Regular Session 2015-2016 House Bill 1690 P.N. 2653

SENATE AMENDED

PRIOR PRINTER'S NOS. 2516, 2559, 2623

PRINTER'S NO. 2653

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1690

Session of

2015

INTRODUCED BY TURZAI, BLOOM, CUTLER, PAYNE, HICKERNELL, GREINER,

A. HARRIS, MILNE, MOUL, SAYLOR, SANKEY, CORBIN, ROAE,

EVERETT, LAWRENCE, DUNBAR, TRUITT, QUIGLEY, LEWIS, MACKENZIE,

MILLARD, STAATS, DELOZIER, MUSTIO, TOPPER, MENTZER, SONNEY,

KNOWLES, KAMPF, ROSS, METCALFE, ZIMMERMAN AND BENNINGHOFF,

NOVEMBER 12, 2015

SENATOR MCILHINNEY, LAW AND JUSTICE, IN SENATE, RE-REPORTED AS

AMENDED, DECEMBER 9, 2015

AN ACT

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

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

malt and brewed beverages; amending, revising, consolidating

and changing the laws relating thereto; regulating and

restricting the manufacture, purchase, sale, possession,

consumption, importation, transportation, furnishing, holding

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

liquors, alcohol and malt and brewed beverages and the

persons engaged or employed therein; defining the powers and

duties of the Pennsylvania Liquor Control Board; providing

for the establishment and operation of State liquor stores,

for the payment of certain license fees to the respective

municipalities and townships, for the abatement of certain

nuisances and, in certain cases, for search and seizure

without warrant; prescribing penalties and forfeitures;

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

follows:

In preliminary provisions, further providing for definitions.

In Pennsylvania Liquor Control Board, further providing for

general powers of board.

In licenses and regulations, liquor, alcohol and malt and

brewed beverages, further providing for license districts,

license period and hearings and for issuance, transfer or

extension of hotel, restaurant and club liquor licenses,

providing for wholesale permit, for wholesale licenses, for wine

or liquor expanded permits, for wine or liquor enhanced permits

and for grocery store retail permits; further providing for malt

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and brewed beverages manufacturers', distributors' and importing

distributors' licenses, for malt and brewed beverages retail

licenses, for application for distributors', importing

distributors' and retail dispensers' licenses, for prohibitions

against the grant of licenses, for interlocking business

prohibited, for licenses not assignable and transfers, for

surrender of restaurant, eating place retail dispenser, hotel,

importing distributor and distributor license for benefit of

licensee and for unlawful acts relative to malt or brewed

beverages and licensees.

In miscellaneous provisions, providing for transition

assistance committee, for preference in public employment

hiring, career training and post-secondary education grant

eligibility, for reemployment tax credit and for protection of

existing benefits.

The General Assembly finds and declares as follows:

(1) It is the purpose of this act to reform and

privatize the system by which alcohol is dispensed and

controlled within this Commonwealth to reflect changes in the

marketplace while continuing to protect the welfare, health,

peace and morals of the citizens of this Commonwealth.

(2) The 21st amendment to the Constitution of the United

States dictates that the laws of the states shall govern the

transportation and importation of intoxicating liquors into

the state for delivery and use within the state.

(3) Further, the United States Supreme Court has opined

in interpreting the 21st amendment that "the states'

regulatory power over this segment of commerce is largely

unfettered by the Constitution's commerce clause."

(4) Revenues derived from the operation of a system for

the manufacture, transportation, distribution and sale of

alcohol are necessary to implement and sustain a regulated

marketplace to continue to protect the welfare, health, peace

and morals of the citizens of this Commonwealth and to

contribute to the overall economic stability of the

Commonwealth.

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(5) In order to adapt to the changing marketplace, this

act will:

(i) Permit private industry to offer additional

products for sale while ensuring that the laws of this

Commonwealth are thoroughly enforced.

(ii) Ensure that the value of licenses held by small

businesses are not devalued, but are enhanced through the

opportunity to expand operations and sales.

(iii) Provide for the operation of a retail system

that promotes competition and convenience to ensure that

the residents of this Commonwealth purchase products

within this Commonwealth.

(iv) Establish a system by which these increased

opportunities will continue to contribute to overall

fiscal stability of the Commonwealth.

