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                               CORRECTIVE REPRINT
        PRIOR PRINTER'S NO. 1781                      PRINTER'S NO. 1786

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

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
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     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.
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     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,
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     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.













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