PRIOR PRINTER'S NO. 2343

PRINTER'S NO.  2889

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

11

Session of

2011

  

  

INTRODUCED BY TURZAI, KILLION, MUSTIO, SAYLOR, CHRISTIANA, AUMENT, BEAR, BLOOM, DAY, DUNBAR, ELLIS, EVANKOVICH, GABLER, GILLEN, GILLESPIE, GINGRICH, GROVE, HARRIS, HELM, KNOWLES, KRIEGER, LAWRENCE, MALONEY, METCALFE, MILLER, MOUL, OBERLANDER, PERRY, QUIGLEY, RAPP, REESE, ROAE, ROCK, SACCONE, SCHRODER, SIMMONS, SONNEY, STEVENSON, SWANGER, TALLMAN AND VULAKOVICH, SEPTEMBER 13, 2011

  

  

AS REPORTED FROM COMMITTEE ON LIQUOR CONTROL, HOUSE OF REPRESENTATIVES, AS AMENDED, DECEMBER 13, 2011   

  

  

  

AN ACT

  

1

Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as

2

reenacted, "An act relating to alcoholic liquors, alcohol and

3

malt and brewed beverages; amending, revising, consolidating

4

and changing the laws relating thereto; regulating and

5

restricting the manufacture, purchase, sale, possession,

6

consumption, importation, transportation, furnishing, holding

7

in bond, holding in storage, traffic in and use of alcoholic

8

liquors, alcohol and malt and brewed beverages and the

9

persons engaged or employed therein; defining the powers and

10

duties of the Pennsylvania Liquor Control Board; providing

11

for the establishment and operation of State liquor stores,

12

for the payment of certain license fees to the respective

13

municipalities and townships, for the abatement of certain

14

nuisances and, in certain cases, for search and seizure

15

without warrant; prescribing penalties and forfeitures;

16

providing for local option, and repealing existing laws,"

17

further providing for enforcement; providing for the

<--

18

privatization of sales of wine and spirits in this

19

Commonwealth through abolition of the State Liquor Stores,

20

through establishment of a franchise and license system for

21

sale of wine and spirits and through imposition of a tax on

22

wine, spirits and beer; and making a related repeal and

<--

23

providing for an enhanced distributor license further

24

providing for definitions, for general powers of board, for

25

when sales may be made at Pennsylvania liquor stores, for

26

sales by Pennsylvania liquor stores; adding provisions

27

relating to wholesale wine distribution; further providing

28

for authority to issue liquor licenses to hotels, restaurants

 


1

and clubs, for sale of malt or brewed beverages by liquor

2

licensees, and for malt and brewed beverages manufacturers',

3

distributors' and importing distributors' licenses; adding

4

provisions relating to enhanced distributor's licenses; and

5

further providing for malt and brewed beverages retail

6

licenses, for distributors' and importing distributors'

7

restrictions on sales and storage, for retail dispensers'

8

restrictions on purchases and sales, for interlocking

9

business prohibited, for licenses not assignable and

10

transfers, for revocation and suspension of licenses and

11

fees, for unlawful acts relative to liquor, alcohol and

12

liquor licensees, for unlawful acts relative to malt or

13

brewed beverages and licensees, for unlawful acts relative to

14

liquor, malt and brewed beverages and licensees, for moneys

15

paid into Liquor License Fund and returned to municipalities,

16

and for moneys paid into State Stores Fund for use of

17

Commonwealth.

18

The General Assembly of the Commonwealth of Pennsylvania

19

hereby enacts as follows:

20

Section 1.  Section 102 of the act of April 12, 1951 (P.L.90,

<--

21

No.21), known as the Liquor Code, reenacted and amended June 29,

22

1987 (P.L.32, No.14), is amended by adding a definition to read:

23

Section 102.  Definitions.--The following words or phrases,

24

unless the context clearly indicates otherwise, shall have the

25

meanings ascribed to them in this section:

26

* * *

27

"Municipal police department" shall mean a police department

28

of a county, city, borough, town or township.

29

* * *

30

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

31

December 7, 1990 (P.L.662, No.160) and December 20, 1996

32

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

33

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

34

(c)  Except as otherwise expressly provided, the purpose of

35

this act is to prohibit the manufacture of and transactions in

36

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

37

this Commonwealth, except by and under the control of the board

38

as herein specifically provided, and every section and provision

- 2 -

 


1

of the act shall be construed accordingly; to provide a

2

structure in this Commonwealth for a distribution system,

3

including the [establishment of Pennsylvania liquor stores and] 

4

licensing of wine and spirits wholesalers, wine and spirits

5

retailers, importing distributors and distributors; and to

6

preserve manufacturers of liquor and alcohol and malt and brewed

7

beverages selling those products within this Commonwealth. The

8

provisions of this act dealing with the manufacture,

9

importation, sale, distribution and disposition of liquor,

10

alcohol and malt or brewed beverages within the Commonwealth

11

through [the instrumentality of the board,] licensees and

12

otherwise, provide the means by which such control shall be made

13

effective. This act shall not be construed as forbidding,

14

affecting or regulating any transaction which is not subject to

15

the legislative authority of this Commonwealth.

16

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

17

system for distribution [that shall include the fixing of prices

18

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

19

malt and brewed beverages, and each of which shall be construed

20

as integral to the preservation of the system, without which

21

system the Commonwealth's control of the sale of liquor and

22

alcohol and malt and brewed beverages and the Commonwealth's

23

promotion of its policy of temperance and responsible conduct

24

with respect to alcoholic beverages would not be possible.

25

* * *

26

Section 3.  Section 207(a), (b), (c) and (j) of the act,

27

amended November 30, 2004 (P.L.1727, No.221) and December 8,

28

2004 (P.L.1810, No.239), are amended to read:

29

Section 207.  General Powers of Board.--Under this act, the

30

board shall have the power and its duty shall be:

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1

[(a)  To buy, import or have in its possession for sale and

2

sell liquor, alcohol, corkscrews, wine and liquor accessories,

3

trade publications, gift cards, gift certificates, wine- or

4

liquor-scented candles and wine glasses in the manner set forth

5

in this act: Provided, however, That all purchases shall be made

6

subject to the approval of the State Treasurer, or his

7

designated deputy. The board shall buy liquor and alcohol at the

8

lowest price and in the greatest variety reasonably obtainable.]

9

(b)  To control the manufacture, possession, sale,

10

consumption, importation, use, storage, transportation and

11

delivery of liquor, alcohol and malt or brewed beverages in

12

accordance with the provisions of this act[, and to fix the

13

wholesale and retail prices at which liquors and alcohol shall

14

be sold at Pennsylvania Liquor Stores. Prices shall be

15

proportional with prices paid by the board to its suppliers and

16

shall reflect any advantage obtained through volume purchases by

17

the board. The board may establish a preferential price

18

structure for wines produced within this Commonwealth for the

19

promotion of such wines, as long as the price structure is

20

uniform within each class of wine purchased by the board. The

21

board shall require each Pennsylvania manufacturer and each

22

nonresident manufacturer of liquors, other than wine, selling

23

such liquors to the board, which are not manufactured in this

24

Commonwealth, to make application for and be granted a permit by

25

the board before such liquors not manufactured in this

26

Commonwealth shall be purchased from such manufacturer. Each

27

such manufacturer shall pay for such permit a fee which, in the

28

case of a manufacturer of this Commonwealth, shall be equal to

29

that required to be paid, if any, by a manufacturer or

30

wholesaler of the state, territory or country of origin of the

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1

liquors, for selling liquors manufactured in Pennsylvania, and

2

in the case of a nonresident manufacturer, shall be equal to

3

that required to be paid, if any, in such state, territory or

4

country by Pennsylvania manufacturers doing business in such

5

state, territory or country. In the event that any such

6

manufacturer shall, in the opinion of the board, sell or attempt

7

to sell liquors to the board through another person for the

8

purpose of evading this provision relating to permits, the board

9

shall require such person, before purchasing liquors from him or

10

it, to take out a permit and pay the same fee as hereinbefore

11

required to be paid by such manufacturer. All permit fees so

12

collected shall be paid into the State Stores Fund. The board

13

shall not purchase any alcohol or liquor fermented, distilled,

14

rectified, compounded or bottled in any state, territory or

15

country, the laws of which result in prohibiting the importation

16

therein of alcohol or liquor, fermented, distilled, rectified,

17

compounded or bottled in Pennsylvania.

18

(c)  To determine the municipalities within which

19

Pennsylvania Liquor Stores shall be established and the

20

locations of the stores within such municipalities].

21

* * *

22

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

23

referral system to assist consumers in locating special items at

24

Pennsylvania Liquor Stores and for the use of electronic

25

transfer of funds and credit cards for the purchase of liquor

26

and alcohol at Pennsylvania Liquor Stores.]

27

* * *

28

Section 4.  Section 208 of the act is amended to read:

29

Section 208.  Specific Subjects on Which Board May Adopt

30

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

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1

limiting the general power conferred by the preceding section,

2

the board may make regulations regarding:

3

[(a)  The equipment and management of Pennsylvania Liquor

4

Stores and warehouses in which liquor and alcohol are kept or

5

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

6

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

7

the board.

8

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

9

alcohol, and its supply to Pennsylvania Liquor Stores.

10

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

11

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

12

this determination the board shall meet not less than twice a

13

year.

14

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

15

various classes, varieties or brands of liquor and alcohol kept

16

for sale by the board under this act.]

17

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

18

and of liquor and alcohol lawfully acquired by any person prior

19

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

20

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

21

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

22

management, sanitation and equipment of places licensed or

23

included in permits.

24

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

25

Pennsylvania Liquor Stores and the transmission of balances to

26

the Treasury Department through the Department of Revenue.

27

(j)  The solicitation by resident or nonresident vendors of

28

liquor from Pennsylvania licensees and other persons of orders

29

for liquor to be sold through the Pennsylvania Liquor Stores

30

and, in the case of nonresident vendors, the collection

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1

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

2

provided herein for importers' licenses.]

3

Section 4.1.  Section 211(a) of the act, amended October 5,

4

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

5

Section 211.  Enforcement.--(a)  There is created within the

6

Pennsylvania State Police a Bureau of Liquor Control Enforcement

7

[which]. The enforcement bureau and municipal police departments 

8

shall be responsible for enforcing this act and any regulations

9

promulgated pursuant thereto. Officers and investigators

10

assigned to the bureau or a municipal police department shall

11

have the power and their duty shall be:

12

(1)  To investigate whenever there are reasonable grounds to

13

believe liquor, alcohol or malt or brewed beverages are being

14

sold on premises not licensed under the provisions of this act.

15

If the investigation produces evidence of the unlawful sale of

16

liquor or malt or brewed beverages or any other violation of the

17

provisions of this act, the officer involved in the

18

investigation shall institute criminal proceedings against the

19

person or persons believed to have been criminally liable, as

20

otherwise provided by law or rule of court.

21

(2)  To arrest on view, except in private homes, without

22

warrant, any person actually engaged in the unlawful sale,

23

importation, manufacture or transportation or having unlawful

24

possession of liquor, alcohol or malt or brewed beverages

25

contrary to the provisions of this act or any other law of this

26

Commonwealth or any person whom the officer/investigator, while

27

in the performance of his assigned duties under and pursuant to

28

this act and any regulations promulgated under this act,

29

observes to be in violation of any of the following provisions:

30

18 Pa.C.S. § 3302 (relating to causing or risking

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1

catastrophe).

2

18 Pa.C.S. § 3304 (relating to criminal mischief).

3

18 Pa.C.S. § 4101 (relating to forgery).

4

18 Pa.C.S. § 5503 (relating to disorderly conduct).

5

18 Pa.C.S. § 5505 (relating to public drunkenness and

6

similar misconduct).

7

18 Pa.C.S. § 5512 (relating to lotteries, etc.).

8

18 Pa.C.S. § 5513 (relating to gambling devices,

9

gambling, etc.).

10

18 Pa.C.S. § 5514 (relating to pool selling and

11

bookmaking).

12

18 Pa.C.S. § 6307 (relating to misrepresentation of age

13

to secure liquor or malt or brewed beverages).

14

18 Pa.C.S. § 6308 (relating to purchase, consumption,

15

possession or transportation of liquor or malt or brewed

16

beverages).

17

18 Pa.C.S. § 6309 (relating to representing that minor is

18

of age).

19

18 Pa.C.S. § 6310.1 (relating to selling or furnishing

20

liquor or malt or brewed beverages to minors).

21

18 Pa.C.S. § 6310.3 (relating to carrying a false

22

identification card).

23

(3)  Upon reasonable and probable cause, to search for and to

24

seize, without warrant or process, except in private homes, any

25

liquor, alcohol or malt or brewed beverages unlawfully

26

possessed, manufactured, sold, imported or transported and any

27

stills, equipment, materials, utensils, vehicles, boats,

28

vessels, animals, aircraft, or any of them, which are or have

29

been used in the unlawful manufacture, sale, importation or

30

transportation of the same. Such liquor, alcohol, malt or brewed

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1

beverages, stills, equipment, materials, utensils, vehicles,

2

boats, vessels, animals or aircraft so seized shall be disposed

3

of as hereinafter provided.

4

(4)  To investigate and issue citations for any violations of

5

this act or any laws of this Commonwealth relating to liquor,

6

alcohol or malt or brewed beverages, or any regulations of the

7

board adopted pursuant to such laws or any violation of any laws

8

of this Commonwealth or of the Federal Government, relating to

9

the payment of taxes on liquor, alcohol or malt or brewed

10

beverages by any licensee, his officers, servants, agents or

11

employes.

12

(5)  To arrest any person who engages in the following

13

offenses when the said offenses are committed against the

14

officer/investigator or any person accompanying and assisting

15

the officer/investigator while the said officer/investigator is

16

performing assigned duties under and pursuant to this act and

17

any regulations promulgated under this act:

18

18 Pa.C.S. § 2701 (relating to simple assault).

19

18 Pa.C.S. § 2702 (relating to aggravated assault).

20

18 Pa.C.S. § 2705 (relating to recklessly endangering

21

another person).

22

18 Pa.C.S. § 2706 (relating to terroristic threats).

23

18 Pa.C.S. § 2709 (relating to harassment [and

24

stalking]).

25

18 Pa.C.S. § 5104 (relating to resisting arrest or other

26

law enforcement).

27

18 Pa.C.S. § 5501 (relating to riot).

28

(6)  To serve and execute warrants issued by the proper

29

authorities for offenses referred to in this subsection and to

30

serve subpoenas.

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1

(7)  To arrange for the administration of chemical tests of

2

breath, blood or urine, including preliminary breath tests, to

3

persons for the purpose of determining the alcoholic content of

4

blood or the presence of a controlled substance by qualified

5

personnel of a State or local police department or qualified

6

personnel of a clinical laboratory licensed and approved by the

7

Department of Health.

