clock antemeridian on Monday upon purchase of a special

permit from the board at an annual fee as prescribed in section

614-A of the act of April 9, 1929 (P.L.177, No.175), known as

"The Administrative Code of 1929," which shall be in addition to

any other license fees. Notwithstanding this provision, a

licensee holding such a special permit may begin selling malt or

brewed beverages on Sunday between the hours of nine o'clock

antemeridian and eleven o'clock antemeridian provided that the

licensee offers a meal, as that term is defined in section 406,

beginning at nine o'clock antemeridian.

(g) The board may issue to any retail dispenser licensee a

restaurant license in exchange for the retail dispenser license

in any municipality which has approved the granting of liquor

licenses.

20200HB2547PN3831 - 99 -

(1) An applicant under this section shall surrender his

retail dispenser license for cancellation prior to the issuance

of the new restaurant license.

(2) The applicant for such an exchange of license shall file

an application for a restaurant liquor license and shall post

notice of such application in the manner provided in section

403. In determining whether the exchange shall be granted the

board shall have the same discretion as provided in section 404

in the case of any new license.

(3) The provisions of section 461 pertaining to a quota do

not pertain to this section for exchange purposes.

(4) The board shall charge a one-time upgrade fee of not

more than thirty thousand dollars ($30,000).

* * *

Section 21. Sections 436(e), 437(e) and 438(b) and (c) of

the act are amended to read:

Section 436. Application for Distributors', Importing

Distributors' and Retail Dispensers' Licenses.--Application for

distributors', importing distributors' and retail dispensers'

licenses, or for the transfer of an existing license to another

premises not then licensed or to another person, shall contain

or have attached thereto the following information and

statements:

* * *

(e) That the applicant is not, or in case of a partnership

or association, that the members or partners are not, and in the

case of a corporation, that the officers and directors are not,

in any manner pecuniarily interested, either directly or

indirectly, in the profits of any other class of business

regulated under this article, except as hereinafter permitted.

20200HB2547PN3831 - 100 -

The requirements of this section shall not prohibit a

distributor from holding a wine and spirits retail license, or

an importing distributor from holding a wine and spirits

wholesale license, under the conditions provided under Article

III-A.

* * *

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

* *

(e) No distributor's or importing distributor's license

shall be issued for any premises in any part of which there is

operated any retail license for the sale of liquor or malt or

brewed beverages. The requirements of this section shall not

prohibit a distributor from holding a wine and spirits retail

license, or an importing distributor from holding a wine and

spirits wholesale license, under the conditions provided under

Article III-A.

* * *

Section 438. Number and Kinds of Licenses Allowed Same

Licensee.--* * *

(b) [No person shall possess or be issued more than one

distributor's or importing distributor's license.] A person may

not possess or be issued more than five distributor licenses or

more than one distributor license in a county.

except that a holder of a retail dispenser's license may also be

a holder of a retail liquor license or a wine and spirits retail

license consistent with the restrictions contained in Article

III-A: Provided, however, That nothing contained in this section

shall be construed to prohibit a member of the governing board

of a public authority created under subdivision (n) of Article

20200HB2547PN3831 - 101 -

XXIII of the act of August 9, 1955 (P.L.323, No.130), known as

"The County Code," from having an interest in a distributor or

importing distributor license notwithstanding the fact that the

public authority has an interest in one or more retail licenses

or acts as a landlord for one or more retail licenses: And,

provided further, That, notwithstanding any other provision of

this section, an entity may acquire both a manufacturer's

license or a limited winery license and a hotel, restaurant or

retail dispenser license for use at the same location and more

than one location may be so licensed. The licenses and a

person's interest in the licenses or in the entity holding the

licenses shall not be subject to this section.

Section 22. Section 441(b) of the act is amended and the

section is amended by adding a subsection to read:

Section 441. Distributors' and Importing Distributors'

Restrictions on Sales, Storage, Etc.--* * *

(b) No distributor or importing distributor, except for a

distributor that also holds a distributor package reform permit

under section 431.2, shall sell any malt or brewed beverages in

quantities of less than a case or original containers containing

one hundred twenty-eight ounces or more which may be sold

separately: Provided, That no malt or brewed beverages sold or

delivered shall be consumed upon the premises of the distributor

or importing distributor, or in any place provided for such

purpose by such distributor or importing distributor.

Notwithstanding any other provision of this section or act, malt

or brewed beverages which are part of a tasting conducted

pursuant to the board's regulations may be consumed on licensed

premises.

* * *

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(j) No distributor shall engage in the sale of wine without

first obtaining a wine and spirits retail license under Article

III-A. Sales of wine may only be made on premises licensed for

the sale of malt or brewed beverages.

Section 23. Sections 442(a)(1), 443(b) and 446(a)(1) of the

act are amended to read:

Section 442. Retail Dispensers' Restrictions on Purchases

and Sales.--(a) (1) No retail dispenser shall purchase or

receive any malt or brewed beverages except in original

containers as prepared for the market by the manufacturer at the

place of manufacture. The retail dispenser may thereafter break

the bulk upon the licensed premises and sell or dispense the

same for consumption on or off the premises so licensed. No

retail dispenser may sell malt or brewed beverages for

consumption off the premises in quantities in excess of one

hundred ninety-two fluid ounces unless the licensee acquires a

retail package reform permit issued by the board under section

407(c). Sales may be made in open or closed containers,

Provided, however, That a municipality may adopt an ordinance

restricting open containers in public places. No club licensee

may sell any malt or brewed beverages for consumption off the

premises where sold or to persons not members of the club.

* * *

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

(b) No distributor or importing distributor and no officer

or director of any distributor or importing distributor shall at

the same time be a manufacturer, a retail dispenser or a liquor

licensee, or be an officer, director, stockholder or creditor of

a manufacturer, a retail dispenser or a liquor licensee, or,

directly or indirectly, own any stock of, or have any financial

20200HB2547PN3831 - 103 -

interest in, or be the owner, proprietor or lessor of, any place

covered by any other malt or brewed beverage or liquor license.

The requirements of this section or any other provision of law

shall not prohibit the holder of a distributor license from

holding a wine and spirits retail license issued pursuant to

Article III-A, or an importing distributor from also holding a

wine and spirits wholesale license issued pursuant to Article

III-A.

* * *

Section 446. Breweries.--(a) Holders of a brewery license

may:

(1) Sell malt or brewed beverages produced at the location

and owned by the brewery under such conditions and regulations

as the board may enforce, to individuals for consumption on the

licensed premises in any container or package of any volume and

to hotel, restaurant, club, grocery store and public service

liquor licensees. Malt or brewed beverages produced for the

holder of a brewery license under a contract brewing agreement

with an out-of-State manufacturer may be sold to a nonlicensee

for on-premises or off-premises consumption, except that sales

to a licensee must be distributed as provided under section

431(b).

