1Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
2reenacted, "An act relating to alcoholic liquors, alcohol and
3malt and brewed beverages; amending, revising, consolidating
4and changing the laws relating thereto; regulating and
5restricting the manufacture, purchase, sale, possession,
6consumption, importation, transportation, furnishing, holding
7in bond, holding in storage, traffic in and use of alcoholic
8liquors, alcohol and malt and brewed beverages and the
9persons engaged or employed therein; defining the powers and
10duties of the Pennsylvania Liquor Control Board; providing
11for the establishment and operation of State liquor stores,
12for the payment of certain license fees to the respective
13municipalities and townships, for the abatement of certain
14nuisances and, in certain cases, for search and seizure
15without warrant; prescribing penalties and forfeitures;
16providing for local option, and repealing existing laws," in
17preliminary provisions, further providing for definitions and
18for interpretation; in the Pennsylvania Liquor Control Board,
19further providing for general powers, providing for fee
20adjustment by regulation and further providing for subject of
21regulations and for wine and spirits marketing; in
22Pennsylvania Liquor Stores, further providing for
23establishment and for sales; providing for wine and spirits
24distribution; in licensing, further providing for authority,
25for issuance, for transfer or extension, for fees, for sales
26and restrictions, for wine auction permits and for importers'
27licenses; in licensing, further providing for malt and brewed
28beverages licenses; in licensing, providing for enhanced
29distributors licenses; in licensing, further providing for
30license applications, for license restrictions, for storage
31and purchase restrictions, for interlocking business, for
32breweries, for county limitations, for administrative
33proceedings, for assignability, for renewal and temporary
34provisions, for sanctions, for local option, for shipment
35into Commonwealth, for unlawful acts and for hours of

1operation; in licensing, providing for unlawful acts; in
2licensing, further providing for penalties and for vacation
3of premises; in distilleries, wineries, bonded warehouses,
4bailees and transporters, further providing for limited
5wineries, for distilleries and for license fees; providing
6for emergency State tax; and making a related repeal.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. Section 102 of the act of April 12, 1951 (P.L.90,
10No.21), known as the Liquor Code, reenacted and amended June 29,
111987 (P.L.32, No.14), is amended by adding definitions to read:

12Section 102. Definitions.--The following words or phrases,
13unless the context clearly indicates otherwise, shall have the
14meanings ascribed to them in this section:

15"Affiliate" or "person affiliated with" shall mean a person
16that directly or indirectly, through one or more intermediaries,
17controls, is controlled by or is under common control with a
18specified person.

19* * *

20"Bid-rigging" shall mean the concerted activity of two or
21more persons to determine in advance or attempt to influence the
22selected bidder for an enhanced restaurant liquor license. The
23term includes any of the following:

24(1) Conspiring or cooperating in the preparation of bids,
25including the determination of bid amounts.

26(2) Submitting prearranged bids, agreed-upon higher or lower
27bids or other complementary bids.

28(3) Agreeing to submit identical bids.

29(4) Agreeing to coordinate the retail zones in which a
30person will or will not submit a bid.

31(5) Agreeing to share profits with or give an equity
32interest to a person who does not submit the high bid.

33(6) Agreeing to set up territories to restrict competition.

1(7) Agreeing not to submit a bid.

2"Blended brand valuation" shall mean, for any particular
3brand of liquor, the sum of the wholesale profit margin on each
4product of a brand.

5* * *

6"Brand of liquor" shall mean a liquor product or series of
7liquor products produced by a single manufacturer.

8* * *

9"Change in control" shall mean, for purposes of wholesale or
10retail licensees as defined in this section, the acquisition by
11a person or group of persons acting in concert of more than
12twenty per centum of a licensee's securities or other ownership
13interests, with the exception of any ownership interest of the
14person that existed at the time of initial licensing, or more
15than twenty per centum of the securities or other ownership
16interests of a corporation or other legal entity which owns,
17directly or indirectly, at least twenty per centum of the
18securities or other ownership interests of the licensee.

19* * *

20"Commission" shall mean the State Civil Service Commission.

21* * *

22"Controlling interest" shall mean as follows:

23(1) For a publicly traded legal entity, an interest in a
24legal entity, applicant or licensee whereby a person's sole
25voting rights under State law or corporate articles or bylaws
26entitles the person to elect or appoint one or more of the
27members of the board of directors or other governing board or
28the ownership, directly or indirectly, of five per centum or
29more of the securities of the publicly traded corporation.

30(2) For a privately held corporation, partnership, limited

1liability company or other form of privately held legal entity,
2the holding of any securities in the legal entity.

3* * *

4"Department" shall mean the Department of General Services of
5the Commonwealth.

6* * *

7"Displaced employe" shall mean a salaried employe of the
8board whose employment is terminated as a sole and direct result
9of the implementation of Article III-A. The term shall not
10include a person who is terminated for cause or who retires or
11resigns, is furloughed or is otherwise separated from employment
12for any other reason. The term excludes intermittent liquor
13store clerks and seasonal liquor store clerks.

14* * *

15"Enhanced distributor license" shall mean a license that
16allows the holder, subject to the provisions of this act, to
17sell at retail:

18(1) Wine.

19(2) Spirits.

20(3) Malt beverages in original sealed containers or
21packaging totaling not less than seven ounces per container or
22unopened package, with a minimum sale of forty-two ounces per
23transaction.

24"Enhanced license" shall mean an enhanced restaurant liquor
25license or an enhanced distributor license.

26"Enhanced licensee" shall mean the holder of an enhanced
27license.

28"Enhanced restaurant liquor license" shall mean a license
29that allows the holder, subject to the provisions of this act,
30to sell at retail:

1(1) One hundred fifty brands of wine in any size bottle one
2and one-half liter or less, with a limit of six bottles per
3transaction.

4(2) One hundred fifty brands of spirits in any size bottle
5one and one-half liter or less, with a limit of six bottles per
6transaction.

7(3) Malt beverages in original sealed containers or
8packaging totaling not less than seventy-two ounces nor more
9than three hundred sixty ounces per container or unopened
10package, with no limit on the number of sales per transaction.

11* * *

12"Institution of higher education" shall mean a public or
13private institution within this Commonwealth authorized by the
14Department of Education to grant a certificate, associate degree
15or higher degree. The term includes a branch or satellite campus
16of the institution.

17* * *

18"Offering price" shall mean a monetary value as determined by 
19the department by which an enhanced restaurant license or 
20enhanced distributor license may be purchased in a given county.

21* * *

22"Variable pricing" shall mean, for purposes of the wholesale
23sale of liquor, any disparity in the price of an item sold to
24one licensee as compared to the price of the same item to
25another licensee or a licensee of a different classification.
26The term shall not include discounts for volume purchases.

27* * *

28"Wholesale acquisition factor" shall mean a factor of 2.5
29applied to the wholesale profit margin of a brand of liquor in
30determining a wholesale license fee.

1"Wholesale district" shall mean any of the following
2geographic districts:

3(1) District A, consisting of Cameron, Centre, Clarion,
4Clearfield, Clinton, Crawford, Elk, Erie, Forest, Jefferson,
5McKean, Mercer, Potter, Venango and Warren Counties.

6(2) District B, consisting of Bradford, Carbon,
7Columbia, Lackawanna, Lehigh, Luzerne, Lycoming, Monroe,
8Montour, Northampton, Northumberland, Pike, Snyder, Sullivan,
9Susquehanna, Tioga, Union, Wayne and Wyoming Counties.

10(3) District C, consisting of Allegheny, Beaver, Butler,
11Greene, Lawrence and Washington Counties.

12(4) District D, consisting of Adams, Armstrong, Bedford,
13Berks, Blair, Cambria, Cumberland, Dauphin, Fayette,
14Franklin, Fulton, Huntingdon, Indiana, Juniata, Lancaster,
15Lebanon, Mifflin, Perry, Schuylkill, Somerset, Westmoreland
16and York Counties.

17(5) District E, consisting of Bucks, Chester, Delaware,
18Montgomery and Philadelphia Counties.

19"Wholesale licensee" shall mean a person that holds a wine
20and spirits wholesale license issued pursuant to section
21321.1-A.

22"Wholesale profit margin" shall mean, for any particular
23liquor product, twenty per centum of the total of costs of goods
24sold of the product in the Commonwealth over the most recent 12-
25month period for which information is available.

26* * *

27"Wine and spirits wholesale license" shall mean a license
28issued by the department or the board authorizing a person to
29sell and distribute liquor on a wholesale basis to retail
30licensees and other licensees under this act.

1* * *

2Section 2. Section 104(c) and (d) of the act, amended
3December 7, 1990 (P.L.622, No.160) and December 20, 1996
4(P.L.1513, No.196), is amended to read:

5Section 104. Interpretation of Act.--* * *

6(c) Except as otherwise expressly provided, the purpose of
7this act is to prohibit the manufacture of and transactions in
8liquor, alcohol and malt or brewed beverages which take place in
9this Commonwealth, except by and under the [control] regulatory 
10authority of the board as herein specifically provided, and
11every section and provision of the act shall be construed
12accordingly; to provide a structure in this Commonwealth for a
13distribution system, including the [establishment of
14Pennsylvania liquor stores and] licensing of wine and spirits 
15wholesalers, enhanced licensees, importing distributors and
16distributors; and to preserve manufacturers of liquor and
17alcohol and malt and brewed beverages selling those products
18within this Commonwealth. The provisions of this act dealing
19with the manufacture, importation, sale, distribution and
20disposition of liquor, alcohol and malt or brewed beverages
21within the Commonwealth through [the instrumentality of the
22board,] licensees and otherwise, provide the means by which such
23control shall be made effective. This act shall not be construed
24as forbidding, affecting or regulating any transaction which is
25not subject to the legislative authority of this Commonwealth.

26(d) The provisions of this act are intended to create a
27system for distribution [that shall include the fixing of prices 
28for] of liquor and alcohol and controls placed on [prices for]
29the sale and distribution of malt and brewed beverages, and each
30of which shall be construed as integral to the preservation of

1the system, without which system the Commonwealth's control of
2the sale of liquor and alcohol and malt and brewed beverages and
3the Commonwealth's promotion of its policy of temperance and
4responsible conduct with respect to alcoholic beverages would
5not be possible.

6* * *

7Section 3. Section 207 of the act, amended February 21, 2002
8(P.L.103, No.10), November 30, 2004 (P.L.1727, No.221) and
9December 8, 2004 (P.L.1810, No.239), is amended to read:

10Section 207. General Powers of Board.--Under this act, the
11board shall have the power and its duty shall be:

12(a) To buy, import or have in its possession for sale and
13sell liquor, alcohol, corkscrews, wine and liquor accessories,
14trade publications, gift cards, gift certificates, wine- or
15liquor-scented candles and wine glasses in the manner set forth
16in this act: Provided, however, That all purchases shall be made
17subject to the approval of the State Treasurer, or his
18designated deputy. The board shall buy liquor and alcohol at the
19lowest price and in the greatest variety reasonably obtainable.
20The board's authority to exercise the powers granted pursuant to 
21this subsection is subject to the limitations set forth in 
22Article III-A of this act.

23(b) To control the manufacture, possession, sale,
24consumption, importation, use, storage, transportation and
25delivery of liquor, alcohol and malt or brewed beverages in
26accordance with the provisions of this act, and to fix the
27wholesale and retail prices at which liquors and alcohol shall
28be sold at Pennsylvania Liquor Stores. Prices shall be
29proportional with prices paid by the board to its suppliers and
30shall reflect any advantage obtained through volume purchases by

1the board. The board may establish a preferential price
2structure for wines produced within this Commonwealth for the
3promotion of such wines, as long as the price structure is
4uniform within each class of wine purchased by the board. The
5board shall require each Pennsylvania manufacturer and each
6nonresident manufacturer of liquors, other than wine, selling
7such liquors to the board, which are not manufactured in this
8Commonwealth, to make application for and be granted a permit by
9the board before such liquors not manufactured in this
10Commonwealth shall be purchased from such manufacturer. Each
11such manufacturer shall pay for such permit a fee which, in the
12case of a manufacturer of this Commonwealth, shall be equal to
13that required to be paid, if any, by a manufacturer or
14wholesaler of the state, territory or country of origin of the
15liquors, for selling liquors manufactured in Pennsylvania, and
16in the case of a nonresident manufacturer, shall be equal to
17that required to be paid, if any, in such state, territory or
18country by Pennsylvania manufacturers doing business in such
19state, territory or country. In the event that any such
20manufacturer shall, in the opinion of the board, sell or attempt
21to sell liquors to the board through another person for the
22purpose of evading this provision relating to permits, the board
23shall require such person, before purchasing liquors from him or
24it, to take out a permit and pay the same fee as hereinbefore
25required to be paid by such manufacturer. All permit fees so
26collected shall be paid into the State Stores Fund. The board
27shall not purchase any alcohol or liquor fermented, distilled,
28rectified, compounded or bottled in any state, territory or
29country, the laws of which result in prohibiting the importation
30therein of alcohol or liquor, fermented, distilled, rectified,

1compounded or bottled in Pennsylvania. The board's authority to 
2exercise the powers granted pursuant to this subsection is 
3subject to the limitations set forth in Article III-A of this 
4act.

5[(c) To determine the municipalities within which
6Pennsylvania Liquor Stores shall be established and the
7locations of the stores within such municipalities.]

8(d) To grant and issue all licenses and to grant, issue,
9suspend and revoke all permits authorized to be issued under
10this act.

11(e) Through the [Department of General Services] department
12as agent, to lease and furnish and equip such buildings, rooms
13and other accommodations as shall be required for the operation
14of this act.

15(f) To appoint, fix the compensation and define the powers
16and duties of such managers, officers, inspectors, examiners,
17clerks and other employes as shall be required for the operation
18of this act, subject to the provisions of The Administrative
19Code of 1929 and the Civil Service Act.

20(g) To determine the nature, form and capacity of all
21packages and original containers to be used for containing
22liquor, alcohol or malt or brewed beverages.

23(h) Without in any way limiting or being limited by the
24foregoing, to do all such things and perform all such acts as
25are deemed necessary or advisable for the purpose of carrying
26into effect the provisions of this act and the regulations made
27thereunder.

28(i) From time to time, to make such regulations not
29inconsistent with this act as it may deem necessary for the
30efficient administration of this act. The board shall cause such

1regulations to be published and disseminated throughout the
2Commonwealth in such manner as it shall deem necessary and
3advisable or as may be provided by law. Such regulations adopted
4by the board shall have the same force as if they formed a part
5of this act.

6(j) By regulation, to provide for the use of a computerized
7referral system to assist consumers in locating special items at
8Pennsylvania Liquor Stores and for the use of electronic
9transfer of funds and credit cards for the purchase of liquor
10and alcohol at Pennsylvania Liquor Stores. The board's authority 
11to exercise the powers granted pursuant to this subsection is 
12subject to the limitations set forth in Article III-A of this 
13act.

14(k) To issue grants to various entities for alcohol
15education and prevention efforts.

16Section 4. The act is amended by adding a section to read:

17Section 207.1. Adjustment of Fees by Regulation.--(a) 
18Notwithstanding any provision of this act or the act of April 9, 
191929 (P.L.177, No.175), known as "The Administrative Code of 
201929," to the contrary, all fees required under this act shall 
21be fixed by the board by regulation and shall be subject to the 
22act of June 25, 1982 (P.L.633, No.181), known as the "Regulatory 
23Review Act."

24(b) The board shall be authorized to increase license fees
25by regulation under the following conditions:

26(1) If the revenues raised by the fees imposed under this
27act are not sufficient to meet all expenditures of the board
28over a two-year period, the board shall increase the fees by
29regulation, subject to the "Regulatory Review Act," so that the
30projected revenues will meet projected expenditures.

1(2) If the board determines that the fees established by the
2board under subsection (a) are inadequate to meet the minimum
3enforcement efforts required under this act, the board, after
4consultation with the enforcement bureau, and subject to the
5"Regulatory Review Act," shall increase the fees by regulation
6in an amount so that adequate revenues are raised to meet the
7required expenditures.

8(c) All acts or parts of acts are repealed insofar as they
9are inconsistent with this section.

10Section 5. Section 208 of the act is amended to read:

11Section 208. Specific Subjects on Which Board May Adopt
12Regulations.--Subject to the provisions of this act and without
13limiting the general power conferred by the preceding section,
14the board may make regulations regarding:

15[(a) The equipment and management of Pennsylvania Liquor
16Stores and warehouses in which liquor and alcohol are kept or
17sold, and the books and records to be kept therein.]

18(b) The duties and conduct of the officers and employes of
19the board.

20[(c) The purchase, as provided in this act, of liquor and
21alcohol, and its supply to Pennsylvania Liquor Stores.

22(d) The classes, varieties and brands of liquor and alcohol
23to be kept and sold in Pennsylvania Liquor Stores. In making
24this determination the board shall meet not less than twice a
25year.

26(e) The issuing and distribution of price lists for the
27various classes, varieties or brands of liquor and alcohol kept
28for sale by the board under this act.]

29(f) The labeling of liquor and alcohol sold under this act
30and of liquor and alcohol lawfully acquired by any person prior

1to January first, one thousand nine hundred thirty-four.

2(g) Forms to be used for the purposes of this act.

3(h) The issuance of licenses and permits and the conduct,
4management, sanitation and equipment of places licensed or
5included in permits.

6[(i) The place and manner of depositing the receipts of
7Pennsylvania Liquor Stores and the transmission of balances to
8the Treasury Department through the Department of Revenue.

9(j) The solicitation by resident or nonresident vendors of
10liquor from Pennsylvania licensees and other persons of orders
11for liquor to be sold through the Pennsylvania Liquor Stores
12and, in the case of nonresident vendors, the collection
13therefrom of license fees for such privilege at the same rate as
14provided herein for importers' licenses.]

15Section 6. Section 215 of the act, amended June 25, 2010
16(P.L.217, No.35), is repealed:

17[Section 215. Wine and Spirits Marketing.--

18(e) The board is authorized to participate in or sponsor
19wine and spirits events for the purpose of educating consumers
20as to the wines and spirits available in this Commonwealth. The
21wine and spirits to be used for the event may be acquired
22through the State store system or may be donated from outside
23this Commonwealth. Participation in the tastings may be
24conditioned on the purchase of a ticket to the event. The event
25may include events occurring on premises licensed by the board,
26and the board may sell wine and spirits for off-premises
27consumption in an area designated by the board for such sale.]

28Section 7. Section 301 of the act is amended to read:

29Section 301. Board to Establish State Liquor Stores.--(a)
30The board shall [establish,] operate and maintain at such places

1throughout the Commonwealth as it shall deem essential and
2advisable, stores to be known as "Pennsylvania Liquor Stores,"
3for the sale of liquor and alcohol in accordance with the
4provisions of and the regulations made under this act[; except
5that no store not so already located shall be located within
6three hundred feet of any elementary or secondary school, nor
7within a dry municipality without there first having been a
8referendum approving such location. When the board shall have
9determined upon the location of a liquor store in any
10municipality, it shall give notice of such location by public
11advertisement in two newspapers of general circulation. In
12cities of the first class, the location shall also be posted for
13a period of at least fifteen days following its determination by
14the board as required in section 403(g) of this act. The notice
15shall be posted in a conspicuous place on the outside of the
16premises in which the proposed store is to operate or, in the
17event that a new structure is to be built in a similarly visible
18location. If, within five days after the appearance of such
19advertisement, or of the last day upon which the notice was
20posted, fifteen or more taxpayers residing within a quarter of a
21mile of such location, or the City Solicitor of the city of the
22first class, shall file a protest with the court of common pleas
23of the county averring that the location is objectionable
24because of its proximity to a church, a school, or to private
25residences, the court shall forthwith hold a hearing affording
26an opportunity to the protestants and to the board to present
27evidence. The court shall render its decision immediately upon
28the conclusion of the testimony and from the decision there
29shall be no appeal. If the court shall determine that the
30proposed location is undesirable for the reasons set forth in

1the protest, the board shall abandon it and find another
2location. The board may establish, operate and maintain such
3establishments for storing and testing liquors as it shall deem
4expedient to carry out its powers and duties under this act], 
5and subject to the limitations set forth in Article III-A of 
6this act.

7(b) The board may lease the necessary premises for such 
8stores or establishments, but all such leases shall be made 
9through the [Department of General Services] department as agent 
10of the board. The board, through the [Department of General 
11Services] department, shall have authority to purchase such 
12equipment and appointments as may be required in the operation 
13of such stores or establishments.

14Section 8. Section 305 of the act, amended May 8, 2003
15(P.L.1, No.1), July 17, 2003 (P.L.63, No.15), May 8, 2003
16(P.L.1, No.1), December 8, 2004 (P.L.1810, No.239), July 6, 2005
17(P.L.135, No.39) and July 5, 2012 (P.L.1007, No.116), is amended
18to read:

19Section 305. Sales by Pennsylvania Liquor Stores.--(a) The
20board shall in its discretion determine where and what classes,
21varieties and brands of liquor and alcohol it shall make
22available to the public and where such liquor and alcohol will
23be sold. Every Pennsylvania Liquor Store shall be authorized to
24sell combination packages. If a person desires to purchase a
25class, variety or brand of liquor or alcohol not currently
26available from the board, he or she may place a special order
27for such item so long as the order is for two or more bottles.
28The board may require a reasonable deposit from the purchaser as
29a condition for accepting the order. The customer shall be
30notified immediately upon the arrival of the goods.

1In computing the retail price of such special orders for
2liquor or alcohol, the board shall not include the cost of
3freight or shipping before applying the mark-up and taxes but
4shall add the freight or shipping charges to the price after the
5mark-up and taxes have been applied.

6Unless the customer pays for and accepts delivery of any such
7special order within ten days after notice of arrival, the store
8may place it in stock for general sale and the customer's
9deposit shall be forfeited.

10During the retail divestiture process as provided in Article
11III-A, the board shall continue to take and process special
12liquor orders for residents and licensees of the board, and may
13establish a protocol by which pre-paid orders may be picked up
14at either a Pennsylvania Liquor Store or from the licensed
15premises of an enhanced restaurant liquor licensee. An enhanced
16licensee may assess a handling fee for this purpose. Any product
17not claimed at the licensed premises of an enhanced restaurant
18liquor licensee by the purchaser shall be returned to the board
19after ten days' notice of arrival was sent to the purchaser.

20(b) Every Pennsylvania Liquor Store shall sell liquors at
21wholesale to enhanced licensees, hotels, restaurants, clubs, and
22railroad, pullman and steamship companies licensed under this
23act; and, under the regulations of the board, to pharmacists
24duly licensed and registered under the laws of the Commonwealth,
25and to manufacturing pharmacists, and to reputable hospitals
26approved by the board, or chemists. Sales to licensees shall be
27made at a price that includes a discount of ten per centum from
28the retail price, except that sales made to enhanced licensees 
29shall include a discount of twenty per centum from the retail 
30price. The board may sell to registered pharmacists only such

1liquors as conform to the Pharmacopoeia of the United States,
2the National Formulary, or the American Homeopathic
3Pharmacopoeia. The board may sell at special prices under the
4regulations of the board, to United States Armed Forces
5facilities which are located on United States Armed Forces
6installations and are conducted pursuant to the authority and
7regulations of the United States Armed Forces. All other sales
8by such stores shall be at retail. A person entitled to purchase
9liquor at wholesale prices may purchase the liquor at any
10Pennsylvania Liquor Store upon tendering cash, check or credit
11card for the full amount of the purchase. For this purpose, the
12board shall issue a discount card to each licensee identifying
13such licensee as a person authorized to purchase liquor at
14wholesale prices. Such discount card shall be retained by the
15licensee. The board may contract through the Commonwealth
16bidding process for delivery to wholesale licensees at the
17expense of the licensee receiving the delivery.

18(c) Whenever any checks issued in payment of liquor or
19alcohol purchased from State [Liquor Stores] liquor stores by
20persons holding wholesale purchase permit cards issued by the
21board shall be returned to the board as dishonored, the board
22shall charge a fee of five dollars per hundred dollars or
23fractional part thereof, plus all protest fees, to the maker of
24such check submitted to the board. Failure to pay the face
25amount of the check in full and all charges thereon as herein
26required within ten days after demand has been made by the board
27upon the maker of the check shall be cause for revocation or
28suspension of any license issued by the board to the person who
29issued such check and the cancellation of the wholesale purchase
30permit card held by such person.

1(d) No liquor or alcohol package shall be opened on the
2premises of a Pennsylvania Liquor Store. No manager or other
3employe of the board employed in a Pennsylvania Liquor Store
4shall allow any liquor or alcohol to be consumed on the store
5premises, nor shall any person consume any liquor or alcohol on
6such premises, except liquor and alcohol which is part of a
7tasting conducted pursuant to the board's regulations. Such
8tastings may also be conducted in the board's headquarters or
9regional offices.

10(e) The board may sell tax exempt alcohol to the
11Commonwealth of Pennsylvania and to persons to whom the board
12shall, by regulation to be promulgated by it, issue special
13permits for the purchase of such tax exempt alcohol.

14Such permits may be issued to the United States or any
15governmental agency thereof, to any university or college of
16learning, any laboratory for use exclusively in scientific
17research, any hospital, sanitorium, eleemosynary institution or
18dispensary; to physicians, dentists, veterinarians and
19pharmacists duly licensed and registered under the laws of the
20Commonwealth of Pennsylvania; to manufacturing chemists and
21pharmacists or other persons for use in the manufacture or
22compounding of preparations unfit for beverage purposes.

23(f) Every purchaser of liquor, alcohol, corkscrews, wine or
24liquor accessories, trade publications, gift cards, gift
25certificates, wine- or liquor-scented candles or wine glasses
26from a Pennsylvania Liquor Store shall receive a numbered
27receipt which shall show the price paid therefor and such other
28information as the board may prescribe. Copies of all receipts
29issued by a Pennsylvania Liquor Store shall be retained by and
30shall form part of the records of such store.

1[(g) The board is hereby authorized and empowered to adopt
2and enforce appropriate rules and regulations to insure the
3equitable wholesale and retail sale and distribution, through
4the Pennsylvania Liquor Stores, of available liquor and alcohol
5at any time when the demand therefor is greater than the
6supply.]

7(h) Every Pennsylvania Liquor Store shall sell gift
8certificates and gift cards which may be redeemed for any
9product sold by the board. In addition, the board may sell
10corkscrews, wine and liquor accessories, wine- or liquor-scented
11candles, trade publications and wine sleeves at Pennsylvania
12Liquor Stores.

13(i) Notwithstanding any other provision of law to the
14contrary, the board may sell wine in containers having a
15capacity of sixty liters or less.

16Section 9. The act is amended by adding an article to read:

17ARTICLE III-A

18WINE AND SPIRITS DISTRIBUTION

19SUBARTICLE A

20GENERAL PROVISIONS

21Section 301-A. Scope of article.

22This article relates to the privatization of liquor
23distribution in this Commonwealth.

24Section 302-A. Legislative intent.

25The General Assembly finds and declares as follows:

26(1) The wholesale and retail of liquor should no longer
27be by the Commonwealth, but rather by private persons
28licensed and regulated by the Commonwealth.

29(2) The health and welfare of the citizens of this
30Commonwealth will be adequately protected by the regulation

1of private licensees through strict enforcement of laws and
2rules relating to the purchase and sale of liquor.

3(3) The sale of liquor through wholesale and retail
4licensees will provide residents with improved customer
5convenience, and will provide an opportunity for competitive
6pricing and enhanced product selection.

7(4) Modernization of the retail sale of wine and beer
8through new outlets for consumption off the premises will
9further enhance customer convenience.

10(5) This article will improve operation and efficiency
11of State government.

12(6) The authorization of wine and spirits wholesale and
13retail licenses is intended to continue the generation of
14revenue to the Commonwealth related to the wholesale and
15retail sale of liquor.

16(7) The transition to a privately-owned and privately-
17operated wholesale and retail liquor distribution system
18should be accomplished in a manner that protects the public
19through regulation and policing of all activities involved in
20the wholesale and retail sale of liquor.

21(8) The establishment of wine and spirits wholesale and
22retail licenses is intended to provide broad economic
23opportunities to the citizens of this Commonwealth and to be
24implemented in such a manner as to prevent monopolization by
25establishing reasonable restrictions on the control of
26wholesale and retail licensees.

27(9) The transition to a privately-owned and privately-
28operated wholesale and retail liquor distribution system
29should be accomplished in a manner that minimizes disruption
30of services to the public.