8

* * *

9

Section 5.  Section 213 of the act, amended April 29, 1994

10

(P.L.212, No.30), is repealed:

11

[Section 213.  Bureau of Consumer Relations.--The board shall

12

establish a Bureau of Consumer Relations which shall be

13

responsible for handling all consumer complaints and

14

suggestions. The bureau shall develop a system-wide program for

15

investigating all complaints and suggestions and implementing

16

improvements into the State store system. The management of the

17

bureau shall be vested in a director, who shall be assisted by

18

such other personnel as the board deems necessary.]

19

Section 6.  Section 215 of the act, amended June 25, 2010

20

(P.L.217, No.35), is repealed:

21

[Section 215.  Wine and Spirits Marketing.--(e)  The board is

22

authorized to participate in or sponsor wine and spirits events

23

for the purpose of educating consumers as to the wines and

24

spirits available in this Commonwealth. The wine and spirits to

25

be used for the event may be acquired through the State store

26

system or may be donated from outside this Commonwealth.

27

Participation in the tastings may be conditioned on the purchase

28

of a ticket to the event. The event may include events occurring

29

on premises licensed by the board, and the board may sell wine

30

and spirits for off-premises consumption in an area designated

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1

by the board for such sale.]

2

Section 7.  Section 301 of the act, amended July 9, 1976

3

(P.L.527, No.125), is repealed:

4

[Section 301.  Board to Establish State Liquor Stores.--(a)

5

The board shall establish, operate and maintain at such places

6

throughout the Commonwealth as it shall deem essential and

7

advisable, stores to be known as "Pennsylvania Liquor Stores,"

8

for the sale of liquor and alcohol in accordance with the

9

provisions of and the regulations made under this act; except

10

that no store not so already located shall be located within

11

three hundred feet of any elementary or secondary school, nor

12

within a dry municipality without there first having been a

13

referendum approving such location. When the board shall have

14

determined upon the location of a liquor store in any

15

municipality, it shall give notice of such location by public

16

advertisement in two newspapers of general circulation. In

17

cities of the first class, the location shall also be posted for

18

a period of at least fifteen days following its determination by

19

the board as required in section 403(g) of this act. The notice

20

shall be posted in a conspicuous place on the outside of the

21

premises in which the proposed store is to operate or, in the

22

event that a new structure is to be built in a similarly visible

23

location. If, within five days after the appearance of such

24

advertisement, or of the last day upon which the notice was

25

posted, fifteen or more taxpayers residing within a quarter of a

26

mile of such location, or the City Solicitor of the city of the

27

first class, shall file a protest with the court of common pleas

28

of the county averring that the location is objectionable

29

because of its proximity to a church, a school, or to private

30

residences, the court shall forthwith hold a hearing affording

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1

an opportunity to the protestants and to the board to present

2

evidence. The court shall render its decision immediately upon

3

the conclusion of the testimony and from the decision there

4

shall be no appeal. If the court shall determine that the

5

proposed location is undesirable for the reasons set forth in

6

the protest, the board shall abandon it and find another

7

location. The board may establish, operate and maintain such

8

establishments for storing and testing liquors as it shall deem

9

expedient to carry out its powers and duties under this act.

10

(b)  The board may lease the necessary premises for such

11

stores or establishments, but all such leases shall be made

12

through the Department of General Services as agent of the

13

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

14

shall have authority to purchase such equipment and appointments

15

as may be required in the operation of such stores or

16

establishments.]

17

Section 7.1.  Sections 302 and 303 of the act are repealed:

18

[Section 302.  Selection of Personnel.--Officers and employes

19

of the board, except as herein otherwise provided, shall be

20

appointed and employed subject to the provisions of the Civil

21

Service Act.

22

Section 303.  Management of Pennsylvania Liquor Stores.--

23

Every Pennsylvania Liquor Store shall be conducted by a person

24

appointed in the manner provided in the Civil Service Act who

25

shall be known as the "manager" and who shall, under the

26

directions of the board, be responsible for carrying out the

27

provisions of this act and the regulations adopted by the board

28

under this act as far as they relate to the conduct of such

29

stores.]

30

Section 7.2.  Section 304 of the act, amended December 8,

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1

2004 (P.L.1810, No.239), is repealed:

2

[Section 304.  When Sales May Be Made at Pennsylvania Liquor

3

Stores.--(a)  Except as provided for in subsection (b), every

4

Pennsylvania Liquor Store shall be open for business week days,

5

except holidays as that term is defined in section 102. The

6

board may, with the approval of the Governor, temporarily close

7

any store in any municipality.

8

(b)  Certain Pennsylvania Liquor Stores operated by the board

9

shall be open for Sunday retail sales between the hours of noon

10

and five o'clock postmeridian, except that no Sunday sales shall

11

occur on Easter Sunday or Christmas day. The board shall open up

12

to twenty-five per centum of the total number of Pennsylvania

13

Liquor Stores at its discretion for Sunday sales as provided for

14

in this subsection. The board shall submit yearly reports to the

15

Appropriations and the Law and Justice Committees of the Senate

16

and the Appropriations and the Liquor Control Committees of the

17

House of Representatives summarizing the total dollar value of

18

sales under this section.]

19

Section 7.3.  Section 305 of the act, amended May 8, 2003

20

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

21

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

22

6, 2005 (P.L.135, No.39), is repealed:

23

[Section 305.  Sales by Pennsylvania Liquor Stores.--(a)  The

24

board shall in its discretion determine where and what classes,

25

varieties and brands of liquor and alcohol it shall make

26

available to the public and where such liquor and alcohol will

27

be sold. Every Pennsylvania Liquor Store shall be authorized to

28

sell combination packages. If a person desires to purchase a

29

class, variety or brand of liquor or alcohol not currently

30

available from the board, he or she may place a special order

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1

for such item so long as the order is for two or more bottles.

2

The board may require a reasonable deposit from the purchaser as

3

a condition for accepting the order. The customer shall be

4

notified immediately upon the arrival of the goods.

5

In computing the retail price of such special orders for

6

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

7

freight or shipping before applying the mark-up and taxes but

8

shall add the freight or shipping charges to the price after the

9

mark-up and taxes have been applied.

10

Unless the customer pays for and accepts delivery of any such

11

special order within ten days after notice of arrival, the store

12

may place it in stock for general sale and the customer's

13

deposit shall be forfeited.

14

(b)  Every Pennsylvania Liquor Store shall sell liquors at

15

wholesale to hotels, restaurants, clubs, and railroad, pullman

16

and steamship companies licensed under this act; and, under the

17

regulations of the board, to pharmacists duly licensed and

18

registered under the laws of the Commonwealth, and to

19

manufacturing pharmacists, and to reputable hospitals approved

20

by the board, or chemists. Sales to licensees shall be made at a

21

price that includes a discount of ten per centum from the retail

22

price. The board may sell to registered pharmacists only such

23

liquors as conform to the Pharmacopoeia of the United States,

24

the National Formulary, or the American Homeopathic

25

Pharmacopoeia. The board may sell at special prices under the

26

regulations of the board, to United States Armed Forces

27

facilities which are located on United States Armed Forces

28

installations and are conducted pursuant to the authority and

29

regulations of the United States Armed Forces. All other sales

30

by such stores shall be at retail. A person entitled to purchase

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1

liquor at wholesale prices may purchase the liquor at any

2

Pennsylvania Liquor Store upon tendering cash, check or credit

3

card for the full amount of the purchase. For this purpose, the

4

board shall issue a discount card to each licensee identifying

5

such licensee as a person authorized to purchase liquor at

6

wholesale prices. Such discount card shall be retained by the

7

licensee. The board may contract through the Commonwealth

8

bidding process for delivery to wholesale licensees at the

9

expense of the licensee receiving the delivery.

10

(c)  Whenever any checks issued in payment of liquor or

11

alcohol purchased from State Liquor Stores by persons holding

12

wholesale purchase permit cards issued by the board shall be

13

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

14

fee of five dollars per hundred dollars or fractional part

15

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

16

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

17

check in full and all charges thereon as herein required within

18

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

19

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

20

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

21

and the cancellation of the wholesale purchase permit card held

22

by such person.

23

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

24

premises of a Pennsylvania Liquor Store. No manager or other

25

employe of the board employed in a Pennsylvania Liquor Store

26

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

27

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

28

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

29

tasting conducted pursuant to the board's regulations. Such

30

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

- 15 -

 


1

regional offices.

2

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

3

Commonwealth of Pennsylvania and to persons to whom the board

4

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

5

permits for the purchase of such tax exempt alcohol.

6

Such permits may be issued to the United States or any

7

governmental agency thereof, to any university or college of

8

learning, any laboratory for use exclusively in scientific

9

research, any hospital, sanitorium, eleemosynary institution or

10

dispensary; to physicians, dentists, veterinarians and

11

pharmacists duly licensed and registered under the laws of the

12

Commonwealth of Pennsylvania; to manufacturing chemists and

13

pharmacists or other persons for use in the manufacture or

14

compounding of preparations unfit for beverage purposes.

15

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

16

liquor accessories, trade publications, gift cards, gift

17

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

18

from a Pennsylvania Liquor Store shall receive a numbered

19

receipt which shall show the price paid therefor and such other

20

information as the board may prescribe. Copies of all receipts

21

issued by a Pennsylvania Liquor Store shall be retained by and

22

shall form part of the records of such store.

23

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

24

and enforce appropriate rules and regulations to insure the

25

equitable wholesale and retail sale and distribution, through

26

the Pennsylvania Liquor Stores, of available liquor and alcohol

27

at any time when the demand therefor is greater than the supply.

28

(h)  Every Pennsylvania Liquor Store shall sell gift

29

certificates and gift cards which may be redeemed for any

30

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

- 16 -

 


1

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

2

candles, trade publications and wine sleeves at Pennsylvania

3

Liquor Stores.

4

(i)  Notwithstanding any other provision of law to the

5

contrary, the board may sell wine in containers having a

6

capacity of six liters or less.]

7

Section 7.4.  Section 306 of the act is repealed:

8

[Section 306.  Audits by Auditor General.--(a)  It shall be

9

the duty of the Department of the Auditor General to make all

10

audits which may be necessary in connection with the

11

administration of the financial affairs of the board and the

12

Pennsylvania Liquor Stores operated and maintained by the board.

13

Such audits shall be conducted in accordance with generally

14

accepted accounting principles. Nothing herein shall be

15

construed to require the Auditor General to conduct biannual

16

inventories.

17

(b)  At least one audit shall be made each year of the

18

affairs of the board, and all collections made by the

19

Pennsylvania Liquor Stores shall be audited quarterly. A copy of

20

the annual audit of the affairs of the board shall be submitted

21

to each member of the General Assembly.

22

(c)  Special audits of the affairs of the board and the

23

Pennsylvania Liquor Stores maintained and operated by the board

24

may be made whenever they may, in the judgment of the Auditor

25

General, appear necessary, and shall be made whenever the

26

Governor shall call upon the Auditor General to make them.

27

(d)  Copies of all audits made by the Department of the

28

Auditor General shall be promptly submitted to the board and to

29

the Governor.

30

(e)  Unless the Department of the Auditor General shall

- 17 -

 


1

neglect or refuse to make annual, quarterly or special Audits,

2

as hereinabove required, it shall be unlawful for the board to

3

expend any money appropriated to it by the General Assembly for

4

any audit of its affairs, except for the payment of the

5

compensation and expenses of such auditors as are regularly

6

employed as part of the administrative staff of the board.]

7

Section 8.  The act is amended by adding an article to read:

8

ARTICLE III-A

9

WINE AND SPIRITS DISTRIBUTION

10

SUBARTICLE A

11

GENERAL PROVISIONS

12

Section 301-A.  Scope of article.

13

This article relates to liquor distribution privatization.

14

Section 302-A.  Legislative intent.

15

(a)  Declaration.--The General Assembly finds and declares

16

that:

17

(1)  The sale of liquor at wholesale or retail should no

18

longer be by the Commonwealth, but rather by private persons

19

licensed and regulated by the Commonwealth.

20

(2)  The health and welfare of the citizens of this

21

Commonwealth will be adequately protected by the regulation

22

of private licensees through strict enforcement of laws and

23

rules relating to the purchase and sale of liquor.

24

(3)  The sale of liquor through wholesale and retail

25

licensees will improve customer service, selection and price.

26

(4)  The operation and efficiency of State government

27

will be improved.

28

(b)  Purpose.--The General Assembly recognizes the following

29

public policy purposes and declares that the following

30

objectives of the Commonwealth are to be served by this article:

- 18 -

 


1

(1)  The authorization of wine and spirits wholesale and

2

retail licenses is intended to continue and enhance the

3

generation of revenue to the Commonwealth related to the

4

wholesale and retail sale of liquor.

5

(2)  The transition to a privately owned and operated

6

wholesale and retail liquor distribution system shall be

7

accomplished in a manner that protects the public through

8

regulation and policing of all activities involved in the

9

wholesale and retail sale of liquor.

10

(3)  The establishment of wine and spirits wholesale and

11

retail licenses is intended to provide broad economic

12

opportunities to the citizens of this Commonwealth and shall

13

be implemented in such a manner as to prevent monopolization

14

by establishing reasonable restrictions on the control of

15

wholesale and retail licensees.

16

(4)  The transition to a privately owned and operated

17

wholesale and retail liquor distribution system shall be

18

accomplished in a manner that creates incentives and

19

facilitates the transition of Pennsylvania Liquor Store and

20

other effected employees to other employment.

21

(5)  The transition to a privately owned and operated

22

wholesale and retail liquor distribution system shall be

23

accomplished in a manner that minimizes disruption of

24

services to the public.

25

(6)  With the transition to a privately owned and

26

operated wholesale and retail liquor distribution system, it

27

is necessary to enhance alcohol education efforts to ensure

28

against the illegal sale of alcohol, prevent and combat the

29

illegal consumption of alcohol by minors and visibly

30

intoxicated persons, and discourage the intemperate use of

- 19 -

 


1

alcohol.

2

(7)  Participation in the wholesale and retail sale of

3

liquor by any wholesale or retail licensee shall be deemed a

4

privilege, conditioned upon the proper and continued

5

qualification of the licensee and upon the discharge of the

6

affirmative responsibility of each licensee to provide the

7

department and the board with assistance and information

8

necessary to assure that the policies declared by this

9

article are achieved.

10

Section 303-A.  Definitions.

11

The following words and phrases when used in this article

12

shall have the meanings given to them in this section unless the

13

context clearly indicates otherwise:

14

"Adjusted store net profit factor."  The net profit factor

15

for each Pennsylvania Liquor Store divided by the number of

16

retail zones which the department assigns to each Pennsylvania

17

Liquor Store for purposes of determining the minimum bid.

18

"Affiliate" or "person affiliated with."  A person that

19

directly or indirectly, through one or more intermediaries,

20

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

21

specified person.

22

"Agency."  The Pennsylvania Higher Education Assistance

23

Agency.

24

"Bid-rigging."  The concerted activity of two or more persons

25

to determine in advance, or attempt to influence, the selected

26

bidder for a wine and spirits retail license. The term includes

27

any of the following:

28

(1)  Conspiring or cooperating in the preparation of

29

bids, including the determination of bid amounts.

30

(2)  Submitting prearranged bids, agreed-upon higher or

- 20 -

 


1

lower bids or other complementary bids.

