Regular Session 2015-2016 Senate Bill 0908 P.N. 1069

PRINTER'S NO. 1069

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

908

Session of

2015

INTRODUCED BY WAGNER, MENSCH, STEFANO, VULAKOVICH, SCARNATI,

ALLOWAY, EICHELBERGER, WHITE, BARTOLOTTA AND WARD,

JUNE 22, 2015

REFERRED TO LAW AND JUSTICE, JUNE 22, 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," as

follows:

In preliminary provisions, further providing for

definitions and for interpretation.

In the Pennsylvania Liquor Control Board, further

providing for general powers, providing for fee adjustment by

regulation and further providing for subject of regulations,

for enforcement and for wine and spirits marketing.

In Pennsylvania Liquor Stores, further providing for

establishment and for sales.

Providing for wine and spirits distribution.

In licensing, further providing for hotels, restaurants

and clubs liquor licenses, for license fees, for liquor

license sales and restrictions, for wine auction permits, for

importers' license fees, privileges and restrictions, for

interlocking business, for application for distributors',

importing distributors' and retail dispensers' licenses, for

prohibitions against the grant of licenses, for numbers and

kinds of licenses, for distributors and importing

distributors restrictions, for interlocking business

prohibited, for renewal and temporary provisions, for

sanctions, for responsible alcohol management, for surrender

of restaurant, eating place retail dispenser, hotel,

importing distributor and distributor licensee for benefit of

licensee, for unlawful acts relative to malt or brewed

beverages and licensees, for hours of operation relative to

manufacturers, importing distributors and distributors, for

unlawful acts relative to liquor, malt and brewed beverages

and licensees; providing for unlawful acts relative to wine

and spirits retail license holders and for licensees and

taxes; and further providing for penalties and for unlawful

advertising.

In distilleries, wineries, bonded warehouses, bailees and

transporters, further providing for limited wineries, for

distilleries and for license fees.

Providing for supplemental provisions.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. 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), is amended by adding definitions 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:

"Affiliate" or "person affiliated with" shall mean a person

that directly or indirectly, through one or more intermediaries,

controls, is controlled by or is under common control with a

specified person.

* * *

"Blended brand valuation" shall mean, for any particular

brand of liquor, the sum of the wholesale profit margin on each

product of a brand.

* * *

"Brand of liquor" shall mean a liquor product or series of

20150SB0908PN1069 - 2 -

liquor products produced by a single manufacturer.

* * *

"Commission" shall mean the State Civil Service Commission.

* * *

"Controlling interest" shall mean as follows:

(1) For a publicly traded legal entity, an interest in a

legal entity, applicant or licensee whereby a person's sole

voting rights under State law or corporate articles or bylaws

entitles the person to elect or appoint one or more of the

members of the board of directors or other governing board or

the ownership, directly or indirectly, of five per centum or

more of the securities of the publicly traded corporation.

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

liability company or other form of privately held legal entity,

the holding of any securities in the legal entity.

* * *

"Department" shall mean the Department of General Services of

the Commonwealth.

* * *

"Displaced employe" shall mean a salaried employe of the

board whose employment is terminated as a sole and direct result

of the implementation of Article III-A. The term shall not

include a person who is terminated for cause or who retires or

resigns, is furloughed or is otherwise separated from employment

for any other reason. The term excludes intermittent liquor

store clerks and seasonal liquor store clerks.

* * *

"Heritage State Stores" shall mean the number of State

stores, as determined by the board, located in any given county

as of the effective date of this definition.

20150SB0908PN1069 - 3 -

* * *

"Institution of higher education" shall mean a public or

private institution within this Commonwealth authorized by the

Department of Education to grant a certificate, associate degree

or higher degree. The term includes a branch or satellite campus

of the institution.

* * *

"Variable pricing" shall mean, for purposes of the wholesale

sale of liquor, any disparity in the price of an item sold to

one licensee as compared to the price of the same item to

another licensee or a licensee of a different classification.

The term shall not include discounts for volume purchases.

* * *

"Wholesale acquisition factor" shall mean a factor of two and

one-half applied to the wholesale profit margin of a brand of

liquor in determining a wholesale license fee.

"Wholesale licensee" shall mean a person that holds a wine

and spirits wholesale license issued pursuant to section

321.1- A.

"Wholesale profit margin" shall mean, for any particular

liquor product, twenty per centum of the total of costs of goods

sold of the product in the Commonwealth over the most recent

twelve-month period for which information is available.

* * *

"Wine and spirits wholesale license" shall mean a license

issued by the department or the board authorizing a person to

sell and distribute liquor on a wholesale basis to the board

until all retail licenses have been issued in accordance with

Article III-A and to licensees under this act.

"Wine and spirits retail permit" shall mean a wine and

20150SB0908PN1069 - 4 -

spirits retail permit issued under section 311-A.

"Wine and spirits retail permit holder" shall mean a licensee

that has obtained a wine and spirits retail permit.

* * *

Section 2. Section 104(c) and (d) of the act, amended

December 7, 1990 (P.L.622, No.160) and December 20, 1996

(P.L.1513, No.196), is amended to read:

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

this act is to prohibit the manufacture of and transactions in

liquor, alcohol and malt or brewed beverages which take place in

this Commonwealth, except by and under the [control] regulatory

authority of the board as herein specifically provided, and

every section and provision of the act shall be construed

accordingly; to provide a structure in this Commonwealth for a

distribution system, including the [establishment of

Pennsylvania liquor stores and] licensing of wine and spirits

wholesalers, wine and spirits retail permit holders, importing

distributors and distributors; and to preserve manufacturers of

liquor and alcohol and malt and brewed beverages selling those

products within this Commonwealth. The provisions of this act

dealing with the manufacture, importation, sale, distribution

and disposition of liquor, alcohol and malt or brewed beverages

within the Commonwealth through [the instrumentality of the

board,] licensees and otherwise, provide the means by which such

control shall be made effective. This act shall not be construed

as forbidding, affecting or regulating any transaction which is

not subject to the legislative authority of this Commonwealth.

(d) The provisions of this act are intended to create a

system for distribution [that shall include the fixing of prices

20150SB0908PN1069 - 5 -

for] of liquor and alcohol and controls placed on [prices for]

the sale and distribution of malt and brewed beverages, and each

of which shall be construed as integral to the preservation of

the system, without which system the Commonwealth's control of

the sale of liquor and alcohol and malt and brewed beverages and

the Commonwealth's promotion of its policy of temperance and

responsible conduct with respect to alcoholic beverages would

not be possible.

* * *

Section 3. Section 207 of the act, amended February 21, 2002

(P.L.103, No.10), November 30, 2004 (P.L.1727, No.221) and

December 8, 2004 (P.L.1810, No.239), is amended 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.

The board's authority to exercise the powers granted pursuant to

this subsection is subject to the limitations set forth in

Article III-A of this act.

(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

20150SB0908PN1069 - 6 -

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. 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 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,

20150SB0908PN1069 - 7 -

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. The board's authority to

exercise the powers granted pursuant to this subsection is

subject to the limitations set forth in Article III-A of this

act.

[(c) To determine the municipalities within which

Pennsylvania Liquor Stores shall be established and the

locations of the stores within such municipalities.]

(d) To grant and issue all licenses and to grant, issue,

suspend and revoke all permits authorized to be issued under

this act.

(e) (1) Through the [Department of General Services]

department as agent, to lease and furnish and equip such

buildings, rooms and other accommodations as shall be required

for the operation of this act.

(2) The department shall not relocate a Pennsylvania Liquor

Store after the effective date of this paragraph.

(f) To appoint, fix the compensation and define the powers

and duties of such managers, officers, inspectors, examiners,

clerks and other employes as shall be required for the operation

of this act, subject to the provisions of The Administrative

Code of 1929 and the Civil Service Act.

(g) To determine the nature, form and capacity of all

packages and original containers to be used for containing

liquor, alcohol or malt or brewed beverages.

(h) Without in any way limiting or being limited by the

foregoing, to do all such things and perform all such acts as

are deemed necessary or advisable for the purpose of carrying

20150SB0908PN1069 - 8 -

into effect the provisions of this act and the regulations made

thereunder.

(i) From time to time, to make such regulations not

inconsistent with this act as it may deem necessary for the

efficient administration of this act. The board shall cause such

regulations to be published and disseminated throughout the

Commonwealth in such manner as it shall deem necessary and

advisable or as may be provided by law. Such regulations adopted

by the board shall have the same force as if they formed a part

of this act.

(j) By regulation, to provide for the use of a computerized

referral system to assist consumers in locating special items at

Pennsylvania Liquor Stores and for the use of electronic

transfer of funds and credit cards for the purchase of liquor

and alcohol at Pennsylvania Liquor Stores. The board's authority

to exercise the powers granted pursuant to this subsection is

subject to the limitations set forth in Article III-A of this

act.

(k) To issue grants to various entities for alcohol

education and prevention efforts.

(l) To close Pennsylvania Liquor Stores as directed under

Article III-A of this act.

(m) The board shall implement a delivery system as a means

of providing product to all licensees under this act.

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

Section 207.1. Adjustment of Fees by Regulation.-- (a)

Notwithstanding any provision of this act or the act of April 9,

1929 (P.L.177, No.175), known as "The Administrative Code of

1929," to the contrary, all fees required under this act shall

be fixed by the board by regulation and shall be subject to the

20150SB0908PN1069 - 9 -

act of June 25, 1982 (P.L.633, No.181), known as the "Regulatory

Review Act."

(b) The board shall be authorized to increase license fees

by regulation under the following conditions:

(1) If the revenues raised by the fees imposed under this

act are not sufficient to meet all expenditures of the board

over a two-year period, the board shall increase the fees by

regulation, subject to the "Regulatory Review Act," so that the

projected revenues will meet projected expenditures.

(2) If the board determines that the fees established by the

board under subsection (a) are inadequate to meet the minimum

enforcement efforts required under this act, the board, after

consultation with the enforcement bureau, and subject to the

"Regulatory Review Act," shall increase the fees by regulation

in an amount so that adequate revenues are raised to meet the

required expenditures.

are inconsistent with this section.

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

Section 208. Specific Subjects on Which Board May Adopt

Regulations.--Subject to the provisions of this act and without

limiting the general power conferred by the preceding section,

the board may make regulations regarding:

[(a) The equipment and management of Pennsylvania Liquor

Stores and warehouses in which liquor and alcohol are kept or

sold, and the books and records to be kept therein.]

(b) The duties and conduct of the officers and employes of

the board.

[(c) The purchase, as provided in this act, of liquor and

alcohol, and its supply to Pennsylvania Liquor Stores.

20150SB0908PN1069 - 10 -

(d) The classes, varieties and brands of liquor and alcohol

to be kept and sold in Pennsylvania Liquor Stores. In making

this determination the board shall meet not less than twice a

year.

(e) The issuing and distribution of price lists for the

various classes, varieties or brands of liquor and alcohol kept

for sale by the board under this act.]

(f) The labeling of liquor and alcohol sold under this act

and of liquor and alcohol lawfully acquired by any person prior

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

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

(h) The issuance of licenses and permits and the conduct,

management, sanitation and equipment of places licensed or

included in permits.

[(i) The place and manner of depositing the receipts of

Pennsylvania Liquor Stores and the transmission of balances to

the Treasury Department through the Department of Revenue.

(j) The solicitation by resident or nonresident vendors of

liquor from Pennsylvania licensees and other persons of orders

for liquor to be sold through the Pennsylvania Liquor Stores

and, in the case of nonresident vendors, the collection

therefrom of license fees for such privilege at the same rate as

provided herein for importers' licenses.]

Section 6. Section 211(c) of the act, amended October 5,

1994 (P.L.537, No.80), is amended to read:

Section 211. Enforcement.--* * *

State Police Officers to such [supervisory and other] capacities

in the enforcement bureau as he deems necessary. All other

personnel of the enforcement bureau shall be civilians.

20150SB0908PN1069 - 11 -

Notwithstanding any other provision of law, a State Police

officer assigned to the enforcement bureau may not be counted

against the complement of officers as prescribed in section 205

of the act of April 9, 1929 (P.L.177, No.175), known as "The

Administrative Code of 1929."

* * *

Section 7. Section 215 of the act is repealed:

[Section 215. Wine and Spirits Marketing.--

(e) The board is authorized to participate in or sponsor

wine and spirits events for the purpose of educating consumers

as to the wines and spirits available in this Commonwealth. The

wine and spirits to be used for the event may be acquired

through the State store system or may be donated from outside

this Commonwealth. Participation in the tastings may be

conditioned on the purchase of a ticket to the event. The event

may include events occurring on premises licensed by the board,

and the board may sell wine and spirits for off-premises

consumption in an area designated by the board for such sale.]

Section 8. 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

20150SB0908PN1069 - 12 -

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

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. 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],

and subject to the limitations set forth in Article III-A of

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] department as agent

20150SB0908PN1069 - 13 -

of the board. The board, through the [Department of General

Services] department, shall have authority to purchase such

equipment and appointments as may be required in the operation

of such stores or establishments.

Section 9. Section 305 of the act, amended May 8, 2003

(P.L.1, No.1), July 17, 2003 (P.L.63, No.15), November 30, 2004

(P.L.1727, No.221), December 8, 2004 (P.L.1810, No.239), July 6,

2005 (P.L.135, No.39) and July 5, 2012 (P.L.1007, No.116), is

amended 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

liquor or alcohol, the board shall not include the cost of

freight or shipping before applying the mark-up 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.

20150SB0908PN1069 - 14 -

During the retail divestiture process as provided in Article

III-A, the board shall continue to take and process special

liquor orders for residents and licensees of the board, and may

establish a protocol by which prepaid orders may be picked up at

either a Pennsylvania Liquor Store or from the licensed premises

of a wine and spirits retail permit holder. A wine and spirits

retail permit holder is authorized to assess a handling fee for

this purpose. Any product not claimed at the premises of a wine

and spirits retail permit holder by the purchaser shall be

returned to the board after ten days' notice of arrival was sent

to the purchaser.

(b) [Every] Until the wholesale divestiture process as

provided in Article III-A is complete, every Pennsylvania Liquor

Store shall sell liquors at wholesale to wine and spirits retail

permit holders, 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] fourteen 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. A person entitled to purchase

20150SB0908PN1069 - 15 -

liquor at wholesale prices may purchase the liquor at any

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.

alcohol purchased from State Liquor Stores by persons holding

wholesale purchase permit cards issued by the board shall be

returned to the board as dishonored, the board shall charge a

fee of five dollars per hundred dollars or fractional part

thereof, plus all protest fees, to the maker of such check

submitted to the board. Failure to pay the face amount of the

check in full and all charges thereon as herein required within

ten days after demand has been made by the board upon the maker

of the check shall be cause for revocation or suspension of any

license issued by the board to the person who issued such check

and the cancellation of the wholesale purchase permit card held

by such person.

(d) No liquor or alcohol package shall be opened on the

premises of a Pennsylvania Liquor Store. No manager or other

employe of the board employed in a Pennsylvania Liquor Store

shall allow any liquor or alcohol to be consumed on the store

premises, nor shall any person consume any liquor or alcohol on

such premises, except liquor and alcohol which is part of a

tasting conducted pursuant to the board's regulations. Such

tastings may also be conducted in the board's headquarters or

20150SB0908PN1069 - 16 -

regional offices or at the premises of a wine and spirits retail

permit holder.

(e) The board may sell tax exempt alcohol to the

Commonwealth of Pennsylvania and to persons to whom the board

shall, by regulation to be promulgated by it, issue special

permits for the purchase of such tax exempt alcohol.

Such permits may be issued to the United States or any

governmental agency thereof, to any university or college of

learning, any laboratory for use exclusively in scientific

research, any hospital, sanitorium, eleemosynary institution or

dispensary; to physicians, dentists, veterinarians and

pharmacists duly licensed and registered under the laws of the

Commonwealth of Pennsylvania; to manufacturing chemists and

pharmacists or other persons for use in the manufacture or

compounding of preparations unfit for beverage purposes.

(f) Every purchaser of liquor, alcohol, corkscrews, wine or

liquor accessories, trade publications, gift cards, gift

certificates, wine- or liquor-scented candles or wine glasses

from a Pennsylvania Liquor Store shall receive a numbered

receipt which shall show the price paid therefor and such other

information as the board may prescribe. Copies of all receipts

issued by a Pennsylvania Liquor Store shall be retained by and

shall form part of the records of such store.

[(g) The board is hereby authorized and empowered to adopt

and enforce appropriate rules and regulations to insure the

equitable wholesale and retail sale and distribution, through

the Pennsylvania Liquor Stores, of available liquor and alcohol

at any time when the demand therefor is greater than the

supply.]

(h) Every Pennsylvania Liquor Store shall sell gift

20150SB0908PN1069 - 17 -

certificates and gift cards which may be redeemed for any

product sold by the board. In addition, the board may sell

corkscrews, wine and liquor accessories, wine- or liquor-scented

candles, trade publications and wine sleeves at Pennsylvania

Liquor Stores.

(i) Notwithstanding any other provision of law to the

contrary, the board may sell wine in containers having a

capacity of sixty liters or less.

Section 10. The act is amended by adding an article to read:

ARTICLE III-A

WINE AND SPIRITS DISTRIBUTION

SUBARTICLE A

GENERAL PROVISIONS

Section 301-A. Scope of article.

This article relates to the privatization of liquor

distribution in this Commonwealth.

Section 302-A. Transition to private distribution system,

powers and duties of the department and the board.

(a) Orderly transition.--The department and the board have

the power and duty to implement this article and effect an

orderly transition to a privately-owned and privately-operated

wholesale and retail liquor distribution system in this

Commonwealth in a manner which is consistent with this article

and the laws of this Commonwealth and which seeks to maintain

uninterrupted service to the public.

(b) Wholesale transition.--

(1) Six months after the effective date of this section ,

in consultation with its advisors and the board, the

department shall transition the board's wholesale

distribution of liquor to privately-owned and privately-

20150SB0908PN1069 - 18 -

operated wholesale licensees.

(2) The divestiture of the board's wholesale operations

shall be accomplished through the issuance of wine and

spirits wholesale licenses by brand of liquor, which shall be

subject to an application process as set forth in this

article. The transition must fully divest the board of all

operations relating to the wholesale distribution of liquor

within six months of the commencement of wholesale

divestiture.

(1) The board shall fully cooperate with the department

or its advisors in all aspects of implementation of this

article and shall provide the department or its consultant

with all records and information in the possession of the

board upon request.

(2) The board shall devote sufficient resources to

planning and preparation for the divestiture of its wholesale

and retail functions.

(3) The board shall use its best efforts in coordinating

with the department or its advisors , wine and spirits retail

permit holders and wine and spirits wholesale licensees so as

to maintain uninterrupted service to the residents of this

Commonwealth during divestiture.

(d) Prohibition.--The board shall not engage in wholesale

distribution of liquor following completion of the wholesale

transition to a private distribution system.

Section 303-A. Reports to the General Assembly.