* * *

Section 24. Section 461(a) of the act is amended and the

section is amended by adding a subsection to read:

Section 461. Limiting Number of Retail Licenses To Be Issued

In Each County.--(a) No additional restaurant, eating place

retail dispenser or club licenses shall be issued within a

county if the total number of restaurant and eating place retail

dispenser licenses is greater than one license for each three

20200HB2547PN3831 - 104 -

thousand inhabitants in the county, except the board may issue

licenses to public venues, performing arts facilities,

continuing care retirement communities, airport restaurants,

municipal golf courses, hotels, privately-owned private golf

courses, privately-owned public golf courses, racetracks,

automobile racetracks, nonprimary pari-mutuel wagering

locations, privately-owned ski resorts, grocery stores and to

any other entity which this act specifically exempts from the

limitations provided in this section, and the board may issue a

license to a club situated in a borough having a population less

than eight thousand inhabitants which is located in a county of

the second class A whose application is filed on or before

February 28, 2001. In addition, the board may issue an eating

place retail dispenser license for on-premises sales only to the

owner or operator of a facility having a minimum of a one-half

mile asphalt track and having a permanent seating capacity of at

least six thousand people used principally for holding

automobile races, regardless of the number of restaurant and

eating place retail dispenser licenses already issued in that

county. When determining the number of restaurant and eating

place retail dispenser licenses issued in a county for the

purposes of this section, licenses exempted from this limitation

and club licenses shall not be considered. Inhabitants of dry

municipalities shall be considered when determining the

population in a county. Licenses shall not be issued or

transferred into municipalities where such licenses are

prohibited pursuant to local referendum in accordance with

section 472. Licenses approved for intermunicipal transfer may

not be transferred from the receiving municipality for a period

of five years after the date that the licensed premises are

20200HB2547PN3831 - 105 -

operational in the receiving municipality.

(a.1) An additional grocery store retail license may not be

issued within a county if the total number of grocery store

retail licenses is greater than one license for every fifteen

thousand inhabitants in the county, provided that a total of two

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

* * *

Section 25. Sections 468(e)(3), 471(b) and (e), 471.1(a) and

472(a) of the act are amended to read:

Section 468. Licenses Not Assignable; Transfers.--* * *

(e) Notwithstanding any other provision of law, directive or

regulation to the contrary, the following shall apply:

* * *

(3) This subsection shall not prohibit the board from

approving a renewal application of a license, even if the

licensed business has an interior connection that is greater

than ten feet wide to an unlicensed business, if the board had

approved the interior connection prior to the effective date of

this subsection. This subsection shall not apply to the holder

of a grocery store retail license.

Section 471. Revocation and Suspension of Licenses; Fines.--

* * *

(b) Hearing on such citations shall be held in the same

manner as provided herein for hearings on applications for

license. Upon such hearing, if satisfied that any such violation

has occurred or for other sufficient cause, the administrative

law judge shall immediately suspend or revoke the license, or

impose a fine of not less than [fifty dollars ($50)] two hundred

fifty dollars ($250) nor more than [one thousand dollars

($1,000)] five thousand dollars ($5,000), or both, notifying the

20200HB2547PN3831 - 106 -

licensee by registered letter addressed to his licensed

premises. If the licensee has been cited and found to have

violated section 493(1) insofar as it relates to sales to minors

or sales to a visibly intoxicated person, section 493(10)

insofar as it relates to lewd, immoral or improper entertainment

or section 493(14), (16) or (21), or has been found to be a

public nuisance pursuant to section 611, or if the owner or

operator of the licensed premises or any authorized agent of the

owner or operator has been convicted of any violation of the act

of April 14, 1972 (P.L.233, No.64), known as "The Controlled

Substance, Drug, Device and Cosmetic Act," or of 18 Pa.C.S. §

5902 (relating to prostitution and related offenses) or 6301

(relating to corruption of minors), at or relating to the

licensed premises, the administrative law judge shall

immediately suspend or revoke the license, or impose a fine of

not less than [one thousand dollars ($1,000)] five thousand

dollars ($5,000) nor more than [five thousand dollars ($5,000)]

ten thousand dollars ($10,000), or both. However, if a licensee

has been cited and found to have violated section 493(1) as it

relates to sales to minors or sales to a visibly intoxicated

person but at the time of the sale the licensee was in

compliance with the requirements set forth in section 471.1 and

the licensee had not sold to minors or visibly intoxicated

persons in the previous four years, then the administrative law

judge shall immediately suspend or revoke the license, or impose

a fine of not less than [fifty dollars ($50)] one thousand

dollars ($1,000) nor more than [one thousand dollars ($1,000)]

five thousand dollars ($5,000), or both. The administrative law

judge shall notify the licensee by registered mail, addressed to

the licensed premises, of such suspension, revocation or fine.

20200HB2547PN3831 - 107 -

In the event the fine is not paid within twenty days of the

adjudication, the administrative law judge shall suspend or

revoke the license, notifying the licensee by registered mail

addressed to the licensed premises. Suspensions and revocations

shall not go into effect until thirty days have elapsed from the

date of the adjudication during which time the licensee may take

an appeal as provided for in this act, except that revocations

mandated in section 481(c) shall go into effect immediately. Any

licensee whose license is revoked shall be ineligible to have a

license under this act until the expiration of three years from

the date such license was revoked. In the event a license is

revoked, no license shall be granted for the premises or

transferred to the premises in which the said license was

conducted for a period of at least one year after the date of

the revocation of the license conducted in the said premises,

except in cases where the licensee or a member of his immediate

family is not the owner of the premises, in which case the board

may, in its discretion, issue or transfer a license within the

said year. In the event the bureau or the person who was fined

or whose license was suspended or revoked shall feel aggrieved

by the adjudication of the administrative law judge, there shall

be a right to appeal to the board. The appeal shall be based

solely on the record before the administrative law judge. The

board shall only reverse the decision of the administrative law

judge if the administrative law judge committed an error of law,

abused its discretion or if its decision is not based on

substantial evidence. In the event the bureau or the person who

was fined or whose license was suspended or revoked shall feel

aggrieved by the decision of the board, there shall be a right

to appeal to the court of common pleas in the same manner as

20200HB2547PN3831 - 108 -

herein provided for appeals from refusals to grant licenses.

Each of the appeals shall act as a supersedeas unless, upon

sufficient cause shown, the reviewing authority shall determine

otherwise; however, if the licensee has been cited and found to

have violated section 493(1) insofar as it relates to sales to

minors or sales to a visibly intoxicated person, section 493(10)

insofar as it relates to lewd, immoral or improper entertainment

or section 493(14), (16) or (21), or has been found to be a

public nuisance pursuant to section 611, or if the owner or

operator of the licensed premises or any authorized agent of the

owner or operator has been convicted of any violation of "The

Controlled Substance, Drug, Device and Cosmetic Act," or of 18

Pa.C.S. § 5902 or 6301, at or relating to the licensed premises,

or if the license has been revoked under section 481(c), its

appeal shall not act as a supersedeas unless the reviewing

authority determines otherwise upon sufficient cause shown. In

any hearing on an application for a supersedeas under this

section, the reviewing authority may consider, in addition to

other relevant evidence, documentary evidence, including records

of the bureau, showing the prior history of citations, fines,

suspensions or revocations against the licensee; and the

reviewing authority may also consider, in addition to other

relevant evidence, evidence of any recurrence of the unlawful

activity occurring between the date of the citation which is the

subject of the appeal and the date of the hearing. If the

reviewing authority is the board, no hearing shall be held on

the application for a supersedeas; however, a decision shall be

made based on the application, answer and documentary evidence

under this subsection. If the application for a supersedeas is

for a license that has been revoked under section 481(c), the

20200HB2547PN3831 - 109 -

reviewing authority shall grant the supersedeas only if it finds

that the licensee will likely prevail on the merits. No penalty

provided by this section shall be imposed for any violations

provided for in this act unless the bureau notifies the licensee

of its nature within thirty days of the completion of the

investigation.

