Regular Session 2015-2016 House Bill 1150 P.N. 1609

PRINTER'S NO. 1609

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1150

Session of

2015

INTRODUCED BY P. COSTA, DERMODY, HANNA, FRANKEL, YOUNGBLOOD,

MARKOSEK, GOODMAN, STURLA, BIZZARRO, BROWNLEE, CALTAGIRONE,

COHEN, DEASY, GIBBONS, KINSEY, MAHONEY, MURT, O'BRIEN,

PASHINSKI, READSHAW, ROZZI, SABATINA, SCHLOSSBERG, SCHREIBER

AND ROEBUCK, MAY 18, 2015

REFERRED TO COMMITTEE ON LIQUOR CONTROL, MAY 18, 2015

AN ACT

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

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

malt and brewed beverages; amending, revising, consolidating

and changing the laws relating thereto; regulating and

restricting the manufacture, purchase, sale, possession,

consumption, importation, transportation, furnishing, holding

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

liquors, alcohol and malt and brewed beverages and the

persons engaged or employed therein; defining the powers and

duties of the Pennsylvania Liquor Control Board; providing

for the establishment and operation of State liquor stores,

for the payment of certain license fees to the respective

municipalities and townships, for the abatement of certain

nuisances and, in certain cases, for search and seizure

without warrant; prescribing penalties and forfeitures;

providing for local option, and repealing existing laws," in

preliminary provisions, further providing for definitions; in

Pennsylvania Liquor Control Board, further providing for

general powers of board; in Pennsylvania Liquor Stores,

further providing for board to establish State liquor stores,

for when sales may be made at Pennsylvania Liquor Stores, and

for sales by Pennsylvania Liquor Stores; and, in licenses and

regulations and liquor and alcohol and malt and brewed

beverages, further providing for authority to issue liquor

licenses to hotels, restaurants and clubs, for sale of malt

or brewed beverages by liquor licensees, for malt and brewed

beverages manufacturers', distributors' and importing

distributors' licenses, for distributors' and importing

distributors' restrictions on sales, storage, etc., for

retail dispensers' restrictions on purchases and sales and

for renewal of licenses and temporary provisions for licenses

in armed service, providing for license auction and further

providing for revocation and suspension of licenses and fines

and for shipment of wine into Commonwealth, providing for

direct shipment of wine and for unlawful acts relative to

liquor, malt and brewed beverages and licensees and for

premises to be vacated by patrons.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The definitions of "distributor," "holiday,"

"importing distributor" and "retail dispenser" in section 102 of

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

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

amended or added May 31, 1996 (P.L.312, No.49) and December 8,

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

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

unless the context clearly indicates otherwise, shall have the

meanings ascribed to them in this section:

* * *

"Distributor" shall mean any person licensed by the board to

engage in the purchase only from Pennsylvania manufacturers and

from importing distributors and the resale of malt or brewed

beverages, except to importing distributors and distributors, in

the original sealed containers as prepared for the market by the

manufacturer at the place of manufacture, but not for

consumption on the premises where sold, and in quantities of not

less than a case or original containers containing one hundred

twenty-eight ounces or more, or as provided in section 431(g),

which may be sold separately.

* * *

"Holiday" shall mean the first day of January, commonly known

as New Year's Day; [the third Monday of January, known as Dr.

Martin Luther King, Jr., Day; the third Monday in February,

known as Presidents' Day; the last Monday in May, known as

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Memorial Day;] the fourth day of July, known as Independence

Day; [the first Monday of September, known as Labor Day;] the

fourth Thursday in November, known as Thanksgiving Day; and the

twenty-fifth day of December, known as Christmas Day.

* * *

"Importing distributor" shall mean any person licensed by the

board to engage in the purchase from manufacturers and other

persons located outside this Commonwealth and from persons

licensed as manufacturers of malt or brewed beverages and

importing distributors under this act, and the resale of malt or

brewed beverages in the original sealed containers as prepared

for the market by the manufacturer at the place of manufacture,

but not for consumption on the premises where sold, and in

quantities of not less than a case or original containers

containing one hundred twenty-eight ounces or more, or as

provided in section 431(g), which may be sold separately.

* * *

"Retail dispenser" shall mean any person licensed to engage

in the retail sale of malt or brewed beverages for consumption

on the premises of such licensee, with the privilege of selling

malt or brewed beverages in quantities not in excess of [one

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

three hundred eighty-four ounces in not more than twenty-four

original containers in a single sale to one person as provided

in section 407, provided the licensee may not sell a package as

prepared for sale or distribution by the manufacturer containing

more than twelve containers, to be carried from the premises by

the purchaser thereof.

* * *

Section 2. Section 207(a) and (b) of the act, amended

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November 30, 2004 (P.L.727, No.221) and December 8, 2004

(P.L.1810, No.239), are amended and the section is amended by

adding subsections to read:

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

board shall have the power and its duty shall be:

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

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

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

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

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

subject to the approval of the State Treasurer, or his

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

lowest price and in the greatest variety reasonably obtainable.

Such sales and purchases may be to or from persons or entities

located both in and outside this Commonwealth.