One year after the effective date of this section, and each

year thereafter until the board has been fully divested of its

wholesale and retail operations, the board, in cooperation with

20150SB0908PN1069 - 19 -

the department, shall submit to the Secretary of the Senate and

the Chief Clerk of the House of Representatives, a report on

wholesale and retail alcohol sales in this Commonwealth and the

implementation of this article, including:

(1) the total revenue earned by the issuance of licenses

or permits under this article;

(2) the distribution and sale of brands through private

wholesalers;

(3) the net profit or loss of each wine and spirits

retail permitted premise and State liquor store in this

Commonwealth; and

(4) the status of the ongoing transition, including

store closures and employee displacement.

Section 304-A. Temporary regulations.

(a) Promulgation.--In order to facilitate the prompt

implementation of this article, regulations promulgated by the

department shall be deemed temporary regulations which shall

expire no later than five years following the effective date of

this section. The department may promulgate temporary

regulations not subject to:

(1) sections 201, 202 and 203 of the act of July 31,

1968 (P.L.769, No.240), referred to as the Commonwealth

Documents Law; or

(2) the act of June 25, 1982 (P.L.633, No.181), known as

the Regulatory Review Act.

(b) Expiration.--The authority provided to the department to

adopt temporary regulations under subsection (a) shall expire on

January 1, 2018.

SUBARTICLE B

WINE AND SPIRITS RETAIL PERMITS

20150SB0908PN1069 - 20 -

Section 311-A. Issuance of retail permits.

(a) General rule.--On the effective date of this section,

the department may issue to licensees holding a hotel or

restaurant license or a distributor's license a wine and spirits

retail permit as provided under this section.

(b) Application, issuance and requirements.-- Any licensee

that wishes to obtain a wine and spirits retail permit must

apply to the board on a form prescribed by the board and pay the

applicable permitting fees by June 1 of each calendar year. Any

licensee that fails to notify the board and pay the permitting

fees by June 1 may be precluded from obtaining the permit for

that calendar year. The board may allow the issuance of the

permit after the June 1 deadline so long as the applicant is a

licensee in good standing with the board and complies with the

other requirements for the permit. A licensee applying for the

permit after the June 1 deadline shall pay the board a late fee

equal to the amount of the permit fee listed under subsection

(c). Any licensee not granted a license until after June 1 of

the calendar year shall have 60 days from the date of the

license transfer to notify the board of the licensee's intention

to use a wine and spirits retail permit and pay the permitting

fee. The servers employed by a licensee who obtains a wine and

spirits retail permit must be certified under the board's

responsible alcohol management program as required under section

471.1.

wine and spirits retail permit, which shall be paid into The

State Stores Fund:

(1) For a licensee holding a hotel or restaurant

license, $1,500 per calendar year.

20150SB0908PN1069 - 21 -

(2) For a licensee holding a distributor's license,

$3,000 per calendar year.

(d) Violation.--Any violation of this act or the board's

regulations for governing activity occurring under the authority

of this permit may be the basis for the issuance of a citation

under section 471, the nonrenewal of the license under section

470 or the refusal by the board to issue subsequent permits. The

penalty imposed under this subsection shall be in addition to

the other remedies available to the enforcement bureau or the

board.

SUBARTICLE C

DIVESTITURE OF WHOLESALE LIQUOR DISTRIBUTION

Section 321-A. Wholesale divestiture.

(a) Utilization.--In effectuating the intent of this

article, the department shall utilize the authority provided

under section 305-A and any other powers of the department, with

the full cooperation and assistance of the board.

(b) Establishment.--On the effective date of this section,

the department shall establish all of the following:

(1) An application process and schedule for the

investigation and award of wine and spirits wholesale

licenses under this article.

(2) A blended brand valuation for each brand of liquor

available for sale in this Commonwealth.

(3) Procedures and standards governing the relationship

between wine and spirits wholesale licensees and

manufacturers and the ability and terms upon which that

relationship may be terminated.

(1) The department shall:

20150SB0908PN1069 - 22 -

(i) coordinate scheduling so that wine and spirits

wholesale license applications may be received, processed

and investigated by the board's Bureau of Licensing

during the retail divestiture process; and

(ii) begin a coordinated effort to allow the board

to issue licenses six months from the effective date of

this section.

(2) The department must fully divest the board of all

operations relating to the wholesale distribution of liquor

within six months of commencing wholesale divestiture.

Section 321.1-A. Issuance of wine and spirits wholesale

licenses.

(a) Authorization.--The board may issue wine and spirits

wholesale licenses under the following conditions:

(1) The following shall apply:

(i) One wine and spirits wholesale license may be

issued by the board to each qualified applicant.

(ii) A wine and spirits wholesale license shall

authorize the holder to sell and distribute brands of

liquor, as proposed by an applicant and approved by the

department, to wine and spirits retail permit holders and

other licensees of the board authorized to sell or

distribute liquor under this act, to United States Armed

Forces facilities located on United States Armed Forces

installations within this Commonwealth and to the holder

of a wholesale alcohol purchase permit issued by the

board.

(iii) The alcoholic products shipped into this

Commonwealth must be delivered to the wholesaler's

licensed premises. Upon delivery, the products shall be

20150SB0908PN1069 - 23 -

unloaded, inventoried and remain on the licensed premises

for 18 hours before delivery is made to a retailer.

During that time period, the board may inspect and

inventory wholesale warehouses to verify taxes that are

required to be paid on the products. Under certain

circumstances, the wholesaler or manufacturer may ask the

board to waive the 18-hour delivery hold.

(2) Subject to the conditions and restrictions of this

subarticle, wine and spirits wholesale licensees may sell and

distribute more than one brand of liquor under the same wine

and spirits wholesale license.

(3) Upon application by a wine and spirits wholesale

licensee, the board may amend its initial authorization under

a wine and spirits wholesale license to include additional

brands of liquor or exclude previously-approved brands of

liquor.

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

(1) On the effective date of this section, the

department shall determine the wine and spirits wholesale

license fee for each brand of liquor sold at wholesale by the

board through its State liquor stores or via special liquor

order for a continuous period of at least one year. The

license fee shall be equal to the blended brand valuation for

each brand of liquor authorized by the wine and spirits

wholesale license multiplied by the wholesale acquisition

factor.

(2) The department shall publish a notice on its

Internet website of the wine and spirits wholesale license

fee for each brand of liquor determined under paragraph (1).

The department shall establish deadlines within which an

20150SB0908PN1069 - 24 -

applicant must submit an application for a wine and spirits

wholesale license for the brands of liquor specified by the

applicant.

(3) The department must receive the required license fee

for the brands of liquor specified by the applicant before a

wine and spirits wholesale license is issued by the board to

a successful applicant.

wine and spirits wholesale license, a wine and spirits wholesale

licensee proposes to sell and distribute a new brand of liquor

not previously sold in this Commonwealth, the wine and spirits

wholesale licensee shall apply to the board for permission to

sell the brand and pay an additional license fee of $1,000.

(d) Term.--

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

of the required license fee, shall be in effect unless

suspended, revoked or not renewed under this article.

(2) The license of a wine and spirits wholesale licensee

in good standing shall be renewed every two years under this

article.

(3) Nothing under this subsection shall be construed to

relieve a wine and spirits wholesale licensee of the

affirmative duty to notify the board of changes relating to

any of the following:

(i) The status of its license.

(ii) Information contained in the application

materials on file with the department or the board.

Section 322-A. Application for wine and spirits wholesale

license.

(a) Applications.--An application for a wine and spirits

20150SB0908PN1069 - 25 -

wholesale license shall be submitted on a form and in a manner

as required by the board.

(b) Eligibility.--A person may be eligible to apply for a

wine and spirits wholesale license if the person satisfies all

of the following:

(1) Neither the applicant nor any affiliate of the

applicant has applied for or holds a wine and spirits retail

permit or other license which authorizes the retail sale of

wine and spirits to consumers.

(2) The applicant is organized under the laws of this

Commonwealth if it is any of the following:

(i) A corporation.

(ii) A limited liability company.

(iii) A limited partnership.

(iv) A partnership.

(v) An association.

(vi) A legal entity other than a legal entity listed

under this paragraph.

(3) The applicant is a citizen of the United States and

a resident of this Commonwealth if that applicant is a

natural person.

(4) Neither the applicant nor any affiliate of the

applicant, executive officer, director or general or limited

partner of the applicant or person holding, directly or

indirectly, a controlling interest in the applicant has been

convicted of a crime listed under subsection (d) (10).

(1) A properly licensed importing distributor of malt

and brewed beverages from applying for and, if approved,

being issued a wine and spirits wholesale license.

20150SB0908PN1069 - 26 -

(2) The holder of a limited winery license, a limited

distillery license or a distillery license issued by the

board from acquiring a wine and spirits wholesale license.

(d) General requirements.--In addition to any other

information required under this article or by the department or

the board, the applicant for a wine and spirits wholesale

license shall include the following:

(1) The name, address and tax identification number of

the applicant.

(2) A statement as to whether the applicant is an

individual, corporation, limited liability company, limited

partnership, partnership or association and, if the applicant

is not an individual, the state of incorporation or

organization.

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

residence address of each executive officer, director,

general or limited partner or person holding a controlling

interest in the applicant.

(4) If the applicant is an association, the name and

residence address of each person constituting the

association.

(5) A list of the brands of liquor the applicant

proposes to engage in wholesale distribution on a Statewide

basis.

(6) A sworn statement that the applicant has entered

into a contractual relationship with one or more liquor

manufacturers, importers or vendors of record for the

distribution in this Commonwealth of a brand or brands of

liquor, regardless of whether the contractual relationship is

contingent upon the board issuing a wine and spirits

20150SB0908PN1069 - 27 -

wholesale license to the applicant.

(7) The proposed location and proof of ownership or

lease for the wholesale operation, including proposed

warehouses, if available.

(8) Floor plans for any facility proposed to be used in

wholesale operations and existing design plans for any

facility that is planned, but not yet constructed, to the

extent the floor plans are available.

(9) Information disclosing all arrests of and all

citations issued for nonsummary offenses to an applicant and

any affiliate of the applicant, executive officer, director

or general or limited partner of the applicant or person

holding a controlling interest in the applicant. The

information shall include:

(i) A brief description of the circumstances

surrounding the arrest or issuance of the citation.

(ii) The specific offense charged or cited.

(iii) The ultimate disposition of the charge or

citation, including the details of a dismissal, plea

bargain, conviction, sentence, pardon, expungement or

order of Accelerated Rehabilitative Disposition.

(10) A sworn statement that the applicant and any

affiliate of the applicant, or any executive officer,

director or general or limited partner of the applicant or

person holding a controlling interest in the applicant have

never been convicted:

(i) of a crime involving fraud, moral turpitude or

racketeering within a period of 10 years immediately

preceding the date of the application;

(ii) of a felony or equivalent crime; or

20150SB0908PN1069 - 28 -

(iii) in a Federal or state tribunal, including this

Commonwealth, of the violation of a Federal or state

liquor law.

(11) A statement that the applicant intends to

continuously operate as a wine and spirits wholesale licensee

for the duration of the license term and to use its best

efforts to provide a level of service, including product

availability, reasonably equivalent to the level of service

currently provided by the Commonwealth.

(12) A financial statement or letter of credit in a form

and containing information determined by the department to

indicate the applicant's financial capability to operate the

wholesale operation and the estimated volume of wholesale

business to be conducted annually.

(13) A current tax certificate issued by the Department

of Revenue showing the amount of taxes owed to the

Commonwealth for the applicant and any affiliate of the

applicant, executive officer, director or general or limited

partner of the applicant or person holding a controlling

interest in the applicant.

(14) A signature and verification by oath or affirmation

or under penalty of unsworn falsification to authorities by

one of the following:

(i) The applicant, if the applicant is a natural

person.

(ii) A person specifically authorized by the legal

entity to sign the application, if the applicant is a

legal entity. Written evidence of the authority to sign

must be attached to the signature and verification.

(e) Additional information.--An applicant shall, during the

20150SB0908PN1069 - 29 -

application process, provide any other information determined to

be appropriate by the department.

(f) Amended application.--If a change occurs in any

information provided to the department or the board as part of

the application process, the applicant shall immediately notify

the department or the board of the change and timely provide

amended information to the department or the board in a form and

manner determined by the department or the board.

(g) Application fees and investigative costs.--

(1) An application filing fee of $10,000 shall be due

upon application for a wine and spirits wholesale license.

The application filing fee shall be refunded if, due to no

fault of the applicant, the wine and spirits wholesale

license is not approved.

(2) The department shall establish, charge and collect

fees from an applicant to recover the costs directly related

to the board's review and investigation of the application

for a wine and spirits wholesale license. The board shall

have the same authority relating to fees as to applications

for renewal.

Section 323-A. Review and investigation of application.

(a) Completeness of application.--

(1) The following shall apply:

(i) The department may not consider an incomplete

application and shall notify the applicant in writing if

an application is incomplete.

(ii) An application shall be considered incomplete

if it does not include all applicable fees and all

information and accompanying documentation required by

the department . Unpaid taxes identified on the tax

20150SB0908PN1069 - 30 -

certificate required to be filed under section

322- A(d) (13) must be paid before the application is

considered complete.

(2) A notification of incompleteness shall state the

deficiencies in the application that must be corrected prior

to consideration of the merits of the application.

(3) The applicant must be afforded a reasonable period

of time, as determined by the department, to cure the

deficiencies.

(4) If the applicant fails to timely cure noticed

deficiencies within the time specified by the department, the

application shall be deemed denied by the department without

further action.

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

wine and spirits wholesale license and a determination that the

application is complete, the department shall provide the

application to the board's Bureau of Licensing to conduct an

investigation of the applicant. The investigation shall include

and the applicant shall have the burden of demonstrating the

following:

(1) The truth and veracity of the information provided

in the application.

(2) The applicant's cooperation and the cooperation of

any affiliate of the applicant and any executive officer,

director or general or limited partner of the applicant or

person holding a controlling interest in the applicant in the

application process and with any request by the department or

the board for any information deemed necessary for licensure.

(3) The good character, reputation and suitability of

the applicant and any affiliate of the applicant, executive

20150SB0908PN1069 - 31 -

officer, director or general or limited partner of the

applicant or person holding a controlling interest in the

applicant.

(4) The applicant possesses sufficient financial

resources to:

(i) Operate as a wine and spirits wholesale

licensee.

(ii) Pay all taxes due and owing to the

Commonwealth.

(iii) Assume liability for the safe operation of the

wholesale operations.

(5) The applicant possesses sufficient financial

resources and experience to create and maintain a successful

and efficient wholesale operation that provides service at a

level that is reasonably equivalent to the level of service

currently provided in this Commonwealth on the effective date

of this section.

(6) The applicant has entered into a contractual

relationship with one or more licensed manufacturers,

importers or vendors of record for the distribution in this

Commonwealth of a brand or brands of liquor regardless of

whether the contractual relationship is contingent upon the

board issuing a wine and spirits wholesale license to the

applicant.

(7) The physical facilities proposed to be used in the

applicant's wholesale operations are located and designed to:

(i) assure that all warehouses are located within

this Commonwealth and licensed for the storage of liquor;

(ii) function as a self-contained unit, with limited

customer access;

20150SB0908PN1069 - 32 -

(iii) not have any interior connection with any

other business or with any residential building without

prior department or board approval;

(iv) provide adequate security to protect the

applicant's inventory from unauthorized sale or

diversion; and

(v) protect the public interest.

into an agreement with the Pennsylvania State Police or the

Office of Inspector General to assist the board in conducting

investigations under this section and to provide for the

reimbursement of actual costs incurred for providing the

assistance. The board may establish, charge and collect fees

from an applicant to recover the costs of investigation.

Section 324-A. Issuance of licenses.

(a) Notification.--Upon completion of the investigation

under section 323-A, the board shall inform the department of

the results of its investigation. The board shall inform the

applicant in writing of its decision to approve or deny the

application.

(b) Approval.--If the application is approved, the

department shall require the successful applicant to pay the

license fee, as required under section 321.1-A, based on the

brand licensing fees established under section 321.1-A for the

brands of liquor approved for the applicant.

(1) If an application is denied, the board shall provide

the applicant with the specific reasons for the denial in the

written notification required under subsection (a).

(2) The applicant shall be entitled to a hearing on the

20150SB0908PN1069 - 33 -

denial, if a hearing is requested within 10 days of the

board's notification and the request is in writing on a form

and in a manner determined by the board .

(3) A hearing under this subsection shall be conducted

in accordance with 2 Pa.C.S. Ch. 5 Subch. A (relating to

practice and procedure of Commonwealth agencies).

(d) Issuance.--After approval of an application, the board

shall issue a wine and spirits wholesale license to the

applicant for the exclusive privilege to sell approved brands of

liquor in this Commonwealth, if the applicant has completed all

of the following:

(1) Paid the wine and spirits wholesale license fee

required under this article. Payment must be made by

certified check or wire transfer to a designated restricted

account in The State Stores Fund.

(2) Paid outstanding application or investigation fees.

(3) Executed and delivered to the board the statement of

conditions required under section 325-A.

(4) Repurchased from the board remaining marketable

inventory of the brands authorized under its license which

are owned by the board at the board's purchase order cost and

paid applicable taxes due and an administrative fee

determined by the board. The wine and spirits wholesale

licensee shall coordinate, at its own cost, the removal of

remaining product owned by the board.

(5) Fulfilled any other conditions required by the

department or the board or provided for under this article.

(e) License as privilege.--

(1) Nothing under this article is intended or may be

construed to create an entitlement to a wine and spirits

20150SB0908PN1069 - 34 -

wholesale license.

(2) The authorization to participate in the distribution

and sale of liquor as a wine and spirits wholesale licensee

is a privilege conditioned upon this article.

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

(1) Except as set forth in paragraph (2), if a wine and

spirits wholesale license has been issued for a particular

brand of liquor, the board may not engage in the sale or

distribution of that brand of liquor.

(2) The board may coordinate the repurchase of remaining

board inventory of brands as provided under Subarticle D.

(3) The board's Bureau of Licensing shall provide

adequate notice to the board's Bureau of Supply Chain that a

wine and spirits wholesale license application is ready for

license approval to insure that appropriate inventory

reduction can be effectuated without causing a shortage of

the brand at issue.

Section 325-A. W ine and spirits w holesale licensee statement of

conditions.

(a) Statement of conditions.--The department, in

consultation with the board, shall develop a statement of

conditions to be executed by each wine and spirits wholesale

licensee governing the operation of the wine and spirits

wholesale licensee.

(b) Conditions, restrictions and prohibited acts.--In

addition to any other conditions the department, in consultation

with the board, deems necessary or appropriate for a specific

wine and spirits wholesale licensee or which may be mandated for

all licensees through regulations of the department or the

board, the statement of conditions under subsection (a) shall

20150SB0908PN1069 - 35 -

include the following:

(1) A wine and spirits wholesale licensee may not sell

liquor to a person, except a person specified in section

321.1-A(a)(1).

(2) A wine and spirits wholesale licensee must serve all

licensees eligible to purchase and resell liquor under this

act and must make liquor available for sale to those

licensees under the same pricing structure.

(3) Except for a wine and spirits wholesale licensee

that holds an importing distributor license under section

431, a wine and spirits wholesale licensee may not sell malt

or brewed beverages.

(4) A wine and spirits wholesale licensee may not engage

in conduct that would constitute any of the following:

(i) Variable pricing.

(ii) Unfair or deceptive trade practices proscribed

under Federal or State law or regulation.