(6) Recognizing the benefits of allowing the private

market to offer products directly to licensees and retailers,

the General Assembly intends to fully divest of the

Commonwealth's wholesale liquor business in order to allow

additional products into the marketplace, establish a more

reliable system for the distribution of products and provide

additional convenience for licensees and retailers.

(7) Recognition and furtherance of all these elements is

essential to the welfare, health, peace and morals of the

citizens of this Commonwealth. IN LICENSES AND REGULATIONS,

LIQUOR, ALCOHOL AND MALT AND BREWED BEVERAGES, FURTHER

PROVIDING FOR ISSUANCE, TRANSFER OR EXTENSION OF HOTEL,

RESTAURANT AND CLUB LIQUOR LICENSES, FOR MALT AND BREWED

BEVERAGES MANUFACTURERS', DISTRIBUTORS' AND IMPORTING

DISTRIBUTORS' LICENSES, FOR MALT AND BREWED BEVERAGES RETAIL

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LICENSES, FOR LICENSES NOT ASSIGNABLE AND TRANSFERS AND FOR

SURRENDER OF RESTAURANT, EATING PLACE RETAIL DISPENSER,

HOTEL, IMPORTING DISTRIBUTOR AND DISTRIBUTOR LICENSE FOR

BENEFIT OF LICENSEE.

AMENDING THE ACT OF APRIL 12, 1951 (P.L.90, NO.21), ENTITLED, AS

REENACTED, "AN ACT RELATING TO ALCOHOLIC LIQUORS, ALCOHOL AND

MALT AND BREWED BEVERAGES; AMENDING, REVISING, CONSOLIDATING

AND CHANGING THE LAWS RELATING THERETO; REGULATING AND

RESTRICTING THE MANUFACTURE, PURCHASE, SALE, POSSESSION,

CONSUMPTION, IMPORTATION, TRANSPORTATION, FURNISHING, HOLDING

IN BOND, HOLDING IN STORAGE, TRAFFIC IN AND USE OF ALCOHOLIC

LIQUORS, ALCOHOL AND MALT AND BREWED BEVERAGES AND THE

PERSONS ENGAGED OR EMPLOYED THEREIN; DEFINING THE POWERS AND

DUTIES OF THE PENNSYLVANIA LIQUOR CONTROL BOARD; PROVIDING

FOR THE ESTABLISHMENT AND OPERATION OF STATE LIQUOR STORES,

FOR THE PAYMENT OF CERTAIN LICENSE FEES TO THE RESPECTIVE

MUNICIPALITIES AND TOWNSHIPS, FOR THE ABATEMENT OF CERTAIN

NUISANCES AND, IN CERTAIN CASES, FOR SEARCH AND SEIZURE

WITHOUT WARRANT; PRESCRIBING PENALTIES AND FORFEITURES;

PROVIDING FOR LOCAL OPTION, AND REPEALING EXISTING LAWS,"AS

FOLLOWS:

IN PRELIMINARY PROVISIONS, FURTHER PROVIDING FOR

DEFINITIONS.

IN PENNSYLVANIA LIQUOR CONTROL BOARD, FURTHER PROVIDING

FOR GENERAL POWERS OF BOARD.

IN PENNSYLVANIA LIQUOR STORES, FURTHER PROVIDING FOR WHEN

SALES MAY BE MADE AT PENNSYLVANIA LIQUOR STORES AND FOR SALES

BY PENNSYLVANIA LIQUOR STORES.

IN LICENSES AND REGULATIONS, LIQUOR, ALCOHOL AND MALT AND

BREWED BEVERAGES,

FURTHER PROVIDING FOR LICENSE DISTRICTS, PERIODS AND

HEARINGS, FOR ISSUANCE, TRANSFER OR EXTENSION OF HOTEL,

RESTAURANT AND CLUB LIQUOR LICENSES, FOR SALES BY LIQUOR

LICENSEES AND RESTRICTIONS, FOR SPECIAL OCCASION PERMITS,

FOR WINE OPTION PERMITS, FOR LIQUOR IMPORTERS' LICENSES,

FEES, PRIVILEGES AND RESTRICTIONS AND FOR INTERLOCKING

BUSINESS PROHIBITED;

PROVIDING FOR WINE EXPANDED PERMITS AND FOR CASINO

LIQUOR LICENSE;

FURTHER PROVIDING FOR MALT AND BREWED BEVERAGES

MANUFACTURERS', DISTRIBUTORS' AND IMPORTING DISTRIBUTORS'

