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PRINTER'S NO. 513
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
15
Session of
2015
INTRODUCED BY BREWSTER, YUDICHAK, TEPLITZ, FONTANA, HUGHES,
FARNESE, TARTAGLIONE, BLAKE, COSTA, LEACH, SCHWANK, WILLIAMS,
SMITH, WOZNIAK, HAYWOOD, KITCHEN, DINNIMAN, WILEY AND
BOSCOLA, FEBRUARY 25, 2015
REFERRED TO LAW AND JUSTICE, FEBRUARY 25, 2015
AN ACT
Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
reenacted, "An act relating to alcoholic liquors, alcohol and
malt and brewed beverages; amending, revising, consolidating
and changing the laws relating thereto; regulating and
restricting the manufacture, purchase, sale, possession,
consumption, importation, transportation, furnishing, holding
in bond, holding in storage, traffic in and use of alcoholic
liquors, alcohol and malt and brewed beverages and the
persons engaged or employed therein; defining the powers and
duties of the Pennsylvania Liquor Control Board; providing
for the establishment and operation of State liquor stores,
for the payment of certain license fees to the respective
municipalities and townships, for the abatement of certain
nuisances and, in certain cases, for search and seizure
without warrant; prescribing penalties and forfeitures;
providing for local option, and repealing existing laws," in
preliminary provisions, further providing for definitions; in
Pennsylvania Liquor Control Board, further providing for
general powers of board; in Pennsylvania Liquor Stores,
further providing for board to establish State liquor stores,
for when sales may be made at Pennsylvania Liquor Stores, and
for sales by Pennsylvania Liquor Stores; and, in licenses and
regulations and liquor and alcohol and malt and brewed
beverages, further providing for authority to issue liquor
licenses to hotels, restaurants and clubs, for sale of malt
or brewed beverages by liquor licensees, for malt and brewed
beverages manufacturers', distributors' and importing
distributors' licenses, for distributors' and importing
distributors' restrictions on sales, storage, etc., for
retail dispensers' restrictions on purchases and sales and
for shipment of wine into Commonwealth, providing for direct
shipment of wine and for unlawful acts relative to liquor,
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malt and brewed beverages and licensees and for premises to
be vacated by patrons.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "distributor," "holiday,"
"importing distributor" and "retail dispenser" in section 102 of
the act of April 12, 1951 (P.L.90, No.21), known as the Liquor
Code, reenacted and amended June 29, 1987 (P.L.32, No.14) and
amended or added May 31, 1996 (P.L.312, No.49) and December 8,
2004 (P.L.1810, No.239), are amended to read:
Section 102. Definitions.--The following words or phrases,
unless the context clearly indicates otherwise, shall have the
meanings ascribed to them in this section:
* * *
"Distributor" shall mean any person licensed by the board to
engage in the purchase only from Pennsylvania manufacturers and
from importing distributors and the resale of malt or brewed
beverages, except to importing distributors and distributors, in
the original sealed containers as prepared for the market by the
manufacturer at the place of manufacture, but not for
consumption on the premises where sold, and in quantities of not
less than a case or original containers containing one hundred
twenty-eight ounces or more, or as provided in section 431(g),
which may be sold separately.
* * *
"Holiday" shall mean the first day of January, commonly known
as New Year's Day; [the third Monday of January, known as Dr.
Martin Luther King, Jr., Day; the third Monday in February,
known as Presidents' Day; the last Monday in May, known as
Memorial Day;] the fourth day of July, known as Independence
Day; [the first Monday of September, known as Labor Day;] the
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fourth Thursday in November, known as Thanksgiving Day; and the
twenty-fifth day of December, known as Christmas Day.
* * *
"Importing distributor" shall mean any person licensed by the
board to engage in the purchase from manufacturers and other
persons located outside this Commonwealth and from persons
licensed as manufacturers of malt or brewed beverages and
importing distributors under this act, and the resale of malt or
brewed beverages in the original sealed containers as prepared
for the market by the manufacturer at the place of manufacture,
but not for consumption on the premises where sold, and in
quantities of not less than a case or original containers
containing one hundred twenty-eight ounces or more, or as
provided in section 431(g), which may be sold separately.
* * *
"Retail dispenser" shall mean any person licensed to engage
in the retail sale of malt or brewed beverages for consumption
on the premises of such licensee, with the privilege of selling
malt or brewed beverages in quantities not in excess of [one
hundred ninety-two fluid ounces in a single sale to one person]
three hundred eighty-four ounces in not more than twenty-four
original containers in a single sale to one person as provided
in section 407, provided the licensee may not sell a package as
prepared for sale or distribution by the manufacturer containing
more than twelve containers, to be carried from the premises by
the purchaser thereof.
