Regular Session 2015-2016 Senate Bill 0651 P.N. 0641

PRINTER'S NO. 641

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

651

Session of

2015

INTRODUCED BY GREENLEAF, MARCH 20, 2015

REFERRED TO LAW AND JUSTICE, MARCH 20, 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,"

further providing for definitions, for general powers of

board, for board to establish State liquor stores, for when

sales may be made at Pennsylvania liquor stores, for sales by

Pennsylvania liquor stores, for authority to issue liquor

licenses to hotels, restaurants and clubs, for license

districts and license period and hearings, for sale of malt

or brewed beverages by liquor licensees; providing for wine

expanded permit for restaurant licensees; further providing

for malt and brewed beverages manufacturers' and

distributors' and importing distributors' licenses, for

distributors' and importing distributors' restrictions on

sales, storage, etc., for retail dispensers' restrictions on

purchases and sales, for revocation and suspension of

licenses and fines and for shipment of wine into

Commonwealth; providing for direct shipment of wine; further

providing for unlawful acts relative to liquor, malt and

brewed beverages and licensees, for premises to be vacated by

patrons and for moneys paid into the State Stores Fund for

use of the Commonwealth.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

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

distributor," "restaurant" 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 May 31, 1996 (P.L.312, No.49) and December

9, 2002 (P.L.1653, No.212), are amended and the section is

amended by adding definitions to read:

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

unless the context clearly indicates otherwise, shall have the

meanings ascribed to them in this section:

* * *

"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 which may be sold separately] a six-

pack consisting of not less than forty-two ounces.

* * *

"Food market" shall mean a reputable place of business

operated by a responsible person or persons of good reputation

that meets all of the following:

(1) Principally sells food, specifically dairy, fresh

produce, fruit, eggs and food products for consumption off the

premises and supplies for the table.

20150SB0651PN0641 - 2 -

(2) Has an area under one roof of five thousand square feet

to fifty-five thousand square feet of which more than seventy-

five per centum of its gross floor area is used in the

preparation, purchase, service, consumption or storage of food,

food products for consumption off the premises and supplies for

the table.

(3) Does not charge a membership fee.

* * *

"Grocery store" shall mean a reputable place of business

operated by a responsible person or persons of good reputation

that meets all of the following:

(1) Principally sells food, specifically dairy, fresh

produce, fruit, eggs and food products for consumption off the

premises and supplies for the table.

(2) Has an area under one roof of at least fifty-five

thousand and one square feet of which more than seventy-five per

centum of its gross floor area is used in the preparation,

purchase, service, consumption or storage of food, food products

for consumption off the premises and supplies for the table.

(3) Does not charge a membership fee.

* * *

"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

20150SB0651PN0641 - 3 -

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

sold separately] a six-pack consisting of not less than forty-

two ounces.

* * *

"Restaurant" shall mean a reputable place operated by

responsible persons of good reputation and habitually and

principally used for the purpose of providing food for the

public, the place to have an area within a building of not less

than four hundred square feet, equipped with tables and chairs,

including bar seats, accommodating at least thirty persons at

one time. The board shall, by regulation, set forth what

constitutes tables and chairs sufficient to accommodate thirty

persons at one time. A restaurant liquor licensee may sell wine

in a quantity not to exceed three bottles in a single

transaction when possessing a wine expanded permit issued

pursuant to section 415 to sell wine for consumption off the

premises.

* * *

"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,

to be carried from the premises by the purchaser thereof.] up to

three six-packs or one twelve-pack and one six-pack in a single

transaction consisting of not more than two hundred eighty-eight

ounces for consumption off the premises so long as the original

containers are in a package, prepared for sale or distribution

by the manufacturer, of not more than twelve original

containers.

20150SB0651PN0641 - 4 -

* * *

"Six-pack" shall mean a configuration:

(1) consisting of up to six bottles or cans which total not

more than ninety-six ounces; and

(2) which is to be sold in a single sale and carried from

the premises by the purchaser.

* * *

"Twelve-pack" shall mean a configuration:

(1) consisting of up to twelve bottles or cans which total

not more than one hundred ninety-two ounces; and

(2) which is to be sold in a single sale and carried from

the premises by the purchaser.