2

(3)  Agreeing to submit identical bids.

3

(4)  Agreeing to coordinate the retail zones in which a

4

person will or will not submit a bid.

5

(5)  Agreeing to share profits with or give an equity

6

interest to a person who does not submit the high bid.

7

(6)  Agreeing to set up territories to restrict

8

competition.

9

(7)  Agreeing not to submit a bid.

10

"Blended brand valuation."  For any particular brand of

11

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

12

of a brand.

13

"Brand of liquor."  A liquor product or series of liquor

14

products produced by a single manufacturer.

15

"Change in control."  For purposes of wholesale or retail

16

licensees, the acquisition by a person or group of persons

17

acting in concert of more than 20% of a licensee's securities or

18

other ownership interests, with the exception of any ownership

19

interest of the person that existed at the time of initial

20

licensing, or more than 20% of the securities or other ownership

21

interests of a corporation or other legal entity which owns,

22

directly or indirectly, at least 20% of the securities or other

23

ownership interests of the licensee.

24

"Commission."  The State Civil Service Commission.

25

"Controlling interest."  As follows:

26

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

27

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

28

voting rights under State law or corporate articles or bylaws

29

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

30

members of the board of directors or other governing board or

- 21 -

 


1

the ownership, directly or indirectly, of 5% or more of the

2

securities of the publicly traded corporation.

3

(2)  For a privately held corporation, partnership,

4

limited liability company or other form of privately held

5

legal entity, the holding of any securities in the legal

6

entity.

7

"Countywide adjusted net profit factor."  Fifty percent of

8

the sales to unlicensed customers minus the taxes and cost of

9

goods sold for all existing Pennsylvania Liquor Stores located

10

in a given county divided by the existing number of Pennsylvania

11

Liquor Stores located in that county.

12

"Department."  The Department of General Services of the

13

Commonwealth.

14

"Displaced employee."  A full-time employee of the board

15

whose employment is terminated as a sole and direct result of

16

the board's decision to cease wholesale and retail operations

17

under this article. The term shall not include a person who is

18

terminated for cause or who resigns, is furloughed or is

19

otherwise separated from employment for any other reason.

20

"Institution of higher education."  A public or private

21

institution within this Commonwealth authorized by the

22

Department of Education to grant a certificate, associate degree

23

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

24

of the institution.

25

"Licensed premises" or "controlled area."  The areas approved

26

by the department or the board to be utilized by a wholesale or

27

retail licensee for the distribution of liquor.

28

"Net profit factor."  Fifty percent of the sales to

29

unlicensed customers minus taxes and cost of goods sold for each

30

existing Pennsylvania Liquor Store for the most recent available

- 22 -

 


1

12-month period.

2

"Retail acquisition factor."  As follows:

3

(1)  For Class A wine and spirits retail licenses, the

4

term shall mean a factor of five applied to the adjusted

5

store net profit factor for each retail zone.

6

(2)  For Class B wine and spirits retail licenses, the

7

term shall mean a factor of 2.25 applied to the Statewide

8

adjusted net profit factor of each retail zone.

9

"Retail licensee."  A person that holds a wine and spirits

10

retail license under this article.

11

"Retail zone."  An area, as established by the department,

12

for which a wine and spirits retail license authorizes the

13

distribution of wine and spirits. The location of each

14

Pennsylvania Liquor Store shall be in a separate zone.

15

"Variable pricing."  For purposes of the wholesale sale of

16

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

17

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

18

licensee or a licensee of a different classification. The term

19

shall not include discounts for volume purchases.

20

"Wholesale acquisition factor."  A factor of 2.5 applied to

21

the wholesale profit margin of a brand of liquor in determining

22

the wholesale license fee.

23

"Wholesale licensee."  A person that holds a wine and spirits

24

wholesale license under this article.

25

"Wholesale profit margin."  For any particular liquor

26

product, 20% of the total of costs of goods sold of the product

27

over the most recent 12-month period for which information is

28

available.

29

"Wine and spirits retail license."  A license issued by the

30

department or the board authorizing a person to sell and

- 23 -

 


1

distribute wine and spirits to the public for off-premises

2

consumption.

3

"Wine and spirits wholesale license."  A license issued by

4

the department or the board authorizing a person to sell and

5

distribute liquor on a wholesale basis to retail licensees and

6

other licensees under this act.

7

Section 304-A.  Reports to General Assembly.

8

(a)  Annual report.--One year after the effective date of

9

this section, and each year thereafter, the board, in

10

cooperation with the department, shall submit to the General

11

Assembly an annual report on wholesale and retail alcohol sales

12

in this Commonwealth and the implementation of this article,

13

including the total revenue earned by the issuance of licenses

14

under this article for the wholesale and retail sale of liquor

15

in this Commonwealth.

16

(b)  Review.--Five years following the effective date of this

17

section, the board, in cooperation with the department, shall

18

conduct a thorough review of the operations of wholesale

19

licensees and retail licensees. The board, in cooperation with

20

the department, shall submit a copy of this review and any

21

recommendations relating to the expansion of existing retail

22

zones to the General Assembly. The same review shall be

23

conducted ten years following the effective date of this

24

section.

25

Section 305-A.  Powers and duties of the department and the

26

board.

27

(a)  Orderly transition.--It shall be the power and duty of

28

the department and the board to implement this article and

29

effect an orderly transition to a privately owned and operated

30

wholesale and retail liquor distribution system in this

- 24 -

 


1

Commonwealth in a manner that is consistent with this article

2

and the laws of this Commonwealth and which maintains a

3

continuous level of service to the public. The department shall

4

be primarily responsible to administer the transition to a

5

privately owned wholesale and retail liquor distribution system.

6

The board shall be primarily responsible for enforcement of this

7

article and this act on the liquor distribution operations of

8

private wholesale and retail licensees and the administration of

9

this article once the privatization transition is completed.

10

(b)  Specific duties.--Within 180 days of the effective date

11

of this section, the department shall utilize the authority

12

provided for under section 306-A and any other powers of the

13

department and with the full cooperation and assistance of the

14

board, shall, at a minimum, have completed all of the following

15

duties:

16

(1)  Establishment of an application process and schedule

17

for the investigation and award of wine and spirits wholesale

18

licenses under this article.

19

(2)  Establishment of a blended brand valuation for each

20

brand of liquor sold by Pennsylvania Liquor Stores in this

21

Commonwealth.

22

(3)  Establishment of retail zones to be utilized by the

23

department in conducting the auction of Class A wine and

24

spirits retail licenses under this article.

25

(4)  Assignment of the 500 Class B wine and spirits

26

retail licenses to counties across this Commonwealth,

27

excluding counties of the first class, to be utilized by the

28

department in conducting Class B auctions.

29

(5)  Establishment of a process for the auction of wine

30

and spirits retail licenses under this article.

- 25 -

 


1

(6)  Establishment of minimum bid amounts for each wine

2

and spirits retail license to be auctioned under this

3

article.

4

(7)  Establishment of procedures and standards governing

5

the relationship between wholesale licensees and

6

manufacturers and the ability and terms upon which that

7

relationship may be terminated.

8

Section 306-A.  Temporary regulations.

9

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

10

implementation of this article, regulations promulgated by the

11

department shall be deemed temporary regulations which shall

12

expire no later than three years following the effective date of

13

this section. The department may promulgate temporary

14

regulations not subject to:

15

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

16

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

17

Documents Law.

18

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

19

the Regulatory Review Act.

20

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

21

adopt temporary regulations under subsection (a) shall expire on

22

January 1, 2014. Regulations adopted after this period shall be

23

promulgated as provided by law.

24

Section 307-A.  Order of transition to private distribution

25

system.

26

(a)  Wholesale transition.--The department shall transition

27

the board's wholesale distribution function to privately owned

28

and operated wholesale licensees before divesting the board's

29

retail operations. The transition must substantially divest the

30

board of all operations relating to the wholesale distribution

- 26 -

 


1

of alcohol in this Commonwealth within one year of the effective

2

date of this section.

3

(b)  Retail transition.--Twenty-four months following the

4

effective date of this section, the department shall

5

substantially divest the board of all operations relating to the

6

retail sale of alcohol in this Commonwealth. The department may

7

extend this transition period by up to six months by certifying

8

to the President pro tempore of the Senate, the Minority Leader

9

of the Senate, the Speaker of the House of Representatives and

10

the Minority Leader of the House of Representatives that, due to

11

circumstances beyond its control, the department cannot complete

12

the retail transition in the 24-month period. The department

13

shall provide a detailed explanation of the circumstances which

14

cause the delay with its certification to the General Assembly.

15

(c)  Prohibition.--Except as necessary to ensure a continuous

16

level of service to the public and subject to section 328-A, the

17

board shall not engage in any wholesale or retail distribution

18

of alcohol within this Commonwealth following completion of the

19

wholesale and retail transitions.

20

(d)  Cooperation required.--The board shall fully cooperate

21

with the department in all aspects of implementation of this

22

article and shall provide the department with all records in the

23

possession of the board upon request.

24

Section 1.  The definition of "case" in section 102 of the

<--

25

act of April 12, 1951 (P.L.90, No.21), known as the Liquor Code,

26

reenacted and amended June 29, 1987 (P.L.32, No.14) and amended

27

July 7, 2006 (P.L.584, No.84), is amended and the section is

28

amended by adding definitions to read:

29

Section 102.  Definitions.--The following words or phrases,

30

unless the context clearly indicates otherwise, shall have the

- 27 -

 


1

meanings ascribed to them in this section:

2

* * *

3

"Case" shall mean a package prepared by the manufacturer for

4

sale or distribution of [twelve] six or more original containers

5

totaling [two hundred sixty-four] ninety-six or more fluid

6

ounces of malt or brewed beverages [excepting those packages

7

containing twenty-four or more original containers each holding

8

seven fluid ounces or more].

9

* * *

10

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

11

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

12

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

13

licensee of a different classification. The term shall not

14

include discounts for volume purchases.

15

* * *

16

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

17

wholesale license.

18

* * *

19

Section 2.  Section 207(b), (h) and (k) of the act, added

20

February 21, 2002 (P.L.103, No.10), are amended and the section

21

is amended by adding subsections to read:

22

Section 207.  General Powers of Board.--Under this act, the

23

board shall have the power and its duty shall be:

24

* * *

25

(b)  To control the manufacture, possession, sale,

26

consumption, importation, use, storage, transportation and

27

delivery of liquor, alcohol and malt or brewed beverages in

28

accordance with the provisions of this act, and to fix the

29

wholesale and retail prices at which liquors and alcohol shall

30

be sold at Pennsylvania Liquor Stores. Prices shall be

- 28 -

 


1

[proportional with prices paid by the board to its suppliers and

2

shall reflect any advantage obtained through volume purchases by

3

the board. The board may establish a preferential price

4

structure for wines produced within this Commonwealth for the

5

promotion of such wines, as long as the price structure is

6

uniform within each class of wine purchased by the board] as set

7

forth by the board so long as the price of a particular item is

8

uniform throughout the Commonwealth. The board shall require

9

each Pennsylvania manufacturer and each nonresident manufacturer

10

of liquors, other than wine, selling such liquors to the board,

11

which are not manufactured in this Commonwealth, to make

12

application for and be granted a permit by the board before such

13

liquors not manufactured in this Commonwealth shall be purchased

14

from such manufacturer. Each such manufacturer shall pay for

15

such permit a fee which, in the case of a manufacturer of this

16

Commonwealth, shall be equal to that required to be paid, if

17

any, by a manufacturer or wholesaler of the state, territory or

18

country of origin of the liquors, for selling liquors

19

manufactured in Pennsylvania, and in the case of a nonresident

20

manufacturer, shall be equal to that required to be paid, if

21

any, in such state, territory or country by Pennsylvania

22

manufacturers doing business in such state, territory or

23

country. In the event that any such manufacturer shall, in the

24

opinion of the board, sell or attempt to sell liquors to the

25

board through another person for the purpose of evading this

26

provision relating to permits, the board shall require such

27

person, before purchasing liquors from him or it, to take out a

28

permit and pay the same fee as hereinbefore required to be paid

29

by such manufacturer. All permit fees so collected shall be paid

30

into the State Stores Fund. The board shall not purchase any

- 29 -

 


1

alcohol or liquor fermented, distilled, rectified, compounded or

2

bottled in any state, territory or country, the laws of which

3

result in prohibiting the importation therein of alcohol or

4

liquor, fermented, distilled, rectified, compounded or bottled

5

in Pennsylvania.

6

* * *

7

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

8

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

9

are deemed necessary or advisable for the purpose of carrying

10

into effect the provisions of this act and the regulations made

11

thereunder. Notwithstanding any other provision of law to the

12

contrary, the board is authorized to purchase all goods and

13

services in its sole discretion which are deemed necessary to

14

perform all such acts. The board is authorized to promulgate

15

regulations providing for the procurement of such goods and

16

services.

17

* * *

18

(k)  To [issue grants to various entities] transfer funds

19

from "The state stores Fund" to the Department of Health, Bureau

20

of Drug and Alcohol Programs for alcohol education and

21

prevention efforts pursuant to section 802 of this act.

22

(l)  To establish and implement a customer relations

23

marketing program for the purpose of offering incentives,

24

including coupons or discounts on certain products, to customers

25

of the board.

26

(m)  Notwithstanding any other provision of law to the

27

contrary, to enter into agreements with governmental units of

28

the Commonwealth and other states for the purchase or sale of

29

goods or services with, from or to the governmental units.

30

Section 2.1.  Section 208(c) of the act is amended to read:

- 30 -

 


1

Section 208.  Specific Subjects on Which Board May Adopt

2

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

3

limiting the general power conferred by the preceding section,

4

the board may make regulations regarding:

5

* * *

6

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

7

alcohol, and its supply to Pennsylvania Liquor Stores and the

8

procurement of all other goods and services which are deemed

9

necessary by the board, in its sole discretion, to perform all

10

such acts.

11

* * *

12

Section 2.2.  Section 304(b) of the act, amended December 8,

13

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

14

Section 304.  When Sales May Be Made at Pennsylvania Liquor

15

Stores.--* * *

16

(b)  Certain Pennsylvania Liquor Stores operated by the board

17

shall be open for Sunday retail sales between the hours of

18

[noon] nine o'clock antemeridian and [five] nine o'clock

19

postmeridian, except that no Sunday sales shall occur on Easter

20

Sunday or Christmas day. The board shall open [up to twenty-five

21

per centum of the total number of Pennsylvania Liquor Stores at

22

its discretion], at its discretion, as many Pennsylvania Liquor

23

Stores as it deems necessary for Sunday sales as provided for in

24

this subsection. The board shall submit yearly reports to the

25

Appropriations and the Law and Justice Committees of the Senate

26

and the Appropriations and the Liquor Control Committees of the

27

House of Representatives summarizing the total dollar value of

28

sales under this section.