* * *
Section 2. Section 207(a) and (b) of the act, amended
November 30, 2004 (P.L.727, No.221) and December 8, 2004
(P.L.1810, No.239), are amended and the section is amended by
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adding subsections to read:
Section 207. General Powers of Board.--Under this act, the
board shall have the power and its duty shall be:
(a) To buy, import or have in its possession for sale and
sell liquor, alcohol, corkscrews, wine and liquor accessories,
trade publications, gift cards, gift certificates, wine- or
liquor-scented candles and wine glasses in the manner set forth
in this act: Provided, however, That all purchases shall be made
subject to the approval of the State Treasurer, or his
designated deputy. The board shall buy liquor and alcohol at the
lowest price and in the greatest variety reasonably obtainable.
Such sales and purchases may be to or from persons or entities
located both in and outside this Commonwealth.
(b) To control the manufacture, possession, sale,
consumption, importation, use, storage, transportation and
delivery of liquor, alcohol and malt or brewed beverages in
accordance with the provisions of this act, and to fix the
wholesale and retail prices at which liquors and alcohol shall
be sold at Pennsylvania Liquor Stores. Prices shall be
[proportional with prices paid by the board to its suppliers and
shall reflect any advantage obtained through volume purchases by
the board. The board may establish a preferential price
structure for wines produced within this Commonwealth for the
promotion of such wines, as long as the price structure is
uniform within each class of wine purchased by the board.] as
set forth by the board so long as the price of a particular item
is uniform throughout this Commonwealth. The board shall require
each Pennsylvania manufacturer and each nonresident manufacturer
of liquors, other than wine, selling such liquors to the board,
which are not manufactured in this Commonwealth, to make
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application for and be granted a permit by the board before such
liquors not manufactured in this Commonwealth shall be purchased
from such manufacturer. Each such manufacturer shall pay for
such permit a fee which, in the case of a manufacturer of this
Commonwealth, shall be equal to that required to be paid, if
any, by a manufacturer or wholesaler of the state, territory or
country of origin of the liquors, for selling liquors
manufactured in Pennsylvania, and in the case of a nonresident
manufacturer, shall be equal to that required to be paid, if
any, in such state, territory or country by Pennsylvania
manufacturers doing business in such state, territory or
country. In the event that any such manufacturer shall, in the
opinion of the board, sell or attempt to sell liquors to the
board through another person for the purpose of evading this
provision relating to permits, the board shall require such
person, before purchasing liquors from him or it, to take out a
permit and pay the same fee as hereinbefore required to be paid
by such manufacturer. All permit fees so collected shall be paid
into the State Stores Fund. The board shall not purchase any
alcohol or liquor fermented, distilled, rectified, compounded or
bottled in any state, territory or country, the laws of which
result in prohibiting the importation therein of alcohol or
liquor, fermented, distilled, rectified, compounded or bottled
in Pennsylvania.
* * *
(l) Notwithstanding any other provision of law to the
contrary, to enter into agreements with governmental units of
this Commonwealth and other states, for the purchase or sale of
goods and services with, from or to the governmental units. This
authority includes, but is not limited to, the purchase or sale
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of alcohol.
(m) To be licensed as a lottery sales agent, as set forth in
section 305 of the act of August 26, 1971 (P.L.351, No.91),
known as the "State Lottery Law," and to take any actions
authorized by such designation, except that no bond, insurance
or indemnification may be required from the board.
(n) To establish and implement a customer relations
management program for the purpose of offering incentives, such
as coupons or discounts on certain products, to unlicensed
customers of the board.
Section 3. Section 301 of the act is amended to read:
Section 301. Board to Establish State Liquor Stores.--(a)
The board shall establish, operate and maintain at such places
throughout the Commonwealth as it shall deem essential and
advisable, stores to be known as "Pennsylvania Liquor Stores,"
for the sale of liquor and alcohol in accordance with the
provisions of and the regulations made under this act; except
that no store not so already located shall be located within
three hundred feet of any elementary or secondary school, nor
within a dry municipality without there first having been a
referendum approving such location. When the board shall have
determined upon the location of a liquor store in any
municipality, it shall give notice of such location by public
advertisement in two newspapers of general circulation. In
cities of the first class, the location shall also be posted for
a period of at least fifteen days following its determination by
the board as required in section 403(g) of this act. The notice
shall be posted in a conspicuous place on the outside of the
premises in which the proposed store is to operate or, in the
event that a new structure is to be built in a similarly visible
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location. If, within five days after the appearance of such
advertisement, or of the last day upon which the notice was
posted, fifteen or more taxpayers residing within a quarter of a
mile of such location, or the City Solicitor of the city of the
first class, shall file a protest with the court of common pleas
of the county averring that the location is objectionable
because of its proximity to a church, a school, or to private
residences, the court shall forthwith hold a hearing affording
an opportunity to the protestants and to the board to present
evidence. The court shall render its decision immediately upon
the conclusion of the testimony and from the decision there
shall be no appeal. If the court shall determine that the
proposed location is undesirable for the reasons set forth in
the protest, the board shall abandon it and find another
location. Notwithstanding any other provision of law to the
contrary, the board may operate and maintain stores located in
commercial locations. The board may make decisions to relocate
and lease stores in more convenient and consumer-heavy areas,
after consumer trends and market trends are analyzed by the
board. The board may work with private persons or entities,
consistent with the requirements of this section and under such
conditions and regulations as the board may enforce, to operate
and maintain stores in areas where the board concludes a store
is needed to meet consumer demand. The board may establish,
operate and maintain such establishments for storing and testing
liquors as it shall deem expedient to carry out its powers and
duties under this act.