* * *

Section 2. Section 207 of the act, amended February 21, 2002

(P.L.103, No.10) and December 8, 2004 (P.L.1810, No.239), is

amended to read:

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

board shall have the power and its duty shall be:

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

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

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

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

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

subject to the approval of the State Treasurer, or his

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

lowest price and in the greatest variety reasonably obtainable.

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

20150SB0651PN0641 - 5 -

delivery of liquor, alcohol and malt or brewed beverages in

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

wholesale and retail prices at which liquors and alcohol shall

be sold at Pennsylvania Liquor Stores. Prices shall be

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

shall reflect any advantage obtained through volume purchases by

the board. The board may establish a preferential price

structure for wines produced within this Commonwealth for the

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

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

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

is uniform throughout this Commonwealth. The board shall require

each Pennsylvania manufacturer and each nonresident manufacturer

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

which are not manufactured in this Commonwealth, to make

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

20150SB0651PN0641 - 6 -

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.

(b.1) To establish the Safe Ride Home Grant Pilot Program

subject to the following provisions:

(1) The board shall establish and administer the Safe Ride

Home Grant Pilot Program, beginning in the 2015-2016 fiscal year

and continuing through the 2017-2018 fiscal year to fund local

initiatives aimed at providing alternative means of

transportation to persons suspected of having a prohibited blood

alcohol concentration as set forth in 75 Pa.C.S. § 3802

(relating to driving under influence of alcohol or controlled

substance) from any premises, licensed by the board to sell

alcoholic beverages, to their places of residence. The board may

work in collaboration with private organizations to implement

the Safe Ride Home Grant Pilot Program and may award grants to

any county, municipality, university or nonprofit corporation.

The board shall set the maximum amount of any grant under this

pilot program and no grant may exceed fifty (50%) percent of the

costs necessary to provide the services.

(2) The liability of a provider that operates such local

initiative to persons transported under the Safe Ride Home Grant

Pilot Program is limited to the amounts required for a motor

vehicle liability insurance policy under 75 Pa.C.S. Ch.17

20150SB0651PN0641 - 7 -

(relating to financial responsibility).

(3) The board shall develop and publicize an application

procedure for those eligible to participate in the pilot

program. In addition, the board shall monitor and evaluate the

Safe Ride Home Grant Pilot Program and, upon the conclusion of

the 2016-2017 fiscal year, present a report of the evaluation to

the Law and Justice Committee of the Senate and the Liquor

Control Committee of the House of Representatives and make

recommendations on the continuation, alteration or expansion of

the Safe Ride Home Grant Pilot Program. The final report shall

be made no later than December 1, 2017.

(4) The program shall be funded by a five ($5) dollar

surcharge, which surcharge shall be levied upon conviction of 75

Pa.C.S. § 3802.

Pennsylvania Liquor Stores shall be established and the

locations of the stores within such municipalities.

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

suspend and revoke all permits authorized to be issued under

this act.

(e) Through the Department of General Services as agent, to

lease and furnish and equip such buildings, rooms and other

accommodations as shall be required for the operation of this

act.

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

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

clerks and other employes as hall be required for the operation

of this act, subject to the provisions of The Administrative

Code of 1929 and the Civil Service Act.

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

20150SB0651PN0641 - 8 -

packages and original containers to be used for containing

liquor, alcohol or malt or brewed beverages.

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

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

are deemed necessary or advisable for the purpose of carrying

into effect the provisions of this act and the regulations made

thereunder.

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

inconsistent with this act as it may deem necessary for the

efficient administration of this act. The board shall cause such

regulations to be published and disseminated throughout the

Commonwealth in such manner as it shall deem necessary and

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

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

of this act.

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

referral system to assist consumers in locating special items at

Pennsylvania Liquor Stores and for the use of electronic

transfer of funds and credit cards for the purchase of liquor

and alcohol at Pennsylvania Liquor Stores.

(k) To issue grants to various entities for alcohol

education and prevention efforts.

(l) Notwithstanding any other provision of law to the

contrary, to enter into agreements with governmental units of

this Commonwealth and other states, for the purchase or sale of

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

authority includes, but is not limited to, the purchase or sale

of alcohol.

