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                                                      PRINTER'S NO. 1745

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1273 Session of 2008


        INTRODUCED BY WONDERLING, M. WHITE, ARMSTRONG, PICCOLA, EARLL
           AND FOLMER, FEBRUARY 8, 2008

        REFERRED TO LAW AND JUSTICE, FEBRUARY 8, 2008

                                     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     further providing for the retail sale of wine and liquor;
    18     regulating service of alcoholic beverages; conferring powers
    19     and duties on the Pennsylvania Liquor Control Board and the
    20     Legislative Reference Bureau; establishing an advisory
    21     committee; imposing penalties; providing for a request for
    22     proposal concerning recommendations on the sale of State
    23     liquor stores to private investors; and making an
    24     appropriation.

    25     The General Assembly of the Commonwealth of Pennsylvania
    26  hereby enacts as follows:
    27     Section 1.  The act of April 12, 1951 (P.L.90, No.21), known
    28  as the Liquor Code, reenacted and amended June 29, 1987 (P.L.32,


     1  No.14), is amended by adding articles to read:
     2                          ARTICLE VIII-A.
     3                  RETAIL SALE OF WINE AND LIQUOR.
     4  Section 801-A.  Legislative intent.
     5     (a)  Declaration.--The General Assembly hereby finds and
     6  declares that:
     7         (1)  the sale of liquor and wine at retail should no
     8     longer be by the Commonwealth, but rather by retail
     9     licensees;
    10         (2)  the health and welfare of the citizens of this
    11     Commonwealth will be adequately protected by the regulation
    12     of private licensees through strict enforcement of laws and
    13     rules relating to the sale of liquor and wine;
    14         (3)  the sale of liquor and wine through retail licenses
    15     will improve customer service, selection and price; and
    16         (4)  the operation and efficiency of State government
    17     will be improved.
    18     (b)  Purpose.--It is the purpose of the General Assembly to:
    19         (1)  continue and increase revenue to the Commonwealth;
    20         (2)  provide a system of controls, including limitations
    21     on the number of retail applications and enforcement
    22     procedures to discourage the intemperate use of liquor;
    23         (3)  create incentives and facilitate the transition of
    24     employees to other employment;
    25         (4)  minimize disruption of services to the public; and
    26         (5)  enhance alcohol education efforts for the benefit of
    27     the children of this Commonwealth.
    28  Section 802-A.  Definitions.
    29     The following words and phrases when used in this article
    30  shall have the meanings given to them in this section unless the
    20080S1273B1745                  - 2 -     

     1  context clearly indicates otherwise:
     2     "Franchise."  A written agreement between the board and a
     3  successful bidder in which the board agrees to issue a wine and
     4  spirits store license to the successful bidder for a period of
     5  30 years within a specified geographic area for the
     6  establishment and operation of a wine and spirits store
     7  consistent with the provisions of this act.
     8     "Licensee."  Any person who successfully bids for a franchise
     9  and who applies for and receives a license for the operation of
    10  a wine and spirits store for the retail sale of wine and liquor
    11  for off-premises consumption.
    12  Section 803-A.  Closure of State stores and initial franchises.
    13     (a)  Powers and duties.--It shall be the power and duty of
    14  the board to carry out an orderly transition to a wine and
    15  spirits store system in a manner which is consistent with this
    16  article and other laws of this Commonwealth and which maintains
    17  a continuous level of service to the public.
    18     (b)  Franchise zones.--Subject to the provisions of this
    19  article, the board shall establish 428 franchise zones within
    20  this Commonwealth for the issuance of wine and spirit store
    21  licenses granting to a licensee the exclusive authority to sell
    22  liquor and wine at retail for off-premises consumption within
    23  each franchise zone. The board in establishing each franchise
    24  zone shall ensure the delivery of services currently provided by
    25  State stores. At a minimum there shall be a wine and spirits
    26  store located in each county.
    27     (c)  Sale.--
    28         (1)  The board shall establish a schedule for the sale of
    29     exclusive wine and spirits store franchises within the
    30     franchise zones established under to subsection (b) by sale
    20080S1273B1745                  - 3 -     

     1     to the highest responsible bidder in accordance with this
     2     article. The board may establish a staggered schedule for the
     3     sale of wine and spirits store franchises in order to
     4     maintain a continuous level of service to the public.
     5         (2)  The minimum bid for a franchise shall be $50,000.
     6         (3)  The franchise shall be valid for a period of 30
     7     years from the date of issuance unless sooner forfeited,
     8     abandoned or revoked pursuant to the provisions of this act.
     9         (4)  No applicant may hold, directly or indirectly:
    10             (i)  more than 10% of the franchises within this
    11         Commonwealth;
    12             (ii)  more than 40% of the franchises in any one
    13         county which has five or more franchises; and
    14             (iii)  all the franchises in any one county which has
    15         less than five franchises.
    16     (d)  Implementation.--In implementing the provisions of this
    17  article, the board shall have the following additional powers
    18  and duties:
    19         (1)  Prescribe application forms for persons desiring to
    20     acquire a wine and spirits store license.
    21         (2)  Adopt an orderly procedure for the investigation,
    22     processing and approval of applications for franchises and
    23     wine and spirits store licenses.
    24         (3)  Develop the form of the wine and spirits store
    25     license.
    26         (4)  Disseminate information to the public relating to
    27     the sale of franchises and the issuance of wine and spirits
    28     store licenses.
    29         (5)  Make available for public inspection the most recent
    30     inventory of the stock, equipment and other assets of each
    20080S1273B1745                  - 4 -     

     1     State store as well as a history of sales by product code and
     2     State store location for the last five years.
     3         (6)  Enforce the provisions of this article.
     4  Section 804-A.  Application for wine and spirits store
     5                 franchises and licenses.
     6     (a)  Bid.--No person may bid upon, purchase or otherwise
     7  acquire a wine and spirits store franchise unless the applicant
     8  has satisfied all the prescribed requirements of this article
     9  and the board has approved the applicant's qualification to hold
    10  a wine and spirits store franchise and license under this
    11  article.
    12     (b)  Written application.--Prior to the submission of a bid
    13  for a retail liquor store franchise, each applicant shall file a
    14  written application, with any required application fee, in such
    15  form and containing such information as the board shall from
    16  time to time prescribe. The application shall contain, at a
    17  minimum, the following:
    18         (1)  The name and address of the applicant.
    19         (2)  Whether the applicant is an individual, corporation,
    20     limited liability company, limited partnership, partnership
    21     or association; the state of incorporation or organization,
    22     the names and residence addresses of each executive officer,
    23     director or general or limited partner; and the names and
    24     residence addresses of any person or interested individual
    25     owning, directly or indirectly, any legal or equitable
    26     interest in the operations of the licensed wine and spirits
    27     store proposed to be operated by the applicants, including
    28     all stockholders of any closed corporation and all
    29     stockholders having an ownership interest of 5% or more of
    30     the voting stock of a public corporation. As provided under
    20080S1273B1745                  - 5 -     