1(10) With the transition to a privately-owned and 
2privately-operated wholesale and retail liquor distribution 
3system, and with the addition of new licensing 
4classifications, it is necessary to enhance alcohol education 
5and enforcement efforts to:

6(i) ensure against the illegal sale of alcohol;

7(ii) prevent and combat the illegal consumption of
8alcohol by minors and visibly intoxicated persons; and

9(iii) discourage the intemperate use of alcohol.

10(11) Participation in the wholesale and retail sale of
11liquor by a wholesale or retail licensee is a privilege,
12conditioned upon the proper and continued qualification of
13the licensee and upon the discharge of the affirmative
14responsibility of the licensee to provide the department and
15the board with assistance and information necessary to assure
16that the policies declared by this article are achieved.

17Section 303-A. Transition to private distribution system,
18powers and duties of the department and the board.

19(a) Orderly transition.--The department and the board have
20the power and duty to implement this article and effect an
21orderly transition to a privately-owned and privately-operated
22wholesale and retail liquor distribution system in this
23Commonwealth in a manner which is consistent with this article
24and the laws of this Commonwealth and which seeks to maintain
25uninterrupted service to the public.

26(b) Retail transition.--

27(1) The department shall substantially transition the
28board's retail distribution of alcohol to privately-owned and
29privately-operated enhanced licensees before divesting the
30board's wholesale operations. The department shall engage the

1services of a consultant to assist the committee in
2effectuating the intent of this section. The department shall
3not be bound by the procedural constraints or requirements of
462 Pa.C.S. Pt. I (relating to Commonwealth Procurement Code)
5in hiring the consultant.

6(2) The divestiture of the board's retail operations
7shall be accomplished through the issuance of enhanced
8licenses as set forth in this act. Each successful applicant
9shall be thoroughly investigated to determine whether the
10person is a reputable and responsible person suitable to be
11licensed to sell liquor in this Commonwealth.

12(3) Enhanced licenses shall be issued in accordance with
13section 331-A.

14(c) Wholesale transition.--

15(1) After the board's retail operations have been
16substantially divested, the department shall transition the
17board's wholesale distribution of liquor to privately-owned
18and privately-operated wholesale licensees.

19(2) The divestiture of the board's wholesale operations
20shall be accomplished through the issuance of wine and
21spirits wholesale licenses by brand of liquor for a wholesale
22district, which shall be subject to an application process as
23set forth in this article. The transition must fully divest
24the board of all operations relating to the wholesale
25distribution of liquor within six months of the complete
26divestiture of the board's retail operations.

27(d) Cooperation required.--

28(1) The board shall fully cooperate with the department
29or its consultant in all aspects of implementation of this
30article and shall provide the department or its consultant

1with all records and information in the possession of the
2board upon request.

3(2) The board shall devote sufficient resources to
4planning and preparation for the divestiture of its wholesale
5and retail functions.

6(3) The board shall use its best efforts in coordinating
7with the department or its consultant, enhanced licensees and
8wine and spirits wholesale licensees so as to maintain
9uninterrupted service to the residents of this Commonwealth
10during divestiture.

11(e) Prohibition.--The board shall not engage in retail or
12wholesale distribution of liquor following completion of the
13retail and wholesale transition to a private distribution
14system.

15Section 304-A. Reports to the General Assembly.

16One year after the effective date of this section, and each
17year thereafter until the board has been fully divested of its
18wholesale and retail operations, the board, in cooperation with
19the department, shall submit to the Secretary of the Senate and
20the Chief Clerk of the House of Representatives, a report on
21wholesale and retail alcohol sales in this Commonwealth and the
22implementation of this article, including:

23(1) the total revenue earned by the issuance of licenses
24under this article;

25(2) the distribution and sale of brands through private
26wholesalers;

27(3) the net profit or loss of the premises of each
28enhanced restaurant liquor license and State liquor store in
29this Commonwealth; and

30(4) the status of the ongoing transition, including

1store closures and employee displacement.

2Section 305-A. Temporary regulations.

3(a) Promulgation.--In order to facilitate the prompt
4implementation of this article, regulations promulgated by the
5department shall be deemed temporary regulations which shall
6expire no later than five years following the effective date of
7this section. The department may promulgate temporary
8regulations not subject to:

9(1) sections 201, 202 and 203 of the act of July 31,
101968 (P.L.769, No.240), referred to as the Commonwealth
11Documents Law; or

12(2) the act of June 25, 1982 (P.L.633, No.181), known as
13the Regulatory Review Act.

14(b) Expiration.--The authority provided to the department to
15adopt temporary regulations under subsection (a) shall expire on
16January 1, 2018.

17SUBARTICLE B

18DIVESTITURE OF RETAIL LIQUOR DISTRIBUTION

19Section 311-A. Retail divestiture through issuance of enhanced
20restaurant liquor licenses.

21(a) Formation of retail divestiture strategy committee.--

22(1) Upon the effective date of this section, the
23department shall appoint individuals to a retail divestiture
24strategy committee, which shall be comprised of
25representatives from the department, representatives from a
26consultant hired by the department to facilitate the
27divestiture process and at least one representative from each
28of the board's Bureau of Retail Operations, Bureau of Supply
29Chain and Bureau of Licensing.

30(2) The committee shall be chaired by a representative

1from the department.

2(3) The committee shall establish the procedures and
3logistical steps necessary to implement the retail
4divestiture process, within the framework of this article.
5The role of the committee is to provide advisory input to the
6department during the divestiture process; and, as such, its
7meetings are not subject to 65 Pa.C.S. Ch. 7 (relating to
8open meetings).

9(b) Initiation of divestiture.--The department shall
10coordinate efforts so that the auction process under this
11subarticle concludes not later than three years and six months
12from the effective date of this section.

13Section 312-A. Sale of enhanced licenses.

14(a) Authorization.--The department may sell an enhanced
15restaurant liquor license to a restaurant liquor license holder
16and may sell an enhanced distributor license to an existing
17distributor license holder. Within 120 days of the effective
18date of this section, the department will establish procedures
19by which the holder of a restaurant liquor license may apply for
20an enhanced restaurant liquor license and by which the holder of
21a distributor license may apply for an enhanced distributor
22liquor license.

23(b) Factors to determine offering price.--In determining the
24appropriate offering price of licenses to be sold in each
25county, the department shall consider the following factors:

26(1) The existing number, location and sizes of the State 
27liquor stores in the county and neighboring counties.

28(2) The hours of operation for existing State liquor
29stores in the county.

30(3) The geographic size and population density of the

1county.

2(4) The most recent sales data from the board for:

3(i) existing stores;

4(ii) number of stock-keeping units made available in 
5those stores; and

6(iii) sales trends of those stores.

7(5) Other information the department deems relevant in 
8order to ensure the reasonable availability of wine and 
9spirits in the county.

10Section 313-A. (Reserved).

11Section 314-A. Postqualification of selected applicants.

12(a) Investigation.--Upon receipt of an application for an
13enhanced license, the department shall immediately convey the
14application to the board's Bureau of Licensing, which shall
15conduct an investigation of each applicant based upon the
16information submitted to evaluate whether:

17(1) the applicant qualifies as a reputable, responsible
18and suitable person to hold an enhanced license;

19(2) the applicant has proposed an acceptable facility
20and location for a retail establishment in the business of
21selling malt beverages, wine and spirits; and

22(3) the applicant's planned operation complies with this
23article.

24(b) Additional information.--The board may require
25additional information from an applicant and conduct onsite
26inspections, as necessary, to complete the postqualification
27process.

28(c) Assistance with investigations.--The board may enter
29into an agreement with the Pennsylvania State Police or the
30Office of Inspector General to assist the board in the conduct

1of investigations under this section and to provide for the
2reimbursement of actual costs incurred for providing assistance.

3(d) Public input hearings.--

4(1) During the postqualification process, the board
5shall schedule one public input hearing in each of the
6designated territories, including one in a city of the first
7class, at which interested members of the public will be
8provided the opportunity to testify regarding selected
9applicant qualifications and the suitability of the location
10of the proposed retail establishments in the business of
11selling malt beverages, wine and spirits. The testimony of a
12public witness shall be considered by the board in the
13postqualification investigation of applicants to which the
14testimony applies.

15(2) The board shall establish a protocol for receiving
16written objections from residents, churches, hospitals,
17charitable institutions, schools and public playgrounds,
18which are located near proposed retail establishment
19locations. The board may consider the written objections in
20the postqualification investigation of applicants to which
21the testimony applies. An objector under this paragraph may
22not appeal the board's decision.

23(e) Investigative fees.--The board may charge fees to an
24applicant to recover the costs directly related to the board's
25investigation within the postqualification process.

26(f) Acceptance of qualifications.--An applicant's
27qualifications shall be accepted by the board if the board's
28investigation reveals all of the following:

29(1) The information submitted in the application was
30truthful.

1(2) The applicant and its officers, directors and
2principals, if any, are of good repute, responsible and
3suitable for operating a retail establishment in the business
4of selling malt beverages, wine and spirits.

5(3) The applicant possesses sufficient financial
6resources to:

7(i) operate the retail establishment;

8(ii) pay taxes due; and

9(iii) meet financial obligations.

10(4) The applicant possesses sufficient business
11experience to operate the retail establishment.

12(5) The proposed facilities are compliant with all of
13the operational requirements of the statement of conditions
14under this article.

15(6) The proposed location is suitable within the
16community.

17(g) Issuance of license.--If a selected applicant's
18qualifications are accepted by the board, the board shall
19qualify the applicant and shall issue an enhanced license to the
20applicant upon the occurrence of the following:

21(1) Execution and delivery to the department and the
22board of the statement of conditions required under section
23319-A.

24(2) Payment of the offering price by certified check or
25wire transfer to a designated restricted account established
26in The State Stores Fund.

27(3) Payment of any outstanding or investigation fees.

28(4) Fulfillment of any other conditions required by the
29department or the board.

30(h) Qualifications unacceptable.--If an applicant's

1qualifications are not accepted by the board, the board shall
2submit the results of its investigation and the rationale for
3this conclusion to the department.

4(i) Approval of qualifications.--If the qualifications of
5the applicant are approved by the board under subsection (f),
6the board shall issue an enhanced license to the successful
7applicant consistent with the requirements of subsection (g).

8(j) Enhanced license not entitlement.--

9(1) Nothing contained in this article is intended to
10create an entitlement to an enhanced license. An enhanced
11license is a privilege as between the board and the enhanced
12licensee.

13(2) An enhanced license is property as between the
14enhanced licensee and third parties.

15(k) Terms of licensure.--

16(1) An enhanced license shall be in effect unless the
17board:

18(i) revokes, suspends or fails to renew the enhanced
19license; or

20(ii) revokes the operating authority of the enhanced
21licensee under the enhanced license requirements of this
22article.

23(2) An enhanced license shall be subject to renewal
24every two years consistent with this article.

25(3) Nothing under this subsection relieves an enhanced
26licensee of the affirmative duty to notify the board of
27changes relating to the status of its enhanced license or to
28other information contained in the application materials on
29file with the department or the board.

30Section 315-A. (Reserved).

1Section 316-A. (Reserved).

2Section 317-A. (Reserved).

3Section 317.1-A. Minimum bid for retail auctions.

4The department shall establish minimum bid amounts for retail
5auctions and shall publish the amounts in the Pennsylvania
6Bulletin and on the department's Internet website.

7Section 318-A. (Reserved).

8Section 319-A. Enhanced licensee statement of conditions.

9(a) Statement of conditions.--The department, in
10consultation with the board, shall develop a statement of
11conditions to be executed by each enhanced licensee governing
12the operations of the enhanced licensee.

13(b) Conditions.--In addition to any other conditions the
14department, in consultation with the board, deems necessary or
15appropriate for a specific enhanced licensee, a statement of
16conditions under this section shall include, at a minimum, the
17following conditions and impose the following obligations and
18requirements on an ongoing basis:

19(1) Under section 493.2, an enhanced licensee may not
20sell or distribute liquor to an individual under 21 years of
21age or to an individual who is visibly intoxicated.

22(2) An enhanced licensee may not operate a retail
23establishment in the business of selling malt beverages, wine
24and spirits located within:

25(i) Three hundred feet of an elementary or secondary
26school without department or board approval.

27(ii) A municipality which has voted to preclude the
28establishment of a State liquor store, unless the
29municipality subsequently votes to permit the board to
30issue an enhanced license.

1(2.1) An enhanced license may not be operated on real
2property upon which is located as a business the sale of
3liquid fuels and oil if the point of sale or dispensing of
4liquid fuels and oil is within 100 feet of the closest point
5to the physical building in which the enhanced license is
6located.

7(3) An enhanced licensee's wine and spirits store and
8all facilities involved in its retail operations, including
9any changes to those facilities during the term of the
10license, are subject to the inspection, investigation and
11approval of the department, the board and the enforcement
12bureau.

13(4) An enhanced licensee shall maintain adequate
14security to protect the licensee's inventory from
15unauthorized sale or diversion and prevent its unauthorized
16distribution. Nothing in this paragraph shall preclude an
17enhanced licensee from moving wine and spirits inventory
18between wine and spirits retail stores under common ownership
19on a periodic basis upon no less than one day's notice to the
20board and the enforcement bureau.

21(5) Unless specifically authorized in this act or with
22the prior approval of the board, an enhanced licensee may not
23engage in a separate business activity upon any enhanced
24licensed premises on which retail liquor operations are
25conducted.

26(6) Except in an emergency, as defined by regulation by
27the board, an enhanced licensee may not sell wine or spirits
28to enhanced licensees.

29(7) An enhanced licensee shall notify the board within
3015 days of a change in persons holding a controlling interest

1in the enhanced licensee.

2(8) An enhanced licensee shall notify the board within
315 days of becoming aware of an arrest or criminal indictment
4or conviction by the following:

5(i) If the enhanced licensee is an individual, the
6enhanced licensee.

7(ii) If the enhanced licensee is a partnership, a
8partner.

9(iii) If the enhanced licensee is an association, a
10member.

11(iv) If the enhanced licensee is a corporation, any
12officer, director or shareholder holding a controlling
13interest in the corporation.

14(v) An affiliate of the enhanced licensee.

15(9) An enhanced licensee shall notify the board within
1615 days of becoming aware of a violation of this article by
17an individual listed in paragraph (8).

18(10) The premises of each store must be a self-contained
19unit with limited customer access dedicated to the sale of
20liquor and related merchandise. Except for an enhanced
21licensee that holds an enhanced distributor license, no wine
22and spirits store may have an interior connection with
23another business or with a residential building except as
24approved by the board. Purchases of wine and spirits shall be
25paid for at a location within the confines of the enhanced
26licensed premises.

27(11) An enhanced licensee shall configure its enhanced
28licensed premises in a manner and with adequate safeguards to
29ensure that its liquor products are secure and that the
30enhanced licensed area may not be accessed during prohibited

1hours of operation.

2(12) An enhanced licensee may not do any of the
3following:

4(i) Hold, directly or indirectly, more than 60 
5enhanced licenses within this Commonwealth.

6(ii) Own more than:

7(A) ten percent of the enhanced licenses in a 
8county which has at least ten enhanced licenses; or

9(B) one enhanced license in a county which has
10less than ten enhanced licenses.

11(13) A wine and spirits store may sell liquor for
12consumption off the premises and related merchandise within
13the enhanced licensed area of the store. Sales of related
14merchandise within the enhanced licensed area may not exceed
1530% of the gross annual sales of a wine and spirits store.

16(14) An enhanced licensee shall make the premises and
17the facilities involved in the retail operation and all of
18the business and financial books and records of the retail
19operation available at any time for inspection and audit by
20the board and the enforcement bureau. The board shall
21promulgate regulations regarding the records that an enhanced
22licensee must maintain in its enhanced licensed premises.

23(15) An enhanced licensee may sell wine or spirits
24between 9 a.m. and 11 p.m. of any day except Sunday to:

25(i) a person not licensed under this act;

26(ii) a holder of a special occasion permit; or

27(iii) a holder of a wine auction permit.

28(16) In addition to the hours authorized under paragraph
29(15), an enhanced licensee may, upon purchasing a permit from
30the board at an annual fee of $2,000, sell wine or spirits on

1Sunday between the hours of 9 a.m. and 9 p.m. to:

2(i) a person not licensed under this act;

3(ii) a holder of a special occasion permit; or

4(iii) a holder of a wine auction permit.

5(17) An enhanced licensee may not employ an individual
6under 18 years of age to work on the enhanced licensed
7premises. An employee under 21 years of age of an enhanced
8licensee may not engage in the sale of liquor.

9(18) An enhanced licensee may not hold a wine and
10spirits wholesale license.

11(19) An enhanced licensee that is a corporation, a
12limited liability company, a limited partnership, a
13partnership, an association or other legal entity, must be
14organized under the laws of this Commonwealth.

15(20) An enhanced licensee who is an individual must be a
16citizen of the United States and a resident of this
17Commonwealth.

18(21) An enhanced licensee shall:

19(i) comply with the responsible alcohol management
20program training under section 471.1; and

21(ii) ensure that all wine and spirits store managers
22and employees who may engage in the sale of liquor attend
23required training within six months of commencing
24employment.

25(22) An enhanced licensee may place its license in
26safekeeping for a period not to exceed two years:

27(i) pending transfer of the license from person-to-
28person or place-to-place, or both; or

29(ii) during renovation of the premises upon which
30retail operations are conducted.

1(23) An enhanced license which remains in safekeeping
2for a period that exceeds two consecutive years shall be
3forfeited and resold by the board in a manner consistent with
4this subarticle.

5(24) Except as set forth in paragraph (17), an
6individual under under 21 years of age may not enter the
7enhanced licensed areas of the enhanced licensee unless
8accompanied by an adult.

9(25) An enhanced licensee shall utilize a transaction
10scan device to verify the age of an individual before making
11a sale of alcohol. As used in this paragraph, the term
12"transaction scan device" means a device capable of
13deciphering in an electronically readable format the
14information encoded on the magnetic strip or bar code of an
15identification card under section 495(a).

16(26) An enhanced licensee may not sell a liquor product
17at a price less than its underlying cost.

18(27) An enhanced restaurant licensee may not provide
19tasting samples of liquor on the premises where retail
20operations are conducted. An enhanced distributor licensee
21may provide tasting samples of liquor on the premises where
22retail operations are conducted under the following
23conditions:

24(i) An offering of tasting samples shall be limited
25to a period of not more than six hours per day and no
26more than three days per week.

27(ii) Tasting samples shall be limited to one per day
28per person for a given liquor with a maximum of four
29tasting samples per person per day.

30(iii) An enhanced distributor licensee shall apply
 

1to the department on a monthly basis with proposed 
2tasting dates and the department shall have the ability 
3to deny proposed tastings for cause.

4For the purposes of this paragraph, a "tasting sample" is a
5small amount of liquor that is provided in a serving of not
6more than a quarter ounce, and if provided, not more than one
7ounce of nonalcoholic mixer.

8(28) An enhanced licensee may not require a customer to
9purchase a membership or pay a fee in order to purchase
10products, including wine and spirits, from the enhanced
11license premises.

12(29) In an inquiry or investigation by the department,
13the board or the enforcement bureau, an enhanced licensee
14shall cooperate fully and provide requested information.

15(30) An enhanced licensee shall be considered a State
16liquor store for the purposes of collecting and remitting
17taxes consistent with the act of March 4, 1971 (P.L.6, No.2),
18known as the Tax Reform Code of 1971, from a person other
19than a person licensed to sell liquor for consumption on the
20enhanced licensed premises under Article IV.

21(31) An enhanced distributor licensee shall devote a
22section of its sales space for products sold by holders of
23limited winery, limited distillery and distillery licenses
24and shall attempt to diversify product selection with liquor
25produced by those holders.

26(c) Sanctions.--

27(1) An enhanced licensee that fails to abide by any
28condition contained in the enhanced licensee's statement of
29conditions or commits any violation of this act or other
30Federal or State law shall be subject to citation by the

1enforcement bureau.

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

3(i) a fine, suspension or revocation of an enhanced 
4license;

5(ii) nonrenewal of an enhanced license;

6(iii) revocation of temporary operating authority;
7or

8(iv) other penalties authorized under sections 471
9and 494.

10SUBARTICLE C

11DIVESTITURE OF WHOLESALE LIQUOR DISTRIBUTION

12Section 321-A. Wholesale divestiture.

13(a) Utilization.--In effectuating the intent of this
14article, the department shall utilize the authority provided
15under section 305-A and any other powers of the department, with
16the full cooperation and assistance of the board.

17(b) Establishment.--On the effective date of this section,
18the department shall establish all of the following:

19(1) An application process and schedule for the
20investigation and award of wine and spirits wholesale
21licenses in each of the wholesale districts under this
22article.

23(2) A blended brand valuation for each brand of liquor
24available for sale in the wholesale districts.

25(3) Procedures and standards governing the relationship
26between wine and spirits wholesale licensees and
27manufacturers and the ability and terms upon which that
28relationship may be terminated.

29(c) Coordination.--

30(1) The department shall:

1(i) coordinate scheduling so that wine and spirits
2wholesale license applications may be received, processed
3and investigated by the board's Bureau of Licensing
4during the retail divestiture process; and

5(ii) begin a coordinated effort to allow the board
6to issue licenses after the board has been substantially
7divested of its retail operations.

8(2) The department must fully divest the board of all
9operations relating to the wholesale distribution of liquor
10within six months of the complete divestiture of the board's
11retail operations.

12Section 321.1-A. Issuance of wine and spirits wholesale
13licenses.

14(a) Authorization.--The board may issue wine and spirits
15wholesale licenses under the following conditions:

16(1) The following shall apply:

17(i) For each wholesale district, one wine and
18spirits wholesale license per brand may be issued by the
19board to one qualified applicant.

20(ii) A wine and spirits wholesale license shall
21authorize the holder to sell and distribute one brand of
22liquor in a wholesale district, as proposed by an
23applicant and approved by the department, to wine and
24spirits retail licensees and other licensees of the board
25authorized to sell or distribute liquor under this act,
26to United States Armed Forces facilities located on
27United States Armed Forces installations within the
28wholesale district and to the holder of a wholesale
29alcohol purchase permit in the wholesale district as
30issued by the board.

1(iii) A wine and spirits wholesale licensee may
2provide for the direct shipment or delivery of products
3to licensees of the board.

4(iv) An applicant may submit an application for more
5than one wholesale district and for more than one brand
6of liquor.

7(2) Subject to the conditions and restrictions of this
8subarticle, wine and spirits wholesale licensees may sell and
9distribute more than one brand of liquor, if approved to do
10so by the board, under the same wine and spirits wholesale
11license.

12(3) Upon application by a wine and spirits wholesale
13licensee, the board may amend its initial authorization under
14a wine and spirits wholesale license to include additional
15brands of liquor or exclude previously-approved brands of
16liquor.

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

18(1) On the effective date of this section, the
19department shall determine the wine and spirits wholesale
20license fee for each wholesale district by brand of liquor
21sold at wholesale by the board through its State liquor
22stores or via special liquor order for a continuous period of
23at least one year. The license fee shall be equal to the
24blended brand valuation for each brand of liquor authorized
25by the wine and spirits wholesale license multiplied by the
26wholesale acquisition factor for each wholesale district.

27(2) The department shall publish a notice in the
28Pennsylvania Bulletin and on its Internet website of the wine
29and spirits wholesale license fee for each brand of liquor
30determined under paragraph (1). The department shall

1establish deadlines within which an applicant must submit an
2application for a wine and spirits wholesale license for the
3brands of liquor specified by the applicant.

4(3) The department shall permit an applicant to pay the
5fee on a monthly basis for a term not to exceed 48 months,
6provided that the applicant agrees to pay the amount of the
7fee plus 5% and that the monthly payments are in equal
8amounts.

9(c) Brands not previously sold.--

10(1) For brands of liquor that have not been sold by the
11board at State liquor stores or via special liquor order for
12a continuous period of at least one year, the department
13shall calculate the blended brand valuation utilizing sales
14data for any portion of the year that the brand was sold in
15the wholesale districts, after consulting with the board on
16the most recent sales trends of the brand, both within the
17wholesale districts and outside this Commonwealth.

18(2) If, during the term of a wine and spirits wholesale
19license, a wine and spirits wholesale licensee proposes to
20sell and distribute a new brand of liquor not previously sold
21in this Commonwealth, the wine and spirits wholesale licensee
22shall apply to the board for permission to sell the brand and
23pay an additional license fee determined in accordance with
24this section. In calculating the blended brand valuation for
25the new products, the board shall evaluate available sales
26data in other markets or sales trends of similar products
27either within the wholesale districts or outside this
28Commonwealth.

29(d) Term.--

30(1) A wine and spirits wholesale license, after payment

1of the required license fee, shall be in effect unless
2suspended, revoked or not renewed under this article.

3(2) The license of a wine and spirits wholesale licensee
4in good standing shall be renewed every two years under this
5article.

6(3) Nothing under this subsection shall be construed to
7relieve a wine and spirits wholesale licensee of the
8affirmative duty to notify the board of changes relating to
9any of the following:

10(i) The status of its license.

11(ii) Information contained in the application
12materials on file with the department or the board.

13Section 322-A. Application for wine and spirits wholesale
14license.

15(a) Applications.--An application for a wine and spirits
16wholesale license shall be submitted on a form and in a manner
17as required by the board.

18(b) Eligibility.--A person may be eligible to apply for a
19wine and spirits wholesale license if the person satisfies all
20of the following:

21(1) Neither the applicant nor any affiliate of the
22applicant has applied for or holds an enhanced license or
23other license which authorizes the retail sale of wine and
24spirits to consumers.

25(2) The applicant is organized under the laws of this
26Commonwealth if it is any of the following:

27(i) A corporation.

28(ii) A limited liability company.

29(iii) A limited partnership.

30(iv) A partnership.

1(v) An association.

2(vi) A legal entity other than a legal entity listed
3under this paragraph.

4(3) The applicant is a citizen of the United States and
5a resident of this Commonwealth if that applicant is a
6natural person.

7(4) Neither the applicant nor any affiliate of the
8applicant, executive officer, director or general or limited
9partner of the applicant or person holding, directly or
10indirectly, a controlling interest in the applicant has been
11convicted of a crime listed under subsection (d)(10).

12(c) Other licenses.--Nothing under this act shall prohibit:

13(1) A properly licensed importing distributor of malt
14and brewed beverages from applying for and, if approved,
15being issued a wine and spirits wholesale license.

16(2) The holder of a limited winery license, a limited
17distillery license or a distillery license issued by the
18board from acquiring a wine and spirits wholesale license.

19(d) General requirements.--In addition to any other
20information required under this article or by the department or
21the board, the applicant for a wine and spirits wholesale
22license shall include the following:

23(1) The name, address and tax identification number of
24the applicant.

25(2) A statement as to whether the applicant is an
26individual, corporation, limited liability company, limited
27partnership, partnership or association and, if the applicant
28is not an individual, the state of incorporation or
29organization.

30(3) If the applicant is not an individual, the name and

1residence address of each executive officer, director,
2general or limited partner or person holding a controlling
3interest in the applicant.

4(4) If the applicant is an association, the name and
5residence address of each person constituting the
6association.

7(5) A list of the brands of liquor the applicant
8proposes to engage in wholesale distribution territory within
9the wholesale district or districts applied for.

10(6) A sworn statement that the applicant has entered
11into a contractual relationship with one or more liquor
12manufacturers, importers or vendors of record for the
13distribution within the wholesale district or districts
14applied for of a brand or brands of liquor, regardless of
15whether the contractual relationship is contingent upon the
16board issuing a wine and spirits wholesale license to the
17applicant.

18(7) The proposed location and proof of ownership or
19lease for the wholesale operation, including proposed
20warehouses, if available.

21(8) Floor plans for any facility proposed to be used in
22wholesale operations and existing design plans for any
23facility that is planned, but not yet constructed, to the
24extent the floor plans are available.

25(9) Information disclosing all arrests of and all
26citations issued for nonsummary offenses to an applicant and
27any affiliate of the applicant, executive officer, director
28or general or limited partner of the applicant or person
29holding a controlling interest in the applicant. The
30information shall include:

1(i) A brief description of the circumstances
2surrounding the arrest or issuance of the citation.

3(ii) The specific offense charged or cited.