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

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

20150SB0651PN0641 - 9 -

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

authorized by such designation, except that no bond, insurance

or indemnification may be required from the board.

(n) To establish and implement a customer relations

management program for the purpose of offering incentives, such

as coupons or discounts on certain products, to unlicensed

customers of the board.

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

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

The board shall establish, operate and maintain at such places

throughout the Commonwealth as it shall deem essential and

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

for the sale of liquor and alcohol in accordance with the

provisions of and the regulations made under this act; except

that no store not so already located shall be located within

three hundred feet of any elementary or secondary school, nor

within a dry municipality without there first having been a

referendum approving such location. When the board shall have

determined upon the location of a liquor store in any

municipality, it shall give notice of such location by public

advertisement in two newspapers of general circulation. In

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

a period of at least fifteen days following its determination by

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

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

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

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

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

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

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

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

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

of the county averring that the location is objectionable

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

residences, the court shall forthwith hold a hearing affording

an opportunity to the protestants and to the board to present

evidence. The court shall render its decision immediately upon

the conclusion of the testimony and from the decision there

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

proposed location is undesirable for the reasons set forth in

the protest, the board shall abandon it and find another

location. Notwithstanding any other provision of law to the

contrary, the board may operate and maintain stores within other

businesses, including, but not limited to, supermarkets or large

retail stores selling packaged foods for human consumption,

owned by private persons or entities consistent with the

requirements of this section and under such conditions and

regulations as the board may enforce. The board may also make

decisions to relocate and lease stores in more convenient and

consumer-heavy areas, after consumer trends and market trends

are analyzed by the board. The board may work with private

persons or entities, consistent with the requirements of this

section and under such conditions and regulations as the board

may enforce, to operate and maintain stores in areas where the

board concludes a store is needed to meet consumer demand. The

board may establish, operate and maintain such establishments

for storing and testing liquors as it shall deem expedient to

carry out its powers and duties under this act.

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

stores or establishments, but all such leases shall be made

20150SB0651PN0641 - 11 -

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 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

20150SB0651PN0641 - 12 -

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 postmeridian 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

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[.] and shall sell wine at wholesale to

restaurants licensed under this act and possessing a wine

expanded permit issued pursuant to section 415 to sell wine for

consumption off the premises. 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

20150SB0651PN0641 - 13 -

such liquors as conform to the Pharmacopoeia of the United

States, the National Formulary, or the American Homeopathic

Pharmacopoeia. The board may sell at special prices under the

regulations of the board, to United States Armed Forces

facilities which are located on United States Armed Forces

installations and are conducted pursuant to the authority and

regulations of the United States Armed Forces. All other sales

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

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

to unlicensed customers of the board as provided for under

sections 207(n) and 493(24)(iii) of this act. 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,

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-

20150SB0651PN0641 - 14 -

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 to purchase

liquor from a Pennsylvania Liquor Store and to keep on the

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

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

malt or brewed beverages to guests, patrons or members for

consumption on the hotel, restaurant or club premises. Such

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

brewed beverages for consumption off the premises where sold in

quantities of not more than [one hundred ninety-two] two hundred

eighty-eight fluid ounces in a single sale to one person as

provided for in section 407[.], up to three six-packs or one

twelve-pack and one six-pack so long as the original containers

are in a package, prepared for sale or distribution by the

manufacturer, of not more than twelve original containers. Such

20150SB0651PN0641 - 15 -

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 402 of the act is amended by adding a

subsection to read:

Section 402. License Districts; License Period; Hearings.

* * *

(d) This section shall not apply to wine expanded permit

holders under section 415.

Section 8. Section 407(a) of the act, amended June 28, 2011

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

Section 407. Sale of Malt or Brewed Beverages by Liquor

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

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

20150SB0651PN0641 - 16 -

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] two hundred eighty-eight fluid ounces in a single

sale to one person[.], up to three six-packs or up to one

twelve-pack and one six-pack so long as the original containers

are in a package, prepared for sale or distribution by the

manufacturer, of not more than twelve original 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 9. The act is amended by adding a section to read:

Section 415. Wine Expanded Permit for Restaurant

Licensees.--(a) (1) Notwithstanding section 492(13) and (14),

the board may issue a wine expanded permit to a person holding

and possessing a valid restaurant liquor license.