     1     section 404, parties not listed on the application, or any
     2     amendment thereof, can have no ownership interest in a
     3     licensed business.
     4         (3)  If the applicant is an association, the application
     5     shall set forth the names and addresses of the persons
     6     constituting the association.
     7         (4)  If the applicant is a corporation, the application
     8     must show that:
     9             (i)  the corporation was incorporated under the laws
    10         of Pennsylvania or holds a certificate of authority to
    11         transact business in Pennsylvania; and
    12             (ii)  all officers, directors and stockholders with
    13         an interest of 5% or more in the stock of the corporation
    14         are citizens of the United States.
    15         (5)  If the applicant is a natural person, the
    16     application must show that the applicant is a citizen of the
    17     United States and has been a resident of this Commonwealth
    18     for at least one year immediately preceding the application
    19     and that the applicant is not acting as an agent for any
    20     other person, partnership, association or group of persons
    21     beneficially interested in the license.
    22         (6)  The proposed location and ownership of the site for
    23     the wine and spirits store, if available.
    24         (7)  A sworn statement that the applicant and all parties
    25     with any direct or indirect interests in the operation of a
    26     wine and spirits store have never been convicted in this
    27     Commonwealth of any crime involving fraud, moral turpitude or
    28     racketeering or within a period of ten years immediately
    29     preceding the date of the application or have been convicted
    30     of any felony or of an equivalent crime in another state or
    20080S1273B1745                  - 6 -     

     1     of any crime in this or any other Federal or state court for
     2     a violation of any Federal or state liquor law. If the
     3     applicant is a corporation, limited partnership, partnership
     4     or association, the application shall contain a sworn
     5     statement that none of the executive officers, directors or
     6     general or limited partners, or any person owning, directly
     7     or indirectly, at least 5% of the outstanding stock of or
     8     partnership interests in such applicant has been so
     9     convicted.
    10         (8)  A statement that the applicant will continuously
    11     operate a wine and spirits store for the duration of the 30-
    12     year franchise period and will provide a level of service,
    13     including, but not limited to, hours of operation and product
    14     availability reasonably equivalent to the level of service
    15     currently provided in the same geographic area.
    16     (c)  Financial statement.--In addition to the application
    17  filed under subsection (a), the applicant shall provide a
    18  financial statement in the form and containing such information
    19  as the board shall from time to time prescribe to indicate the
    20  applicant's financial capability to operate the wine and spirits
    21  store and the estimated volume of business to be conducted in
    22  the wine and spirits store.
    23     (d)  Affirmation.--The application shall be signed and
    24  verified by oath or affirmation by the owner, if a natural
    25  person, or, in the case of an association, by a member or
    26  partner thereof, or, in the case of a corporation, by an
    27  executive officer thereof or any person specifically authorized
    28  by the corporation to sign the application, to which shall be
    29  attached written evidence of that authority.
    30     (e)  Additional information.--An applicant shall provide the
    20080S1273B1745                  - 7 -     

     1  board any additional information the board may request.
     2     (f)  Amended application.--When a change occurs in any
     3  information provided to the board, an amended application shall
     4  immediately be submitted to the board in the same manner as the
     5  original application.
     6  Section 805-A.  Issuance of licenses.
     7     (a)  Qualifications.--Only those applicants for wine and
     8  spirits store licenses issued under this section who meet all of
     9  the requirements of this subsection shall be qualified to
    10  participate in the sale conducted under this article. The
    11  qualifications are as follows:
    12         (1)  applicants shall demonstrate, by submitting
    13     financial statements, that the applicants possess sufficient
    14     financial resources to operate a licensed wine and spirits
    15     store, pay all taxes due and owing to the Commonwealth and
    16     assume liability for the safe operation of the licensed
    17     premises;
    18         (2)  applicants shall file a certificate obtained from
    19     the Department of Revenue indicating whether the applicant
    20     has any current tax deficiencies due and owing the
    21     Commonwealth. No applicant shall be permitted to participate
    22     in the sale of franchises pursuant to this article if that
    23     applicant has any outstanding tax assessments or deficiencies
    24     except for amounts subject to timely appeal; and
    25         (3)  all required bonds and letters of credit shall be
    26     posted and are subject to forfeiture for violations of this
    27     article in the same manner as provided by sections 465 and
    28     466 of this act.
    29     (b)  Successful bidders.--Licenses shall be issued pursuant
    30  to this section to successful bidders upon demonstration that
    20080S1273B1745                  - 8 -     

     1  the licensee will comply with all of the following terms and
     2  conditions:
     3         (1)  notice shall be given to the board within 15 days of
     4     any change in financial interests as provided by subsection
     5     (a)(1);
     6         (2)  notice shall be given to the board within 15 days of
     7     any criminal indictments or convictions as provided under
     8     section 804-A(b)(7) and the ownership interest of any parties
     9     subject to such convictions shall be totally divested by the
    10     licensee within 30 days of the date of any conviction, guilty
    11     plea or of any conviction, guilty plea or plea of nolo
    12     contendere;
    13         (3)  licensees shall continue to maintain the bonding for
    14     the operation of the wine and spirits store required by this
    15     article;
    16         (4)  licensees shall remit to the board the emergency
    17     liquor tax as provided by the act of June 9, 1936 (1st
    18     Sp.Sess., P.L.13, No.4), entitled "An act imposing an
    19     emergency State tax on liquor, as herein defined, sold by the
    20     Pennsylvania Liquor Control Board; providing for the
    21     collection and payment of such tax; and imposing duties upon
    22     the Department of Revenue and the Pennsylvania Liquor Control
    23     Board"; licensees shall remit to the Department of Revenue
    24     the sales and use tax as provided by Article II of the act of
    25     March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
    26     1971;
    27         (5)  licensees shall acquire wine and liquor exclusively
    28     from the wholesale system as provided in this act and shall
    29     keep a detailed log of all wholesale wine and liquor
    30     transactions; and
    20080S1273B1745                  - 9 -     