* * *

(e) If a licensee has been cited and found to have violated

section 493(1) for a second or subsequent offense as it relates

to sales to minors or sales to a visibly intoxicated person, the

administrative law judge, in addition to the penalties set forth

in subsection (b), [may] shall impose a suspension of at least

two consecutive weekend days when the offense is a second

offense or two consecutive Saturdays of operation if the

licensee does not hold a Sunday sales permit, and a suspension

of at least seven consecutive days of operation when the offense

is a third or subsequent offense. The mandatory suspension

provision shall not apply to licensees which also hold a license

issued by the Pennsylvania Gaming Control Board for the use of

their premises. Further, the administrative law judge may, in

such instances, require the licensee to comply with the

requirements set forth in section 471.1 pertaining to

responsible alcohol management. Such compliance may be required

for a period of up to one year. Failure to adhere with such an

order is sufficient cause for the issuance of a citation under

subsection (a).

* * *

Section 471.1. Responsible Alcohol Management.--(a) The

board is authorized to offer a responsible alcohol service

program to licensees. The program shall consist of four parts:

20200HB2547PN3831 - 110 -

new employe orientation, training for alcohol service personnel,

manager/owner training and the displaying of responsible alcohol

service signage. New employe orientation shall consist of

orienting newly hired alcohol service personnel as to

Pennsylvania law relating to the sale, furnishing or serving of

alcoholic beverages to minors and visibly intoxicated persons.

It shall also mean orienting newly hired alcohol service

personnel to responsible server practices, as the term is

defined by the board, through regulation. Training for alcohol

service personnel shall be as set forth by the board, but at

minimum it shall consist of training to prevent service of

alcohol to minors and to visibly intoxicated persons.

Manager/owner training shall be as set forth by the board, but

at a minimum it shall consist of training on how to monitor

employes, proper service of alcohol and how to develop an

appropriate alcohol service policy. The responsible alcohol

service signage shall be as set forth by the board and shall

consist of signage dealing with the licensee's policy against

sales to minors and visibly intoxicated persons. Alcohol service

personnel training [may] shall be conducted by [the board or by

an entity] entities certified by the board to conduct such

training.

* * *

Section 472. Local Option.--(a) In any municipality or any

part of a municipality where such municipality is split so that

each part thereof is separated by another municipality, an

election may be held, subject to subsection (c), not oftener

than once in four years, to determine the will of the electors

with respect to the granting of liquor licenses to hotels,

restaurants, resort facilities and clubs, not oftener than once

20200HB2547PN3831 - 111 -

in four years, to determine the will of the electors with

respect to the granting of liquor licenses to public venues, to

performing arts facilities, to continuing care retirement

communities, to hotels located on property owned by an

accredited college or university, to privately-owned private

golf courses or to privately-owned public golf courses, not

oftener than once in four years, to determine the will of the

electors with respect to the granting of licenses to retail

dispensers of malt and brewed beverages, not oftener than once

in four years, to determine the will of the electors with

respect to granting of licenses to wholesale distributors and

importing distributors, not more than once in two years, to

determine the will of the electors with respect to the granting

of club liquor licenses or club retail dispenser licenses to

incorporated units of national veterans' organizations, not

oftener than once in two years to determine the will of the

electors with respect to the granting of special occasion

permits to qualified organizations, not more than once in two

years, to determine the will of the electors with respect to

granting of licenses to grocery stores, or not more than once in

four years, to determine the will of the electors with respect

to the establishment[, operation and maintenance by the board of

Pennsylvania liquor stores] of wine and spirits retail

licensees, within the limits of such municipality or part of a

split municipality, or not more than once in two years, to

determine the will of the electors with respect to the granting

of liquor licenses to ski resort facilities, under the

provisions of this act: Provided, That an election on the

question of establishing and operating a State liquor store

shall be initiated only in those municipalities, or that part of

20200HB2547PN3831 - 112 -

a split municipality that shall have voted against the granting

of liquor licenses; and that an election on the question of

granting wholesale distributor and importing distributor

licenses shall be initiated only in those municipalities or

parts of split municipalities that shall have at a previous

election voted against the granting of dispenser's licenses.

Whenever electors equal to at least twenty-five per centum of

the highest vote cast for any office in the municipality or part

of a split municipality at the last preceding general election

shall file a petition with the county board of elections of the

county for a referendum on the question of granting any of said

classes of licenses or the establishment of Pennsylvania liquor

stores, the said county board of elections shall cause a

question to be placed on the ballots or on the voting machine

board and submitted at any election. Separate petitions must be

filed for each question to be voted on. Said proceedings shall

be in the manner and subject to the provisions of the election

laws which relate to the signing, filing and adjudication of

nomination petitions, insofar as such provisions are applicable.

When the question is in respect to the granting of liquor

licenses, it shall be in the following form:

Do you favor the granting of liquor licenses for the

sale of liquor in......................................

of....................................................?

Yes

When the question is in respect to the granting of liquor

licenses to resort facilities in those municipalities that do

not already allow the retail sale of liquor, it shall be in the

following form:

Do you favor the granting of liquor licenses to resort

facilities for the sale of liquor in the............... Yes

20200HB2547PN3831 - 113 -

of....................................................? No

When the question is in respect to the granting of liquor

licenses to ski resorts in those municipalities that do not

already allow the retail sale of liquor, it shall be in the

following form:

Do you favor the granting of liquor licenses to ski

resort facilities for the sale of liquor in the

..................of ................................?

Yes

When the question is in respect to the granting of restaurant

liquor licenses for use at public venues in those municipalities

that do not already allow the retail sale of liquor, it shall be

in the following form:

Do you favor the granting of liquor licenses to public

venues for the sale of liquor in the...................

of....................................................?

Yes

When the question is in respect to the granting of restaurant

liquor licenses for use at performing arts facilities in those

municipalities that do not already allow the retail sale of

alcohol, it shall be in the following form:

Do you favor the granting of liquor licenses to

performing arts facilities for the sale of liquor in

the...................................................

of...................................................?

Yes

When the question is in respect to the granting of liquor

licenses for hotels located on property owned by an accredited

college or university in those municipalities that do not

already allow the granting of liquor licenses, it shall be in

the following form:

Do you favor the granting of liquor licenses to hotels

on property owned by an accredited college or

Yes

20200HB2547PN3831 - 114 -

university in the.....................................

of...................................................?