(2) Nothing in this section may affect the ability of an

existing licensee to operate within the scope of its current

license as authorized by this act, except that no sales of wine

for consumption off the premises may take place by a wine

expanded permit holder after eleven o'clock postmeridian of any

day until eight o'clock antemeridian of the next day, including

Sundays if the licensee has a permit authorized under sections

20150SB0651PN0641 - 17 -

406(a)(3) and 432(f).

(3) No wine expanded permit may be issued to a license

holder whose underlying license is subject to a pending

objection by the director of the Bureau of Licensing or the

board under section 470(a.1), until the matter is decided.

Notwithstanding any other provision of law, a holder of a wine

expanded permit may continue to operate under the permit if its

underlying license is objected to by the Director of the Bureau

of Licensing or the board under section 470(a.1), until the

matter is ultimately decided. Notwithstanding any other

provision of law, a holder of a wine expanded permit may

continue to operate under the permit if its underlying license

is objected by the Director of the Bureau of Licensing or the

board under section 470(a.1), until the matter is ultimately

decided.

(4) Wine sold pursuant to an authorized wine expanded permit

shall be placed under the roof of the premises in a specifically

designated area, approved by the board, on the inside perimeter.

(5) For purposes of selling wine, a holder of a wine

expanded permit is not subject to section 493(14).

(6) A wine expanded permit holder shall comply with the

responsible alcohol management provisions under section 471.1.

(7) A wine expanded permit holder may store wine in a

noncontiguous area that is not accessible to the public and is:

(i) locked at all times when not being accessed by

licensees' employes;

(ii) not accessible to employes under the age of eighteen ;

and

(iii) identified by dimensions and locations on forms

submitted to the board.

20150SB0651PN0641 - 18 -

(8) A wine expanded permit holder shall utilize a

transaction scan device to verify the age of an individual who

appears to be under thirty-five (35) years of age before making

a sale of liquor. A wine expanded permit holder may not sell or

share data from the use of a transaction scan device, provided

that the licensee may use the data to show the enforcement

bureau of the board that the licensee is in compliance with this

act. As used in this paragraph, the term "transaction scan

device" means a device capable of deciphering, in an

electronically readable format, the information encoded on the

magnetic strip or bar code of an identification card under

section 495(a).

(9) Sale of wine by a grocery store or food market, which

has a restaurant liquor license and holds a wine expanded

permit, shall be made in a specifically designated area,

approved by the board, on the inside perimeter through a

at all times by a sales clerk who is at least eighteen years of

age and has been trained under section 471.1 and which utilizes

a transaction scan device for the sale. The sale may not occur

at a point of sale where the customer scans the customer's own

purchases.

(b) The application and renewal fee for a wine expanded

permit shall be as follows:

(1) For a wine expanded permit issued to licensees, except

for licensees that are grocery stores or food markets, an

initial application fee of one thousand dollars ($1,000) and

annual renewal fees as follows:

(i) One thousand dollars ($1,000) for a licensee whose total

annual wine purchase from the board is less than one hundred

20150SB0651PN0641 - 19 -

thousand dollars ($100,000) in the prior calendar year.

(ii) Two thousand dollars ($2,000) for a licensee whose

total annual wine purchase from the board is at least one

hundred thousand dollars ($100,000) but less than two hundred

thousand dollars ($200,000) in the prior calendar year.

(iii) Three thousand dollars ($3,000) for a licensee whose

total annual wine purchase from the board is at least two

hundred thousand dollars ($200,000) in the prior calendar year.

(2) For a wine expanded permit issued to a grocery store, an

initial application fee of fifty thousand dollars ($50,000) for

grocery stores located in sixth through eighth class counties,

one hundred thousand dollars ($100,000) for grocery stores

located in third through fifth class counties and one hundred

fifty thousand dollars ($150,000) for grocery stores located in

first class, second class and second class A counties and annual

renewal fees as follows:

(i) One thousand dollars ($1,000) for a licensee whose total

annual wine purchase from the board is less than one hundred

thousand dollars ($100,000) in the prior calendar year.