     1         (6)  licensees shall establish adequate security to
     2     protect their inventory from unauthorized sale or diversion
     3     and prevent its unauthorized distribution.
     4  Section 806-A.  Disqualification.
     5     (a)  Board.--The board shall disqualify an applicant for a
     6  franchise or a wine and spirits store license if:
     7         (1)  The applicant has been convicted of a crime as
     8     provided under paragraph (4).
     9         (2)  Any executive officer, director or general or
    10     limited partner of the applicant, or any person owning,
    11     directly or indirectly, at least 5% of the outstanding stock
    12     of or partnership interest in the applicant, has been
    13     convicted of a crime as provided under paragraph (4).
    14         (3)  The applicant receives funds for the financing of
    15     any part of the wine and spirits store from any individual
    16     who has been convicted of a crime as provided under paragraph
    17     (4).
    18         (4)  In any instance in which an applicant or persons
    19     with financial interest in the license are under indictment
    20     for a felony or under investigation by a legally constituted
    21     grand jury, the board shall withhold approval or disapproval
    22     of the license until such time as all legal proceedings
    23     related to the felony are resolved.
    24         (5)  The applicant provides false or misleading
    25     information.
    26     (b)  False statement.--If any false statement is
    27  intentionally made in any part of the application, the affiant
    28  shall be guilty of a misdemeanor of the second degree and, upon
    29  conviction, shall be subject to the penalties provided by this
    30  act. In addition, the applicant shall be denied a franchise and
    20080S1273B1745                 - 10 -     

     1  a license or, if already granted, the franchise and license
     2  shall be revoked.
     3  Section 807-A.  Application procedure.
     4     (a)  Receipt.--Upon receipt of an application for a wine and
     5  spirits store franchise and license, and any other information
     6  the board may require, the board shall conduct an investigation
     7  of the applicant as deemed necessary or desirable.
     8     (b)  Investigation.--Upon the completion of an investigation
     9  under subsection (a), the board shall inform the applicant, in
    10  writing, whether the application has been approved or denied and
    11  shall post a copy of the decision in the office of the board.
    12     (c)  Denial.--If an application is denied, the board shall
    13  provide the applicant with the specific reasons for the denial.
    14  The applicant shall be entitled to a hearing if a hearing is
    15  requested within five days of the decision.
    16     (d)  Posting.--Every applicant for a wine and spirits store
    17  license or for the transfer of an existing license to another
    18  premises not then licensed shall post, for a period of at least
    19  60 days beginning with the day the application is filed with the
    20  board, in a conspicuous place on the outside of the premises or
    21  at the proposed new location for which the license is applied, a
    22  notice of the application in the form, of the size, and
    23  containing all information as the board may require by
    24  regulation.
    25     (e)  Hearing.--The board shall hold a hearing on any
    26  application for a wine and spirits store license upon the
    27  request of any resident residing within a radius of 500 feet of
    28  the premises, if the request is filed within 15 days of posting
    29  the notice of application under subsection (d). The board and
    30  any hearing examiner of the board shall give appropriate
    20080S1273B1745                 - 11 -     

     1  evidentiary weight to any testimony of such residents at the
     2  hearing. The board may provide for the holding of such hearings
     3  by hearing examiners as provided in this act. The board shall
     4  refuse any application for a wine and spirits store license
     5  which could be detrimental to the welfare, health, peace and
     6  morals of the inhabitants of the neighborhood within a radius of
     7  500 feet of the premises proposed to be licensed.
     8     (f)  Notification.--The board shall approve or disapprove the
     9  location and notify the successful bidder or licensee of its
    10  decision.
    11  Section 808-A.  Physical limitations.
    12     (a)  Unit.--The premises of each wine and spirits store shall
    13  be a self-contained unit with limited customer access dedicated
    14  solely to the sale of liquor and permitted merchandise. All
    15  purchases made within the limitations of the premises shall be
    16  paid for at a location within the confines of the liquor sales
    17  area.
    18     (b)  Description.--Upon notice of a successful bid on a
    19  franchise or an application to relocate, each applicant for a
    20  wine and spirits store license shall submit a description of the
    21  premises and any other material, information and description of
    22  the plan of that premises where it is proposed to keep and sell
    23  liquor as may be required by the regulations of the board.
    24     (c)  Detail of description.--The descriptions, information
    25  and plans under subsection (b) shall show the proposed location,
    26  and shall show any alterations proposed to be made to the
    27  described premises, or the new building proposed to be
    28  constructed after the approval by the board of the application
    29  for a franchise or for the transfer of an existing license to
    30  another premises not then licensed.
    20080S1273B1745                 - 12 -     

     1  Section 809-A.  Denial of application.
     2     Hearings on the denial of an application or on the failure to
     3  renew a license shall be held in accordance with the procedures
     4  established in section 464.
     5  Section 810-A.  Bidding.
     6     (a)  Process.--The granting of franchises under this article
     7  shall be by sealed competitive bids to the highest responsible
     8  bidder. No bid shall be considered unless the bond required
     9  under this section has been submitted to the board. All bids for
    10  a wine and spirits store franchise may be rejected by the board
    11  if the board determines that the highest bid is inadequate.
    12  Whenever the board rejects all the tendered bids, the board
    13  shall begin a new bidding process for that wine and spirits
    14  store franchise. The board shall notify qualified bid applicants
    15  of the date and the hour of the bid openings.
    16     (b)  Security.--In order to participate in the bidding under
    17  this section, bid applicants shall post bonds, cash, negotiable
    18  securities or letters of credit equal to an amount set by the
    19  board, but not less than $50,000.
    20     (c)  Filing.--Each person desiring to submit a bid must file
    21  the bid with the board prior to the specified date and hour for
    22  the bid openings. Failure to deliver a bid or nonreceipt of a
    23  bid prior to the appointed date and hour shall constitute
    24  sufficient reason for rejection of a bid. Following the award of
    25  the exclusive wine and spirits store franchise within each
    26  franchise zone, the board shall indicate the successful bidder.
    27  A copy of each awarded bid and the bidder's application shall be
    28  maintained as public record and open to public inspection in the
    29  offices of the board.
    30     (d)  Issuance.--The board shall issue a franchise to a
    20080S1273B1745                 - 13 -     