4(iii) The ultimate disposition of the charge or
5citation, including the details of a dismissal, plea
6bargain, conviction, sentence, pardon, expungement or
7order of Accelerated Rehabilitative Disposition.

8(10) A sworn statement that the applicant and any
9affiliate of the applicant, or any executive officer,
10director or general or limited partner of the applicant or
11person holding a controlling interest in the applicant have
12never been convicted:

13(i) of a crime involving fraud, moral turpitude or
14racketeering within a period of ten years immediately
15preceding the date of the application;

16(ii) of a felony or equivalent crime; or

17(iii) in a Federal or state tribunal, including this
18Commonwealth, of the violation of a Federal or state
19liquor law.

20(11) A statement that the applicant intends to
21continuously operate as a wine and spirits wholesale licensee
22for the duration of the license term and to use its best
23efforts to provide a level of service, including product
24availability, reasonably equivalent to the level of service
25currently provided by the Commonwealth.

26(12) A financial statement or letter of credit in a form
27and containing information determined by the department to
28indicate the applicant's financial capability to operate the
29wholesale operation and the estimated volume of wholesale
30business to be conducted annually.

1(13) A current tax certificate issued by the Department
2of Revenue showing the amount of taxes owed to the
3Commonwealth for the applicant and any affiliate of the
4applicant, executive officer, director or general or limited
5partner of the applicant or person holding a controlling
6interest in the applicant.

7(14) A signature and verification by oath or affirmation
8or under penalty of unsworn falsification to authorities by
9one of the following:

10(i) The applicant, if the applicant is a natural
11person.

12(ii) A person specifically authorized by the legal
13entity to sign the application, if the applicant is a
14legal entity. Written evidence of the authority to sign
15must be attached to the signature and verification.

16(e) Additional information.--An applicant shall, during the
17application process, provide any other information determined to
18be appropriate by the department.

19(f) Amended application.--If a change occurs in any
20information provided to the department or the board as part of
21the application process, the applicant shall immediately notify
22the department or the board of the change and timely provide
23amended information to the department or the board in a form and
24manner determined by the department or the board.

25(g) Application fees and investigative costs.--

26(1) An application filing fee of $10,000 shall be due
27upon application for a wine and spirits wholesale license.
28The application filing fee shall be refunded if, due to no
29fault of the applicant, the wine and spirits wholesale
30license is not approved.

1(2) The department shall establish, charge and collect
2fees from an applicant to recover the costs directly related
3to the board's review and investigation of the application
4for a wine and spirits wholesale license. The board shall
5have the same authority relating to fees as to applications
6for renewal.

7Section 323-A. Review and investigation of application.

8(a) Completeness of application.--

9(1) The following shall apply:

10(i) The department may not consider an incomplete
11application and shall notify the applicant in writing if
12an application is incomplete.

13(ii) An application shall be considered incomplete
14if it does not include all applicable fees and all
15information and accompanying documentation required by
16the department. Unpaid taxes identified on the tax 
17certificate required to be filed under section 
18322-A(d)(13) must be paid before the application is 
19considered complete.

20(2) A notification of incompleteness shall state the
21deficiencies in the application that must be corrected prior
22to consideration of the merits of the application.

23(3) The applicant must be afforded a reasonable period
24of time, as determined by the department, to cure the
25deficiencies.

26(4) If the applicant fails to timely cure noticed
27deficiencies within the time specified by the department, the
28application shall be deemed denied by the department without
29further action.

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

1wine and spirits wholesale license and a determination that the
2application is complete, the department shall provide the
3application to the board's Bureau of Licensing to conduct an
4investigation of the applicant. The investigation shall include
5and the applicant shall have the burden of demonstrating the
6following:

7(1) The truth and veracity of the information provided
8in the application.

9(2) The applicant's cooperation and the cooperation of
10any affiliate of the applicant and any executive officer,
11director or general or limited partner of the applicant or
12person holding a controlling interest in the applicant in the
13application process and with any request by the department or
14the board for any information deemed necessary for licensure.

15(3) The good character, reputation and suitability of
16the applicant and any affiliate of the applicant, executive
17officer, director or general or limited partner of the
18applicant or person holding a controlling interest in the
19applicant.

20(4) The applicant possesses sufficient financial
21resources to:

22(i) Operate as a wine and spirits wholesale
23licensee.

24(ii) Pay all taxes due and owing to the
25Commonwealth.

26(iii) Assume liability for the safe operation of the
27wholesale operations.

28(5) The applicant possesses sufficient financial
29resources and experience to create and maintain a successful
30and efficient wholesale operation that provides service at a

1level that is reasonably equivalent to the level of service
2currently provided on the effective date of this section in
3this Commonwealth.

4(6) The applicant has entered into a contractual
5relationship with one or more licensed manufacturers,
6importers or vendors of record for the distribution in the
7wholesale district or districts applied for of a brand or
8brands of liquor regardless of whether the contractual
9relationship is contingent upon the board issuing a wine and
10spirits wholesale license to the applicant.

11(7) The physical facilities proposed to be used in the
12applicant's wholesale operations are located and designed to:

13(i) assure that all warehouses are located within
14the wholesale districts and licensed for the storage of
15liquor;

16(ii) function as a self-contained unit, with limited
17customer access;

18(iii) not have any interior connection with any
19other business or with any residential building without
20prior department or board approval;

21(iv) provide adequate security to protect the
22applicant's inventory from unauthorized sale or
23diversion; and

24(v) protect the public interest.

25(c) Assistance with investigations.--The department may
26enter into an agreement with the Pennsylvania State Police or
27the Office of Inspector General to assist the department in
28conducting investigations under this section and to provide for
29the reimbursement of actual costs incurred for providing the
30assistance. The department may establish, charge and collect

1fees from an applicant to recover the costs of investigation.

2Section 324-A. Issuance of licenses.

3(a) Notification.--Upon completion of the investigation
4under section 323-A, the board shall inform the department of
5the results of its investigation. The department shall inform
6the applicant in writing of its decision to approve or deny the
7application.

8(b) Approval.--If the application is approved, the
9department shall require the successful applicant to pay the
10license fee, as required under section 321.1-A, based on the
11brand licensing fees established under section 321.1-A for the
12wholesale district and brands of liquor approved for the
13applicant.

14(c) Denial.--

15(1) If an application is denied, the department shall
16provide the applicant with the specific reasons for the
17denial in the written notification required under subsection
18(a).

19(2) The applicant shall be entitled to a hearing on the
20denial, if a hearing is requested within ten days of the
21department's notification and the request is in writing on a
22form and in a manner determined by the department.

23(3) A hearing under this subsection shall be conducted
24in accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating to
25practice and procedure of Commonwealth agencies).

26(d) Issuance.--After approval of an application, the board
27shall issue a wine and spirits wholesale license to the
28applicant for the exclusive privilege to sell an approved brand
29of liquor in a wholesale district, if the applicant has
30completed all of the following:

1(1) Paid the wine and spirits wholesale license fee
2required under this article. Payment must be made by
3certified check or wire transfer to a designated restricted
4account in The State Stores Fund.

5(2) Paid outstanding application or investigation fees.

6(3) Executed and delivered to the board the statement of
7conditions required under section 325-A.

8(4) If deemed necessary by the board, repurchased from
9the board remaining marketable inventory in the wholesale
10district of the brand authorized under its license which is
11owned by the board at the board's purchase order cost and
12paid applicable taxes due and an administrative fee
13determined by the board. The wine and spirits wholesale
14licensee shall coordinate, at its own cost, the removal of
15remaining product owned by the board in the wholesale
16district.

17(5) Fulfilled any other conditions required by the
18department or the board or provided for under this article.

19(e) License as privilege.--

20(1) Nothing under this article is intended or may be
21construed to create an entitlement to a wine and spirits
22wholesale license.

23(2) The authorization to participate in the distribution
24and sale of liquor as a wine and spirits wholesale licensee
25is a privilege conditioned upon this article.

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

27(1) Except as set forth in paragraph (2), if a wine and
28spirits wholesale license has been issued for a particular
29brand of liquor in a wholesale district, the board may not
30engage in the sale of that brand of liquor in that wholesale

1district.

2(2) The board may coordinate the repurchase of remaining
3board inventory of brands as provided under Subarticle D.

4(3) The board's Bureau of Licensing shall provide
5adequate notice to the board's Bureau of Supply Chain that a
6wine and spirits wholesale license application is ready for
7license approval to insure that appropriate inventory
8reduction can be effectuated without causing a shortage of
9the brand at issue.

10Section 325-A. Wine and spirits wholesale licensee statement of
11conditions.

12(a) Statement of conditions.--The department, in
13consultation with the board, shall develop a statement of
14conditions to be executed by each wine and spirits wholesale
15licensee governing the operation of the wine and spirits
16wholesale licensee.

17(b) Conditions, restrictions and prohibited acts.--In
18addition to any other conditions the department, in consultation
19with the board, deems necessary or appropriate for a specific
20wine and spirits wholesale licensee or which may be mandated for
21all licensees through regulations of the department or the
22board, the statement of conditions under subsection (a) shall
23include the following:

24(1) A wine and spirits wholesale licensee may not sell
25liquor to a person, except a person specified in section
26321.1-A(a)(1).

27(2) A wine and spirits wholesale licensee must serve all
28licensees eligible to purchase and resell liquor in the
29wholesale district under this act and must make liquor
30available for sale to those licensees under the same pricing

1structure.

2(3) Except for a wine and spirits wholesale licensee
3that holds an importing distributor license under section
4431, a wine and spirits wholesale licensee may not sell malt
5or brewed beverages.

6(4) A wine and spirits wholesale licensee may not engage
7in conduct that would constitute any of the following:

8(i) Variable pricing.

9(ii) Unfair or deceptive trade practices proscribed
10under Federal or State law or regulation.

11(iii) Intentional exclusion of competing brands of
12liquor from the marketplace.

13(5) A wine and spirits wholesale licensee may only sell
14and distribute liquor products in the wholesale district
15approved by the board and that are subject to a contractual
16relationship between the wine and spirits wholesale licensee
17and one or more licensed manufacturers or importers of wine
18and spirits.

19(6) (i) A wine and spirits wholesale licensee shall do
20all of the following:

21(A) Acquire liquor exclusively from:

22(I) a licensed manufacturer or importer of
23wine and spirits with whom the wine and spirits
24wholesale licensee has the contractual authority
25to sell at wholesale as provided under this act;
26or

27(II) an entity affiliated with the wine and
28spirits wholesale licensee.

29(B) Keep a detailed log of wholesale liquor
30transactions, including acquisitions of liquor from

1an entity listed under clause (A) and sales to
2licensees under this act.

3(ii) If liquor is acquired from an entity affiliated
4with the wine and spirits wholesale licensee, the entity
5shall, for taxation purposes, be considered a licensed
6manufacturer or importer of wine and spirits.

7(7) A wine and spirits wholesale licensee's licensed
8premises and all facilities involved in its wholesale
9operations, including any changes to the facilities during
10the term of the license, shall be subject to the inspection,
11investigation and approval of the department or the board or
12the enforcement bureau.

13(8) A wine and spirits wholesale licensee shall maintain
14adequate security to protect the licensee's inventory from
15unauthorized sale, removal or theft and prevent its
16unauthorized distribution.

17(9) (i) Except as provided under paragraph (1), a wine
18and spirits wholesale licensee may not engage in a
19separate business activity on a premises on which
20wholesale liquor operations are conducted without prior
21approval of the board.

22(ii) A wine and spirits wholesale licensee which
23holds an importing distributor license may engage in
24sales of malt or brewed beverages under this act.

25(10) A wine and spirits wholesale licensee shall collect
26and remit to the Department of Revenue all applicable taxes.

27(11) A wine and spirits wholesale licensee shall be
28considered a State liquor store for the purpose of collecting
29and remitting taxes under the act of March 4, 1971 (P.L.6,
30No.2), known as the Tax Reform Code of 1971, from persons

1licensed to sell liquor for consumption on the premises under
2Article IV.

3(12) A wine and spirits wholesale licensee shall notify
4the board within 15 days of a change in a person holding a
5controlling interest in the licensee.

6(13) A wine and spirits wholesale licensee shall notify
7the board within 15 days of becoming aware of an arrest,
8criminal indictment or conviction by the licensee, an
9affiliate of the licensee or an executive officer, director
10or general or limited partner of the licensee or person
11holding a controlling interest in the licensee.

12(14) A wine and spirits wholesale licensee shall notify
13the board within 15 days of becoming aware of a violation of
14this act by the licensee, an affiliate of the licensee or an
15executive officer, director or general or limited partner of
16the licensee, person holding a controlling interest in the
17licensee or employee of the licensee.

18(15) (i) A wine and spirits wholesale licensee may not
19operate in a manner which constitutes a violation of
20Federal or State law, including antitrust or other unfair
21trade practices, or creates a monopolistic liquor
22distribution system in this Commonwealth.

23(ii) If a wine and spirits wholesale licensee seeks
24to be approved by the department or the board to
25distribute additional brands of liquor which would give
26the licensee a control of more than 50% of the liquor
27distributed in the wholesale market of this Commonwealth,
28in terms of gross dollar sales, the board shall convene a
29hearing to determine whether approval of the proposed
30application for additional brands would constitute a

1violation of antitrust or other unfair trade practice
2laws, or would create a monopolistic liquor distribution
3system in this Commonwealth.

4(iii) The board is authorized to promulgate
5regulations providing for the procedure for hearings
6under subparagraph (ii).

7(16) A wine and spirits wholesale licensee shall make
8the licensed premises, all of the facilities involved in the
9wholesale operation within the wholesale district approved
10and all of the business and financial books and records of
11the wholesale operation available at any time for inspection
12and audit by the department, the board or the enforcement
13bureau. The board shall promulgate regulations regarding the
14records that a licensee must maintain on its premises.

15(17) A wine and spirits wholesale licensee shall
16cooperate fully in an inquiry or investigation by the
17department or the board or the enforcement bureau and provide
18information requested by the department, the board or the
19enforcement bureau.

20(18) A wine and spirits wholesale licensee which is a
21corporation, a limited liability company, limited
22partnership, partnership, association or other legal entity
23must be organized under the laws of this Commonwealth.

24(19) A wine and spirits wholesale licensee which is a
25natural person must be a citizen of the United States and a
26resident of this Commonwealth.

27(c) Sanctions.--A wine and spirits wholesale licensee that
28fails to abide by a condition contained in the licensee's
29statement of conditions or commits a violation of this act or
30Federal or State law:

1(1) shall be subject to citation by the enforcement
2bureau; and

3(2) may be subject to:

4(i) a fine, suspension or license revocation;

5(ii) nonrenewal of the license or revocation of
6temporary operating authority; or

7(iii) other penalties authorized under sections 471
8and 494.

9Section 326-A. Loss of rights to wholesale brands of liquor.

10The department shall establish procedures and standards
11governing the relationship between wine and spirits wholesale
12licensees and manufacturers and the ability and terms upon which
13that relationship may be terminated. The procedures and
14standards shall incorporate the following principles:

15(1) A manufacturer having a contract, including all
16written or oral agreements, understandings or other
17arrangements with a wine and spirits wholesale licensee for
18the distribution in a wholesale district of a brand of liquor
19may terminate the distribution rights and transfer the rights
20to another wine and spirits wholesale licensee upon the
21voluntary agreement of both licensees.

22(2) If a voluntary termination and transfer occurs, the
23manufacturer shall provide written notice to the board
24indicating that affected wine and spirits wholesale licensees
25have both agreed to the termination and transfer. A copy of
26the notification to the board shall be provided to both
27licensees.

28(3) If a wine and spirits wholesale licensee does not
29agree to the termination or transfer of its distribution
30rights, the manufacturer may only terminate or transfer the

1rights upon payment to the terminated licensee of reasonable
2compensation, as determined by the board, to reflect the
3value of the wine and spirits wholesale licensee's business
4related to the terminated wholesale district approved and the
5brand of liquor.

6(4) A voluntary or involuntary termination and transfer
7of the right to distribute in the wholesale district approved
8and the brand of liquor shall comply with this section.

9Section 327-A. Transfer of brands of liquor.

10(a) Prohibition.--No brand of liquor offered for sale in
11this Commonwealth may be transferred to a different wine and
12spirits wholesale licensee without prior approval from the
13board.

14(b) Transfer fee.--An application to the board to transfer
15the right to distribute a brand of liquor shall be subject to an
16application fee equal to 1% of the initial license fee
17attributable to the brand of liquor or $1,000, whichever is
18greater.

19SUBARTICLE D

20CLOSURE OF STATE LIQUOR STORES

21AND ASSISTANCE FOR DISPLACED EMPLOYEES

22Section 331-A. Closure of State liquor stores.

23(a) Process for closure.--

24(1) The board, in consultation with the department and
25its consultant, shall develop a protocol for the closure of
26the State liquor stores which is designed to ensure
27uninterrupted service to the public and licensees during the
28transition to private retail and wholesale distribution of
29liquor.

30(2) The protocol required by paragraph (1) shall provide

1that:

2(i) At such time as there are twice as many retail
3licensees in a county as, on the effective date of this
4section, State liquor stores in that county, the board
5shall, within six months, review the access of residents
6to wine and liquor in the county. After conducting its
7review, the board may determine to close one or more of
8the State liquor stores in that county. The determination
9of the board shall be submitted in writing to the
10department and explain the rationale for specifically
11closing or continuing to operate and maintain any
12particular State liquor store in the county. The written
13determination shall be published as a notice in the
14Pennsylvania Bulletin and be posted on the board's
15publicly accessible Internet website.

16(ii) At such time as there are four times as many
17retail licensees in a county as, on the effective date of
18this section, State liquor stores in that county, the
19board shall close all of the remaining State liquor
20stores in that county within one year. The date for
21closure of all of the remaining State liquor stores in a
22county shall be published by the board as a notice in the
23Pennsylvania Bulletin.

24(iii) At such times as there are 50 remaining State
25liquor stores, regardless of location in this
26Commonwealth, the board shall close such State liquor
27stores within one year.

28(b) Disposition of liquor.--The board shall arrange for the
29disposition of the liquor remaining in inventory at a designated
30store. In order to effectuate this subsection, the board may, in

1consultation with the department, do any of the following:

2(1) Coordinate with the vendor of record for the
3repurchase products by the vendor of record.

4(2) Sell products to newly licensed wine and spirits
5retail licensees.

6(3) Transport products for sale at another operating
7State liquor store.

8(c) Disposition of nonliquor State-owned property.--The
9department, in consultation with the board, shall establish a
10procedure for the sale of the nonliquor inventory, property and
11fixtures of all State liquor stores consistent with 62 Pa.C.S.
12Ch. 15 (relating to supply management). Wine and spirits retail
13licensees shall have the opportunity to bid on the items to be
14sold or otherwise participate in the sale. All proceeds from the
15sales shall be deposited into The State Stores Fund.

16(d) Pennsylvania Liquor Store leases.--The board shall
17provide immediate notice to the lessor upon receipt of the
18department's notice to close a designated Pennsylvania Liquor
19Store.

20(e) Hiring restrictions.--

21(1) Notwithstanding any other provision of this act and
22except as provided under subsection (f), the board may not
23hire additional salaried or wage employees for the purpose of
24staffing its retail operations, including its bureau of
25marketing and retail operations, unless explicitly authorized
26by the department.

27(2) Paragraph (1) shall not prohibit the board from
28hiring personnel, with approval from the department, to
29adequately staff its Bureau of Supply Chain for the purpose
30of transitioning its retail and wholesale operations to

1licensees of this article.

2(f) Limited authority to hire temporary workers.--

3(1) Notwithstanding any other provision of law and
4except as provided under paragraph (3), the board, with the
5approval of the department, may temporarily staff a State
6liquor store which has not been designated for closure under
7this section, if staffing and service levels would be
8otherwise compromised. The board may utilize the services of
9an employment agency to carry out this paragraph.

10(2) The act of August 5, 1941 (P.L.752, No.286), known
11as the Civil Service Act, shall not apply to temporary
12employees hired under paragraph (1).

13(3) The board may not employ temporary workers at a
14State liquor store if the board receives notice of closure of
15the State liquor store from the department.

16(4) A temporary worker engaged by the board under this
17subsection shall not be considered a displaced employee.

18Section 331.1-A. Licensee service centers.

19(a) Adequacy.--The board shall work collaboratively with the
20department and the retail divestiture strategy committee to
21ensure that an adequate number of stores designated for sales to
22licensees or licensee service center locations are maintained
23during the retail and wholesale divestiture process so that
24licensees are able to timely acquire products sold by the board.

25(b) (Reserved).

26Section 332-A. Transition assistance committee.

27(a) Formation.--

28(1) On the effective date of this section, the
29department shall designate individuals to serve on a
30committee for the purpose of managing the staffing transition

1and displacement of employees during the divestiture process.

2(2) The committee, which shall be chaired by a
3representative from the department, shall involve the
4participation of the Office of Administration, the Civil
5Service Commission, the Department of Labor and Industry and
6the board's bureau of human resources, to ensure a
7coordinated approach to allocating personnel and assisting
8displaced employees during the transition to find an
9appropriate position.

10(3) The committee may engage the services of a third-
11party administrator to assist in administering the duties
12under paragraph (2). The procedural constraints of 62 Pa.C.S.
13Pt. I (relating to Commonwealth Procurement Code) shall not
14apply to this paragraph.

15(b) Counseling and placement.--The committee shall
16coordinate with the Office of Administration to provide
17counseling and other general assistance to employees of the
18board who are displaced to transition the employees to other
19employment in either the public or private sector.

20(c) Transition funding.--The costs for the programs provided
21under this subarticle shall be paid for out of the proceeds from
22the divestiture of the board's wholesale and retail operations.

23Section 333-A. Preference in public employment hiring.

24(a) Civil service examinations.--

25(1) A displaced employee who successfully passes a civil
26service appointment examination shall be marked or graded an
27additional three points above the mark or grade credited for
28the examination if all of the following apply:

29(i) The examination is for a paid position
30administered under the act of August 5, 1941 (P.L.752,

1No.286), known as the Civil Service Act, and in the
2classified service existing under the commission's
3jurisdiction.

4(ii) The employee establishes the qualifications
5required by law for appointment to the position.

6(2) The total mark or grade, including the mark-up under
7paragraph (1), obtained by the displaced employee shall
8represent the final mark or grade of the employee and shall
9determine the employee's standing on any eligibility list
10certified or furnished to the appointing power.

11(b) Certification.--The commission shall require the board
12to certify a list of displaced employees under subsection (a).
13Placement on the list by the board shall establish eligibility
14for the preference granted under subsection (a).

15(c) Noncivil service positions.--If a paid State position
16does not require a civil service examination, a displaced
17employee, possessing the requisite qualifications and who is
18eligible for appointment to a paid State position in offices
19under the Governor's jurisdiction within the executive branch
20shall be given a preference in the appointment by the appointing
21authority.

22(d) (Reserved).

23(e) Eligibility.--

24(1) A displaced employee's eligibility for the mark-up
25provided under subsection (a) and for the preference for
26noncivil service positions provided under subsection (c)
27shall cease upon the occurrence of one of the following:

28(i) The displaced employee's appointment or hiring
29into a position in the classified service existing under
30the commission's jurisdiction or into a paid State

1position where no civil service examination is required.

2(ii) Four years from the effective date of this
3section.

4(2) In order to be eligible for the mark-up provided
5under subsection (a) and for the preference for noncivil
6service positions provided under subsection (c), a displaced
7worker must be terminated as a sole and direct result of the
8decision to cease wholesale and retail operations under this
9article and must work until the final day set by the board
10for that employee's job function.

11Section 334-A. Career training and post-secondary education
12grant eligibility.

13(a) Eligibility.--A displaced employee shall be eligible for
14a two-year grant for attending a program of instruction at an
15institution of higher education, including career training and
16adult education courses of study, within one year of the date of
17displacement from State service in the following amount:

18(1) one thousand dollars per year for attendance on a
19full-time basis; or

20(2) five hundred dollars per year for attendance on a
21part-time basis.

22(b) Certification.--The board shall certify the list of
23displaced employees to the agency.

24(c) Grant award.--The agency shall make a determination of
25grant eligibility and shall pay the grant directly to the
26institution of higher education attended by the displaced
27employee in a manner consistent with the agency's regulations.

28Section 335-A. Reemployment tax credit.

29(a) Eligibility.--

30(1) A displaced employee shall be eligible for a two-

1year reemployment tax credit voucher in the amount of $1,000
2per taxable year.

3(2) The voucher under paragraph (1) shall be made
4available to each displaced employee upon termination of
5employment.

6(3) Each voucher under paragraph (1) shall be certified
7by the board before the voucher is provided to the displaced
8employee.

9(4) The Department of Revenue shall be informed of each
10displaced employee to whom a voucher under paragraph (1) has
11been provided.

12(b) Transfer of voucher.--An employer in this Commonwealth
13who employs a displaced employee on a full-time basis may, upon
14transfer of the voucher from the employee to the employer, use
15the voucher as a credit against the State tax liability of the
16employer, if the employer can demonstrate the following:

17(1) The employee for whom the tax credit is being sought
18was displaced from the board within 12 months of being
19employed by the employer.

20(2) The former board employee has been employed by the
21employer seeking the tax credit on a full-time basis for a
22period not less than one year.

23(c) Voucher submittal.--The employer shall submit the tax
24credit voucher to the Department of Revenue with the information
25required under subsection (b)(1) and (2) to claim a tax credit
26against the employer's liability for a tax identified under
27subsection (d)(2).

28(d) Amount of credit.--

29(1) An employer may claim a reemployment tax credit for
30each job filled by a displaced employee of $1,000 per taxable

1year for a maximum of two taxable years.

2(2) An employer may apply the reemployment tax credit to
3100% of the employer's:

4(i) State corporate net income tax, capital stock
5and franchise tax or the personal tax of a shareholder of
6the company if the company is a Pennsylvania S
7corporation.

8(ii) Insurance premiums tax, gross receipts tax,
9bank and trust company shares tax, mutual thrift
10institutions tax or title insurance companies shares tax.

11(iii) Any combination of the taxes under
12subparagraphs (i) and (ii).

13(3) A displaced employee whose subsequent employment is
14terminated with an employer and who has utilized the
15reemployment tax credit voucher to claim a one-year $1,000
16tax credit may transfer the voucher to a new employer who may
17use the remaining $1,000 tax credit as a claim against the
18employer's tax liability for taxes identified under paragraph
19(2).

20(4) The term of the reemployment tax credit voucher may
21not exceed two years from the date the voucher is provided to
22the qualified displaced employee.

23Section 336-A. Protection of existing benefits.

24(a) Contract benefits.--Nothing under this section shall be
25deemed to affect:

26(1) Pension benefits accrued prior to the date of
27separation occurring as a sole and direct result of the
28divestiture of the board's wholesale and retail operations
29under this article.

30(2) Payment of an accrued benefit derived from the terms

1of a preexisting collective bargaining agreement payable upon
2separation from employment.

3(b) Collective bargaining.--As a result of the preferential
4hiring benefits, the tax credit for subsequent employers and the
5protection of benefits arising from an employee's pension or
6from a preexisting collective bargaining agreement under this
7section, the board shall be deemed to have satisfied all
8obligations to bargain over the effects of the decision to cease
9wholesale and retail operations under this article which may
10arise under:

11(1) the act of June 1, 1937 (P.L.1168, No.294), known as
12the Pennsylvania Labor Relations Act; or

13(2) the act of July 23, 1970 (P.L.563, No.195), known as
14the Public Employe Relations Act.

15(c) Local regulation.--This article supersedes a local
16regulation, ordinance or resolution of a political subdivision
17regarding notice to displaced workers.

18SUBARTICLE E

19MISCELLANEOUS PROVISIONS

20Section 341-A. License renewals.

21(a) Renewal.--

22(1) Enhanced licenses issued under this article shall be
23subject to renewal every two years, with validation.

24(2) The application for renewal shall be submitted on a
25form provided by the board at least 30 days prior to the
26expiration of the enhanced license and shall include, at a
27minimum, an update of the information contained in the
28initial and prior renewal applications and the payment of any
29renewal fee required under this article.

30(3) An enhanced license for which a completed renewal

1application and fee has been received by the board shall
2continue to be valid until the board sends written
3notification to the licensee that the board has denied the
4renewal of the enhanced license.

5(b) Fee.--

6(1) A renewal fee of $1,000 shall be due upon
7application for the renewal or validation of an enhanced
8license.