When the question is in respect to the granting of liquor

licenses, for privately-owned private golf courses, it shall be

in the following form:

Do you favor the granting of liquor licenses for

privately-owned private golf courses for the sale of

liquor in....................by........................

of....................................................?

Yes

When the question is in respect to the granting of liquor

licenses, for privately-owned public golf courses, it shall be

in the following form:

Do you favor the granting of liquor licenses for

privately-owned public golf courses for the sale of

liquor in....................by........................

of....................................................?

Yes

When the question is in respect to the granting of liquor

licenses to continuing care retirement communities in those

municipalities that have not already approved the granting of

liquor licenses, it shall be in the following form:

Do you favor the granting of liquor licenses for

continuing care retirement communities

in...........................by........................

of....................................................?

Yes

When the question is in respect to the granting of licenses

to retail dispensers of malt and brewed beverages, it shall be

in the following form:

Do you favor the granting of malt and brewed beverage

retail dispenser licenses for consumption on premises

where sold in the..................................... Yes

20200HB2547PN3831 - 115 -

of...................................................? No

When the question is in respect to the granting of

grocery store licenses for the sale of wine for

consumption off the premises, it shall be in the following

form:

Do you favor the granting of licenses for grocery

stores

for the sale of wine for consumption off the premises

in.........................by..........................

of.....................................................

Yes

When the question is in respect to the granting of licenses

to wholesale distributors of malt or brewed beverages and

importing distributors, it shall be in the following form:

Do you favor the granting of malt and brewed beverage

wholesale distributor's and importing distributor's

licenses not for consumption on premises where sold in

the...................................................

of....................................................?

Yes

When the question is in respect to the granting of club

liquor licenses to incorporated units of national veterans'

organizations, it shall be in the following form:

Do you favor the granting of club liquor licenses to

incorporated units of national veterans' organizations

in the.................................................

of....................................................?

Yes

When the question is in respect to the granting of club

retail dispenser licenses to incorporated units of national

veterans' organizations, it shall be in the following form:

Do you favor the granting of club retail dispenser Yes

20200HB2547PN3831 - 116 -

licenses to incorporated units of national veterans'

organizations in the...................................

of....................................................? No

When the question is in respect to the granting of special

occasion permits allowing the sale of liquor by qualified

organizations in municipalities that do not already allow the

retail sale of liquor, it shall be in the following form:

Do you favor the granting of special occasion permits

to allow the sale of liquor by qualified organizations

in the.................................................

of....................................................?

Yes

When the question is in respect to the granting of special

occasion permits allowing the sale of malt or brewed beverages

only by qualified organizations in municipalities that do not

already allow the retail sale of malt or brewed beverages, it

shall be in the following form:

Do you favor the granting of special occasion permits

to allow the sale of malt or brewed beverages only by

qualified organizations in the.........................

of....................................................?

Yes

When the question is in respect to the [establishment,

operation and maintenance of Pennsylvania liquor stores]

granting of licenses to wine and spirits retail operators for

the sale of liquor for consumption off the premises, it shall be

in the following form:

Do you favor the [establishment, operation and

maintenance of Pennsylvania liquor stores] granting of

wine and spirits retail licenses for the sale of liquor

for consumption off the premises in

the...................................................

Yes

20200HB2547PN3831 - 117 -

of...................................................?

When the question is in respect to the granting of liquor

licenses to an airport authority in those municipalities that do

not already allow the retail sale of liquor, it shall be in the

following form:

Do you favor the granting of liquor licenses to an

airport authority for the sale of liquor in

the...................................................

of...................................................?

Yes

In case of a tie vote, the status quo shall obtain. If a

majority of the voting electors on any such question vote "yes,"

then liquor licenses shall be granted by the board to hotels,

restaurants, ski resorts, resort facilities and clubs, or liquor

licenses shall be granted by the board to public venues, to

performing arts facilities, to continuing care retirement

communities, to hotels located on property owned by an

accredited college or university, to privately-owned private

golf courses or to privately-owned public golf courses, or malt

and brewed beverage retail dispenser licenses or wholesale

distributor's and importing distributor's license for the sale

of malt or brewed beverages shall be granted by the board, or

club liquor licenses or club retail dispenser licenses shall be

granted by the board to incorporated units of national veterans'

organizations, or special occasion permits may be issued to

qualified organizations, or [the board may establish, operate

and maintain Pennsylvania liquor stores] licenses to grocery

stores or to wine and spirits retail licenses, as the case may

be, in such municipality or part of a split municipality, as

provided by this act; but if a majority of the electors voting

on any such question vote "no," then the board shall have no

20200HB2547PN3831 - 118 -

power to grant or to renew upon their expiration any licenses of

the class so voted upon in such municipality or part of a split

municipality[; or if the negative vote is on the question in

respect to the establishment, operation and maintenance of

Pennsylvania liquor stores, the board shall not open and operate

a Pennsylvania liquor store in such municipality or part of a

split municipality, nor continue to operate a then existing

Pennsylvania liquor store in the municipality or part of a split

municipality for more than two years thereafter or after the

expiration of the term of the lease on the premises occupied by

such store, whichever period is less, unless and until at a

later election a majority of the voting electors vote "yes" on

such question].

* * *

Section 26. Section 491(2), (7), (8), (11), (13) and (14)

are amended and the section is amended by adding a clause to

read:

Section 491. Unlawful Acts Relative to Liquor, Alcohol and

Liquor Licensees.--

It shall be unlawful--

* * *

(2) Possession or Transportation of Liquor or Alcohol. For

any person, except a manufacturer or the board or the holder of

a sacramental wine license or of an importer's license or a wine

and spirits retail license, to possess or transport any liquor

or alcohol within this Commonwealth which was not lawfully

acquired prior to January first, one thousand nine hundred and

thirty-four, or has not been purchased from a Pennsylvania

Liquor Store, a wine and spirits wholesale licensee or a

licensed limited winery in Pennsylvania, except in accordance

20200HB2547PN3831 - 119 -

with section 488 or the board's regulations. In addition, it

shall be lawful for anyone to possess miniatures totaling less

than one gallon purchased in another state or a foreign country.

The burden shall be upon the person possessing or transporting

such liquor or alcohol to prove that it was so acquired.

Notwithstanding this section or any other provision of the law,

wine may be produced by any person without a license if the wine

is not produced for sale and total production does not exceed

two hundred gallons per calendar year. Wine produced in

accordance with this clause may be used at organized affairs,

exhibitions, competitions, contests, tastings or judgings if it

is not sold or offered for sale.