(iii) Intentional exclusion of competing brands of

liquor from the marketplace.

(5) A wine and spirits wholesale licensee may only sell

and distribute liquor products in this Commonwealth that are

subject to a contractual relationship between the wine and

spirits wholesale licensee and one or more licensed

manufacturers or importers of wine and spirits.

(6) A wine and spirits wholesale licensee shall do all

of the following:

(i) Acquire liquor exclusively from a designated

agent of the brand owner and/or a licensed manufacturer

or importer of wine and spirits with whom the wine and

spirits wholesale licensee has the contractual authority

20150SB0908PN1069 - 36 -

to sell at wholesale as provided under this act.

(ii) Keep a detailed log of wholesale liquor

transactions, including acquisitions of liquor from an

entity listed under subparagraph (i) and sales to

licensees under this act.

(7) A wine and spirits wholesale licensee's licensed

premises and all facilities involved in its wholesale

operations, including any changes to the facilities during

the term of the license, shall be subject to the inspection,

investigation and approval of the department or the board or

the enforcement bureau.

(8) A wine and spirits wholesale licensee shall maintain

adequate security to protect the licensee's inventory from

unauthorized sale, removal or theft and prevent its

unauthorized distribution.

(9) As follows:

(i) Except as provided under paragraph (1), a wine

and spirits wholesale licensee may not engage in a

separate business activity on a premises on which

wholesale liquor operations are conducted without prior

approval of the board.

(ii) A wine and spirits wholesale licensee which

holds an importing distributor license may engage in

sales of malt or brewed beverages under this act.

(10) A wine and spirits wholesale licensee shall collect

and remit to the Department of Revenue all applicable taxes.

(11) A wine and spirits wholesale licensee shall be

considered a State liquor store for the purpose of collecting

and remitting taxes under Article II of the act of March 4,

1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,

20150SB0908PN1069 - 37 -

from persons licensed to sell liquor for consumption on the

premises under Article IV.

(12) A wine and spirits wholesale licensee shall notify

the board within 15 days of a change in a person holding a

controlling interest in the licensee.

(13) A wine and spirits wholesale licensee shall notify

the board within 15 days of becoming aware of an arrest,

criminal indictment or conviction by the licensee, an

affiliate of the licensee or an executive officer, director

or general or limited partner of the licensee or person

holding a controlling interest in the licensee.

(14) A wine and spirits wholesale licensee shall notify

the board within 15 days of becoming aware of a violation of

this act by the licensee, an affiliate of the licensee or an

executive officer, director or general or limited partner of

the licensee, person holding a controlling interest in the

licensee or employee of the licensee.

(15) As follows:

(i) A wine and spirits wholesale licensee may not

operate in a manner which constitutes a violation of

Federal or State law, including antitrust or other unfair

trade practices, or creates a monopolistic liquor

distribution system in this Commonwealth.

(ii) If a wine and spirits wholesale licensee seeks

to be approved by the board to distribute additional

brands of liquor which would give the licensee a control

of more than 50% of the liquor distributed in the

wholesale market of this Commonwealth, in terms of gross

dollar sales, the board shall convene a hearing to

determine whether approval of the proposed application

20150SB0908PN1069 - 38 -

for additional brands would constitute a violation of

antitrust or other unfair trade practice laws, or would

create a monopolistic liquor distribution system in this

Commonwealth.

(iii) The board is authorized to promulgate

regulations providing for the procedure for hearings

under subparagraph (ii).

(16) A wine and spirits wholesale licensee shall make

the licensed premises, all of the facilities involved in the

wholesale operation and all of the business and financial

books and records of the wholesale operation available at any

time for inspection and audit by the department, the board or

the enforcement bureau. The board shall promulgate

regulations regarding the records that a licensee must

maintain on its premises.

(17) A wine and spirits wholesale licensee shall

cooperate fully in an inquiry or investigation by the

department or the board or the enforcement bureau and provide

information requested by the department, the board or the

enforcement bureau.

(18) A wine and spirits wholesale licensee which is a

corporation, a limited liability company, limited

partnership, partnership, association or other legal entity

must be organized under the laws of this Commonwealth.

(19) A wine and spirits wholesale licensee which is a

natural person must be a citizen of the United States and a

resident of this Commonwealth.

fails to abide by a condition contained in the licensee's

statement of conditions or commits a violation of this act or

20150SB0908PN1069 - 39 -

Federal or State law:

(1) shall be subject to citation by the enforcement

bureau; and

(2) may be subject to:

(i) a fine, suspension or license revocation;

(ii) nonrenewal of the license or revocation of

temporary operating authority; or

(iii) other penalties authorized under sections 471

and 494.

Section 326-A. Transfer of brands of liquor.

(a) Prohibition.--No brand of liquor offered for sale in

this Commonwealth may be transferred to a different wine and

spirits wholesale licensee without prior notice from the board.

(b) Transfer fee.--An application to the board to transfer

the right to distribute a brand of liquor shall be subject to an

application fee equal to 1% of the initial license fee

attributable to the brand of liquor or $1,000, whichever is

greater.

SUBARTICLE D

CLOSURE OF STATE LIQUOR STORES

AND ASSISTANCE FOR DISPLACED EMPLOYEES

Section 331-A. Closure of State liquor stores.

(a) Process for closure.--

(1) The board shall review the viability of a store

located within a county where the number of privately owned

and privately operated wine and spirits retail permits equal

the number of Heritage State Stores.

(2) Where the number of Heritage State Stores equals the

number of privately owned and privately operated wine and

spirits retail permits, the board shall provide a rationale

20150SB0908PN1069 - 40 -

to the department for the continued operation or closure of a

store located in a county.

(3) A Heritage State Store designated for closure shall

cease operations within 60 days.

(4) Where the number of privately owned and privately

operated wine and spirits retail permits exceed the number of

Heritage State Stores by a factor of two, the Heritage State

Stores within a county must close within six months.

(5) Once the board is operating fewer than 100 Heritage

State Stores within this Commonwealth, the board must

immediately begin the process of closing all of them.

(b) Disposition of liquor.--The board shall arrange for the

disposition of the liquor remaining in inventory at a designated

store. In order to effectuate this subsection, the board may, in

consultation with the department, do any of the following:

(1) Coordinate with the vendor of record for the

repurchase products by the vendor of record.

(2) Sell products to a newly licensed wine and spirits

retail permit holder.

(3) Transport products for sale at another operating

State liquor store.

department, in consultation with the board, shall establish a

procedure for the sale of the nonliquor inventory, property and

fixtures of all State liquor stores consistent with 62 Pa.C.S.

Ch. 15 (relating to supply management). Wine and spirits retail

permit holders shall have the opportunity to bid on the items to

be sold or otherwise participate in the sale. All proceeds from

the sales shall be deposited into The State Stores Fund.

(d) Pennsylvania Liquor Store leases.--The board shall

20150SB0908PN1069 - 41 -

provide immediate notice to the lessor upon receipt of the

department's notice to close a designated Pennsylvania Liquor

Store.

(e) Hiring restrictions.--

(1) Notwithstanding any other provision of this act, the

board may not hire additional salaried or wage employees for

the purpose of staffing its retail operations, including its

bureau of marketing and retail operations, unless explicitly

authorized by the department.

(2) Paragraph (1) shall not prohibit the board from

hiring personnel, with approval from the department, to

adequately staff its Bureau of Supply Chain for the purpose

of transitioning its retail and wholesale operations to

licensees or permittees of this article.

Section 331.1-A. Licensee service centers.

The board shall work collaboratively with the department to

ensure that an adequate number of stores designated for sales to

licensees or licensee service center locations are maintained

during the retail and wholesale divestiture process so that

licensees are able to timely acquire products sold by the board.

Section 332-A. Transition assistance committee.

(a) Formation.--

(1) On the effective date of this section, the

department shall designate individuals to serve on a

committee for the purpose of managing the staffing transition

and displacement of employees during the divestiture process.

(2) The committee, which shall be chaired by a

representative from the department, shall involve the

participation of the Office of Administration, the Civil

Service Commission, the Department of Labor and Industry and

20150SB0908PN1069 - 42 -

the board's bureau of human resources, to ensure a

coordinated approach to allocating personnel and assisting

displaced employees during the transition to find an

appropriate position.

(3) The department shall contract with advisors

necessary to assist the department and the board in

administering the duties under paragraph (2). The contracts

shall not be subject to the provisions of 62 Pa.C.S. Ch. 5

(relating to source selection and contract formation).

(b) Counseling and placement.--The committee shall

coordinate with the Office of Administration to provide

counseling and other general assistance to employees of the

board who are displaced to transition the employees to other

employment in either the public or private sector.

under this subarticle shall be paid for out of the proceeds from

the divestiture of the board's wholesale and retail operations.

Section 333-A. Preference in public employment hiring.

(a) Civil service examinations.--

(1) A displaced employee who successfully passes a civil

service appointment examination shall be marked or graded an

additional three points above the mark or grade credited for

the examination if all of the following apply:

(i) The examination is for a paid position

administered under the act of August 5, 1941 (P.L.752,

No.286), known as the Civil Service Act, and in the

classified service existing under the commission's

jurisdiction.

(ii) The employee establishes the qualifications

required by law for appointment to the position.

20150SB0908PN1069 - 43 -

(2) The total mark or grade, including the mark-up under

paragraph (1), obtained by the displaced employee shall

represent the final mark or grade of the employee and shall

determine the employee's standing on any eligibility list

certified or furnished to the appointing power.

(3) The three additional points awarded under paragraph

(1) shall be in addition to any points that shall be afforded

to a veteran meeting the requirements of 51 Pa.C.S. § 7103

(relating to additional points in grading civil service

examinations).

(b) Certification.--The commission shall require the board

to certify a list of displaced employees under subsection (a).

Placement on the list by the board shall establish eligibility

for the preference granted under subsection (a).

does not require a civil service examination, a displaced

employee, possessing the requisite qualifications and who is

eligible for appointment to a paid State position in offices

under the Governor's jurisdiction within the executive branch

shall be given a preference in the appointment by the appointing

authority over nonveteran candidates.

(d) (Reserved).

(e) Eligibility.--

(1) A displaced employee's eligibility for the mark-up

provided under subsection (a) and for the preference for

noncivil service positions provided under subsection (c)

shall cease upon the occurrence of one of the following:

(i) The displaced employee's appointment or hiring

into a position in the classified service existing under

the commission's jurisdiction or into a paid State

20150SB0908PN1069 - 44 -

position where no civil service examination is required.

(ii) Four years from the effective date of this

section.

(2) In order to be eligible for the mark-up provided

under subsection (a) and for the preference for noncivil

service positions provided under subsection (c), a displaced

worker must be terminated as a sole and direct result of the

decision to cease wholesale and retail operations under this

article and must work until the final day set by the board

for that employee's job function.

Section 334-A. Career training and post-secondary education

grant eligibility.

(a) Eligibility.--A displaced employee shall be eligible for

a two-year grant for attending a program of instruction at an

institution of higher education, including career training and

adult education courses of study, within one year of the date of

displacement from State service in the following amount:

(1) two thousand dollars per year for attendance on a

full-time basis; or

(2) one thousand dollars per year for attendance on a

part-time basis.

(b) Certification.--The board shall certify the list of

displaced employees to the Pennsylvania Higher Education

Assistance Agency .

grant eligibility and shall pay the grant directly to the

institution of higher education attended by the displaced

employee in a manner consistent with the Pennsylvania Higher

Education Assistance Agency's regulations.

Section 335-A. Reemployment tax credit.

20150SB0908PN1069 - 45 -

(a) Eligibility.--

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

year reemployment tax credit voucher in the amount of $2,000

per taxable year.

(2) The voucher under paragraph (1) shall be made

available to each displaced employee upon termination of

employment.

(3) Each voucher under paragraph (1) shall be certified

by the board before the voucher is provided to the displaced

employee.

(4) The Department of Revenue shall be informed of each

displaced employee to whom a voucher under paragraph (1) has

been provided.

(b) Transfer of voucher.--An employer in this Commonwealth

who employs a displaced employee on a full-time basis may, upon

transfer of the voucher from the employee to the employer, use

the voucher as a credit against the State tax liability of the

employer, if the employer can demonstrate the following:

(1) The employee for whom the tax credit is being sought

was displaced from the board within 12 months of being

employed by the employer.

(2) The former board employee has been employed by the

employer seeking the tax credit on a full-time basis for a

period not less than one year.

credit voucher to the Department of Revenue with the information

required under subsection (b)(1) and (2) to claim a tax credit

against the employer's liability for a tax identified under

subsection (d)(2).

(d) Amount of credit.--

20150SB0908PN1069 - 46 -

(1) An employer may claim a reemployment tax credit for

each job filled by a displaced employee of $2,000 per taxable

year for a maximum of two taxable years.

(2) An employer may apply the reemployment tax credit to

100% of the employer's:

(i) State corporate net income tax, capital stock

and franchise tax or the personal tax of a shareholder of

the company if the company is a Pennsylvania S

corporation.

(ii) Insurance premiums tax, gross receipts tax,

bank and trust company shares tax, mutual thrift

institutions tax or title insurance companies shares tax.

(iii) Any combination of the taxes under

subparagraphs (i) and (ii).

(3) A displaced employee whose subsequent employment is

terminated with an employer and who has utilized the

reemployment tax credit voucher to claim a one-year $2,000

tax credit may transfer the voucher to a new employer who may

use the remaining $2,000 tax credit as a claim against the

employer's tax liability for taxes identified under paragraph

(2).

(4) The term of the reemployment tax credit voucher may

not exceed two years from the date the voucher is provided to

the qualified displaced employee.

Section 336-A. Protection of existing benefits.

(a) Contract benefits.--Nothing under this section shall be

deemed to affect:

(1) Pension benefits accrued prior to the date of

separation occurring as a sole and direct result of the

divestiture of the board's wholesale and retail operations

20150SB0908PN1069 - 47 -

under this article.

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

of a preexisting collective bargaining agreement payable upon

separation from employment.

(b) Collective bargaining.--As a result of the preferential

hiring benefits, the tax credit for subsequent employers and the

protection of benefits arising from an employee's pension or

from a preexisting collective bargaining agreement under this

section, the board shall be deemed to have satisfied all

obligations to bargain over the impact of the decision to cease

wholesale and retail operations under this article which may

arise under the act of July 23, 1970 (P.L.563, No.195), known as

the Public Employe Relations Act.

regulation, ordinance or resolution of a political subdivision

regarding notice to displaced workers.

SUBARTICLE E

MISCELLANEOUS PROVISIONS

Section 341-A. License renewals.

(a) Renewal.--

(1) Wine and spirits wholesale licenses issued under

this article shall be subject to renewal every two years,

with validation.

(2) The application for renewal shall be submitted on a

form provided by the board at least 30 days prior to the

expiration of the wine and spirits wholesale license and

shall include, at a minimum, an update of the information

contained in the initial and prior renewal applications and

the payment of any renewal fee required under this article.

(3) A wine and spirits wholesale license for which a

20150SB0908PN1069 - 48 -

completed renewal application and fee has been received by

the board shall continue to be valid until the board sends

written notification to the licensee that the board has

denied the renewal of the license.

(b) Fee.--

(1) A renewal fee of $5,000 shall be due upon

application for the renewal or validation of a wine and

spirits wholesale license.

(2) The board may adjust the renewal fee to ensure that

the fee adequately recovers the costs associated with

investigating the renewal application.

Licensing may object to the renewal of licenses issued under

this article pursuant to the same authority granted under

section 470. Hearings and appeals arising from the objections

shall be conducted in accordance with section 464.

(d) Revocation of operating authority.--

(1) The board may revoke the operating authority of a

wine and spirits wholesale license issued under this article

if it finds that the licensee or any of its affiliates,

executive officers, directors or general or limited partners

or persons holding a controlling interest in the licensee:

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

(ii) has furnished the board with false or

misleading information; or

(iii) is no longer reputable or suitable for

licensure.

(2) If a wine and spirits wholesale license is revoked

or not renewed, the wine and spirits wholesale licensee's

authorization to conduct business as a wine and spirits

20150SB0908PN1069 - 49 -

wholesale licensee shall immediately cease until the board

notifies the licensee that the operating authority has been

reinstated.

(e) Affirmative duty.--Nothing under this section shall

relieve a wine and spirits wholesale licensee of the affirmative

duty to notify the board of changes relating to the status of

its license or to other information contained in the application

materials filed with the board.

Section 342-A. Revocation, suspension and fines.

(a) Authority of enforcement bureau.--The enforcement bureau

shall have the authority to issue a citation against a wine and

spirits wholesale licensee in the same manner as under section

471. The bureau may issue a citation to the licensee based on

the following conduct:

(1) The licensee violated any of the following:

(i) A provision of this act.

(ii) The regulations of the board.

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

(iv) The licensee violated any other law of this

Commonwealth.

(2) The licensee knowingly presented to the board false,

incomplete or misleading information.

(3) The licensee pleaded guilty, entered a plea of nolo

contendere or has been found guilty of a felony by a judge or

jury in a Federal or State court.

(4) The licensee failed to operate the business or to

provide a reasonable level of consumer service.

(5) The licensee failed to remit taxes as required.

(b) Administrative Law Judge.--Enforcement matters shall be

heard by an administrative law judge in the same manner as under

20150SB0908PN1069 - 50 -

section 471. The administrative law judge may issue a fine and

either suspend or revoke the license. Appeals may be taken in

the same manner as under section 471.

premises if any of the following apply:

(1) The wine and spirits wholesale license or retail

permit applicable to that premises has been suspended or

revoked or has expired.

(2) The operating authority for the wine and spirits

wholesale license or retail permit has been revoked.

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

(a) Prohibition.--No person may sell, assign or transfer

their interest in a wine and spirits wholesale license granted

under this article to another person until the board has

received, investigated and approved a transfer application.

(b) Compliance.--Any person to whom a wine and spirits

wholesale license is transferred must comply with this article

prior to the transfer of the license.

(1) The transfer of a wine and spirits wholesale license

shall be subject to a transfer fee equal to 1% of the license

fee paid for the license and shall be paid as a condition of

the transfer of the license.

(2) The transfer fee applicable to the transfer of

brands of liquor under section 326-A(b) shall not apply to

the transfer of a wine and spirits wholesale license.

(d) Change of control.--For the purposes of this section, a

change of control of a wine and spirits wholesale licensee shall

be deemed to be a sale, assignment or transfer of a wine and

spirits wholesale license. A wine and spirits wholesale licensee

20150SB0908PN1069 - 51 -

must notify the board immediately upon becoming aware of a

proposed or contemplated change of control.

Section 344-A. The State Stores Fund.

All fees, assessments, bid amounts or other charges paid by

wine and spirits wholesale license or retail permit applicants

or licensees shall be paid or transferred into a restricted

account which is hereby established in The State Stores Fund.

Funds in the restricted account shall be used for programs under

Subarticle D and any other use specified by statute. Any fines

collected by the administrative law judge from the licensees

shall be remitted to the enforcement bureau for continued

enforcement efforts.

Section 11. Section 401 of the act, amended December 22,

2011 (P.L.530, No.113), is amended to read:

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 or a wine and spirits

wholesale licensee 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. Such licenses

20150SB0908PN1069 - 52 -

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 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.