9(2) A renewal fee of $5,000 shall be due upon
10application for the renewal or validation of a wine and
11spirits wholesale license.

12(3) The board may adjust the renewal fee to ensure that
13the fee adequately recovers the costs associated with
14investigating the renewal application.

15(c) Renewal hearings.--The director of the board's Bureau of
16Licensing may object to the renewal of enhanced licenses issued
17under this article pursuant to the same authority granted under
18section 470. Hearings and appeals arising from the objections
19shall be conducted in accordance with section 464.

20(d) Revocation of operating authority.--

21(1) The board may revoke the operating authority of an
22enhanced license issued under this article if it finds that
23the enhanced licensee or any of its affiliates, executive
24officers, directors or general or limited partners or persons
25holding a controlling interest in the licensee:

26(i) is in violation of any provision of this act;

27(ii) has furnished the board with false or
28misleading information; or

29(iii) is no longer reputable or suitable for
30licensure.

1(2) If an enhanced license is revoked or not renewed,
2the enhanced licensee's authorization to conduct business as
3an enhanced licensee shall immediately cease until the board
4notifies the enhanced licensee that the operating authority
5has been reinstated.

6(e) Affirmative duty.--Nothing under this section shall
7relieve an enhanced licensee of the affirmative duty to notify
8the board of changes relating to the status of its enhanced
9license or to other information contained in the application
10materials filed with the board.

11Section 342-A. Revocation, suspension and fines.

12(a) Authority of enforcement bureau.--The enforcement bureau
13shall have the authority to issue a citation against an enhanced
14licensee in the same manner as under section 471. The bureau may
15issue a citation to the licensee based on the following conduct:

16(1) The licensee violated any of the following:

17(i) A provision of this act.

18(ii) The regulations of the board.

19(iii) The enhanced licensee's signed statement of
20conditions.

21(iv) The enhanced licensee violated any other law of
22this Commonwealth.

23(2) The enhanced licensee knowingly presented to the
24board false, incomplete or misleading information.

25(3) The enhanced licensee pleaded guilty, entered a plea
26of nolo contendere or has been found guilty of a felony by a
27judge or jury in a Federal or State court.

28(4) The enhanced licensee failed to operate the business
29or to provide a reasonable level of consumer service.

30(5) The enhanced licensee failed to remit taxes as

1required.

2(b) Administrative Law Judge.--Enforcement matters shall be
3heard by an administrative judge in the same manner as under
4section 471. The administrative law judge may issue a fine and
5either suspend or revoke the enhanced license. Appeals may be
6taken in the same manner as under section 471.

7(c) Sales prohibited.--No person may sell liquor at a
8premises if any of the following apply:

9(1) The enhanced license applicable to that premises has
10been suspended or revoked or has expired.

11(2) The operating authority for the enhanced license has
12been revoked.

13(d) Public sale.--If an enhanced license is revoked,
14forfeited or surrendered under this article, the board shall
15resell the enhanced license, consistent with this article.

16Section 343-A. Sale, assignment or transfer of license.

17(a) Prohibition.--No person may sell, assign or transfer
18their interest in an enhanced license granted under this article
19to another person until the board has received, investigated and
20approved a transfer application. If the license is an enhanced
21license, the enhanced licensee must have been in continuous
22operation for at least one year prior to the date of the
23application to transfer the enhanced license.

24(b) Compliance.--Any person to whom an enhanced license is
25transferred must comply with this article prior to the transfer
26of the enhanced license.

27(c) Transfer fee.--

28(1) The transfer of an enhanced license shall be subject
29to a transfer fee equal to 1% of the enhanced license fee
30paid for the enhanced license and shall be paid as a

1condition of the transfer of the enhanced license.

2(2) The transfer fee applicable to the transfer of
3brands of liquor under section 327-A(b) shall not apply to
4the transfer of a wine and spirits wholesale license.

5(3) An enhanced retail license may not be transferred to
6another location outside the county in which it was initially
7issued.

8(d) Change of control.--For the purposes of this section, a
9change of control of a wine and spirits wholesale or enhanced
10licensee shall be deemed to be a sale, assignment or transfer of
11a wine and spirits wholesale or enhanced license. A wine and
12spirits wholesale or enhanced licensee must notify the board
13immediately upon becoming aware of a proposed or contemplated
14change of control.

15Section 344-A. The State Stores Fund.

16All fees, assessments, bid amounts or other charges paid by
17license applicants or licensees shall be paid or transferred
18into a restricted account in The State Stores Fund. Any fines
19collected by the administrative law judge from the licensees
20shall be remitted to the enforcement bureau for continued
21enforcement efforts.

22Section 345-A. Return of fee or bid.

23(a) Wine and spirits wholesale license fee.--The entire wine
24and spirits wholesale license fee paid by a wine and spirits
25wholesale licensee under section 324-A(d)(1) shall be returned
26if this article is amended or otherwise altered by an act of the
27General Assembly within five years of the effective date of this
28section to change provisions relating to the loss of rights to
29wholesale brands of liquors under section 326-A.

30(b) Enhanced licensee fee.--The entire enhanced license fee

1paid by an enhanced licensee shall be returned if this article
2is amended or otherwise altered by an act of the General
3Assembly within five years of the effective date of this
4section.

5Section 10. Section 401 of the act, amended December 22,
62011 (P.L.530, No.113), is amended to read:

7Section 401. Authority to Issue Liquor Licenses to Hotels,
8Restaurants and Clubs.--(a) Subject to the provisions of this 
9act and regulations promulgated under this act, the board shall 
10have authority to issue a retail liquor license for any premises 
11kept or operated by a hotel, restaurant or club and specified in 
12the license entitling the hotel, restaurant or club to purchase 
13liquor from a Pennsylvania Liquor Store or a wine and spirits 
14wholesale licensee and to keep on the premises such liquor and, 
15subject to the provisions of this act and the regulations made 
16thereunder, to sell the same and also malt or brewed beverages 
17to guests, patrons or members for consumption on the hotel, 
18restaurant or club premises. Such licensees, other than clubs, 
19shall be permitted to sell malt or brewed beverages for 
20consumption off the premises where sold in quantities of not 
21more than one hundred ninety-two fluid ounces in a single sale 
22to one person as provided for in section 407; except that the 
23licensees acquiring a thirty-pack permit issued by the board may 
24sell to a person a single package prepared for sale or 
25distribution of not more than thirty original containers and 
26totaling not less than three hundred sixty fluid ounces of malt 
27or brewed beverages. Such licenses shall be known as hotel 
28liquor licenses, restaurant liquor licenses and club liquor 
29licenses, respectively. No person who holds any public office 
30that involves the duty to enforce any of the penal laws of the
 

1United States, this Commonwealth or of any political subdivision 
2of this Commonwealth may have any interest in a hotel or 
3restaurant liquor license. This prohibition applies to anyone 
4with arrest authority, including, but not limited to, United 
5States attorneys, State attorneys general, district attorneys, 
6sheriffs and police officers. This prohibition shall also apply 
7to magisterial district judges, judges or any other individuals 
8who can impose a criminal sentence. This prohibition does not 
9apply to members of the General Assembly, township supervisors, 
10city councilpersons, mayors without arrest authority and any 
11other public official who does not have the ability to arrest or 
12the ability to impose a criminal sentence. This section does not 
13apply if the proposed premises are located outside the 
14jurisdiction of the individual in question.

15(b) The board may issue to any club which caters to groups
16of non-members, either privately or for functions, a catering
17license, and the board shall, by its rules and regulations,
18define what constitutes catering under this subsection except
19that any club which is issued a catering license shall not be
20prohibited from catering on Sundays during the hours which the
21club may lawfully serve liquor, malt or brewed beverages.

22Section 11. Section 404 of the act, amended January 6, 2006
23(P.L.1, No.1), is amended to read:

24Section 404. Issuance, Transfer or Extension of Hotel,
25Restaurant and Club Liquor Licenses.--Upon receipt of the
26application and the proper fees, and upon being satisfied of the
27truth of the statements in the application that the applicant is
28the only person in any manner pecuniarily interested in the
29business so asked to be licensed and that no other person will
30be in any manner pecuniarily interested therein during the

1continuance of the license, except as hereinafter permitted, and
2that the applicant is a person of good repute, that the premises
3applied for meet all the requirements of this act and the
4regulations of the board, that the applicant seeks a license for
5a hotel, restaurant or club, as defined in this act, and that
6the issuance of such license is not prohibited by any of the
7provisions of this act, the board shall, in the case of a hotel
8or restaurant, grant and issue to the applicant a liquor
9license, and in the case of a club may, in its discretion, issue
10or refuse a license: Provided, however, That in the case of any
11new license or the transfer of any license to a new location or
12the extension of an existing license to cover an additional area
13the board may, in its discretion, grant or refuse such new
14license, transfer or extension if such place proposed to be
15licensed is within three hundred feet of any church, hospital,
16charitable institution, school, or public playground, or if such
17new license, transfer or extension is applied for a place which
18is within two hundred feet of any other premises which is
19licensed by the board: And provided further, That the board's
20authority to refuse to grant a license because of its proximity
21to a church, hospital, charitable institution, public playground
22or other licensed premises shall not be applicable to license
23applications submitted for public venues or performing arts
24facilities: And provided further, That the board shall refuse
25any application for a new license, the transfer of any license
26to a new location or the extension of an existing license to
27cover an additional area if, in the board's opinion, such new
28license, transfer or extension would be detrimental to the
29welfare, health, peace and morals of the inhabitants of the
30neighborhood within a radius of five hundred feet of the place

1proposed to be licensed: And provided further, That the board
2shall have the discretion to refuse a license to any person or
3to any corporation, partnership or association if such person,
4or any officer or director of such corporation, or any member or
5partner of such partnership or association shall have been
6convicted or found guilty of a felony within a period of five
7years immediately preceding the date of application for the said
8license. [The board shall refuse any application for a new
9license, the transfer of any license to a new location or the
10extension of any license to cover an additional area where the
11sale of liquid fuels or oil is conducted.] The board may enter
12into an agreement with the applicant concerning additional
13restrictions on the license in question. If the board and the
14applicant enter into such an agreement, such agreement shall be
15binding on the applicant. Failure by the applicant to adhere to
16the agreement will be sufficient cause to form the basis for a
17citation under section 471 and for the nonrenewal of the license
18under section 470. If the board enters into an agreement with an
19applicant concerning additional restrictions, those restrictions
20shall be binding on subsequent holders of the license until the
21license is transferred to a new location or until the board
22enters into a subsequent agreement removing those restrictions.
23If the application in question involves a location previously
24licensed by the board, then any restrictions imposed by the
25board on the previous license at that location shall be binding
26on the applicant unless the board enters into a new agreement
27rescinding those restrictions. The board may, in its discretion,
28refuse an application for an economic development license under
29section 461(b.1) or an application for an intermunicipal
30transfer of a license if the board receives a protest from the

1governing body of the receiving municipality. The receiving
2municipality of an intermunicipal transfer or an economic
3development license under section 461(b.1) may file a protest
4against the transfer of a license into its municipality, and the
5receiving municipality shall have standing in a hearing to
6present testimony in support of or against the issuance or
7transfer of a license. Upon any opening in any quota, an
8application for a new license shall only be filed with the board
9for a period of six months following said opening.

10Section 12. Section 405(c) of the act, amended April 29,
111994 (P.L.212, No.30), is amended to read:

12Section 405. License Fees.--* * *

13(c) All license fees authorized under this section shall be
14collected by the board for the use of the municipalities in
15which such fees were collected[.] if the municipalities receive 
16services from a municipal police department. Fees collected in 
17municipalities that do not receive service from a municipal 
18police department must be transferred to the enforcement bureau 
19for continued enforcement efforts.

20* * *

21Section 13. Section 407 of the act, amended November 29, 
222006 (P.L.1421, No.155) and June 28, 2011 (P.L.55, No.11), is 
23amended to read:

24Section 407. Sale of Malt or Brewed Beverages by Liquor
25Licensees.--(a) Every liquor license issued to a hotel, 
26restaurant, club, or a railroad, pullman or steamship company 
27under this subdivision (A) for the sale of liquor shall 
28authorize the licensee to sell malt or brewed beverages at the 
29same places but subject to the same restrictions and penalties 
30as apply to sales of liquor, except that licensees other than
 

1clubs may sell malt or brewed beverages for consumption off the 
2premises where sold in quantities of not more than one hundred 
3ninety-two fluid ounces in a single sale to one person, however, 
4the licensees acquiring a thirty-pack permit issued by the board 
5may sell to a person a single package prepared for sale or 
6distribution of not more than thirty original containers and 
7totaling not less than three hundred sixty fluid ounces of malt 
8or brewed beverages. The sales may be made in either open or 
9closed containers, Provided, however, That a municipality may 
10adopt an ordinance restricting open containers in public places. 
11No licensee under this subdivision (A) shall at the same time be 
12the holder of any other class of license, except a retail 
13dispenser's license authorizing the sale of malt or brewed 
14beverages only.

15(b) (1) Notwithstanding any other provision of law or any
16existing permit authorizing the sale of malt or brewed beverages
17for consumption off the premises, a restaurant licensee located
18in a city of the first class who is otherwise permitted to sell
19malt or brewed beverages for consumption off the premises may
20not do so after October 31, 2007, unless it acquires a permit
21from the board.

22(2) The application for a permit to sell malt or brewed 
23beverages for consumption off the premises shall be on forms 
24designated by the board and contain such information as the 
25board may require. The application and renewal fee shall be as 
26prescribed in section 614-A(27) of the act of April 9, 1929 
27(P.L.177, No.175), known as "The Administrative Code of 1929." 
28However, no applicant who currently has a permit shall be 
29required to pay any additional fees under section 614-A(27) of 
30"The Administrative Code of 1929" in order to continue selling
 

1malt or brewed beverages for consumption off the premises at its 
2currently licensed location for the licensing term beginning 
3November 1, 2007, and ending October 31, 2008.

4(3) The application for a permit to sell malt or brewed
5beverages for consumption off the premises must be accompanied
6by a copy of the approval of such request by the hearing board
7authorized by this section.

8(4) A city of the first class shall create a hearing board
9within its Department of Licenses and Inspections to hear
10requests from licensees who are seeking a permit from the
11hearing board authorizing the licensee to sell malt or brewed
12beverages for consumption off the premises. Each hearing board
13shall consist of three persons appointed by the mayor of the
14city of the first class, who are subject to approval by the city
15council of the city of the first class. Each person so appointed
16shall serve at the pleasure of the appointing authority. The
17hearing board may, in its discretion, hold hearings to adduce
18testimony regarding a request. The hearing board must render a
19decision within ninety days of receipt of a request for approval
20of a permit to sell malt or brewed beverages for consumption off
21the premises. The hearing board must approve the request unless
22it finds that doing so would adversely affect the welfare,
23health, peace and morals of the city or its residents. A
24decision by the hearing board to deny a request may be appealed
25to the court of common pleas in the county in which the city is
26located. The failure to render a decision by the hearing board
27within the required time period shall be deemed approval of the
28permit.

29(5) Upon being satisfied that the applicant has fulfilled
30all the requirements of this act and the board's regulations,

1the board shall approve the application. Such permits shall
2expire upon the transfer of the license to a new entity or to a
3new location, or both; otherwise, such permits shall expire at
4the same time as the expiration of the underlying license.

5Section 14. Section 408.12(g) and (h) of the act, added July
61, 1994 (P.L.402, No.61), are amended to read:

7Section 408.12. Wine Auction Permits.--* * *

8(g) Any wine sold under this section shall be purchased from
9a Pennsylvania Liquor Store, an enhanced licensee, a
10Pennsylvania limited winery or any seller authorized to sell
11wine by the bottle or case in this Commonwealth or shall be
12donated by a person who is neither a licensee nor a permittee
13who has legally acquired the wine and legally possesses it in
14this Commonwealth.

15(h) If any wine sold under this section is purchased from a
16seller other than a Pennsylvania Liquor Store, an enhanced 
17licensee or [a] Pennsylvania limited winery, the permittee shall
18provide thirty days' notice to the board of its intent to
19purchase such wine. The notice shall include a description of
20the wine to be purchased, the quantity to be purchased, the name
21of the seller and any other information which the board may
22require. The permittee shall comply with all board regulations
23regarding taxes and fees.

24* * *

25Section 15. Section 410(e) of the act is amended to read:

26Section 410. Liquor Importers' Licenses; Fees; Privileges;
27Restrictions.--* * *

28(e) Importers' licenses shall permit the holders thereof to
29bring or import liquor from other states, foreign countries, or
30insular possessions of the United States, and purchase liquor

1from manufacturers located within this Commonwealth, to be sold
2outside of this Commonwealth or to Pennsylvania Liquor Stores or 
3wine and spirits wholesale licensees within this Commonwealth,
4or when in original containers of ten gallons or greater
5capacity, to licensed manufacturers within this Commonwealth.

6All importations of liquor into Pennsylvania by the licensed
7importer shall be consigned to the board or the principal place
8of business or authorized place of storage maintained by the
9licensee or a wine and spirits wholesale licensee.

10* * *

11Section 16. Section 431(b) of the act, amended December 8,
122004 (P.L.1810, No.239), is amended to read:

13Section 431. Malt and Brewed Beverages Manufacturers',
14Distributors' and Importing Distributors' Licenses.--* * *

15(b) The board shall issue to any reputable person who
16applies therefor, and pays the license fee hereinafter
17prescribed, a distributor's or importing distributor's license
18for the place which such person desires to maintain for the sale
19of malt or brewed beverages, not for consumption on the premises
20where sold, and in quantities of not less than a case or
21original containers containing one hundred twenty-eight ounces
22or more which may be sold separately as prepared for the market
23by the manufacturer at the place of manufacture. The board shall
24have the discretion to refuse a license to any person or to any
25corporation, partnership or association if such person, or any
26officer or director of such corporation, or any member or
27partner of such partnership or association shall have been
28convicted or found guilty of a felony within a period of five
29years immediately preceding the date of application for the said
30license: And provided further, That, in the case of any new

1license or the transfer of any license to a new location, the
2board may, in its discretion, grant or refuse such new license
3or transfer if such place proposed to be licensed is within
4three hundred feet of any church, hospital, charitable
5institution, school or public playground, or if such new license
6or transfer is applied for a place which is within two hundred
7feet of any other premises which is licensed by the board: And
8provided further, That the board shall refuse any application
9for a new license or the transfer of any license to a new
10location if, in the board's opinion, such new license or
11transfer would be detrimental to the welfare, health, peace and
12morals of the inhabitants of the neighborhood within a radius of
13five hundred feet of the place proposed to be licensed. [The
14board shall refuse any application for a new license or the
15transfer of any license to a location where the sale of liquid
16fuels or oil is conducted.] The board may enter into an
17agreement with the applicant concerning additional restrictions
18on the license in question. If the board and the applicant enter
19into such an agreement, such agreement shall be binding on the
20applicant. Failure by the applicant to adhere to the agreement
21will be sufficient cause to form the basis for a citation under
22section 471 and for the nonrenewal of the license under section
23470. If the board enters into an agreement with an applicant
24concerning additional restrictions, those restrictions shall be
25binding on subsequent holders of the license until the license
26is transferred to a new location or until the board enters into
27a subsequent agreement removing those restrictions. If the
28application in question involves a location previously licensed
29by the board, then any restrictions imposed by the board on the
30previous license at that location shall be binding on the

1applicant unless the board enters into a new agreement
2rescinding those restrictions. The board shall require notice to
3be posted on the property or premises upon which the licensee or
4proposed licensee will engage in sales of malt or brewed
5beverages. This notice shall be similar to the notice required
6of hotel, restaurant and club liquor licensees.

7Except as hereinafter provided, such license shall authorize
8the holder thereof to sell or deliver malt or brewed beverages
9in quantities above specified anywhere within the Commonwealth
10of Pennsylvania, which, in the case of distributors, have been
11purchased only from persons licensed under this act as
12manufacturers or importing distributors, and in the case of
13importing distributors, have been purchased from manufacturers
14or persons outside this Commonwealth engaged in the legal sale
15of malt or brewed beverages or from manufacturers or importing
16distributors licensed under this article. If the holder of a 
17distributor license applies for and receives an enhanced 
18distributor license, issued pursuant to this act, that 
19distributor shall be authorized to sell wine on the same 
20premises where malt or brewed beverages are sold, and shall be 
21authorized to sell malt or brewed beverages in quantities 
22enumerated in this act. In the case of an importing distributor,
23the holder of such a license shall be authorized to store and
24repackage malt or brewed beverages owned by a manufacturer at a
25segregated portion of a warehouse or other storage facility
26authorized by section 441(d) and operated by the importing
27distributor within its appointed territory and deliver such
28beverages to another importing distributor who has been granted
29distribution rights by the manufacturer as provided herein. The
30importing distributor shall be permitted to receive a fee from

1the manufacturer for any related storage, repackaging or
2delivery services. In the case of a bailee for hire hired by a
3manufacturer, the holder of such a permit shall be authorized:
4to receive, store and repackage malt or brewed beverages
5produced by that manufacturer for sale by that manufacturer to
6importing distributors to whom that manufacturer has given
7distribution rights pursuant to this subsection or to purchasers
8outside this Commonwealth for delivery outside this
9Commonwealth; or to ship to that manufacturer's storage
10facilities outside this Commonwealth. The bailee for hire shall
11be permitted to receive a fee from the manufacturer for any
12related storage, repackaging or delivery services. The bailee
13for hire shall, as required in Article V of this act, keep
14complete and accurate records of all transactions, inventory,
15receipts and shipments and make all records and the licensed
16areas available for inspection by the board and for the
17Pennsylvania State Police, Bureau of Liquor Control Enforcement,
18during normal business hours.

19Each out of State manufacturer of malt or brewed beverages
20whose products are sold and delivered in this Commonwealth shall
21give distributing rights for such products in designated
22geographical areas to specific importing distributors, and such
23importing distributor shall not sell or deliver malt or brewed
24beverages manufactured by the out of State manufacturer to any
25person issued a license under the provisions of this act whose
26licensed premises are not located within the geographical area
27for which he has been given distributing rights by such
28manufacturer. Should a licensee accept the delivery of such malt
29or brewed beverages in violation of this section, said licensee
30shall be subject to a suspension of his license for at least

1thirty days: Provided, That the importing distributor holding
2such distributing rights for such product shall not sell or
3deliver the same to another importing distributor without first
4having entered into a written agreement with the said secondary
5importing distributor setting forth the terms and conditions
6under which such products are to be resold within the territory
7granted to the primary importing distributor by the
8manufacturer.

9When a Pennsylvania manufacturer of malt or brewed beverages
10licensed under this article names or constitutes a distributor
11or importing distributor as the primary or original supplier of
12his product, he shall also designate the specific geographical
13area for which the said distributor or importing distributor is
14given distributing rights, and such distributor or importing
15distributor shall not sell or deliver the products of such
16manufacturer to any person issued a license under the provisions
17of this act whose licensed premises are not located within the
18geographical area for which distributing rights have been given
19to the distributor and importing distributor by the said
20manufacturer: Provided, That the importing distributor holding
21such distributing rights for such product shall not sell or
22deliver the same to another importing distributor without first
23having entered into a written agreement with the said secondary
24importing distributor setting forth the terms and conditions
25under which such products are to be resold within the territory
26granted to the primary importing distributor by the
27manufacturer. Nothing herein contained shall be construed to
28prevent any manufacturer from authorizing the importing
29distributor holding the distributing rights for a designated
30geographical area from selling the products of such manufacturer

1to another importing distributor also holding distributing
2rights from the same manufacturer for another geographical area,
3providing such authority be contained in writing and a copy
4thereof be given to each of the importing distributors so
5affected.

6* * *

7Section 17. Section 432(d) of the act, amended January 6,
82006 (P.L.1, No.1), is amended to read:

9Section 432. Malt and Brewed Beverages Retail Licenses.--* *
10*

11(d) The board shall, in its discretion, grant or refuse any
12new license, the transfer of any license to a new location or
13the extension of an existing license to cover an additional area
14if such place proposed to be licensed is within three hundred
15feet of any church, hospital, charitable institution, school, or
16public playground, or if such new license, transfer or extension
17is applied for a place which is within two hundred feet of any
18other premises which is licensed by the board. The board shall
19refuse any application for a new license, the transfer of any
20license to a new location or the extension of an existing
21license to cover an additional area if, in the board's opinion,
22such new license, transfer or extension would be detrimental to
23the welfare, health, peace and morals of the inhabitants of the
24neighborhood within a radius of five hundred feet of the place
25to be licensed. The board may enter into an agreement with the
26applicant concerning additional restrictions on the license in
27question. If the board and the applicant enter into such an
28agreement, such agreement shall be binding on the applicant.
29Failure by the applicant to adhere to the agreement will be
30sufficient cause to form the basis for a citation under section

1471 and for the nonrenewal of the license under section 470. If
2the board enters into an agreement with an applicant concerning
3additional restrictions, those restrictions shall be binding on
4subsequent holders of the license until the license is
5transferred to a new location or until the board enters into a
6subsequent agreement removing those restrictions. If the
7application in question involves a location previously licensed
8by the board, then any restrictions imposed by the board on the
9previous license at that location shall be binding on the
10applicant unless the board enters into a new agreement
11rescinding those restrictions[. The board shall refuse any
12application for a new license, the transfer of any license to a
13location where the sale of liquid fuels or oil is conducted or
14the extension of an existing license to cover an additional
15area]: And provided further, That the board shall have the
16discretion to refuse a license to any person or to any
17corporation, partnership or association if such person, or any
18officer or director of such corporation, or any member or
19partner of such partnership or association shall have been
20convicted or found guilty of a felony within a period of five
21years immediately preceding the date of application for the said
22license. The board may, in its discretion, refuse an application
23for an economic development license under section 461(b.1) or an
24application for an intermunicipal transfer or a license if the
25board receives a protest from the governing body of the
26receiving municipality. The receiving municipality of an
27intermunicipal transfer or an economic development license under
28section 461(b.1) may file a protest against the approval for
29issuance of a license for economic development or an
30intermunicipal transfer of a license into its municipality, and

1such municipality shall have standing in a hearing to present
2testimony in support of or against the issuance or transfer of a
3license. Upon any opening in any quota, an application for a new
4license shall only be filed with the board for a period of six
5months following said opening.

6* * *

7Section 18. Sections 436(e) and 437(e) of the act are
8amended to read:

9Section 436. Application for Distributors', Importing
10Distributors' and Retail Dispensers' Licenses.--* * *

11(e) That the applicant is not, or in case of a partnership
12or association, that the members or partners are not, and in the
13case of a corporation, that the officers and directors are not,
14in any manner pecuniarily interested, either directly or
15indirectly, in the profits of any other class of business
16regulated under this article, except as hereinafter permitted.
17The requirements of this section shall not prohibit a 
18distributor from holding an enhanced distributor license, or an 
19importing distributor from holding a wine and spirits wholesale 
20license, under the conditions provided under Article III-A.

21* * *

22Section 437. Prohibitions Against the Grant of Licenses.--*
23* *

24(e) No distributor's or importing distributor's license
25shall be issued for any premises in any part of which there is
26operated any retail license for the sale of liquor or malt or
27brewed beverages. The requirements of this section shall not 
28prohibit a distributor from holding an enhanced distributor 
29license or an importing distributor from holding a wine and 
30spirits wholesale license, under the conditions provided under
 

1Article III-A.

2* * *

3Section 19. Section 438 of the act, amended June 25, 2010
4(P.L.217, No.35), is amended to read:

5Section 438. Number and Kinds of Licenses Allowed Same
6Licensee.--(a) Any retail dispenser may be granted licenses to
7maintain, operate or conduct any number of places for the sale
8of malt or brewed beverages, but a separate license must be
9secured for each place where malt or brewed beverages are sold.

10(b) No person shall possess or be issued [more than one
11distributor's or importing distributor's license.] more than 
12sixty distributor licenses, nor shall any person possess or be 
13issued:

14(1) more than ten percent (10%) of the distributor licenses
15in any one county which has ten or more distributor licenses; or

16(2) more than one distributor license in any one county
17which has less than ten distributor licenses.

18(b.1) No person shall possess or be issued more than one
19importing distributor's license.