LICENSES, FOR MALT AND BREWED BEVERAGES RETAIL LICENSES,

FOR APPLICATION FOR DISTRIBUTORS', IMPORTING

DISTRIBUTORS' AND RETAIL DISPENSERS' LICENSES, FOR

DISTRIBUTORS' AND IMPORTING DISTRIBUTORS' RESTRICTIONS ON

SALES, STORAGE, ETC., FOR RETAIL DISPENSERS' RESTRICTIONS

ON PURCHASES AND SALES, FOR INTERLOCKING BUSINESS

PROHIBITED AND FOR BREWERIES;

ESTABLISHING THE PENNSYLVANIA MALT AND BREWED

BEVERAGES INDUSTRY PROMOTION BOARD;

FURTHER PROVIDING FOR LIMITING NUMBER OF RETAIL

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LICENSES TO BE ISSUED IN EACH COUNTY, FOR INCORPORATED

UNITS OF NATIONAL VETERANS' ORGANIZATIONS, FOR LICENSES

NOT ASSIGNABLE AND TRANSFERS AND FOR RENEWAL OF LICENSES

AND TEMPORARY PROVISIONS FOR LICENSEES IN ARMED SERVICES;

PROVIDING FOR LICENSE AUCTION;

FURTHER PROVIDING FOR RESPONSIBLE ALCOHOL MANAGEMENT,

FOR LOCAL OPTION, FOR PUBLIC RECORD, FOR SURRENDER OF

RESTAURANT, EATING PLACE RETAIL DISPENSER, HOTEL,

IMPORTING DISTRIBUTOR AND DISTRIBUTOR LICENSE FOR BENEFIT

OF LICENSEE AND FOR SHIPMENT OF WINE INTO COMMONWEALTH;

PROVIDING FOR PENNSYLVANIA WINE MARKETING AND

RESEARCH BOARD; AND

FURTHER PROVIDING FOR UNLAWFUL ACTS RELATIVE TO

LIQUOR, ALCOHOL AND LIQUOR LICENSEES, FOR UNLAWFUL ACTS

RELATIVE TO LIQUOR, MALT AND BREWED BEVERAGES AND

LICENSEES AND FOR IDENTIFICATION CARDS, LICENSEES AND

STATE LIQUOR STORE EMPLOYEES SAVED FROM PROSECUTION.

IN DISTILLERIES, WINERIES, BONDED WAREHOUSES, BAILEES FOR

HIRE AND TRANSPORTERS FOR HIRE, FURTHER PROVIDING FOR LIMITED

WINERIES AND FOR DISTILLERIES.

ESTABLISHING A WINE AND SPIRITS WHOLESALE AND RETAIL

PRIVATIZATION COMMISSION.

THE GENERAL ASSEMBLY FINDS AND DECLARES AS FOLLOWS:

(1) IT IS THE PURPOSE OF THIS ACT TO REFORM THE SYSTEM

BY WHICH ALCOHOL IS DISPENSED AND CONTROLLED WITHIN THIS

COMMONWEALTH TO REFLECT CHANGES IN THE MARKETPLACE WHILE

CONTINUING TO PROTECT THE WELFARE, HEALTH, PEACE AND MORALS

OF THE CITIZENS OF THIS COMMONWEALTH.

(2) THE 21ST AMENDMENT TO THE CONSTITUTION OF THE UNITED

STATES DICTATES THAT THE LAWS OF THE STATES SHALL GOVERN THE

TRANSPORTATION AND IMPORTATION OF INTOXICATING LIQUORS INTO

THE STATE FOR DELIVERY AND USE WITHIN THE STATE.

(3) FURTHER, THE UNITED STATES SUPREME COURT HAS OPINED

IN INTERPRETING THE 21ST AMENDMENT THAT "THE STATES'

REGULATORY POWER OVER THIS SEGMENT OF COMMERCE IS LARGELY

UNFETTERED BY THE CONSTITUTION'S COMMERCE CLAUSE."

(4) REVENUES DERIVED FROM THE OPERATION OF A SYSTEM FOR

THE MANUFACTURE, TRANSPORTATION, DISTRIBUTION AND SALE OF

ALCOHOL ARE NECESSARY TO IMPLEMENT AND SUSTAIN A REGULATED

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MARKETPLACE TO CONTINUE TO PROTECT THE WELFARE, HEALTH, PEACE

AND MORALS OF THE CITIZENS OF THIS COMMONWEALTH AND TO

CONTRIBUTE TO THE OVERALL ECONOMIC STABILITY OF THE

COMMONWEALTH.