(b) The board may lease the necessary premises for such
stores or establishments, but all such leases shall be made
through the Department of General Services as agent of the
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board. Notwithstanding any other provision of law to the
contrary, the Department of General Services shall have no more
than ninety days from the date the board officially approves a
lease recommendation to send the final lease packet to the
appropriate agencies for further processing. The Department of
General Services shall be required to submit quarterly reports
to the chairman and minority chairman of the Law and Justice
Committee of the Senate and the chairman and minority chairman
of the Liquor Control Committee of the House of Representatives
indicating the number of lease recommendations approved by the
board during the preceding quarter and whether the corresponding
final lease packets were sent to the appropriate agencies within
the ninety-day deadline. If the Department of General Services
fails to regularly submit these quarterly reports or fails to
regularly meet the ninety-day deadline imposed by this
subsection, then the General Assembly may consider legislation
that would allow the board to lease premises for its stores
without the involvement of the Department of General Services.
The board, through the Department of General Services, shall
have authority to purchase such equipment and appointments as
may be required in the operation of such stores or
establishments.
Section 4. Section 304 of the act, amended December 8, 2004
(P.L.1810, No.239), is amended to read:
Section 304. When Sales May Be Made at Pennsylvania Liquor
Stores.--(a) Except as provided for in subsection (b), every
Pennsylvania Liquor Store shall be open for business week days,
except holidays as that term is defined in section 102. The
board may, with the approval of the Governor, temporarily close
any store in any municipality.
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(b) Certain Pennsylvania Liquor Stores operated by the board
[shall] may be open for Sunday retail sales between the hours of
[noon] nine o'clock antemeridian and [five] nine o'clock
postmeridian, except that no Sunday sales shall occur on Easter
Sunday or Christmas day. The board shall open [up to twenty-five
per centum of the total number of Pennsylvania Liquor Stores at
its discretion], at its discretion, as many Pennsylvania Liquor
Stores as it deems necessary for Sunday sales as provided for in
this subsection. The board shall submit yearly reports to the
Appropriations and the Law and Justice Committees of the Senate
and the Appropriations and the Liquor Control Committees of the
House of Representatives summarizing the total dollar value of
sales under this section.
Section 5. Section 305(a) and (b) of the act, amended May 8,
2003 (P.L.1, No.1) and July 6, 2005 (P.L.135, No.39), are
amended and the section is amended by adding a subsection to
read:
Section 305. Sales by Pennsylvania Liquor Stores.--(a) The
board shall in its discretion determine where and what classes,
varieties and brands of liquor and alcohol it shall make
available to the public and where such liquor and alcohol will
be sold. Every Pennsylvania Liquor Store shall be authorized to
sell combination packages. If a person desires to purchase a
class, variety or brand of liquor or alcohol not currently
available from the board, he or she may place a special order
for such item so long as the order is for two or more bottles.
The board may require a reasonable deposit from the purchaser as
a condition for accepting the order. The customer shall be
notified immediately upon the arrival of the goods.
In computing the retail price of such special orders for
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liquor or alcohol, the board shall not include the cost of
freight or shipping before applying [the] a mark-up, which shall
not exceed ten per centum of the cost of the product, and taxes
but shall add the freight or shipping charges to the price after
the mark-up and taxes have been applied.
Unless the customer pays for and accepts delivery of any such
special order within ten days after notice of arrival, the store
may place it in stock for general sale and the customer's
deposit shall be forfeited.
(b) Every Pennsylvania Liquor Store shall sell liquors at
wholesale to hotels, restaurants, clubs, and railroad, pullman
and steamship companies licensed under this act; and, under the
regulations of the board, to pharmacists duly licensed and
registered under the laws of the Commonwealth, and to
manufacturing pharmacists, and to reputable hospitals approved
by the board, or chemists. Sales to licensees shall be made at a
price that includes a discount of [ten] sixteen per centum from
the retail price. The board may sell to registered pharmacists
only such liquors as conform to the Pharmacopoeia of the United
States, the National Formulary, or the American Homeopathic
Pharmacopoeia. The board may sell at special prices under the
regulations of the board, to United States Armed Forces
facilities which are located on United States Armed Forces
installations and are conducted pursuant to the authority and
regulations of the United States Armed Forces. All other sales
by such stores shall be at retail[.], except that incentives,
such as coupons or discounts on certain products, may be offered
to unlicensed customers of the board as provided for under
sections 207(n) and 493(24)(iii). A person entitled to purchase
liquor at wholesale prices may purchase the liquor at any
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Pennsylvania Liquor Store upon tendering cash, check or credit
card for the full amount of the purchase. For this purpose, the
board shall issue a discount card to each licensee identifying
such licensee as a person authorized to purchase liquor at
wholesale prices. Such discount card shall be retained by the
licensee. The board may contract through the Commonwealth
bidding process for delivery to wholesale licensees at the
expense of the licensee receiving the delivery.