20(c) No person shall possess more than one class of license, 
21except that a holder of a retail dispenser's license may also be 
22a holder of a retail liquor license or an enhanced retail 
23license consistent with the restrictions contained in Article 
24III-A: Provided, however, That nothing contained in this section 
25shall be construed to prohibit a member of the governing board 
26of a public authority created under subdivision (n) of Article 
27XXIII of the act of August 9, 1955 (P.L.323, No.130), known as 
28"The County Code," from having an interest in a distributor or 
29importing distributor license notwithstanding the fact that the 
30public authority has an interest in one or more retail licenses
 

1or acts as a landlord for one or more retail licenses: And, 
2provided further, That, notwithstanding any other provision of 
3this section, an entity may acquire both a manufacturer's 
4license or a limited winery license and a hotel, restaurant or 
5retail dispenser license for use at the same location and more 
6than one location may be so licensed. The licenses and a 
7person's interest in the licenses or in the entity holding the 
8licenses shall not be subject to this section.

9Section 20. Section 441 of the act, amended or added May 31,
101996 (P.L.312, No.49), December 20, 1996 (P.L.1513, No.196),
11June 18, 1998 (P.L.664, No.86), December 9, 2002 (P.L.1653,
12No.212), June 28, 2011 (P.L.55, No.11) and December 22, 2011
13(P.L.530, No.113), is amended to read:

14Section 441. Distributors' and Importing Distributors'
15Restrictions on Sales, Storage, Etc.--(a) No distributor or
16importing distributor shall purchase, receive or resell any malt
17or brewed beverages except:

18(1) in the original containers as prepared for the market by
19the manufacturer at the place of manufacture;

20(2) in the case of identical containers repackaged in the
21manner described by subsection (f); or

22(3) as provided in section 431(b).

23(b) No distributor or importing distributor, except for a 
24distributor that also holds an enhanced distributor license,
25shall sell any malt or brewed beverages in quantities of less
26than a case or original containers containing one hundred
27twenty-eight ounces or more which may be sold separately:
28Provided, That no malt or brewed beverages sold or delivered
29shall be consumed upon the premises of the distributor or
30importing distributor, or in any place provided for such purpose

1by such distributor or importing distributor. Notwithstanding
2any other provision of this section or act, malt or brewed
3beverages which are part of a tasting conducted pursuant to the
4board's regulations may be consumed on licensed premises.

5(c) No distributor or importing distributor shall maintain
6or operate any place where sales are made other than that for
7which the license is granted.

8(d) (1) No distributor shall maintain any place for the
9storage of malt or brewed beverages except in the same
10municipality in which the licensed premises is located and
11unless the same has been approved by the board. In the event
12there is no place of cold storage in the same municipality, the
13board may approve a place of cold storage in the nearest
14municipality.

15(2) No importing distributor shall maintain any place for
16the storage of malt or brewed beverages except in the franchise
17territory in which the licensed premises is located and unless
18the same has been approved by the board. The board shall issue
19no more than one storage facility license to an importing
20distributor. The storage location shall be designated solely as
21a storage facility, from which only sales to other licensees are
22permitted. Retail sales may be made at the licensed location
23pursuant to subsection (c). If the importing distributor
24maintains a storage location for cold storage in the same
25municipality in which the importing distributor is licensed or a
26nearby municipality, the importing distributor may continue to
27maintain that cold storage location in addition to another
28storage location within their franchise territory.

29(e) No distributor or importing distributor shall purchase,
30sell, resell, receive or deliver any malt or brewed beverages,

1except in strict compliance with the provisions of subsection
2(b) of section 431 of this act.

3(f)(1) To salvage one or more salable cases from one or more
4damaged cases, cartons or packages of malt or brewed beverages,
5a distributor or importing distributor may repackage consequent
6to inadvertent damage and sell a case, carton or package of
7identical units of malt or brewed beverages.

8(2) Repackaging is permissible only to the extent made
9necessary by inadvertent damage. Repackaging not consequent to
10damage is prohibited.

11(3) The term "identical units" as used in this subsection
12means undamaged bottles or cans of identical brand, package and
13volume.

14(g) All malt or brewed beverages purchased by an importing
15distributor from a Pennsylvania manufacturer of malt or brewed
16beverages or from any person located outside this Commonwealth
17for resale shall be invoiced to the importing distributor, shall
18come physically into the possession of such importing
19distributor and shall be unloaded into and distributed from the
20licensed premises of such importing distributor. The board may
21act to further define and control the storage and distribution
22of malt or brewed beverages in conformity with this section and
23this act.

24(h) As used in this section, the term "franchise territory"
25shall mean the geographically contiguous area in which an
26importing distributor has been given rights for the sale or
27resale of malt or brewed beverages.

28(i) Notwithstanding any other provision to the contrary,
29when making a sale of malt or brewed beverages to a private
30individual, no distributor or importing distributor may be

1required to collect the name, address or any other identifying
2information of the private individual for the purpose of keeping
3a record of the quantity of cases or volume of malt or brewed
4beverages purchased.

5(j) No distributor shall engage in the sale of wine and
6spirits without first obtaining an enhanced distributor license.
7Sales of wine may only be made on premises licensed for the sale
8of malt or brewed beverages.

9Section 21. Section 443(b) of the act, amended May 31, 1996
10(P.L.312, No.49), is amended to read:

11Section 443. Interlocking Business Prohibited.--* * *

12(b) No distributor or importing distributor and no officer
13or director of any distributor or importing distributor shall at
14the same time be a manufacturer, a retail dispenser or a liquor
15licensee, or be an officer, director, stockholder or creditor of
16a manufacturer, a retail dispenser or a liquor licensee, or,
17directly or indirectly, own any stock of, or have any financial
18interest in, or be the owner, proprietor or lessor of, any place
19covered by any other malt or brewed beverage or liquor license.
20The requirements of this section or any other provision of law, 
21shall not prohibit the holder of a restaurant liquor or 
22distributor license from holding an enhanced license or an 
23importing distributor from also holding a wine and spirits 
24wholesale license issued pursuant to Article III-A.

25* * *

26Section 22. Section 464 of the act, amended December 9, 2002
27(P.L.1653, No.212), is amended to read:

28Section 464. Hearings Upon Refusal of Licenses, Renewals or
29Transfers; Appeals.--The board may of its own motion, and shall
30upon the written request of any applicant for club, hotel or

1restaurant liquor license, or any applicant for any malt or
2brewed beverage license other than a public service license, or
3for renewal or transfer thereof, or for the renewal of an
4amusement permit, whose application for such license, renewal or
5transfer, or the renewal of an amusement permit, has been
6refused, fix a time and place for hearing of such application
7for license or for renewal or transfer thereof, or the renewal
8of an amusement permit, notice of which hearing shall be mailed
9to the applicant at the address given in his application. Such
10hearing shall be before a hearing examiner designated by the
11board. At such hearing, the board shall present its reasons for
12its refusal or withholding of license, renewal or transfer
13thereof, or its refusal for renewal of an amusement permit. The
14applicant may appear in person or by counsel, may cross-examine
15the witnesses for the board and may present evidence which shall
16likewise be subject to cross-examination by the board. Such
17hearing shall be stenographically recorded. The hearing examiner
18shall thereafter report, with the examiner's recommendation, to
19the board in each case. The board shall thereupon grant or
20refuse the license, renewal or transfer thereof or the renewal
21of an amusement permit. In considering the renewal of a license
22or amusement permit, the board shall not refuse any such renewal
23on the basis of the propriety of the original issuance or any
24prior renewal of such license or amusement permit. If the board
25shall refuse such license, renewal or transfer or the renewal of
26an amusement permit, following such hearing, notice in writing
27of such refusal shall be mailed to the applicant at the address
28given in his application. In all such cases, the board shall
29file of record at least a brief statement in the form of an
30opinion of the reasons for the ruling or order and furnish a

1copy thereof to the applicant. Any applicant who has appeared at
2any hearing, as above provided, who is aggrieved by the refusal
3of the board to issue any such license or to renew or transfer
4any such license or to issue or renew any amusement permit may
5appeal, or any church, hospital, charitable institution, school
6or public playground located within three hundred feet of the
7premises applied for, aggrieved by the action of the board in
8granting the issuance of any such license or the transfer of any
9such license, may take an appeal limited to the question of such
10grievance, within twenty days from date of refusal or grant, to
11the court of common pleas of the county in which the premises or
12permit applied for is located. If the application is for an
13economic development license under section 461(b.1) or the
14intermunicipal transfer of a license, the governing body of the
15municipality receiving the new license or the transferred
16license may file an appeal of the board decision granting the
17license, within twenty days of the date of the board's decision,
18to the court of common pleas of the county in which the proposed
19premises is located. Such appeal shall be upon petition of the
20aggrieved party, who shall serve a copy thereof upon the board,
21whereupon a hearing shall be held upon the petition by the court
22upon ten days' notice to the board. The said appeal shall, 
23except in cases involving the renewal of a license, act as a
24supersedeas unless upon sufficient cause shown the court shall
25determine otherwise. In cases involving the renewal of a 
26license, the court shall grant a supersedeas only upon 
27application and after a finding that the licensee will likely 
28prevail on the merits of the appeal. The court shall [hear the
29application de novo on questions of fact, administrative
30discretion and such other matters as are involved, at such time

1as it shall fix, of which notice shall be given to the board.
2The court shall either sustain or over-rule the action of the
3board and either order or deny the issuance of a new license or
4the renewal or transfer of the license or the renewal of an
5amusement permit to the applicant] affirm the board unless the 
6board's decision is an error of law, an abuse of discretion or 
7is not supported by substantial evidence.

8Section 23. Section 470(a) of the act, amended December 22,
92011 (P.L.530, No.113), is amended and the section is amended by
10adding subsections to read:

11Section 470. Renewal of Licenses; Temporary Provisions for
12Licensees in Armed Service.--(a) All applications for renewal 
13or validation of licenses under the provisions of this article 
14shall be filed with tax clearance from the Department of Revenue 
15and the Department of Labor and Industry and requisite license 
16and filing fees, including an application surcharge of seven 
17hundred dollars ($700), at least sixty days before the 
18expiration date of same: Provided, however, That, a licensee 
19that applies for a thirty-pack permit shall pay, with its 
20renewal or validation application, an application surcharge of 
21five thousand dollars ($5,000): And provided further, That the 
22board, in its discretion, may accept nunc pro tunc a renewal 
23application filed less than sixty days before the expiration 
24date of the license with the required fees, upon reasonable 
25cause shown and the payment of an additional filing fee of one 
26hundred dollars ($100.00) for late filing: And provided further, 
27That except where the failure to file a renewal application on 
28or before the expiration date has created a license quota 
29vacancy after said expiration date which has been filled by the 
30issuance of a new license, after such expiration date, but
 

1before the board has received a renewal application nunc pro 
2tunc within the time prescribed herein the board, in its 
3discretion, may, after hearing, accept a renewal application 
4filed within two years after the expiration date of the license 
5with the required fees upon the payment of an additional filing 
6fee of two hundred fifty dollars ($250.00) for late filing. 
7Where any such renewal application is filed less than sixty days 
8before the expiration date, or subsequent to the expiration 
9date, no license shall issue upon the filing of the renewal 
10application until the matter is finally determined by the board 
11and if an appeal is taken from the board's action the courts 
12shall not order the issuance of the renewal license until final 
13determination of the matter by the courts. The board may enter 
14into an agreement with the applicant concerning additional 
15restrictions on the license in question. If the board and the 
16applicant enter into such an agreement, such agreement shall be 
17binding on the applicant. Failure by the applicant to adhere to 
18the agreement will be sufficient cause to form the basis for a 
19citation under section 471 and for the nonrenewal of the license 
20under this section. A renewal application will not be considered 
21filed unless accompanied by the requisite filing and license 
22fees and any additional filing fee required by this section. 
23Unless the board shall have given ten days' previous notice to 
24the applicant of objections to the renewal of his license, based 
25upon violation by the licensee or his servants, agents or 
26employes of any of the laws of the Commonwealth or regulations 
27of the board relating to the manufacture, transportation, use, 
28storage, importation, possession or sale of liquors, alcohol or 
29malt or brewed beverages, or the conduct of a licensed 
30establishment, or unless the applicant has by his own act become
 

1a person of ill repute, or unless the premises do not meet the 
2requirements of this act or the regulations of the board, the 
3license of a licensee shall be renewed. Notwithstanding any 
4other provision of this act, a noise violation shall not be the 
5sole basis for objection by the board to the renewal of a 
6license unless the licensee has received six prior adjudicated 
7noise citations within a twenty-four-month period.

8* * *

9(d) If the renewal of the license is objected to because of 
10the reputation of the applicant or its shareholders, directors, 
11officers, association members, servants, agents or employes or 
12under subsection (a.1), the Director of the Bureau of Licensing 
13may, in the director's discretion, grant the applicant temporary 
14operating authority under certain terms the director deems 
15appropriate. The operating authority shall not exceed one 
16hundred twenty (120) calendar days.

17(e) If the renewal of the license is objected to because of
18the reputation of the applicant or its shareholders, directors,
19officers, association members, servants, agents or employes or
20under subsection (a.1), the board shall render a decision on the
21application within one hundred twenty (120) calendar days.

22Section 24. Section 471(b) and (e) of the act, amended or
23added July 6, 2005 (P.L.135, No.39) and April 13, 2006 (P.L.78,
24No.26), are amended and the section is amended by adding a
25subsection to read:

26Section 471. Revocation and Suspension of Licenses; Fines.--
27* * *

28(b) Hearing on such citations shall be held in the same
29manner as provided herein for hearings on applications for
30license. Upon such hearing, if satisfied that any such violation

1has occurred or for other sufficient cause, the administrative
2law judge shall immediately suspend or revoke the license, or
3impose a fine of not less than [fifty dollars ($50)] two hundred 
4fifty dollars ($250) nor more than [one thousand dollars
5($1,000)] five thousand dollars ($5,000), or both, notifying the
6licensee by registered letter addressed to his licensed
7premises. If the licensee has been cited and found to have
8violated section 493(1) insofar as it relates to sales to minors
9or sales to a visibly intoxicated person, section 493(10)
10insofar as it relates to lewd, immoral or improper entertainment
11or section 493(14), (16) or (21), or has been found to be a
12public nuisance pursuant to section 611, or if the owner or
13operator of the licensed premises or any authorized agent of the
14owner or operator has been convicted of any violation of the act
15of April 14, 1972 (P.L.233, No.64), known as "The Controlled
16Substance, Drug, Device and Cosmetic Act," or of 18 Pa.C.S. § 
175902 (relating to prostitution and related offenses) or 6301
18(relating to corruption of minors), at or relating to the
19licensed premises, the administrative law judge shall
20immediately suspend or revoke the license, or impose a fine of
21not less than [one thousand dollars ($1,000)] five thousand 
22dollars ($5,000) nor more than [five thousand dollars ($5,000)] 
23ten thousand dollars ($10,000), or both. However, if a licensee
24has been cited and found to have violated section 493(1) as it
25relates to sales to minors or sales to a visibly intoxicated
26person but at the time of the sale the licensee was in
27compliance with the requirements set forth in section 471.1 and
28the licensee had not sold to minors or visibly intoxicated
29persons in the previous four years, then the administrative law
30judge shall immediately suspend or revoke the license, or impose

1a fine of not less than [fifty dollars ($50)] one thousand 
2dollars ($1,000) nor more than [one thousand dollars ($1,000)] 
3five thousand dollars ($5,000), or both. The administrative law
4judge shall notify the licensee by registered mail, addressed to
5the licensed premises, of such suspension, revocation or fine.
6In the event the fine is not paid within twenty days of the
7adjudication, the administrative law judge shall suspend or
8revoke the license, notifying the licensee by registered mail
9addressed to the licensed premises. Suspensions and revocations
10shall not go into effect until thirty days have elapsed from the
11date of the adjudication during which time the licensee may take
12an appeal as provided for in this act, except that revocations
13mandated in section 481(c) shall go into effect immediately. Any
14licensee whose license is revoked shall be ineligible to have a
15license under this act until the expiration of three years from
16the date such license was revoked. In the event a license is
17revoked, no license shall be granted for the premises or
18transferred to the premises in which the said license was
19conducted for a period of at least one year after the date of
20the revocation of the license conducted in the said premises,
21except in cases where the licensee or a member of his immediate
22family is not the owner of the premises, in which case the board
23may, in its discretion, issue or transfer a license within the
24said year. In the event the bureau or the person who was fined
25or whose license was suspended or revoked shall feel aggrieved
26by the adjudication of the administrative law judge, there shall
27be a right to appeal to the board. The appeal shall be based
28solely on the record before the administrative law judge. The
29board shall only reverse the decision of the administrative law
30judge if the administrative law judge committed an error of law,

1abused its discretion or if its decision is not based on
2substantial evidence. In the event the bureau or the person who
3was fined or whose license was suspended or revoked shall feel
4aggrieved by the decision of the board, there shall be a right
5to appeal to the court of common pleas [in the same manner as
6herein provided for appeals from refusals to grant licenses.
7Each of the appeals shall] which shall affirm the board unless 
8the board's decision is an error of law, an abuse of discretion 
9or not supported by substantial evidence. An appeal by a 
10licensee to the board or the court of common pleas shall not act
11as a supersedeas [unless, upon sufficient cause shown, the] and 
12a reviewing authority shall [determine otherwise; however, if
13the licensee has been cited and found to have violated section
14493(1) insofar as it relates to sales to minors or sales to a
15visibly intoxicated person, section 493(10) insofar as it
16relates to lewd, immoral or improper entertainment or section
17493(14), (16) or (21), or has been found to be a public nuisance
18pursuant to section 611, or if the owner or operator of the
19licensed premises or any authorized agent of the owner or
20operator has been convicted of any violation of "The Controlled
21Substance, Drug, Device and Cosmetic Act," or of 18 Pa.C.S. § 
225902 or 6301, at or relating to the licensed premises, or if the
23license has been revoked under section 481(c), its appeal shall
24not act as a supersedeas unless the reviewing authority
25determines otherwise upon sufficient cause shown. In any hearing
26on an application for a supersedeas under this section, the
27reviewing authority may consider, in addition to other relevant
28evidence, documentary evidence, including records of the bureau,
29showing the prior history of citations, fines, suspensions or
30revocations against the licensee; and the reviewing authority

1may also consider, in addition to other relevant evidence,
2evidence of any recurrence of the unlawful activity occurring
3between the date of the citation which is the subject of the
4appeal and the date of the hearing. If the reviewing authority
5is the board, no hearing shall be held on the application for a
6supersedeas; however, a decision shall be made based on the
7application, answer and documentary evidence under this
8subsection. If the application for a supersedeas is for a
9license that has been revoked under section 481(c), the
10reviewing authority shall grant the supersedeas only if it finds
11that the licensee will likely prevail on the merits. No penalty
12provided by this section shall be imposed for any violations
13provided for in this act unless the bureau notifies the licensee
14of its nature within thirty days of the completion of the
15investigation.] grant a supersedeas only upon application and 
16after a finding that the licensee will likely prevail on the 
17merits of the appeal. An appeal by the bureau shall act as an 
18automatic supersedeas.

19* * *

20(e) If a licensee has been cited and found to have violated
21section 493(1) for a second or subsequent offense as it relates
22to sales to minors or sales to a visibly intoxicated person, the
23administrative law judge, in addition to the penalties set forth
24in subsection (b), shall impose a suspension of at least two 
25consecutive weekend days when the offense is a second offense or 
26two consecutive Saturdays of operation if the licensee does not 
27hold a Sunday sales permit, and a suspension of at least seven 
28consecutive days of operation when the offense is a third or 
29subsequent offense. The mandatory suspension provision shall not 
30apply to licensees which also hold a license issued by the
 

1Pennsylvania Gaming Control Board for the use of their premises. 
2Further, the administrative law judge may, in such instances,
3require the licensee to comply with the requirements set forth
4in section 471.1 pertaining to responsible alcohol management.
5Such compliance may be required for a period of up to one year.
6Failure to adhere with such an order is sufficient cause for the
7issuance of a citation under subsection (a).

8* * *

9(g) All fines and proceeds derived from the conversion of a
10suspension to a fine received by the administrative law judge
11shall be remitted to the enforcement bureau for continued
12enforcement efforts.

13Section 25. Sections 472(a) and 488 of the act, amended or
14added February 21, 2002 (P.L.103, No.10), are amended to read:

15Section 472. Local Option.--(a) In any municipality or any
16part of a municipality where such municipality is split so that
17each part thereof is separated by another municipality, an
18election may be held, subject to subsection (c), on the date of
19the primary election immediately preceding any municipal
20election, but not oftener than once in four years, to determine
21the will of the electors with respect to the granting of liquor
22licenses to hotels, restaurants, resort facilities and clubs,
23not oftener than once in four years, to determine the will of
24the electors with respect to the granting of liquor licenses to
25public venues, to performing arts facilities, to continuing care
26retirement communities, to hotels located on property owned by
27an accredited college or university, to privately-owned private
28golf courses or to privately-owned public golf courses, not
29oftener than once in four years, to determine the will of the
30electors with respect to the granting of licenses to retail

1dispensers of malt and brewed beverages, not oftener than once
2in four years, to determine the will of the electors with
3respect to granting of licenses to wholesale distributors and
4importing distributors, not more than once in two years, to
5determine the will of the electors with respect to the granting
6of club liquor licenses or club retail dispenser licenses to
7incorporated units of national veterans' organizations, not
8oftener than once in two years to determine the will of the
9electors with respect to the granting of special occasion
10permits to qualified organizations, or not more than once in
11four years, to determine the will of the electors with respect
12to the establishment[, operation and maintenance by the board of
13Pennsylvania liquor stores] of enhanced licensees, within the
14limits of such municipality or part of a split municipality,
15under the provisions of this act: Provided, however, Where an
16election shall have been held at the primary preceding a
17municipal election in any year, another election may be held
18under the provisions of this act at the primary occurring the
19fourth year after such prior election: And provided further,
20That an election on the question of establishing and operating a
21State liquor store shall be initiated only in those
22municipalities, or that part of a split municipality that shall
23have voted against the granting of liquor licenses; and that an
24election on the question of granting wholesale distributor and
25importing distributor licenses shall be initiated only in those
26municipalities or parts of split municipalities that shall have
27at a previous election voted against the granting of dispenser's
28licenses. Whenever electors equal to at least twenty-five per
29centum of the highest vote cast for any office in the
30municipality or part of a split municipality at the last

1preceding general election shall file a petition with the county
2board of elections of the county for a referendum on the
3question of granting any of said classes of licenses [or the
4establishment of Pennsylvania liquor stores], the said county
5board of elections shall cause a question to be placed on the
6ballots or on the voting machine board and submitted at the
7primary immediately preceding the municipal election. Separate
8petitions must be filed for each question to be voted on. Said
9proceedings shall be in the manner and subject to the provisions
10of the election laws which relate to the signing, filing and
11adjudication of nomination petitions, insofar as such provisions
12are applicable.

13When the question is in respect to the granting of liquor
14licenses, it shall be in the following form:

15Do you favor the granting of liquor licenses for the 16sale of liquor in....................................... 17of.....................................................?

Yes No

18When the question is in respect to the granting of liquor
19licenses to resort facilities in those municipalities that do
20not already allow the retail sale of liquor, it shall be in the
21following form:

22Do you favor the granting of liquor licenses to resort 23facilities for the sale of liquor in the................ 24of.....................................................?

Yes No

25When the question is in respect to the granting of restaurant
26liquor licenses for use at public venues in those municipalities
27that do not already allow the retail sale of liquor, it shall be
28in the following form:

29Do you favor the granting of liquor licenses to public 30venues for the sale of liquor in the.................... 20130HB1634PN2249 -103-     1of.....................................................?

Yes No

2When the question is in respect to the granting of restaurant
3liquor licenses for use at performing arts facilities in those
4municipalities that do not already allow the retail sale of
5alcohol, it shall be in the following form:

6Do you favor the granting of liquor licenses to 7performing arts facilities for the sale of liquor in 8the..................................................... 9of.....................................................?

Yes No

10When the question is in respect to the granting of liquor
11licenses for hotels located on property owned by an accredited
12college or university in those municipalities that do not
13already allow the granting of liquor licenses, it shall be in
14the following form:

15Do you favor the granting of liquor licenses to hotels 16on property owned by an accredited college or university 17in the.................................................. 18of.....................................................?

Yes No

19When the question is in respect to the granting of liquor
20licenses, for privately-owned private golf courses, it shall be
21in the following form:

22Do you favor the granting of liquor licenses for 23privately-owned private golf courses for the sale of 24liquor in....................by......................... 25of.....................................................?

Yes No

26When the question is in respect to the granting of liquor
27licenses, for privately-owned public golf courses, it shall be
28in the following form:

29Do you favor the granting of liquor licenses for 30privately-owned public golf courses for the sale of 20130HB1634PN2249 -104-     1liquor in....................by......................... 2of.....................................................?

Yes No

3When the question is in respect to the granting of liquor
4licenses to continuing care retirement communities in those
5municipalities that have not already approved the granting of
6liquor licenses, it shall be in the following form:

7Do you favor the granting of liquor licenses for 8continuing care retirement communities 9in...........................by......................... 10of.....................................................?

Yes No

11When the question is in respect to the granting of licenses
12to retail dispensers of malt and brewed beverages, it shall be
13in the following form:

14Do you favor the granting of malt and brewed beverage

15retail dispenser licenses for consumption on premises 16where sold in the....................................... 17of.....................................................?

Yes No

18When the question is in respect to the granting of licenses
19to wholesale distributors of malt or brewed beverages and
20importing distributors, it shall be in the following form:

21Do you favor the granting of malt and brewed beverage 22wholesale distributor's and importing distributor's 23licenses not for consumption on premises where sold in 24the..................................................... 25of.....................................................?

Yes No

26When the question is in respect to the granting of club
27liquor licenses to incorporated units of national veterans'
28organizations, it shall be in the following form:

29Do you favor the granting of club liquor licenses to 30incorporated units of national veterans' organizations 20130HB1634PN2249 -105-     1in the.................................................. 2of.....................................................?

Yes No

3When the question is in respect to the granting of club
4retail dispenser licenses to incorporated units of national
5veterans' organizations, it shall be in the following form:

6Do you favor the granting of club retail dispenser 7licenses to incorporated units of national veterans' 8organizations in the.................................... 9of.....................................................?

Yes No

10When the question is in respect to the granting of special
11occasion permits allowing the sale of liquor by qualified
12organizations in municipalities that do not already allow the
13retail sale of liquor, it shall be in the following form:

14Do you favor the granting of special occasion permits to 15allow the sale of liquor by qualified organizations in 16the..................................................... 17of.....................................................?

Yes No

18When the question is in respect to the granting of special
19occasion permits allowing the sale of malt or brewed beverages
20only by qualified organizations in municipalities that do not
21already allow the retail sale of malt or brewed beverages, it
22shall be in the following form:

23Do you favor the granting of special occasion permits to 24allow the sale of malt or brewed beverages only by 25qualified organizations in the.......................... 26of.....................................................?

Yes No

27When the question is in respect to the [establishment,
28operation and maintenance of Pennsylvania liquor stores] 
29granting of enhanced restaurant liquor or enhanced distributor 
30licenses for the sale of liquor for consumption off the
 

1premises, it shall be in the following form:

2Do you favor the [establishment, operation and 3maintenance of Pennsylvania liquor stores] granting of  4enhanced restaurant liquor or enhanced distributor  5licenses for the sale of liquor for consumption off the  6premises in the......................................... 7of.....................................................?

Yes No

8In case of a tie vote, the status quo shall obtain. If a
9majority of the voting electors on any such question vote "yes,"
10then liquor licenses shall be granted by the board to hotels,
11restaurants, resort facilities and clubs, or liquor licenses
12shall be granted by the board to public venues, to performing
13arts facilities, to continuing care retirement communities, to
14hotels located on property owned by an accredited college or
15university, to privately-owned private golf courses or to
16privately-owned public golf courses, or malt and brewed beverage
17retail dispenser licenses or wholesale distributor's and
18importing distributor's license for the sale of malt or brewed
19beverages shall be granted by the board, or club liquor licenses
20or club retail dispenser licenses shall be granted by the board
21to incorporated units of national veterans' organizations, or
22special occasion permits may be issued to qualified
23organizations, or [the board may establish, operate and maintain
24Pennsylvania liquor stores] enhanced licensees, as the case may
25be, in such municipality or part of a split municipality, as
26provided by this act; but if a majority of the electors voting
27on any such question vote "no," then the board shall have no
28power to grant or to renew upon their expiration any licenses of
29the class so voted upon in such municipality or part of a split
30municipality[; or if the negative vote is on the question in

1respect to the establishment, operation and maintenance of
2Pennsylvania liquor stores, the board shall not open and operate
3a Pennsylvania liquor store in such municipality or part of a
4split municipality, nor continue to operate a then existing
5Pennsylvania liquor store in the municipality or part of a split
6municipality for more than two years thereafter or after the
7expiration of the term of the lease on the premises occupied by
8such store, whichever period is less, unless and until at a
9later election a majority of the voting electors vote "yes" on
10such question].