(ii) Two thousand dollars ($2,000) for a licensee whose

total annual wine purchase from the board is at least one

hundred thousand dollars ($100,000) but less than two hundred

thousand dollars ($200,000) in the prior calendar year.

(iii) Three thousand dollars ($3,000) for a licensee whose

total annual wine purchase from the board is at least two

hundred thousand dollars ($200,000) in the prior calendar year.

(3) For a wine expanded permit issued to a food market, an

initial application fee of twenty-five thousand dollars

($25,000) for a food market located in sixth through eighth

class counties, fifty thousand dollars ($50,000) for a food

20150SB0651PN0641 - 20 -

market located in third through fifth class counties and

seventy-five thousand dollars ($75,000) for a food market

located in first class, second class or second class A counties

and annual renewal fees as follows:

(i) One thousand dollars ($1,000) for a licensee whose total

annual wine purchase from the board is less than one hundred

thousand dollars ($100,000) in the prior calendar year.

(ii) Two thousand dollars ($2,000) for a licensee whose

total annual wine purchase from the board is at least one

hundred thousand dollars ($100,000) but less than two hundred

thousand dollars ($200,000) in the prior calendar year.

(iii) Three thousand dollars ($3,000) for a licensee whose

total annual wine purchase from the board is at least two

hundred thousand dollars ($200,000) in the prior calendar year.

expanded permit holder for payment of the initial application

and renewal fees and charge an installment payment fee.

(d) A wine expanded permit holder may sell, in a single

transaction, up to three bottles of wine.

(e) The board may not grant a wine expanded permit to a

licensee or a licensee's officers, directors or shareholders who

have been convicted in any jurisdiction of a felony liquor

offense. The board may not issue an expanded license to a person

who has, through an attorney of record, pled or agreed to plead

guilty, either as an individual or as an officer of a

corporation, to a criminal charge filed against the person in

this Commonwealth involving an illegal controlling interest in

licenses authorized under this act, notwithstanding if the

record of the plea agreement has been expunged.

Section 10. Section 431(b) of the act, amended December 8,

20150SB0651PN0641 - 21 -

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

Section 431. Malt and Brewed Beverages Manufacturers',

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

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

applies therefor, and pays the license fee hereinafter

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

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

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

where sold, and in quantities of not less than [a case or

original containers containing one hundred twenty-eight ounces

or more which may be sold separately] a six-pack consisting of

not less than forty-two ounces 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

20150SB0651PN0641 - 22 -

opinion, such new license or transfer would be detrimental to

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

neighborhood within a radius of five hundred feet of the place

proposed to be licensed. The board shall refuse any application

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

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

may enter into an agreement with the applicant concerning

additional restrictions on the license in question. If the board

and the applicant enter into such an agreement, such agreement

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

adhere to the agreement will be sufficient cause to form the

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

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

agreement with an applicant concerning additional restrictions,

those restrictions shall be binding on subsequent holders of the

license until the license is transferred to a new location or

until the board enters into a subsequent agreement removing

those restrictions. If the application in question involves a

location previously licensed by the board, then any restrictions

imposed by the board on the previous license at that location

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

new agreement rescinding those restrictions. The board shall

require notice to be posted on the property or premises upon

which the licensee or proposed licensee will engage in sales of

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

notice required of hotel, restaurant and club liquor licensees.