(5) IN ORDER TO ADAPT TO THE CHANGING MARKETPLACE, THIS

ACT WILL:

(I) PERMIT PRIVATE INDUSTRY TO OFFER ADDITIONAL

PRODUCTS FOR SALE WHILE ENSURING THAT THE LAWS OF THIS

COMMONWEALTH ARE THOROUGHLY ENFORCED.

(II) ENSURE THAT THE VALUE OF LICENSES HELD BY SMALL

BUSINESSES ARE NOT DEVALUED, BUT ARE ENHANCED THROUGH THE

OPPORTUNITY TO EXPAND OPERATIONS AND SALES.

(III) PROVIDE FOR THE OPERATION OF A RETAIL SYSTEM

THAT PROMOTES COMPETITION AND CONVENIENCE TO ENSURE THAT

THE RESIDENTS OF THIS COMMONWEALTH PURCHASE PRODUCTS

WITHIN THIS COMMONWEALTH.

(IV) ESTABLISH A SYSTEM BY WHICH THESE INCREASED

OPPORTUNITIES WILL CONTINUE TO CONTRIBUTE TO OVERALL

FISCAL STABILITY OF THE COMMONWEALTH.

(6) RECOGNITION AND FURTHERANCE OF ALL THESE ELEMENTS IS

ESSENTIAL TO THE WELFARE, HEALTH, PEACE AND MORALS OF THE

CITIZENS OF THIS COMMONWEALTH.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

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

distributor" and "liquor" 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), are amended and the section is amended by

adding definitions to read:

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

unless the context clearly indicates otherwise, shall have the

meanings ascribed to them in this section:

* * *

"Displaced employee" shall mean a salaried employee of the

board whose employment is terminated as a sole and direct result

of the implementation of section 207. The term shall not include

a person who is terminated for cause or who retires or resigns,

is furloughed or is otherwise separated from employment for any

other reason. The term shall not include intermittent liquor

store clerks and seasonal liquor store clerks.

* * *

"Distributor" shall mean any person licensed or holding a

permit authorized by the board to sell wine, sell liquor or 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.

* * *

"Grocery store" shall mean a reputable place operated by

persons of good repute, which primarily sells food, supplies for

the table and food products for human consumption off the

premises and which has an area under one roof of ten thousand

square feet or more.

* * *

"Importing distributor" shall mean any person licensed or

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holding a permit authorized by the board to sell wine, sell

liquor and 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 which may be

sold separately.

"Licensed premises" shall mean the premises covered by the

license as approved by the board and shall include the term

"location" as used in sections 404, 431(b) and 432(d).

* * *

"Liquor" except as provided in sections 207(a.1), 410.1(c),

415(f) and 416(l), shall mean and include any alcoholic,

spirituous, vinous, fermented or other alcoholic beverage, or

combination of liquors and mixed liquor a part of which is

spirituous, vinous, fermented or otherwise alcoholic, including

all drinks or drinkable liquids, preparations or mixtures, and

reused, recovered or redistilled denatured alcohol usable or

taxable for beverage purposes which contain more than one-half

of one per cent of alcohol by volume, except pure ethyl alcohol

and malt or brewed beverages.

* * *

"Unlicensed entity" shall mean a person not holding a license

issued pursuant to this act that possesses a valid wine enhanced

permit or liquor enhanced permit under section 416(f).

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

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section is amended by adding a subsection to read:

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

board shall have the power and its duty shall be:

* * *

(a.1) (1) To close Pennsylvania Liquor Stores. Before

making a determination to close a Pennsylvania Liquor Store, the

board shall take into consideration the availability and

accessibility of liquor to the public through the private retail

market, the pricing of liquor in the area and the profitability

of the store.

(2) Availability and accessibility of liquor shall be

determined by the proximity of the closest holder of a wine and

liquor enhanced permit under section 416. The board shall

identify the two closest distributors or importing distributors.

If one of the distributors or importing distributors is selling

wine and liquor under section 416 or, if there is an unlicensed

entity selling wine and liquor under section 416 within the same

proximity of the two closest distributors or importing

distributors, then the board shall close the store.

(3) A Pennsylvania Liquor Store designated for closure shall

cease operations within sixty days.