None of the provisions herein contained shall prohibit nor

shall it be unlawful for any person to import into Pennsylvania,

transport or have in his possession, an amount of liquor not

exceeding one gallon in volume upon which a State tax has not

been paid, if it can be shown to the satisfaction of the board

that such person purchased the liquor in a foreign country or

United States territory and was allowed to bring it into the

United States. Neither shall the provisions contained herein

prohibit nor make it unlawful for (i) any member of the armed

forces on active duty, or (ii) any retired member of the armed

forces, or (iii) any totally disabled veteran, or (iv) the

spouse of any person included in the foregoing classes of

persons to import into Pennsylvania, transport or have in his

possession an amount of liquor not exceeding one gallon per

month in volume upon which the State tax has not been paid, so

long as such liquor has been lawfully purchased from a package

store established and maintained under the authority of the

United States and is in containers identified in accordance with

20200HB2547PN3831 - 120 -

regulations issued by the Department of Defense. Such liquor

shall not be possessed, offered for sale or sold on any licensed

premises. The term "package store" as used in this clause shall

mean those retail operations located on any of the United States

military installations, including an installation of the Army,

Navy, Air Force, Marine Corps or Coast Guard.

None of the provisions herein contained shall prohibit nor

shall it be unlawful for any consul general, consul or other

diplomatic officer of a foreign government to import into

Pennsylvania, transport or have in his possession liquor upon

which a State tax has not been paid, if it can be shown to the

satisfaction of the board that such person acquired the liquor

in a foreign country and was allowed to bring it into the United

States. Such liquor shall not be possessed, offered for sale or

sold on any licensed premises.

Any person violating the provisions of this clause for a

first offense involving the possession or transportation in

Pennsylvania of any liquor in a package (bottle or other

receptacle) or wine not purchased from a Pennsylvania Liquor

Store, a wine and spirits wholesale licensee, a wine and spirits

retail licensee or from a licensed limited winery in

Pennsylvania, with respect to which satisfactory proof is

produced that the required Federal tax has been paid and which

was purchased, procured or acquired legally outside of

Pennsylvania shall upon conviction thereof in a summary

proceeding be sentenced to pay a fine of twenty-five dollars

($25) for each such package, plus costs of prosecution, or

undergo imprisonment for a term not exceeding ninety (90) days.

Each full quart or major fraction thereof shall be considered a

separate package (bottle or other receptacle) for the purposes

20200HB2547PN3831 - 121 -

of this clause. Such packages of liquor shall be forfeited to

the Commonwealth in the manner prescribed in Article VI of this

act but the vehicle, boat, vessel, animal or aircraft used in

the illegal transportation of such packages shall not be subject

to forfeiture: Provided, however, That if it is a second or

subsequent offense or if it is established that the illegal

possession or transportation was in connection with a commercial

transaction, then the other provisions of this act providing for

prosecution as a misdemeanor and for the forfeiture of the

vehicle, boat, vessel, animal or aircraft shall apply.

* * *

(7) Sales of Liquor by Manufacturers and Licensed Importers.

For any manufacturer or licensed importer of liquor in this

Commonwealth, his agents, servants or employes, to sell or offer

to sell any liquor in this Commonwealth except to the board for

use in Pennsylvania Liquor Stores, a wine and spirits wholesale

licensee, and in the case of a manufacturer, to the holder of a

sacramental wine license or an importer's license.

Notwithstanding any other provision of this act, a manufacturer

or licensed importer may sell or offer to sell liquor for

delivery outside of this Commonwealth.

(8) Importation and Sales of Alcohol. For any person, to

import alcohol into this Commonwealth, or to sell alcohol to any

person, except in accordance with section 488 and the provisions

of this act or the regulations of the board.

* * *

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

board, a wine and spirits wholesale licensee or the holder of a

sacramental wine license, an importer's license or a direct wine

shipper's license, to import any liquor whatsoever into this

20200HB2547PN3831 - 122 -

Commonwealth, but this section shall not be construed to

prohibit railroad and pullman companies from purchasing and

selling liquors purchased outside the Commonwealth in their

dining, club and buffet cars which are covered by public service

liquor licenses and which are operated in this Commonwealth.

* * *

(13) Violation of Certain Rules and Regulations of Board.

For any person, to violate any rules and regulations adopted by

the board [to insure the equitable] relating to wholesale and

retail sale and distribution of liquor and alcohol [through the

Pennsylvania Liquor Stores] in accordance with the provisions of

this act.

(14) Offering Commission or Gift to Members of Board or

State Employe. For any person [selling or offering to sell

liquor or alcohol to, or purchasing at wholesale liquor or

alcohol from, the board,] licensed by the board, either directly

or indirectly, to pay or offer to pay any commission, profit or

remuneration, or to make or offer to make any gift to any member

or employe of the board or other employe of the Commonwealth or

to anyone on behalf of such member or employe.

* * *

(16) Importation of Alcohol From Other States.

Notwithstanding any other provision of this act, it shall not be

unlawful for a nonlicensed resident of this Commonwealth to

purchase alcohol outside of this Commonwealth and import that

alcohol back into this Commonwealth so long as the nonlicensed

resident remits all applicable taxes to the Department of

Revenue. This section shall not apply to alcohol that is shipped

into this Commonwealth. Section 488 shall be the sole law

governing the shipment of alcohol into this Commonwealth.

20200HB2547PN3831 - 123 -

Section 27. Sections 492(9), (12), (13) and (14) and

492.1(b)(2) and (c) of the act are amended to read:

Section 492. Unlawful Acts Relative to Malt or Brewed

Beverages and Licensees.--

It shall be unlawful--

* * *

(9) Transportation of Malt or Brewed Beverages by Licensee.

For a malt or brewed beverage licensee, to deliver or transport

any malt or brewed beverages, excepting in vehicles bearing the

name and address and license number of such licensee painted or

affixed on each side of such vehicle in letters no smaller than

two inches in height and for purposes not prohibited under this

act.

* * *

(12) Distributors and Importing Distributors Engaging in

Other Business. For any distributor or importing distributor, or

his servants, agents or employes, without the approval of the

board, and then only in accordance with board regulations, to

engage in any other business whatsoever, except the business of

distributing malt or brewed beverages, except that the sale of

the following goods shall be permitted on the licensed premises

of a distributor or importing distributor:

(i) Any book, magazine or other publication related to malt

or brewed beverages.

(ii) Any equipment, ingredients or other supplies necessary

for the unlicensed manufacture of malt or brewed beverages as

described in paragraph (1), commonly known as "homebrewing." If

the holder of a distributor license acquires a wine and spirits

retail license pursuant to Article III-A for use at its licensed

premises, it may engage in the sale of liquor, so long as the

20200HB2547PN3831 - 124 -

licensee meets all of the requirements of this act. If the

holder of an importing distributor license acquires a wine and

spirits wholesale license pursuant to Article III-A for use at

its licensed premises, it may engage in the sale of liquor, so

long as the licensee meets all of the requirements of this act.

The board shall promulgate regulations consistent with this act

governing the sale of any other items by a distributor that

acquires a wine and spirits retail license, as well as the sale

of other items by an importing distributor that acquires a wine

and spirits wholesale license.