(b) The board may issue to any club which caters to groups

of non-members, either privately or for functions, a catering

license, and the board shall, by its rules and regulations,

define what constitutes catering under this subsection except

that any club which is issued a catering license shall not be

prohibited from catering on Sundays during the hours which the

club may lawfully serve liquor, malt or brewed beverages.

Section 12. Section 405(c) of the act, amended April 29,

1994 (P.L.212, No.30), is amended to read:

Section 405. License Fees.--* * *

collected by the board for the use of the municipalities in

20150SB0908PN1069 - 53 -

which such fees were collected[.] if the municipalities receive

services from a municipal police department. Fees collected in

municipalities that do not receive service from a municipal

police department must be transferred to the enforcement bureau

for continued enforcement efforts.

* * *

Section 13. Section 406(e)(1) of the act, amended December

22, 2011 (P.L.530, No.113), is amended and the subsection is

amended by adding a paragraph to read:

Section 406. Sales by Liquor Licensees; Restrictions.--* * *

(e) (1) The holder of a hotel license or the holder of a

restaurant license located in a hotel may allow persons to

transport liquor or malt or brewed beverages from the licensed

portion of the premises to the unlicensed portion of the

premises, so long as the liquor or malt or brewed beverages

remain on the hotel property. In addition, a holder of a

restaurant or club license located on a golf course may sell,

furnish or give liquor or malt or brewed beverages on the

unlicensed portion of the golf course so long as the liquor or

malt or brewed beverages remain on the restaurant, club or golf

course. The holder of a restaurant license located immediately

adjacent to and under the same roof of a bowling center may

allow persons to transport liquor or malt or brewed beverages

from the licensed portion of the premises to the unlicensed

portion of the premises, so long as the liquor or malt or brewed

beverages remain within the bowling center. In addition, the

holder of a hotel license or a restaurant license may allow

persons who have purchased but only partially consumed a bottle

of wine on the premises to remove the bottle from the premises

so long as the bottle was purchased in conjunction with a meal

20150SB0908PN1069 - 54 -

which was consumed on the premises and so long as the bottle is

resealed. Notwithstanding this paragraph, the holder of a hotel

license or a restaurant license may sell up to three liters of

wine for consumption off the licensed premises so long as the

bottles remain sealed and the holder has obtained a wine and

spirits retail permit. In addition, the holder of a hotel

license or a restaurant license may sell up to three liters of

spirits for consumption off the licensed premises so long as the

bottle remains sealed and the holder has obtained a wine and

spirits retail permit. For purposes of this subsection, "wine"

shall have the meaning given to it under section 488(i). For

purposes of this section and section 432, "meal" shall mean food

prepared on the premises, sufficient to constitute breakfast,

lunch or dinner; it shall not mean a snack, such as pretzels,

popcorn, chips or similar food.

* * *

(3) The holder of a restaurant license whose premises has an

interior connection to a grocery store may allow a purchase of

beer, wine and spirits for consumption off the premises to be

paid for at a point of sale other than a point of sale located

on the licensed premises. The purchase of beer, wine or spirits

may not occur at a point of sale where the customer scans his

own purchases. All sales of beer and wine shall occur at a point

of sale manned by a sales clerk who is at least twenty-one years

of age.

Section 14. Section 408.12(g) and (h) of the act, added July

1, 1994 (P.L.402, No.61), are amended to read:

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

(g) Any wine sold under this section shall be purchased from

a Pennsylvania Liquor Store, a wine and spirits retail permit

20150SB0908PN1069 - 55 -

holder, a Pennsylvania limited winery or any seller authorized

to sell wine by the bottle or case in this Commonwealth,

including a restaurant liquor licensee or hotel liquor licensee,

or shall be donated by a person who is neither a licensee nor a

permittee who has legally acquired the wine and legally

possesses it in this Commonwealth.

(h) If any wine sold under this section is purchased from a

seller other than a Pennsylvania Liquor Store, wine and spirits

retail permit holder, restaurant liquor licensee, hotel liquor

licensee or [a] Pennsylvania limited winery, the permittee shall

provide thirty days' notice to the board of its intent to

purchase such wine. The notice shall include a description of

the wine to be purchased, the quantity to be purchased, the name

of the seller and any other information which the board may

require. The permittee shall comply with all board regulations

regarding taxes and fees.

* * *

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

Section 410. Liquor Importers' Licenses; Fees; Privileges;

Restrictions.--* * *

(e) Importers' licenses shall permit the holders thereof to

bring or import liquor from other states, foreign countries, or

insular possessions of the United States, and purchase liquor

from manufacturers located within this Commonwealth, to be sold

outside of this Commonwealth or to Pennsylvania Liquor Stores or

wine and spirits wholesale licensees within this Commonwealth,

or when in original containers of ten gallons or greater

capacity, to licensed manufacturers within this Commonwealth.

All importations of liquor into Pennsylvania by the licensed

importer shall be consigned to the board or the principal place

20150SB0908PN1069 - 56 -

of business or authorized place of storage maintained by the

licensee or a wine and spirits wholesale licensee.

* * *

Section 16. Section 411 of the act is amended by adding a

subsection to read:

Section 411. Interlocking Business Prohibited.--* * *

(f) (1) Notwithstanding any other provision of law, a

manufacturer or licensee and its officers, directors,

shareholders, servants, agents or employes may contribute, and a

manufacturer or licensee and its officers, directors,

shareholders, servants, agents or employes may accept moneys or

other things of value solely for the administration of a

Responsible Alcohol Management Training Program for alcohol

service personnel as provided for under section 471.1 of this

act. The moneys or other things of value may be provided by or

to a manufacturer or licensee and its officers, directors,

shareholders, servants, agents or employes directly or by or to

a trade organization consisting, in whole or in part, of a group

of licensees.

(2) The manufacturer, licensee and trade organization

associated with the person providing the moneys or other things

of value must keep a record of the value of the moneys or other

things of value provided, the date provided and the entity to

whom it was provided, as part of the records required under

section 493(12) of this act.

(3) The manufacturer, licensee and trade organization

associated with the person receiving moneys or other things of

value must keep a record of the value of the moneys or other

things of value used, as part of the records required under

section 493(12) of this act.

20150SB0908PN1069 - 57 -

Section 17. Section 431(b) of the act, amended December 8,

2004 (P.L.1810, No.239), is amended 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 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 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

20150SB0908PN1069 - 58 -

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

in quantities above specified anywhere within the Commonwealth

of Pennsylvania, which, in the case of distributors, have been

20150SB0908PN1069 - 59 -

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. If the holder of a

distributor license applies for and receives a wine and spirits

retail permit issued pursuant to Article III-A, that distributor

shall be authorized to sell wine and/or spirits on the same

premises where malt or brewed beverages are sold. 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

20150SB0908PN1069 - 60 -

for hire shall, as required in Article V of this act, keep

complete and accurate records of all transactions, inventory,

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

20150SB0908PN1069 - 61 -

area for which the said distributor or importing distributor is

given distributing rights, and such distributor or importing

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.

* * *

Section 18. Sections 436(e) and 437(e) of the act are

amended to read:

Section 436. Application for Distributors', Importing

Distributors' and Retail Dispensers' Licenses.--Application for

distributors', importing distributors' and retail dispensers'

licenses, or for the transfer of an existing license to another

20150SB0908PN1069 - 62 -

premises not then licensed or to another person, shall contain

or have attached thereto the following information and

statements:

* * *

(e) That the applicant is not, or in case of a partnership

or association, that the members or partners are not, and in the

case of a corporation, that the officers and directors are not,

in any manner pecuniarily interested, either directly or

indirectly, in the profits of any other class of business

regulated under this article, except as hereinafter permitted.

The requirements of this section shall not prohibit an importing

distributor from holding a wine and spirits wholesale license

under the conditions provided under Article III-A.

* * *

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

* *

(e) No distributor's or importing distributor's license

shall be issued for any premises in any part of which there is

operated any retail license for the sale of liquor or malt or

brewed beverages. The requirements of this section shall not

prohibit an importing distributor from holding a wine and

spirits wholesale license under the conditions provided under

Article III-A.

* * *

Section 19. Section 438 of the act, amended June 25, 2010

(P.L.217, No.35), is amended to read:

Section 438. Number and Kinds of Licenses Allowed Same

Licensee.--(a) Any retail dispenser may be granted licenses to

maintain, operate or conduct any number of places for the sale

of malt or brewed beverages, but a separate license must be

20150SB0908PN1069 - 63 -

secured for each place where malt or brewed beverages are sold.

(b) [No person shall possess or be issued more than one

distributor's or importing distributor's license.] A person may

not possess or be issued more than ten distributor licenses.

except that a holder of a retail dispenser's license may also be

a holder of a retail liquor license: Provided, however, That

nothing contained in this section shall be construed to prohibit

a member of the governing board of a public authority created

under subdivision (n) of Article XXIII of the act of August 9,

1955 (P.L.323, No.130), known as "The County Code," from having

an interest in a distributor or importing distributor license

notwithstanding the fact that the public authority has an

interest in one or more retail licenses or acts as a landlord

for one or more retail licenses: And, provided further, That,

notwithstanding any other provision of this section, an entity

may acquire both a manufacturer's license or a limited winery

license and a hotel, restaurant or retail dispenser license for

use at the same location and more than one location may be so

licensed. The licenses and a person's interest in the licenses

or in the entity holding the licenses shall not be subject to

this section.

Section 20. Section 441 of the act is amended by adding a

subsection to read:

Section 441. Distributors' and Importing Distributors'

Restrictions on Sales, Storage, Etc.--* * *

(j) T he holder of a distributor's license may sell unlimited

quantities of wine for consumption off the licensed premises so

long as the bottles remain sealed and the holder has obtained a

wine and spirits retail permit. In addition, the holder of a

20150SB0908PN1069 - 64 -

distributor's license may sell unlimited quantities of spirits

for consumption off the licensed premises so long as the bottle

remains sealed and the holder has obtained a wine and spirits

retail permit.

Section 21. Section 443(b) of the act, amended May 31, 1996

(P.L.312, No.49), is amended and the section is amended by

adding a subsection to read:

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

(b) No distributor or importing distributor and no officer

or director of any distributor or importing distributor shall at

the same time be a manufacturer, a retail dispenser or a liquor

licensee, or be an officer, director, stockholder or creditor of

a manufacturer, a retail dispenser or a liquor licensee, or,

directly or indirectly, own any stock of, or have any financial

interest in, or be the owner, proprietor or lessor of, any place

covered by any other malt or brewed beverage or liquor license.

The requirements of this section or any other provision of law,

shall not prohibit an importing distributor from holding a wine

and spirits wholesale license issued pursuant to Article III-A.

* * *

(h) (1) Notwithstanding any other provision of law, a

manufacturer or licensee and its officers, directors,

shareholders, servants, agents or employes may contribute and a

manufacturer or licensee and its officers, directors,

shareholders, servants, agents or employes may accept moneys or

other things of value solely for the administration of a

responsible alcohol management training program for alcohol

service personnel as provided under section 471.1. The moneys or

other things of value may be provided by or to a manufacturer or

licensee and its officers, directors, shareholders, servants,

20150SB0908PN1069 - 65 -

agents or employes directly of, by or to a trade organization

consisting, in whole or in part, of a group of licensees.

(2) The manufacturer, licensee and trade organization

associated with the person providing moneys or other things of

value must keep a record of the value of the moneys or other

things of value provided, the date provided and the entity to

whom the moneys or other things of value were provided, as part

of the records required under section 493(12).

(3) The manufacturer, licensee and trade organization

associated with the person receiving the moneys or other things

of value must keep a record of the value of the moneys or other

things of value received, the date provided, the entity from

whom the moneys or other things of value were received and the

manner in which the moneys or other things of value were used,

as part of the records required under section 493(12) of this

act.

Section 22. Section 470(a) of the act, amended December 22,

2011 (P.L.530, No.113), is amended to read:

Section 470. Renewal of Licenses; Temporary Provisions for

Licensees in Armed Service.--(a) All applications for renewal

or validation of licenses under the provisions of this article

shall be filed with tax clearance from the Department of Revenue

and the Department of Labor and Industry and requisite license

and filing fees, including an application surcharge of seven

hundred dollars ($700), at least sixty days before the

expiration date of same: Provided, however, That the board, in

its discretion, may accept nunc pro tunc a renewal application

filed less than sixty days before the expiration date of the

license with the required fees, upon reasonable cause shown and

the payment of an additional filing fee of one hundred dollars

20150SB0908PN1069 - 66 -

($100.00) for late filing: And provided further, That except

where the failure to file a renewal application on or before the

expiration date has created a license quota vacancy after said

expiration date which has been filled by the issuance of a new

license, after such expiration date, but before the board has

received a renewal application nunc pro tunc within the time

prescribed herein the board, in its discretion, may, after

hearing, accept a renewal application filed within two years

after the expiration date of the license with the required fees

upon the payment of an additional filing fee of two hundred

fifty dollars ($250.00) for late filing. Where any such renewal

application is filed less than sixty days before the expiration

date, or subsequent to the expiration date, no license shall

issue upon the filing of the renewal application until the

matter is finally determined by the board and if an appeal is

taken from the board's action the courts shall not order the

issuance of the renewal license until final determination of the

matter by the courts. 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 this section. A

renewal application will not be considered filed unless

accompanied by the requisite filing and license fees and any

additional filing fee required by this section. Unless the board

shall have given ten days' previous notice to the applicant of

objections to the renewal of his license, based upon violation

by the licensee or his servants, agents or employes of any of

20150SB0908PN1069 - 67 -

the laws of the Commonwealth or regulations of the board

relating to the manufacture, transportation, use, storage,

importation, possession or sale of liquors, alcohol or malt or

brewed beverages, or the conduct of a licensed establishment, or

unless the applicant has by his own act become a person of ill

repute, or unless the premises do not meet the requirements of

this act or the regulations of the board, the license of a

licensee shall be renewed. Notwithstanding any other provision

of this act, a noise violation shall not be the sole basis for

objection by the board to the renewal of a license unless the

licensee has received six prior adjudicated noise citations

within a twenty-four-month period.

* * *

Section 23. Section 471(b) and (e) of the act, amended or

added July 6, 2005 (P.L.135, No.39) and April 13, 2006 (P.L.78,

No.26), are amended to read:

Section 471. Revocation and Suspension of Licenses; Fines.--

* * *

(b) Hearing on such citations shall be held in the same

manner as provided herein for hearings on applications for

license. Upon such hearing, if satisfied that any such violation

has occurred or for other sufficient cause, the administrative

law judge shall immediately suspend or revoke the license, or

impose a fine of not less than [fifty dollars ($50)] two hundred

fifty dollars ($250) nor more than [one thousand dollars

($1,000)] five thousand dollars ($5,000), or both, notifying the

licensee by registered letter addressed to his licensed

premises. If the licensee has been cited and found to have

violated section 493(1) insofar as it relates to sales to minors

or sales to a visibly intoxicated person, section 493(10)

20150SB0908PN1069 - 68 -

insofar as it relates to lewd, immoral or improper entertainment

or section 493(14), (16) or (21), or has been found to be a

public nuisance pursuant to section 611, or if the owner or

operator of the licensed premises or any authorized agent of the

owner or operator has been convicted of any violation of the act

of April 14, 1972 (P.L.233, No.64), known as "The Controlled

Substance, Drug, Device and Cosmetic Act," or of 18 Pa.C.S. §

5902 (relating to prostitution and related offenses) or 6301

(relating to corruption of minors), at or relating to the

licensed premises, the administrative law judge shall

immediately suspend or revoke the license, or impose a fine of

not less than [one thousand dollars ($1,000)] five thousand

dollars ($5,000) nor more than [five thousand dollars ($5,000)]

ten thousand dollars ($10,000), or both. However, if a licensee

has been cited and found to have violated section 493(1) as it

relates to sales to minors or sales to a visibly intoxicated

person but at the time of the sale the licensee was in

compliance with the requirements set forth in section 471.1 and

the licensee had not sold to minors or visibly intoxicated

persons in the previous four years, then the administrative law

judge shall immediately suspend or revoke the license, or impose

a fine of not less than [fifty dollars ($50)] one thousand

dollars ($1,000) nor more than [one thousand dollars ($1,000)]

five thousand dollars ($5,000), or both. The administrative law

judge shall notify the licensee by registered mail, addressed to

the licensed premises, of such suspension, revocation or fine.

In the event the fine is not paid within twenty days of the

adjudication, the administrative law judge shall suspend or

revoke the license, notifying the licensee by registered mail

addressed to the licensed premises. Suspensions and revocations

20150SB0908PN1069 - 69 -

shall not go into effect until thirty days have elapsed from the

date of the adjudication during which time the licensee may take

an appeal as provided for in this act, except that revocations

mandated in section 481(c) shall go into effect immediately. Any

licensee whose license is revoked shall be ineligible to have a

license under this act until the expiration of three years from

the date such license was revoked. In the event a license is

revoked, no license shall be granted for the premises or

transferred to the premises in which the said license was

conducted for a period of at least one year after the date of

the revocation of the license conducted in the said premises,

except in cases where the licensee or a member of his immediate

family is not the owner of the premises, in which case the board

may, in its discretion, issue or transfer a license within the

said year. In the event the bureau or the person who was fined

or whose license was suspended or revoked shall feel aggrieved

by the adjudication of the administrative law judge, there shall

be a right to appeal to the board. The appeal shall be based

solely on the record before the administrative law judge. The

board shall only reverse the decision of the administrative law

judge if the administrative law judge committed an error of law,

abused its discretion or if its decision is not based on

substantial evidence. In the event the bureau or the person who

was fined or whose license was suspended or revoked shall feel

aggrieved by the decision of the board, there shall be a right

to appeal to the court of common pleas in the same manner as

herein provided for appeals from refusals to grant licenses.

Each of the appeals shall act as a supersedeas unless, upon

sufficient cause shown, the reviewing authority shall determine

otherwise; however, if the licensee has been cited and found to

20150SB0908PN1069 - 70 -

have violated section 493(1) insofar as it relates to sales to

minors or sales to a visibly intoxicated person, section 493(10)

insofar as it relates to lewd, immoral or improper entertainment

or section 493(14), (16) or (21), or has been found to be a

public nuisance pursuant to section 611, or if the owner or

operator of the licensed premises or any authorized agent of the

owner or operator has been convicted of any violation of "The

Controlled Substance, Drug, Device and Cosmetic Act," or of 18

Pa.C.S. § 5902 or 6301, at or relating to the licensed premises,

or if the license has been revoked under section 481(c), its

appeal shall not act as a supersedeas unless the reviewing

authority determines otherwise upon sufficient cause shown. In

any hearing on an application for a supersedeas under this

section, the reviewing authority may consider, in addition to

other relevant evidence, documentary evidence, including records

of the bureau, showing the prior history of citations, fines,

suspensions or revocations against the licensee; and the

reviewing authority may also consider, in addition to other

relevant evidence, evidence of any recurrence of the unlawful

activity occurring between the date of the citation which is the

subject of the appeal and the date of the hearing. If the

reviewing authority is the board, no hearing shall be held on

the application for a supersedeas; however, a decision shall be

made based on the application, answer and documentary evidence

under this subsection. If the application for a supersedeas is

for a license that has been revoked under section 481(c), the

reviewing authority shall grant the supersedeas only if it finds

that the licensee will likely prevail on the merits. No penalty

provided by this section shall be imposed for any violations

provided for in this act unless the bureau notifies the licensee

20150SB0908PN1069 - 71 -

of its nature within thirty days of the completion of the

investigation.