* * *
(j) If the board becomes a licensed lottery sales agent, as
set forth in section 305 of the act of August 26, 1971 (P.L.351,
No.91), known as the "State Lottery Law," then the following
shall apply, notwithstanding the provisions of the "State
Lottery Law":
(i) The Secretary of Revenue shall permit the board to
operate and maintain Pennsylvania lottery instant ticket vending
machines, player-activated terminals and technologies or systems
subsequently approved by the Department of Revenue for the self-
service sale of lottery tickets and games in Pennsylvania Liquor
Stores. The board and the Secretary of Revenue shall mutually
agree upon the number and location of the stores authorized to
conduct self-service sales of lottery tickets and games.
(ii) The board shall not be required to post any type of
bond prior to conducting self-service sales of lottery tickets
and games.
(iii) Any commissions, compensation or any type of incentive
award based upon the sale of lottery tickets and games shall be
deposited by the board into the State Stores Fund.
Section 6. Section 401(a) of the act, amended December 22,
2011 (P.L.530, No.113), is amended to read:
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Section 401. Authority to Issue Liquor Licenses to Hotels,
Restaurants and Clubs.--(a) Subject to the provisions of this
act and regulations promulgated under this act, the board shall
have authority to issue a retail liquor license for any premises
kept or operated by a hotel, restaurant or club and specified in
the license entitling the hotel, restaurant or club to purchase
liquor from a Pennsylvania Liquor Store and to keep on the
premises such liquor and, subject to the provisions of this act
and the regulations made thereunder, to sell the same and also
malt or brewed beverages to guests, patrons or members for
consumption on the hotel, restaurant or club premises. Such
licensees, other than clubs, shall be permitted to sell malt or
brewed beverages for consumption off the premises where sold in
quantities of not more than [one hundred ninety-two fluid ounces
in a single sale to one person as provided for in section 407.]
three hundred eighty-four ounces in not more than twenty-four
original containers in a single sale to one person as provided
for in section 407, provided the licensee may not sell a package
as prepared for sale or distribution by the manufacturer
containing more than twelve containers. Such licenses shall be
known as hotel liquor licenses, restaurant liquor licenses and
club liquor licenses, respectively. No person who holds any
public office that involves the duty to enforce any of the penal
laws of the United States, this Commonwealth or of any political
subdivision of this Commonwealth may have any interest in a
hotel or restaurant liquor license. This prohibition applies to
anyone with arrest authority, including, but not limited to,
United States attorneys, State attorneys general, district
attorneys, sheriffs and police officers. This prohibition shall
also apply to magisterial district judges, judges or any other
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individuals who can impose a criminal sentence. This prohibition
does not apply to members of the General Assembly, township
supervisors, city councilpersons, mayors without arrest
authority and any other public official who does not have the
ability to arrest or the ability to impose a criminal sentence.
This section does not apply if the proposed premises are located
outside the jurisdiction of the individual in question.
* * *
Section 7. Section 407(a) of the act, amended June 28, 2011
(P.L.55, No.11), is amended to read:
Section 407. Sale of Malt or Brewed Beverages by Liquor
Licensees.--(a) Every liquor license issued to a hotel,
restaurant, club, or a railroad, pullman or steamship company
under this subdivision (A) for the sale of liquor shall
authorize the licensee to sell malt or brewed beverages at the
same places but subject to the same restrictions and penalties
as apply to sales of liquor, except that licensees other than
clubs may sell malt or brewed beverages for consumption off the
premises where sold in quantities of not more than [one hundred
ninety-two fluid ounces in a single sale to one person.] three
hundred eighty-four ounces in not more than twenty-four original
containers in a single sale to one person, provided the licensee
may not sell a package as prepared for sale or distribution by
the manufacturer containing more than twelve containers. The
sales may be made in either open or closed containers, Provided,
however, That a municipality may adopt an ordinance restricting
open containers in public places. No licensee under this
subdivision (A) shall at the same time be the holder of any
other class of license, except a retail dispenser's license
authorizing the sale of malt or brewed beverages only.