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

consumption, importation, use, storage, transportation and

delivery of liquor, alcohol and malt or brewed beverages in

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

wholesale and retail prices at which liquors and alcohol shall

be sold at Pennsylvania Liquor Stores. Prices shall be

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

shall reflect any advantage obtained through volume purchases by

the board. The board may establish a preferential price

structure for wines produced within this Commonwealth for the

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

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

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

is uniform throughout this Commonwealth. The board shall require

each Pennsylvania manufacturer and each nonresident manufacturer

20150HB1150PN1609 - 4 -

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

which are not manufactured in this Commonwealth, to make

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

liquors not manufactured in this Commonwealth shall be purchased

from such manufacturer. Each such manufacturer shall pay for

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

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

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

country of origin of the liquors, for selling liquors

manufactured in Pennsylvania, and in the case of a nonresident

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

any, in such state, territory or country by Pennsylvania

manufacturers doing business in such state, territory or

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

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

board through another person for the purpose of evading this

provision relating to permits, the board shall require such

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

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

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

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

alcohol or liquor fermented, distilled, rectified, compounded or

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

result in prohibiting the importation therein of alcohol or

liquor, fermented, distilled, rectified, compounded or bottled

in Pennsylvania.

* * *

(l) To be licensed as a lottery sales agent, as set forth in

section 305 of the act of August 26, 1971 (P.L.351, No.91),

known as the "State Lottery Law," and to take any actions

20150HB1150PN1609 - 5 -

authorized by such designation, except that no bond, insurance

or indemnification may be required from the board.

(m) To establish and implement a customer relations

management program for the purpose of offering incentives, such

as coupons or discounts on certain products, to unlicensed

customers of the board.

Section 3. Section 301(b) of the act is amended to read:

Section 301. Board to Establish State Liquor Stores.--* * *

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

stores or establishments, but all such leases shall be made

through the Department of General Services as agent of the

board. Notwithstanding any other provision of law to the

contrary, the Department of General Services shall have no more

than ninety days from the date the board officially approves a

lease recommendation to send the final lease packet to the

appropriate agencies for further processing. The Department of

General Services shall be required to submit quarterly reports

to the chairman and minority chairman of the Law and Justice

Committee of the Senate and the chairman and minority chairman

of the Liquor Control Committee of the House of Representatives

indicating the number of lease recommendations approved by the

board during the preceding quarter and whether the corresponding

final lease packets were sent to the appropriate agencies within

the ninety-day deadline. If the Department of General Services

fails to regularly submit these quarterly reports or fails to

regularly meet the ninety-day deadline imposed by this

subsection, then the General Assembly may consider legislation

that would allow the board to lease premises for its stores

without the involvement of the Department of General Services.

The board, through the Department of General Services, shall

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have authority to purchase such equipment and appointments as

may be required in the operation of such stores or

establishments.

Section 4. Section 304 of the act, amended December 8, 2004

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

Section 304. When Sales May Be Made at Pennsylvania Liquor

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

Pennsylvania Liquor Store shall be open for business week days,

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

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

any store in any municipality.

(b) Certain Pennsylvania Liquor Stores operated by the board

[shall] may be open for Sunday retail sales between the hours of

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

postmeridian, except that no Sunday sales shall occur on Easter

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

per centum of the total number of Pennsylvania Liquor Stores at

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

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

this subsection. The board shall submit yearly reports to the

Appropriations and the Law and Justice Committees of the Senate

and the Appropriations and the Liquor Control Committees of the

House of Representatives summarizing the total dollar value of

sales under this section.

Section 5. Section 305(b) of the act, amended July 6, 2005

(P.L.135, No.39), is amended and the section is amended by

adding a subsection to read:

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

(b) Every Pennsylvania Liquor Store shall sell liquors at

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

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

regulations of the board, to pharmacists duly licensed and

registered under the laws of the Commonwealth, and to

manufacturing pharmacists, and to reputable hospitals approved

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

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

price. The board may sell to registered pharmacists only such

liquors as conform to the Pharmacopoeia of the United States,

the National Formulary, or the American Homeopathic

Pharmacopoeia. The board may sell at special prices under the

regulations of the board, to United States Armed Forces

facilities which are located on United States Armed Forces

installations and are conducted pursuant to the authority and

regulations of the United States Armed Forces. All other sales

by such stores shall be at retail[.], except that incentives,

such as coupons or discounts on certain products, may be offered

to unlicensed customers of the board as provided for under

sections 207(m) and 493(24)(iii). A person entitled to purchase

liquor at wholesale prices may purchase the liquor at any

Pennsylvania Liquor Store upon tendering cash, check or credit

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

board shall issue a discount card to each licensee identifying

such licensee as a person authorized to purchase liquor at

wholesale prices. Such discount card shall be retained by the

licensee. The board may contract through the Commonwealth

bidding process for delivery to wholesale licensees at the

expense of the licensee receiving the delivery.

* * *

(j) If the board becomes a licensed lottery sales agent, as

set forth in section 305 of the act of August 26, 1971 (P.L.351,

20150HB1150PN1609 - 8 -

No.91), known as the "State Lottery Law," then the following

shall apply, notwithstanding the provisions of the "State

Lottery Law":

(i) The Secretary of Revenue shall permit the board to

operate and maintain Pennsylvania lottery instant ticket vending

machines, player-activated terminals and technologies or systems

subsequently approved by the Department of Revenue for the self-

service sale of lottery tickets and games in Pennsylvania Liquor

Stores. The board and the Secretary of Revenue shall mutually

agree upon the number and location of the stores authorized to

conduct self-service sales of lottery tickets and games.