29

Section 3.  Section 305(b) of the act, amended July 6, 2005

30

(P.L.135, No.39), is amended to read:

- 31 -

 


1

Section 305.  Sales by Pennsylvania Liquor Stores.--* * *

2

(b)  Every Pennsylvania Liquor Store shall sell liquors at

3

wholesale to hotels, restaurants, clubs, and railroad, pullman

4

and steamship companies licensed under this act; and every

5

Pennsylvania Liquor Store shall sell wine at wholesale to

6

enhanced distributors; and, under the regulations of the board,

7

to pharmacists duly licensed and registered under the laws of

8

the Commonwealth, and to manufacturing pharmacists, and to

9

reputable hospitals approved by the board, or chemists. Sales to

10

licensees shall be made at a price that includes a discount of

11

[ten] fifteen per centum from the retail price. The board may

12

sell to registered pharmacists only such liquors as conform to

13

the Pharmacopoeia of the United States, the National Formulary,

14

or the American Homeopathic Pharmacopoeia. The board may sell at

15

special prices under the regulations of the board, to United

16

States Armed Forces facilities which are located on United

17

States Armed Forces installations and are conducted pursuant to

18

the authority and regulations of the United States Armed Forces.

19

All other sales by such stores shall be at retail. A person

20

entitled to purchase liquor at wholesale prices may purchase the

21

liquor at any Pennsylvania Liquor Store upon tendering cash,

22

check or credit card for the full amount of the purchase. For

23

this purpose, the board shall issue a discount card to each

24

licensee identifying such licensee as a person authorized to

25

purchase liquor at wholesale prices. Such discount card shall be

26

retained by the licensee. The board may contract through the

27

Commonwealth bidding process for delivery to wholesale licensees

28

at the expense of the licensee receiving the delivery.

29

* * *

30

Section 4.  The act is amended by adding an article to read:

- 32 -

 


1

ARTICLE III-A

2

WHOLESALE DISTRIBUTION

3

SUBARTICLE A

4

(RESERVED)

5

SUBARTICLE B

6

PRIVATIZATION OF WHOLESALE LIQUOR WINE DISTRIBUTION

<--

7

Section 308-A.  Wholesale divestiture wine licenses.

<--

8

(a)  Authorized wine and spirits wholesale licenses.--

9

(1)  One wine and spirits wholesale license may be issued

<--

10

by the department board to each successful applicant. The

<--

11

license shall authorize the distribution of the brands of

12

liquor wine to retail licensees and other licensees

<--

13

authorized to sell or distribute liquor wine under this act,

<--

14

as proposed by an applicant and approved by the department 

<--

15

board.

<--

16

(2)  Subject to the restrictions enumerated under section

17

313-A, wholesale licensees may distribute more than one brand

18

of liquor wine under the same wine and spirits wholesale

<--

19

license.

20

(3)  Upon application by a wholesale licensee, the board

21

may amend the authorization under a wine and spirits 

<--

22

wholesale license to include or exclude additional brands of

23

liquor wine.

<--

24

(b)  Wholesale license fee.--

25

(1)  At the time of license issuance, the department 

<--

26

board shall impose a one-time license fee to be paid by each

<--

27

successful applicant for a wine and spirits wholesale license

<--

28

in an amount equal to the blended brand valuation for each

<--

29

brand of liquor authorized by the license multiplied by the

30

wholesale acquisition factor.

- 33 -

 


1

(2)  (i)  Within the time prescribed under section 305-A,

2

the department shall determine and publish as a notice in

3

the Pennsylvania Bulletin the license fee for each brand

4

of liquor sold at Pennsylvania Liquor Stores for a

5

continuous period of at least one year prior to the

6

effective date of this section.

7

(ii)  For any brand of liquor that is not sold at

8

Pennsylvania Liquor Stores for a continuous period of one

9

year prior to the effective date of this section and is

10

proposed to be distributed by an applicant for a wine and

11

spirits wholesale license, the department shall determine

12

and publish the applicable license fee by considering the

13

blended brand valuation for the brand from a comparable

14

jurisdiction and applying the wholesale acquisition

15

factor.

16

(iii)  In the event that data is not available from a

17

comparable jurisdiction to establish the blended brand

18

valuation for the brand, the department shall determine

19

the license fee by utilizing the license fee from a

20

comparable brand sold at Pennsylvania Liquor Stores. 

21

$100,000,000.

<--

22

(3) (2)  If, at any time during the term of a wine and

<--

23

spirits wholesale license, the wholesale licensee proposes to

24

sell and distribute a new brand of liquor wine not previously

<--

25

sold in this Commonwealth, the wholesale licensee shall apply

26

to the board for permission to sell the brand and pay an

<--

27

additional license fee determined in accordance with this

28

section.

29

(c)  Term.--

30

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

<--

- 34 -

 


1

of the license fee, shall be in effect unless suspended,

2

revoked or not renewed by the board upon good cause

3

consistent with the license requirements as provided for

4

under this article.

5

(2)  The license of a wholesale licensee in good standing

6

shall be renewed every two years consistent with this

7

article.

8

(3)  Nothing under this subsection shall be construed to

9

relieve a wholesale licensee of the affirmative duty to

10

notify the board of any changes relating to the status of its

11

license or to any other information contained in the

12

application materials on file with the department or the 

<--

13

board.

14

Section 309-A.  (Reserved).

15

Section 310-A.  Application for wine and spirits wholesale

<--

16

license.

17

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

18

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

19

as shall be required by the department board.

<--

20

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

21

wine and spirits wholesale license if the person satisfies all

<--

22

of the following:

23

(1)  Neither the applicant nor any affiliate of the

24

applicant has applied for or holds a wine and spirits retail 

<--

25

liquor license or distributor license.

<--

26

(2)  The applicant, if a corporation, a limited liability

27

company, limited partnership, partnership, association or

28

other legal entity, is organized under the laws of this

29

Commonwealth.

30

(3)  The applicant, if a natural person, is a citizen of

- 35 -

 


1

the United States and a resident of this Commonwealth.

2

(4)  Neither the applicant nor any affiliate of the

3

applicant, executive officer, director or general or limited

4

partner of the applicant, or person holding, directly or

5

indirectly, a controlling an interest in the applicant has

<--

6

been convicted of a felony or crime identified in subsection

7

(d)(9).

8

(c)  Other licenses.--Nothing under this article or act shall

9

be construed to prohibit a properly licensed importing

10

distributor of malt and brewed beverages from applying for and,

11

if approved, being issued a wine and spirits wholesale license.

<--

12

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

13

information required under this article or as may be required by

14

the department board, the applicant for a wine and spirits 

<--

15

wholesale license shall include, at a minimum, the following:

16

(1)  The name and address of the applicant.

17

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

18

individual, corporation, limited liability company, limited

19

partnership, partnership or association and the state of

20

incorporation or organization.

21

(3)  The names and residence addresses of each executive

22

officer, director, general or limited partner and person

23

holding a controlling an interest in the applicant.

<--

24

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

25

residence addresses of the persons constituting the

26

association.

27

(5)  A statement of the brands of liquor wine the

<--

28

applicant proposes to distribute and, for each brand, whether

29

the applicant proposes to engage in wholesale distribution on

30

a Statewide or regional basis.

- 36 -

 


1

(6)  The proposed location and proof of ownership or

2

lease for the wholesale operation, including any proposed

3

warehouses, if available.

4

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

5

wholesale operations and existing design plans for any

6

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

7

extent they are available.

8

(8)  Information disclosing all arrests of the applicant

9

and any affiliate of the applicant, executive officer,

10

director or general or limited partner of the applicant or

11

person holding a controlling an interest in the applicant and

<--

12

all citations issued to the same for nonsummary offenses.  

13

The information shall include:

14

(i)  A brief description of the circumstances

15

surrounding the arrest or issuance of the citation.

16

(ii)  The specific offense charged or cited.

17

(iii)  The ultimate disposition of the charge or

18

citation, including the details of any dismissal, plea

19

bargain, conviction, sentence, pardon, expungement or

20

order of accelerated rehabilitative disposition.

21

(9)  A sworn statement that the applicant and any

22

affiliate of the applicant, executive officer, director or

23

general or limited partner of the applicant or person holding

24

a controlling an interest in the applicant have never been

<--

25

convicted:

26

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

27

racketeering within a period of ten years immediately

28

preceding the date of the application;

29

(ii)  of any felony or equivalent crime; or

30

(iii)  in any Federal or state jurisdiction,

- 37 -

 


1

including this Commonwealth, of the violation of any

2

Federal or state liquor law.

3

(10)  A statement that the applicant intends to

4

continuously operate as a wholesale licensee for the duration

5

of the license term and to provide a level of service,

6

including product availability, reasonably equivalent to the

7

level of service currently provided by the Commonwealth.

8

(11)  A financial statement in a form and containing such

9

information as the department board shall prescribe to

<--

10

indicate the applicant's financial capability to operate the

11

wholesale operation and the estimated volume of wholesale

12

business to be conducted annually.

13

(12)  (i)  A current tax lien certificate issued by the

14

Department of Revenue for the applicant and any affiliate

15

of the applicant, executive officer, director or general

16

or limited partner of the applicant or person holding a 

<--

17

controlling an interest in the applicant.

<--

18

(ii)  Any unpaid taxes identified on a tax lien

19

certificate required to be filed with the application

20

must be paid before the application is considered

21

complete and reviewed by the department board.

<--

22

(13)  A signature and verification by oath or

23

affirmation, or under penalty of unsworn falsification to

24

authorities, by the applicant, if a natural person, or, when

25

the applicant is a legal entity, a person specifically

26

authorized by the legal entity to sign the application, to

27

which shall be attached written evidence of that authority.

28

(e)  Additional information.--An applicant shall have a

29

continuing duty during the application process to provide any

30

other information determined to be appropriate by the department 

<--

- 38 -

 


1

board.

<--

2

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

3

information provided to the department board as part of the

<--

4

application process, the applicant shall immediately notify the

5

department board of the change and timely provide amended

<--

6

information to the department board in a form and manner

<--

7

determined by the department board.

<--

8

(g)  Application fees and investigative costs.--

9

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

10

upon application for a wine and spirits wholesale license.

<--

11

(2)  The department board shall establish, charge and

<--

12

collect fees from an applicant to recover the costs directly

13

related to the department's board's review and investigation

<--

14

of that applicant's application for a wine and spirits 

<--

15

wholesale license. The board shall have the same duty

<--

16

relating to fees as to applications for renewal.

17

Section 311-A.  Review and investigation of application.

18

(a)  Completeness of application.--

19

(1)  (i)  The department board may not consider an

<--

20

incomplete application and shall notify the applicant in

21

writing if an application is incomplete.

22

(ii)  An application shall be considered incomplete

23

if it does not include all applicable fees and all

24

information and accompanying documentation required by

25

the department board, including the payment of any unpaid

<--

26

taxes identified on any tax lien certificate required to

27

be filed with the application.

28

(2)  A notification of incompleteness shall state the

29

deficiencies in the application that must be corrected prior

30

to consideration of the merits of the application.

- 39 -

 


1

(3)  The applicant shall be afforded a reasonable period

2

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

<--

3

deficiencies.

4

(4)  If the applicant fails to timely cure noticed

5

deficiencies, the application shall be deemed denied by the

6

department board without further action.

<--

7

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

8

wine and spirits wholesale license and a determination that the

<--

9

application is complete, the department board shall conduct an

<--

10

investigation of the application as deemed necessary or

11

desirable. The investigation shall include, and the applicant

12

shall have the burden of demonstrating, at a minimum, the

13

following:

14

(1)  The truth and veracity of the information provided

15

in the application.

16

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

17

any affiliate of the applicant, executive officer, director

18

or general or limited partner of the applicant or person

19

holding a controlling an interest in the applicant in the

<--

20

application process and with any request by the department or 

<--

21

the board for any information deemed necessary for licensure.

22

(3)  The good character, integrity and suitability of the

23

applicant and any affiliate of the applicant, executive

24

officer, director or general or limited partner of the

25

applicant or person holding a controlling an interest in the

<--

26

applicant.

27

(4)  The applicant possesses sufficient financial

28

resources to:

29

(i)  Operate as a wholesale licensee.

30

(ii)  Pay all taxes due and owing to the

- 40 -

 


1

Commonwealth.

2

(iii)  Assume liability for the safe operation of the

3

wholesale operations.

4

(5)  The applicant possesses sufficient business ability

5

and experience to create and maintain a successful and

6

efficient wholesale operation that provides service at a

7

level that is reasonably equivalent to the level of service

8

currently provided in this Commonwealth at the time of

9

enactment of this article.

10

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

11

applicant's wholesale operations are located and designed in

12

such a manner as to:

13

(i)  Assure that all warehouses are located within

14

this Commonwealth.

15

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

16

customer access.

17

(iii)  Not have any interior connection with any

18

other business or with any residential building without

19

prior board approval.

20

(iv)  Provide adequate security to protect the

21

applicant's inventory from unauthorized sale or

22

diversion.

23

(v)  Protect the public interest.

24

(c)  Assistance with investigations.--The department board 

<--

25

may enter into an agreement with the Pennsylvania State Police

26

or the Office of Inspector General to assist the department 

<--

27

board in the conduct of investigations under this section and to

<--

28

provide for the reimbursement of actual costs incurred for

29

providing the  assistance.

30

Section 312-A.  Issuance of licenses.

- 41 -

 


1

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

2

under section 311-A, the department board shall inform the

<--

3

applicant in writing of its decision to approve or deny the

4

application.

5

(b)  Approval.--

6

(1)  If the application is approved, the department shall

<--

7

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

<--

8

shall also notify the successful applicant of the $100,000,000

<--

9

licensing fee due, as required by section 308-A(b)(1), based on

<--

10

the brand licensing fees established under section 308-A(b)(2)

11

for the brands of liquor approved for the applicant.

12

(2)  If wholesale distribution of a brand of liquor for

13

an applicant is approved for a region of this Commonwealth,

14

and on less than a Statewide basis, the department shall

15

calculate the licensing fee for that brand through a pro rata

16

allocation of the wholesale profit margin for that brand

17

associated with the region for which wholesale distribution

18

is approved. and the procedure and deadline for payment.

<--

19

(c)  Denial.--

20

(1)  If an application is denied, the department board 

<--

21

shall provide the applicant with the specific reasons for the

22

denial in the written notification required under subsection

23

(a).

24

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

25

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

26

department's board's notification. An applicant requesting a

<--

27

hearing must do so in writing on a form and in a manner

28

prescribed by the department board.

<--

29

(3)  Any hearing conducted under this section shall

30

comply with 2 Pa.C.S. § 505 (relating to evidence and cross-

- 42 -

 


1

examination).

2

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

3

department board shall issue a wine and spirits wholesale

<--

4

license to the applicant, if the applicant has completed all of

5

the following acts:

6

(1)  Paid the license fee required under this article.

7

Payment shall be made by certified check or wire transfer to

8

a designated restricted account in the State Stores Fund.

9

(2)  Paid any outstanding application or investigation

10

fees.

11

(3)  Executed and delivered to the department board the

<--

12

statement of conditions required under section 313-A.

13

(4)  Purchased the board's existing and marketable

<--

14

warehouse inventory of all brands of liquor the applicant is

15

being authorized to distribute at the board's original cost,

16

subject to the excise tax provided for under section 336-A,

17

plus an administrative fee to be determined by the board.

