PRINTER'S NO. 661
No. 606 Session of 1977
INTRODUCED BY MANDERINO, CIANCIULLI, MISCEVICH, RHODES AND
BROWN, MARCH 14, 1977
REFERRED TO COMMITTEE ON LIQUOR CONTROL, MARCH 14, 1977
AN ACT
1 Amending the act of April 12, 1951 (P.L.90, No.21), entitled "An
2 act relating to alcoholic liquors, alcohol and malt and
3 brewed beverages; amending, revising, consolidating and
4 changing the laws relating thereto; regulating and
5 restricting the manufacture, purchase, sale, possession,
6 consumption, importation, transportation, furnishing, holding
7 in bond, holding in storage, traffic in and use of alcoholic
8 liquors, alcohol and malt and brewed beverages and the
9 persons engaged or employed therein; defining the powers and
10 duties of the Pennsylvania Liquor Control Board; providing
11 for the establishment and operation of State liquor stores,
12 for the payment of certain license fees to the respective
13 municipalities and townships, for the abatement of certain
14 nuisances and, in certain cases, for search and seizure
15 without warrant; prescribing penalties and forfeitures;
16 providing for local option, and repealing existing laws,"
17 providing for wholesale discounts; creating a new class of
18 licenses entitled "retail store licenses" and increasing
19 certain filing fees.
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:
22 Section 1. Section 102, act of April 12, 1951 (P.L.90,
23 No.21), known as the "Liquor Code," is amended by adding
24 definitions to read:
25 Section 102. Definitions.--The following words or phrases,
26 unless the context clearly indicates otherwise, shall have the
1 meanings ascribed to them in this section:
2 * * *
3 "Retail store" shall mean a store whose principal business is
4 the sale of food at retail for consumption off the premises, or
5 a department store.
6 "Retail store licensee" shall mean any person licensed by the
7 board to engage in the purchase only from distributors and the
8 resale of either malt or brewed beverages except to importing
9 distributors and distributors for consumption off the premises
10 where sold.
11 * * *
12 Section 2. Clause (b) of section 207 of the act, amended
13 July 27, 1973 (P.L.247, No.70), is amended to read:
14 Section 207. General Powers of Board.--Under this act, the
15 board shall have the power and its duty shall be:
16 * * *
17 (b) To control the manufacture, possession, sale,
18 consumption, importation, use, storage, transportation and
19 delivery of liquor, alcohol and malt or brewed beverages in
20 accordance with the provisions of this act, and to fix the
21 wholesale and retail prices at which liquors and alcohol shall
22 be sold at Pennsylvania Liquor Stores: Provided, That in fixing
23 the sale prices, the board shall not give any preference or make
24 any discrimination as to classes, brands or otherwise, except to
25 the extent and for the length of time necessary to sell such
26 classes or brands in compliance with any Federal action freezing
27 or otherwise controlling the price of said classes or brands, or
28 except where special sales are deemed necessary to move
29 unsaleable merchandise, or except where the addition of a
30 service or handling charge to the fixed sales price of any
19770H0606B0661 - 2 -
1 merchandise in the same comparable price bracket, regardless of
2 class, brand or otherwise, is, in the opinion of the board,
3 required for the efficient operation of the State store system.