(ii) The board shall not be required to post any type of

bond prior to conducting self-service sales of lottery tickets

and games.

(iii) Any commissions, compensation or any type of incentive

award based upon the sale of lottery tickets and games shall be

deposited by the board into the State Stores Fund.

Section 6. Section 401(a) of the act, amended December 22,

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

Section 401. Authority to Issue Liquor Licenses to Hotels,

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

act and regulations promulgated under this act, the board shall

have authority to issue a retail liquor license for any premises

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

the license entitling the hotel, restaurant or club to purchase

liquor from a Pennsylvania Liquor Store and to keep on the

premises such liquor and, subject to the provisions of this act

and the regulations made thereunder, to sell the same and also

malt or brewed beverages to guests, patrons or members for

consumption on the hotel, restaurant or club premises. Such

20150HB1150PN1609 - 9 -

licensees, other than clubs, shall be permitted to sell malt or

brewed beverages for consumption off the premises where sold in

quantities of not more than [one hundred ninety-two fluid ounces

in a single sale to one person as provided for in section 407.]

three hundred eighty-four ounces in not more than twenty-four

original containers in a single sale to one person as provided

for in section 407, provided the licensee may not sell a package

as prepared for sale or distribution by the manufacturer

containing more than twelve containers. Such licenses shall be

known as hotel liquor licenses, restaurant liquor licenses and

club liquor licenses, respectively. No person who holds any

public office that involves the duty to enforce any of the penal

laws of the United States, this Commonwealth or of any political

subdivision of this Commonwealth may have any interest in a

hotel or restaurant liquor license. This prohibition applies to

anyone with arrest authority, including, but not limited to,

United States attorneys, State attorneys general, district

attorneys, sheriffs and police officers. This prohibition shall

also apply to magisterial district judges, judges or any other

individuals who can impose a criminal sentence. This prohibition

does not apply to members of the General Assembly, township

supervisors, city councilpersons, mayors without arrest

authority and any other public official who does not have the

ability to arrest or the ability to impose a criminal sentence.

This section does not apply if the proposed premises are located

outside the jurisdiction of the individual in question.

* * *

Section 7. Section 407(a) of the act, amended June 28, 2011

(P.L.55, No.11), is amended to read:

Section 407. Sale of Malt or Brewed Beverages by Liquor

20150HB1150PN1609 - 10 -

Licensees.--(a) Every liquor license issued to a hotel,

restaurant, club, or a railroad, pullman or steamship company

under this subdivision (A) for the sale of liquor shall

authorize the licensee to sell malt or brewed beverages at the

same places but subject to the same restrictions and penalties

as apply to sales of liquor, except that licensees other than

clubs may sell malt or brewed beverages for consumption off the

premises where sold in quantities of not more than [one hundred

ninety-two fluid ounces in a single sale to one person.] three

hundred eighty-four ounces in not more than twenty-four original

containers in a single sale to one person, provided the licensee

may not sell a package as prepared for sale or distribution by

the manufacturer containing more than twelve containers. The

sales may be made in either open or closed containers, Provided,

however, That a municipality may adopt an ordinance restricting

open containers in public places. No licensee under this

subdivision (A) shall at the same time be the holder of any

other class of license, except a retail dispenser's license

authorizing the sale of malt or brewed beverages only.

* * *

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

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

by adding a subsection to read:

Section 431. Malt and Brewed Beverages Manufacturers',

Distributors' and Importing Distributors' Licenses.--* * *

(b) The board shall issue to any reputable person who

applies therefor, and pays the license fee hereinafter

prescribed, a distributor's or importing distributor's license

for the place which such person desires to maintain for the sale

of malt or brewed beverages, not for consumption on the premises

20150HB1150PN1609 - 11 -

where sold, and except as provided for under subsection (g), in

quantities of not less than a case or original containers

containing one hundred twenty-eight ounces or more which may be

sold separately as prepared for the market by the manufacturer

at the place of manufacture. The board shall have the discretion

to refuse a license to any person or to any corporation,

partnership or association if such person, or any officer or

director of such corporation, or any member or partner of such

partnership or association shall have been convicted or found

guilty of a felony within a period of five years immediately

preceding the date of application for the said license: And

provided further, That, in the case of any new license or the

transfer of any license to a new location, the board may, in its

discretion, grant or refuse such new license or transfer if such

place proposed to be licensed is within three hundred feet of

any church, hospital, charitable institution, school or public

playground, or if such new license or transfer is applied for a

place which is within two hundred feet of any other premises

which is licensed by the board: And provided further, That the

board shall refuse any application for a new license or the

transfer of any license to a new location if, in the board's

opinion, such new license or transfer would be detrimental to

the welfare, health, peace and morals of the inhabitants of the

neighborhood within a radius of five hundred feet of the place

proposed to be licensed. The board shall refuse any application

for a new license or the transfer of any license to a location

where the sale of liquid fuels or oil is conducted. The board

may enter into an agreement with the applicant concerning

additional restrictions on the license in question. If the board

and the applicant enter into such an agreement, such agreement

20150HB1150PN1609 - 12 -

shall be binding on the applicant. Failure by the applicant to

adhere to the agreement will be sufficient cause to form the

basis for a citation under section 471 and for the nonrenewal of

the license under section 470. If the board enters into an

agreement with an applicant concerning additional restrictions,

those restrictions shall be binding on subsequent holders of the

license until the license is transferred to a new location or

until the board enters into a subsequent agreement removing

those restrictions. If the application in question involves a

location previously licensed by the board, then any restrictions

imposed by the board on the previous license at that location

shall be binding on the applicant unless the board enters into a

new agreement rescinding those restrictions. The board shall

require notice to be posted on the property or premises upon

which the licensee or proposed licensee will engage in sales of

malt or brewed beverages. This notice shall be similar to the

notice required of hotel, restaurant and club liquor licensees.