* * *

(e) If a licensee has been cited and found to have violated

section 493(1) for a second or subsequent offense as it relates

to sales to minors or sales to a visibly intoxicated person, the

administrative law judge, in addition to the penalties set forth

in subsection (b), shall impose a suspension of at least two

consecutive weekend days when the offense is a second offense or

two consecutive Saturdays of operation if the licensee does not

hold a Sunday sales permit, and a suspension of at least seven

consecutive days of operation when the offense is a third or

subsequent offense. The mandatory suspension provision shall not

apply to licensees which also hold a license issued by the

Pennsylvania Gaming Control Board for the use of their premises.

Further, the administrative law judge may, in such instances,

require the licensee to comply with the requirements set forth

in section 471.1 pertaining to responsible alcohol management.

Such compliance may be required for a period of up to one year.

Failure to adhere with such an order is sufficient cause for the

issuance of a citation under subsection (a).

* * *

Section 24. Section 471.1(a) of the act, added December 20,

2000 (P.L.992, No.141), is amended and the section is amended by

adding subsections to read:

Section 471.1. Responsible Alcohol Management.--(a) The

board is authorized to offer a responsible alcohol service

program to licensees. The program shall consist of four parts:

new employe orientation, training for alcohol service personnel,

manager/owner training and the displaying of responsible alcohol

20150SB0908PN1069 - 72 -

service signage. New employe orientation shall consist of

orienting newly hired alcohol service personnel as to

Pennsylvania law relating to the sale, furnishing or serving of

alcoholic beverages to minors and visibly intoxicated persons.

It shall also mean orienting newly hired alcohol service

personnel to responsible server practices, as the term is

defined by the board, through regulation. Training for alcohol

service personnel shall be as set forth by the board, but at

minimum it shall consist of training to prevent service of

alcohol to minors and to visibly intoxicated persons.

Manager/owner training shall be as set forth by the board, but

at a minimum it shall consist of training on how to monitor

employes, proper service of alcohol and how to develop an

appropriate alcohol service policy. The responsible alcohol

service signage shall be as set forth by the board and shall

consist of signage dealing with the licensee's policy against

sales to minors and visibly intoxicated persons. Alcohol service

personnel training [may] shall be conducted by [the board or by

an entity] entities certified by the board to conduct such

training.

(a.1) It is the intent of the General Assembly that the

board's Bureau of Alcohol Education expand training

opportunities for alcohol service personnel by certifying all

private third-party providers of alcohol education who, at a

minimum, teach the information contained in the Bureau of

Alcohol Education's standard curriculum. Private industry in

this Commonwealth engaged in the business of training alcohol

service personnel will become more competitive by creating the

opportunity for enhanced training beyond the scope of the Bureau

of Alcohol Education's standard curriculum while not

20150SB0908PN1069 - 73 -

compromising the standards set forth by the board. It is further

the intent of the General Assembly that the board allow private

third-party providers of alcohol education flexibility in the

manner by which they present training materials to alcohol

service personnel. The private industry offers a variety of

successful training programs, and certifying these entities will

not diminish the training received, but will enhance it. It is

further the intent of the General Assembly to require the Bureau

of Alcohol Education to notify within thirty days those private

third-party providers of alcohol education whose curriculum is

deemed deficient and provide a written explanation detailing

what content is deemed to be deficient. By establishing a

certification process, private industry will have a more

predictable and transparent relationship with the board and a

better understanding of the Bureau of Alcohol Education's

certification process. Private third-party providers of training

to alcohol service personnel will be better able to:

(1) Provide the opportunity to more easily receive

additional industry-related certifications, making the service

personnel more marketable to employers and better trained in

their field.

(2) Operate more efficiently with the board.

(3) Increase the amount of trainers in this Commonwealth,

which will allow business to more easily expand.

* * *

(h) Within sixty days of the effective date of this

subsection, the board shall certify private third-party

providers of training under subsection (b) that cover, at a

minimum, the content contained in the board's Bureau of Alcohol

Education's standard curriculum. The following shall apply:

20150SB0908PN1069 - 74 -

(1) If the third-party provider's curriculum is not

equivalent to the standard curriculum, the provider shall be

advised in writing by the board as to where the curriculum is

deficient.

(2) The board shall permit private third-party providers of

alcohol training to modify the order in which the content of the

Bureau of Alcohol Education's standard curriculum is presented

so long as the material is taught.

Section 25. Section 474.1(g) of the act, amended November

29, 2006 (P.L.1421, No.155), is amended to read:

Section 474.1. Surrender of Restaurant, Eating Place Retail

Dispenser, Hotel, Importing Distributor and Distributor License

for Benefit of Licensee.--* * *

(g) (1) A licensee whose license is subject to this section

may, upon written request, apply to the board to allow the

license to remain in safekeeping for an additional one year. The

written request must be accompanied by a [five thousand dollar

($5,000)] thirty thousand dollar ($30,000) fee for licenses

placed in safekeeping from counties of the first class, second

class, second class A, third class and fourth class and a fee of

[two thousand five hundred dollars ($2,500)] fifteen thousand

dollars ($15,000) for licenses placed in safekeeping from

counties of the fifth through eighth classes. The board shall

approve the request unless the license or licensee no longer

meets the requirements of this act or the board's regulations.

The fee collected shall be paid into the State Treasury through

the Department of Revenue into the State Store Fund.

(2) A licensee whose license remains in safekeeping after

the expiration of an approved additional one-year period may

submit a written request for additional one-year periods;

20150SB0908PN1069 - 75 -

however, each such request must be accompanied by a [five

thousand dollar ($5,000)] thirty thousand dollar ($30,000) fee

for licenses placed in safekeeping from counties of the first

class, second class, second class A, third class and fourth

class and a fee of [two thousand five hundred dollars ($2,500)]

fifteen thousand dollars ($15,000) for licenses placed in

safekeeping from counties of the fifth through eighth classes.

Section 26. Section 491 of the act, amended October 5, 1994

(P.L.522, No.77), February 21, 2002 (P.L.103, No.10), December

9, 2002 (P.L.1653, No.212), July 17, 2003 (P.L.63, No.15),

December 22, 2011 (P.L.530, No.113) and July 5, 2012 (P.L.1007,

No.116), is amended to read:

Section 491. Unlawful Acts Relative to Liquor, Alcohol and

Liquor Licensees.--

It shall be unlawful--

(1) Sales of Liquor. For any person, by himself or by an

employe or agent, to expose or keep for sale, or directly or

indirectly, or upon any pretense or upon any device, to sell or

offer to sell any liquor within this Commonwealth, except in

accordance with the provisions of this act and the regulations

of the board. This clause shall not be construed to prohibit

hospitals, physicians, dentists or veterinarians who are

licensed and registered under the laws of this Commonwealth from

administering liquor in the regular course of their professional

work and taking into account the cost of the liquor so

administered in making charges for their professional service,

or a pharmacist duly licensed and registered under the laws of

this Commonwealth from dispensing liquor on a prescription of a

duly licensed physician, dentist or veterinarian, or selling

medical preparations containing alcohol, or using liquor in

20150SB0908PN1069 - 76 -

compounding prescriptions or medicines and making a charge for

the liquor used in such medicines, or a manufacturing pharmacist

or chemist from using liquor in manufacturing preparations unfit

for beverage purposes and making a charge for the liquor so

used. All such liquors so administered or sold by hospitals,

physicians, dentists, veterinarians, pharmacists or chemists

shall conform to the Pharmacopoeia of the United States, the

National Formulary, or the American Homeopathic Pharmacopoeia.

This clause shall not be construed to prohibit an executor or an

administrator of a decedent's estate from selling privately or

at public auction liquor which was an asset of the decedent. The

board shall establish regulations to ensure that State taxes

from the sales will be paid by the estate from the proceeds of

the sale. The board may not prohibit a sale of liquor for the

reason that it was not lawfully acquired prior to January 1,

1934 or has not been purchased from a Pennsylvania Liquor Store

or in compliance with Pennsylvania law.

(2) Possession or Transportation of Liquor or Alcohol. For

any person, except a manufacturer or the board or the holder of

a sacramental wine license or of an importer's license or a wine

and spirits retail permit holder, to possess or transport any

liquor or alcohol within this Commonwealth which was not

lawfully acquired prior to January first, one thousand nine

hundred and thirty-four, or has not been purchased from a

Pennsylvania Liquor Store, a wine and spirits wholesale licensee

or a licensed limited winery in Pennsylvania, except in

accordance with section 488 or the board's regulations. In

addition, it shall be lawful for anyone to possess miniatures

totaling less than one gallon purchased in another state or a

foreign country. The burden shall be upon the person possessing

20150SB0908PN1069 - 77 -

or transporting such liquor or alcohol to prove that it was so

acquired. Notwithstanding this section or any other provision of

the law, wine may be produced by any person without a license if

the wine is not produced for sale and total production does not

exceed two hundred gallons per calendar year. Wine produced in

accordance with this clause may be used at organized affairs,

exhibitions, competitions, contests, tastings or judgings if it

is not sold or offered for sale.

None of the provisions herein contained shall prohibit nor

shall it be unlawful for any person to import into Pennsylvania,

transport or have in his possession, an amount of liquor not

exceeding one gallon in volume upon which a State tax has not

been paid, if it can be shown to the satisfaction of the board

that such person purchased the liquor in a foreign country or

United States territory and was allowed to bring it into the

United States. Neither shall the provisions contained herein

prohibit nor make it unlawful for (i) any member of the armed

forces on active duty, or (ii) any retired member of the armed

forces, or (iii) any totally disabled veteran, or (iv) the

spouse of any person included in the foregoing classes of

persons to import into Pennsylvania, transport or have in his

possession an amount of liquor not exceeding one gallon per

month in volume upon which the State tax has not been paid, so

long as such liquor has been lawfully purchased from a package

store established and maintained under the authority of the

United States and is in containers identified in accordance with

regulations issued by the Department of Defense. Such liquor

shall not be possessed, offered for sale or sold on any licensed

premises. The term "package store" as used in this clause shall

mean those retail operations located on any of the United States

20150SB0908PN1069 - 78 -

military installations, including an installation of the Army,

Navy, Air Force, Marine Corps or Coast Guard.

None of the provisions herein contained shall prohibit nor

shall it be unlawful for any consul general, consul or other

diplomatic officer of a foreign government to import into

Pennsylvania, transport or have in his possession liquor upon

which a State tax has not been paid, if it can be shown to the

satisfaction of the board that such person acquired the liquor

in a foreign country and was allowed to bring it into the United

States. Such liquor shall not be possessed, offered for sale or

sold on any licensed premises.

Any person violating the provisions of this clause for a

first offense involving the possession or transportation in

Pennsylvania of any liquor in a package (bottle or other

receptacle) or wine not purchased from a Pennsylvania Liquor

Store, a wine or spirits wholesale licensee, a wine and spirits

retail permit holder or from a licensed limited winery in

Pennsylvania, with respect to which satisfactory proof is

produced that the required Federal tax has been paid and which

was purchased, procured or acquired legally outside of

Pennsylvania shall upon conviction thereof in a summary

proceeding be sentenced to pay a fine of twenty-five dollars

($25) for each such package, plus costs of prosecution, or

undergo imprisonment for a term not exceeding ninety (90) days.

Each full quart or major fraction thereof shall be considered a

separate package (bottle or other receptacle) for the purposes

of this clause. Such packages of liquor shall be forfeited to

the Commonwealth in the manner prescribed in Article VI of this

act but the vehicle, boat, vessel, animal or aircraft used in

the illegal transportation of such packages shall not be subject

20150SB0908PN1069 - 79 -

to forfeiture: Provided, however, That if it is a second or

subsequent offense or if it is established that the illegal

possession or transportation was in connection with a commercial

transaction, then the other provisions of this act providing for

prosecution as a misdemeanor and for the forfeiture of the

vehicle, boat, vessel, animal or aircraft shall apply.

(3) Purchase of Liquor or Alcohol. For any person within

this Commonwealth, by himself or by an employe or agent, to

attempt to purchase, or directly or indirectly, or upon any

pretense or device whatsoever, to purchase any liquor or alcohol

from any person or source [other than a Pennsylvania Liquor

Store], except in accordance with the provisions of this act or

the regulations of the board.

(4) Possession and Use of Decanters. For any person to use

decanters of alcoholic beverages except that the use of

decanters or other similar receptacles by licensees shall be

permitted in the case of wines and then only in accordance with

the regulations of the board, but nothing herein contained shall

prohibit the manufacture and possession of wine as provided in

clause (2) of this section.

(5) Failure to Properly Dispose of Empty Liquor Containers.

For any restaurant, hotel or club licensee, his servants, agents

or employes, to fail to break any package in which liquors were

contained, except those decanter packages that the board

determines to be decorative, within twenty-four hours after the

original contents were removed therefrom, unless the licensee

participates in either a municipal recycling program, in

accordance with the act of July 28, 1988 (P.L.556, No.101),

known as the "Municipal Waste Planning, Recycling and Waste

Reduction Act," or a voluntary recycling program. The licensee

20150SB0908PN1069 - 80 -

shall provide proof in writing of the participation in a

recycling program upon the demand of the Bureau of Liquor

Control Enforcement of the Pennsylvania State Police. The proof

of participation shall be provided in a manner as prescribed by

the Pennsylvania Liquor Control Board.

(6) Sales by Restaurant and Hotel Liquor Licensees. For any

restaurant or hotel licensee, his servants, agents or employes,

to sell any liquor or malt or brewed beverages for consumption

on the licensed premises except in a room or rooms or place on

the licensed premises at all times accessible to the use and

accommodation of the general public, but this section shall not

be interpreted to prohibit a restaurant liquor licensee from

providing private affairs the primary function of which is for

catering only to weddings or special occasions arranged twenty-

four hours in advance, nor to prohibit a hotel licensee, or a

restaurant licensee when the restaurant is located in a hotel,

from selling liquor or malt or brewed beverages in any room of

such hotel occupied by a bona fide guest or to prohibit a

restaurant licensee from selling liquor or malt or brewed

beverages in a bowling alley where the restaurant and bowling

alley are immediately adjacent and under the same roof.

(7) Sales of Liquor by Manufacturers and Licensed Importers.

For any manufacturer or licensed importer of liquor in this

Commonwealth, his agents, servants or employes, to sell or offer

to sell any liquor in this Commonwealth except to the board for

use in Pennsylvania Liquor Stores, a wine and spirits wholesale

licensee, and in the case of a manufacturer, to the holder of a

sacramental wine license or an importer's license.

Notwithstanding any other provision of this act, a manufacturer

or licensed importer may sell or offer to sell liquor for

20150SB0908PN1069 - 81 -

delivery outside of this Commonwealth.

(8) Importation and Sales of Alcohol. For any person, to

import alcohol into this Commonwealth, or to sell alcohol to any

person, except in accordance with section 488 and the provisions

of this act or the regulations of the board.

(9) Possession of Alcohol. For any person, to have alcohol

in his possession, except in accordance with the provisions of

this act and the regulations of the board.

(10) Fortifying, Adulterating or Contaminating Liquor. For

any licensee or any employe or agent of a licensee or of the

board, to fortify, adulterate or contaminate any liquor, except

as permitted by the regulations of the board, or to refill

wholly or in part, with any liquid or substance whatsoever, any

liquor bottle or other liquor container.

(11) Importation of Liquor. For any person, other than the

board, a wine and spirits wholesale licensee or the holder of a

sacramental wine license, an importer's license or a direct

shipper's license, to import any liquor whatsoever into this

Commonwealth, but this section shall not be construed to

prohibit railroad and pullman companies from purchasing and

selling liquors purchased outside the Commonwealth in their

dining, club and buffet cars which are covered by public service

liquor licenses and which are operated in this Commonwealth.

(12) Delivery of Liquor by Certain Licensees. For a liquor

licensee permitted to deliver liquor, to make any deliveries

except in his own vehicles bearing his name, address and license

number on each side in letters not smaller than two inches in

height, or in the vehicle of another person duly authorized to

transport liquor within this Commonwealth.

(13) Violation of Certain Rules and Regulations of Board.

20150SB0908PN1069 - 82 -

For any person, to violate any rules and regulations adopted by

the board [to insure the equitable] relating to wholesale and

retail sale and distribution of liquor and alcohol [through the

Pennsylvania Liquor Stores] in accordance with the provisions of

this act.

(14) Offering Commission or Gift to Members of Board [or

State Employe]. For any person [selling or offering to sell

liquor or alcohol to, or purchasing at wholesale liquor or

alcohol from, the board] licensed by the board, either directly

or indirectly, to pay or offer to pay any commission, profit or

remuneration, or to make or offer to make any gift to any member

or employe of the board [or other employe of the Commonwealth]

or to anyone on behalf of such member or employe.

(15) Importation of alcohol from other states.

Notwithstanding any other provision of this act, it shall not be

unlawful for a nonlicensed resident of this Commonwealth to

purchase alcohol outside of this Commonwealth and import that

alcohol back into this Commonwealth so long as the nonlicensed

resident remits all applicable taxes to the Department of

Revenue. This section shall not apply to alcohol which is

shipped into this Commonwealth. Section 488 shall be the sole

law governing the shipment of alcohol into this Commonwealth.

Section 27. Section 492 of the act, amended February 18,

1998 (P.L.162, No.25), November 10, 1999 (P.L.514, No.47),

December 20, 2000 (P.L.992, No.141), December 9, 2002 (P.L.1653,

No.212), January 6, 2006 (P.L.1, No.1) and December 22, 2011

(P.L.530, No.113), is amended to read:

Section 492. Unlawful Acts Relative to Malt or Brewed

Beverages and Licensees.--

It shall be unlawful--

20150SB0908PN1069 - 83 -

(1) Manufacturing Without License. Except as provided

herein, for any person, to manufacture malt or brewed beverages,

unless such person holds a valid manufacturer's license for such

purpose issued by the board. Malt or brewed beverages may be

produced by any person without a license if such malt or brewed

beverages are produced not for sale and total production does

not exceed two hundred gallons per calendar year. Malt or brewed

beverages produced in accordance with this paragraph may be used

at organized affairs, exhibitions, competitions, contests,

tastings or judging provided it is not sold or offered for sale.

(2) Sales of Malt or Brewed Beverages for Consumption on the

Premises. For any person, to sell to another for consumption

upon the premises where sold or to permit another to consume

upon the premises where sold, any malt or brewed beverages,

unless such person holds a valid retail dispenser license or a

valid liquor license issued by the board authorizing the sale of

malt or brewed beverages for consumption upon such premises.

(3) Sales of Malt or Brewed Beverages Not for Consumption on

the Premises. For any person, to sell to another any malt or

brewed beverages not for consumption upon the premises where

sold, unless such person holds a valid license permitting such

sale.