4 If the board allows a wholesale discount to any person licensed
5 by the board to engage in the retail sale of liquor, the amount
6 of such discount shall be twenty-five per centum of the retail
7 price set by the board. The board shall require each
8 Pennsylvania manufacturer and each nonresident manufacturer of
9 liquors, other than wine, selling such liquors to the board,
10 which are not manufactured in this Commonwealth, to make
11 application for and be granted a permit by the board before such
12 liquors not manufactured in this Commonwealth shall be purchased
13 from such manufacturer. Each such manufacturer shall pay for
14 such permit a fee which, in the case of a manufacturer of this
15 Commonwealth, shall be equal to that required to be paid, if
16 any, by a manufacturer or wholesaler of the state, territory or
17 country of origin of the liquors, for selling liquors
18 manufactured in Pennsylvania, and in the case of a nonresident
19 manufacturer, shall be equal to that required to be paid, if
20 any, in such state, territory or country by Pennsylvania
21 manufacturers doing business in such state, territory or
22 country. In the event that any such manufacturer shall, in the
23 opinion of the board, sell or attempt to sell liquors to the
24 board through another person for the purpose of evading this
25 provision relating to permits, the board shall require such
26 person, before purchasing liquors from him or it, to take out a
27 permit and pay the same fee as hereinbefore required to be paid
28 by such manufacturer. All permit fees so collected shall be paid
29 into the State Stores Fund. The board shall not purchase any
30 alcohol or liquor fermented, distilled, rectified, compounded or
19770H0606B0661 - 3 -
1 bottled in any state, territory or country, the laws of which
2 result in prohibiting the importation therein of alcohol or
3 liquor, fermented, distilled, rectified, compounded or bottled
4 in Pennsylvania.
5 * * *
6 Section 3. The section heading and subsections (b) and (c)
7 of section 431 of the act, subsection (b) amended October 9,
8 1967 (P.L.395, No.179), and subsection (c) amended May 5, 1970
9 (P.L.342, No.110), are amended and the section is amended by
10 adding a subsection to read:
11 Section 431. Malt and Brewed Beverages Manufacturers',
12 Distributors', [and] Importing Distributors' and Retail Store
13 Licenses.--* * *
14 (b) The board shall issue to any reputable person who
15 applies therefor, pays the license fee hereinafter prescribed,
16 and files the bond hereinafter required, a distributor's or
17 importing distributor's license for the place which such person
18 desires to maintain for the sale of malt or brewed beverages,
19 not for consumption on the premises where sold, and in
20 quantities of not less than twenty-four containers, each
21 container holding seven fluid ounces or more, or twelve
22 containers, each container holding twenty-four fluid ounces or
23 more, except original containers containing one hundred twenty-
24 eight ounces or more which may be sold separately and such
25 containers to be the original containers as prepared for the
26 market by the manufacturer at the place of manufacture: And
27 provided further, That the board shall have the discretion to
28 refuse a license to any person or to any corporation,
29 partnership or association if such person, or any officer or
30 director of such corporation, or any member or partner of such
19770H0606B0661 - 4 -
1 partnership or association shall have been convicted or found
2 guilty of a felony within a period of five years immediately
3 preceding the date of application for the said license.
4 The board shall issue to any reputable person who operates a
5 retail store, a retail store license for the premises at which
6 he operates such retail store, such license to permit the sale
7 at retail of either malt or brewed beverages for consumption off
8 the premises where sold in quantities of not more than twelve
9 containers, each container holding seven fluid ounces or more or
10 six containers, each container holding twenty-four fluid ounces
11 or more, or an aggregate of one hundred forty-four fluid ounces.
12 The board shall only issue such a retail store license where
13 business of the applicant had total gross sales in excess of
14 fifty thousand dollars ($50,000) per annum for the year
15 preceding the year in which such application is made: Provided,
16 however, That upon application therefor the board shall issue a
17 temporary retail store license to any such reputable person who
18 has not engaged in the operation of a retail store for one year
19 preceding the year of application, where the applicant is able
20 to show to the satisfaction of the board the reasonable
21 probability of total gross sales of fifty thousand dollars
22 ($50,000) for his first year of business. The temporary retail
23 store license shall be effective for one year from the date of
24 issuance, at which time the board shall issue to the holder
25 thereof a retail store license if the holder of the temporary
26 retail store license is otherwise eligible.
27 A retail store licensee who establishes or maintains more
28 than one location for a retail store shall be issued a separate
29 retail store license or temporary license for each such
30 location, providing the retail store at each location qualifies
19770H0606B0661 - 5 -
1 under the total gross sales requirements herein established.
2 In any municipality where by vote of the electors the sale of
3 malt or brewed beverages by distributors or importing
4 distributors is not permitted, a retail store license or
5 temporary license shall not be issued or reissued.