(4) The board shall arrange for the disposition of the

liquor remaining in inventory at a designated store. In order to

effectuate this subsection, the board may, in consultation with

the Department of General Services, do any of the following:

(i) Coordinate with the vendor of record for the repurchase

of products by the vendor of record.

(ii) Sell products to holders of wine or liquor expanded or

enhanced permits or an unlicensed wine or liquor enhanced permit

holder.

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(iii) Transport products for sale at another operating

Pennsylvania Liquor Store.

(5) The Department of General Services, in consultation with

the board, shall establish a procedure for the sale of the

nonliquor inventory, property and fixtures of all Pennsylvania

Liquor Stores consistent with 62 Pa.C.S. Ch. 15 (relating to

supply management). The holders of wine or liquor enhanced

permits shall have the opportunity to bid on the items to be

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

sales shall be deposited into the State Store Fund.

(6) The board shall provide immediate notice to the lessor

upon receipt of notice to close a designated Pennsylvania Liquor

Store issued by the Department of General Services. The board

shall reimburse the lessor for any outstanding renovation costs

that were incurred during the term of the current lease as of

the effective date of the act.

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

consumption, importation, use, storage, transportation and

delivery of liquor, alcohol and malt or brewed beverages in

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

wholesale and retail prices at which liquors and alcohol shall

be sold at Pennsylvania Liquor Stores.

(1) 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.

(2) 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.

(3) The board shall require each Pennsylvania manufacturer

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and each nonresident manufacturer of liquors, other than wine,

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

this Commonwealth, to make application for and be granted a

permit by the board before such liquors not manufactured in this

Commonwealth shall be purchased from such manufacturer. Each

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

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

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

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

liquors, for selling liquors manufactured in Pennsylvania, and

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

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

country by Pennsylvania manufacturers doing business in such

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

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

to sell liquors to the board through another person for the

purpose of evading this provision relating to permits, the board

shall require such person, before purchasing liquors from him or

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

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

collected shall be paid into the State Stores Fund.

(4) 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.

(5) The board's authority to exercise the powers granted

pursuant to this subsection is subject to the limitations set

forth in sections 207(a.1), 410.1 and 410.2.

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* * *

Section 3. 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 permit holders holding a

valid wine or liquor expanded or wine or liquor enhanced permit

or grocery store retail permit under section 415, 416 or 417.

Section 4. Section 404 of the act, amended January 6, 2006

(P.L.1, No.1), is amended to read:

SECTION 1. SECTION 404 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 JANUARY 6, 2006 (P.L.1, NO.1),

IS AMENDED TO READ:

Section 404. Issuance, Transfer or Extension of Hotel,

Restaurant and Club Liquor Licenses.--Upon receipt of the

application and the proper fees, and upon being satisfied of the

truth of the statements in the application that the applicant is

the only person in any manner pecuniarily interested in the

business so asked to be licensed and that no other person will

be in any manner pecuniarily interested therein during the

continuance of the license, except as hereinafter permitted, and

that the applicant is a person of good repute, that the premises

applied for meet all the requirements of this act and the

regulations of the board, that the applicant seeks a license for

a hotel, restaurant or club, as defined in this act, and that

the issuance of such license is not prohibited by any of the

provisions of this act, the board shall, in the case of a hotel

or restaurant, grant and issue to the applicant a liquor

license, and in the case of a club may, in its discretion, issue

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or refuse a license: Provided, however, That in the case of any

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

the extension of an existing license to cover an additional area

the board may, in its discretion, grant or refuse such new

license, transfer or extension 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, transfer or extension 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's

authority to refuse to grant a license because of its proximity

to a church, hospital, charitable institution, public playground

or other licensed premises shall not be applicable to license

applications submitted for public venues or performing arts

facilities: And provided further, That the board shall refuse

any application for a new license, the transfer of any license

to a new location or the extension of an existing license to

cover an additional area if, in the board's opinion, such new

license, transfer or extension 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: And provided further, That 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. [The board shall refuse any application for a new

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

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extension of any license to cover an additional area where the

sale of liquid fuels or oil is conducted.] The board shall not

license the area where liquid fuels or oil is sold. No sales of

liquid fuels or oil may be made from a licensee's licensed

premises. A licensed premises may not have an interior

connection with a location that sells liquid fuels or oils

unless it first receives permission from the board for the

interior connection. The approval shall be required regardless

of whether the licensee or another party is the entity selling

the liquid fuels or oils. 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 may, in its discretion,

refuse an application for an economic development license under

section 461(b.1) or an application for an intermunicipal

transfer of a license if the board receives a protest from the

governing body of the receiving municipality. The receiving

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municipality of an intermunicipal transfer or an economic

development license under section 461(b.1) may file a protest

against the transfer of a license into its municipality, and the

receiving municipality shall have standing in a hearing to

present testimony in support of or against the issuance or

transfer of a license. Upon any opening in any quota, an

application for a new license shall only be filed with the board

for a period of six months following said opening.