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

Licensees. For any distributor, importing distributor or retail

dispenser, or his servants, agents or employes, to have in his

possession, or to permit the storage of on the licensed premises

or in any place contiguous or adjacent thereto accessible to the

public or used in connection with the operation of the licensed

premises, any alcohol or liquor. This section may not prohibit a

distributor that holds a wine and spirits retail license, or an

importing distributor that holds a wine and spirits wholesale

license, from possessing or permitting the storage of liquor on

the licensed premises used in connection with the operation of

the licensed premises.

(14) Malt or Brewed Beverage Licensees Dealing in Liquor or

Alcohol. For any malt or brewed beverage licensee, other than a

distributor that holds a wine and spirits retail license, or an

importing distributor that holds a wine and spirits wholesale

license, a manufacturer, or the servants, agents or employes

thereof, to manufacture, import, sell, transport, store, trade

or barter in any liquor or alcohol.

* * *

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Section 492.1. Hours of Operation Relative to Manufacturers,

Importing Distributors and Distributors.--* * *

(b) * * *

(2) Importing distributors and distributors may sell or

deliver malt or brewed beverages between eight o'clock

antemeridian and [eleven o'clock postmeridian of any] two

o'clock antemeridian of the following day, except Sunday, to

persons not licensed or permitted by this act.

(a) and (b), manufacturers, importing distributors and

distributors, upon purchasing a permit from the board at an

annual fee of one hundred dollars ($100) unless the applicant

for the permit is a distributor that holds a wine and spirits

retail license, in which instance Article III-A governs, may

sell malt or brewed beverages to persons not licensed under this

act or to a holder of a special occasion permit on Sunday

between the hours of nine o'clock antemeridian and [nine o'clock

postmeridian] two o'clock antemeridian on Monday.

* * *

Section 28. Section 493(24) and (27) of the act are amended

and the section is amended by adding clauses to read:

Section 493. Unlawful Acts Relative to Liquor, Malt and

Brewed Beverages and Licensees.--The term "licensee," when used

in this section, shall mean those persons licensed under the

provisions of Article IV, unless the context clearly indicates

otherwise.

It shall be unlawful--

* * *

(24) (i) Things of Value Offered as Inducement. Except as

provided in subclauses (ii) and (iii), for any licensee under

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the provisions of this article, or the board or any

manufacturer, or any employe or agent of a manufacturer,

licensee or of the board, to offer to give anything of value or

to solicit or receive anything of value as a premium for the

return of caps, stoppers, corks, stamps or labels taken from any

bottle, case, barrel or package containing liquor or malt or

brewed beverage, or to offer or give or solicit or receive

anything of value as a premium or present to induce directly the

purchase of liquor or malt or brewed beverage, or for any

licensee, manufacturer or other person to offer or give to trade

or consumer buyers any prize, premium, gift or other inducement

to purchase liquor or malt or brewed beverages, except

advertising novelties of nominal value which the board shall

define. This section shall not prevent any manufacturer or any

agent of a manufacturer from offering and honoring coupons which

offer monetary rebates on purchases of wines and spirits through

State Liquor Stores, the holder of a wine and spirits retail

license or grocery store license, or purchases of malt or brewed

beverages through distributors and importing distributors in

accordance with conditions or regulations established by the

board. The board may redeem coupons offered by a manufacturer or

an agent of a manufacturer at the time of purchase. Coupons

offered by a manufacturer or an agent of a manufacturer shall

not be redeemed without proof of purchase. This section shall

not apply to the return of any monies specifically deposited for

the return of the original container to the owners thereof.

(ii) Notwithstanding subclause (i) or any other provision of

law:

(A) A holder of a restaurant license that is also approved

to hold a slot machine license or a conditional slot machine

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license under 4 Pa.C.S. Part II (relating to gaming) may give

liquor and malt or brewed beverages free of charge to any person

actively engaged in playing a slot machine.

(B) The board may establish and implement a customer

relations management program for the purpose of offering to

unlicensed customers of the board incentives, such as coupons or

discounts on certain products, which may be conditioned on the

purchase of liquor.

(iii) Notwithstanding subclause (i) or any other provision

of law, a retail licensee or a brewery may offer a mug club to

its patrons.

(iv) Notwithstanding subclause (i) or any other provision of

law, the holder of a wine and spirits retail license may

establish and implement a consumer relations marketing program

for the purpose of offering incentives, such as coupons or

discounts on certain products, which may be conditioned on the

purchase of liquor by its customers.

* * *

(27) Distributors and Importing Distributors Employing

Minors. For any distributor or importing distributor to employ

minors under the age of eighteen but persons eighteen and over

may be employed to sell and deliver malt and brewed beverages. A

distributor holding a wine and spirits retail license may not

employ a person under the age of twenty-one to sell liquor.

* * *

(35) Wine-to-go permit and fees. For any licensee, his

servants, agents or employes to sell unopened bottles of wine

for consumption off the licensed premises, unless the sale is

specifically authorized under this act, or unless the licensee

receives a special permit from the board to do so. Only those

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licensees holding a current and valid hotel or restaurant

license shall be allowed to apply for such a permit. Any

licensee that wishes to obtain a wine-to-go permit must make

application to the board on a form prescribed by the board and

pay the permitting fees. This permit shall not be issued to a

restaurant licensee that has an interior connection to another

unlicensed business. The board may charge a fee of five hundred

dollars ($500) per calendar year to each applicant for this

permit. The fees shall be paid into The State Stores Fund. Any

violation of this act or the board's regulations for governing

activity occurring under the authority of this permit may be the

basis for the issuance of a citation under section 471, the

nonrenewal of the license under section 470 or the refusal by

the board to issue subsequent permits or honor subsequent dates

on the existing permit. The penalty shall be in addition to any

other remedies available to the enforcement bureau or the board.

(36) Grocery stores employing minors. For any servant, agent

or employe of a grocery store to make a sale of alcohol unless

the servant, agent or employe is eighteen years of age or older.

(37) Sale of wine received by direct shipment. For any

licensee to sell or offer to sell wine purchased or acquired

from a direct wine shipper pursuant to the authority of section

488.

(38) Duties performed by distributors and importing

distributors. For any licensee to require that a distributor or

importing distributor stock merchandise in the licensee's

cooler, rotate the licensee's stock of malt or brewed beverages,

set up displays in the licensee's premises or pay any type of

fee required for making the distributor's product available on

the licensee's store shelves. This clause supersedes a contrary

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provision of a contract.