Except as hereinafter provided, such license shall authorize

the holder thereof to sell or deliver malt or brewed beverages

in quantities above specified anywhere within the Commonwealth

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

purchased only from persons licensed under this act as

manufacturers or importing distributors, and in the case of

importing distributors, have been purchased from manufacturers

or persons outside this Commonwealth engaged in the legal sale

of malt or brewed beverages or from manufacturers or importing

distributors licensed under this article. In the case of an

importing distributor, the holder of such a license shall be

authorized to store and repackage malt or brewed beverages owned

by a manufacturer at a segregated portion of a warehouse or

20150HB1150PN1609 - 13 -

other storage facility authorized by section 441(d) and operated

by the importing distributor within its appointed territory and

deliver such beverages to another importing distributor who has

been granted distribution rights by the manufacturer as provided

herein. The importing distributor shall be permitted to receive

a fee from the manufacturer for any related storage, repackaging

or delivery services. In the case of a bailee for hire hired by

a manufacturer, the holder of such a permit shall be authorized:

to receive, store and repackage malt or brewed beverages

produced by that manufacturer for sale by that manufacturer to

importing distributors to whom that manufacturer has given

distribution rights pursuant to this subsection or to purchasers

outside this Commonwealth for delivery outside this

Commonwealth; or to ship to that manufacturer's storage

facilities outside this Commonwealth. The bailee for hire shall

be permitted to receive a fee from the manufacturer for any

related storage, repackaging or delivery services. The bailee

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

complete and accurate records of all transactions, inventory,

receipts and shipments and make all records and the licensed

areas available for inspection by the board and for the

Pennsylvania State Police, Bureau of Liquor Control Enforcement,

during normal business hours.

Each out of State manufacturer of malt or brewed beverages

whose products are sold and delivered in this Commonwealth shall

give distributing rights for such products in designated

geographical areas to specific importing distributors, and such

importing distributor shall not sell or deliver malt or brewed

beverages manufactured by the out of State manufacturer to any

person issued a license under the provisions of this act whose

20150HB1150PN1609 - 14 -

licensed premises are not located within the geographical area

for which he has been given distributing rights by such

manufacturer. Should a licensee accept the delivery of such malt

or brewed beverages in violation of this section, said licensee

shall be subject to a suspension of his license for at least

thirty days: Provided, That the importing distributor holding

such distributing rights for such product shall not sell or

deliver the same to another importing distributor without first

having entered into a written agreement with the said secondary

importing distributor setting forth the terms and conditions

under which such products are to be resold within the territory

granted to the primary importing distributor by the

manufacturer.

When a Pennsylvania manufacturer of malt or brewed beverages

licensed under this article names or constitutes a distributor

or importing distributor as the primary or original supplier of

his product, he shall also designate the specific geographical

area for which the said distributor or importing distributor is

given distributing rights, and such distributor or importing

distributor shall not sell or deliver the products of such

manufacturer to any person issued a license under the provisions

of this act whose licensed premises are not located within the

geographical area for which distributing rights have been given

to the distributor and importing distributor by the said

manufacturer: Provided, That the importing distributor holding

such distributing rights for such product shall not sell or

deliver the same to another importing distributor without first

having entered into a written agreement with the said secondary

importing distributor setting forth the terms and conditions

under which such products are to be resold within the territory

20150HB1150PN1609 - 15 -

granted to the primary importing distributor by the

manufacturer. Nothing herein contained shall be construed to

prevent any manufacturer from authorizing the importing

distributor holding the distributing rights for a designated

geographical area from selling the products of such manufacturer

to another importing distributor also holding distributing

rights from the same manufacturer for another geographical area,

providing such authority be contained in writing and a copy

thereof be given to each of the importing distributors so

affected.

* * *

(g) (1) In addition to being able to sell in case

quantities as provided under subsection (b), a distributor or

importing distributor may break the bulk of a case and sell

units of any case in quantities of not less than forty-two

ounces, provided the distributor or importing distributor sells

a package as prepared for sale by the manufacturer.

(2) Before a distributor or importing distributor breaks the

bulk of a case for the purpose of selling units, the distributor

or importing distributor shall inspect the case for damage and

appropriate production date. When the distributor or importing

distributor breaks the bulk of a case for the purpose of selling

units of the case, the distributor or importing distributor

bears the risk of loss and is responsible for the destruction of

any malt and brewed beverages that violate the manufacturer's

specifications relating to sales by a certain date or within a

number of days of the production date.

(3) The term "unit" as used in this subsection means an

undamaged bottle or can from a case.

Section 9. Section 441(a) and (b) of the act, amended June

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18, 1998 (P.L.664, No.86) and December 9, 2002 (P.L.1653,

No.212), are amended to read:

Section 441. Distributors' and Importing Distributors'

Restrictions on Sales, Storage, Etc.--(a) No distributor or

importing distributor shall purchase, receive or resell any malt

or brewed beverages except:

(1) in the original containers as prepared for the market by

the manufacturer at the place of manufacture;

(2) in the case of identical containers repackaged in the

manner described by subsection (f); or

(3) as provided in section 431(b) and (g).