     1  successful bidder to operate a wine and spirits store within the
     2  specified franchise zone upon satisfaction of all of the
     3  following conditions:
     4         (1)  Execution by the successful bidder of a franchise
     5     agreement.
     6         (2)  Payment in full by the successful bidder of the
     7     amount of the successful bid.
     8         (3)  Approval by the board of the successful bidder's
     9     proposed franchise location.
    10         (4)  Posting by the successful bidder of bonds in an
    11     amount determined by the board to reasonably reflect the cost
    12     of the bidder's initial inventory. Bonds posted pursuant to
    13     this clause shall be released by the board upon payment in
    14     full by the successful bidder of the amount due for initial
    15     inventory or shall be forfeited in the event the amount due
    16     for initial inventory is not paid in full within 15 days of
    17     the date such inventory was delivered to the wine and spirits
    18     store location.
    19     (e)  Release.--Bonds posted by unsuccessful bidders under
    20  section 810-A(b) shall be released by the board upon acceptance
    21  of the successful bid.
    22     (f)  Payment.--Bonds posted by the successful bidder under
    23  section 810-A(b) shall be released by the board upon payment by
    24  the successful bidder of the initial franchise fee. A successful
    25  bidder's bond shall be forfeited if the initial franchise fee is
    26  not paid within 90 days of the date the board accepts the bid
    27  and the board shall then offer the franchise to the next highest
    28  responsible bidder. The board shall then either issue the wine
    29  and spirits store license to the next highest bidder for such
    30  license or reject all bids and start the bidding process anew
    20080S1273B1745                 - 14 -     

     1  for such retail liquor store license.
     2  Section 811-A.  Closure of existing State stores.
     3     (a)  Grant.--An awarded franchise and license shall grant the
     4  successful bidder the opportunity to bid upon the remaining
     5  inventory, tangible property and fixtures of all State stores
     6  owned by the Commonwealth pursuant to this article. The board
     7  shall establish a procedure for the sale of the inventory,
     8  property and fixtures of all State stores consistent with
     9  Article XXIV-A of the act of April 9, 1929 (P.L.177, No.175),
    10  known as The Administrative Code of 1929. All monetary proceeds
    11  from such sales shall be deposited in the Wine and Spirits Store
    12  Fund.
    13     (b)  Development.--The board shall develop a schedule of
    14  closure for State stores. Under no circumstances shall any State
    15  store remain open for retail sales beyond 18 months following
    16  the initial opening date set for any wine and spirits store.
    17  Section 812-A.  Monthly franchise fee, initial franchise period
    18                     and renewal of retail liquor store licenses.
    19     (a)  Delivery.--On or before the tenth day of each calendar
    20  month, each wine and spirits store licensee shall deliver to the
    21  board a statement of the gross sales of liquor and wine from the
    22  wine and spirits store location for the preceding calendar month
    23  together with payment of the 1% monthly franchise fee applied to
    24  such gross sales before the application of sales tax. The
    25  statement shall be in the form prescribed by the board and shall
    26  include separate sales figures for the wine and spirits store's
    27  sales of liquor, wine and other items and a statement of total
    28  sales together with the calculation of the licensee's monthly
    29  franchise fee.
    30     (b)  Period.--The initial franchise period for each retail
    20080S1273B1745                 - 15 -     

     1  liquor store shall be 30 years from the effective date of the
     2  wine and spirits store license.
     3     (c)  Review.--At the end of the initial 30-year franchise
     4  period, the board shall conduct a review of each wine and
     5  spirits store franchise and licensee to determine if each
     6  licensee and each wine and spirits store has complied with the
     7  provisions of this act and any regulations promulgated under
     8  this act. The board shall also review the service provided by
     9  each wine and spirits store to determine its adequacy. The board
    10  may decline to renew the franchise and license of any wine and
    11  spirits store which has substantially failed to comply with the
    12  provisions of this act or which has failed to provide an
    13  adequate level of service to the public.
    14     (d)  Fee.--At the end of the initial 30-year franchise
    15  period, the board shall determine the amount of the franchise
    16  renewal fee to be paid by the wine and spirits store licensee in
    17  order to retain the franchise for another 30-year period. The
    18  renewal fee shall be a percentage of the annual gross sales of
    19  the wine and spirits store, as determined by the board, but not
    20  less than the amount of the original bid for the franchise. If
    21  the wine and spirits store licensee remits the franchise renewal
    22  fee as herein provided and is successfully reviewed by the board
    23  pursuant to subsection (c), the licensee shall retain the
    24  franchise for a second 30-year period.
    25     (e)  Remittances.--If the wine and spirits store licensee
    26  fails to remit the franchise renewal fee within 90 days of
    27  notification of the fee from the board, the franchise shall be
    28  rebid in the same manner as provided in section 810-A.
    29  Applicants shall submit to the board the same information
    30  required for the initial issuance of the exclusive franchise and
    20080S1273B1745                 - 16 -     

     1  wine and spirits store license and any additional information
     2  required by the board by such dates as prescribed by the board.
     3     (f)  Application.--The requirements and procedures set forth
     4  under this section shall apply to all franchises and licenses at
     5  the end of each ten-year period.
     6  Section 813-A.  Sale, assignment or transfer of license.
     7     (a)  Prohibition.--No person may sell, assign or otherwise
     8  transfer a wine and spirits store franchise and license without
     9  the prior written approval of the board.
    10     (b)  Merger.--For purposes of this section, the merger of a
    11  wine and spirits store licensee or the sale of more than 50% of
    12  the outstanding stock of or partnership interests in the wine
    13  and spirits store licensee shall be deemed to be a sale,
    14  assignment or transfer of a wine and spirits store franchise and
    15  license under this section.
    16     (c)  Sale.--Any person to whom a wine and spirits store
    17  franchise and license is sold, transferred or reissued shall
    18  comply with the provisions of this act.
    19  Section 814-A.  Renewal or transfer.
    20     (a)  Hearings.--The board shall hold hearings on renewals or
    21  transfers as it deems necessary at the times as it shall fix for
    22  the purpose of hearing such testimony. The board shall hold a
    23  hearing on any application for a renewal of a wine and spirits
    24  store license or the transfer of any such license to a new
    25  location, upon the request of any person with standing to
    26  testify under subsection (b), if the request is filed with the
    27  board within the first 15 days of posting of the notice of
    28  application pursuant to section 807-A. The board may provide for
    29  the holding of such hearings by hearing examiners as provided in
    30  this act.
    20080S1273B1745                 - 17 -     