Except as hereinafter provided, such license shall authorize

the holder thereof to sell or deliver malt or brewed beverages

in quantities above specified anywhere within the Commonwealth

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

20150SB0651PN0641 - 23 -

purchased only from persons licensed under this act as

manufacturers or importing distributors, and in the case of

importing distributors, have been purchased from manufacturers

or persons outside this Commonwealth engaged in the legal sale

of malt or brewed beverages or from manufacturers or importing

distributors licensed under this article. In the case of an

importing distributor, the holder of such a license shall be

authorized to store and repackage malt or brewed beverages owned

by a manufacturer at a segregated portion of a warehouse or

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

by the importing distributor within its appointed territory and

deliver such beverages to another importing distributor who has

been granted distribution rights by the manufacturer as provided

herein. The importing distributor shall be permitted to receive

a fee from the manufacturer for any related storage, repackaging

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

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

to receive, store and repackage malt or brewed beverages

produced by that manufacturer for sale by that manufacturer to

importing distributors to whom that manufacturer has given

distribution rights pursuant to this subsection or to purchasers

outside this Commonwealth for delivery outside this

Commonwealth; or to ship to that manufacturer's storage

facilities outside this Commonwealth. The bailee for hire shall

be permitted to receive a fee from the manufacturer for any

related storage, repackaging or delivery services. The bailee

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

complete and accurate records of all transactions, inventory,

receipts and shipments and make all records and the licensed

areas available for inspection by the board and for the

20150SB0651PN0641 - 24 -

Pennsylvania State Police, Bureau of Liquor Control Enforcement,

during normal business hours.

Each out of State manufacturer of malt or brewed beverages

whose products are sold and delivered in this Commonwealth shall

give distributing rights for such products in designated

geographical areas to specific importing distributors, and such

importing distributor shall not sell or deliver malt or brewed

beverages manufactured by the out of State manufacturer to any

person issued a license under the provisions of this act whose

licensed premises are not located within the geographical area

for which he has been given distributing rights by such

manufacturer. Should a licensee accept the delivery of such malt

or brewed beverages in violation of this section, said licensee

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

thirty days: Provided, That the importing distributor holding

such distributing rights for such product shall not sell or

deliver the same to another importing distributor without first

having entered into a written agreement with the said secondary

importing distributor setting forth the terms and conditions

under which such products are to be resold within the territory

granted to the primary importing distributor by the

manufacturer.

When a Pennsylvania manufacturer of malt or brewed beverages

licensed under this article names or constitutes a distributor

or importing distributor as the primary or original supplier of

his product, he shall also designate the specific geographical

area for which the said distributor or importing distributor is

given distributing rights, and such distributor or importing

distributor shall not sell or deliver the products of such

manufacturer to any person issued a license under the provisions

20150SB0651PN0641 - 25 -

of this act whose licensed premises are not located within the

geographical area for which distributing rights have been given

to the distributor and importing distributor by the said

manufacturer: Provided, That the importing distributor holding

such distributing rights for such product shall not sell or

deliver the same to another importing distributor without first

having entered into a written agreement with the said secondary

importing distributor setting forth the terms and conditions

under which such products are to be resold within the territory

granted to the primary importing distributor by the

manufacturer. Nothing herein contained shall be construed to

prevent any manufacturer from authorizing the importing

distributor holding the distributing rights for a designated

geographical area from selling the products of such manufacturer

to another importing distributor also holding distributing

rights from the same manufacturer for another geographical area,

providing such authority be contained in writing and a copy

thereof be given to each of the importing distributors so

affected.

* * *

Section 11. Section 441(a), (b) and (i) of the act, amended

or added June 18, 1998 (P.L.664, No.86), December 9, 2002

(P.L.1653, No.212) and December 22, 2011 (P.L.530, No.113), 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[;], except that a

20150SB0651PN0641 - 26 -

distributor or importing distributor may break the bulk of a

case and sell a unit of that case in quantities of not less than

a six-pack;

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

manner described by subsection (f);

(3) as provided in section 431(b)

(b) (1) 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] not less than a

six-pack consisting of not less than forty-two ounces 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.

(2) No distributor or importing distributor shall sell malt

or brewed beverages in a container containing one hundred

twenty-eight fluid ounces or more without first requiring the

purchaser to execute a numbered form providing for the

purchaser's name and address and such other information as the

board may prescribe. Following execution of the numbered form,

the distributor or importing distributor shall affix to the

container an identification tag that corresponds to the number

on the form completed by the purchaser. Records required under

this clause shall be maintained in accordance with the rules and

regulations of the board. The removal of an identification tag

20150SB0651PN0641 - 27 -

in violation of this clause and the rules and regulations of the

board shall be a summary offense. This clause shall not apply to

the sale of a container by an importing distributor or a

distributor to another importing distributor or distributor.

* * *

[(i) Notwithstanding any other provision to the contrary,

when making a sale of malt or brewed beverages to a private

individual, no distributor or importing distributor may be

required to collect the name, address or any other identifying

information of the private individual for the purpose of keeping

a record of the quantity of cases or volume of malt or brewed

beverages purchased.]