(b) [No] Except as provided for in section 431(g), no

distributor or importing distributor shall sell any malt or

brewed beverages in quantities of less than a case or original

containers containing one hundred twenty-eight ounces or more

which may be sold separately: Provided, That no malt or brewed

beverages sold or delivered shall be consumed upon the premises

of the distributor or importing distributor, or in any place

provided for such purpose by such distributor or importing

distributor. Notwithstanding any other provision of this section

or act, malt or brewed beverages which are part of a tasting

conducted pursuant to the board's regulations may be consumed on

licensed premises.

* * *

Section 10. Section 442(a)(1) of the act, amended June 28,

2011 (P.L.55, No.11), is amended to read:

Section 442. Retail Dispensers' Restrictions on Purchases

and Sales.--(a) (1) No retail dispenser shall purchase or

receive any malt or brewed beverages except in original

containers as prepared for the market by the manufacturer at the

20150HB1150PN1609 - 17 -

place of manufacture. The retail dispenser may thereafter break

the bulk upon the licensed premises and sell or dispense the

same for consumption on or off the premises so licensed. No

retail dispenser may sell malt or brewed beverages for

consumption off the premises in quantities in excess of [one

hundred ninety-two fluid ounces.] three hundred eighty-four

ounces in not more than twenty-four original containers in a

single sale to one person as provided in section 407, provided

the licensee may not sell a package as prepared for sale or

distribution by the manufacturer containing more than twelve

containers. Sales may be made in open or closed containers,

Provided, however, That a municipality may adopt an ordinance

restricting open containers in public places. No club licensee

may sell any malt or brewed beverages for consumption off the

premises where sold or to persons not members of the club.

* * *

Section 10.1. Section 470(a) of the act, amended December

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

Section 470. Renewal of Licenses; Temporary Provisions for

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

or validation of licenses under the provisions of this article

shall be filed with tax clearance from the Department of Revenue

and the Department of Labor and Industry and requisite license

and filing fees, including an application surcharge of seven

hundred dollars ($700.00), at least sixty days before the

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

its discretion, may accept nunc pro tunc a renewal application

filed less than sixty days before the expiration date of the

license with the required fees, upon reasonable cause shown and

the payment of an additional filing fee of one hundred dollars

20150HB1150PN1609 - 18 -

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

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

expiration date has created a license quota vacancy after said

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

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

received a renewal application nunc pro tunc within the time

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

hearing, accept a renewal application filed within two years

after the expiration date of the license with the required fees

upon the payment of an additional filing fee of two hundred

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

application is filed less than sixty days before the expiration

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

issue upon the filing of the renewal application until the

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

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

issuance of the renewal license until final determination of the

matter by the courts. The board may enter into an agreement with

the applicant concerning additional restrictions on the license

in question. If the board and the applicant enter into such an

agreement, such agreement shall be binding on the applicant.

Failure by the applicant to adhere to the agreement will be

sufficient cause to form the basis for a citation under section

471 and for the nonrenewal of the license under this section. A

renewal application will not be considered filed unless

accompanied by the requisite filing [and], license and

administrative fees and any additional filing fee required by

this section. Unless the board shall have given ten days'

previous notice to the applicant of objections to the renewal of

his license, based upon violation by the licensee or his

20150HB1150PN1609 - 19 -

servants, agents or employes of any of the laws of the

Commonwealth or regulations of the board relating to the

manufacture, transportation, use, storage, importation,

possession or sale of liquors, alcohol or malt or brewed

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

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

or unless the premises do not meet the requirements of this act

or the regulations of the board, the license of a licensee shall

be renewed. Notwithstanding any other provision of this act, a

noise violation shall not be the sole basis for objection by the

board to the renewal of a license unless the licensee has

received six prior adjudicated noise citations within a twenty-

four-month period.

* * *

Section 10.2. The act is amended by adding a section to

read:

Section 470.3. License Auction.--(a) A restaurant liquor

license or eating place retail dispenser license which is

subject to the quota restrictions set forth in section 461(a)

and which has not been renewed as required by section 470, has

been revoked under section 471 or as required by section 474.1,

or which the board refused to renew under section 470, shall be

offered for auction by the board. The auction shall occur in

July of the calendar year after the license becomes available

for auction, on a date to be determined by the board. For

purposes of this section, a license becomes available for

auction the day after the deadline has passed for appealing a

decision revoking or nonrenewing the license or the day after

the two-year window to file a renewal application nunc pro tunc

set forth in section 470, has passed.

20150HB1150PN1609 - 20 -

(b) By March 1 of each year, the board shall post on its

Internet website a listing of all the licenses that shall be

available for auction in July of that year. The list shall also

be available upon request.

interested in bidding at the auction beginning March 1. The

application shall be in writing and shall contain such

information as the board shall from time to time prescribe. The

board shall accept applications until June 15th and may, in its

discretion, accept applications after that date.

(d) A person who would be precluded from acquiring a license

by sections 411 or 443, or who, in the board's opinion, is not

of good repute may not apply for a license under this section.

(e) The auction shall be conducted in the manner set forth

by the board, in July at the date and time appointed by the

board. After the auction, the board shall provisionally award to

the person making the highest bid for the license the right to

file an application for the license. However, the board may not

accept a bid lower than the following amounts:

(1) In counties of the first through fourth class, one

hundred thousand dollars ($100,000).