     1     (b)  Residents.--If a hearing is held in the case of an
     2  application for a license or the transfer of a license under
     3  this article, the board shall permit residents residing within a
     4  radius of 500 feet of the premises to testify at the hearing.
     5  The board and any hearing examiner of the board shall give
     6  appropriate evidentiary weight to any testimony of such
     7  residents given at the hearing.
     8     (c)  Refusal.--The board shall refuse any application for a
     9  renewal or transfer which would be detrimental to the welfare,
    10  health, peace and morals of the inhabitants of the neighborhood
    11  within a radius of 500 feet of the place proposed to be
    12  licensed.
    13  Section 815-A.  Surrender, revocation or forfeiture of wine and
    14                     spirits store franchise or license.
    15     Any wine and spirits store licensee may surrender its
    16  franchise and license to the board at any time. Upon surrender,
    17  revocation or forfeiture of a franchise or license, the board
    18  shall proceed to reissue the exclusive wine and spirits store
    19  franchise within the franchise zone by the bidding process
    20  provided in this article.
    21  Section 816-A.  Sales by wine and spirits stores.
    22     (a)  Off-premises.--Every wine and spirits store may sell
    23  liquor for consumption off-premises. In addition to the sale of
    24  liquor, wine and spirits stores may sell related merchandise
    25  within the controlled area of the store. Wine and spirits stores
    26  have no authority under any circumstances to sell malt or brewed
    27  beverages. The board shall promulgate regulations setting forth
    28  what additional related merchandise may be offered for retail
    29  sale in wine and spirits stores.
    30     (b)  Approval.--No licensee shall engage in any separate
    20080S1273B1745                 - 18 -     

     1  business activities upon any licensed premises without prior
     2  approval of the board.
     3     (c)  Purchase.--All holders of licenses issued under section
     4  401 shall only purchase wine and liquor from the wine and
     5  spirits store in the franchise zone in which the section 401
     6  licensee is located or a contiguous franchise zone thereto.
     7     (d)  Time of sales.--Wine and spirits store licensees may not
     8  sell liquor between 11 p.m. and 8 a.m. or between the hours of
     9  11 p.m. Saturday and 8 a.m. on Monday.
    10     (e)  Employment.--Nothing in this act, or any regulation
    11  promulgated under this act, shall prohibit or prevent any wine
    12  and spirits store licensee from employing any person who is at
    13  least 21 years of age to directly serve the public and who is at
    14  least 21 years of age to stock shelves and perform related work.
    15  Section 817-A.  Records.
    16     All of the business and financial books and records and the
    17  wine and spirits store location shall be available at any time
    18  for inspection and audit by the board and the enforcement
    19  bureau. The board and the enforcement bureau may audit all books
    20  and records and audit the physical inventory of the wine and
    21  spirits store at any time. The board shall audit each wine and
    22  spirits store at least once every three years. Failure to permit
    23  a review or an audit under this section is grounds for
    24  revocation.
    25  Section 818-A.  Civil penalties.
    26     (a)  Assessment.--In addition to the penalties set forth
    27  under sections 471 and 494, any wine and spirits store licensee
    28  who violates any provision of this article or regulation
    29  promulgated under this article may be assessed a civil penalty
    30  by the administrative law judge of not less than $100 and not
    20080S1273B1745                 - 19 -     

     1  more than $1,000 per violation. Each violation shall constitute
     2  a separate offense. In determining the amount of the penalty,
     3  the administrative law judge shall consider all of the
     4  following:
     5         (1)  the wine and spirits licensee's history of previous
     6     violations;
     7         (2)  the appropriateness of such penalty to the size of
     8     the business of the wine and spirits licensee charged;
     9         (3)  the gravity of the violation; and
    10         (4)  the demonstrated good faith of the wine and spirits
    11     licensee charged in attempting to achieve compliance after
    12     notification of a violation.
    13     (b)  Notice.--A civil penalty shall be assessed after the
    14  administrative law judge has given at least ten days' notice to
    15  the wine and spirits store licensee. Notice shall be in writing,
    16  shall state the reason for the proposed penalty and the amount
    17  thereof, and shall designate a time and place for a hearing.
    18  Notice shall be sent by certified mail to the address for which
    19  the wine and spirits store license was issued.
    20  Section 819-A.  Suspension or revocation.
    21     (a)  Administrative law judge.--The administrative law judge
    22  shall have the power to refuse to issue and the power to suspend
    23  or revoke a wine and spirits store license or impose a fine, or
    24  both, when the administrative law judge finds that:
    25         (1)  the licensee has violated any of the provisions of
    26     this article or any regulations of the board;
    27         (2)  the applicant or licensee has knowingly presented to
    28     the board or to the enforcement bureau false, incomplete or
    29     misleading information relating to licensure or to the
    30     operation of a franchise;
    20080S1273B1745                 - 20 -     

     1         (3)  the applicant or licensee has pleaded guilty,
     2     entered a plea of nolo contendere or has been found guilty of
     3     a felony by a judge or jury in any Federal or state court;
     4         (4)  no licensee shall operate any theater, circus,
     5     museum or other place of amusement or any bowling alley, game
     6     room, video arcade or other recreational area or have any
     7     passageway or connection between a licensed premises and a
     8     place of amusement or recreation;
     9         (5)  no licensee shall permit the consumption of
    10     alcoholic beverages on the premises of the licensed
    11     establishment, except for the sampling or tasting of products
    12     as approved by the board; or
    13         (6)  locate a wine and spirits store within 500 feet of
    14     any church, school, hospital, charitable institution or
    15     playground.
    16     (b)  Board.--The board shall have the power to refuse to
    17  issue or to suspend or revoke a wine and spirits store license
    18  or franchise if the licensee failed to operate the wine and
    19  spirits store or to provide a reasonable level of consumer
    20  service.
    21     (c)  Hearings.--Suspension and revocation hearings shall be
    22  held in accordance with the procedures under section 514.
    23     (d)  Prohibition.--No person may sell liquor at any outlet if
    24  the wine and spirits store license applicable to that outlet has
    25  been forfeited, suspended, revoked or has expired.
    26     (e)  Revocation.--In the event of the revocation, forfeiture
    27  or surrender of any wine and spirits store license in accordance
    28  with this act, the board shall revoke the franchise and conduct
    29  a public sale to grant to the highest responsible bidder a
    30  replacement license for the duration of the franchise period as
    20080S1273B1745                 - 21 -     