6 Except as hereinafter provided, such license shall authorize
7 the holder thereof to sell or deliver malt or brewed beverages
8 in quantities above specified anywhere within the Commonwealth
9 of Pennsylvania, which, in the case of distributors, have been
10 purchased only from persons licensed under this act as
11 manufacturers, or importing distributors, and in the case of
12 importing distributors, have been purchased from manufacturers
13 or persons outside this Commonwealth engaged in the legal sale
14 of malt or brewed beverages, or from manufacturers, or importing
15 distributors licensed under this article and in the case of
16 retail store licensees, have been purchased from distributors.
17 Each out of State manufacturer of malt or brewed beverages
18 whose products are sold and delivered in this Commonwealth shall
19 give distributing rights for such products in designated
20 geographical areas to specific importing distributors, and such
21 importing distributor shall not sell or deliver malt or brewed
22 beverages manufactured by the out of State manufacturer to any
23 person issued a license under the provisions of this act whose
24 licensed premises are not located within the geographical area
25 for which he has been given distributing rights by such
26 manufacturer: Provided, That the importing distributor holding
27 such distributing rights for such product shall not sell or
28 deliver the same to another importing distributor without first
29 having entered into a written agreement with the said secondary
30 importing distributor setting forth the terms and conditions
19770H0606B0661 - 6 -
1 under which such products are to be resold within the territory
2 granted to the primary importing distributor by the
3 manufacturer.
4 When a Pennsylvania manufacturer of malt or brewed beverages
5 licensed under this article, names or constitutes a distributor
6 or importing distributor as the primary or original supplier of
7 his product, he shall also designate the specific geographical
8 area for which the said distributor or importing distributor is
9 given distributing rights, and such distributor or importing
10 distributor shall not sell or deliver the products of such
11 manufacturer to any person issued a license under the provisions
12 of this act whose licensed premises are not located within the
13 geographical area for which distributing rights have been given
14 to the distributor and importing distributor by the said
15 manufacturer: Provided, That the importing distributor holding
16 such distributing rights for such product shall not sell or
17 deliver the same to another importing distributor without first
18 having entered into a written agreement with the said secondary
19 importing distributor setting forth the terms and conditions
20 under which such products are to be resold within the territory
21 granted to the primary importing distributor by the
22 manufacturer. Nothing herein contained shall be construed to
23 prevent any manufacturer from authorizing the importing
24 distributor holding the distributing rights for a designated
25 geographical area from selling the products of such manufacturer
26 to another importing distributor also holding distributing
27 rights from the same manufacturer for another geographical area,
28 providing such authority be contained in writing and a copy
29 thereof be given to each of the importing distributors so
30 affected.
19770H0606B0661 - 7 -
1 (c) The aforesaid licenses, except retail store licenses or
2 temporary licenses, shall be issued only to reputable
3 individuals, partnerships and associations who are, or whose
4 members are, citizens of the United States and have for two
5 years prior to the date of their applications been residents of
6 the Commonwealth of Pennsylvania or to reputable corporations
7 organized or duly registered under the laws of the Commonwealth
8 of Pennsylvania. Such licenses shall be issued to corporations
9 duly organized or registered under the laws of the Commonwealth
10 of Pennsylvania only when it appears that all of the officers
11 and directors of the corporation are citizens of the United
12 States and have been residents of the Commonwealth of
13 Pennsylvania for a period of at least two years prior to the
14 date of application, and that at least fifty-one per centum of
15 the capital stock of such corporation is actually owned by
16 individuals who are citizens of the United States and have been
17 residents of the Commonwealth of Pennsylvania for a period of at
18 least two years prior to the date of application: Provided, That
19 the provisions of this subsection with respect to residence
20 requirements shall not apply to individuals, partners, officers,
21 directors and owners of capital stock, of corporations licensed
22 or applying for licenses as manufacturers of malt or brewed
23 beverages, nor shall the provisions of this subsection with
24 respect to stockholder requirements apply to corporations
25 licensed or applying for licenses as manufacturers of malt or
26 brewed beverages.