(2) In counties of the fifth through eighth class, fifty

thousand dollars ($50,000).

(f) The winning bidder shall pay to the board the bid amount

within two weeks. Payment shall be by cashier's check, certified

check or any other method acceptable to the board. If the

winning bidder does not pay the bid amount within two weeks, the

second highest bidder shall be awarded the right to file an

application for the license, so long as the bid amount is in

accordance with subsection (e).

20150HB1150PN1609 - 21 -

(g) If there are no bids for a license or if there are no

bids that meet the bid amounts set forth in subsection (f), the

license shall be revoked and may not be reissued.

(h) Within six months of a bidder being informed that he is

the winning bidder and that the winning bid has been processed,

the winning bidder shall file an application to transfer the

license to itself or to an assignee. The application shall be

processed in the same manner as any other transfer application

and shall be subject to the same restrictions as any other

transfer application, including any conditional licensing

agreements, but not including any unpaid fines or unserved

suspensions accrued by the previous license holder. The

application may be filed on a prior approval basis.

Section 10.3. Section 471(b) of the act, amended July 6,

2005 (P.L.135, No.39), is amended to read:

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

* * *

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

manner as provided herein for hearings on applications for

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

has occurred or for other sufficient cause, the administrative

law judge shall immediately suspend or revoke the license, or

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

dollars ($100) nor more than [one thousand dollars ($1,000)] two

thousand dollars ($2,000), or both, notifying the licensee by

registered letter addressed to his licensed premises. If the

licensee has been cited and found to have violated section

493(1) insofar as it relates to sales to minors or sales to a

visibly intoxicated person, section 493(10) insofar as it

relates to lewd, immoral or improper entertainment or section

20150HB1150PN1609 - 22 -

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

pursuant to section 611, or if the owner or operator of the

licensed premises or any authorized agent of the owner or

operator has been convicted of any violation of the act of April

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

Drug, Device and Cosmetic Act," or of 18 Pa.C.S. § 5902

(relating to prostitution and related offenses) or 6301

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

licensed premises, the administrative law judge shall

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

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

dollars ($2,000) nor more than [five thousand dollars ($5,000)]

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

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

relates to sales to minors or sales to a visibly intoxicated

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

compliance with the requirements set forth in section 471.1 and

the licensee had not sold to minors or visibly intoxicated

persons in the previous four years, then the administrative law

judge shall immediately suspend or revoke the license, or impose

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

dollars ($100) nor more than [one thousand dollars ($1,000)] two

thousand dollars ($2,000), or both. The administrative law judge

shall notify the licensee by registered mail, addressed to the

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

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

adjudication, the administrative law judge shall suspend or

revoke the license, notifying the licensee by registered mail

addressed to the licensed premises. Suspensions and revocations

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

20150HB1150PN1609 - 23 -

date of the adjudication during which time the licensee may take

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

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

licensee whose license is revoked shall be ineligible to have a

license under this act until the expiration of three years from

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

revoked, no license shall be granted for the premises or

transferred to the premises in which the said license was

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

the revocation of the license conducted in the said premises,

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

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

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

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

or whose license was suspended or revoked shall feel aggrieved

by the adjudication of the administrative law judge, there shall

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

solely on the record before the administrative law judge. The

board shall only reverse the decision of the administrative law

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

abused its discretion or if its decision is not based on

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

was fined or whose license was suspended or revoked shall feel

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

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

herein provided for appeals from refusals to grant licenses.

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

sufficient cause shown, the reviewing authority shall determine

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

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

20150HB1150PN1609 - 24 -

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

insofar as it relates to lewd, immoral or improper entertainment

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

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

operator of the licensed premises or any authorized agent of the

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

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

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

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

appeal shall not act as a supersedeas unless the reviewing

authority determines otherwise upon sufficient cause shown. In

any hearing on an application for a supersedeas under this

section, the reviewing authority may consider, in addition to

other relevant evidence, documentary evidence, including records

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

suspensions or revocations against the licensee; and the

reviewing authority may also consider, in addition to other

relevant evidence, evidence of any recurrence of the unlawful

activity occurring between the date of the citation which is the

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

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

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

made based on the application, answer and documentary evidence

under this subsection. If the application for a supersedeas is

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

reviewing authority shall grant the supersedeas only if it finds

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

provided by this section shall be imposed for any violations

provided for in this act unless the bureau notifies the licensee

of its nature within thirty days of the completion of the

20150HB1150PN1609 - 25 -

investigation.

* * *

Section 11. Section 488 of the act, added February 21, 2002

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

Section 488. Shipment of Wine [into Commonwealth.--(a) The

shipment of wine from out-of-State to residents of this

Commonwealth is prohibited, except as otherwise provided for in

this section.] to Pennsylvania Liquor Stores.--

(b) Notwithstanding any other provision of this act or law

to the contrary, a person licensed by another state as a

producer, supplier, importer, wholesaler, distributor or

retailer of wine and who obtains a [direct wine shipper] direct-

to-store wine shipper license as provided for in this section

may ship up to nine liters per month of any wine [not included

on the list provided for in subsection (c)] on the [Internet]

order of any resident of this Commonwealth who is at least

twenty-one (21) years of age for such resident's personal use

and not for resale.