(5) Sales of Malt or Brewed Beverages by Hotels, Eating

Places or Public Service Licensees During Prohibited Hours.--For

any hotel or eating place holding a retail dispenser's license,

or the servants, agents or employes of such licensees, to sell,

trade or barter in malt or brewed beverages between the hours of

two o'clock antemeridian Sunday and seven o'clock in the

forenoon of the following Monday, or between the hours of two

o'clock antemeridian and seven o'clock antemeridian of any week

20150SB0908PN1069 - 84 -

day: Provided, That notwithstanding any provision to the

contrary, whenever the thirty-first day of December falls on a

Sunday such sales of malt or brewed beverages may be made on

such day after one o'clock postmeridian and until two o'clock

antemeridian of the following day. For any public service

licensee authorized to sell malt or brewed beverages or the

servants, agents or employes of such licensees to sell, trade or

barter in malt or brewed beverages between the hours of two

o'clock antemeridian and seven o'clock antemeridian on any day.

(7) Clubs Selling Between Three O'Clock Antemeridian and

Seven O'Clock Antemeridian. For any club retail dispenser, or

its servants, agents or employes, to sell malt or brewed

beverages between the hours of three o'clock antemeridian and

seven o'clock antemeridian on any day.

(8) Transportation and Importation of Malt or Brewed

Beverages. For any person, to transport malt or brewed beverages

except in the original containers, or to transport malt or

brewed beverages for another who is engaged in selling either

liquor or malt or brewed beverages, unless such person shall

hold (a) a license to transport for hire, alcohol, liquor and

malt or brewed beverages, as hereinafter provided in this act,

or (b) shall hold a permit issued by the board and shall have

paid to the board such permit fee, as prescribed in section 614-

A of the act of April 9, 1929 (P.L.177, No.175), known as "The

Administrative Code of 1929," any other law to the contrary

notwithstanding. This clause shall not be construed:

(i) to prohibit transportation of malt or brewed beverages

through this Commonwealth and not for delivery in this

Commonwealth if such transporting is done in accordance with the

rules and regulations of the board; or

20150SB0908PN1069 - 85 -

(ii) to prohibit railroad and Pullman companies from selling

malt or brewed beverages purchased outside this Commonwealth in

their dining, club and buffet cars which are covered by public

service liquor licenses and which are operated in this

Commonwealth.

(9) Transportation of Malt or Brewed Beverages by Licensee.

For a malt or brewed beverage licensee, to deliver or transport

any malt or brewed beverages, excepting in vehicles bearing the

name and address and license number of such licensee painted or

affixed on each side of such vehicle in letters no smaller than

two inches in height and for purposes not prohibited under this

act.

(11) Delivery of Malt or Brewed Beverages With Other

Commodities. For any manufacturer, importing distributor or

distributor, or his servants, agents or employes, except with

board approval, to deliver or transport any malt or brewed

beverages in any vehicle in which any other commodity is being

transported.

(12) Distributors and Importing Distributors Engaging in

Other Business. For any distributor or importing distributor, or

his servants, agents or employes, without the approval of the

board, and then only in accordance with board regulations, to

engage in any other business whatsoever, except the business of

distributing malt or brewed beverages, except that the sale of

the following goods shall be permitted on the licensed premises

of a distributor or importing distributor:

(i) Any book, magazine or other publication related to malt

or brewed beverages.

(ii) Any equipment, ingredients or other supplies necessary

for the unlicensed manufacture of malt or brewed beverages as

20150SB0908PN1069 - 86 -

described in paragraph (1), commonly known as "homebrewing."

If the holder of a distributor license acquires a wine and

spirits retail permit pursuant to Article III-A for use at its

licensed premises, it may engage in the sale of liquor, so long

as the permit holder meets all of the requirements of this act.

If the holder of an importing distributor license acquires a

wine and spirits wholesale license pursuant to Article III-A for

use at its licensed premises, it may engage in the sale of

liquor, so long as the licensee meets all of the requirements of

this act. The board shall promulgate regulations consistent with

this act governing the sale of any other items by a distributor

that acquires a wine and spirits retail permit, as well as the

sale of other items by an importing distributor that acquires a

wine and spirits wholesale license.

(13) Possession or Storage of Liquor or Alcohol by Certain

Licensees. For any distributor, importing distributor or retail

dispenser, or his servants, agents or employes, to have in his

possession, or to permit the storage of on the licensed premises

or in any place contiguous or adjacent thereto accessible to the

public or used in connection with the operation of the licensed

premises, any alcohol or liquor. This section may not prohibit a

distributor that holds a wine and spirits retail permit, or an

importing distributor that holds a wine or spirits wholesale

license , from possessing or permitting the storage of liquor on

the licensed premises used in connection with the operation of

the licensed premises .

(14) Malt or Brewed Beverage Licensees Dealing in Liquor or

Alcohol. For any malt or brewed beverage licensee, other than a

distributor that holds a wine and spirits retail permit, or an

importing distributor that holds a wine and spirits wholesale

20150SB0908PN1069 - 87 -

license, a manufacturer, or the servants, agents or employes

thereof, to manufacture, import, sell, transport, store, trade

or barter in any liquor or alcohol.

(15) Selling to Persons Doing Illegal Business. For any malt

or brewed beverage licensee, or his servants, agents or

employes, to knowingly sell any malt or brewed beverages to any

person engaged in the business of illegally selling liquor or

malt or brewed beverages.

(16) Distributors and Importing Distributors Failing to Keep

Records. For any importing distributor or distributor engaged in

the sale of products, other than malt or brewed beverages, to

fail to keep such complete separate records covering in every

respect his transactions in malt or brewed beverages as the

board shall by regulation require.

(17) Fortifying, Adulterating or Contaminating Malt or

Brewed Beverages. For any person, to fortify, adulterate,

contaminate, or in any wise to change the character or purity

of, the malt or brewed beverages from that as originally

marketed by the manufacturer at the place of manufacture.

(18) Coercing Distributors and Importing Distributors. For

any manufacturer or any officer, agent or representative of any

manufacturer to coerce or persuade or attempt to coerce or

persuade any person licensed to sell or distribute malt or

brewed beverages at wholesale or retail to establish selling

prices for its products or to enter into any contracts or

agreements, whether written or oral, or take any action which

will violate or tend to violate any provisions of this act or

any of the rules or regulations promulgated by the board

pursuant thereto.

(19) Modifying or Terminating Distributing Rights Agreement.

20150SB0908PN1069 - 88 -

For any manufacturer or any officer, agent or representative of

any manufacturer to modify, cancel, terminate, rescind or not

renew, without good cause, any distributing rights agreement,

and in no event shall any modification, cancellation,

termination, rescission or nonrenewal of any distributing rights

agreement become effective for at least ninety (90) days after

written notice of such modification, cancellation, termination,

rescission or intention not to renew has been served on the

affected party and board by certified mail, return receipt

requested, except by written consent of the parties to the

agreement. The notice shall state all the reasons for the

intended modification, termination, cancellation, rescission or

nonrenewal. The distributor or importing distributor holding

such agreement shall have ninety (90) days in which to rectify

any claimed deficiency, or challenge the alleged cause.

If the deficiency shall be rectified within ninety (90) days

of notice, then the proposed modification, termination,

cancellation, rescission or nonrenewal shall be null and void

and without legal effect.

If the notice states as one of the reasons for the intended

modification, cancellation, termination, rescission or renewal

that the importing distributor or distributor's equipment or

warehouse requires major changes or additions, then if the

distributor or importing distributor shall have taken some

positive action to comply with the required changes or

additions, the distributor or importing distributor shall have

deemed to have complied with the deficiency as set forth in the

notice. The notice provisions of this section shall not apply if

the reason for termination, cancellation or nonrenewal is

insolvency, assignment for the benefit of creditors, bankruptcy,

20150SB0908PN1069 - 89 -

liquidation, fraudulent conduct in its dealings with the

manufacturer, revocation or suspension for more than a thirty

(30) day period of the importing distributor or distributor

license.

(20) Interference with Transfer of License, Business or

Franchise. (i) For any manufacturer to interfere with or prevent

any distributor or importing distributor from selling or

transferring his license, business or franchise, whether before

or after notice of modification, cancellation, termination,

rescission or nonrenewal has been given, provided the proposed

purchaser of the business of the distributor or importing

distributor meets the material qualifications and standards

required of the manufacturers other distributors or importing

distributors; (ii) if the proposed transfer of the distributor

or importing distributor's business is to a surviving spouse or

adult child, the manufacturer shall not, for any reason,

interfere with, or prevent, the transfer of the distributor or

importing distributor's license, business or franchise. Any

subsequent transfer by surviving spouse or adult child shall

thereafter be subject to the provisions of subclause (i) above.

(21) Inducing or Coercing Distributors or Importing

Distributors to Accept Unordered Products or Commit Illegal

Acts. For any manufacturer to compel or attempt to compel any

distributor or importing distributor to accept delivery of any

malt or brewed beverages or any other commodity which shall not

have been ordered by the distributor or importing distributor,

or to do any illegal act by any means whatsoever including, but

not limited to, threatening to amend, cancel, terminate, rescind

or refuse to renew any agreement existing between manufacturer

and the distributor or importing distributor, or to require a

20150SB0908PN1069 - 90 -

distributor or importing distributor to assent to any condition,

stipulation or provision limiting the distributor or importing

distributor in his right to sell the products of any other

manufacturer.

Section 28. Section 492.1(c) of the act, amended December

22, 2011 (P.L.530, No.113), is amended to read:

Section 492.1. Hours of Operation Relative to Manufacturers,

Importing Distributors and Distributors.--* * *

(a) and (b), manufacturers, importing distributors and

distributors, upon purchasing a permit from the board at an

annual fee of one hundred dollars ($100) unless the applicant

for the permit is a distributor that holds a wine and spirits

retail permit, in which instance Article III-A governs, may sell

malt or brewed beverages to persons not licensed under this act

or to a holder of a special occasion permit on Sunday between

the hours of nine o'clock antemeridian and nine o'clock

postmeridian.

* * *

Section 29. Section 493 of the act, amended December 7, 1990

(P.L.622, No.160), October 5, 1994 (P.L.537, No.80), June 18,

1998 (P.L.664, No.86), February 21, 2002 (P.L.103, No.10),

December 9, 2002 (P.L.1653, No.212), May 8, 2003 (P.L.1, No.1),

December 8, 2004 (P.L.1810, No.239), July 6, 2005 (P.L.135,

No.39), January 6, 2006 (P.L.1, No.1), July 7, 2006 (P.L.584,

No.84), November 29, 2006 (P.L.1421, No.155), July 16, 2007

(P.L.107, No.34), June 28, 2011 (P.L.55, No.11), December 22,

2011 (P.L.530, No.113) and July 5, 2012 (P.L.1007, No.116), is

amended to read:

Section 493. Unlawful Acts Relative to Liquor, Malt and

20150SB0908PN1069 - 91 -

Brewed Beverages and Licensees.--The term "licensee," when used

in this section, shall mean those persons licensed under [the

provisions of Article IV] Article III-A or this article, unless

the context clearly indicates otherwise.

It shall be unlawful--

(1) Furnishing Liquor or Malt or Brewed Beverages to Certain

Persons. For any licensee or the board, or any employe, servant

or agent of such licensee or of the board, or any other person,

to sell, furnish or give any liquor or malt or brewed beverages,

or to permit any liquor or malt or brewed beverages to be sold,

furnished or given, to any person visibly intoxicated, or to any

minor: Provided further, That notwithstanding any other

provision of law, no cause of action will exist against a

licensee or the board or any employe, servant or agent of such

licensee or the board for selling, furnishing or giving any

liquor or malt or brewed beverages or permitting any liquor or

malt or brewed beverages to be sold, furnished or given to any

insane person, any habitual drunkard or person of known

intemperate habits unless the person sold, furnished or given

alcohol is visibly intoxicated or is a minor.

(2) Purchase or Sale of Liquor or Malt or Brewed Beverages

on Credit; Importing Distributors or Distributors Accepting

Cash. For any licensee, his agent, servant or employe, to sell

or offer to sell or purchase or receive any liquor or malt or

brewed beverages except for cash, excepting credit extended by a

hotel or club to a bona fide guest or member, or by railroad or

pullman companies in dining, club or buffet cars to passengers,

for consumption while enroute, holding authorized credit cards

issued by railroad or railroad credit bureaus or by hotel,

restaurant, retail dispenser eating place, club and public

20150SB0908PN1069 - 92 -

service licensees, importing distributors or distributors to

customers not possessing a license under this article and

holding credit cards issued in accordance with regulations of

the board or credit cards issued by banking institutions subject

to State or Federal regulation: Provided further, That nothing

herein contained shall be construed to prohibit the use of

checks or drafts drawn on a bank, banking institution, trust

company or similar depository, organized and existing under the

laws of the United States of America or the laws of any state,

territory or possession thereof, in payment for any liquor or

malt or brewed beverages if the purchaser is the payor of the

check or draft and the licensee is the payee: Provided further,

That notwithstanding any other provision of this act to the

contrary, it shall be unlawful for an importing distributor or

distributor to accept cash for payment of any malt or brewed

beverages from anyone possessing a license issued under this

article, except it shall be permissible for the importing

distributor or distributor to accept credit cards, money orders

or cashiers' checks for payment of any malt or brewed beverages

in addition to any other type of payment authorized by the board

from anyone possessing a license under this article.

Notwithstanding any other provision of law to the contrary,

distributors and importing distributors may accept credit cards

for payment of malt or brewed beverages but they are not

required to accept credit cards. No right of action shall exist

to collect any claim for credit extended contrary to the

provisions of this clause. Nothing herein contained shall

prohibit a licensee from crediting to a purchaser the actual

price charged for original containers returned by the original

purchaser as a credit on any sale, or from refunding to any

20150SB0908PN1069 - 93 -

purchaser the amount paid by such purchaser for such containers

or as a deposit on containers when title is retained by the

vendor, if such original containers have been returned to the

licensee. Nothing herein contained shall prohibit a manufacturer

from extending usual and customary credit for liquor or malt or

brewed beverages sold to customers or purchasers who live or

maintain places of business outside of the Commonwealth of

Pennsylvania, when the liquor or malt or brewed beverages so

sold are actually transported and delivered to points outside of

the Commonwealth: Provided, however, That as to all transactions

affecting malt or brewed beverages to be resold or consumed

within this Commonwealth, every licensee shall pay and shall

require cash deposits on all returnable original containers and

all such cash deposits shall be refunded upon return of the

original containers.

(4) Peddling Liquor or Malt or Brewed Beverages. For any

person, to hawk or peddle any liquor or malt or brewed beverages

in this Commonwealth.

(5) Failure to Have Brands as Advertised. For any licensee,

his servants, agents or employes, to advertise or hold out for

sale any liquor or malt or brewed beverages by trade name or

other designation which would indicate the manufacturer or place

of production of the said liquor or malt or brewed beverages,

unless he shall actually have on hand and for sale a sufficient

quantity of the particular liquor or malt or brewed beverages so

advertised to meet requirements to be normally expected as a

result of such advertisement or offer.

(6) Brand or Trade Name on Spigot. For any licensee, his

agents, servants or employes, to furnish or serve any malt or

brewed beverages from any faucet, spigot or other dispensing

20150SB0908PN1069 - 94 -

apparatus, unless the trade name or brand of the product served

shall appear in full sight of the customer and in legible

lettering upon such faucet, spigot or dispensing apparatus.

(7) Alcoholic Strength on Label of Malt or Brewed Beverages.

For any licensee, or his servants, agents or employes, to

transport, sell, deliver or purchase any malt or brewed

beverages upon which there shall appear a label or other

informative data which refers to the alcoholic contents of the

malt or brewed beverage in any terms other than as a percentage

of alcohol by volume. This clause shall be construed to permit,

but not to require, a manufacturer to designate upon the label

or descriptive data the alcoholic content of malt or brewed

beverages in percentage of alcohol by volume. This clause shall

not be construed to prohibit a manufacturer from designating

upon the label or descriptive data the alcoholic content of malt

or brewed beverages intended for shipment into another state or

territory, when the laws of such state or territory require that

the alcoholic content of the malt or brewed beverage must be

stated upon the package.

(8) Advertisements on Labels Giving Alcoholic Content of

Malt or Brewed Beverages. For any manufacturer or other

licensee, or his servants, agents or employes, to issue, publish

or post, or cause to be issued, published or posted, any

advertisement of any malt or brewed beverage including a label

which shall refer in any manner to the alcoholic strength of the

malt or brewed beverage manufactured, sold or distributed by

such licensees, or to use in any advertisement or label such

words as "full strength," "extra strength," "high test," "high

proof," "pre-war strength," or similar words or phrases, which

would lead or induce a consumer to purchase a brand of malt or

20150SB0908PN1069 - 95 -

brewed beverage on the basis of its alcoholic content, or to use

in or on any advertisement or label any numeral, unless

adequately explained in type of the same size, prominence and

color, or for any licensee to purchase, transport, sell or

distribute any malt or brewed beverage advertised or labeled

contrary to the provisions of this clause.

(10) Entertainment on Licensed Premises (Except Clubs);

Permits; Fees. For any licensee, his servants, agents or

employes, except club licensees, public venue licensees or

performing arts facility licensees, to permit in any licensed

premises or in any place operated in connection therewith,

dancing, theatricals or floor shows of any sort, or moving

pictures other than television, or such as are exhibited through

machines operated by patrons by the deposit of coins, which

project pictures on a screen not exceeding in size twenty-four

by thirty inches and which forms part of the machine, unless the

licensee shall first have obtained from the board a special

permit to provide such entertainment, or for any licensee, under

any circumstances, to permit in any licensed premises or in any

place operated in connection therewith any lewd, immoral or

improper entertainment, regardless of whether a permit to

provide entertainment has been obtained or not. The special

permit may be used only during the hours when the sale of liquor

or malt or brewed beverages is permitted, unless the licensee

holds an extended hours food license under section 499(b) which

license would allow the special permit to be used while the

establishment is open, and between eleven o'clock antemeridian

on Sunday and two o'clock antemeridian on the following Monday,

regardless of whether the licensee possesses a Sunday sales

permit. The board shall have power to provide for the issue of

20150SB0908PN1069 - 96 -

such special permits, and to collect an annual fee for such

permits as prescribed in section 614-A of the act of April 9,

1929 (P.L.177, No.175), known as "The Administrative Code of

1929." All such fees shall be paid into the State Stores Fund.

No such permit shall be issued in any municipality which, by

ordinance, prohibits amusements in licensed places. Any

violation of this clause shall, in addition to the penalty

herein provided, subject the licensee to suspension or

revocation of his permit and his license.

(11) Licensees Employed by Others. For any hotel, restaurant

or club liquor licensee, or any malt or brewed beverage

licensee, or any officer, servant, agent or employe of such

licensee, to be at the same time employed, directly or

indirectly, by any distributor, importing distributor,

manufacturer, importer or vendor licensee or any out of State

manufacturer. It shall also be unlawful for any distributor or

importing distributor, or any officer, servant, agent or employe

of such licensee, to be at the same time employed, directly or

indirectly, by any other distributor, importing distributor,

manufacturer, importer, vendor, out of State manufacturer, hotel

restaurant, malt or brewed beverage licensee, or club liquor

licensee. It shall also be unlawful for any manufacturer,

importer, or vendor licensee, or any out of State manufacturer,

or any officer, servant, agent or employe of such licensee or

manufacturer, to be at the same time employed, directly or

indirectly, by any hotel, restaurant or club liquor licensee or

any malt or brewed beverage licensee or any distributor or

importing distributor licensee. Nothing in this subsection shall

be construed to prohibit a manufacturer or limited winery

licensee, or any officer, servant, agent or employe of such

20150SB0908PN1069 - 97 -

licensee, to be employed at the same time by a hotel, restaurant

or retail dispenser licensee if the hotel, restaurant or retail

dispenser licensee is located at the manufacturer or limited

winery premises pursuant to section 443. For the purposes of

this subsection, an officer, servant, agent or employe of a

licensee or manufacturer is an individual who has either an

ownership interest in the licensee or manufacturer or who

receives compensation for his or her work on behalf of the

licensee or manufacturer.