27 (d) Retail store licenses or temporary licenses shall be
28 issued only to reputable individuals, partnerships and
29 associations who are, or whose members are, citizens of the
30 United States, or to reputable corporations organized or duly
19770H0606B0661 - 8 -
1 registered under the laws of the Commonwealth of Pennsylvania.
2 Such licenses shall be issued to corporations duly organized or
3 registered under the laws of the Commonwealth of Pennsylvania
4 only when it appears that all of the officers and directors of
5 the corporation are citizens of the United States.
6 Section 4. Subsection (a) of section 434 of the act is
7 amended to read:
8 Section 434. License Year.--(a) Licenses issued under this
9 article to distributors, importing distributors, retail store
10 licensees and retail dispensers shall, unless revoked in the
11 manner provided in this act, be valid for the license year which
12 may be established by the board for the particular license
13 district in which the license issues.
14 * * *
15 Section 5. Section 435 of the act, amended September 28,
16 1961 (P.L.1728, No.702), is amended to read:
17 Section 435. Filing of Applications for Distributors',
18 Importing Distributors', Retail Store, and Retail Dispensers'
19 Licenses; Filing Fee.--Every person intending to apply for a
20 distributor's, importing distributor's, retail store, temporary
21 retail store, or retail dispenser's license, as aforesaid, in
22 any municipality of this Commonwealth, shall file with the board
23 his or its application. All such applications shall be filed at
24 a time to be fixed by the board for the particular license
25 district as set up by the board under the provisions of this
26 act. The applicant shall, at the time of filing the application
27 and bond, pay said board the filing fee of [twenty dollars
28 ($20)] seventy-five dollars ($75) or in the case of a renewal,
29 thirty-five dollars ($35), as hereinafter specified.
30 Section 6. The act is amended by adding a section to read:
19770H0606B0661 - 9 -
1 Section 436.1 Application for Retail Store Licenses or
2 Temporary Licenses.--Application for retail store licenses or
3 temporary licenses shall contain such information as the board
4 may require to determine eligibility of the applicant.
5 Section 7. The first paragraph and clause (h) of section 439
6 of the act, clause (h) amended September 28, 1961 (P.L.1728,
7 No.702), are amended and the section is amended by adding a
8 clause to read:
9 Section 439. Malt or Brewed Beverage License Fees.--No
10 public service license and no license to any manufacturer,
11 distributor, importing distributor, retail store or retail
12 dispenser shall be issued under the provisions of this
13 subdivision (B) until the licensee shall have first paid an
14 annual license fee as follows:
15 * * *
16 (c.1) In the case of a retail store license, the fee for a
17 temporary license shall be five hundred dollars ($500). The
18 annual fee for each retail store license shall be five hundred
19 dollars ($500).
20 * * *
21 (h) The fee for filing applications for licenses shall be
22 seventy-five dollars ($75) and for renewals shall be [twenty
23 dollars ($20)] thirty-five dollars ($35) which, together with
24 fees for transfers, shall be paid to the board.
25 * * *
26 Section 8. Subsection (a) of section 461 of the act, amended
27 June 9, 1972 (P.L.379, No.108), is amended to read:
28 Section 461. Limiting Number of Retail Licenses To Be Issued
29 In Each Municipality.--(a) No licenses shall hereafter be
30 granted by the board for the retail sale of malt or brewed
19770H0606B0661 - 10 -
1 beverages or the retail sale of liquor and malt or brewed
2 beverages in excess of one of such licenses of any class for
3 each two thousand inhabitants in any municipality, exclusive of
4 licenses granted to airport restaurants, municipal golf courses
5 and hotels, as defined in this section, retail stores and clubs;
6 but at least one such license may be granted in each
7 municipality and in each part of a municipality where such
8 municipality is split so that each part thereof is separated by
9 another municipality, except in municipalities where the
10 electors have voted against the granting of any retail licenses.