(39) Spirits-to-go permit. For any licensee, his servants,

agents or employes to sell an unopened bottle of liquor for

consumption off the licensed premises unless the sale is

specifically authorized under this act or unless the licensee

receives a special permit from the board to do so. Only the

licensees holding a current and valid hotel or restaurant

license may apply for the permit. Any licensee that wishes to

obtain a spirits-to-go permit must apply to the board on a form

prescribed by the board and pay the permitting fees by June of

each calendar year. Any licensee that fails to notify the board

and pay the permitting fees by June 1 may be precluded from

obtaining the permit for that calendar year. The board may allow

the issuance of the permit after the June deadline so long as

the applicant is a licensee in good standing with the board and

complies with the other requirements for the permit. A licensee

applying for the permit after the June deadline shall pay the

board a late fee equal to the amount of the permit fee listed

below. Any licensee not granted a license until after June 1 of

the calendar year has sixty days from the date of the license

transfer to notify the board of the licensee's intention to use

a spirits-to-go permit and pay the permitting fee. The servers

employed by a licensee who obtains a spirits-to-go permit,

including any retail dispenser licensee who upgrades to a

restaurant license under section 432(g), must be certified under

the board's responsible alcohol management program as required

under section 471.1. The board shall charge a fee of five

hundred dollars ($500) per calendar year to an applicant for the

permit. The fees shall be paid into The State Stores Fund. Any

violation of this act or the board's regulations for governing

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activity occurring under the authority of this permit may be the

basis for the issuance of a citation under section 471, the

nonrenewal of the license under section 470 or the refusal by

the board to issue subsequent permits. The penalty imposed under

this clause shall be in addition to the other remedies available

to the enforcement bureau or the board.

Section 29. The act is amended by adding sections to read:

Section 493.2. Unlawful Acts Relative to Wine and Spirits

Retail Licensees.--(a) It is unlawful for a wine and spirits

retail licensee, or an employe, servant or agent of the licensee

or another person to sell, furnish or give liquor or malt or

brewed beverages or to permit liquor or malt or brewed beverages

to be sold, furnished or given to a minor or person who is

visibly intoxicated.

(b) A wine and spirits retail licensee who violates the

provisions of subsection (a) is subject to the penalty

provisions set forth in section 471.

Section 493.3. Licensees and Taxes.--Notwithstanding any

other provision of this act or the act of March 4, 1971 (P.L.6,

No.2), known as the "Tax Reform Code of 1971," the following

shall apply:

(1) The sale of malt and brewed beverages and wine and

spirits by an entity licensed under this act, including the sale

of malt and brewed beverages and wine and spirits from the areas

of a licensee's premises utilized under a retail license for

consumption on the premises, shall be considered a sale by a

retail dispenser under section 201 of the "Tax Reform Code of

1971."

(2) The sale of malt and brewed beverages and wine and

spirits to an entity described in paragraph (1) for the purpose

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of sales from the areas of a licensee's premises utilized under

a retail license for consumption on the premises shall be

considered a sale to a retail dispenser subject to the tax

imposed under Article II of the "Tax Reform Code of 1971."

(3) Except for sales under paragraphs (1) and (2), any other

sale of malt and brewed beverages shall be considered a sale by

a distributor, and any other sale of wine or spirits shall be

considered a sale of liquor by a Pennsylvania Liquor Store under

section 201 of the "Tax Reform Code of 1971."

Section 30. Sections 494(a), 499(a.1)(1), 505.2(a)(2) and

(3), 505.4(a), (b)(1) and (c)(1) and 508(a) of the act are

amended to read:

Section 494. Penalties.--(a) Any person who shall violate

any of the provisions of this article, except as otherwise

specifically provided, shall be guilty of a misdemeanor and,

upon conviction thereof, shall be sentenced to pay a fine of not

less than one hundred dollars ($100), nor more than five hundred

dollars ($500), and on failure to pay such fine, to imprisonment

for not less than one month, nor more than three months, and for

any subsequent offense, shall be sentenced to pay a fine not

less than three hundred dollars ($300), nor more than five

hundred dollars ($500), and to undergo imprisonment for a period

not less than three months, nor more than one year, or both. If

the person, at or relating to the licensed premises, violates

section 493(1), (10), (14), (16) or (21), or if the owner or

operator of the licensed premises or any authorized agent of the

owner or operator violates the act of April 14, 1972 (P.L.233,

No.64), known as "The Controlled Substance, Drug, Device and

Cosmetic Act," or 18 Pa.C.S. § 5902 (relating to prostitution

and related offenses) or 6301 (relating to corruption of

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minors), he shall be sentenced to pay a fine not exceeding [five

thousand dollars ($5,000)] ten thousand dollars ($10,000) or to

undergo imprisonment for a period not less than [three] six

months, nor more than [one year] two years, or both.

* * *

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

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

brewed beverages for consumption off the premises when the

following conditions are met:

(1) no licensee may sell malt or brewed beverages in excess

of one hundred ninety-two fluid ounces in any one sale for

consumption off the premises unless the licensee possesses a

retail package reform;

* * *

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

promoting tourism and recreational development in Pennsylvania,

holders of a limited winery license may:

* * *

(2) Sell alcoholic cider, mead, wine and wine coolers

produced by the limited winery or purchased in bulk in bond from

another Pennsylvania limited winery on the licensed premises,

under such conditions and regulations as the board may enforce,

to the board, to wine and spirits retail licensees, to

individuals and to brewery, importing distributor, distributor,

hotel, restaurant, club, grocery store and public service liquor

licensees, and to Pennsylvania winery licensees: Provided, That

a limited winery shall not, in any calendar year, purchase

alcoholic cider, mead or wine produced by other limited wineries

in an amount in excess of fifty per centum of the alcoholic

cider, mead or wine produced by the purchasing limited winery in

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the preceding calendar year. In addition, the holder of a

limited winery license may purchase wine in bottles from another

Pennsylvania limited winery if these wines undergo a second

fermentation process. [Such wine may be sold in bottles bearing

the purchasing limited winery's label or the producing limited

winery's label. Such wines, if sold by the board, may be sold by

the producing limited winery to the purchasing limited winery at

a price lower than the price charged by the board.]

* * *

(3) Separately or in conjunction with other limited

wineries, sell alcoholic cider, mead, wine and wine coolers

produced by the limited winery on no more than five (5) board-

approved locations other than the licensed premises, with no

bottling or production requirement at those additional board-

approved locations and under such conditions and regulations as

the board may enforce, to the board, to wine and spirits retail

licensees, to individuals and to brewery, hotel, restaurant,

club, grocery store and public service liquor licensees. If two

or more limited wineries apply to operate an additional board-

approved location in conjunction with each other, the wineries

need only have one board-approved manager for the location, need

only pay one application fee and need not designate specific or

distinct areas for each winery's licensed area. Each limited

winery must file an application for such an additional board-

approved location, and such location shall count as one of the

five permitted for each limited winery. Each limited winery is

responsible for keeping only its own complete records. A limited

winery may be cited for a violation of the recordkeeping

requirements of sections 512 and 513 pertaining to its own

records only.

20200HB2547PN3831 - 134 -

* * *

Section 505.4. Distilleries.--(a) The board may issue a

distillery of historical significance license to any distillery

which was established prior to January 1, 1875. The holder of

the license may manufacture and sell liquor produced on the

licensed premises to the board, to wine and spirits retail

licensees, to other entities licensed by the board and to the

public under such conditions and regulations as the board may

enforce. Production at the distillery of historical significance

shall be limited to an amount not to exceed twenty thousand

(20,000) gallons per year. The distillery does not need to

establish continuous operation since January 1, 1875, in order

to qualify for a license under this section.