(12) Failure to Have Records on Premises. For any liquor

licensee, or any importing distributor, distributor or retail

dispenser, to fail to keep for a period of at least two years

complete and truthful records covering the operation of his

licensed business, particularly showing the date of all

purchases of liquor and malt or brewed beverages, the actual

price paid therefor, and the name of the vendor, including State

Store receipts, or for any licensee, his servants, agents or

employes, to refuse the board or an authorized employe of the

board or the enforcement bureau access thereto or the

opportunity to make copies of the same when the request is made

during business hours. The records from the most recent six-

month period must be maintained on the licensed premises.

Records for the remainder of the two-year period may be kept off

the licensed premises so long as the records are returned to the

licensed premises within twenty-four hours of a request by the

board or enforcement bureau. A licensee may remove the records

for the most recent six-month period from the licensed premises

only for a lawful business purpose provided that they are

returned to the premises when that business is completed.

(13) Retail Licensees Employing Minors. For any hotel,

20150SB0908PN1069 - 98 -

restaurant or club liquor licensee, or any retail dispenser, to

employ or to permit any minor under the age of eighteen to serve

any alcoholic beverages or to employ or permit any minor under

the age of sixteen to render any service whatever in the

licensed premises, nor shall any entertainer under the age of

eighteen be employed or permitted to perform in any licensed

premises in violation of the labor laws of this Commonwealth:

Provided, That in accordance with board regulations minors

between the ages of sixteen and eighteen may be employed to

serve food, clear tables and perform other similar duties, not

to include the dispensing or serving of alcoholic beverages. A

ski resort, golf course or amusement park licensee may employ

minors fourteen and fifteen years of age to perform duties in

rooms or areas of the licensed premises; however, such minors

may not perform duties in rooms or areas in which alcohol is

being concurrently dispensed or served or in which alcohol is

being concurrently stored in an unsecured manner.

Notwithstanding any provisions of law to the contrary, a hotel,

restaurant or club liquor licensee or any retail dispenser may

allow students receiving instruction in a performing art to

perform an exhibition if the students are not compensated and

are under proper supervision. Written notice of the performance

must be provided to the enforcement bureau prior to the

performance.

(14) Permitting Undesirable Persons or Minors to Frequent

Premises. For any hotel, restaurant or club liquor licensee, or

any retail dispenser, his servants, agents or employes, to

permit persons of ill repute or prostitutes to frequent his

licensed premises or any premises operated in connection

therewith. Minors may only frequent licensed premises if: (a)

20150SB0908PN1069 - 99 -

they are accompanied by a parent; (b) they are accompanied by a

legal guardian; (c) they are under proper supervision; (d) they

are attending a social gathering; or (e) the hotel, restaurant

or retail dispenser licensee has gross sales of food and

nonalcoholic beverages equal to fifty per centum or more of its

combined gross sale of both food and alcoholic beverages. If a

minor is frequenting a hotel, restaurant or retail dispenser

licensee under subsection (e), then the minor may not sit at the

bar section of the premises, nor may any alcoholic beverages be

served at the table or booth at which the said minor is seated

unless said minor is with a parent, legal guardian or under

proper supervision. Further, if a hotel, restaurant, club liquor

licensee or retail dispenser is hosting a social gathering under

subsection (d), then written notice at least forty-eight hours

in advance of such gathering shall be given to the Bureau of

Enforcement. If a minor is frequenting licensed premises with

proper supervision under subsection (c), each supervisor can

supervise up to twenty minors, except for premises located in

cities of the first class, where each supervisor can supervise

up to five minors. Notwithstanding any other provisions of this

section, if the minors are on the premises as part of a school-

endorsed function, then each supervisor can supervise fifty

minors. Nothing in this clause shall be construed to make it

unlawful for minors to frequent public venues or performing arts

facilities.

(15) Cashing Pay Roll, Public Assistance, Unemployment

Compensation or Any Other Relief Checks. For any licensee or his

servants, agents or employes to cash pay roll checks or to cash,

receive, handle or negotiate in any way Public Assistance,

Unemployment Compensation or any other relief checks.

20150SB0908PN1069 - 100 -

(16) Furnishing or Delivering Liquor or Malt or Brewed

Beverages at Unlawful Hours. For any licensee, his servants,

agents or employes, to give, furnish, trade, barter, serve or

deliver any liquor or malt or brewed beverages to any person

during hours or on days when the licensee is prohibited by this

act from selling liquor or malt or brewed beverages.

(17) Licensees, etc., Interested or Employed in

Manufacturing or Sale of Equipment or Fixtures. For any

licensee, or any officer, director, stockholder, servant, agent

or employe of any licensee, to own any interest, directly or

indirectly, in or be employed or engaged in any business which

involves the manufacture or sale of any equipment, furnishings

or fixtures to any hotel, restaurant or club licensees, or to

any importing distributors, distributors or retail dispensers.

Notwithstanding any other provision of this section or this act,

licensees may sell glasses at not less than cost and to provide

metal keg connectors and tap knobs to other licensees and to

holders of special occasion permits.

(20) (i) Retail Liquor and Retail Malt or Brewed Beverages

Licensee's Inside Advertisements. For any retail liquor or

retail malt or brewed beverages licensee, to display or permit

the display in the show window or doorways of his licensed

premises, any placard or sign advertising the brands of liquor

or malt or brewed beverages, if the total display area of any

such placard or sign advertising the product or products exceeds

six hundred square inches. Nothing herein shall prohibit a

licensee from displaying inside his licensed premises point of

sale displays advertising brand names of products sold by him,

other than a window or door display: Provided, That the total

cost of all such point of sale advertising matter relating to

20150SB0908PN1069 - 101 -

any one brand shall not exceed the dollar amount set forth by

the board through regulation. All such advertising material,

including the window and door signs, may be furnished by a

manufacturer, distributor or importing distributor. The

restrictions on advertising set forth in subclause (ii) and in

clauses (20.1) and (20.2) shall also apply to this subclause.

(ii) Cooperative Advertising. No distributor or importing

distributor, directly or indirectly, independent or otherwise,

shall, except by prior written agreement, be required to

participate with a manufacturer in the purchase of any

advertising of a brand name product in any name, in any form,

whether it be radio, television, newspaper, magazine or

otherwise.

(20.1) Manufacturer Shall Not Require Advertising. For a

manufacturer to require a distributor or importing distributor

to purchase any type of advertising.

(20.2) Advertising Shall Be Ordered and Authorized in

Advance. For any advertising to be done on behalf of a

distributor or importing distributor which was not ordered and

authorized in advance by the distributor or importing

distributor.

(21) Refusing The Right of Inspection. For any licensee, or

his servants, agents or employes, to refuse the board or the

enforcement bureau or any of their authorized employes the right

to inspect completely the entire licensed premises at any time

during which the premises are open for the transaction of

business, or when patrons, guests or members are in that portion

of the licensed premises wherein either liquor or malt or brewed

beverages are sold.

(22) Allowance or Rebate to Induce Purchases. For any

20150SB0908PN1069 - 102 -

licensee, or his servants, agents or employes, to offer, pay,

make or allow, or for any licensee, or his servants, agents or

employes, to solicit or receive any allowance or rebate, refunds

or concessions, whether in the form of money or otherwise, to

induce directly the purchase of liquor or malt or brewed

beverages.

(23) Money or Valuables Given to Employes to Influence

Actions of Their Employers. For any licensee, or any agent,

employe or representative of any licensee, to give or permit to

be given, directly or indirectly, money or anything of

substantial value, in an effort to induce agents, employes or

representatives of customers or prospective customers to

influence their employer or principal to purchase or contract to

purchase liquor or malt or brewed beverages from the donor of

such gift, or to influence such employers or principals to

refrain from dealing or contracting to deal with other

licensees.

(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

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

20150SB0908PN1069 - 103 -

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

the holder of a wine and spirits retail permit or purchases of

malt or brewed beverages through distributors and importing

distributors in accordance with conditions or regulations

established by the board. The board or the holder of a wine and

spirits retail permit 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 holder of a wine and spirits retail permit may

establish and implement a consumer relations marketing program

for the purpose of offering incentives, such as coupons or

discounts on certain products, which may be conditioned on the

purchase of liquor by its customers.

(25) Employment in Licensed Places. For any licensee or his

agent, to employ or permit the employment of any person at his

20150SB0908PN1069 - 104 -

licensed hotel, restaurant or eating place for the purpose of

enticing customers, or to encourage them to drink liquor, or

make assignations for improper purposes.

Any person violating the provisions of this clause shall be

guilty of a misdemeanor and, upon conviction of the same, shall

be sentenced to pay a fine of not less than one hundred dollars

($100), nor more than five hundred dollars ($500), for each and

every person so employed, or undergo an imprisonment of not less

than three (3) months, nor more than one (1) year, or either or

both, at the discretion of the court having jurisdiction of the

case. The administrative law judge shall have the power to

revoke or refuse licenses for violation of this clause.

(26) Worthless Checks. For any retail liquor licensee or any

retail dispenser, distributor or importing distributor, to make,

draw, utter, issue or deliver, or cause to be made, drawn,

uttered, issued or delivered, any check, draft or similar order,

for the payment of money in payment for any purchase of malt or

brewed beverages, when such retail liquor licensee, retail

dispenser, distributor or importing distributor, has not

sufficient funds in, or credit with, such bank, banking

institution, trust company or other depository, for the payment

of such check. Any person who is a licensee under the provisions

of this article, who shall receive in payment for malt or brewed

beverages sold by him any check, draft or similar order for the

payment of money, which is subsequently dishonored by the bank,

banking institution, trust company or other depository, upon

which drawn, for any reason whatsoever, shall, within five days

of receipt of notice of such dishonor, notify by certified mail

the person who presented the said worthless check, draft or

similar order and the malt beverage compliance officer for the

20150SB0908PN1069 - 105 -

board. If the violation of this clause involving a check, draft

or similar order from the purchaser to the seller is

subsequently honored within ten days from the day it was made,

drawn, uttered, issued or delivered, then the malt beverage

compliance officer shall not turn the matter over to the

enforcement bureau for a citation.

(27) Distributors and Importing Distributors Employing

Minors. For any distributor or importing distributor to employ

minors under the age of eighteen but persons eighteen and over

may be employed to sell and deliver malt and brewed beverages. A

distributor holding a wine and spirits retail permit may not

employ a person under the age of twenty-one to sell liquor.

(28) Consumption of Liquor or Malt or Brewed Beverages While

Tending Bar. For any licensee, his servants, agents or employes,

to consume liquor or malt or brewed beverages while tending bar

or otherwise serving liquor or malt or brewed beverages. No

action shall be taken against a licensee under this clause

unless the licensee is the individual consuming liquor or malt

or brewed beverages in violation of this clause.

(30) Pyrotechnics Prohibited. For any licensee, his

servants, agents or employes, except licensees where pyrotechnic

displays are performed by a pyrotechnic operator licensed by the

Bureau of Alcohol, Tobacco, Firearms and Explosives and are

approved by a municipal fire official, to store, handle, use or

display any pyrotechnics within a building on the licensed

premises. For purposes of this clause, "pyrotechnics" shall mean

any chemical mixture, including pyrotechnic compositions,

intended to produce a visible or audible effect by combustion,

deflagration or detonation as defined by section 1.5.52 of the

National Fire Protection Association Standard 1126 entitled

20150SB0908PN1069 - 106 -

"Standard for the Use of Pyrotechnics before a Proximate

Audience," 1992 Edition.

(31) (i) Sale or Purchase of Controlled Substance or Drug

Paraphernalia by Licensee. For any licensee to possess, furnish,

sell, offer to sell, or purchase or receive, or aid and abet in

the sale or purchase of any controlled substance or drug

paraphernalia, as defined in the act of April 14, 1972 (P.L.233,

No.64), known as "The Controlled Substance, Drug, Device and

Cosmetic Act," on the licensed premises unless the actions of

the licensee are authorized by law.

(ii) Sale or Purchase of Controlled Substances or Drug

Paraphernalia by Servant, Agent or Employe of the Licensee. For

any servants, agents or employes of the licensee to possess,

furnish, sell, offer to sell or purchase or receive, or aid and

abet in the sale or purchase of any controlled substance or drug

paraphernalia, as defined in "The Controlled Substance, Drug,

Device and Cosmetic Act," on the licensed premises unless the

actions of the person are authorized by law. The licensee shall

only be cited for a violation of this subclause if the licensee

knew or should have known of the activity and failed to take

substantial affirmative steps to prevent the activity on its

premises.

(32) Sale or Purchase of Alcohol Vaporizing Devices. For any

licensee, his servants or agents or employes to possess or to

permit an alcohol vaporizing device on the licensed premises.

(33) Off-premises Catering Permit; Fees. For any licensee,

his servants, agents or employes to sell alcohol at a location

other than its licensed premises, unless the sale is

specifically authorized under this act, or unless the licensee

receives a special permit from the board to do so. Only those

20150SB0908PN1069 - 107 -

licensees holding a current and valid restaurant, hotel, brew

pub or eating place license shall be allowed to apply for such a

permit. Any licensee that wishes to obtain an off-premises

catering permit must notify the board and pay the permitting fee

by March of each calendar year regardless of whether the

licensee has scheduled catered events. Any licensee that fails

to notify the board and pay the permit fee by March 1 shall be

precluded from obtaining the permit for that calendar year. If a

licensee notifies the board and pays the permitting fee by March

1 and does not then use the permit throughout the calendar year,

the licensee shall not be entitled to a return of the permitting

fee. Any licensee not granted a license until after March 1 of

the calendar year shall have sixty days from the date of the

license transfer to notify the board of the licensee's intention

to use an off-premises catering permit and pay the permitting

fee. All servers at the off-premises catered function shall be

certified under the board's responsible alcohol management

program as required under section 471.1. The board may charge a

fee of five hundred dollars ($500) each calendar year, to each

applicant for the initial permit associated with a particular

license, but no further fee shall be charged for any subsequent

permits issued to the applicant for the license during the same

calendar year. The applicant shall submit written notice to the

board thirty days prior to each catered event, unless this time

frame has been waived by the board, and the board may approve or

disapprove each event if the applicant fails to provide timely

notice of the catered function, does not intend to conduct a

function that meets the requirements of this act or has

previously conducted a function that did not meet the

requirements of this act. The fees shall be paid into the State

20150SB0908PN1069 - 108 -

Stores Fund. Any violation of this act or the board's

regulations for governing activity occurring under the authority

of this permit may be the basis for the issuance of a citation

under section 471, the nonrenewal of the license under section

470 or the refusal by the board to issue subsequent permits or

honor subsequent dates on the existing permit. This penalty

shall be in addition to any other remedies available to the

enforcement bureau or the board.

(34) Noise. Notwithstanding any law or regulation to the

contrary, a licensee may not use or permit to be used inside or

outside of the licensed premises a loudspeaker or similar device

whereby the sound of music or other entertainment, or the

advertisement thereof, can be heard beyond the licensee's

property line; however, any licensee that is located in an area

which is subject to an exemption from the board's regulation

regarding amplified music being heard off the licensed premises

shall be exempt from compliance with this paragraph until the

expiration of the board's order granting the exemption. The

board's regulation regarding amplified music being heard off the

licensed premises is otherwise superseded by this paragraph.

(35) Sale of wine for off-premises consumption. For any

licensee, his servants, agents or employes to sell unopened

bottles of wine for consumption off the licensed premises,

unless the sale is specifically authorized under this act, or

unless the licensee receives a special permit from the board to

do so.

(36) Sale of wine received by direct shipment. For any

licensee to sell or offer to sell wine purchased or acquired

from a direct wine shipper pursuant to the authority of section

488.

20150SB0908PN1069 - 109 -

(37) Duties performed by distributors and importing

distributors. For any licensee to require that a distributor or

importing distributor stock merchandise in the licensee's

cooler, rotate the licensee's stock of malt or brewed beverages,

set up displays in the licensee's premises or pay any type of

fee required for making the distributor's product available on

the licensee's store shelves. This clause supersedes a contrary

provision of a contract.

(38) Sale of spirits for off-premises consumption. For any

licensee, his servants, agents or employes to sell an unopened

bottle of liquor for consumption off the licensed premises

unless the sale is specifically authorized under this act or

unless the licensee receives a special permit from the board to

do so.

Section 30. The act is amended by adding sections to read:

Section 493.2. Unlawful Acts Relative to Wine and Spirits

Retail Permit Holders.--(a) It is unlawful for a wine and

spirits retail permit holder, or an employe, servant or agent of

the permit holder or another person to sell, furnish or give

liquor or malt or brewed beverages or to permit liquor or malt

or brewed beverages to be sold, furnished or given to a minor or

person who is visibly intoxicated.

(b) A wine and spirits retail permit holder who violates the

provisions of subsection (a) is subject to the penalty

provisions set forth in section 471.

Section 493.3. Licensees and Taxes.--Notwithstanding any

other provision of this act or the act of March 4, 1971 (P.L.6,

No.2), known as the "Tax Reform Code of 1971," the following

shall apply:

(1) The sale of malt and brewed beverages and wine and

20150SB0908PN1069 - 110 -

spirits by an entity licensed under this act, including the sale

of malt and brewed beverages and wine and spirits from the areas

of a licensee's premises utilized under a retail license for

consumption on the premises, shall be considered a sale by a

retail dispenser under section 201 of the "Tax Reform Code of

1971."

(2) The sale of malt and brewed beverages and wine and

spirits to an entity described in paragraph (1) for the purpose

of sales from the areas of a licensee's premises utilized under

a retail license for consumption on the premises shall be

considered a sale to a retail dispenser subject to the tax

imposed under Article II of the "Tax Reform Code of 1971."

(3) Except for sales under paragraphs (1) and (2), any other

sale of malt and brewed beverages shall be considered a sale by

a distributor, and any other sale of wine or spirits shall be

considered a sale of liquor by a Pennsylvania Liquor Store under

section 201 of the "Tax Reform Code of 1971."