[(c) Each month, the board shall publish on the Internet a

list of all classes, varieties and brands of wine available for

sale in the Pennsylvania Liquor Stores. A person holding a

direct shipper license may ship only those classes, varieties

and brands of wine not included on the list at the time an

Internet order is placed.]

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

(1) Not ship more than nine liters per month on the Internet

order of any person in this Commonwealth.

(2) Report to the board each year the total amount of wine

shipped [into this Commonwealth] to Pennsylvania Liquor Stores

in the preceding calendar year.

20150HB1150PN1609 - 26 -

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

Secretary of Revenue, or their designated representatives, to

perform an audit of the [out-of-State] direct-to-store wine

shipper's records upon request.

(4) Be deemed to have submitted to the jurisdiction of the

board, any other State agency and the courts of this

Commonwealth for purposes of enforcement of this section and any

related laws, rules or regulations.

(e) A [direct] direct-to-store wine shipper may ship wine on

the [Internet] order of a resident into this Commonwealth

provided that the wine is shipped to a Pennsylvania Liquor Store

selected by the resident. The wine will be subject to taxes in

the same manner as wine sold directly by the board. The wine

will not be released by the State store until all moneys due,

including all taxes and fees, have been paid by the resident.

(f) A person shall sign an affidavit provided by the

Pennsylvania Liquor Store where the wine was delivered to

stating that the wine will only be used for the person's

personal use. Any person who resells wine obtained under this

section commits a misdemeanor of the second degree.

(g) The board may promulgate such rules and regulations as

are necessary to implement and enforce the provisions of this

section. The board may charge the resident a fee to cover the

cost associated with processing the [Internet] order.

(h) The board shall submit [monthly] annual reports to the

Appropriations Committee and the Law and Justice Committee of

the Senate and to the Appropriations Committee and the Liquor

Control Committee of the House of Representatives summarizing

the number of [direct] direct-to-store wine shipper licenses

issued by the board, the quantity of wine sold and shipped by

20150HB1150PN1609 - 27 -

direct-to-store wine shipper licensees pursuant to this section

and the total dollar value of sales under this section.

(i) The term "wine" as used in this section shall mean

liquor which is fermented from [grapes and other fruits, having

alcoholic content of twenty-four per centum or less. The term

"wine" shall not include malt or brewed beverages nor shall wine

include any products containing alcohol derived from malt,

grain, cereal, molasses or cactus] an agricultural commodity as

that term is defined in section 505.2(c).

Section 12. The act is amended by adding a section to read:

Section 489. Direct Shipment of Wine.--(a) Notwithstanding

any other provision of law, a person licensed by the board or

another state as a producer of wine, and who obtains a license

as provided for in this section, may ship up to eighteen liters

per month of any wine on the order of any resident of this

Commonwealth who is at least twenty-one years of age for such

resident's personal use and not for resale.

(b) Prior to issuing such a license, the board shall require

the person seeking the license to:

(1) File an application with the board.

(2) Pay a registration fee of one hundred dollars ($100).

(3) Provide to the board a copy of the applicant's current

alcoholic beverage license issued by the board or another state,

if applicable.

(4) Provide documentation to the board which evidences that

the applicant has obtained a sales tax license from the

Department of Revenue.

(5) Obtain a tax bond, in the amount of one thousand dollars

($1,000), such that if the licensee does not pay the taxes

imposed under this section when due, the surety of the bond

20150HB1150PN1609 - 28 -

shall pay all taxes and any related penalties, and any interest

that may be due or become due.

(6) Provide the board with any other information that the

board deems necessary and appropriate.

(1) Require proof of age of the recipient, in a manner or

format approved by the board, before any wine is shipped to a

resident of this Commonwealth.

(2) Ensure that all boxes or exterior containers of wine

shipped directly to a resident of this Commonwealth are

conspicuously labeled with the words "CONTAINS ALCOHOL:

SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR

DELIVERY."

(3) Ensure that shipments shall be delivered by an entity

holding a valid transporter-for-hire license issued by the board

and that such transporter-for-hire shall not deliver any wine

unless it does all of the following:

(i) Obtains the signature of the recipient of the wine upon

delivery.

(ii) Verifies by inspecting a valid form of photo

identification, as provided for in section 495(a), that the

recipient is at least twenty-one (21) years of age.

(iii) Determines that the recipient is not visibly

intoxicated at the time of delivery.

(4) On a quarterly basis, remit to the Department of Revenue

all taxes due on sales to residents of this Commonwealth.

(5) Permit the board, the enforcement bureau or the

Secretary of Revenue, or their designated representatives, to

perform an audit of the licensee's records upon request.

(6) Be deemed to have submitted to the jurisdiction of the

20150HB1150PN1609 - 29 -

board, any other State agency and the courts of this

Commonwealth for purposes of enforcement of this section and any

related laws, rules or regulations, including the collection and

remission of taxes as required under this section.

(7) Annually renew its license by paying a renewal fee

established by the board and report to the board, at the time of

renewal, the total amount of wine shipped to residents of this

Commonwealth in the preceding calendar year.

(d) Wine delivered under the authority of this section is

subject to the sales and use tax imposed by section 202 of the

act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform

Code of 1971," the sales and use tax imposed by Article XXXI-B

of the act of July 28, 1953 (P.L.723, No.230), known as the

"Second Class County Code," the sales and use tax imposed by the

act of February 12, 2004 (P.L.73, No.11), known as the

"Intergovernmental Cooperation Authority Act for Cities of the

Second Class," and the emergency State tax imposed on wines sold

by the board under the act of June 9, 1936 (1st Sp. Sess.,

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

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

Control Board; providing for the collection and payment of such

tax; and imposing duties upon the Department of Revenue and the

Pennsylvania Liquor Control Board."