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* * *
Section 8. Section 431(b) of the act, amended December 8,
2004 (P.L.1810, No.239), is amended and the section is amended
by adding a subsection to read:
Section 431. Malt and Brewed Beverages Manufacturers',
Distributors' and Importing Distributors' Licenses.--* * *
(b) The board shall issue to any reputable person who
applies therefor, and pays the license fee hereinafter
prescribed, a distributor's or importing distributor's license
for the place which such person desires to maintain for the sale
of malt or brewed beverages, not for consumption on the premises
where sold, and except as provided for under subsection (g), in
quantities of not less than a case or original containers
containing one hundred twenty-eight ounces or more which may be
sold separately as prepared for the market by the manufacturer
at the place of manufacture. The board shall have the discretion
to refuse a license to any person or to any corporation,
partnership or association if such person, or any officer or
director of such corporation, or any member or partner of such
partnership or association shall have been convicted or found
guilty of a felony within a period of five years immediately
preceding the date of application for the said license: And
provided further, That, in the case of any new license or the
transfer of any license to a new location, the board may, in its
discretion, grant or refuse such new license or transfer if such
place proposed to be licensed is within three hundred feet of
any church, hospital, charitable institution, school or public
playground, or if such new license or transfer is applied for a
place which is within two hundred feet of any other premises
which is licensed by the board: And provided further, That the
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board shall refuse any application for a new license or the
transfer of any license to a new location if, in the board's
opinion, such new license or transfer would be detrimental to
the welfare, health, peace and morals of the inhabitants of the
neighborhood within a radius of five hundred feet of the place
proposed to be licensed. The board shall refuse any application
for a new license or the transfer of any license to a location
where the sale of liquid fuels or oil is conducted. The board
may enter into an agreement with the applicant concerning
additional restrictions on the license in question. If the board
and the applicant enter into such an agreement, such agreement
shall be binding on the applicant. Failure by the applicant to
adhere to the agreement will be sufficient cause to form the
basis for a citation under section 471 and for the nonrenewal of
the license under section 470. If the board enters into an
agreement with an applicant concerning additional restrictions,
those restrictions shall be binding on subsequent holders of the
license until the license is transferred to a new location or
until the board enters into a subsequent agreement removing
those restrictions. If the application in question involves a
location previously licensed by the board, then any restrictions
imposed by the board on the previous license at that location
shall be binding on the applicant unless the board enters into a
new agreement rescinding those restrictions. The board shall
require notice to be posted on the property or premises upon
which the licensee or proposed licensee will engage in sales of
malt or brewed beverages. This notice shall be similar to the
notice required of hotel, restaurant and club liquor licensees.
Except as hereinafter provided, such license shall authorize
the holder thereof to sell or deliver malt or brewed beverages
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in quantities above specified anywhere within the Commonwealth
of Pennsylvania, which, in the case of distributors, have been
purchased only from persons licensed under this act as
manufacturers or importing distributors, and in the case of
importing distributors, have been purchased from manufacturers
or persons outside this Commonwealth engaged in the legal sale
of malt or brewed beverages or from manufacturers or importing
distributors licensed under this article. In the case of an
importing distributor, the holder of such a license shall be
authorized to store and repackage malt or brewed beverages owned
by a manufacturer at a segregated portion of a warehouse or
other storage facility authorized by section 441(d) and operated
by the importing distributor within its appointed territory and
deliver such beverages to another importing distributor who has
been granted distribution rights by the manufacturer as provided
herein. The importing distributor shall be permitted to receive
a fee from the manufacturer for any related storage, repackaging
or delivery services. In the case of a bailee for hire hired by
a manufacturer, the holder of such a permit shall be authorized:
to receive, store and repackage malt or brewed beverages
produced by that manufacturer for sale by that manufacturer to
importing distributors to whom that manufacturer has given
distribution rights pursuant to this subsection or to purchasers
outside this Commonwealth for delivery outside this
Commonwealth; or to ship to that manufacturer's storage
facilities outside this Commonwealth. The bailee for hire shall
be permitted to receive a fee from the manufacturer for any
related storage, repackaging or delivery services. The bailee
for hire shall, as required in Article V of this act, keep
complete and accurate records of all transactions, inventory,
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receipts and shipments and make all records and the licensed
areas available for inspection by the board and for the
Pennsylvania State Police, Bureau of Liquor Control Enforcement,
during normal business hours.
Each out of State manufacturer of malt or brewed beverages
whose products are sold and delivered in this Commonwealth shall
give distributing rights for such products in designated
geographical areas to specific importing distributors, and such
importing distributor shall not sell or deliver malt or brewed
beverages manufactured by the out of State manufacturer to any
person issued a license under the provisions of this act whose
licensed premises are not located within the geographical area
for which he has been given distributing rights by such
manufacturer. Should a licensee accept the delivery of such malt
or brewed beverages in violation of this section, said licensee
shall be subject to a suspension of his license for at least
thirty days: Provided, That the importing distributor holding
such distributing rights for such product shall not sell or
deliver the same to another importing distributor without first
having entered into a written agreement with the said secondary
importing distributor setting forth the terms and conditions
under which such products are to be resold within the territory
granted to the primary importing distributor by the
manufacturer.
When a Pennsylvania manufacturer of malt or brewed beverages
licensed under this article names or constitutes a distributor
or importing distributor as the primary or original supplier of
his product, he shall also designate the specific geographical
area for which the said distributor or importing distributor is
given distributing rights, and such distributor or importing
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distributor shall not sell or deliver the products of such
manufacturer to any person issued a license under the provisions
of this act whose licensed premises are not located within the
geographical area for which distributing rights have been given
to the distributor and importing distributor by the said
manufacturer: Provided, That the importing distributor holding
such distributing rights for such product shall not sell or
deliver the same to another importing distributor without first
having entered into a written agreement with the said secondary
importing distributor setting forth the terms and conditions
under which such products are to be resold within the territory
granted to the primary importing distributor by the
manufacturer. Nothing herein contained shall be construed to
prevent any manufacturer from authorizing the importing
distributor holding the distributing rights for a designated
geographical area from selling the products of such manufacturer
to another importing distributor also holding distributing
rights from the same manufacturer for another geographical area,
providing such authority be contained in writing and a copy
thereof be given to each of the importing distributors so
affected.