18

(5) (4)  Fulfilled any other conditions required by the

<--

19

department or the board or provided for by this article.

<--

20

(e)  License as privilege.--

21

(1)  Nothing contained under this article is intended or

22

shall be construed to create an entitlement to a wine and

<--

23

spirits wholesale license.

24

(2)  The authorization to participate in the distribution

25

and sale of liquor wine as a wholesale licensee is a

<--

26

privilege conditioned upon this article.

27

(f)  Other licenses.--Nothing under this article or this act

28

shall be construed to prohibit a wholesale licensee from

29

applying for and, if approved, being issued a license as an

30

importing distributor of malt and brewed beverages.

- 43 -

 


1

Section 313-A.  Wholesale licensee statement of conditions.

2

(a)  Statement of conditions.--The department board shall

<--

3

develop a statement of conditions to be executed by each

4

wholesale licensee governing the wine and spirits wholesale

<--

5

licensee.

6

(b)  Conditions.--In addition to any other conditions the

7

department board deems necessary or appropriate for a specific

<--

8

wholesale licensee, a statement of conditions under this section

9

shall include, at a minimum, the following conditions and impose

10

the following obligations and requirements on an ongoing basis:

11

(1)  Wholesale licensees may not under any circumstances

12

sell liquor wine to persons not licensed under this act.

<--

13

(2)  Wholesale licensees shall serve all licensees

14

eligible to purchase liquor wine under this act and shall

<--

15

make liquor wine available for sale to those licensees under

<--

16

the same pricing structure.

17

(3)  Except for wholesale licensees that hold an

18

importing distributor license under section 431, wholesale

19

licensees may not under any circumstances sell malt or brewed

20

beverages.

21

(4)  Wholesale licensees may not under any circumstances

22

engage in variable pricing in sales of liquor wine to persons

<--

23

licensed under this act.

24

(5)  Wholesale licensees shall acquire liquor wine 

<--

25

exclusively from a licensed manufacturer or importer of wine

26

and spirits as provided under this act and keep a detailed

<--

27

log of all wholesale liquor wine transactions, both

<--

28

acquisitions and sales to licensees under this act.

29

(6)  A wholesale licensee's licensed premises and all

30

facilities involved in its wholesale operations, including

- 44 -

 


1

any changes to those facilities during the term of the

2

license, shall be subject to the inspection, investigation

3

and approval of the department or the board.

<--

4

(7)  Wholesale licensees shall maintain adequate security

5

to protect the licensee's inventory from unauthorized sale or

6

diversion and prevent its unauthorized distribution.

7

(8)  Wholesale licensees may engage in any separate

8

business activity upon any licensed premises, but only with

9

prior approval of the board.

10

(9)  Wholesale licensees may sell liquor wine between 2

<--

11

a.m. of any Monday and 12 midnight of the following Saturday.

12

(10)  Wholesale licensees shall collect and remit to the

<--

13

Department of Revenue the excise tax as provided under

14

section 336-A.

15

(11) (10)  The wholesale licensee shall be considered a

<--

16

Pennsylvania Liquor Store for the purposes of collecting and

17

remitting taxes consistent with the act of March 4, 1971

18

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

19

persons licensed to sell liquor for on-premises consumption

20

under Article IV.

21

(12) (11)  Wholesale licensees shall notify the board

<--

22

within 15 days of any change in persons holding a controlling  

<--

23

an interest in the licensee.

<--

24

(13) (12)  Wholesale licensees shall notify the board

<--

25

within 15 days of becoming aware of any arrest or criminal

26

indictments or convictions by the wholesale licensee or any

27

affiliate of the licensee, executive officer, director or

28

general or limited partner of the licensee or person holding

29

a controlling an interest in the licensee.

<--

30

(14) (13)  Wholesale licensees shall notify the board

<--

- 45 -

 


1

within 15 days of becoming aware of any violation of this act

2

by the licensee or any affiliate of the licensee, executive

3

officer, director or general or limited partner of the

4

licensee, person holding a controlling an interest in the

<--

5

licensee or employee of the licensee.

6

(15) (14)  Neither a wholesale licensee, nor any of its

<--

7

affiliates, shall, at any time, seek to be approved or be

8

approved by the department or the board to distribute brands

<--

9

of liquor wine in a manner which results in the licensee

<--

10

controlling more than 50% of the liquor wine distributed in

<--

11

the wholesale market of this Commonwealth.

12

(16) (15)  Wholesale licensees shall make the licensed

<--

13

premises, all of the facilities involved in the wholesale

14

operation and all of the business and financial books and

15

records of the wholesale operation available at any time for

16

inspection and audit by the department or the board and the

<--

17

Pennsylvania State Police.

18

(17) (16)  Wholesale licensees shall cooperate fully in

<--

19

any inquiry or investigation by the department or the board

<--

20

OR THE Pennsylvania State Police and provide any information

<--

21

requested by the department or the board or the Pennsylvania

<--

22

State Police.

23

(18) (17)  Wholesale licensees, if a corporation, a

<--

24

limited liability company, limited partnership, partnership,

25

association or other legal entity, shall at all times be

26

organized under the laws of this Commonwealth.

27

(19) (18)  Wholesale licensees, if a natural person,

<--

28

shall at all times be a citizen of the United States and a

29

resident of this Commonwealth.

30

(c)  Sanctions.--A wholesale licensee that fails to comply

- 46 -

 


1

with any condition contained in the licensee's statement of

2

conditions shall be subject to board-imposed administrative

3

sanctions or other penalties authorized under sections 471 and

4

494.

5

(d)  Transition.--Notwithstanding any law or regulation to

<--

6

the contrary, during the period of divestiture of wine and

7

spirits wholesale operations, the following shall apply:

8

(1)  The board shall have no authority to levy or collect

9

the tax imposed under the act of June 9, 1936 (Sp.Sess.,

10

P.L.13, No.4) entitled "An act imposing an emergency State

11

tax on liquor, as herein defined, sold by the Pennsylvania

12

Liquor Control Board; providing for the collection and

13

payment of such tax; and imposing duties upon the Department

14

of Revenue and the Pennsylvania Liquor Control Board," for or

15

on any brand of liquor purchased from a wholesale licensee.

16

(2)  The board shall have no authority to apply a retail

17

mark up on any brand of liquor purchased from a wholesale

18

licensee of more than 25%.

19

Section 314-A.  Loss of rights to wholesale brands of liquor 

<--

20

wine.

<--

21

The procedures and standards established by the department 

<--

22

board under section 305-A(b) to govern the relationship between

<--

23

wholesale licensees and manufacturers shall, at a minimum,

24

incorporate the following principles:

25

(1)  A manufacturer having a contract, including all

26

agreements, understandings or other arrangements, whether

27

written or oral, with a wholesale licensee for the

28

distribution in this Commonwealth of a brand or brands of

29

liquor wine may terminate the distribution rights and

<--

30

transfer such rights to another wholesale licensee upon the

- 47 -

 


1

voluntary agreement of both wholesale licensees. In the event

2

of a voluntary termination and transfer, the manufacturer

3

shall provide written notice of that fact to the board

4

indicating that affected wholesale licensees have both agreed

5

to the termination and transfer. A copy of the notification

6

to the board shall be provided to both wholesale licensees.

7

(2)  If a wholesale licensee does not agree to the

8

termination or transfer of its distribution rights, the

9

manufacturer may terminate or transfer the rights only for

10

good cause, as defined by the department or the board, or

<--

11

upon payment to the terminated wholesale licensee of

12

reasonable compensation, as determined by the board to

13

reflect the value of the wholesale licensee's business

14

related to the terminated brand of liquor wine.

<--

15

(3)  Whether voluntary or involuntary, the termination

<--

16

and transfer of the right to distribute the brand of liquor

17

shall comply with section 327-A.

18

SUBARTICLE C

19

PRIVATIZATION OF RETAIL LIQUOR DISTRIBUTION

20

Section 315-A.  Retail divestiture through issuance of retail

21

licenses.

22

(a)  Initiation of divestiture.--No later than one year

23

following the effective date of this article, and following

24

completion of the wholesale transition, the department shall

25

initiate the divestiture of the Pennsylvania Liquor Store system

26

through the auction of wine and spirits retail licenses.

27

(b)  Authorized retail licenses.--The department shall be

28

authorized to issue 1,250 wine and spirits retail licenses to

29

successful bidders in the retail license auction process.

30

(c)  License classification.--There shall be two classes of

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1

wine and spirits retail licenses as follows:

2

(1)  There shall be 750 Class A wine and spirits retail

3

licenses authorized for issuance to successful bidders

4

consistent with this article. The following shall apply:

5

(i)  Except for Class A licenses in cities of the

6

first class, Class A licenses shall authorize the

7

operation of a retail wine and spirits store in a

8

specific retail zone in an establishment that exceeds

9

15,000 square feet of retail floor space and dedicates a

10

minimum of 600 linear feet of shelf space for the sale of

11

liquor.

12

(ii)  Class A licenses located in a city of the first

13

class shall authorize the operation of a retail wine and

14

spirits store in a specific retail zone in an

15

establishment which shall not be subject to minimum

16

square feet of retail space.

17

(2)  There shall be 500 Class B wine and spirits retail

18

licenses authorized for issuance consistent with this

19

article. Class B licenses shall authorize the operation of a

20

retail wine and spirits store in an establishment that has

21

less than 15,000 square feet in retail floor space.

22

(d)  Retail licenses in cities of the first class.--The

23

following shall govern wine and spirits retail licenses for

24

cities of the first class. The following shall apply:

25

(1)  Of the 750 Class A wine and spirits retail licenses

26

authorized under subsection (c)(1), the department shall be

27

authorized to issue 60 Class A retail licenses to authorize

28

the operation of a wine and spirits store within a city of

29

the first class.

30

(2)  No Class B wine and spirits retail licenses shall be

- 49 -

 


1

authorized to operate a wine and spirits store within a city

2

of the first class.

3

(3)  The remaining 690 Class A licenses and 500 Class B

4

licenses shall authorize the operation of a wine and spirits

5

store in a location in this Commonwealth outside of a city of

6

the first class.

7

(e)  Other licenses.--Nothing under this article or this act

8

may prohibit a retail licensee from applying for and, if

9

approved, being issued a license that authorizes the licensee to

10

sell malt and brewed beverages at retail for off-premises

11

consumption.

12

Section 316-A.  Establishment of retail zones and assignment of

13

Class B licenses.

14

(a)  Establishment of retail zones.--During the initial

15

implementation period as prescribed under section 305-A(b), the

16

department, with the full cooperation and assistance of the

17

board, shall establish retail zones for the issuance of Class A

18

wine and spirits retail licenses, consistent with the following:

19

(1)  The department shall establish 750 retail zones

20

across this Commonwealth.

21

(2)  No more than 60 of these retail zones may be located

22

within a city of the first class, and the remaining 690

23

retail zones shall be located in areas outside of a city of

24

the first class.

25

(3)  Retail zones shall be determined by the department

26

based on historic liquor sales and population density, and in

27

a manner that assures that each existing liquor store

28

location is within a different retail zone.

29

(4)  The department shall establish the retail zones

30

through the promulgation of temporary regulations and shall

- 50 -

 


1

publish these temporary regulations in the Pennsylvania

2

Bulletin.

3

(b)  Assignment of Class B licenses.--During the initial

4

implementation period as prescribed under section 305-A(b), the

5

department, with the full cooperation and assistance of the

6

board, shall assign Class B wine and spirits retail licenses

7

consistent with the following:

8

(1)  The department shall assign Class B wine and spirits

9

retail licenses to counties across this Commonwealth,

10

excluding counties of the first class.

11

(2)  In assigning Class B licenses the department shall

12

balance the factor of historic sales of liquor and population

13

density with the policy objective of assuring adequate and

14

reasonable liquor distribution in all areas of this

15

Commonwealth.

16

(3)  The department shall assign Class B licenses through

17

the promulgation of temporary regulations and shall publish

18

the temporary regulations in the Pennsylvania Bulletin.

19

Section 317-A.  Conduct of retail auctions.

20

(a)  Class A and Class B auctions.--The department shall

21

conduct two retail auctions for wine and spirits retail

22

licenses. The first auction shall be limited to Class A wine and

23

spirits retail licenses and shall be commenced one year from the

24

effective date of this article. The second auction shall be

25

limited to Class B wine and spirits retail licenses and shall be

26

commenced as soon as practicable after the Class A retail

27

license auction is completed.

28

(b)  Class A auctions.--The department shall accept bids and

29

conduct an auction for a Class A retail license for each retail

30

zone.

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1

(c)  Class B auctions.--The department shall conduct an

2

auction for Class B retail licenses for each county in this

3

Commonwealth to which a Class B license has been assigned.

4

Section 318-A.  Retail auction requirements.

5

(a)  Conduct of auctions.--Class A and Class B retail

6

auctions shall be conducted by the department consistent with

7

the following:

8

(1)  The department shall establish a deadline for

9

submission of bids for all auctions.

10

(2)  The department shall review the submission of timely

11

bids to determine compliance with the minimum bid

12

requirements of section 323-A. Bids that do not comply with

13

the minimum bid amount will be rejected for submission.

14

Bidder identification information and bid amount for each

15

accepted bid shall be made subject to public disclosure.

16

(3)  Except for Class B countywide auctions, the

17

department shall review the bids and identify the three

18

highest bids for each retail auction. All bidders in an

19

individual auction shall be notified of the three highest

20

bids in the auction in which they are participating.

21

(4)  For each Class B countywide auction, the department

22

shall identify the number of highest bids which equals two

23

times the number of Class B licenses assigned by the

24

department to a given county. The department shall notify all

25

bidders of the high bidders identified in each Class B

26

auction.

27

(5)  For each retail auction, the department shall

28

establish a best and final offer period in which the highest

29

bidders identified under paragraphs (3) and (4) will be

30

provided an opportunity to submit a revised bid amount that

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1

will represent its best and final offer. In no case may a

2

bidder submit a best and final offer that includes a bid

3

amount which is less than the bidder's original bid.

4

(6)  For Class A retail license auctions, the department

5

shall review the best and final offers and shall select a

6

high bidder for each auction.

7

(7)  For Class B retail license auctions, the department

8

shall review the best and final offers and shall select a

9

high bidder for each Class B license assigned to a specific

10

county.

11

(b)  Other bidders.--Nothing under this article or act shall

12

prohibit a person licensed by the department to sell malt and

13

brewed beverages at retail for off-premises consumption from

14

submitting a bid and, if successful, being issued a wine and

15

spirits retail license.

16

(c)  Bidder collusion strictly prohibited.--It shall be

17

unlawful for any person to conspire, collude or combine with

18

another in order to commit or attempt to commit bid-rigging

19

involving a wine and spirits retail license.

20

(d)  Fines and imprisonment.--A person who violates

21

subsection (c) commits a felony of the third degree and shall,

22

upon conviction, be sentenced to pay a fine of not more than

23

$1,000,000, if an entity other than an individual, or a fine of

24

not more than $50,000, if an individual, or to serve a term of

25

imprisonment of not more than one year, or both.