     1  prescribed by the board.
     2  Section 820-A.  Reemployment tax credit.
     3     (a)  Termination.--A full-time employee of a Pennsylvania
     4  State store whose employment is terminated as a result of the
     5  closing of a State store shall be eligible for a two-year
     6  reemployment tax credit voucher in the amount of $1,000 per
     7  taxable year. The voucher shall be made available to each
     8  qualified employee of a Pennsylvania State store upon
     9  termination of employment by the Liquor Control Board. Each
    10  voucher shall be certified by the Liquor Control Board before
    11  the voucher is provided to the qualified employee, and the
    12  Department of Revenue shall be informed of each qualified
    13  employee to whom a voucher has been provided.
    14     (b)  Transfer.--Any employer in this Commonwealth who employs
    15  such a former employee of a Pennsylvania State store may, upon
    16  transfer of the voucher from the employee to the employer, use
    17  the voucher as a credit against the State tax liability of the
    18  business, provided that the employer can demonstrate the
    19  following:
    20         (1)  That the employee for which the tax credit is being
    21     sought was terminated from a Pennsylvania State store within
    22     12 months of being employed by the employer.
    23         (2)  That the former State store employee has been
    24     employed by the employer seeking the tax credit for a period
    25     not less than one year.
    26     (c)  Submittal.--The employer shall submit the tax credit
    27  voucher to the Department of Revenue along with the information
    28  required under subsection (b)(1) and (2) in conjunction with the
    29  filing of a State business tax identified under subsection
    30  (d)(2).
    20080S1273B1745                 - 22 -     

     1     (d)  Claim.--
     2         (1)  An employer may claim a reemployment tax credit for
     3     every job filled by a former Pennsylvania State store
     4     employee of $1,000 per taxable year for a maximum of two
     5     taxable years.
     6         (2)  An employer may apply the reemployment tax credit to
     7     100% of the employer's State corporate net income tax,
     8     capital stock and franchise tax or the personal tax of a
     9     shareholder of the company if the company is a Pennsylvania S
    10     corporation, gross premiums tax, gross receipts tax, bank and
    11     trust company shares tax, mutual thrift institution tax,
    12     title insurance company shares tax, personal income tax or
    13     the personal income tax of a shareholder of a Pennsylvania S
    14     corporation or any combination thereof.
    15         (3)  A former Pennsylvania State store employee whose
    16     employment is terminated with an employer who has utilized
    17     the reemployment tax credit voucher to claim a one-year
    18     $1,000 tax credit, may transfer the voucher to a new employer
    19     who may use the remaining $1,000 tax credit as a claim
    20     against the business tax liability identified under paragraph
    21     (2).
    22         (4)  The term of the reemployment tax credit voucher may
    23     not exceed three years from the date the voucher is provided
    24     to the qualified former Pennsylvania State store employee.
    25  Section 821-A.  Annual reports.
    26     On or before October 31, 2017, and each year thereafter, the
    27  board shall submit to the General Assembly an annual report on
    28  retail alcohol sales in this Commonwealth and the implementation
    29  of this article, including the total revenue earned by the
    30  issuance of wine and spirits store license.
    20080S1273B1745                 - 23 -     

     1  Section 822-A.  Review.
     2     Five years following the effective date of this section, the
     3  board shall conduct a thorough review of the operations of the
     4  wine and spirits stores. The board shall submit a copy of this
     5  review and any recommendations relating to the expansion of
     6  existing franchise zones to the General Assembly. The same
     7  review shall be conducted ten years following the sale of the
     8  first wine and spirits store franchise.
     9  Section 823-A.  Disposition of proceeds.
    10     All proceeds from initial franchise sales, wholesale sales,
    11  monthly franchise fees, bid forfeitures and other moneys
    12  designated for deposit in the Wine and Spirits Stores Fund under
    13  this article and all other proceeds which are deposited in the
    14  Wine and Spirits Stores Fund are appropriated and shall be
    15  allocated as provided in this section. Proceeds shall mean all
    16  revenues and receipts less all costs of administration and
    17  operation of the board, including enforcement costs and
    18  including the costs attributable to the operations of the
    19  Pennsylvania State Police as certified by the Governor, and any
    20  other expenses related to the operation of the liquor system.
    21  The proceeds shall be allocated as follows:
    22         (1)  Proceeds from the auction of 428 franchise zones
    23     shall be allocated as follows:
    24             (i)  Three hundred fifty million dollars shall be
    25         paid once to Medicaid.
    26             (ii)  An amount to be appropriated to the
    27         Pennsylvania State Police.
    28             (iii)  An amount to be appropriated for alcohol
    29         education.
    30             (iv)  The balance of the proceeds under this
    20080S1273B1745                 - 24 -     

     1         paragraph shall be used for the unfunded Medicaid
     2         obligation and long-term living expenditures.
     3         (2)  The proceeds from private equity shall be allocated
     4     as follows:
     5             (i)  Ten percent of the proceeds under this paragraph
     6         shall be paid to the Pennsylvania State Police.
     7             (ii)  Ten percent of the proceeds under this
     8         paragraph shall be paid to Mothers Against Drunk Driving.
     9             (iii)  Eighty percent of the proceeds under this
    10         paragraph shall be paid to the General Fund.
    11                           ARTICLE VIII-B
    12         PROFESSIONALISM IN SERVICE OF ALCOHOLIC BEVERAGES
    13  Section 801-B.  Declaration of policy.
    14     The General Assembly finds and declares as follows:
    15         (1)  There is a need to further enhance the
    16     professionalism of persons employed in the retail sale of
    17     alcohol.
    18         (2)  A program must be established to include the study
    19     of the following:
    20             (i)  The effect alcohol has on the body and behavior,
    21         including the effect on an individual's ability to
    22         operate a motor vehicle when intoxicated.
    23             (ii)  The laws of this Commonwealth concerning
    24         alcoholic beverages licensure and liability and driving
    25         under the influence of alcoholic beverages.
    26             (iii)  Methods of recognizing problem drinkers and
    27         techniques for intervening with problem drinkers.
    28             (iv)  Methods of identifying false driver's licenses
    29         and other documents used as evidence of age and identity
    30         to prevent the sale of alcohol to minors.
    20080S1273B1745                 - 25 -     

     1             (v)  Prevention of fetal alcohol syndrome.
     2         (3)  It is necessary to reduce the number of individuals
     3     who drive while under the influence of intoxicating liquor
     4     and mitigate the physical and property damage caused by that
     5     behavior.
     6         (4)  It is necessary to reduce the frequency of alcohol-
     7     related birth defects.
     8  Section 802-B.  Definitions.
     9     The following words and phrases when used in this article
    10  shall have the meanings given to them in this section unless the
    11  context clearly indicates otherwise:
    12     "Alcoholic beverage."  Any of the following:
    13         (1)  Liquor.
    14         (2)  Malt or brewed beverages.
    15         (3)  Wine.
    16     "Certificate."  An authorization under section 804-B to
    17  provide a program.
    18     "Chairman."  The chairman of the Pennsylvania Liquor Control
    19  Board.
    20     "Committee."  The Alcohol Server Education Advisory
    21  Committee.
    22     "License."  A license issued under Article IV to sell, serve
    23  or dispense alcoholic beverages for consumption and not for
    24  resale.
    25     "Licensee."  A person that holds a license. The term shall
    26  include only State liquor stores, not restaurants, taverns and
    27  clubs.
    28     "Permit."  An authorization under section 805-B to serve
    29  alcoholic beverages.
    30     "Program."  An alcohol seller education course and
    20080S1273B1745                 - 26 -     