* * *
(g) (1) In addition to being able to sell in case
quantities as provided under subsection (b), a distributor or
importing distributor may break the bulk of a case and sell
units of any case in quantities of not less than forty-two
ounces, provided the distributor or importing distributor sells
a package as prepared for sale by the manufacturer.
(2) Before a distributor or importing distributor breaks the
bulk of a case for the purpose of selling units, the distributor
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or importing distributor shall inspect the case for damage and
appropriate production date. When the distributor or importing
distributor breaks the bulk of a case for the purpose of selling
units of the case, the distributor or importing distributor
bears the risk of loss and is responsible for the destruction of
any malt and brewed beverages that violate the manufacturer's
specifications relating to sales by a certain date or within a
number of days of the production date.
(3) The term "unit" as used in this subsection means an
undamaged bottle or can from a case.
Section 9. Section 441(a) and (b) of the act, amended June
18, 1998 (P.L.664, No.86) and December 9, 2002 (P.L.1653,
No.212), are amended to read:
Section 441. Distributors' and Importing Distributors'
Restrictions on Sales, Storage, Etc.--(a) No distributor or
importing distributor shall purchase, receive or resell any malt
or brewed beverages except:
(1) in the original containers as prepared for the market by
the manufacturer at the place of manufacture;
(2) in the case of identical containers repackaged in the
manner described by subsection (f); or
(3) as provided in section 431(b) and (g).
(b) [No] Except as provided for in section 431(g), no
distributor or importing distributor shall sell any malt or
brewed beverages in quantities of less than a case or original
containers containing one hundred twenty-eight ounces or more
which may be sold separately: Provided, That no malt or brewed
beverages sold or delivered shall be consumed upon the premises
of the distributor or importing distributor, or in any place
provided for such purpose by such distributor or importing
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distributor. Notwithstanding any other provision of this section
or act, malt or brewed beverages which are part of a tasting
conducted pursuant to the board's regulations may be consumed on
licensed premises.
* * *
Section 10. Section 442(a)(1) of the act, amended June 28,
2011 (P.L.55, No.11), is amended to read:
Section 442. Retail Dispensers' Restrictions on Purchases
and Sales.--(a) (1) No retail dispenser shall purchase or
receive any malt or brewed beverages except in original
containers as prepared for the market by the manufacturer at the
place of manufacture. The retail dispenser may thereafter break
the bulk upon the licensed premises and sell or dispense the
same for consumption on or off the premises so licensed. No
retail dispenser may sell malt or brewed beverages for
consumption off the premises in quantities in excess of [one
hundred ninety-two fluid ounces.] three hundred eighty-four
ounces in not more than twenty-four original containers in a
single sale to one person as provided in section 407, provided
the licensee may not sell a package as prepared for sale or
distribution by the manufacturer containing more than twelve
containers. Sales may be made in open or closed containers,
Provided, however, That a municipality may adopt an ordinance
restricting open containers in public places. No club licensee
may sell any malt or brewed beverages for consumption off the
premises where sold or to persons not members of the club.
* * *
Section 11. Section 488 of the act, added February 21, 2002
(P.L.103, No.10), is amended to read:
Section 488. Shipment of Wine [into Commonwealth.--(a) The
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shipment of wine from out-of-State to residents of this
Commonwealth is prohibited, except as otherwise provided for in
this section.] to Pennsylvania Liquor Stores.--
(b) Notwithstanding any other provision of this act or law
to the contrary, a person licensed by another state as a
producer, supplier, importer, wholesaler, distributor or
retailer of wine and who obtains a [direct wine shipper] direct-
to-store wine shipper license as provided for in this section
may ship up to nine liters per month of any wine [not included
on the list provided for in subsection (c)] on the [Internet]
order of any resident of this Commonwealth who is at least
twenty-one (21) years of age for such resident's personal use
and not for resale.
[(c) Each month, the board shall publish on the Internet a
list of all classes, varieties and brands of wine available for
sale in the Pennsylvania Liquor Stores. A person holding a
direct shipper license may ship only those classes, varieties
and brands of wine not included on the list at the time an
Internet order is placed.]
(d) [An out-of-State] A direct-to-store wine shipper shall:
(1) Not ship more than nine liters per month on the Internet
order of any person in this Commonwealth.
(2) Report to the board each year the total amount of wine
shipped [into this Commonwealth] to Pennsylvania Liquor Stores
in the preceding calendar year.
(3) Permit the board, the enforcement bureau or the
Secretary of Revenue, or their designated representatives, to
perform an audit of the [out-of-State] direct-to-store wine
shipper's records upon request.