26

(e)  Alternate civil penalty.--In lieu of criminal

27

prosecution for violation of subsection (c), the Attorney

28

General may bring an action for a civil penalty. In this action,

29

a person found by a court to have violated subsection (c) shall

30

be liable for a civil penalty of not more than $100,000.

- 53 -

 


1

(f)  Disqualification, termination and debarment.--In

2

addition to any other criminal or civil penalties imposed under

3

this section, the following shall apply in the event a person is

4

convicted or found liable of a violation of subsection (c):

5

(1)  The person shall be disqualified from bidding on or

6

holding a wine and spirits retail license or holding any

7

other license authorized under this act for a period of three

8

years.

9

(2)  If the person holds a wine and spirits retail

10

license, or any other license authorized under this act, the

11

license shall be terminated by the board immediately upon the

12

conviction or determination of liability.

13

(3)  The conviction or determination of liability may be

14

grounds for debarment or suspension under 62 Pa.C.S. § 531

15

(relating to debarment or suspension).

16

(g)  Responsibility for enforcement.--

17

(1)  The Office of Attorney General and the district

18

attorneys of the several counties shall have concurrent

19

jurisdiction for the investigation and prosecution of

20

violations of subsection (c).

21

(2)  The Office of Attorney General shall have the

22

authority to investigate and bring a civil action to enforce

23

subsection (c). In furtherance of the responsibilities under

24

this subsection, the Attorney General shall have the

25

administrative subpoena powers set forth under section 919 of

26

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

27

Administrative Code of 1929.

28

Section 319-A.  Postqualification of selected bidders.

29

(a)  Investigation.--Upon selection of a high bidder in each

30

auction, the department shall conduct an investigation of each

- 54 -

 


1

high bidder based upon the information submitted to evaluate

2

whether:

3

(1)  the selected bidder qualifies as a responsible and

4

suitable person to hold a wine and spirits retail liquor

5

license and operate a wine and spirits store location;

6

(2)  the selected bidder has proposed an acceptable

7

facility and location for a wine and spirits store; and

8

(3)  the selected bidder's planned operation is compliant

9

with this article, including the statement of conditions

10

required under section 324-A.

11

(b)  Additional information.--The department may require

12

additional information from a selected bidder and conduct onsite

13

inspections, as necessary, to complete the postqualification

14

process.

15

(c)  Assistance with investigations.--The department may

16

enter into an agreement with the Pennsylvania State Police or

17

the Office of Inspector General to assist the department in the

18

conduct of investigations under this section and that provides

19

for the reimbursement of actual costs incurred for providing

20

assistance under such an agreement.

21

(d)  Public input hearings.--During the postqualification

22

process, the department shall schedule public input hearings in

23

six regions of this Commonwealth, including one for each city of

24

the first class, at which interested members of the public will

25

be provided the opportunity to testify regarding selected bidder

26

qualifications, including the location of proposed wine and

27

spirits stores. The testimony of each public witness shall be

28

considered by the department in the postqualification

29

investigation of selected bidders to which the testimony

30

applies.

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1

(e)  Investigative fees.--The department shall have the

2

authority to establish, charge and collect fees from a selected

3

bidder to recover the costs directly related to the department's

4

investigation within the postqualification process.

5

(f)  Acceptance of qualifications.--A high bidder's

6

qualifications will be accepted by the department if the

7

department's investigation reveals the following:

8

(1)  the bid information was truthful;

9

(2)  the bidder and its officers, directors and

10

principals are of good character, integrity and suitability;

11

(3)  the bidder possesses sufficient financial resources

12

to operate a wine and spirits store, pay all taxes due and

13

meet all other financial obligations;

14

(4)  the bidder possesses sufficient business ability to

15

operate a wine and spirits store; and

16

(5)  the proposed facilities are compliant with all of

17

the operational requirements of the statement of conditions

18

under section 324-A and the requirements of this article.

19

(g)  Offsets.--Within the postqualification investigation

20

process for all selected bidders the department shall take all

21

necessary steps to assure that no two wine and spirits stores

22

are located within one-quarter mile from each other.

23

(h)  Issuance of license.--If a selected bidder's

24

qualifications are accepted by the department, the department

25

shall qualify the bidder and shall issue a wine and spirits

26

retail license upon the occurrence of the following:

27

(1)  The execution and deliverance to the department and

28

the board of the statement of conditions required under

29

section 324-A.

30

(2)  The payment of the bid amount. The bid amount shall

- 56 -

 


1

be paid by certified check or wire transfer to a designated

2

restricted account established in the State Stores Fund.

3

(3)  Payment of any outstanding bid or investigation

4

fees.

5

(4)  Fulfillment of any other conditions required by the

6

department.

7

(i)  Qualifications unacceptable.--If a selected bidder's

8

qualifications are not accepted by the department, the

9

department shall identify the next highest bidder that was not

10

selected in that auction and conduct a postqualification

11

investigation of that bidder, consistent with subsection (a).

12

(j)  Approval of qualifications.--If the qualifications of

13

the bidder selected are approved by the department under

14

subsection (f), the department shall issue a license to the

15

successful bidder consistent with the requirements of subsection

16

(h).

17

(k)  Repeat of process.--If the second highest bidder is not

18

approved, the department shall repeat the postqualification

19

process for the next highest unselected bidder in that auction.

20

(l)  Additional procedures.--If the second highest bidder in

21

an auction is not approved by the department, the department

22

shall determine whether to proceed with a new auction or conduct

23

an additional best and final offer period to consider additional

24

bids from the original auction.

25

(m)  License is a privilege.--Nothing contained under this

26

article is intended or may be construed to create an entitlement

27

to a wine and spirits retail license. The authorization to

28

participate in the distribution and sale of liquor as a retail

29

licensee is a privilege conditioned upon this article.

30

(n)  Terms of licensure.--A wine and spirits retail license,

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1

after payment of the license fee, shall be in effect unless

2

suspended, revoked or not renewed by the board upon good cause

3

consistent with the license requirements as provided for under

4

this article. The license of a retail licensee in good standing

5

shall be subject to renewal every two years consistent with this

6

article. Nothing under this subsection may relieve a retail

7

licensee of the affirmative duty to notify the board of any

8

changes relating to the status of its license or to any other

9

information contained in the application materials on file with

10

the department or the board.

11

Section 320-A.  Auctions with no or insufficient minimum bids.

12

(a)  Reconduct of Class A auctions with modified bid.--If the

13

department conducts a Class A retail auction and no bid is

14

submitted that is equal to or greater than the minimum bid

15

established under section 323-A, the department shall reconduct

16

the auction. Taking into consideration the bids received and

17

rejected in the initial auction, if any, the department, in its

18

discretion, shall establish a modified minimum bid for the

19

reconduct of the auction.

20

(b)  Insufficient number of minimum bids.--As to the Class B

21

auctions, if an insufficient number of bids that meet or exceed

22

the minimum bid are submitted, the department shall select the

23

bids that meet or exceed the minimum bid subject to

24

postqualification and, in its discretion, may conduct a new

25

auction for the remaining Class B licenses without a minimum bid

26

or with a modified minimum bid.

27

Section 321-A.  Protest of bid selection.

28

(a)  Protest.--Within five days of the selection of a bidder

29

in an auction conducted under sections 317-A and 318-A, a bidder

30

that is not selected by the department for the wine and spirits

- 58 -

 


1

retail license for a particular zone may file a protest in

2

writing with the department. An unselected bidder that fails to

3

submit a timely protest as required by this section shall waive

4

its opportunity to challenge or appeal the selection of the

5

department.

6

(b)  Requirements for protests.--A protest filed under this

7

section shall comply with the following requirements:

8

(1)  For Class A auctions and Class B auctions, the

9

subject matter of a protest is restricted to the conduct of

10

the auction for the specific retail zone in which the

11

protester participated. No person may protest an auction in

12

which that person did not participate as a bidder.

13

(2)  An unselected bidder that files a protest must be

14

represented by an attorney at law.

15

(3)  A bidder that files a protest under this section

16

waives its right to, and is disqualified from, being selected

17

by the department as the next highest bidder for

18

postqualification under section 319-A.

19

(4)  As a prerequisite to the filing of a protest, and at

20

the time of the filing of a protest, the protester shall

21

provide the department with a bond, letter of credit or other

22

form of security acceptable to the department in an amount

23

equal to the amount of the selected bid. For protests

24

involving the Statewide Class B auction, the accepted

25

security shall be in an amount equal to the highest bid

26

received from any bidder. If the bid protest does not result

27

in the overturning of the department's bid selection for the

28

specific retail zone protested, and the selected bidder does

29

not pay the bid amount for any reason, the protester shall

30

forfeit its security to the department.

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1

Section 322-A.  Content of bids.

2

Each bid submitted to participate in a retail auction shall

3

meet the following requirements:

4

(1)  The bid shall include a summary page which clearly

5

identifies:

6

(i)  The name, address and tax identification number

7

of the bidder.

8

(ii)  The class of license for which the bid is being

9

submitted.

10

(iii)  The retail zone for which the bid is being

11

submitted.

12

(iv)  Whether the bidding is being submitted for a

13

retail zone within a city of the first class.

14

(v)  The amount of the bid.

15

(vi)  The amount of the minimum bid for the retail

16

auction in which the bidder is participating.

17

(2)  A general description of the bid and the location of

18

the proposed wine and spirits store.

19

(3)  Whether the applicant is an individual, corporation,

20

limited liability company, limited partnership, partnership

21

or association or other legal entity and the state of

22

incorporation or organization and the names and residence

23

addresses of each executive officer, director, general or

24

limited partner and person holding a controlling interest in

25

the applicant.

26

(4)  If the bidder is an association, the bid shall set

27

forth the names and addresses of the persons constituting the

28

association.

29

(5)  If the bidder is a corporation, limited liability

30

company, limited partnership, partnership, association or

- 60 -

 


1

other legal entity, the bid must show that the entity is

2

organized under the laws of this Commonwealth.

3

(6)  If the bidder is a natural person, the bid must show

4

that the bidder is a citizen of the United States and a

5

resident of this Commonwealth and that the bidder is not

6

acting as an agent for any other person, partnership,

7

association or group of persons beneficially interested in

8

the license.

9

(7)  The proposed location and ownership of the site for

10

the wine and spirits store, as well as floor plans of

11

existing facilities to be utilized in the bidder's retail

12

operation and design plans for any facilities not yet

13

constructed, to the extent they are available.

14

(8)  Information disclosing all arrests of the applicant

15

and any affiliate of the applicant, executive officer,

16

director or general or limited partner of the applicant or

17

person holding a controlling interest in the applicant and

18

all citations issued to the same for nonsummary offenses.

19

The information shall include:

20

(i)  A brief description of the circumstances

21

surrounding the arrest or issuance of the citation.

22

(ii)  The specific offense charged or cited.

23

(iii)  The ultimate disposition of the charge or

24

citation, including the details of any dismissal, plea

25

bargain, conviction, sentence, pardon, expungement or

26

order of accelerated rehabilitative disposition.

27

(9)  A sworn statement that the bidder and any affiliate

28

of the bidder, executive officer, director or general or

29

limited partner of the bidder or person holding a controlling

30

interest in the bidder have never been convicted of any crime

- 61 -

 


1

involving fraud, moral turpitude or racketeering within a

2

period of ten years immediately preceding the date of the

3

bid, been convicted of any felony or equivalent crime, or

4

been convicted in any Federal or state jurisdiction,

5

including this Commonwealth, of the violation of any Federal

6

or state liquor law.

7

(10)  A statement that the bidder will continuously

8

operate a wine and spirits store for the duration of the

9

two-year license period and will provide a level of service,

10

including hours of operation and product availability

11

reasonably equivalent to the level of service currently

12

provided in the same geographic area.

13

(11)  The bidder shall provide a financial statement,

14

consistent with the requirements prescribed by the

15

department, which demonstrates the financial capability to

16

operate the wine and spirits store and the estimated volume

17

of business to be conducted.

18

(12)  A current tax lien certificate issued by the

19

Department of Revenue for the bidder and any affiliate of the

20

bidder, executive officer, director or general or limited

21

partner of the bidder, or person holding a controlling

22

interest in the bidder. Any unpaid taxes identified on a tax

23

lien certificate required to be filed with the bid shall be

24

paid before the bid is accepted for submission by the

25

department.

26

(13)  There shall be a bid filing fee of $10,000 which

27

will be submitted by certified check with the bid.

28

(14)  The bid shall be signed and verified by oath or

29

affirmation by the owner, if a natural person or, in the case

30

of an association, by a member or partner thereof or, in the

- 62 -

 


1

case of a corporation or limited liability company, by an

2

executive officer thereof or any person specifically

3

authorized by the corporation to sign the bid, to which shall

4

be attached written evidence of that authority.

5

(15)  A noncollusion affidavit, executed by the bidder,

6

if a natural person, or a person specifically authorized by

7

bidder, if a legal entity, to sign the affidavit, certifying

8

that neither the bidder, nor any affiliate of the bidder,

9

executive officer, director or general or limited partner of

10

the bidder, or person holding a controlling interest in the

11

bidder has engaged in collusion, bid-rigging or other

12

prohibited activity in relation to the bid. The form and

13

content of the noncollusion affidavit shall be determined by

14

the department. Failure of any bidder to provide the required

15

noncollusion affidavit shall disqualify the bid unless cured

16

within a time period determined by the department. Any

17

required noncollusion affidavit shall state whether or not

18

the bidder and any affiliate of the bidder, executive

19

officer, director or general or limited partner of the

20

bidder, or person holding a controlling interest in the

21

bidder has been convicted or found liable for any act

22

prohibited by Federal or state law in any jurisdiction

23

involving conspiracy or collusion with respect to bidding on

24

any public contract or in relation to the sale or lease of

25

any public asset within the last three years. An affirmative

26

statement by the bidder that the bidder, or any affiliate of

27

the bidder, executive officer, director or general or limited

28

partner of the bidder, or person holding a controlling

29

interest in the bidder, has been convicted or found liable on

30

such grounds may be grounds for the department to find the

- 63 -

 


1

bidder not suitable.

2

(16)  A bidder shall have a continuing duty during the

3

auction process to update information in the bid and provide

4

any other information determined to be appropriate by the

5

department.

6

Section 323-A.  Minimum bid for retail auctions.

7

During the initial implementation period as provided for by

8

section 305-A(b), the department shall establish minimum bid

9

amounts for each retail auction consistent with the following

10

requirements:

11

(1)  For Class A retail auctions, the department shall

12

establish the minimum bid for each retail zone by first

13

identifying each retail zone that does not have an existing

14

Pennsylvania Liquor Store located in that zone and assigning

15

each retail zone to the existing Pennsylvania Liquor Store

16

closest in proximity to that retail zone. The department

17

shall then establish the minimum bid for each retail zone by

18

calculating the adjusted store net profit factor for that

19

zone and multiplying it by the retail acquisition factor for

20

Class A retail licenses.