Section 31. Section 494 of the act, amended April 29, 1994

(P.L.212, No.30) and November 10, 1999 (P.L.514, No.47), is

amended to read:

Section 494. Penalties.--(a) Any person who shall violate

any of the provisions of this article, except as otherwise

specifically provided, shall be guilty of a misdemeanor and,

upon conviction thereof, shall be sentenced to pay a fine of not

less than one hundred dollars ($100), nor more than five hundred

dollars ($500), and on failure to pay such fine, to imprisonment

for not less than one month, nor more than three months, and for

any subsequent offense, shall be sentenced to pay a fine not

less than three hundred dollars ($300), nor more than five

hundred dollars ($500), and to undergo imprisonment for a period

20150SB0908PN1069 - 111 -

not less than three months, nor more than one year, or both. If

the person, at or relating to the licensed premises, violates

section 493(1), (10), (14), (16) or (21), or if the owner or

operator of the licensed premises or any authorized agent of the

owner or operator violates the act of April 14, 1972 (P.L.233,

No.64), known as "The Controlled Substance, Drug, Device and

Cosmetic Act," or 18 Pa.C.S. § 5902 (relating to prostitution

and related offenses) or 6301 (relating to corruption of

minors), he shall be sentenced to pay a fine not exceeding [five

thousand dollars ($5,000)] ten thousand dollars ($10,000) or to

undergo imprisonment for a period not less than [three] six

months, nor more than [one year] two years, or both.

(b) The right to suspend and revoke licenses granted under

this article shall be in addition to the penalty set forth in

this section.

liquor or malt or brewed beverage without being licensed is in

violation of this article and shall, in addition to any other

penalty prescribed by law, be sentenced to pay a fine of two

dollars ($2) per fluid ounce for each container of malt or

brewed beverages and four dollars ($4) per fluid ounce for each

container of wine or liquor found on the premises where the sale

was made or attempted. The amount of fine per container will be

based upon the capacity of the container when full, whether or

not it is full at the time of the sale or attempted sale. In

addition, all malt or brewed beverages, wine and liquor found on

the premises shall be confiscated. If a person fails to pay the

full amount of the fine levied under this subsection, the

premises on which the malt or brewed beverages, wine or liquor

was found shall be subject to a lien in the amount of the unpaid

20150SB0908PN1069 - 112 -

fine if the premises are owned by the person against whom the

fine was levied or by any other person who had knowledge of the

proscribed activity. The lien shall be superior to any other

liens on the premises other than a duly recorded mortgage.

Section 32. Section 498 of the act is amended by adding a

subsection to read:

Section 498. Unlawful Advertising.--* * *

(f.1) In order to advertise or provide free wine, spirits or

malt or brewed beverages, an entity must possess a retail

license under this act. A nonlicensed entity may not advertise

or provide free wine, spirits or malt or brewed beverages.

* * *

Section 33. Section 505.2 of the act, amended December 8,

2004 (P.L.1810, No.239), July 16, 2007 (P.L.107, No.34), June

25, 2010 (P.L.217, No.35), June 28, 2011 (P.L.55, No.11) and

December 22, 2011 (P.L.530, No.113), is amended to read:

Section 505.2. Limited Wineries.--(a) In the interest of

promoting tourism and recreational development in Pennsylvania,

holders of a limited winery license may:

(1) Produce alcoholic ciders, wines and wine coolers,

subject to the exceptions provided under this section, only from

an agricultural commodity grown in Pennsylvania.

(2) Sell alcoholic cider, wine and wine coolers produced by

the limited winery or purchased in bulk in bond from another

Pennsylvania limited winery on the licensed premises, under such

conditions and regulations as the board may enforce, to the

board, to wine and spirits retail permit holders, to individuals

and to brewery, hotel, restaurant, club and public service

liquor licensees, and to Pennsylvania winery licensees:

Provided, That a limited winery shall not, in any calendar year,

20150SB0908PN1069 - 113 -

purchase alcoholic cider or wine produced by other limited

wineries in an amount in excess of fifty per centum of the

alcoholic cider or wine produced by the purchasing limited

winery in the preceding calendar year. In addition, the holder

of a limited winery license may purchase wine in bottles from

another Pennsylvania limited winery if these wines undergo a

second fermentation process. Such wine may be sold in bottles

bearing the purchasing limited winery's label or the producing

limited winery's label. [Such wines, if sold by the board, may

be sold by the producing limited winery to the purchasing

limited winery at a price lower than the price charged by the

board.]

(3) Separately or in conjunction with other limited

wineries, sell alcoholic cider, wine and wine coolers produced

by the limited winery on no more than five (5) board-approved

locations other than the licensed premises, with no bottling or

production requirement at those additional board-approved

locations and under such conditions and regulations as the board

may enforce, to the board, wine and spirits retail permit

holders, to individuals and to brewery, hotel, restaurant, club

and public service liquor licensees. If two or more limited

wineries apply to operate an additional board-approved location

in conjunction with each other, the wineries need only have one

board-approved manager for the location, need only pay one

application fee and need not designate specific or distinct

areas for each winery's licensed area. Each limited winery must

file an application for such an additional board-approved

location, and such location shall count as one of the five

permitted for each limited winery. Each limited winery is

responsible for keeping only its own complete records. A limited

20150SB0908PN1069 - 114 -

winery may be cited for a violation of the recordkeeping

requirements of sections 512 and 513 pertaining to its own

records only.

(4) At the discretion of the board, obtain a special permit

to participate in alcoholic cider, wine and food expositions off

the licensed premises. A special permit shall be issued upon

proper application and payment of a fee of thirty dollars ($30)

per day for each day of permitted use, not to exceed thirty (30)

consecutive days. The total number of days for all the special

permits may not exceed one hundred (100) days in any calendar

year. A special permit shall entitle the holder to engage in the

sale by the glass, by the bottle or in case lots of alcoholic

cider or wine produced by the permittee under the authority of a

limited winery license. Holders of special permits may provide

tasting samples of wines in individual portions not to exceed

one fluid ounce. Samples at alcoholic cider, wine and food

expositions may be sold or offered free of charge. Except as

provided herein, limited wineries utilizing special permits

shall be governed by all applicable provisions of this act as

well as by all applicable regulations or conditions adopted by

the board.

For the purposes of this clause, "alcoholic cider, wine and

food expositions" are defined as affairs held indoors or

outdoors with the intent of promoting Pennsylvania products by

educating those in attendance of the availability, nature and

quality of Pennsylvania-produced alcoholic ciders and wines in

conjunction with suitable food displays, demonstrations and

sales. Alcoholic cider, wine and food expositions may also

include activities other than alcoholic cider, wine and food

displays, including arts and crafts, musical activities,

20150SB0908PN1069 - 115 -

cultural exhibits, agricultural exhibits and farmers markets.

(4.1) At the discretion of the board, obtain a farmers

market permit. The permit shall entitle the holder to

participate in more than one farmers market at any given time

and an unlimited number throughout the year and sell alcoholic

cider or wine produced under the authority of the underlying

limited winery license by the bottle or in case lots. Samples

not to exceed one fluid once per brand of wine may be offered

free of charge. A farmers market permit shall be issued upon

proper application and payment of an annual fee of two hundred

fifty dollars ($250). A permit holder may participate in more

than one farmers market at any given time. Sales by permit

holders shall take place during the standard hours of operation

of the farmers market. Written notice of the date, times and

location the permit is to be used shall be provided by the

permit holder to the enforcement bureau at least two (2) weeks

prior to the event. Except as provided in this subsection,

limited wineries utilizing farmers market permits shall be

governed by all applicable provisions of this act as well as by

all applicable regulations adopted by the board.

(5) Apply for and hold a hotel liquor license, a restaurant

liquor license or a malt and brewed beverages retail license to

sell for consumption at the restaurant or limited winery on the

licensed winery premises, liquor, wine and malt or brewed

beverages regardless of the place of manufacture under the same

conditions and regulations as any other hotel liquor license,

restaurant liquor license or malt and brewed beverages retail

license.

(6) (i) Secure a permit from the board to allow the holder

of a limited winery license to use up to twenty-five per centum

20150SB0908PN1069 - 116 -

permitted fruit, not wine, in the current year's production.

Each permit is valid only for the calendar year in which it is

issued.

(ii) The fee for a permit to import and use permitted fruit

shall be in an amount to be determined by the board.

(iii) The purpose of this section is to increase the

productivity of limited wineries while at the same time

protecting the integrity and unique characteristics of wine

produced from fruit primarily grown in this Commonwealth.

Prevailing climatic conditions have a significant impact on the

character of the fruit. Accordingly, "permitted fruit" shall

mean fruit grown or juice derived from fruit grown within three

hundred fifty (350) miles of the winery.

(iv) The department is authorized to promulgate regulations

requiring the filing of periodic reports by limited wineries to

ensure compliance with the provisions of this section.

(6.1) Sell food for consumption on or off the licensed

premises and at the limited winery's additional board-approved

locations and sell by the glass, at the licensed premises and at

the limited winery's additional board-approved locations, only

wine and alcoholic ciders that may otherwise be sold by the

bottle.

(6.2) Sell wine- or liquor-scented candles acquired or

produced by the limited winery.

(6.3) Sell alcoholic cider, wine and wine coolers only

between the hours of nine o'clock antemeridian and eleven

o'clock postmeridian. A limited winery also may request approval

from the board to extend sales hours in individual locations at

other times during the year or beyond the limits set forth in

this clause. The request shall be made in writing to the board's

20150SB0908PN1069 - 117 -

Office of the Chief Counsel and shall detail the exact locations

where sales hours are proposed to be extended, the proposed

hours and dates of extended operation and the reason for the

proposed extended hours.

(6.4) Store alcoholic cider, wine and wine coolers produced

by the limited winery at no more than two (2) board-approved

locations other than the licensed premises and those premises

referenced in clause (3) pertaining to the five (5) board-

approved locations for the sale of wine, with no bottling or

production requirement at those additional locations and under

such conditions and regulations as the board may enforce. If two

(2) or more businesses will operate out of the same storage

facility, the limited winery must designate specific and

distinct areas for its storage. The limited winery's designated

storage area must be secured and no one other than the licensee

and his employees may be allowed access to the storage area. No

board-approved manager will be necessary for the storage

facility. The limited winery must fill out an application for

such an additional board-approved storage location, and such

location shall count as one of the two permitted for each

limited winery. The limited winery is responsible for keeping

only its own complete records. A limited winery may be cited for

a violation of the recordkeeping requirements of sections 512

and 513 pertaining to its own records only.

(b) The total production of alcoholic ciders, wine and wine

coolers by a limited winery may not exceed two hundred thousand

(200,000) gallons per year.

"Agricultural commodity" shall include any of the following:

agricultural, apicultural, horticultural, silvicultural and

20150SB0908PN1069 - 118 -

viticultural commodities.

"Farmers market" shall include any building, structure or

other place:

(1) owned, leased or otherwise in the possession of a

person, municipal corporation or public or private organization;

(2) used or intended to be used by two or more farmers or an

association of farmers, who are certified by the Department of

Agriculture of the Commonwealth to participate in the Farmers'

Market Nutrition Program subject to 7 CFR Pt. 249 (relating to

Senior Farmers' Market Nutrition Program (SFMNP)), for the

purpose of selling agricultural commodities produced in this

Commonwealth directly to consumers;

(3) which is physically located within this Commonwealth;

and

(4) which is not open for business more than twelve hours

each day.

Section 34. Section 505.4 of the act, amended December 22,

2011 (P.L.530, No.113), is amended to read:

Section 505.4. Distilleries.--(a) The board may issue a

distillery of historical significance license to any distillery

which was established prior to January 1, 1875. The holder of

the license may manufacture and sell liquor produced on the

licensed premises to the board, to wine and spirits retail

permit holders, to other entities licensed by the board and to

the public under such conditions and regulations as the board

may enforce. Production at the distillery of historical

significance shall be limited to an amount not to exceed twenty

thousand (20,000) gallons per year. The distillery does not need

to establish continuous operation since January 1, 1875, in

order to qualify for a license under this section.

20150SB0908PN1069 - 119 -

(b) (1) The board may issue a limited distillery license

that will allow the holder thereof to operate a distillery that

shall not exceed production of one hundred thousand (100,000)

gallons of distilled liquor per year. The holder of the license

may manufacture and sell bottled liquors produced on the

licensed premises to the board, to wine and spirits retail

permit holders, to other entities licensed by the board and to

the public between the hours of nine o'clock antemeridian and

eleven o'clock postmeridian so long as a specific code of

distilled liquor which is listed for sale as a stock item by the

board in State liquor stores may not be offered for sale at a

licensed limited distillery location at a price which is lower

than that charged by the board and under such conditions and

regulations as the board may enforce.

(2) (i) The holder of a limited distillery license may,

separately or in conjunction with other limited distillery

licensees, sell bottled liquors produced by the distillery at no

more than two (2) board-approved locations other than the

licensed premises, with no bottling or production requirement at

those additional board-approved locations and under such

conditions and regulations as the board may enforce to the

board, to individuals and to entities licensed by the board.

(ii) If two (2) or more limited distilleries apply to

operate an additional board-approved location in conjunction

with each other, the distilleries need only have one (1) board-

approved manager for the location, need only pay one application

fee and need not designate specific or distinct areas for each

distillery's licensed area. A limited distillery must file an

application for the additional board-approved location, and that

location shall count as one (1) of the two (2) permitted for

20150SB0908PN1069 - 120 -

each limited distillery. A limited distillery is responsible for

keeping only its own complete records. A limited distillery may

be cited for a violation of the recordkeeping requirements of

sections 512 and 513 pertaining to its own records only.

(3) The holder of a limited distillery license may apply for

and hold a hotel liquor license, a restaurant liquor license or

a malt and brewed beverages retail license to sell for

consumption at the restaurant or limited distillery on the

licensed distillery premises liquor, wine and malt or brewed

beverages regardless of the place of manufacture under the same

conditions and regulations as any other hotel liquor license,

restaurant liquor license or malt and brewed beverages retail

license.

(4) The holder of a limited distillery license may sell food

for consumption on or off the licensed premises and at the

limited distillery's additional board-approved locations, and

may sell by the glass, at the licensed premises and at the

limited distillery's additional board-approved locations, only

liquor that may otherwise be sold by the bottle.

(5) The holder of a limited distillery license may provide

tasting samples of liquor that in total do not exceed one and

one-half (1.5) fluid ounces per person on the licensed premises

and at the two (2) board-approved locations. Samples may be sold

or provided free of charge and may only be provided between the

hours of nine o'clock antemeridian and eleven o'clock

postmeridian.

(6) The fee for the limited distillery license shall be in

an amount to be determined by the board but shall not exceed one

thousand five hundred dollars ($1,500).

(7) The board may issue to the holder of a distillery

20150SB0908PN1069 - 121 -

license a limited distillery license in exchange for the

distillery license provided that the applicant has not

manufactured more than one hundred thousand (100,000) gallons of

distilled liquor in the prior calendar year. The board may not

charge a fee for this exchange. An applicant under this

subsection shall surrender his distillery license for

cancellation prior to the issuance of the new limited distillery

license. The authority of the board to exchange a distillery

license for a limited distillery license under this subsection

and this subsection shall expire December 31, 2012.

section 505 may sell bottled liquors produced on the licensed

premises to the board, to wine and spirits retail permit holders

and other entities licensed by the board and to the public

between the hours of nine o'clock antemeridian and eleven

o'clock postmeridian so long as a specific code of distilled

liquor which is listed for sale as a stock item by the board in

State liquor stores may not be offered for sale at a licensed

distillery location at a price which is lower than that charged

by the board and under such conditions and regulations as the

board may enforce.

(2) The holder of a distillery license as issued under

section 505 may provide tasting samples of liquor that in total

do not exceed one and one-half (1.5) fluid ounces. Samples may

be sold or provided free of charge between the hours of nine

o'clock antemeridian and eleven o'clock postmeridian.

Section 35. Section 508 of the act, amended April 29, 1994

(P.L.212, No.30), is amended to read:

Section 508. License Fees.--(a) The annual fee for every

license issued to a limited winery or a winery shall be as

20150SB0908PN1069 - 122 -

prescribed in section 614-A of the act of April 9, 1929

(P.L.177, No.175), known as "The Administrative Code of 1929."

The fee for every license issued to a distillery (manufacturer)

shall be as prescribed in section 614-A of "The Administrative

Code of 1929." The annual fee for all other licenses shall be as

prescribed in section 614-A of "The Administrative Code of

1929." An applicant for renewal of a license issued under this

article shall file a written application with the board together

with an application surcharge of seven hundred dollars ($700).

Whenever any checks issued in payment of filing and/or license

fees shall be returned to the board as dishonored, the board

shall charge a fee of five dollars ($5.00) per hundred dollars

or fractional part thereof, plus all protest fees, to the maker

of such check submitted to the board. Failure to make full

payment or pay the face amount of the check in full and all

charges thereon as herein required within ten days after demand

has been made by the board upon the maker of the check, the

license of such person shall not be renewed for the license

period or validated for any interim period for such year.

(b) For the purpose of this section, the term "proof gallon"

shall mean a gallon liquid which contains one-half its volume of

alcohol of a specific gravity of seven thousand nine hundred

thirty-nine ten thousandths (.7939) at sixty degrees Fahrenheit.

Section 36. The act is amended by adding an article to read:

ARTICLE VIII-A

SUPPLEMENTAL PROVISIONS

Section 801-A. Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

20150SB0908PN1069 - 123 -

"Emergency act." The act of June 6, 1936 (Sp.Sess., P.L.13,

No.4), entitled, as reenacted, "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."

Section 802-A. Controlling provisions.

For the purpose of the emergency act, the following shall

apply:

(1) The term "board" in the emergency act shall include:

(i) The board only to the extent the board is making

sales:

(A) to the general public; or

(B) of liquor sold for on-premises consumption

to licensees holding a license permitting on-premises

consumption of liquor.

(ii) A wine and spirits retail permit holder.

(iii) A wine or spirits wholesale licensee only to

the extent the wholesale licensee makes sales of liquor

sold for on-premises consumption to licensees holding a

license permitting on-premises consumption of liquor.

(iv) Any entity selling liquor to another entity

that is not required to pay the tax imposed by the

emergency act.

(2) The term "net price" shall mean total receipts

received from the sale of liquor without any deductions for

cost or expenses, including, but not limited to:

(i) Any reimbursement from manufacturers, purchasers

or other parties.

(ii) In the case of a bundled sale which includes

20150SB0908PN1069 - 124 -

liquor, the term includes the entire purchase price

charged for the bundled sale, unless a fair market price

for the liquor is separately stated on the sales document

given to the purchaser, then the term shall only include

the price charged for the liquor.

(3) The tax imposed by the emergency act shall be

included in any advertised price, shelf price or any other

price for a container of liquor and shall not be listed as an

itemized tax on any sales receipt for the sale of liquor.

(4) The emergency act shall be administered and enforced

under the provisions of Article II of the act of March 4,

1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,

including the provisions of Article II concerning returns,

payment, assessment and enforcement where applicable, except

that the exclusions and exemptions under Article II of the

Tax Reform Code of 1971 shall not apply to the emergency act,

except for the resale exemption, provided that exemption

shall not be claimed for liquor purchased for on-premises

consumption.

(5) The term "fiscal month" shall mean "calendar month."

Section 37. This act shall take effect as follows:

(1) The addition of Article III-A of the act shall take

effect in 120 days.

(2) The amendment or repeal of sections 207, 215 and 301

of the act shall take effect upon completion of divestiture

of retail sale operations under Article III-A of the act.

(3) The amendment of section 208 of the act shall take

effect upon completion of divestiture of wholesale operations

under Article III-A of the act.

(4) The remainder of this act shall take effect

20150SB0908PN1069 - 125 -

immediately.

20150SB0908PN1069 - 126 -