11 Nothing contained in this section shall be construed as denying
12 the right to the board to renew or to transfer existing retail
13 licenses of any class notwithstanding that the number of such
14 licensed places in a municipality shall exceed the limitation
15 hereinbefore prescribed; but where such number exceeds the
16 limitation prescribed by this section, no new license, except
17 for hotels, municipal golf courses, retail stores and airport
18 restaurants as defined in this section, shall be granted so long
19 as said limitation is exceeded.
20 * * *
21 Section 9. Subsection (d) of section 465 of the act is
22 amended by adding a clause to read:
23 Section 465. All Licensees to Furnish Bond.--* * *
24 (d) The penal sum of the respective bonds filed under the
25 provisions of this section shall be as follows:
26 * * *
27 (8) Retail store licenses, two thousand dollars ($2,000) for
28 each license or temporary license subject to a maximum of five
29 thousand dollars ($5,000) for any holder of more than one
30 license or temporary license.
19770H0606B0661 - 11 -
1 * * *
2 Section 10. Clauses (4) and (16) of section 492 of the act
3 are amended and the section is amended by adding clauses to
4 read:
5 Section 492. Unlawful Acts Relative to Malt or Brewed
6 Beverages and Licensees.--
7 It shall be unlawful--
8 * * *
9 (4) Sunday Sales of Malt or Brewed Beverages by
10 Manufacturers, Importing Distributors, [or] Distributors or
11 Retail Store Licensees. For any manufacturer of malt or brewed
12 beverages, importing distributor, [or] distributor or retail
13 store licensee, or the servants, agents or employes of the same,
14 to sell, trade or barter in malt or brewed beverages between the
15 hours of twelve o'clock midnight of any Saturday and two o'clock
16 in the forenoon of the following Monday, and for any retail
17 store licensee or the servants, agents or employes of the same,
18 to sell malt or brewed beverages on any weekday between the
19 hours of two o'clock antemeridian and seven o'clock
20 antemeridian.
21 * * *
22 (16) Distributors, Retail Store Licensees and Importing
23 Distributors Failing to Keep Records. For any importing
24 distributor, retail store licensee, or distributor engaged in
25 the sale of products, other than malt or brewed beverages, to
26 fail to keep such complete separate records covering in every
27 respect his transactions in malt or brewed beverages as the
28 board shall by regulation require.
29 * * *
30 (18) Deliveries by Retail Store Licensees. For retail store
19770H0606B0661 - 12 -
1 licensees to make deliveries of malt or brewed beverages off the
2 premises.
3 (19) Sales Below Cost by Retail Store Licensees. For retail
4 store licensees to sell malt or brewed beverages, below their
5 wholesale cost.
6 Section 11. Clause (15) of section 493 of the act, amended
7 June 14, 1957 (P.L.322, No.170), is amended to read:
8 Section 493. Unlawful Acts Relative to Liquor, Malt and
9 Brewed Beverages and Licensees.--The term "licensee," when used
10 in this section shall mean those persons licensed under the
11 provisions of Article IV, unless the context clearly indicates
12 otherwise.
13 It shall be unlawful--
14 * * *
15 (15) Cashing Pay Roll, Public Assistance, Unemployment
16 Compensation or Any Other Relief Checks. For any licensee or his
17 servants, agents or employes to cash pay roll checks or to cash,
18 receive, handle or negotiate in any way Public Assistance,
19 Unemployment Compensation or any other relief checks. This
20 provision shall not apply to retail store licensees.
21 * * *
22 Section 12. Section 5 of the act of May 13, 1915 (P.L.286,
23 No.177), known as the "Child Labor Law," is repealed insofar as
24 it prohibits the employment of minors from selling or handling
25 malt or brewed beverages, provided (1) that such minors are not
26 engaged in the actual selling of malt or brewed beverages, to
27 customers, (2) that minors are employed by a person holding a
28 retail store license issued under the Pennsylvania Liquor
29 Control Board, and (3) that an adult acting in a supervisory
30 capacity is on the licensed premises.
19770H0606B0661 - 13 -
1 Section 13. This act shall take effect one year from the
2 date of final enactment.
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