21

(2)  For all Class B retail auctions, the department

22

shall calculate one minimum bid for each county auction by

23

dividing the countywide adjusted net profit factor by the sum

24

of the number of Class A licenses located in a specific

25

county and the number of Class B licenses assigned by the

26

department to that county and then multiplying that sum by

27

the retail acquisition factor for Class B licenses.

28

(3)  The department shall establish minimum bids for all

29

retail auctions through promulgation of temporary regulations

30

under section 306-A and shall publish the temporary

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1

regulations in the Pennsylvania Bulletin.

2

Section 324-A.  Retail licensee statement of conditions.

3

(a)  Statement of conditions.--The department shall develop a

4

statement of conditions to be executed by each retail licensee

5

governing the wine and spirits retail licensee.

6

(b)  Conditions.--In addition to any other conditions the

7

department, in consultation with the board, deems necessary or

8

appropriate for a specific retail licensee, a statement of

9

conditions under this section shall include, at a minimum, the

10

following conditions, and impose the following obligations and

11

requirements on an ongoing basis:

12

(1)  Retail licensees shall be strictly prohibited from

13

selling or distributing liquor to persons under 21 years of

14

age or persons that are visibly intoxicated.

15

(2)  No retail licensee shall operate a retail wine and

16

spirits store located within one-quarter mile of another wine

17

and spirits store.

18

(3)  A retail licensee's wine and spirits store and all

19

facilities involved in its retail operations, including any

20

changes to those facilities during the term of the license,

21

shall be subject to the inspection, investigation and

22

approval of the department or the board.

23

(4)  Retail licensees shall maintain adequate security to

24

protect the licensee's inventory from unauthorized sale or

25

diversion and prevent its unauthorized distribution.

26

(5)  No retail licensee shall engage in any separate

27

business activity upon any licensed premises without prior

28

approval of the board and under no circumstances shall any

29

retail licensee operate a wine and spirits store at a

30

location that sells or distributes fuel.

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1

(6)  Wine and spirits retail licensees may not sell wine

2

or spirits to Article IV licensees and other wine and spirits

3

retail licensees except in an emergency, as defined by

4

regulation by the board.

5

(7)  (Reserved).

6

(8)  Retail licensees shall notify the board within 15

7

days of any change in persons holding a controlling interest

8

in the licensee.

9

(9)  Retail licensees shall notify the board within 15

10

days of becoming aware of any arrest or criminal indictments

11

or convictions by the retail licensee or any affiliate of the

12

licensee, executive officer, director or general or limited

13

partner of the licensee or person holding a controlling

14

interest in the licensee.

15

(10)  Retail licensees shall notify the board within 15

16

days of becoming aware of any violation of this act by the

17

licensee or any affiliate of the licensee, executive officer,

18

director or general or limited partner of the licensee,

19

person holding a controlling interest in the licensee or

20

employee of the licensee.

21

(11)  With the exception of retail licensees which

22

operate a distributor of malt and brewed beverages, the

23

premises of each wine and spirits store shall be a self-

24

contained unit with limited customer access dedicated solely

25

to the sale of liquor and permitted merchandise. Purchases

26

made within the limitations of the premises shall be paid for

27

at a location within the confines of the liquor sales area.

28

With the exception of wine and spirits retail licensees that

29

also hold a license under section 401, no wine and spirits

30

store shall have any interior connection with any other

- 66 -

 


1

business or with any residential building except as approved

2

by the board.

3

(12)  Each retail licensee shall design its controlled

4

area in a manner and with adequate safeguards to ensure that

5

its liquor products are secure and that the area may not be

6

accessed during prohibited hours of operation.

7

(13)  No retail licensee may hold, directly or

8

indirectly:

9

(i)  More than 40 of the Class A wine and spirits

10

retail licenses within this Commonwealth.

11

(ii)  More than five Class B licenses within this

12

Commonwealth. Any Class B license held by a retail

13

licensee shall count against the limitations under

14

subparagraph (i) for Class A licenses.

15

(iii)  More than 10% of the wine and spirits retail

16

licenses in any one county which has ten or more wine and

17

spirits retail licenses.

18

(iv)  More than one wine and spirits retail license

19

in any one county which has less than ten wine and

20

spirits retail licenses.

21

(14)  Every wine and spirits store may sell liquor for

22

consumption off-premises. In addition to the sale of liquor,

23

wine and spirits stores may sell related merchandise within

24

the controlled area of the store. Sales of related

25

merchandise shall not exceed 30% of the gross annual sales of

26

any wine and spirits store. Unless the retail licensee also

27

has a license to sell malt and brewed beverages, no wine and

28

spirits store shall have authority under any circumstances to

29

sell malt or brewed beverages. The board shall promulgate

30

regulations setting forth what additional related merchandise

- 67 -

 


1

may be offered for retail sale in wine and spirits stores.

2

(15)  Retail licensees shall make the licensed premises,

3

all of the facilities involved in the retail operation and

4

all of the business and financial books and records of the

5

retail operation available at any time for inspection and

6

audit by the board.

7

(16)  Wine and spirits store licensees may sell wine or

8

spirits between 8 a.m. and 11 p.m. of any day except Sunday

9

to persons not licensed under this act.

10

(17)  In addition to the hours authorized under paragraph

11

(16), wine and spirits store licensees may, upon purchasing a

12

permit from the board at an annual fee of $1,000, sell wine

13

or spirits to persons not licensed under this act or to a

14

holder of a special occasion permit on Sunday between the

15

hours of 12 noon and 9 p.m.

16

(18)  No wine and spirits licensee shall employ a person

17

under 18 years of age to work in the controlled area, and no

18

employee under 21 years of age shall be permitted to engage

19

in the sale of liquor.

20

(19)  Neither the licensee nor any affiliate of the

21

licensee, at any time, may hold a wine and spirits wholesale

22

license.

23

(20)  The licensee, if a corporation, a limited liability

24

company, limited partnership, partnership, association or

25

other legal entity, shall at all times be organized under the

26

laws of this Commonwealth.

27

(21)  The licensee, if a natural person, shall at all

28

times be a citizen of the United States and a resident of

29

this Commonwealth.

30

(22)  Each licensee shall assure that all wine and

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1

spirits store managers and at least 75% of the employees of a

2

wine and spirits store shall complete Responsible Alcohol

3

Management Control Program training in accordance with

4

section 471.1.

5

(23)  A retail licensee shall not be permitted by the

6

board to keep its wine and spirits retail license in

7

safekeeping for a period which exceeds two years.

8

(24)  Except for employees permitted under paragraph

9

(18), a retail licensee shall ensure that no person under 21

10

years of age is permitted to enter the controlled area unless

11

accompanied by an adult.

12

(25)  In addition to section 495(b) and (c), a wine and

13

spirits retail licensee shall assure the use of swipe

14

identification card technology to verify the age of any

15

person who appears to be under 30 years of age. The board

16

shall promulgate regulations as are necessary for the

17

implementation of swipe identification card technology.

18

(26)  The retail licensee is strictly prohibited from

19

selling a liquor product at a price less than the underlying

20

cost of the product.

21

(27)  The retail licensee shall be considered a

22

Pennsylvania Liquor Store for the purposes of collecting and

23

remitting taxes consistent with the act of March 4, 1971

24

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

25

person other than a person licensed to sell liquor for on-

26

premises consumption under Article IV.

27

(c)  Sanctions.--A retail licensee that fails to abide by any

28

condition contained in the licensee's statement of conditions

29

shall be subject to board-imposed administrative sanctions or

30

other penalties authorized under sections 471 and 494.

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1

SUBARTICLE D

2

MISCELLANEOUS PROVISIONS AND CLOSING OF STATE STORES

3

Section 325-A.  License renewals.

4

(a)  Renewal.--Licenses issued under this article shall be

5

subject to renewal every two years. The application for renewal

6

shall be submitted on a form as directed by the board at least

7

30 days prior to the expiration of the license and shall

8

include, at a minimum, an update of the information contained in

9

the initial and any prior renewal applications and the payment

10

of any renewal application filing fee required by this article.

11

A license for which a completed renewal application and fee has

12

been received by the board will continue in effect unless and

13

until the board sends written notification to the licensee that

14

the board has denied the renewal of the license.

15

(b)  Renewal fee.--An application filing fee of $1,000 shall

16

be due upon application for the renewal of a wine and spirits

17

wholesale license. The board shall have the authority, from time

18

to time, to adjust the renewal application filing fee to ensure

19

that the fee adequately recovers the costs associated with

20

licensure renewal. In addition, the board shall collect fees

21

from a renewal applicant to recover the costs of a renewal

22

investigation.

23

(c)  Renewal hearings.--The board may hold hearings on

24

renewal applications as it deems necessary at a time and in a

25

format as it shall fix. A licensee whose renewal application is

26

denied shall be entitled to a hearing before the board in

27

accordance with section 464.

28

(d)  Revocation or failure to renew.--In addition to any

29

other sanctions the board may impose, the board may, at its

30

discretion, suspend, revoke or deny renewal of any license

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1

issued under this article if it finds that the applicant, or any

2

of its affiliates, executive officers, directors or general or

3

limited partners, or persons holding a controlling interest in

4

the applicant is in violation of any provision of this act, have

5

furnished the board with false or misleading information or are

6

no longer suitable for licensure. In the event of a revocation

7

or failure to renew, the applicant's authorization to conduct

8

business as a wholesale or retail licensee shall immediately

9

cease and all fees paid in connection with it shall be deemed

10

forfeited. In the event of a suspension, the applicant's

11

authorization to conduct business shall immediately cease until

12

the board notifies the applicant that the suspension is no

13

longer in effect.

14

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

15

relieve a licensee of the affirmative duty to notify the board

16

of any changes relating to the status of its license or to any

17

other information contained in the application materials filed

18

with the board.

19

Section 326-A.  Sale, assignment or transfer of license.

20

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

21

transfer a wine and spirits wholesale or retail license granted

22

under this article without the prior written approval of the

23

board and payment of the fee under subsection (d).

24

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

25

change of control of a wholesale or retail licensee shall be

26

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

27

spirits wholesale or retail license. A licensee shall notify the

28

board immediately upon becoming aware of any proposed or

29

contemplated change of control.

30

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

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1

wholesale or retail license is sold, assigned or transferred

2

shall qualify under and comply with this article prior to the

3

sale, assignment or transfer of said license.

4

(d)  Transfer fee.--The transfer of a wine and spirits

5

wholesale or retail license shall be subject to a transfer fee

6

equal to 1% of the license fee paid for that license and shall

7

be paid as a condition of the transfer of the license. The

8

transfer fee applicable to the transfer of brands of liquor

9

under section 327-A(b) shall not apply to the transfer of a wine

10

and spirits wholesale license.

11

Section 327-A.  Transfer of brands of liquor.

12

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

13

this Commonwealth may be transferred to a different wholesale

14

licensee without prior approval from the board.

15

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

16

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

17

application fee equal to 1% of the initial license fee

18

attributable to that brand of liquor.

19

Section 328-A.  Suspension or revocation.

20

(a)  Authority of board.--The board shall have the authority

21

to suspend or revoke a license issued under this article when

22

the board finds that any of the following apply:

23

(1)  The licensee has violated this act or any

24

regulations of the board.

25

(2)  The licensee has knowingly presented to the board

26

false, incomplete or misleading information.

27

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

28

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

29

judge or jury in a Federal or state court.

30

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

- 72 -

 


1

provide a reasonable level of consumer service.

2

(b)  Hearings.--Suspension and revocation hearings shall be

3

held in accordance with the procedures under section 514.

4

(c)  Sales prohibited.--No person may sell liquor at any

5

premises if the license applicable to that premises has been

6

forfeited, suspended or revoked or has expired.

7

(d)  Public sale.--In the event of the revocation, forfeiture

8

or surrender of any retail license in accordance with this

9

article, the board shall conduct an auction to replace the

10

licensee, consistent with the procedures and requirements under

11

this article.

12

Section 329-A.  Closure of Pennsylvania Liquor Stores.

13

(a)  Schedule of closure.--The department, in consultation

14

with the board, shall develop a schedule of closure for the

15

Pennsylvania Liquor Stores that is designed to ensure continuous

16

service to the public during the transition to the private

17

wholesale and retail distribution of liquor. The following shall

18

apply:

19

(1)  Each retail licensee shall provide the department

20

and the board with 30 days' notice of the anticipated date of

21

the licensee's start of retail operations.

22

(2)  Upon receipt of the notice under paragraph (1), the

23

department and the board shall take all necessary steps to

24

enable any Pennsylvania Liquor Store located within the

25

retail zone for that retail licensee to close within five

26

days of the commencement of the retail licensee's operations.

27

(b)  Sale of State store inventory.--The department, in

28

consultation with the board, shall establish a procedure for the

29

sale of the inventory, property and fixtures of all Pennsylvania

30

Liquor Stores consistent with Article XXIV-A of the act of April

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1

9, 1929 (P.L.177, No.175), known as The Administrative Code of

2

1929. Wholesale and retail licensees shall have the opportunity

3

to bid on the items to be sold or otherwise participate in the

4

sale. All proceeds from the sales shall be deposited into the

5

State Stores Fund.

6

Section 330-A.  State Stores Fund.

7

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

8

wholesale or retail applicants, bidders or licensees shall be

9

paid or transferred into a restricted account in the State

10

Stores Fund.

11

Section 331-A.  Return of fee or bid.

12

(a)  Wholesale license fee.--The entire wholesale license fee

13

paid by a wholesale licensee under section 312-A(d)(1) shall be

14

returned if this article is amended or otherwise altered by an

15

act of the General Assembly within five years of the effective

16

date of this section to change provisions relating to the loss

17

of rights to wholesale brands of liquors under section 314-A.

18

(b)  Retail bid amount.--The entire retail bid amount paid by

19

a retail licensee under section 319-A(h)(2) shall be returned if

20

this article is amended or otherwise altered by an act of the

21

General Assembly within five years of the effective date of this

22

section to change the authorization of additional retail

23

licenses under section 315-A.

24

SUBARTICLE E

25

REEMPLOYMENT AND RETRAINING OF

26

DISPLACED BOARD EMPLOYEES

27

Section 332-A.  Preference in public employment hiring.

28

(a)  Commonwealth examinations.--A displaced employee who

29

successfully passes a civil service appointment examination for

30

a paid position administered under the act of August 5, 1941

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1

(P.L.752, No.286), known as the Civil Service Act, and in the

2

classified service existing under the commission's jurisdiction

3

and who further establishes the qualifications required by law

4

for appointment to the position, shall be marked or graded an

5

additional three points above the mark or grade credited for the

6

examination. The total mark or grade obtained by the displaced

7

employee shall represent the final mark or grade of the

8

employee and shall determine his standing on any eligibility

9

list certified or furnished to the appointing power.

10

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

11

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

12

and placement on that list by the board shall establish

13

eligibility for the preference granted under subsection (a).

14

(c)  Noncivil service positions.--If a paid State position

15

does not require a civil service examination, a displaced

16

employee who possesses the requisite qualifications and is

17

eligible to appointment in a paid State position shall be given

18

a preference in the appointment by the appointing authority.