(b) (1) The board may issue a limited distillery license

that will allow the holder thereof to operate a distillery that

shall not exceed production of one hundred thousand (100,000)

gallons of distilled liquor per year. The holder of the license

may manufacture and sell bottled liquors produced on the

licensed premises to the board, to wine and spirits retail

licensees, to other entities licensed by the board and to the

public between the hours of nine o'clock antemeridian and eleven

o'clock postmeridian so long as a specific code of distilled

liquor which is listed for sale as a stock item by the board in

State liquor stores may not be offered for sale at a licensed

limited distillery location at a price which is lower than that

charged by the board and under such conditions and regulations

as the board may enforce. The holder of a limited distillery

license may not sell a product or a substantially similar

product which is listed for sale as a stock item by the board in

State Liquor Stores to a licensee at a price which is lower than

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that charged by the board and under such conditions and

regulations as the board may enforce. The holder of a limited

distillery license may also sell wine and alcoholic cider

produced by a licensed limited winery, liquor produced by a

licensed distillery or limited distillery and malt or brewed

beverages produced by a licensed brewery for on-premises

consumption. The combined sales of wine, malt or brewed

beverages and liquor produced by another licensed distillery or

limited distillery may not, on a yearly basis, exceed fifty per

centum of the on-premises sales of the limited distillery's own

sales of liquor for the preceding calendar year: however, if a

limited distillery did not operate for an entire calendar year

during the preceding year, then its combined sales of wine, malt

or brewed beverages and liquor produced by another licensed

distillery or limited distillery may not, on a yearly basis,

exceed fifty per centum of the on-premises sales of the limited

distillery's own liquor for that year.

* * *

section 505 may sell bottled liquors produced on the licensed

premises to the board, to wine and spirits retail licensees and

to other entities licensed by the board and to the public

between the hours of nine o'clock antemeridian and eleven

o'clock postmeridian so long as a specific code of distilled

liquor which is listed for sale as a stock item by the board in

State liquor stores may not be offered for sale at a licensed

distillery location at a price which is lower than that charged

by the board and under such conditions and regulations as the

board may enforce. The holder of a distillery license may not

sell a product or a substantially similar product which is

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listed for sale as a stock item by the board in State Liquor

Stores to a licensee at a price which is lower than that charged

by the board and under such conditions and regulations as the

board may enforce. The holder of a distillery license may also

sell its liquor, wine and alcoholic cider produced by a licensed

limited winery, liquor produced by a licensed distillery or

limited distillery and malt or brewed beverages produced by a

licensed brewery for on-premises consumption. The combined sales

of wine, malt or brewed beverages and liquor produced by another

licensed distillery or limited distillery may not, on a yearly

basis, exceed fifty per centum of the on-premises sales of the

distillery's own sales of liquor for the preceding calendar

year: however, if a distillery did not operate for an entire

calendar year during the preceding year, then its combined sales

of wine, malt or brewed beverages and liquor produced by another

licensed distillery or limited distillery may not, on a yearly

basis, exceed fifty per centum of the on-premises sales of the

distillery's own liquor for that year.

* * *

Section 508. License Fees.--(a) The annual fee for every

license issued to a limited winery or a winery shall be as

prescribed in section 614-A of the act of April 9, 1929

(P.L.177, No.175), known as "The Administrative Code of 1929."

The fee for every license issued to a distillery (manufacturer)

shall be as prescribed in section 614-A of "The Administrative

Code of 1929." The annual fee for all other licenses shall be as

prescribed in section 614-A of "The Administrative Code of

1929." An applicant for renewal of a license issued under this

article shall file a written application with the board together

with an application surcharge of seven hundred dollars ($700).

20200HB2547PN3831 - 137 -

Whenever any checks issued in payment of filing and/or license

fees shall be returned to the board as dishonored, the board

shall charge a fee of five dollars ($5.00) per hundred dollars

or fractional part thereof, plus all protest fees, to the maker

of such check submitted to the board. Failure to make full

payment or pay the face amount of the check in full and all

charges thereon as herein required within ten days after demand

has been made by the board upon the maker of the check, the

license of such person shall not be renewed for the license

period or validated for any interim period for such year.

* * *

Section 31. Section 801 of the act is amended by adding a

subsection to read:

Section 801. Moneys Paid Into Liquor License Fund and

Returned to Municipalities.--* * *

(a.1) The license fees for grocery stores collected by the

board under the provisions of this act shall be paid into the

State Treasury through the Department of Revenue into The State

Stores Fund.

* * *

Section 32. The act is amended by adding an article to read:

ARTICLE VIII-A

SUPPLEMENTAL PROVISIONS

Section 801-A. Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Emergency act." The act of June 6, 1936 (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

20200HB2547PN3831 - 138 -

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."

Section 802-A. Controlling provisions.

For the purpose of the emergency act, the following shall

apply:

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

(i) The board only to the extent the board is making

sales:

(A) to the general public; or

(B) of liquor sold for on-premises consumption

to licensees holding a license permitting on-premises

consumption of liquor.

(ii) A wine or spirits retail licensee.

(iii) A wine or spirits wholesale licensee only to

the extent the wholesale licensee makes sales of liquor

sold for on-premises consumption to licensees holding a

license permitting on-premises consumption of liquor.

(iv) A grocery store licensee only to the extent

that the sales of liquor are not sold under a license

authorizing the on-premises consumption of liquor.

(v) Any entity selling liquor to another entity that

is not required to pay the tax imposed by the emergency

act.

(2) The term "net price" shall mean total receipts

received from the sale of liquor without any deductions for

cost or expenses, including, but not limited to:

(i) Any reimbursement from manufacturers, purchasers

or other parties.

(ii) In the case of a bundled sale that includes

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liquor, the term includes the entire purchase price

charged for the bundled sale, unless a fair market price

for the liquor is separately stated on the sales document

given to the purchaser, then the term shall only include

the price charged for the liquor.

(3) The tax imposed by the emergency act shall be

included in any advertised price, shelf price or any other

price for a container of liquor and shall not be listed as an

itemized tax on any sales receipt for the sale of liquor.

(4) The emergency act shall be administered and enforced

under the provisions of Article II of the act of March 4,

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

including the provisions of Article II concerning returns,

payment, assessment and enforcement where applicable, except

that the exclusions and exemptions under Article II of the

Tax Reform Code of 1971 shall not apply to the emergency act,

except for the resale exemption, provided that exemption

shall not be claimed for liquor purchased for on-premises

consumption.

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

Section 33. This act shall take effect as follows:

(1) The addition of Article III-A of the act shall take

effect in 120 days.

(2) The addition of sections 401.1, 403.1, 404.1 and

406.2 of the act shall take effect in 60 days.

(3) The amendment or repeal of sections 207, 215 and 301

of the act shall take effect upon completion of divestiture

of retail sale operations under Subarticle B of Article III-A

of the act.

(4) The amendment of section 208 of the act shall take

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effect upon completion of divestiture of wholesale operation

under Subarticle C of Article III-A of the act.

(5) The remainder of this act shall take effect

immediately.

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