Section 12. Section 442(a)(1) of the act, amended June 28,

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

Section 442. Retail Dispensers' Restrictions on Purchases

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

receive any malt or brewed beverages except in original

containers as prepared for the market by the manufacturer at the

place of manufacture. The retail dispenser may thereafter break

the bulk upon the licensed premises and sell or dispense the

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

retail dispenser may sell malt or brewed beverages for

consumption off the premises in quantities in excess of [one

hundred ninety-two fluid ounces.] three six-packs or one twelve-

pack and one six-pack in a single transaction consisting of not

more than two hundred eighty-eight ounces for consumption off

the premises so long as the original containers are in a

package, prepared for sale or distribution by the manufacturer,

of not more than twelve original containers. Sales may be made

in open or closed containers, provided, however, that a

20150SB0651PN0641 - 28 -

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. A licensee may not sell malt or

brewed beverages for consumption off the premises at less than

its acquisition cost.

* * *

Section 13. 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)] the

greater of two thousand dollars ($2,000) or ten per centum (10%)

of the average gross monthly sales of alcoholic beverages sold

by the licensee during the twelve-month period immediately

preceding the filing of the licensee's renewal application, or

both, notifying the licensee by registered letter addressed to

his licensed premises.

(b.1) 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 493(14), (16) or (21), or has been found to be a

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

20150SB0651PN0641 - 29 -

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)]

the greater of ten thousand dollars ($10,000) or ten per centum

(10%) of the average gross monthly sales of alcoholic beverages

sold by the licensee during the twelve-month period immediately

preceding the filing of the licensee's renewal application, 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)] the greater of two thousand dollars ($2,000)

or ten per centum (10%) of the average gross monthly sales of

alcoholic beverages sold by the licensee during the twelve-month

period immediately preceding the filing of the licensee's

renewal application, or both.

(b.2) The administrative law judge shall notify the licensee

by registered mail, addressed to the licensed premises, of such

20150SB0651PN0641 - 30 -

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 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

20150SB0651PN0641 - 31 -

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

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

20150SB0651PN0641 - 32 -

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

investigation.

* * *

Section 14. 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.--(a) (Reserved).

(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.

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.] (Reserved).

20150SB0651PN0641 - 33 -

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

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

order of any person in this Commonwealth.

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

shipped [into this Commonwealth] to Pennsylvania Liquor Stores

in the preceding calendar year.

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

Secretary of Revenue, or their designated representatives, to

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

shipper's records upon request.

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

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.

20150SB0651PN0641 - 34 -

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

Appropriations Committee and the Law and Justice Committee of

the Senate and to the Appropriations Committee and the Liquor

Control Committee of the House of Representatives summarizing

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

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

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

and the total dollar value of sales under this section.

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

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

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

"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 15. The act is amended by adding a section to read:

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

any other provision of law to the contrary, 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 (21)

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,

20150SB0651PN0641 - 35 -

if applicable.

(4) Provide documentation to the board which evidences that

the applicant has obtained a sales tax license from the

Department of Revenue.

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

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

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

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

that may be due or become due.

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

board deems necessary and appropriate.

(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 the transporter-for-hire 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

20150SB0651PN0641 - 36 -

intoxicated at the time of delivery.

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

all taxes due on sales to residents of this Commonwealth.

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

Secretary of Revenue, or their designated representatives, to

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

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

board, any other State agency and the courts of this

Commonwealth for purposes of enforcement of this section and any

related laws, rules or regulations, including the collection and

remission of taxes as required under this section.

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

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."

20150SB0651PN0641 - 37 -

(e) A transporter-for-hire shall:

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

the direct shipment of wine; and

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

designated representatives, to inspect such records in

accordance with section 513.

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

commits a misdemeanor of the second degree.

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

persons who do not possess a license from the board authorizing

such shipments are prohibited. Any person who knowingly makes,

participates in, transports, imports or receives such shipment

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

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

by adding clauses to read:

20150SB0651PN0641 - 38 -

Section 493. Unlawful Acts Relative to Liquor, Malt and

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

in this section, shall mean those persons licensed under the

provisions of Article IV, unless the context clearly indicates

otherwise.

