CORRECTIVE REPRINT PRIOR PRINTER'S NO. 1781 PRINTER'S NO. 1786
No. 1371 Session of 1998
INTRODUCED BY FUMO, MELLOW, GREENLEAF AND WHITE, MARCH 16, 1998
REFERRED TO LAW AND JUSTICE, MARCH 16, 1998
AN ACT 1 Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as 2 reenacted, "An act relating to alcoholic liquors, alcohol and 3 malt and brewed beverages; amending, revising, consolidating 4 and 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 requiring liability insurance of all licensees. 18 The General Assembly of the Commonwealth of Pennsylvania 19 hereby enacts as follows: 20 Section 1. Section 207 of the act of April 12, 1951 (P.L.90, 21 No.21), known as the Liquor Code, reenacted and amended June 29, 22 1987 (P.L.32, No.14), is amended to read: 23 Section 207. General Powers of Board.--Under this act, the 24 board shall have the power and its duty shall be:
1 (a) To buy, import or have in its possession for sale, and 2 sell liquor and alcohol in the manner set forth in this act: 3 Provided, however, That all purchases shall be made subject to 4 the approval of the State Treasurer, or his designated deputy. 5 The board shall buy liquor and alcohol at the lowest price and 6 in the greatest variety reasonably obtainable. 7 (b) To control the manufacture, possession, sale, 8 consumption, importation, use, storage, transportation and 9 delivery of liquor, alcohol and malt or brewed beverages in 10 accordance with the provisions of this act, and to fix the 11 wholesale and retail prices at which liquors and alcohol shall 12 be sold at Pennsylvania Liquor Stores. Prices shall be 13 proportional with prices paid by the board to its suppliers and 14 shall reflect any advantage obtained through volume purchases by 15 the board. The board may establish a preferential price 16 structure for wines produced within this Commonwealth for the 17 promotion of such wines, as long as the price structure is 18 uniform within each class of wine purchased by the board. The 19 board shall require each Pennsylvania manufacturer and each 20 nonresident manufacturer of liquors, other than wine, selling 21 such liquors to the board, which are not manufactured in this 22 Commonwealth, to make application for and be granted a permit by 23 the board before such liquors not manufactured in this 24 Commonwealth shall be purchased from such manufacturer. Each 25 such manufacturer shall pay for such permit a fee which, in the 26 case of a manufacturer of this Commonwealth, shall be equal to 27 that required to be paid, if any, by a manufacturer or 28 wholesaler of the state, territory or country of origin of the 29 liquors, for selling liquors manufactured in Pennsylvania, and 30 in the case of a nonresident manufacturer, shall be equal to 19980S1371B1786 - 2 -
1 that required to be paid, if any, in such state, territory or 2 country by Pennsylvania manufacturers doing business in such 3 state, territory or country. In the event that any such 4 manufacturer shall, in the opinion of the board, sell or attempt 5 to sell liquors to the board through another person for the 6 purpose of evading this provision relating to permits, the board 7 shall require such person, before purchasing liquors from him or 8 it, to take out a permit and pay the same fee as hereinbefore 9 required to be paid by such manufacturer. All permit fees so 10 collected shall be paid into the State Stores Fund. The board 11 shall not purchase any alcohol or liquor fermented, distilled, 12 rectified, compounded or bottled in any state, territory or 13 country, the laws of which result in prohibiting the importation 14 therein of alcohol or liquor, fermented, distilled, rectified, 15 compounded or bottled in Pennsylvania. 16 (c) To determine the municipalities within which 17 Pennsylvania Liquor Stores shall be established and the 18 locations of the stores within such municipalities. 19 (d) To grant and issue all licenses and to grant, issue, 20 suspend and revoke all permits authorized to be issued under 21 this act. 22 (e) Through the Department of General Services as agent, to 23 lease and furnish and equip such buildings, rooms and other 24 accommodations as shall be required for the operation of this 25 act. 26 (f) To appoint, fix the compensation and define the powers 27 and duties of such managers, officers, inspectors, examiners, 28 clerks and other employes as shall be required for the operation 29 of this act, subject to the provisions of The Administrative 30 Code of 1929 and the Civil Service Act. 19980S1371B1786 - 3 -
1 (g) To determine the nature, form and capacity of all 2 packages and original containers to be used for containing 3 liquor, alcohol or malt or brewed beverages. 4 (h) Without in any way limiting or being limited by the 5 foregoing, to do all such things and perform all such acts as 6 are deemed necessary or advisable for the purpose of carrying 7 into effect the provisions of this act and the regulations made 8 thereunder. 9 (i) From time to time, to make such regulations not 10 inconsistent with this act as it may deem necessary for the 11 efficient administration of this act. The board shall cause such 12 regulations to be published and disseminated throughout the 13 Commonwealth in such manner as it shall deem necessary and 14 advisable or as may be provided by law. Such regulations adopted 15 by the board shall have the same force as if they formed a part 16 of this act. 17 (j) By regulation, to provide for the use of a computerized 18 referral system to assist consumers in locating special items at 19 Pennsylvania Liquor Stores and for the use of electronic 20 transfer of funds and credit cards for the purchase of liquor 21 and alcohol at Pennsylvania Liquor Stores. 22 (k) To determine the requirements of liability insurance 23 pursuant to the issuance of a license authorized under this act. 24 In determining the requirements for said insurance, the board 25 may consider objective factors such as past citation record, 26 crime rates of the surrounding neighborhood or such other 27 criteria deemed appropriate by the board. 28 Section 2. The act is amended by adding a section to read: 29 Section 207.1. Prohibitions Due to Lack of Liability 30 Insurance.--No liquor license under this act may be issued, 19980S1371B1786 - 4 -
1 transferred or otherwise obtained, or existing license renewed, 2 unless the applicant demonstrates proof of liability insurance 3 to be effective prior to the licensed premises being open for 4 business in an amount and form satisfactory to the board. A 5 licensee shall maintain liability insurance during the entire 6 period for which the license is issued. Failure to maintain said 7 insurance shall be deemed a violation of this act and constitute 8 grounds for immediate revocation of the license. This section 9 shall apply to existing licenses, transfers, renewals and new 10 applications. 11 Section 3. This act shall take effect in 60 days. A27L47JLW/19980S1371B1786 - 5 -