(4) Be deemed to have submitted to the jurisdiction of the
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board, any other State agency and the courts of this
Commonwealth for purposes of enforcement of this section and any
related laws, rules or regulations.
(e) A [direct] direct-to-store wine shipper may ship wine on
the [Internet] order of a resident into this Commonwealth
provided that the wine is shipped to a Pennsylvania Liquor Store
selected by the resident. The wine will be subject to taxes in
the same manner as wine sold directly by the board. The wine
will not be released by the State store until all moneys due,
including all taxes and fees, have been paid by the resident.
(f) A person shall sign an affidavit provided by the
Pennsylvania Liquor Store where the wine was delivered to
stating that the wine will only be used for the person's
personal use. Any person who resells wine obtained under this
section commits a misdemeanor of the second degree.
(g) The board may promulgate such rules and regulations as
are necessary to implement and enforce the provisions of this
section. The board may charge the resident a fee to cover the
cost associated with processing the [Internet] order.
(h) The board shall submit [monthly] annual reports to the
Appropriations Committee and the Law and Justice Committee of
the Senate and to the Appropriations Committee and the Liquor
Control Committee of the House of Representatives summarizing
the number of [direct] direct-to-store wine shipper licenses
issued by the board, the quantity of wine sold and shipped by
direct-to-store wine shipper licensees pursuant to this section
and the total dollar value of sales under this section.
(i) The term "wine" as used in this section shall mean
liquor which is fermented from [grapes and other fruits, having
alcoholic content of twenty-four per centum or less. The term
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"wine" shall not include malt or brewed beverages nor shall wine
include any products containing alcohol derived from malt,
grain, cereal, molasses or cactus] an agricultural commodity as
that term is defined in section 505.2(c).
Section 12. The act is amended by adding a section to read:
Section 489. Direct Shipment of Wine.--(a) Notwithstanding
any other provision of law, a person licensed by the board or
another state as a producer of wine, and who obtains a license
as provided for in this section, may ship up to eighteen liters
per month of any wine on the order of any resident of this
Commonwealth who is at least twenty-one years of age for such
resident's personal use and not for resale.
(b) Prior to issuing such a license, the board shall require
the person seeking the license to:
(1) File an application with the board.
(2) Pay a registration fee of one hundred dollars ($100).
(3) Provide to the board a copy of the applicant's current
alcoholic beverage license issued by the board or another state,
if applicable.
(4) Provide documentation to the board which evidences that
the applicant has obtained a sales tax license from the
Department of Revenue.
(5) Obtain a tax bond, in the amount of one thousand dollars
($1,000), such that if the licensee does not pay the taxes
imposed under this section when due, the surety of the bond
shall pay all taxes and any related penalties, and any interest
that may be due or become due.
(6) Provide the board with any other information that the
board deems necessary and appropriate.
(c) The licensee shall:
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(1) Require proof of age of the recipient, in a manner or
format approved by the board, before any wine is shipped to a
resident of this Commonwealth.
(2) Ensure that all boxes or exterior containers of wine
shipped directly to a resident of this Commonwealth are
conspicuously labeled with the words "CONTAINS ALCOHOL:
SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR
DELIVERY."
(3) Ensure that shipments shall be delivered by an entity
holding a valid transporter-for-hire license issued by the board
and that such transporter-for-hire shall not deliver any wine
unless it does all of the following:
(i) Obtains the signature of the recipient of the wine upon
delivery.
(ii) Verifies by inspecting a valid form of photo
identification, as provided for in section 495(a), that the
recipient is at least twenty-one (21) years of age.
(iii) Determines that the recipient is not visibly
intoxicated at the time of delivery.
(4) On a quarterly basis, remit to the Department of Revenue
all taxes due on sales to residents of this Commonwealth.
(5) Permit the board, the enforcement bureau or the
Secretary of Revenue, or their designated representatives, to
perform an audit of the licensee's records upon request.
(6) Be deemed to have submitted to the jurisdiction of the
board, any other State agency and the courts of this
Commonwealth for purposes of enforcement of this section and any
related laws, rules or regulations, including the collection and
remission of taxes as required under this section.
(7) Annually renew its license by paying a renewal fee
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established by the board and report to the board, at the time of
renewal, the total amount of wine shipped to residents of this
Commonwealth in the preceding calendar year.
(d) Wine delivered under the authority of this section is
subject to the sales and use tax imposed by section 202 of the
act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform
Code of 1971," the sales and use tax imposed by Article XXXI-B
of the act of July 28, 1953 (P.L.723, No.230), known as the
"Second Class County Code," the sales and use tax imposed by the
act of February 12, 2004 (P.L.73, No.11), known as the
"Intergovernmental Cooperation Authority Act for Cities of the
Second Class," and the emergency State tax imposed on wines sold
by the board under the act of June 9, 1936 (1st Sp. Sess.,
P.L.13, No.4), entitled "An act imposing an emergency State tax
on liquor, as herein defined, sold by the Pennsylvania Liquor
Control Board; providing for the collection and payment of such
tax; and imposing duties upon the Department of Revenue and the
Pennsylvania Liquor Control Board."