     1  examination.
     2     "Provider."  A person that provides a program.
     3     "Seller."  An individual who sells alcoholic beverages for a
     4  licensee.
     5  Section 803-B.  Administration.
     6     (a)  Board.--
     7         (1)  The board has the following powers:
     8             (i)  Approve programs and accept security under
     9         section 804-B(b) and (c).
    10             (ii)  Impose sanctions under section 807-B.
    11             (iii)  Promulgate regulations to implement this
    12         article in accordance with section 801-B.
    13         (2)  The board has the following duties:
    14             (i)  Implement this article in accordance with
    15         section 801-B.
    16             (ii)  Issue certifications under section 804-B(d).
    17             (iii)  Establish its own program if no other programs
    18         are certified under section 804-B.
    19             (iv)  Transmit to the Legislative Reference Bureau
    20         for publication in the Pennsylvania Bulletin a notice
    21         which:
    22                 (A)  lists certified programs for the initial
    23             implementation of this article; or
    24                 (B)  states that the board has its own program.
    25             (v)  Issue permits under section 805-B(b).
    26     (b)  Committee.--
    27         (1)  The Alcohol Seller Education Advisory Committee is
    28     established. The committee shall consist of the following
    29     members:
    30             (i)  The chairman.
    20080S1273B1745                 - 27 -     

     1             (ii)  The Secretary of Health or a designee.
     2             (iii)  The Secretary of Transportation or a designee.
     3             (iv)  The following individuals appointed by the
     4         chairman:
     5                 (A)  Three representatives of the retail liquor
     6             industry.
     7                 (B)  A representative of the wholesale liquor
     8             industry.
     9                 (C)  A representative of the insurance industry.
    10                 (D)  A representative of a nonprofit organization
    11             the primary purpose of which is to reduce driving
    12             under the influence in this Commonwealth.
    13         (2)  A member under paragraph (1)(i), (ii) or (iii) shall
    14     serve ex officio. A member under paragraph (1)(iv) shall
    15     serve a term of four years.
    16         (3)  The chairman shall serve as chair of the committee.
    17         (4)  Five members constitute a quorum.
    18         (5)  Members under paragraph (1)(iv) shall serve without
    19     compensation but shall be reimbursed for reasonable and
    20     necessary expenses in discharging their functions.
    21         (6)  The committee shall meet as often as necessary, but
    22     at least two times per year, to assist the board with the
    23     development of all of the following:
    24             (i)  Standards, course requirements and materials for
    25         programs.
    26             (ii)  Procedures attendant to the programs.
    27             (iii)  Certification standards for providers and
    28         instructors.
    29  Section 804-B.  Programs.
    30     (a)  Authorization.--The board may certify programs.
    20080S1273B1745                 - 28 -     

     1     (b)  Standards.--To be approved, a program curriculum must
     2  include the following subjects:
     3         (1)  The effect alcohol has on the body and behavior,
     4     including the effect on an individual's ability to operate a
     5     motor vehicle when intoxicated.
     6         (2)  The effect alcohol has on an individual when used in
     7     combination with drugs.
     8         (3)  The laws of this Commonwealth concerning alcoholic
     9     beverages licensure and liability and driving under the
    10     influence of alcoholic beverages.
    11         (4)  Methods of recognizing problem drinkers and
    12     techniques for intervening with problem drinkers.
    13         (5)  Methods of identifying false driver's licenses and
    14     other documents used as evidence of age and identity to
    15     prevent the sale of alcohol to minors.
    16         (6)  The incidence of alcohol-related birth defects.
    17     (c)  Security.--If a program is approved under subsection
    18  (b), the provider must furnish security acceptable to the board
    19  in the amount of $5,000 to guarantee satisfactory provision of
    20  the program in accordance with section 801-B over a period of
    21  five years.
    22     (d)  Certification.--
    23         (1)  The board shall certify a program if all of the
    24     following apply:
    25             (i)  The program is approved under subsection (b).
    26             (ii)  Security is accepted under subsection (c).
    27         (2)  Certification is valid for five years and is subject
    28     to renewal in accordance with this section.
    29  Section 805-B.  Permits.
    30     (a)  Requirements.--To receive a permit, a seller must do all
    20080S1273B1745                 - 29 -     

     1  of the following:
     2         (1)  Complete within the immediately preceding year a
     3     program which is:
     4             (i)  certified under section 804-B; or
     5             (ii)  conducted by the board.
     6         (2)  Pay a fee set by regulation of the board.
     7     (b)  Issuance.--The board shall issue a permit to a seller
     8  who complies with subsection (a). No person shall be employed as
     9  a seller in a licensed premises unless that person obtains
    10  alcohol seller training within 30 days of employment.
    11     (c)  Term.--A permit is valid for five years and is subject
    12  to renewal in accordance with this section.
    13  Section 806-B.  Permit required.
    14     (a)  Prohibition.--A licensee may not employ a seller unless
    15  all of the following apply:
    16         (1)  The seller has a valid permit.
    17         (2)  The seller's permit is on the premises of the
    18     licensee where the seller is employed.
    19     (b)  Penalty.--
    20         (1)  A licensee that violates subsection (a)(1) commits a
    21     misdemeanor of the first degree.
    22         (2)  A licensee that violates subsection (a)(2) commits a
    23     summary offense.
    24  Section 807-B.  Sanctions.
    25     (a)  Certificates.--If the board determines that a provider
    26  is not providing its program in a manner satisfactory to the
    27  board in accordance with section 801-B, the board may do all of
    28  the following:
    29         (1)  Suspend the certificate.
    30         (2)  Revoke the certificate.
    20080S1273B1745                 - 30 -     