11* * *

12Section 488. Shipment of Wine into Commonwealth.--(a) The
13shipment of wine from [out-of-State] a direct wine shipper to
14residents of this Commonwealth is prohibited, except as
15otherwise provided for in this section.

16(b) Notwithstanding any other provision of this act or law
17to the contrary, a person licensed by the board or by another
18state as a producer[, supplier, importer, wholesaler,
19distributor or retailer] of wine and who obtains a direct wine
20shipper license as provided for in this section may ship up to
21[nine] eighteen liters per month of any wine [not included on
22the list provided for in subsection (c)] on the [Internet] order
23of any resident of this Commonwealth who is at least twenty-one
24(21) years of age for such resident's personal use and not for
25resale.

26(c) [Each month, the board shall publish on the Internet a
27list of all classes, varieties and brands of wine available for
28sale in the Pennsylvania Liquor Stores. A person holding a
29direct shipper license may ship only those classes, varieties
30and brands of wine not included on the list at the time an

1Internet order is placed] Reserved.

2(d) [An out-of-State] A direct wine shipper shall:

3(1) [Not ship more than nine liters per month on the
4Internet order of any person in this Commonwealth.] File a 
5written application with the board in such form and containing 
6such information as the board shall require. A completed 
7application shall contain a true and correct copy of the 
8applicant's current license or certificate of operating 
9authority issued by the board or by another state. The applicant 
10must provide documentation that it has obtained a sales tax 
11license from the Department of Revenue. The licensing period for 
12the license shall be established under section 402. An applicant 
13for the license shall adhere to the provisions of section 477. 
14The application, renewal and filing fee for the license shall be 
15as prescribed by the board to cover administrative costs in 
16processing the applications, however, if an applicant, at the 
17time of the initial application for the license, holds a valid 
18limited winery license issued by the board, the applicant shall 
19be exempt from paying the application fee prescribed by the 
20board. If the applicant properly renews its limited winery 
21license, as provided for in section 517, the applicant shall not 
22be required to pay the renewal fee prescribed by the board.

23(2) Report to the board each [year] month the total [of]
24number of bottles sold and shipped during the preceding calendar 
25month, the size of those bottles, the name brand of each wine in 
26the shipments, the quantities of each wine included in the 
27shipments and the price of each item included in the shipments, 
28for all such wine shipped within and into this Commonwealth in
29the preceding calendar [year] month.

30(3) Permit the board, the enforcement bureau or the

1Secretary of Revenue, or their designated representatives, to
2perform an audit of the [out-of-State] direct wine shipper's
3records upon request.

4(4) Be deemed to have submitted to the jurisdiction of the
5board, any other State agency and the courts of this
6Commonwealth for purposes of enforcement of this section and any
7related laws, rules or regulations, including the collection and 
8remission of taxes as required under this section.

9(e) A direct wine shipper [may ship wine on the Internet
10order of a resident into this Commonwealth provided that the
11wine is shipped to a Pennsylvania Liquor Store selected by the
12resident. The wine will be subject to taxes in the same manner
13as wine sold directly by the board.] shall collect and pay to 
14the Department of Revenue all taxes due on sales to residents of 
15this Commonwealth. The amount of taxes shall be calculated as if 
16the sales were made in this Commonwealth at the locations where 
17delivery is made. The wine will not be released by the [State
18store] direct wine shipper until all moneys due, including all
19taxes [and fees], have been paid by the resident.

20(f) [A person shall sign an affidavit provided by the
21Pennsylvania Liquor Store where the wine was delivered to
22stating that the wine will only be used for the person's
23personal use.] A direct wine shipper may ship wine pursuant to 
24this section only if the resident placing the order has provided 
25the shipper with a written or electronic acknowledgment that the 
26wine is for personal consumption only and not for resale. Any
27person who resells wine obtained under this section commits a
28misdemeanor of the second degree. A direct wine shipper shall:

29(1) Ensure that all containers of wine shipped directly to a
30resident of this Commonwealth are conspicuously labeled with the

1words "CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE TWENTY-ONE (21)
2OR OLDER REQUIRED FOR DELIVERY."

3(2) Ensure that shipments shall be delivered by an entity
4holding a valid transporter-for-hire license issued by the board
5and that the transporter-for-hire may not deliver any wine
6unless it does all of the following:

7(i) Obtains the signature of the recipient of the wine upon
8delivery.

9(ii) Verifies by inspecting a valid form of photo
10identification, as provided for in section 495(a), that the
11recipient is at least twenty-one (21) years of age.

12(iii) Determines that the recipient is not visibly
13intoxicated at the time of delivery.

14(g) The board may promulgate such rules and regulations as
15are necessary to implement and enforce the provisions of this
16section. [The board may charge the resident a fee to cover the
17cost associated with processing the Internet order.]

18(g.1) On a quarterly basis, a direct wine shipper shall
19provide to the Department of Revenue, with a copy to the board,
20an accounting of the taxes collected pursuant to this section.
21All taxes collected by the direct wine shipper shall be remitted
22to the Department of Revenue on a quarterly basis. All direct
23wine shippers shall provide to the board, the enforcement bureau
24and the Department of Revenue additional information deemed
25necessary to ensure compliance with this section.

26(h) The board shall submit monthly reports to the
27Appropriations Committee and the Law and Justice Committee of
28the Senate and to the Appropriations Committee and the Liquor
29Control Committee of the House of Representatives summarizing
30the number of direct shipper licenses issued by the board, the

1quantity of wine sold pursuant to this section and the total
2dollar value of sales under this section.

3(i) The term "wine" as used in this section shall mean
4liquor which is fermented from grapes and other fruits, having
5alcoholic content of twenty-four per centum or less. The term
6"wine" shall not include malt or brewed beverages nor shall wine
7include any products containing alcohol derived from malt,
8grain, cereal, molasses or cactus.

9(j) Direct wine shipper licenses shall be subject to the
10citation process under section 471.

11(k) A shipment of wine direct to a person in this
12Commonwealth from a person who does not possess a direct wine
13shipper license from the board is prohibited. A person who
14knowingly makes, participates in, transports, imports or
15receives the shipment commits a misdemeanor.

16(l) An applicants for a direct wine shipper license shall
17obtain a tax bond in the amount of one thousand dollars
18($1,000).

19Section 26. Section 491 of the act, amended October 5, 1994
20(P.L.522, No.77), February 21, 2002 (P.L.103, No.10), December
219, 2002 (P.L.1653, No.212), July 17, 2003 (P.L.63, No.15),
22December 22, 2011 (P.L.530, No.113) and July 5, 2012 (P.L.1007,
23No.116), is amended to read:

24Section 491. Unlawful Acts Relative to Liquor, Alcohol and
25Liquor Licensees.--

26It shall be unlawful--

27(1) Sales of Liquor. For any person, by himself or by an
28employe or agent, to expose or keep for sale, or directly or
29indirectly, or upon any pretense or upon any device, to sell or
30offer to sell any liquor within this Commonwealth, except in

1accordance with the provisions of this act and the regulations
2of the board. This clause shall not be construed to prohibit
3hospitals, physicians, dentists or veterinarians who are
4licensed and registered under the laws of this Commonwealth from
5administering liquor in the regular course of their professional
6work and taking into account the cost of the liquor so
7administered in making charges for their professional service,
8or a pharmacist duly licensed and registered under the laws of
9this Commonwealth from dispensing liquor on a prescription of a
10duly licensed physician, dentist or veterinarian, or selling
11medical preparations containing alcohol, or using liquor in
12compounding prescriptions or medicines and making a charge for
13the liquor used in such medicines, or a manufacturing pharmacist
14or chemist from using liquor in manufacturing preparations unfit
15for beverage purposes and making a charge for the liquor so
16used. All such liquors so administered or sold by hospitals,
17physicians, dentists, veterinarians, pharmacists or chemists
18shall conform to the Pharmacopoeia of the United States, the
19National Formulary, or the American Homeopathic Pharmacopoeia.
20This clause shall not be construed to prohibit an executor or an
21administrator of a decedent's estate from selling privately or
22at public auction liquor which was an asset of the decedent. The
23board shall establish regulations to ensure that State taxes
24from the sales will be paid by the estate from the proceeds of
25the sale. The board may not prohibit a sale of liquor for the
26reason that it was not lawfully acquired prior to January 1,
271934 or has not been purchased from a Pennsylvania Liquor Store
28or in compliance with Pennsylvania law.

29(2) Possession or Transportation of Liquor or Alcohol. For
30any person, except a manufacturer or the board or the holder of

1a sacramental wine license or of an importer's license or an 
2enhanced licensee, to possess or transport any liquor or alcohol
3within this Commonwealth which was not lawfully acquired prior
4to January first, one thousand nine hundred and thirty-four, or
5has not been purchased from a Pennsylvania Liquor Store, a wine 
6and spirits wholesale licensee or a licensed limited winery in
7Pennsylvania, except in accordance with section 488 or the
8board's regulations. In addition, it shall be lawful for anyone
9to possess miniatures totaling less than one gallon purchased in
10another state or a foreign country. The burden shall be upon the
11person possessing or transporting such liquor or alcohol to
12prove that it was so acquired. Notwithstanding this section or
13any other provision of the law, wine may be produced by any
14person without a license if the wine is not produced for sale
15and total production does not exceed two hundred gallons per
16calendar year. Wine produced in accordance with this clause may
17be used at organized affairs, exhibitions, competitions,
18contests, tastings or judgings if it is not sold or offered for
19sale.

20None of the provisions herein contained shall prohibit nor
21shall it be unlawful for any person to import into Pennsylvania,
22transport or have in his possession, an amount of liquor not
23exceeding one gallon in volume upon which a State tax has not
24been paid, if it can be shown to the satisfaction of the board
25that such person purchased the liquor in a foreign country or
26United States territory and was allowed to bring it into the
27United States. Neither shall the provisions contained herein
28prohibit nor make it unlawful for (i) any member of the armed
29forces on active duty, or (ii) any retired member of the armed
30forces, or (iii) any totally disabled veteran, or (iv) the

1spouse of any person included in the foregoing classes of
2persons to import into Pennsylvania, transport or have in his
3possession an amount of liquor not exceeding one gallon per
4month in volume upon which the State tax has not been paid, so
5long as such liquor has been lawfully purchased from a package
6store established and maintained under the authority of the
7United States and is in containers identified in accordance with
8regulations issued by the Department of Defense. Such liquor
9shall not be possessed, offered for sale or sold on any licensed
10premises. The term "package store" as used in this clause shall 
11mean those retail operations located on any of the United States 
12military installations, including an installation of the Army, 
13Navy, Air Force, Marine Corps or Coast Guard.

14None of the provisions herein contained shall prohibit nor
15shall it be unlawful for any consul general, consul or other
16diplomatic officer of a foreign government to import into
17Pennsylvania, transport or have in his possession liquor upon
18which a State tax has not been paid, if it can be shown to the
19satisfaction of the board that such person acquired the liquor
20in a foreign country and was allowed to bring it into the United
21States. Such liquor shall not be possessed, offered for sale or
22sold on any licensed premises.

23Any person violating the provisions of this clause for a
24first offense involving the possession or transportation in
25Pennsylvania of any liquor in a package (bottle or other
26receptacle) or wine not purchased from a Pennsylvania Liquor
27Store, a wine and spirits wholesale licensee, an enhanced 
28licensee or from a licensed limited winery in Pennsylvania, with
29respect to which satisfactory proof is produced that the
30required Federal tax has been paid and which was purchased,

1procured or acquired legally outside of Pennsylvania shall upon
2conviction thereof in a summary proceeding be sentenced to pay a
3fine of twenty-five dollars ($25) for each such package, plus
4costs of prosecution, or undergo imprisonment for a term not
5exceeding ninety (90) days. Each full quart or major fraction
6thereof shall be considered a separate package (bottle or other
7receptacle) for the purposes of this clause. Such packages of
8liquor shall be forfeited to the Commonwealth in the manner
9prescribed in Article VI of this act but the vehicle, boat,
10vessel, animal or aircraft used in the illegal transportation of
11such packages shall not be subject to forfeiture: Provided,
12however, That if it is a second or subsequent offense or if it
13is established that the illegal possession or transportation was
14in connection with a commercial transaction, then the other
15provisions of this act providing for prosecution as a
16misdemeanor and for the forfeiture of the vehicle, boat, vessel,
17animal or aircraft shall apply.

18(3) Purchase of Liquor or Alcohol. For any person within
19this Commonwealth, by himself or by an employe or agent, to
20attempt to purchase, or directly or indirectly, or upon any
21pretense or device whatsoever, to purchase any liquor or alcohol
22from any person or source [other than a Pennsylvania Liquor
23Store], except in accordance with the provisions of this act or
24the regulations of the board.

25(4) Possession and Use of Decanters. For any person to use
26decanters of alcoholic beverages except that the use of
27decanters or other similar receptacles by licensees shall be
28permitted in the case of wines and then only in accordance with
29the regulations of the board, but nothing herein contained shall
30prohibit the manufacture and possession of wine as provided in

1clause (2) of this section.

2(5) Failure to Properly Dispose of Empty Liquor Containers.
3For any restaurant, hotel or club licensee, his servants, agents
4or employes, to fail to break any package in which liquors were
5contained, except those decanter packages that the board
6determines to be decorative, within twenty-four hours after the
7original contents were removed therefrom, unless the licensee
8participates in either a municipal recycling program, in
9accordance with the act of July 28, 1988 (P.L.556, No.101),
10known as the "Municipal Waste Planning, Recycling and Waste
11Reduction Act," or a voluntary recycling program. The licensee
12shall provide proof in writing of the participation in a
13recycling program upon the demand of the Bureau of Liquor
14Control Enforcement of the Pennsylvania State Police. The proof
15of participation shall be provided in a manner as prescribed by
16the Pennsylvania Liquor Control Board.

17(6) Sales by Restaurant and Hotel Liquor Licensees. For any
18restaurant or hotel licensee, his servants, agents or employes,
19to sell any liquor or malt or brewed beverages for consumption
20on the licensed premises except in a room or rooms or place on
21the licensed premises at all times accessible to the use and
22accommodation of the general public, but this section shall not
23be interpreted to prohibit a restaurant liquor licensee from
24providing private affairs the primary function of which is for
25catering only to weddings or special occasions arranged twenty-
26four hours in advance, nor to prohibit a hotel licensee, or a
27restaurant licensee when the restaurant is located in a hotel,
28from selling liquor or malt or brewed beverages in any room of
29such hotel occupied by a bona fide guest or to prohibit a
30restaurant licensee from selling liquor or malt or brewed

1beverages in a bowling alley where the restaurant and bowling
2alley are immediately adjacent and under the same roof.

3(7) Sales of Liquor by Manufacturers and Licensed Importers.
4For any manufacturer or licensed importer of liquor in this
5Commonwealth, his agents, servants or employes, to sell or offer
6to sell any liquor in this Commonwealth except to the board for
7use in Pennsylvania Liquor Stores, a wine and spirits wholesale 
8licensee, and in the case of a manufacturer, to the holder of a
9sacramental wine license or an importer's license.
10Notwithstanding any other provision of this act, a manufacturer
11or licensed importer may sell or offer to sell liquor for
12delivery outside of this Commonwealth.

13(8) Importation and Sales of Alcohol. For any person, to
14import alcohol into this Commonwealth, or to sell alcohol to any
15person, except in accordance with section 488 and the provisions 
16of this act or the regulations of the board.

17(9) Possession of Alcohol. For any person, to have alcohol
18in his possession, except in accordance with the provisions of
19this act and the regulations of the board.

20(10) Fortifying, Adulterating or Contaminating Liquor. For
21any licensee or any employe or agent of a licensee or of the
22board, to fortify, adulterate or contaminate any liquor, except
23as permitted by the regulations of the board, or to refill
24wholly or in part, with any liquid or substance whatsoever, any
25liquor bottle or other liquor container.

26(11) Importation of Liquor. For any person, other than the
27board, a wine and spirits wholesale licensee or the holder of a
28sacramental wine license, an importer's license or a direct
29shipper's license, to import any liquor whatsoever into this
30Commonwealth, but this section shall not be construed to

1prohibit railroad and pullman companies from purchasing and
2selling liquors purchased outside the Commonwealth in their
3dining, club and buffet cars which are covered by public service
4liquor licenses and which are operated in this Commonwealth.

5(12) Delivery of Liquor by Certain Licensees. For a liquor
6licensee permitted to deliver liquor, to make any deliveries
7except in his own vehicles bearing his name, address and license
8number on each side in letters not smaller than two inches in
9height, or in the vehicle of another person duly authorized to
10transport liquor within this Commonwealth.

11(13) Violation of Certain Rules and Regulations of Board.
12For any person, to violate any rules and regulations adopted by
13the board [to insure the equitable] relating to wholesale and
14retail sale and distribution of liquor and alcohol [through the
15Pennsylvania Liquor Stores] in accordance with the provisions of 
16this act.

17(14) Offering Commission or Gift to Members of Board [or 
18State Employe]. For any person [selling or offering to sell 
19liquor or alcohol to, or purchasing at wholesale liquor or 
20alcohol from, the board] licensed by the board, either directly 
21or indirectly, to pay or offer to pay any commission, profit or 
22remuneration, or to make or offer to make any gift to any member 
23or employe of the board [or other employe of the Commonwealth] 
24or to anyone on behalf of such member or employe.

25Section 27. Section 492 of the act, amended February 18, 
261998 (P.L.162, No.25), November 10, 1999 (P.L.514, No.47), 
27December 20, 2000 (P.L.992, No.141), December 9, 2002 (P.L.1653, 
28No.212), January 6, 2006 (P.L.1, No.1) and December 22, 2011 
29(P.L.530, No.113), is amended to read:

30Section 492. Unlawful Acts Relative to Malt or Brewed

1Beverages and Licensees.--

2It shall be unlawful--

3(1) Manufacturing Without License. Except as provided
4herein, for any person, to manufacture malt or brewed beverages,
5unless such person holds a valid manufacturer's license for such
6purpose issued by the board. Malt or brewed beverages may be
7produced by any person without a license if such malt or brewed
8beverages are produced not for sale and total production does
9not exceed two hundred gallons per calendar year. Malt or brewed
10beverages produced in accordance with this paragraph may be used
11at organized affairs, exhibitions, competitions, contests,
12tastings or judging provided it is not sold or offered for sale.

13(2) Sales of Malt or Brewed Beverages for Consumption on the
14Premises. For any person, to sell to another for consumption
15upon the premises where sold or to permit another to consume
16upon the premises where sold, any malt or brewed beverages,
17unless such person holds a valid retail dispenser license or a
18valid liquor license issued by the board authorizing the sale of
19malt or brewed beverages for consumption upon such premises.

20(3) Sales of Malt or Brewed Beverages Not for Consumption on
21the Premises. For any person, to sell to another any malt or
22brewed beverages not for consumption upon the premises where
23sold, unless such person holds a valid license permitting such
24sale.

25(5) Sales of Malt or Brewed Beverages by Hotels, Eating
26Places or Public Service Licensees During Prohibited Hours.--For
27any hotel or eating place holding a retail dispenser's license,
28or the servants, agents or employes of such licensees, to sell,
29trade or barter in malt or brewed beverages between the hours of
30two o'clock antemeridian Sunday and seven o'clock in the

1forenoon of the following Monday, or between the hours of two
2o'clock antemeridian and seven o'clock antemeridian of any week
3day: Provided, That notwithstanding any provision to the
4contrary, whenever the thirty-first day of December falls on a
5Sunday such sales of malt or brewed beverages may be made on
6such day after one o'clock postmeridian and until two o'clock
7antemeridian of the following day. For any public service
8licensee authorized to sell malt or brewed beverages or the
9servants, agents or employes of such licensees to sell, trade or
10barter in malt or brewed beverages between the hours of two
11o'clock antemeridian and seven o'clock antemeridian on any day.

12(7) Clubs Selling Between Three O'Clock Antemeridian and
13Seven O'Clock Antemeridian. For any club retail dispenser, or
14its servants, agents or employes, to sell malt or brewed
15beverages between the hours of three o'clock antemeridian and
16seven o'clock antemeridian on any day.

17(8) Transportation and Importation of Malt or Brewed
18Beverages. For any person, to transport malt or brewed beverages
19except in the original containers, or to transport malt or
20brewed beverages for another who is engaged in selling either
21liquor or malt or brewed beverages, unless such person shall
22hold (a) a license to transport for hire, alcohol, liquor and
23malt or brewed beverages, as hereinafter provided in this act,
24or (b) shall hold a permit issued by the board and shall have
25paid to the board such permit fee, as prescribed in section 614-
26A of the act of April 9, 1929 (P.L.177, No.175), known as "The
27Administrative Code of 1929," any other law to the contrary
28notwithstanding. This clause shall not be construed:

29(i) to prohibit transportation of malt or brewed beverages
30through this Commonwealth and not for delivery in this

1Commonwealth if such transporting is done in accordance with the
2rules and regulations of the board; or

3(ii) to prohibit railroad and Pullman companies from selling
4malt or brewed beverages purchased outside this Commonwealth in
5their dining, club and buffet cars which are covered by public
6service liquor licenses and which are operated in this
7Commonwealth.

8(9) Transportation of Malt or Brewed Beverages by Licensee. 
9For a malt or brewed beverage licensee, to deliver or transport 
10any malt or brewed beverages, excepting in vehicles bearing the 
11name and address and license number of such licensee painted or 
12affixed on each side of such vehicle in letters no smaller than 
13two inches in height and for purposes not prohibited under this 
14act.

15(11) Delivery of Malt or Brewed Beverages With Other
16Commodities. For any manufacturer, importing distributor or
17distributor, or his servants, agents or employes, except with
18board approval, to deliver or transport any malt or brewed
19beverages in any vehicle in which any other commodity is being
20transported.

21(12) Distributors and Importing Distributors Engaging in
22Other Business. For any distributor or importing distributor, or
23his servants, agents or employes, without the approval of the
24board, and then only in accordance with board regulations, to
25engage in any other business whatsoever, except the business of
26distributing malt or brewed beverages, except that the sale of 
27the following goods shall be permitted on the licensed premises 
28of a distributor or importing distributor:

29(i) Any book, magazine or other publication related to malt
30or brewed beverages.

1(ii) Any equipment, ingredients or other supplies necessary
2for the unlicensed manufacture of malt or brewed beverages as
3described in paragraph (1), commonly known as "homebrewing."

4If the holder of a distributor license acquires an enhanced
5distributor license pursuant to section 431.2 for use at its
6licensed premises, it may engage in the sale of liquor, so long
7as the licensee meets all of the requirements of this act. If
8the holder of an importing distributor license acquires a wine
9and spirits wholesale license pursuant to Article III-A for use
10at its licensed premises, it may engage in the sale of liquor,
11so long as the licensee meets all of the requirements of this
12act. The board shall promulgate regulations consistent with this
13act governing the sale of any other items by a distributor that
14acquires an enhanced distributor license, as well as the sale of
15other items by an importing distributor that acquires a wine and
16spirits wholesale license.

17(13) Possession or Storage of Liquor or Alcohol by Certain
18Licensees. For any distributor, importing distributor or retail
19dispenser, or his servants, agents or employes, to have in his
20possession, or to permit the storage of on the licensed premises
21or in any place contiguous or adjacent thereto accessible to the
22public or used in connection with the operation of the licensed
23premises, any alcohol or liquor. This section may not prohibit a 
24distributor that holds an enhanced distributor license or an 
25importing distributor that holds a wine and spirits wholesale 
26license from possessing or permitting the storage of liquor on 
27the licensed premises used in connection with the operation of 
28the licensed premises.

29(14) Malt or Brewed Beverage Licensees Dealing in Liquor or
30Alcohol. For any malt or brewed beverage licensee, other than a

1distributor that holds an enhanced distributor license or an 
2importing distributor that holds a wine and spirits wholesale 
3license, a manufacturer, or the servants, agents or employes
4thereof, to manufacture, import, sell, transport, store, trade
5or barter in any liquor or alcohol.

6(15) Selling to Persons Doing Illegal Business. For any malt
7or brewed beverage licensee, or his servants, agents or
8employes, to knowingly sell any malt or brewed beverages to any
9person engaged in the business of illegally selling liquor or
10malt or brewed beverages.

11(16) Distributors and Importing Distributors Failing to Keep
12Records. For any importing distributor or distributor engaged in
13the sale of products, other than malt or brewed beverages, to
14fail to keep such complete separate records covering in every
15respect his transactions in malt or brewed beverages as the
16board shall by regulation require.

17(17) Fortifying, Adulterating or Contaminating Malt or
18Brewed Beverages. For any person, to fortify, adulterate,
19contaminate, or in any wise to change the character or purity
20of, the malt or brewed beverages from that as originally
21marketed by the manufacturer at the place of manufacture.

22(18) Coercing Distributors and Importing Distributors. For
23any manufacturer or any officer, agent or representative of any
24manufacturer to coerce or persuade or attempt to coerce or
25persuade any person licensed to sell or distribute malt or
26brewed beverages at wholesale or retail to establish selling
27prices for its products or to enter into any contracts or
28agreements, whether written or oral, or take any action which
29will violate or tend to violate any provisions of this act or
30any of the rules or regulations promulgated by the board

1pursuant thereto.

2(19) Modifying or Terminating Distributing Rights Agreement.
3For any manufacturer or any officer, agent or representative of
4any manufacturer to modify, cancel, terminate, rescind or not
5renew, without good cause, any distributing rights agreement,
6and in no event shall any modification, cancellation,
7termination, rescission or nonrenewal of any distributing rights
8agreement become effective for at least ninety (90) days after
9written notice of such modification, cancellation, termination,
10rescission or intention not to renew has been served on the
11affected party and board by certified mail, return receipt
12requested, except by written consent of the parties to the
13agreement. The notice shall state all the reasons for the
14intended modification, termination, cancellation, rescission or
15nonrenewal. The distributor or importing distributor holding
16such agreement shall have ninety (90) days in which to rectify
17any claimed deficiency, or challenge the alleged cause.

18If the deficiency shall be rectified within ninety (90) days
19of notice, then the proposed modification, termination,
20cancellation, rescission or nonrenewal shall be null and void
21and without legal effect.

22If the notice states as one of the reasons for the intended
23modification, cancellation, termination, rescission or renewal
24that the importing distributor or distributor's equipment or
25warehouse requires major changes or additions, then if the
26distributor or importing distributor shall have taken some
27positive action to comply with the required changes or
28additions, the distributor or importing distributor shall have
29deemed to have complied with the deficiency as set forth in the
30notice. The notice provisions of this section shall not apply if

1the reason for termination, cancellation or nonrenewal is
2insolvency, assignment for the benefit of creditors, bankruptcy,
3liquidation, fraudulent conduct in its dealings with the
4manufacturer, revocation or suspension for more than a thirty
5(30) day period of the importing distributor or distributor
6license.

7(20) Interference with Transfer of License, Business or
8Franchise. (i) For any manufacturer to interfere with or prevent
9any distributor or importing distributor from selling or
10transferring his license, business or franchise, whether before
11or after notice of modification, cancellation, termination,
12rescission or nonrenewal has been given, provided the proposed
13purchaser of the business of the distributor or importing
14distributor meets the material qualifications and standards
15required of the manufacturers other distributors or importing
16distributors; (ii) if the proposed transfer of the distributor
17or importing distributor's business is to a surviving spouse or
18adult child, the manufacturer shall not, for any reason,
19interfere with, or prevent, the transfer of the distributor or
20importing distributor's license, business or franchise. Any
21subsequent transfer by surviving spouse or adult child shall
22thereafter be subject to the provisions of subclause (i) above.