19

(d)  Eligibility.--

20

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

21

provided under subsection (a) and for the preference for

22

noncivil service positions provided under subsection (c)

23

shall cease upon the occurrence of one of the following:

24

(i)  The displaced employee's appointment or hiring

25

into a position in the classified service existing under

26

the commission's jurisdiction or into a paid State

27

position where no civil service examination is required.

28

(ii)  Two years from the board's implementation of

29

its decision to cease wholesale and retail operations

30

under this article.

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1

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

2

under subsection (a) and for the preference for noncivil

3

service positions provided under subsection (c), a displaced

4

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

5

decision to cease wholesale and retail operations under this

6

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

7

for that employee's job function.

8

Section 333-A.  Educational grant eligibility.

9

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

10

a two-year educational grant for attending a program of

11

instruction at an institution of higher education in the

12

following amount:

13

(1)  $1,000 per year for attendance on a full-time basis;

14

or

15

(2)  $500 per year for attendance on a part-time basis.

16

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

17

displaced employees to the agency.

18

(c)  Grant award.--The agency shall make a determination of

19

grant eligibility and shall pay the grant directly to the

20

institution of higher education attended by the displaced

21

employee in a manner consistent with the agency's regulations.

22

Section 334-A.  Reemployment tax credit.

23

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

24

a two-year reemployment tax credit voucher in the amount of

25

$1,000 per taxable year. The voucher shall be made available to

26

each displaced employee upon termination of employment. Each

27

voucher shall be certified by the board before the voucher is

28

provided to the displaced employee and the Department of Revenue

29

shall be informed of each displaced employee to whom a voucher

30

has been provided.

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1

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

2

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

3

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

4

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

5

business, if the employer can demonstrate the following:

6

(1)  That the employee for whom the tax credit is being

7

sought was terminated from a State store within 12 months of

8

being employed by the employer.

9

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

10

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

11

a period not less than one year.

12

(c)  Voucher submittal.--The employer shall submit the tax

13

credit voucher to the Department of Revenue along with the

14

information required under subsection (b)(1) and (2) in

15

conjunction with the filing of a State business tax identified

16

under subsection (d)(2).

17

(d)  Amount of credit.--

18

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

19

every job filled by a displaced employee of $1,000 per

20

taxable year for a maximum of two taxable years.

21

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

22

100% of the employer's:

23

(i)  State corporate net income tax, capital stock

24

and franchise tax or the personal tax of a shareholder of

25

the company if the company is a Pennsylvania S

26

corporation.

27

(ii)  Gross premium tax, gross receipts tax, bank and

28

trust company shares tax, mutual thrift institution tax

29

or title insurance company shares tax.

30

(iii)  Any combination of the taxes under

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1

subparagraphs (i) and (ii).

2

(3)  A displaced employee whose subsequent employment is

3

terminated with an employer who has utilized the reemployment

4

tax credit voucher to claim a one-year $1,000 tax credit may

5

transfer the voucher to a new employer who may use the

6

remaining $1,000 tax credit as a claim against the business

7

tax liability identified under paragraph (2).

8

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

9

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

10

the qualified former board employee.

11

Section 335-A.  Protection of existing benefits.

12

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

13

deemed to affect:

14

(1)  Pension benefits accrued prior to the date of

15

separation occurring as a sole and direct result of the

16

decision to cease wholesale and retail operations under this

17

article.

18

(2)  Payment of any accrued benefit derived from the

19

terms of a preexisting collective bargaining agreement

20

payable upon separation from employment.

21

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

22

hiring benefits, the tax credit for subsequent employers and the

23

protection of benefits arising from an employee's pension or

24

from a preexisting collective bargaining agreement under this

25

section, the board is deemed to have satisfied all obligations

26

to bargain over the effects of its decision to cease wholesale

27

and retail operations under this article which may arise under

28

the act of June 1, 1937 (P.L.1168, No.294), known as the

29

Pennsylvania Labor Relations Act, or the act of July 23, 1970

30

(P.L.563, No.195), known as the Public Employe Relations Act.

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1

(c)  Affect of local regulations.--As a result of the

2

preferential hiring benefits, the tax credit for subsequent

3

employers and the protection of benefits arising from an

4

employee's pension or a preexisting collective bargaining

5

agreement under this section, any local regulations, ordinances

6

or resolutions enacted by a political subdivision regarding

7

notice to displaced workers shall be deemed to be superseded by

8

this article.

9

SUBARTICLE F

10

WINE AND SPIRITS TAXES

11

Section 336-A.  Excise tax on wine and spirits.

12

(a)  Duty to collect taxes.--Except as provided under

13

subsection (f), a wine and spirits wholesale licensee shall have

14

the duty to collect from every manufacturer and importer of wine

15

and spirits an excise tax for wine and spirits sold in this

16

Commonwealth at a rate prescribed under subsections (b) and (c).

17

(b)  Excise tax for wines.--The excise tax rate for wine and

18

natural sparkling wine shall be as follows:

19

(1)  For wines, except natural sparkling wines,

20

containing 0.5% or more alcohol by volume and less than

21

17.259% alcohol by volume, all manufacturers and distributors

22

shall pay a tax at the rate of $8.25 per gallon.

23

(2)  For wines, except natural sparkling wines,

24

containing 17.259% or more alcohol by volume, all

25

manufacturers and distributors shall pay a tax at the rate of

26

$8.75 per gallon.

27

(3)  For natural sparkling wines, all manufacturers and

28

distributors shall pay a tax at the rate of $9 per gallon.

29

(c)  Excise tax for liquors.--Except for the taxes imposed

30

under subsection (b), the excise tax rate for liquors shall be

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1

as follows:

2

(1)  For liquor containing less than 17.259% of alcohol

3

by volume, all manufacturers and distributors shall pay a tax

4

at the rate of $11 per gallon.

5

(2)  For liquor containing 17.259% or more of alcohol by

6

volume and not more than 55.780% of alcohol by volume, all

7

manufacturers and distributors shall pay a tax at the rate of

8

$11.50 per gallon.

9

(3)  For liquor containing more than 55.780% of alcohol

10

by volume, all manufacturers and distributors shall pay a tax

11

at the rate of $12 per gallon.

12

(d)  Inflation index.--Beginning five years from the

13

effective date of this section, the excise tax rates prescribed

14

under subsections (b) and (c) shall be increased on an annual

15

basis in an amount equal to the Consumer Price Index – Gross

16

Domestic Products.

17

(e)  Remittance of excise tax.--Every wine and spirits

18

wholesale licensee within this Commonwealth shall remit taxes

19

imposed and collected under this section to the Department of

20

Revenue monthly on or before the 10th day of the month following

21

collection of the excise tax.

22

(f)  Exemptions.--The taxes imposed under this section shall

23

not apply to:

24

(1)  Malt or brewed beverages.

25

(2)  Liquor sold to a post exchange, ship service store

26

or base exchange located in a military, naval or air force

27

reservation within this Commonwealth.

28

Section 9.  Section 401(a) of the act, amended July 6, 2005

29

(P.L.135, No.39), is amended to read:

30

Section 401.  Authority to Issue Liquor Licenses to Hotels,

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1

Restaurants and Clubs.--(a)  Subject to the provisions of this

2

act and regulations promulgated under this act, the board shall

3

have authority to issue a retail liquor license for any premises

4

kept or operated by a hotel, restaurant or club and specified in

5

the license entitling the hotel, restaurant or club to purchase

6

liquor from a [Pennsylvania Liquor Store] licensee under Article

7

III-A and to keep on the premises such liquor and, subject to

8

the provisions of this act and the regulations made thereunder,

9

to sell the same and also malt or brewed beverages to guests,

10

patrons or members for consumption on the hotel, restaurant or

11

club premises. Such licensees, other than clubs, shall be

12

permitted to sell malt or brewed beverages for consumption off

13

the premises where sold in quantities of not more than one

14

hundred ninety-two fluid ounces in a single sale to one person

15

as provided for in section 407. Such licenses shall be known as

16

hotel liquor licenses, restaurant liquor licenses and club

17

liquor licenses, respectively. No person who holds, either by

18

appointment or election, any public office which involves the

19

duty to enforce any of the penal laws of the United States of

20

America or the penal laws of the Commonwealth of Pennsylvania or

21

any penal ordinance or resolution of any political subdivision

22

of this Commonwealth shall be issued any hotel or restaurant

23

liquor license, nor shall such a person have any interest,

24

directly or indirectly, in any such license.

25

* * *

26

Section 10.  Section 408.12(g), (h) and (i) of the act, added

27

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

28

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

29

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

30

a [Pennsylvania Liquor Store] licensee under Article III-A, a

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1

Pennsylvania limited winery or any seller authorized to sell

2

wine by the bottle or case in this Commonwealth or shall be

3

donated by a person who is neither a licensee nor a permittee

4

who has legally acquired the wine and legally possesses it in

5

this Commonwealth.

6

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

7

seller other than a [Pennsylvania Liquor Store] licensee under

8

Article III-A or a Pennsylvania limited winery, the permittee

9

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

10

purchase such wine. The notice shall include a description of

11

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

12

of the seller and any other information which the board may

13

require. The permittee shall comply with all board regulations

14

regarding taxes and fees.

15

(i)  The permittee shall be responsible for paying to the

16

board an amount equal to all taxes which would have been paid on

17

such wine if it had been purchased from a [Pennsylvania Liquor

18

Store] licensee under Article III-A, together with a processing

19

fee to be determined by the board.

20

* * *

21

Section 11.  Section 410(e) of the act is amended to read:

22

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

23

Restrictions.--* * *

24

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

25

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

26

insular possessions of the United States, and purchase liquor

27

from manufacturers located within this Commonwealth, to be sold

28

outside of this Commonwealth or to [Pennsylvania Liquor Stores] 

29

wholesale licensees under Article III-A within this

30

Commonwealth, or when in original containers of ten gallons or

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1

greater capacity, to licensed manufacturers within this

2

Commonwealth.

3

All importations of liquor into Pennsylvania by the licensed

4

importer shall be consigned to [the board or] the principal

5

place of business or authorized place of storage maintained by

6

the licensee.

7

* * *

8

Section 12.  Section 438 of the act, amended June 25, 2010

9

(P.L.217, No.35), is amended to read:

10

Section 438.  Number and Kinds of Licenses Allowed Same

11

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

12

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

13

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

14

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

15

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

16

five distributor's licenses or one importing distributor's

17

license.

18

(c)  No person shall possess more than one class of license,

19

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

20

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

21

nothing contained in this section shall be construed to prohibit

22

a member of the governing board of a public authority created

23

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

24

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

25

an interest in a distributor or importing distributor license

26

notwithstanding the fact that the public authority has an

27

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

28

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

29

notwithstanding any other provision of this section, an entity

30

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

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1

license and a hotel, restaurant or retail dispenser license for

2

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

3

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

4

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

5

this section.

6

Section 13.  Section 472(a) of the act, amended February 21,

7

2002 (P.L.103, No.10), is amended to read:

8

Section 472.  Local Option.--(a)  In any municipality or any

9

part of a municipality where such municipality is split so that

10

each part thereof is separated by another municipality, an

11

election may be held, subject to subsection (c), on the date of

12

the primary election immediately preceding any municipal

13

election, but not oftener than once in four years, to determine

14

the will of the electors with respect to the granting of liquor

15

licenses to hotels, restaurants, resort facilities and clubs,

16

not oftener than once in four years, to determine the will of

17

the electors with respect to the granting of liquor licenses to

18

public venues, to performing arts facilities, to continuing care

19

retirement communities, to hotels located on property owned by

20

an accredited college or university, to privately-owned private

21

golf courses or to privately-owned public golf courses, not

22

oftener than once in four years, to determine the will of the

23

electors with respect to the granting of licenses to retail

24

dispensers of malt and brewed beverages, not oftener than once

25

in four years, to determine the will of the electors with

26

respect to granting of licenses to wholesale distributors and

27

importing distributors, not more than once in two years, to

28

determine the will of the electors with respect to the granting

29

of club liquor licenses or club retail dispenser licenses to

30

incorporated units of national veterans' organizations, not

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1

oftener than once in two years to determine the will of the

2

electors with respect to the granting of special occasion

3

permits to qualified organizations, or not more than once in

4

four years, to determine the will of the electors with respect

5

to the establishment[, operation and maintenance by the board of

6

Pennsylvania liquor stores] of wine and spirits retail

7

licensees, within the limits of such municipality or part of a

8

split municipality, under the provisions of this act: Provided,

9

however, Where an election shall have been held at the primary

10

preceding a municipal election in any year, another election may

11

be held under the provisions of this act at the primary

12

occurring the fourth year after such prior election: And

13

provided further, That an election on the question of

14

establishing and operating a State liquor store shall be

15

initiated only in those municipalities, or that part of a split

16

municipality that shall have voted against the granting of

17

liquor licenses; and that an election on the question of

18

granting wholesale distributor and importing distributor

19

licenses shall be initiated only in those municipalities or

20

parts of split municipalities that shall have at a previous

21

election voted against the granting of dispenser's licenses.

22

Whenever electors equal to at least twenty-five per centum of

23

the highest vote cast for any office in the municipality or part

24

of a split municipality at the last preceding general election

25

shall file a petition with the county board of elections of the

26

county for a referendum on the question of granting any of said

27

classes of licenses [or the establishment of Pennsylvania liquor

28

stores], the said county board of elections shall cause a

29

question to be placed on the ballots or on the voting machine

30

board and submitted at the primary immediately preceding the

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1

municipal election. Separate petitions must be filed for each

2

question to be voted on. Said proceedings shall be in the manner

3

and subject to the provisions of the election laws which relate

4

to the signing, filing and adjudication of nomination petitions,

5

insofar as such provisions are applicable.

6

When the question is in respect to the granting of liquor

7

licenses, it shall be in the following form:

8

9

10

Do you favor the granting of liquor licenses for the

sale of liquor in.......................................

of.....................................................?

Yes

No

11

When the question is in respect to the granting of liquor

12

licenses to resort facilities in those municipalities that do

13

not already allow the retail sale of liquor, it shall be in the

14

following form:

15

16

17

Do you favor the granting of liquor licenses to resort

facilities for the sale of liquor in the................

of.....................................................?

Yes

No

18

When the question is in respect to the granting of restaurant

19

liquor licenses for use at public venues in those municipalities

20

that do not already allow the retail sale of liquor, it shall be

21

in the following form:

22

23

24

Do you favor the granting of liquor licenses to public

venues for the sale of liquor in the....................

of.....................................................?

Yes

No

25

When the question is in respect to the granting of restaurant

26

liquor licenses for use at performing arts facilities in those

27

municipalities that do not already allow the retail sale of

28

alcohol, it shall be in the following form:

29

30

Do you favor the granting of liquor licenses to

performing arts facilities for the sale of liquor in

Yes

No

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1

2

the.....................................................

of.....................................................?

3

When the question is in respect to the granting of liquor

4

licenses for hotels located on property owned by an accredited

5

college or university in those municipalities that do not

6

already allow the granting of liqu