(e) A transporter for hire shall:

(1) keep records as required under section 512 pertaining to

the direct shipment of wine; and

(2) permit the board and the enforcement bureau, or their

designated representatives, to inspect such records in

accordance with section 513.

(f) Any person who resells wine obtained under this section

20150HB1150PN1609 - 30 -

commits a misdemeanor of the second degree.

(g) Shipments of wine to persons in this Commonwealth from

persons who do not possess a license from the board authorizing

such shipments are prohibited. Any person who knowingly makes,

participates in, transports, imports or receives such shipment

commits a misdemeanor.

(h) The board shall submit annual reports to the

Appropriations Committee of the Senate and the Law and Justice

Committee of the Senate and to the Appropriations Committee of

the House of Representatives and the Liquor Control Committee of

the House of Representatives summarizing the number of licenses

issued by the board under this section, the quantity of wine

sold and shipped by licensees pursuant to this section and the

total dollar value of sales under this section.

(i) The board may promulgate such rules and regulations as

are necessary to implement and enforce the provisions of this

section.

(j) The term "wine" as used in this section shall mean

liquor which is fermented from an agricultural commodity as that

term is defined in section 505.2(c).

Section 13. Section 493(24) of the act, amended November 29,

2006 (P.L.1421, No.155), is amended and the section is amended

by adding a paragraph to read:

Section 493. Unlawful Acts Relative to Liquor, Malt and

Brewed Beverages and Licensees.--The term "licensee," when used

in this section, shall mean those persons licensed under the

provisions of Article IV, unless the context clearly indicates

otherwise.

It shall be unlawful--

* * *

20150HB1150PN1609 - 31 -

(24) (i) Things of Value Offered as Inducement. Except as

provided in subclause (ii), for any licensee under the

provisions of this article, or the board or any manufacturer, or

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

board, to offer to give anything of value or to solicit or

receive anything of value as a premium for the return of caps,

stoppers, corks, stamps or labels taken from any bottle, case,

barrel or package containing liquor or malt or brewed beverage,

or to offer or give or solicit or receive anything of value as a

premium or present to induce directly the purchase of liquor or

malt or brewed beverage, or for any licensee, manufacturer or

other person to offer or give to trade or consumer buyers any

prize, premium, gift or other inducement to purchase liquor or

malt or brewed beverages, except advertising novelties of

nominal value which the board shall define. This section shall

not prevent any manufacturer or any agent of a manufacturer from

offering and honoring coupons which offer monetary rebates on

purchases of wines and spirits through State Liquor Stores or

purchases of malt or brewed beverages through distributors and

importing distributors in accordance with conditions or

regulations established by the board. The board may redeem

coupons offered by a manufacturer or an agent of a manufacturer

at the time of purchase. Coupons offered by a manufacturer or an

agent of a manufacturer shall not be redeemed without proof of

purchase. This section shall not apply to the return of any

monies specifically deposited for the return of the original

container to the owners thereof.

(ii) Notwithstanding subclause (i) or any other provision of

law, a holder of a restaurant license that is also approved to

hold a slot machine license or a conditional slot machine

20150HB1150PN1609 - 32 -

license under 4 Pa.C.S. Part II (relating to gaming) may give

liquor and malt or brewed beverages free of charge to any person

actively engaged in playing a slot machine.

(iii) Notwithstanding subclause (i) or any other provision

of law, the board may establish and implement a customer

relations management program for the purpose of offering

incentives, such as coupons or discounts on certain products

which may be conditioned upon the purchase of liquor, to

unlicensed customers of the board.

* * *

(35) Sale of wine received by direct-to-store or direct

shipment. For any licensee to sell or offer to sell any wine

purchased or acquired, directly or indirectly, from a licensee

pursuant to the authority of section 488, or from a licensee

pursuant to the authority of section 489.

Section 14. Section 499(a.1) of the act, amended October 5,

1994 (P.L.522, No.77), is amended to read:

Section 499. Premises to be Vacated by Patrons.--* * *

(a.1) Subsection (a) shall not apply to sales of malt and

brewed beverages for consumption off the premises when the

following conditions are met:

(1) no licensee may sell malt or brewed beverages in excess

of [one hundred ninety-two fluid ounces] three hundred eighty-

four ounces in not more than twenty-four original containers in

a single sale to one person as provided in section 407, provided

the licensee may not sell a package as prepared for sale or

distribution by the manufacturer containing more than twelve

containers, in any one sale for consumption off the premises;

(2) sales and service of malt and brewed beverages for

consumption off the premises are made prior to the designated

20150HB1150PN1609 - 33 -

time the licensee is required by this act to cease serving

liquor, malt or brewed beverages;

(3) persons who have purchased malt and brewed beverages for

consumption off the premises shall remove the malt and brewed

beverages from the premises by the designated time as contained

in this act that patrons are required to vacate the premises;

(4) no club licensee may sell any malt or brewed beverage

for consumption off the premises where sold or to any persons

who are not members of the club.

* * *

Section 15. This act shall take effect in 60 days.

20150HB1150PN1609 - 34 -