23(21) Inducing or Coercing Distributors or Importing
24Distributors to Accept Unordered Products or Commit Illegal
25Acts. For any manufacturer to compel or attempt to compel any
26distributor or importing distributor to accept delivery of any
27malt or brewed beverages or any other commodity which shall not
28have been ordered by the distributor or importing distributor,
29or to do any illegal act by any means whatsoever including, but
30not limited to, threatening to amend, cancel, terminate, rescind

1or refuse to renew any agreement existing between manufacturer
2and the distributor or importing distributor, or to require a
3distributor or importing distributor to assent to any condition,
4stipulation or provision limiting the distributor or importing
5distributor in his right to sell the products of any other
6manufacturer.

7Section 28. Section 492.1 of the act, amended January 6,
82006 (P.L.1, No.1) and December 22, 2011 (P.L.530, No.113), is
9amended to read:

10Section 492.1. Hours of Operation Relative to Manufacturers,
11Importing Distributors and Distributors.--(a) Manufacturers may
12sell or deliver malt or brewed beverages between two o'clock
13antemeridian of any Monday and twelve o'clock midnight of the
14following Saturday.

15(b) (1) Importing distributors and distributors may sell or
16deliver malt or brewed beverages between two o'clock
17antemeridian of any Monday and twelve o'clock midnight of the
18following Saturday to holders of a liquor or malt and brewed
19beverage license or permit issued by the board.

20(2) Importing distributors and distributors may sell or
21deliver malt or brewed beverages between eight o'clock
22antemeridian and [eleven o'clock postmeridian of any] two 
23o'clock antemeridian of the following day, except Sunday, to
24persons not licensed or permitted by this act.

25(c) In addition to the hours authorized under subsections
26(a) and (b), manufacturers, importing distributors and
27distributors, upon purchasing a permit from the board at an
28annual fee of one hundred dollars ($100), may sell malt or
29brewed beverages to persons not licensed under this act or to a
30holder of a special occasion permit on Sunday between the hours

1of nine o'clock antemeridian and [nine o'clock postmeridian] two 
2o'clock antemeridian on Monday.

3(d) In addition to the hours authorized under subsections
4(a) and (b), delivery or receiving of malt or brewed beverages
5shall be permissible on Sunday after prior arrangement in
6accordance with the following:

7(1) A manufacturer may, at any time, deliver to any
8importing distributor or distributor to which the manufacturer
9has granted wholesale distribution rights for the manufacturer's
10product.

11(2) An importing distributor or distributor may deliver to
12any organization to which a special occasion permit has been
13issued between the hours of nine o'clock antemeridian and twelve
14o'clock noon.

15(3) An importing distributor or distributor may deliver to
16persons not licensed under this act between the hours of nine
17o'clock antemeridian and twelve o'clock noon.

18(e) Notwithstanding any provision of this section to the
19contrary, a brewery pub operating under section 446 shall be
20subject to the hours of operation set forth by the board through
21regulation.

22(f) The term "prior arrangement" shall mean that malt or
23brewed beverages having a total sale price, excluding any
24deposits or credits, exceeding two hundred fifty dollars ($250)
25have been ordered, invoiced and paid for in full at the seller's
26licensed premises before the Sunday of delivery.

27Section 29. Section 493 of the act, amended December 7, 1990
28(P.L.622, No.160), October 5, 1994 (P.L.537, No.80), June 18,
291998 (P.L.664, No.86), February 21, 2002 (P.L.103, No.10),
30December 9, 2002 (P.L.1653, No.212), May 8, 2003 (P.L.1, No.1),

1December 8, 2004 (P.L.1810, No.239), July 6, 2005 (P.L.135,
2No.39), January 6, 2006 (P.L.1, No.1), July 7, 2006 (P.L.584,
3No.84), November 29, 2006 (P.L.1421, No.155), July 16, 2007
4(P.L.107, No.34), June 28, 2011 (P.L.55, No.11), December 22,
52011 (P.L.530, No.113) and July 5, 2012 (P.L.1007, No.116), is
6amended to read:

7Section 493. Unlawful Acts Relative to Liquor, Malt and
8Brewed Beverages and Licensees.--The term "licensee," when used
9in this section, shall mean those persons licensed under [the
10provisions of Article IV] Article III-A or this article, unless
11the context clearly indicates otherwise.

12It shall be unlawful--

13(1) Furnishing Liquor or Malt or Brewed Beverages to Certain
14Persons. For any licensee or the board, or any employe, servant
15or agent of such licensee or of the board, or any other person,
16to sell, furnish or give any liquor or malt or brewed beverages,
17or to permit any liquor or malt or brewed beverages to be sold,
18furnished or given, to any person visibly intoxicated, or to any
19minor: Provided further, That notwithstanding any other
20provision of law, no cause of action will exist against a
21licensee or the board or any employe, servant or agent of such
22licensee or the board for selling, furnishing or giving any
23liquor or malt or brewed beverages or permitting any liquor or
24malt or brewed beverages to be sold, furnished or given to any
25insane person, any habitual drunkard or person of known
26intemperate habits unless the person sold, furnished or given
27alcohol is visibly intoxicated or is a minor.

28(2) Purchase or Sale of Liquor or Malt or Brewed Beverages
29on Credit; Importing Distributors or Distributors Accepting
30Cash. For any licensee, his agent, servant or employe, to sell

1or offer to sell or purchase or receive any liquor or malt or
2brewed beverages except for cash, excepting credit extended by a
3hotel or club to a bona fide guest or member, or by railroad or
4pullman companies in dining, club or buffet cars to passengers,
5for consumption while enroute, holding authorized credit cards
6issued by railroad or railroad credit bureaus or by hotel,
7restaurant, retail dispenser eating place, club and public
8service licensees, importing distributors or distributors to
9customers not possessing a license under this article and
10holding credit cards issued in accordance with regulations of
11the board or credit cards issued by banking institutions subject
12to State or Federal regulation: Provided further, That nothing
13herein contained shall be construed to prohibit the use of
14checks or drafts drawn on a bank, banking institution, trust
15company or similar depository, organized and existing under the
16laws of the United States of America or the laws of any state,
17territory or possession thereof, in payment for any liquor or
18malt or brewed beverages if the purchaser is the payor of the
19check or draft and the licensee is the payee: Provided further,
20That notwithstanding any other provision of this act to the
21contrary, it shall be unlawful for an importing distributor or
22distributor to accept cash for payment of any malt or brewed
23beverages from anyone possessing a license issued under this
24article, except it shall be permissible for the importing
25distributor or distributor to accept wire transfers, credit 
26cards, money orders or cashiers' checks for payment of any malt
27or brewed beverages in addition to any other type of payment
28authorized by the board from anyone possessing a license under
29this article. No right of action shall exist to collect any
30claim for credit extended contrary to the provisions of this

1clause. Nothing herein contained shall prohibit a licensee from
2crediting to a purchaser the actual price charged for original
3containers returned by the original purchaser as a credit on any
4sale, or from refunding to any purchaser the amount paid by such
5purchaser for such containers or as a deposit on containers when
6title is retained by the vendor, if such original containers
7have been returned to the licensee. Nothing herein contained
8shall prohibit a manufacturer from extending usual and customary
9credit for liquor or malt or brewed beverages sold to customers
10or purchasers who live or maintain places of business outside of
11the Commonwealth of Pennsylvania, when the liquor or malt or
12brewed beverages so sold are actually transported and delivered
13to points outside of the Commonwealth: Provided, however, That
14as to all transactions affecting malt or brewed beverages to be
15resold or consumed within this Commonwealth, every licensee
16shall pay and shall require cash deposits on all returnable
17original containers and all such cash deposits shall be refunded
18upon return of the original containers.

19(4) Peddling Liquor or Malt or Brewed Beverages. For any
20person, to hawk or peddle any liquor or malt or brewed beverages
21in this Commonwealth.

22(5) Failure to Have Brands as Advertised. For any licensee,
23his servants, agents or employes, to advertise or hold out for
24sale any liquor or malt or brewed beverages by trade name or
25other designation which would indicate the manufacturer or place
26of production of the said liquor or malt or brewed beverages,
27unless he shall actually have on hand and for sale a sufficient
28quantity of the particular liquor or malt or brewed beverages so
29advertised to meet requirements to be normally expected as a
30result of such advertisement or offer.

1(6) Brand or Trade Name on Spigot. For any licensee, his
2agents, servants or employes, to furnish or serve any malt or
3brewed beverages from any faucet, spigot or other dispensing
4apparatus, unless the trade name or brand of the product served
5shall appear in full sight of the customer and in legible
6lettering upon such faucet, spigot or dispensing apparatus.

7(7) Alcoholic Strength on Label of Malt or Brewed Beverages.
8For any licensee, or his servants, agents or employes, to
9transport, sell, deliver or purchase any malt or brewed
10beverages upon which there shall appear a label or other
11informative data which refers to the alcoholic contents of the
12malt or brewed beverage in any terms other than as a percentage
13of alcohol by volume. This clause shall be construed to permit,
14but not to require, a manufacturer to designate upon the label
15or descriptive data the alcoholic content of malt or brewed
16beverages in percentage of alcohol by volume. This clause shall
17not be construed to prohibit a manufacturer from designating
18upon the label or descriptive data the alcoholic content of malt
19or brewed beverages intended for shipment into another state or
20territory, when the laws of such state or territory require that
21the alcoholic content of the malt or brewed beverage must be
22stated upon the package.

23(8) Advertisements on Labels Giving Alcoholic Content of
24Malt or Brewed Beverages. For any manufacturer or other
25licensee, or his servants, agents or employes, to issue, publish
26or post, or cause to be issued, published or posted, any
27advertisement of any malt or brewed beverage including a label
28which shall refer in any manner to the alcoholic strength of the
29malt or brewed beverage manufactured, sold or distributed by
30such licensees, or to use in any advertisement or label such

1words as "full strength," "extra strength," "high test," "high
2proof," "pre-war strength," or similar words or phrases, which
3would lead or induce a consumer to purchase a brand of malt or
4brewed beverage on the basis of its alcoholic content, or to use
5in or on any advertisement or label any numeral, unless
6adequately explained in type of the same size, prominence and
7color, or for any licensee to purchase, transport, sell or
8distribute any malt or brewed beverage advertised or labeled
9contrary to the provisions of this clause.

10(10) Entertainment on Licensed Premises (Except Clubs);
11Permits; Fees. For any licensee, his servants, agents or
12employes, except club licensees, public venue licensees or
13performing arts facility licensees, to permit in any licensed
14premises or in any place operated in connection therewith,
15dancing, theatricals or floor shows of any sort, or moving
16pictures other than television, or such as are exhibited through
17machines operated by patrons by the deposit of coins, which
18project pictures on a screen not exceeding in size twenty-four
19by thirty inches and which forms part of the machine, unless the
20licensee shall first have obtained from the board a special
21permit to provide such entertainment, or for any licensee, under
22any circumstances, to permit in any licensed premises or in any
23place operated in connection therewith any lewd, immoral or
24improper entertainment, regardless of whether a permit to
25provide entertainment has been obtained or not. The special
26permit may be used only during the hours when the sale of liquor
27or malt or brewed beverages is permitted, unless the licensee 
28holds an extended hours food license under section 499(b) which 
29license would allow the special permit to be used while the 
30establishment is open, and between eleven o'clock antemeridian

1on Sunday and two o'clock antemeridian on the following Monday,
2regardless of whether the licensee possesses a Sunday sales
3permit. The board shall have power to provide for the issue of
4such special permits, and to collect an annual fee for such
5permits as prescribed in section 614-A of the act of April 9,
61929 (P.L.177, No.175), known as "The Administrative Code of
71929." All such fees shall be paid into the State Stores Fund.
8No such permit shall be issued in any municipality which, by
9ordinance, prohibits amusements in licensed places. Any
10violation of this clause shall, in addition to the penalty
11herein provided, subject the licensee to suspension or
12revocation of his permit and his license.

13(11) Licensees Employed by Others. For any hotel, restaurant
14or club liquor licensee, or any malt or brewed beverage
15licensee, or any officer, servant, agent or employe of such
16licensee, to be at the same time employed, directly or
17indirectly, by any distributor, importing distributor,
18manufacturer, importer or vendor licensee or any out of State
19manufacturer. It shall also be unlawful for any distributor or
20importing distributor, or any officer, servant, agent or employe
21of such licensee, to be at the same time employed, directly or
22indirectly, by any other distributor, importing distributor,
23manufacturer, importer, vendor, out of State manufacturer, hotel
24restaurant, malt or brewed beverage licensee, or club liquor
25licensee. It shall also be unlawful for any manufacturer,
26importer, or vendor licensee, or any out of State manufacturer,
27or any officer, servant, agent or employe of such licensee or
28manufacturer, to be at the same time employed, directly or
29indirectly, by any hotel, restaurant or club liquor licensee or
30any malt or brewed beverage licensee or any distributor or

1importing distributor licensee. Nothing in this subsection shall
2be construed to prohibit a manufacturer or limited winery
3licensee, or any officer, servant, agent or employe of such
4licensee, to be employed at the same time by a hotel, restaurant
5or retail dispenser licensee if the hotel, restaurant or retail
6dispenser licensee is located at the manufacturer or limited
7winery premises pursuant to section 443. For the purposes of
8this subsection, an officer, servant, agent or employe of a
9licensee or manufacturer is an individual who has either an
10ownership interest in the licensee or manufacturer or who
11receives compensation for his or her work on behalf of the
12licensee or manufacturer.

13(12) Failure to Have Records on Premises. For any liquor
14licensee, or any importing distributor, distributor or retail
15dispenser, to fail to keep for a period of at least two years
16complete and truthful records covering the operation of his
17licensed business, particularly showing the date of all
18purchases of liquor and malt or brewed beverages, the actual
19price paid therefor, and the name of the vendor, including State
20Store receipts, or for any licensee, his servants, agents or
21employes, to refuse the board or an authorized employe of the
22board or the enforcement bureau access thereto or the
23opportunity to make copies of the same when the request is made
24during business hours. The records from the most recent six-
25month period must be maintained on the licensed premises. 
26Records for the remainder of the two-year period may be kept off 
27the licensed premises so long as the records are returned to the 
28licensed premises within twenty-four hours of a request by the 
29board or enforcement bureau. A licensee may remove the records 
30for the most recent six-month period from the licensed premises
 

1only for a lawful business purpose provided that they are 
2returned to the premises when that business is completed.

3(13) Retail Licensees Employing Minors. For any hotel,
4restaurant or club liquor licensee, or any retail dispenser, to
5employ or to permit any minor under the age of eighteen to serve
6any alcoholic beverages or to employ or permit any minor under
7the age of sixteen to render any service whatever in the
8licensed premises, nor shall any entertainer under the age of
9eighteen be employed or permitted to perform in any licensed
10premises in violation of the labor laws of this Commonwealth:
11Provided, That in accordance with board regulations minors
12between the ages of sixteen and eighteen may be employed to
13serve food, clear tables and perform other similar duties, not
14to include the dispensing or serving of alcoholic beverages. A
15ski resort, golf course or amusement park licensee may employ
16minors fourteen and fifteen years of age to perform duties in
17rooms or areas of the licensed premises; however, such minors
18may not perform duties in rooms or areas in which alcohol is
19being concurrently dispensed or served or in which alcohol is
20being concurrently stored in an unsecured manner.
21Notwithstanding any provisions of law to the contrary, a hotel,
22restaurant or club liquor licensee or any retail dispenser may
23allow students receiving instruction in a performing art to
24perform an exhibition if the students are not compensated and
25are under proper supervision. Written notice of the performance
26must be provided to the enforcement bureau prior to the
27performance.

28(14) Permitting Undesirable Persons or Minors to Frequent
29Premises. For any hotel, restaurant or club liquor licensee, or
30any retail dispenser, his servants, agents or employes, to

1permit persons of ill repute or prostitutes to frequent his
2licensed premises or any premises operated in connection
3therewith. Minors may only frequent licensed premises if: (a)
4they are accompanied by a parent; (b) they are accompanied by a
5legal guardian; (c) they are under proper supervision; (d) they
6are attending a social gathering; or (e) the hotel, restaurant
7or retail dispenser licensee has gross sales of food and
8nonalcoholic beverages equal to fifty per centum or more of its
9combined gross sale of both food and alcoholic beverages. If a
10minor is frequenting a hotel, restaurant or retail dispenser
11licensee under subsection (e), then the minor may not sit at the
12bar section of the premises, nor may any alcoholic beverages be
13served at the table or booth at which the said minor is seated
14unless said minor is with a parent, legal guardian or under
15proper supervision. Further, if a hotel, restaurant, club liquor
16licensee or retail dispenser is hosting a social gathering under
17subsection (d), then written notice at least forty-eight hours
18in advance of such gathering shall be given to the Bureau of
19Enforcement. If a minor is frequenting licensed premises with
20proper supervision under subsection (c), each supervisor can
21supervise up to twenty minors, except for premises located in
22cities of the first class, where each supervisor can supervise
23up to five minors. Notwithstanding any other provisions of this
24section, if the minors are on the premises as part of a school-
25endorsed function, then each supervisor can supervise fifty
26minors. Nothing in this clause shall be construed to make it
27unlawful for minors to frequent public venues or performing arts
28facilities.

29(15) Cashing Pay Roll, Public Assistance, Unemployment
30Compensation or Any Other Relief Checks. For any licensee or his

1servants, agents or employes to cash pay roll checks or to cash,
2receive, handle or negotiate in any way Public Assistance,
3Unemployment Compensation or any other relief checks.

4(16) Furnishing or Delivering Liquor or Malt or Brewed
5Beverages at Unlawful Hours. For any licensee, his servants,
6agents or employes, to give, furnish, trade, barter, serve or
7deliver any liquor or malt or brewed beverages to any person
8during hours or on days when the licensee is prohibited by this
9act from selling liquor or malt or brewed beverages.

10(17) Licensees, etc., Interested or Employed in
11Manufacturing or Sale of Equipment or Fixtures. For any
12licensee, or any officer, director, stockholder, servant, agent
13or employe of any licensee, to own any interest, directly or
14indirectly, in or be employed or engaged in any business which
15involves the manufacture or sale of any equipment, furnishings
16or fixtures to any hotel, restaurant or club licensees, or to
17any importing distributors, distributors or retail dispensers.
18Notwithstanding any other provision of this section or this act,
19licensees may sell glasses at not less than cost and to provide
20metal keg connectors and tap knobs to other licensees and to
21holders of special occasion permits.

22(20) (i) Retail Liquor and Retail Malt or Brewed Beverages
23Licensee's Inside Advertisements. For any retail liquor or
24retail malt or brewed beverages licensee, to display or permit
25the display in the show window or doorways of his licensed
26premises, any placard or sign advertising the brands of liquor
27or malt or brewed beverages, if the total display area of any
28such placard or sign advertising the product or products exceeds
29six hundred square inches. Nothing herein shall prohibit a
30licensee from displaying inside his licensed premises point of

1sale displays advertising brand names of products sold by him,
2other than a window or door display: Provided, That the total
3cost of all such point of sale advertising matter relating to
4any one brand shall not exceed the dollar amount set forth by
5the board through regulation. All such advertising material,
6including the window and door signs, may be furnished by a
7manufacturer, distributor or importing distributor. The
8restrictions on advertising set forth in subclause (ii) and in
9clauses (20.1) and (20.2) shall also apply to this subclause.

10(ii) Cooperative Advertising. No distributor or importing
11distributor, directly or indirectly, independent or otherwise,
12shall, except by prior written agreement, be required to
13participate with a manufacturer in the purchase of any
14advertising of a brand name product in any name, in any form,
15whether it be radio, television, newspaper, magazine or
16otherwise.

17(20.1) Manufacturer Shall Not Require Advertising. For a
18manufacturer to require a distributor or importing distributor
19to purchase any type of advertising.

20(20.2) Advertising Shall Be Ordered and Authorized in
21Advance. For any advertising to be done on behalf of a
22distributor or importing distributor which was not ordered and
23authorized in advance by the distributor or importing
24distributor.

25(21) Refusing The Right of Inspection. For any licensee, or
26his servants, agents or employes, to refuse the board or the
27enforcement bureau or any of their authorized employes the right
28to inspect completely the entire licensed premises at any time
29during which the premises are open for the transaction of
30business, or when patrons, guests or members are in that portion

1of the licensed premises wherein either liquor or malt or brewed
2beverages are sold.

3(22) Allowance or Rebate to Induce Purchases. For any
4licensee, or his servants, agents or employes, to offer, pay,
5make or allow, or for any licensee, or his servants, agents or
6employes, to solicit or receive any allowance or rebate, refunds
7or concessions, whether in the form of money or otherwise, to
8induce directly the purchase of liquor or malt or brewed
9beverages.

10(23) Money or Valuables Given to Employes to Influence
11Actions of Their Employers. For any licensee, or any agent,
12employe or representative of any licensee, to give or permit to
13be given, directly or indirectly, money or anything of
14substantial value, in an effort to induce agents, employes or
15representatives of customers or prospective customers to
16influence their employer or principal to purchase or contract to
17purchase liquor or malt or brewed beverages from the donor of
18such gift, or to influence such employers or principals to
19refrain from dealing or contracting to deal with other
20licensees.

21(24) (i) Things of Value Offered as Inducement. Except as
22provided in subclause (ii), for any licensee under the
23provisions of this article, or the board or any manufacturer, or
24any employe or agent of a manufacturer, licensee or of the
25board, to offer to give anything of value or to solicit or
26receive anything of value as a premium for the return of caps,
27stoppers, corks, stamps or labels taken from any bottle, case,
28barrel or package containing liquor or malt or brewed beverage,
29or to offer or give or solicit or receive anything of value as a
30premium or present to induce directly the purchase of liquor or

1malt or brewed beverage, or for any licensee, manufacturer or
2other person to offer or give to trade or consumer buyers any
3prize, premium, gift or other inducement to purchase liquor or
4malt or brewed beverages, except advertising novelties of
5nominal value which the board shall define. This section shall
6not prevent any manufacturer or any agent of a manufacturer from
7offering and honoring coupons which offer monetary rebates on
8purchases of wines and spirits through State [Liquor Stores]
9liquor stores or the holder of an enhanced restaurant liquor 
10license, enhanced distributor license, or purchases of malt or
11brewed beverages through distributors and importing distributors
12in accordance with conditions or regulations established by the
13board. The board or the holder of an enhanced restaurant liquor 
14license or enhanced distributor license may redeem coupons
15offered by a manufacturer or an agent of a manufacturer at the
16time of purchase. Coupons offered by a manufacturer or an agent
17of a manufacturer shall not be redeemed without proof of
18purchase. This section shall not apply to the return of any
19monies specifically deposited for the return of the original
20container to the owners thereof.

21(ii) Notwithstanding subclause (i) or any other provision of
22law, a holder of a restaurant license that is also approved to
23hold a slot machine license or a conditional slot machine
24license under 4 Pa.C.S. Part II (relating to gaming) may give
25liquor and malt or brewed beverages free of charge to any person
26actively engaged in playing a slot machine.

27(iii) Notwithstanding subclause (i) or any other provision
28of law, the holder of an enhanced license may establish and
29implement a consumer relations marketing program for the purpose
30of offering incentives, such as coupons or discounts on certain

1products, which may be conditioned on the purchase of liquor by
2its customers.

3(25) Employment in Licensed Places. For any licensee or his
4agent, to employ or permit the employment of any person at his
5licensed hotel, restaurant or eating place for the purpose of
6enticing customers, or to encourage them to drink liquor, or
7make assignations for improper purposes.

8Any person violating the provisions of this clause shall be
9guilty of a misdemeanor and, upon conviction of the same, shall
10be sentenced to pay a fine of not less than one hundred dollars
11($100), nor more than five hundred dollars ($500), for each and
12every person so employed, or undergo an imprisonment of not less
13than three (3) months, nor more than one (1) year, or either or
14both, at the discretion of the court having jurisdiction of the
15case. The administrative law judge shall have the power to
16revoke or refuse licenses for violation of this clause.

17(26) Worthless Checks. For any retail liquor licensee or any
18retail dispenser, distributor or importing distributor, to make,
19draw, utter, issue or deliver, or cause to be made, drawn,
20uttered, issued or delivered, any check, draft or similar order,
21for the payment of money in payment for any purchase of malt or
22brewed beverages, when such retail liquor licensee, retail
23dispenser, distributor or importing distributor, has not
24sufficient funds in, or credit with, such bank, banking
25institution, trust company or other depository, for the payment
26of such check. Any person who is a licensee under the provisions
27of this article, who shall receive in payment for malt or brewed
28beverages sold by him any check, draft or similar order for the
29payment of money, which is subsequently dishonored by the bank,
30banking institution, trust company or other depository, upon

1which drawn, for any reason whatsoever, shall, within five days
2of receipt of notice of such dishonor, notify by certified mail
3the person who presented the said worthless check, draft or
4similar order and the malt beverage compliance officer for the 
5board. If the violation of this clause involving a check, draft
6or similar order from the purchaser to the seller is
7subsequently honored within ten days from the day it was made,
8drawn, uttered, issued or delivered, then the malt beverage 
9compliance officer shall not turn the matter over to the 
10enforcement bureau for a citation.

11(27) Distributors and Importing Distributors Employing
12Minors. For any distributor or importing distributor to employ
13minors under the age of eighteen but persons eighteen and over
14may be employed to sell and deliver malt and brewed beverages. A 
15distributor holding an enhanced distributor license may employ a 
16minor at least eighteen years of age to sell wine, but a 
17distributor holding a wine and spirits retail license may not 
18employ a person under the age of twenty-one to sell liquor.

19(28) Consumption of Liquor or Malt or Brewed Beverages While
20Tending Bar. For any licensee, his servants, agents or employes,
21to consume liquor or malt or brewed beverages while tending bar
22or otherwise serving liquor or malt or brewed beverages. No
23action shall be taken against a licensee under this clause
24unless the licensee is the individual consuming liquor or malt
25or brewed beverages in violation of this clause.

26(30) Pyrotechnics Prohibited. For any licensee, his
27servants, agents or employes, except licensees where pyrotechnic
28displays are performed by a pyrotechnic operator licensed by the
29Bureau of Alcohol, Tobacco, Firearms and Explosives and are
30approved by a municipal fire official, to store, handle, use or

1display any pyrotechnics within a building on the licensed
2premises. For purposes of this clause, "pyrotechnics" shall mean
3any chemical mixture, including pyrotechnic compositions,
4intended to produce a visible or audible effect by combustion,
5deflagration or detonation as defined by section 1.5.52 of the
6National Fire Protection Association Standard 1126 entitled
7"Standard for the Use of Pyrotechnics before a Proximate
8Audience," 1992 Edition.

9(31) (i) Sale or Purchase of Controlled Substance or Drug
10Paraphernalia by Licensee. For any licensee to possess, furnish,
11sell, offer to sell, or purchase or receive, or aid and abet in
12the sale or purchase of any controlled substance or drug
13paraphernalia, as defined in the act of April 14, 1972 (P.L.233,
14No.64), known as "The Controlled Substance, Drug, Device and
15Cosmetic Act," on the licensed premises unless the actions of
16the licensee are authorized by law.

17(ii) Sale or Purchase of Controlled Substances or Drug
18Paraphernalia by Servant, Agent or Employe of the Licensee. For
19any servants, agents or employes of the licensee to possess,
20furnish, sell, offer to sell or purchase or receive, or aid and
21abet in the sale or purchase of any controlled substance or drug
22paraphernalia, as defined in "The Controlled Substance, Drug,
23Device and Cosmetic Act," on the licensed premises unless the
24actions of the person are authorized by law. The licensee shall
25only be cited for a violation of this subclause if the licensee
26knew or should have known of the activity and failed to take
27substantial affirmative steps to prevent the activity on its
28premises.

29(32) Sale or Purchase of Alcohol Vaporizing Devices. For any
30licensee, his servants or agents or employes to possess or to

1permit an alcohol vaporizing device on the licensed premises.