It shall be unlawful--

* * *

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

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

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

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

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

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

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agent of a manufacturer shall not be redeemed without proof of

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

monies specifically deposited for the return of the original

container to the owners thereof.

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

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

hold a slot machine license or a conditional slot machine

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

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

actively engaged in playing a slot machine.

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

of law, the board may establish and implement a customer

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.

(36) Sale of Unauthorized Wine.--For any wine expanded

permit holder, servants, agents or employes of the permit holder

to offer for sale, sell or cause to be sold any wine or any size

container or quantity of wine, other than that which is

specifically authorized by the permit. Any wine that is offered

for sale, sold or caused to be sold in violation of this clause

shall be subject to seizure by the enforcement bureau pursuant

to the provisions of section 211(3) or, where appropriate,

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forfeited to the Commonwealth in the manner prescribed in

Article VI.

Section 17. 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 in any one sale for

consumption off the premises] three six-packs or one twelve-pack

and one six-pack in a single transaction consisting of not more

than two hundred eighty-eight ounces for consumption off the

premises so long as the original containers are in a package,

prepared for sale or distribution by the manufacturer, of not

more than twelve original containers;

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

consumption off the premises are made prior to the designated

time the licensee is required by this act to cease serving

liquor, malt or brewed beverages;

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

consumption off the premises shall remove the malt and brewed

beverages from the premises by the designated time as contained

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 18. Section 802 of the act, amended May 28, 1993

(P.L.42, No.13), April 29, 1994 (P.L.212, No.30) and July 11,

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1996 (P.L.654, No.111), is amended to read:

Section 802. Moneys Paid Into The State Stores Fund for Use

of the Commonwealth.--(a) All moneys, except fees to be paid

into the Liquor License Fund as provided by section 801,

collected, received or recovered under the provisions of this

act for license fees, permit fees, filing fees and registration

fees, from forfeitures, sales of forfeited property, compromise

penalties and sales of liquor and alcohol at the Pennsylvania

Liquor Stores, shall be paid into the State Treasury through the

Department of Revenue into a special fund to be known as "The

State Stores Fund."

sale of liquor and alcohol shall be annually transferred to the

Department of Health for use by the Office of Drug and Alcohol

Programs, or its successor in function, for the following

purposes:

(1) Treatment and rehabilitation of persons addicted to the

excessive use of alcoholic beverages.

(2) Promotion of education, prevention and early

intervention programs designed to eliminate abuse and addiction

to alcohol or other mood-altering substances or secure

appropriate treatment for the already addicted.

(3) Study of the problem of addiction.

(d) All other moneys in such fund shall be available for the

purposes for which they are appropriated by law.

(e) Annually, the General Assembly shall make an

appropriation from the State Stores Fund to provide for the

operational expenses of the enforcement bureau.

(f) Any moneys in the State Stores Fund, from time to time,

which may not be required for any of the purposes specified in

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this act or in the act of December 20, 1933 (Sp.Sess., P.L.89,

No.15), entitled "An act appropriating the moneys in The State

Stores Fund," shall be paid over into the General Fund and shall

be available for the payment of appropriations made from the

General Fund. The Pennsylvania Liquor Control Board, with the

approval of the Governor, shall, from time to time, fix the

amount of money which may be so paid over into the General Fund

and by its requisition shall direct the Department of the

Auditor General and the Treasury Department to transfer such

moneys from the State Stores Fund to the General Fund. The

Pennsylvania Liquor Control Board shall, immediately upon voting

to pay over any moneys from the State Stores Fund to the General

Fund, notify the chairman and minority chairman of the

Appropriations Committee of the Senate and the chairman and

minority chairman of the Appropriations Committee of the House

of Representatives of such transfer of moneys.

(g) The sum of five million dollars ($5,000,000) shall be

transferred from The State Stores Fund in accordance with

subsection (f) to the Children's Health Fund for health care for

indigent children established by section 1296 of the act of

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

1971," to carry out the provisions of the act of December 2,

1992 (P.L.741, No.113), known as the "Children's Health Care

Act," for the fiscal year July 1, 1996, to June 30, 1997. Funds

transferred under this subsection shall not be subject to the

limitation set forth in section 3101 of the "Children's Health

Care Act."

Section 19. This act shall take effect in 60 days.

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