(e) A transporter for hire shall:
(1) keep records as required under section 512 pertaining to
the direct shipment of wine; and
(2) permit the board and the enforcement bureau, or their
designated representatives, to inspect such records in
accordance with section 513.
(f) Any person who resells wine obtained under this section
commits a misdemeanor of the second degree.
(g) Shipments of wine to persons in this Commonwealth from
persons who do not possess a license from the board authorizing
such shipments are prohibited. Any person who knowingly makes,
participates in, transports, imports or receives such shipment
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commits a misdemeanor.
(h) The board shall submit annual reports to the
Appropriations Committee of the Senate and the Law and Justice
Committee of the Senate and to the Appropriations Committee of
the House of Representatives and the Liquor Control Committee of
the House of Representatives summarizing the number of licenses
issued by the board under this section, the quantity of wine
sold and shipped by licensees pursuant to this section and the
total dollar value of sales under this section.
(i) The board may promulgate such rules and regulations as
are necessary to implement and enforce the provisions of this
section.
(j) The term "wine" as used in this section shall mean
liquor which is fermented from an agricultural commodity as that
term is defined in section 505.2(c).
Section 13. Section 493(24) of the act, amended November 29,
2006 (P.L.1421, No.155), is amended and the section is amended
by adding a paragraph to read:
Section 493. Unlawful Acts Relative to Liquor, Malt and
Brewed Beverages and Licensees.--The term "licensee," when used
in this section, shall mean those persons licensed under the
provisions of Article IV, unless the context clearly indicates
otherwise.
It shall be unlawful--
* * *
(24) (i) Things of Value Offered as Inducement. Except as
provided in subclause (ii), for any licensee under the
provisions of this article, or the board or any manufacturer, or
any employe or agent of a manufacturer, licensee or of the
board, to offer to give anything of value or to solicit or
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receive anything of value as a premium for the return of caps,
stoppers, corks, stamps or labels taken from any bottle, case,
barrel or package containing liquor or malt or brewed beverage,
or to offer or give or solicit or receive anything of value as a
premium or present to induce directly the purchase of liquor or
malt or brewed beverage, or for any licensee, manufacturer or
other person to offer or give to trade or consumer buyers any
prize, premium, gift or other inducement to purchase liquor or
malt or brewed beverages, except advertising novelties of
nominal value which the board shall define. This section shall
not prevent any manufacturer or any agent of a manufacturer from
offering and honoring coupons which offer monetary rebates on
purchases of wines and spirits through State Liquor Stores or
purchases of malt or brewed beverages through distributors and
importing distributors in accordance with conditions or
regulations established by the board. The board may redeem
coupons offered by a manufacturer or an agent of a manufacturer
at the time of purchase. Coupons offered by a manufacturer or an
agent of a manufacturer shall not be redeemed without proof of
purchase. This section shall not apply to the return of any
monies specifically deposited for the return of the original
container to the owners thereof.
(ii) Notwithstanding subclause (i) or any other provision of
law, a holder of a restaurant license that is also approved to
hold a slot machine license or a conditional slot machine
license under 4 Pa.C.S. Part II (relating to gaming) may give
liquor and malt or brewed beverages free of charge to any person
actively engaged in playing a slot machine.
(iii) Notwithstanding subclause (i) or any other provision
of law, the board may establish and implement a customer
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relations management program for the purpose of offering
incentives, such as coupons or discounts on certain products
which may be conditioned upon the purchase of liquor, to
unlicensed customers of the board.
* * *
(35) Sale of wine received by direct-to-store or direct
shipment. For any licensee to sell or offer to sell any wine
purchased or acquired, directly or indirectly, from a licensee
pursuant to the authority of section 488, or from a licensee
pursuant to the authority of section 489.
Section 14. Section 499(a.1) of the act, amended October 5,
1994 (P.L.522, No.77), is amended to read:
Section 499. Premises to be Vacated by Patrons.--* * *
(a.1) Subsection (a) shall not apply to sales of malt and
brewed beverages for consumption off the premises when the
following conditions are met:
(1) no licensee may sell malt or brewed beverages in excess
of [one hundred ninety-two fluid ounces] three hundred eighty-
four ounces in not more than twenty-four original containers in
a single sale to one person as provided in section 407, provided
the licensee may not sell a package as prepared for sale or
distribution by the manufacturer containing more than twelve
containers, in any one sale for consumption off the premises;
(2) sales and service of malt and brewed beverages for
consumption off the premises are made prior to the designated
time the licensee is required by this act to cease serving
liquor, malt or brewed beverages;
(3) persons who have purchased malt and brewed beverages for
consumption off the premises shall remove the malt and brewed
beverages from the premises by the designated time as contained
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in this act that patrons are required to vacate the premises;
(4) no club licensee may sell any malt or brewed beverage
for consumption off the premises where sold or to any persons
who are not members of the club.
* * *
Section 15. This act shall take effect in 60 days.
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