2(33) Off-premises Catering Permit; Fees. For any licensee, 
3his servants, agents or employes to sell alcohol at a location 
4other than its licensed premises, unless the sale is 
5specifically authorized under this act, or unless the licensee 
6receives a special permit from the board to do so. Only those 
7licensees holding a current and valid restaurant, hotel, brew 
8pub or eating place license shall be allowed to apply for such a 
9permit. Any licensee that wishes to obtain an off-premises 
10catering permit must notify the board and pay the permitting fee 
11by March of each calendar year regardless of whether the 
12licensee has scheduled catered events. Any licensee that fails 
13to notify the board and pay the permit fee by March 1 shall be 
14precluded from obtaining the permit for that calendar year. If a 
15licensee notifies the board and pays the permitting fee by March 
161 and does not then use the permit throughout the calendar year, 
17the licensee shall not be entitled to a return of the permitting 
18fee. Any licensee not granted a license until after March 1 of 
19the calendar year shall have sixty days from the date of the 
20license transfer to notify the board of the licensee's intention 
21to use an off-premises catering permit and pay the permitting 
22fee. All servers at the off-premises catered function shall be 
23certified under the board's responsible alcohol management 
24program as required under section 471.1. The board may charge a 
25fee of five hundred dollars ($500) each calendar year, to each 
26applicant for the initial permit associated with a particular 
27license, but no further fee shall be charged for any subsequent 
28permits issued to the applicant for the license during the same 
29calendar year. The applicant shall submit written notice to the 
30board thirty days prior to each catered event, unless this time
 

1frame has been waived by the board, and the board may approve or 
2disapprove each event if the applicant fails to provide timely 
3notice of the catered function, does not intend to conduct a 
4function that meets the requirements of this act or has 
5previously conducted a function that did not meet the 
6requirements of this act. The fees shall be paid into the State 
7Stores Fund. Any violation of this act or the board's 
8regulations for governing activity occurring under the authority 
9of this permit may be the basis for the issuance of a citation 
10under section 471, the nonrenewal of the license under section 
11470 or the refusal by the board to issue subsequent permits or 
12honor subsequent dates on the existing permit. This penalty 
13shall be in addition to any other remedies available to the 
14enforcement bureau or the board.

15(34) Noise. Notwithstanding any law or regulation to the 
16contrary, a licensee may not use or permit to be used inside or 
17outside of the licensed premises a loudspeaker or similar device 
18whereby the sound of music or other entertainment, or the 
19advertisement thereof, can be heard beyond the licensee's 
20property line; however, any licensee that is located in an area 
21which is subject to an exemption from the board's regulation 
22regarding amplified music being heard off the licensed premises 
23shall be exempt from compliance with this paragraph until the 
24expiration of the board's order granting the exemption. The 
25board's regulation regarding amplified music being heard off the 
26licensed premises is otherwise superseded by this paragraph.

27(35) Sale of wine received by direct shipment. For any
28licensee to sell or offer to sell wine purchased or acquired
29from a direct wine shipper pursuant to the authority of section
30488.

1(36) Duties performed by distributors and importing
2distributors. For any licensee to require that a distributor or
3importing distributor stock merchandise in the licensee's
4cooler, rotate the licensee's stock of malt or brewed beverages,
5set up displays in the licensee's premises or pay any type of
6fee required for making the distributor's product available on
7the licensee's store shelves. This clause supersedes a contrary
8provision of a contract.

9Section 30. The act is amended by adding a section to read:

10Section 493.2. Unlawful Acts Relative to Enhanced
11Licensees.--(a) It is unlawful for an enhanced licensee, or an
12employe, servant or agent of the licensee or another person to
13sell, furnish or give liquor or malt or brewed beverages or to
14permit liquor or malt or brewed beverages to be sold, furnished
15or given to a minor or person who is visibly intoxicated.

16(b) An enhanced licensee who violates the provisions of
17subsection (a) is subject to the penalty provisions set forth in
18section 471.

19Section 31. Section 494 of the act, amended April 29, 1994
20(P.L.212, No.30) and November 10, 1999 (P.L.514, No.47), is
21amended to read:

22Section 494. Penalties.--(a) Any person who shall violate
23any of the provisions of this article, except as otherwise
24specifically provided, shall be guilty of a misdemeanor and,
25upon conviction thereof, shall be sentenced to pay a fine of not
26less than one hundred dollars ($100), nor more than five hundred
27dollars ($500), and on failure to pay such fine, to imprisonment
28for not less than one month, nor more than three months, and for
29any subsequent offense, shall be sentenced to pay a fine not
30less than three hundred dollars ($300), nor more than five

1hundred dollars ($500), and to undergo imprisonment for a period
2not less than three months, nor more than one year, or both. If
3the person, at or relating to the licensed premises, violates
4section 493(1), (10), (14), (16) or (21), or if the owner or
5operator of the licensed premises or any authorized agent of the
6owner or operator violates the act of April 14, 1972 (P.L.233,
7No.64), known as "The Controlled Substance, Drug, Device and
8Cosmetic Act," or 18 Pa.C.S. § 5902 (relating to prostitution
9and related offenses) or 6301 (relating to corruption of
10minors), he shall be sentenced to pay a fine not exceeding [five
11thousand dollars ($5,000)] ten thousand dollars ($10,000) or to
12undergo imprisonment for a period not less than [three] six
13months, nor more than [one year] two years, or both.

14(b) The right to suspend and revoke licenses granted under
15this article shall be in addition to the penalty set forth in
16this section.

17(c) A person convicted of selling or offering to sell any
18liquor or malt or brewed beverage without being licensed is in
19violation of this article and shall, in addition to any other
20penalty prescribed by law, be sentenced to pay a fine of two
21dollars ($2) per fluid ounce for each container of malt or
22brewed beverages and four dollars ($4) per fluid ounce for each
23container of wine or liquor found on the premises where the sale
24was made or attempted. The amount of fine per container will be
25based upon the capacity of the container when full, whether or
26not it is full at the time of the sale or attempted sale. In
27addition, all malt or brewed beverages, wine and liquor found on
28the premises shall be confiscated. If a person fails to pay the
29full amount of the fine levied under this subsection, the
30premises on which the malt or brewed beverages, wine or liquor

1was found shall be subject to a lien in the amount of the unpaid
2fine if the premises are owned by the person against whom the
3fine was levied or by any other person who had knowledge of the
4proscribed activity. The lien shall be superior to any other
5liens on the premises other than a duly recorded mortgage.

6Section 32. Section 499 of the act, added or amended October
75, 1994 (P.L.522, No.77) and February 21, 2002 (P.L.103, No.10),
8is amended to read:

9Section 499. Premises to be Vacated by Patrons.--(a) Except
10as provided for elsewhere in this section, all patrons of a
11licensee shall be required to leave that part of the premises
12habitually used for the serving of liquor or malt or brewed
13beverages to guests or patrons not later than one-half hour
14after the time the licensee is required by this act to cease
15serving liquor or malt or brewed beverages and shall not be
16permitted to have any previously served liquor or malt or brewed
17beverages in their possession, nor shall they be permitted to
18remove any previously served liquor or malt or brewed beverages
19from that part of the premises. Patrons of a licensee shall not
20be permitted to reenter that portion of the premises habitually
21used for the serving of liquor or malt or brewed beverages
22between the time designated by this act for patrons to vacate
23the licensed premises and the time designated by this act when
24the serving of liquor or malt or brewed beverages is allowed to
25begin unless the licensee has been granted a permit for extended
26hours food service.

27(a.1) Subsection (a) shall not apply to sales of malt and
28brewed beverages for consumption off the premises when the
29following conditions are met:

30(1) no licensee may sell malt or brewed beverages in excess

1of one hundred ninety-two fluid ounces in any one sale for
2consumption off the premises unless the licensee possesses a 
3thirty-pack permit under this article;

4(2) sales and service of malt and brewed beverages for
5consumption off the premises are made prior to the designated
6time the licensee is required by this act to cease serving
7liquor, malt or brewed beverages;

8(3) persons who have purchased malt and brewed beverages for
9consumption off the premises shall remove the malt and brewed
10beverages from the premises by the designated time as contained
11in this act that patrons are required to vacate the premises;

12(4) no club licensee may sell any malt or brewed beverage
13for consumption off the premises where sold or to any persons
14who are not members of the club.

15(b) A licensee may remain open between the hours of two
16o'clock antemeridian and seven o'clock antemeridian for the
17purpose of serving food on any day if such licensee either
18possesses or is eligible to purchase a Sunday sales permit and
19receives an extended hours food license. The board shall
20establish an annual fee for the extended hours food license
21which shall not exceed fifty dollars ($50).

22(b.1) Upon application of any club, the board shall issue a
23club extended hours food permit for a period of six (6) days
24during the term of its license. The board shall issue
25regulations governing terms of the application. The permits
26shall be used solely for the purpose of serving food between the
27hours of three o'clock antemeridian and seven o'clock
28antemeridian. All patrons of a licensee shall be required to
29leave that part of the premises habitually used for the serving
30of liquor or malt or brewed beverages to guests or patrons not

1later than one-half hour after the time the licensee is required
2by this act to cease serving liquor or malt or brewed beverages
3and shall not be permitted to have any previously served liquor
4or malt or brewed beverages in their possession, nor shall they
5be permitted to remove any previously served liquor or malt or
6brewed beverages from that part of the premises.

7(c) Any licensee who violates this section for the first
8offense commits a summary offense and shall, upon conviction, be
9sentenced to pay a fine of not more than three hundred dollars
10($300) or to imprisonment for not more than ninety (90) days, or
11both, and for the second or any subsequent offense commits a
12misdemeanor of the third degree and shall, upon conviction, be
13sentenced to pay a fine of not more than two thousand five
14hundred dollars ($2,500) or to imprisonment for not more than
15one (1) year, or both.

16(d) This section shall not apply to holders of public
17service licenses.

18(e) Nothing in this section shall prohibit restaurant
19liquor, eating place retail dispenser or hotel licenses from
20being open seven o'clock ante meridian on Sunday until two
21o'clock ante meridian Monday for the purpose of serving food and
22nonalcoholic beverages.

23Section 33. Section 505.2 of the act, amended December 8,
242004 (P.L.1810, No.239), July 16, 2007 (P.L.107, No.34), June
2525, 2010 (P.L.217, No.35), June 28, 2011 (P.L.55, No.11) and
26December 22, 2011 (P.L.530, No.113), is amended to read:

27Section 505.2. Limited Wineries.--(a) [In the interest of
28promoting tourism and recreational development in Pennsylvania,
29holders] Holders of a limited winery license may:

30(1) Produce alcoholic ciders, wines and wine coolers,

1subject to the exceptions provided under this section[, only
2from an agricultural commodity grown in Pennsylvania].

3(2) Sell alcoholic cider, wine and wine coolers produced by
4the limited winery or purchased in bulk in bond from another
5[Pennsylvania] limited winery on the licensed premises, under
6such conditions and regulations as the board may enforce, to the
7board, to enhanced restaurant liquor licensees, to individuals
8and to brewery, hotel, restaurant, club and public service
9liquor licensees, and to [Pennsylvania] winery licensees, and to 
10distributors that also hold an enhanced distributor license 
11under section 431.2: Provided, That a limited winery shall not,
12in any calendar year, purchase alcoholic cider or wine produced
13by other limited wineries in an amount in excess of fifty per
14centum of the alcoholic cider or wine produced by the purchasing
15limited winery in the preceding calendar year. In addition, the
16holder of a limited winery license may purchase wine in bottles
17from another [Pennsylvania] limited winery if these wines
18undergo a second fermentation process. Such wine may be sold in
19bottles bearing the purchasing limited winery's label or the
20producing limited winery's label. [Such wines, if sold by the
21board, may be sold by the producing limited winery to the
22purchasing limited winery at a price lower than the price
23charged by the board.]

24(3) Separately or in conjunction with other limited
25wineries, sell alcoholic cider, wine and wine coolers produced
26by the limited winery on no more than five (5) board-approved
27locations other than the licensed premises, with no bottling or
28production requirement at those additional board-approved
29locations and under such conditions and regulations as the board
30may enforce, to the board, enhanced restaurant liquor licensees,

1to individuals and to brewery, hotel, restaurant, club and
2public service liquor licensees, and to distributors that also 
3hold an enhanced distributor license. If two or more limited
4wineries apply to operate an additional board-approved location
5in conjunction with each other, the wineries need only have one
6board-approved manager for the location, need only pay one
7application fee and need not designate specific or distinct
8areas for each winery's licensed area. Each limited winery must
9file an application for such an additional board-approved
10location, and such location shall count as one of the five
11permitted for each limited winery. Each limited winery is
12responsible for keeping only its own complete records. A limited
13winery may be cited for a violation of the recordkeeping
14requirements of sections 512 and 513 pertaining to its own
15records only.

16(3.1) Notwithstanding any other provision of law, only ship
17wine to residents of this Commonwealth in accordance with the
18provisions of section 488, and a sale to a licensee of the board
19must take place on the licensed premises of the limited winery.
20Only a limited winery that applies for and acquires a wine and
21spirits wholesale license may ship or deliver wine sold to a
22licensee of the board.

23(4) At the discretion of the board, obtain a special permit
24to participate in alcoholic cider, wine and food expositions off
25the licensed premises. A special permit shall be issued upon
26proper application and payment of a fee of thirty dollars ($30)
27per day for each day of permitted use, not to exceed thirty (30)
28consecutive days. The total number of days for all the special
29permits may not exceed one hundred (100) days in any calendar
30year. A special permit shall entitle the holder to engage in the

1sale by the glass, by the bottle or in case lots of alcoholic
2cider or wine produced by the permittee under the authority of a
3limited winery license. Holders of special permits may provide
4tasting samples of wines in individual portions not to exceed
5one fluid ounce. Samples at alcoholic cider, wine and food
6expositions may be sold or offered free of charge. Except as
7provided herein, limited wineries utilizing special permits
8shall be governed by all applicable provisions of this act as
9well as by all applicable regulations or conditions adopted by
10the board.

11For the purposes of this clause, "alcoholic cider, wine and
12food expositions" are defined as affairs held indoors or
13outdoors with the intent of [promoting Pennsylvania products by]
14educating those in attendance of the availability, nature and
15quality of [Pennsylvania-produced] alcoholic ciders and wines in
16conjunction with suitable food displays, demonstrations and
17sales. Alcoholic cider, wine and food expositions may also
18include activities other than alcoholic cider, wine and food
19displays, including arts and crafts, musical activities,
20cultural exhibits, agricultural exhibits and farmers markets.

21(4.1) At the discretion of the board, obtain a farmers
22market permit. The permit shall entitle the holder to
23participate in more than one farmers market at any given time
24and an unlimited number throughout the year and sell alcoholic
25cider or wine produced under the authority of the underlying
26limited winery license by the bottle or in case lots. Samples
27not to exceed one fluid once per brand of wine may be offered
28free of charge. A farmers market permit shall be issued upon
29proper application and payment of an annual fee of two hundred
30fifty dollars ($250). A permit holder may participate in more

1than one farmers market at any given time. Sales by permit
2holders shall take place during the standard hours of operation
3of the farmers market. Written notice of the date, times and
4location the permit is to be used shall be provided by the
5permit holder to the enforcement bureau at least two (2) weeks
6prior to the event. Except as provided in this subsection,
7limited wineries utilizing farmers market permits shall be
8governed by all applicable provisions of this act as well as by
9all applicable regulations adopted by the board.

10(5) Apply for and hold a hotel liquor license, a restaurant
11liquor license or a malt and brewed beverages retail license to
12sell for consumption at the restaurant or limited winery on the
13licensed winery premises, liquor, wine and malt or brewed
14beverages regardless of the place of manufacture under the same
15conditions and regulations as any other hotel liquor license,
16restaurant liquor license or malt and brewed beverages retail
17license.

18(6) [(i) Secure a permit from the board to allow the holder
19of a limited winery license to use up to twenty-five per centum
20permitted fruit, not wine, in the current year's production.
21Each permit is valid only for the calendar year in which it is
22issued.

23(ii) The fee for a permit to import and use permitted fruit
24shall be in an amount to be determined by the board.

25(iii) The purpose of this section is to increase the
26productivity of limited wineries while at the same time
27protecting the integrity and unique characteristics of wine
28produced from fruit primarily grown in this Commonwealth.
29Prevailing climatic conditions have a significant impact on the
30character of the fruit. Accordingly, "permitted fruit" shall

1mean fruit grown or juice derived from fruit grown within three
2hundred fifty (350) miles of the winery.

3(iv) The department is authorized to promulgate regulations
4requiring the filing of periodic reports by limited wineries to
5ensure compliance with the provisions of this section.] 
6(Reserved).

7(6.1) Sell food for consumption on or off the licensed
8premises and at the limited winery's additional board-approved
9locations and sell by the glass, at the licensed premises and at
10the limited winery's additional board-approved locations, only
11wine and alcoholic ciders that may otherwise be sold by the
12bottle.

13(6.2) Sell wine- or liquor-scented candles acquired or
14produced by the limited winery.

15(6.3) Sell alcoholic cider, wine and wine coolers only
16between the hours of nine o'clock antemeridian and eleven
17o'clock postmeridian. A limited winery also may request approval
18from the board to extend sales hours in individual locations at
19other times during the year or beyond the limits set forth in
20this clause. The request shall be made in writing to the board's
21Office of the Chief Counsel and shall detail the exact locations
22where sales hours are proposed to be extended, the proposed
23hours and dates of extended operation and the reason for the
24proposed extended hours.

25(6.4) Store alcoholic cider, wine and wine coolers produced
26by the limited winery at no more than two (2) board-approved
27locations other than the licensed premises and those premises
28referenced in clause (3) pertaining to the five (5) board-
29approved locations for the sale of wine, with no bottling or
30production requirement at those additional locations and under

1such conditions and regulations as the board may enforce. If two
2(2) or more businesses will operate out of the same storage
3facility, the limited winery must designate specific and
4distinct areas for its storage. The limited winery's designated
5storage area must be secured and no one other than the licensee
6and his employees may be allowed access to the storage area. No
7board-approved manager will be necessary for the storage
8facility. The limited winery must fill out an application for
9such an additional board-approved storage location, and such
10location shall count as one of the two permitted for each
11limited winery. The limited winery is responsible for keeping
12only its own complete records. A limited winery may be cited for
13a violation of the recordkeeping requirements of sections 512
14and 513 pertaining to its own records only.

15(b) The total production of alcoholic ciders, wine and wine
16coolers by a limited winery may not exceed two hundred thousand
17(200,000) gallons per year.

18(c) As used in this section:

19"Agricultural commodity" shall include any of the following:
20agricultural, apicultural, horticultural, silvicultural and
21viticultural commodities.

22"Farmers market" shall include any building, structure or
23other place:

24(1) owned, leased or otherwise in the possession of a
25person, municipal corporation or public or private organization;

26(2) used or intended to be used by two or more farmers or an
27association of farmers, who are certified by the Department of
28Agriculture of the Commonwealth to participate in the Farmers'
29Market Nutrition Program subject to 7 CFR Pt. 249 (relating to
30Senior Farmers' Market Nutrition Program (SFMNP)), for the

1purpose of selling agricultural commodities produced in this
2Commonwealth directly to consumers;

3(3) which is physically located within this Commonwealth;
4and

5(4) which is not open for business more than twelve hours
6each day.

7Section 34. Section 505.4 of the act, amended December 22,
82011 (P.L.530, No.113), is amended to read:

9Section 505.4. Distilleries.--(a) The board may issue a
10distillery of historical significance license to any distillery
11which was established prior to January 1, 1875. The holder of
12the license may manufacture and sell liquor produced on the
13licensed premises to the board, to enhanced licensees and 
14wholesale distributing licensees, to other entities licensed by
15the board and to the public under such conditions and
16regulations as the board may enforce. Production at the
17distillery of historical significance shall be limited to an
18amount not to exceed twenty thousand (20,000) gallons per year.
19The distillery does not need to establish continuous operation
20since January 1, 1875, in order to qualify for a license under
21this section.

22(b) (1) The board may issue a limited distillery license 
23that will allow the holder thereof to operate a distillery that 
24shall not exceed production of one hundred thousand (100,000) 
25gallons of distilled liquor per year. The holder of the license 
26may manufacture and sell bottled liquors produced on the 
27licensed premises to the board, to enhanced licensees and 
28wholesale distributing licensees, to other entities licensed by 
29the board and to the public between the hours of nine o'clock 
30antemeridian and eleven o'clock postmeridian so long as a
 

1specific code of distilled liquor which is listed for sale as a 
2stock item by the board in State liquor stores may not be 
3offered for sale at a licensed limited distillery location at a 
4price which is lower than that charged by the board and under 
5such conditions and regulations as the board may enforce.

6(2) (i) The holder of a limited distillery license may, 
7separately or in conjunction with other limited distillery 
8licensees, sell bottled liquors produced by the distillery at no 
9more than two (2) board-approved locations other than the 
10licensed premises, with no bottling or production requirement at 
11those additional board-approved locations and under such 
12conditions and regulations as the board may enforce to the 
13board, to individuals and to entities licensed by the board.

14(ii) If two (2) or more limited distilleries apply to
15operate an additional board-approved location in conjunction
16with each other, the distilleries need only have one (1) board-
17approved manager for the location, need only pay one application
18fee and need not designate specific or distinct areas for each
19distillery's licensed area. A limited distillery must file an
20application for the additional board-approved location, and that
21location shall count as one (1) of the two (2) permitted for
22each limited distillery. A limited distillery is responsible for
23keeping only its own complete records. A limited distillery may
24be cited for a violation of the recordkeeping requirements of
25sections 512 and 513 pertaining to its own records only.

26(3) The holder of a limited distillery license may apply for
27and hold a hotel liquor license, a restaurant liquor license or
28a malt and brewed beverages retail license to sell for
29consumption at the restaurant or limited distillery on the
30licensed distillery premises liquor, wine and malt or brewed

1beverages regardless of the place of manufacture under the same
2conditions and regulations as any other hotel liquor license,
3restaurant liquor license or malt and brewed beverages retail
4license.

5(4) The holder of a limited distillery license may sell food 
6for consumption on or off the licensed premises and at the 
7limited distillery's additional board-approved locations, and 
8may sell by the glass, at the licensed premises and at the 
9limited distillery's additional board-approved locations, only 
10liquor that may otherwise be sold by the bottle.

11(5) The holder of a limited distillery license may provide
12tasting samples of liquor that in total do not exceed one and
13one-half (1.5) fluid ounces per person on the licensed premises
14and at the two (2) board-approved locations. Samples may be sold
15or provided free of charge and may only be provided between the
16hours of nine o'clock antemeridian and eleven o'clock
17postmeridian.

18(6) The fee for the limited distillery license shall be in
19an amount to be determined by the board but shall not exceed one
20thousand five hundred dollars ($1,500).

21(7) The board may issue to the holder of a distillery 
22license a limited distillery license in exchange for the 
23distillery license provided that the applicant has not 
24manufactured more than one hundred thousand (100,000) gallons of 
25distilled liquor in the prior calendar year. The board may not 
26charge a fee for this exchange. An applicant under this 
27subsection shall surrender his distillery license for 
28cancellation prior to the issuance of the new limited distillery 
29license. The authority of the board to exchange a distillery 
30license for a limited distillery license under this subsection
 

1and this subsection shall expire December 31, 2012.

2(c) (1) The holder of a distillery license as issued under
3section 505 may sell bottled liquors produced on the licensed
4premises to the board, to enhanced licensees and other entities
5licensed by the board and to the public between the hours of
6nine o'clock antemeridian and eleven o'clock postmeridian so
7long as a specific code of distilled liquor which is listed for
8sale as a stock item by the board in State liquor stores may not
9be offered for sale at a licensed distillery location at a price
10which is lower than that charged by the board and under such
11conditions and regulations as the board may enforce.

12(2) The holder of a distillery license as issued under
13section 505 may provide tasting samples of liquor that in total
14do not exceed one and one-half (1.5) fluid ounces. Samples may
15be sold or provided free of charge between the hours of nine
16o'clock antemeridian and eleven o'clock postmeridian.

17(d) Notwithstanding any other provision of law, a sale by a
18distillery of historical significance, limited distillery or
19distillery to a licensee of the board must take place on the
20licensed distillery premises. Only a distillery authorized under
21this section that applies for and acquires a wine and spirits
22wholesale license may ship or deliver wine sold to a licensee of
23the board.

24Section 35. Section 508 of the act, amended April 29, 1994
25(P.L.212, No.30), is amended to read:

26Section 508. License Fees.--(a) The annual fee for every
27license issued to a limited winery or a winery shall be as
28prescribed in section 614-A of the act of April 9, 1929
29(P.L.177, No.175), known as "The Administrative Code of 1929."
30The fee for every license issued to a distillery (manufacturer)

1shall be as prescribed in section 614-A of "The Administrative
2Code of 1929." The annual fee for all other licenses shall be as
3prescribed in section 614-A of "The Administrative Code of
41929." An applicant for renewal of a license issued under this 
5article shall file a written application with the board together 
6with an application surcharge of seven hundred dollars ($700).
7Whenever any checks issued in payment of filing and/or license
8fees shall be returned to the board as dishonored, the board
9shall charge a fee of five dollars ($5.00) per hundred dollars
10or fractional part thereof, plus all protest fees, to the maker
11of such check submitted to the board. Failure to make full
12payment or pay the face amount of the check in full and all
13charges thereon as herein required within ten days after demand
14has been made by the board upon the maker of the check, the
15license of such person shall not be renewed for the license
16period or validated for any interim period for such year.

17(b) For the purpose of this section, the term "proof gallon" 
18shall mean a gallon liquid which contains one-half its volume of 
19alcohol of a specific gravity of seven thousand nine hundred 
20thirty-nine ten thousandths (.7939) at sixty degrees Fahrenheit.

21Section 36. The act is amended by adding an article to read:

22ARTICLE VIII-A

23EMERGENCY STATE TAX

24Section 801-A. Definitions.

25The following words and phrases when used in this article
26shall have the meanings given to them in this section unless the
27context clearly indicates otherwise:

28"Department." The Department of Revenue of the Commonwealth.

29"Fiscal month." The monthly period established by the board
30for the purpose of conducting the board's business.

1"Taxable liquor." As follows:

2(1) Any of the following which contain more than one-
3half of one percent of alcohol by volume:

4(i) An alcoholic, spirituous, vinous, fermented or
5other alcoholic beverage.

6(ii) A combination of liquors and mixed liquor, a
7part of which is spirituous, vinous, fermented or
8otherwise alcoholic.

9(iii) A drink or drinkable liquid, preparation or
10mixture intended for beverage purposes.

11(2) The term shall not include alcohol and malt or
12brewed beverages.

13Section 802-A. Tax.

14(a) Imposition.--An emergency State tax is imposed and
15assessed at the rate of 18% of the net price of all taxable
16liquor sold by the board or a wine and spirits wholesale
17licensee.

18(b) Collection.--The tax imposed under subsection (a) shall
19be collected by the board or the wine and spirits wholesale
20licensee from the purchasers of the taxable liquor from the
21board or the wine and spirits wholesale licensee.

22(c) Disposition.--The tax collected under subsection (b)
23shall be paid into the State Treasury, through the department,
24as provided under this article and shall be credited to the
25General Fund.

26Section 803-A. Transmittal.

27(a) Duty.--Except as provided under subsection (b), the
28board or the wine and spirits wholesale licensee shall, on or
29before the 15th day of each calendar month, do all of the
30following:

1(1) Transmit to the department all of the following:

2(i) A statement of its receipts from sales of
3taxable liquor and taxes collected during the preceding
4fiscal month.

5(ii) Information necessary to effectuate this
6article.

7(2) Pay to the department the tax imposed under section
8802-A(a).

9(b) Exception.--The following shall apply:

10(1) The board or a wine and spirits wholesale licensee
11may add the tax imposed under section 802-A(a) to the
12wholesale and retail price at which taxable liquor is sold
13and eliminate any accounting of the tax separate from sale
14prices.

15(2) If the board or the wine and spirits wholesale
16licensee adds the tax as provided under paragraph (1), the
17amount of the tax for a calendar month shall be calculated by
18dividing the entire gross receipts derived from sales at
19Pennsylvania Liquor Stores or at wholesale licensees during
20the month by six and five-ninths and the quotient shall be
21the amount of the tax for the month payable as provided under
22this section.

23Section 37. Repeals are as follows:

24(1) The General Assembly declares that the repeal under
25paragraph (2) is necessary to effectuate the addition of
26Article VIII-A of the act.

27(2) The act of June 9, 1936 (Sp. Sess., P.L.13, No.4),
28entitled, as reenacted and amended, "An act imposing an
29emergency State tax on liquor, as herein defined, sold by the
30Pennsylvania Liquor Control Board; providing for the

1collection and payment of such tax; and imposing duties upon
2the Department of Revenue and the Pennsylvania Liquor Control
3Board," is repealed.

4Section 38. This act shall take effect immediately.