     1         (3)  Proceed against the provider's security under
     2     section 804-B.
     3     (b)  Permits.--
     4         (1)  A seller is subject to sanction under paragraph (2)
     5     for any of the following:
     6             (i)  Violation of section 493.
     7             (ii)  Violation of 18 Pa.C.S. § 6310.1 (relating to
     8         selling or furnishing liquor or malt or brewed beverages
     9         to minors).
    10         (2)  If the board determines that a seller has committed
    11     a violation specified in paragraph (1), the board may do all
    12     of the following:
    13             (i)  Suspend the permit.
    14             (ii)  Revoke the permit.
    15     (c)  Penalties.--
    16         (1)  In addition to any other penalties available, the
    17     following penalties may be imposed for sales to minors or
    18     intoxicated persons in violation of the provisions of this
    19     article:
    20             (i)  The chairman may suspend a seller's seller
    21         permit for a period of 30 days or fine the seller an
    22         amount not less than $2,000, or both, if the chairman
    23         finds that the seller is guilty of a first offense of
    24         selling an alcoholic beverage to an intoxicated person or
    25         to a minor.
    26             (ii)  The chairman may suspend a seller's seller
    27         permit for a period of one year or impose a $5,000 fine,
    28         or both, if the chairman finds that the seller is guilty
    29         of a second offense, arising separately from the incident
    30         giving rise to the first offense, of selling an alcoholic
    20080S1273B1745                 - 31 -     

     1         beverage to an intoxicated person or to a minor.
     2             (iii)  The chairman may permanently revoke a seller's
     3         seller permit or impose a $10,000 fine, or both, if the
     4         chairman finds that the seller is guilty of a third
     5         offense, arising separately from the incidents giving
     6         rise to the first and second offenses, of selling
     7         alcoholic beverages to an intoxicated person or to a
     8         minor.
     9             (iv)  The chairman may suspend a licensee's license
    10         for a period of 30 days or fine the licensee an amount
    11         not less than $2,000, or both, if the chairman finds that
    12         the licensee is guilty of a first offense of selling an
    13         alcoholic beverage to an intoxicated person or a minor.
    14             (v)  The chairman may suspend a licensee's license
    15         for a period of one year or fine the licensee an amount
    16         not less than $5,000, or both, if the chairman finds that
    17         the licensee is guilty of a second offense, arising
    18         separately from the incident giving rise to the first
    19         offense of selling an alcoholic beverage to an
    20         intoxicated person or a minor.
    21             (vi)  The chairman may permanently revoke a
    22         licensee's license or fine the licensee an amount not
    23         less than $10,000, or both, if the chairman finds that
    24         the licensee is guilty of a third offense, arising
    25         separately from the incident giving rise to the first and
    26         second offenses of selling an alcoholic beverage to an
    27         intoxicated person or a minor.
    28         (2)  No person whose seller permit is suspended or
    29     revoked under this section may be a seller of alcoholic
    30     beverages on a licensed premises during the period of
    20080S1273B1745                 - 32 -     

     1     suspension or revocation.
     2         (3)  No person whose seller permit is suspended may serve
     3     alcoholic beverages on or after the date of suspension unless
     4     the person obtains a new seller permit.
     5         (4)  Nothing in this article shall be interpreted to
     6     waive any license holder's liability that may arise under
     7     this article.
     8     (d)  Administrative agency law.--This section is subject to 2
     9  Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of
    10  Commonwealth agencies) and 7 Subch. A (relating to judicial
    11  review of Commonwealth agency action).
    12  Section 808-B.  Minors in licensed premises.
    13     (a)  Violation by licensee.--A person licensed under this
    14  article or any employee, agent or lessee of that person who
    15  permits a minor to enter and remain in any area that is
    16  prohibited to the use of minors commits a violation of this
    17  article.
    18     (b)  Violation by minor.--A minor shall not enter or attempt
    19  to enter any area of a licensed premises that is posted or
    20  otherwise identified as being prohibited to the use of minors,
    21  unless accompanied by an adult. A person who violates the
    22  provisions of this subsection commits a misdemeanor.
    23  Section 809-B.  Age verification.
    24     (a)  Notwithstanding any other provision of law, a seller
    25  shall ask for and receive an acceptable form of identification
    26  from anyone purchasing alcoholic beverages. If an acceptable
    27  form of identification is not produced, the sale shall not be
    28  completed. Acceptable forms of identification shall include only
    29  the following, nonexpired documents:
    30         (1)  A photo driver's license issued by any state or the
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     1     District of Columbia.
     2         (2)  A nondriver identification card issued by any state
     3     or the District of Columbia.
     4         (3)  A military photo identification card.
     5         (4)  A United States passport.
     6         (5)  A foreign passport, if the management of the
     7     seller's establishment approves.
     8  Section 810-B.  Appropriation.
     9     An amount, or as much thereof as may be necessary, is hereby
    10  appropriated to the board for the fiscal year July 1, 2007, to
    11  June 30, 2008, to carry out the provisions of this article.
    12                           ARTICLE VIII-C
    13               STATE LIQUOR STATE SALE RECOMMENDATION
    14  Section 801-C.  Definitions.
    15     The following words and phrases when used in this article
    16  shall have the meanings given to them in this section unless the
    17  context clearly indicates otherwise:
    18     "Qualified investment bank."  An investment bank having
    19  extensive experience in similar scale sale of companies and
    20  assets.
    21     "Request for proposal."  The term as it is defined under 62
    22  Pa.C.S. § 103 (relating to definitions).
    23  Section 802-C.  Selection of qualified investment banker.
    24     (a)  Solicitation.--The board shall solicit proposals from
    25  qualified investment banks to advise the Commonwealth as to the
    26  best way to structure a process to sell the State liquor stores
    27  to private bidders.
    28     (b)  Contents.--The request for proposal prepared by the
    29  board shall include all of the following:
    30         (1)  The goals and objectives of the Commonwealth,
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     1     including obtaining the highest possible profit for the
     2     Commonwealth while at the same time observing those
     3     parameters and restrictions which the Commonwealth wishes to
     4     impose.
     5         (2)  The qualifications sought and the matters required
     6     to be covered by any proposal submitted.
     7         (3)  A requirement that the qualified investment bank
     8     analyze various ways in which the assets of the State liquor
     9     stores could be sold, including performing a sensitivity
    10     analysis of the impact of different restrictions and mixes of
    11     assets on the range of prices likely to be received through
    12     the process.
    13  Section 803-C.  Report.
    14     The qualified investment bank selected under section 802-C
    15  shall, within 180 days of its selection, issue a report to the
    16  board making recommendations regarding the best process to use
    17  to divest the State liquor stores. A copy of the report shall be
    18  sent by the board to the chairman and minority chairman of the
    19  Law and Justice Committee of the Senate and the chairman and
    20  minority chairman of the Liquor Control Committee of the House
    21  of Representatives.
    22     Section 2.  This act shall take effect as follows:
    23         (1)  Section 806-B of the act shall take effect 270 days
    24     after publication of the notice under section 803-B(a)(2)(iv)
    25     of the act.
    26         (2)  The remainder of this act shall take effect
    27     immediately.


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