Section 5. The act is amended by adding sections to read:

Section 410.1. Wholesale Permit.--(a) Notwithstanding any

other provision of law, an importer licensed under Article V may

make application to the board on forms prescribed by the board

for a wholesale permit for the purpose of selling and

distributing wholesale wine or liquor to licensees, unlicensed

wine or liquor enhanced permit holders and to United States

Armed Forces facilities located on United States Armed Forces

installations within this Commonwealth. Within 30 days of the

effective date of this section, the board shall accept

applications, and the board shall approve the issuance of a

wholesale permit within 60 days of receipt of the application if

the applicant meets the requirements under this section.

Applicants shall submit the initial permit fee with their

application to the board. The Department of Revenue shall audit

retailers to determine whether wholesale permit holders,

licensees or unlicensed wine or liquor enhanced permit holders

are remitting the tax imposed under sections 415 and 416 and

Article II of the act of March 4, 1971 (P.L.6, No.2), known as

the "Tax Reform Code of 1971," for products sold for consumption

on and off the premises. The following shall apply:

(1) The wholesale permit holder shall:

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(i) Provide to the board a list of the brands of wine or

liquor it will distribute.

(ii) Serve all licensees or unlicensed wine or liquor

enhanced permit holders authorized to purchase and resell wine

or liquor under this act and make wine or liquor available for

sale to those licensees or unlicensed wine or liquor enhanced

permit holders under the same pricing structure.

(iii) Post prices with the board and give written notice of

price changes to the board at least 30 days before the effective

date of the price change. All price changes shall be effective

on the first day of the month.

(iv) Keep a detailed log of wholesale wine or liquor

transactions, including sales to licensees or unlicensed wine or

liquor enhanced permit holders under this act.

(2) The wholesale permit holder may sell and distribute more

than one brand of wine or liquor under the same permit and shall

provide any contractual agreements between the wholesale permit

holder and the licensed manufacturer to the board.

(3) The wholesale permit holder may amend the list of brands

of wine or liquor it distributes to include additional brands of

wine or liquor. The following shall apply:

(i) For brands of liquor that have not been sold by the

board at Pennsylvania Liquor Stores or through special liquor

orders, the wholesale permit holders shall apply to the board

for permission to add that brand to the permit holder's list of

brands permitted to be sold under the permit.

(ii) For each new brand of liquor, an application filing fee

of two thousand five hundred dollars ($2,500) shall be submitted

with the application.

(4) The wine or liquor products shipped into this

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Commonwealth must be delivered to the wholesale permit holder's

licensed premises. Upon delivery, the products shall be

unloaded, inventoried and remain on the licensed premises for

forty-eight hours before delivery is made to licensees or

unlicensed wine or liquor enhanced permit holders. During that

time period, the board may inspect and inventory importer

warehouses.

(5) The wholesale permit holder may not engage in conduct

that would constitute any of the following:

(i) Variable pricing.

(ii) Unfair or deceptive trade practices proscribed under

Federal or State law or regulation.

(iii) Intentional exclusion of competing brands of wine or

liquor from the marketplace.

(6) The wholesale permit holder may only sell and distribute

those products in this Commonwealth that are subject to a

contractual relationship between the wholesale permit holder and

one or more licensed manufacturers or suppliers of wine or

liquor.

(7) A wholesale permit holder shall remit to the Department

of Revenue all applicable taxes. A wholesale permit holder shall

be considered a State Liquor Store for the purpose of collecting

and remitting taxes under Article II of the "Tax Reform Code of

1971" for products sold by licensees for on-premises

consumption.

(8) The emergency State tax imposed 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

20150HB1690PN2653 - 17 -

of Revenue and the Pennsylvania Liquor Control Board," shall be

included in the retail price of wine or liquor offered for sale

by a wine or liquor expanded permit holder under section 415 or

by a wine or liquor enhanced permit holder under section 416.

The tax may not be assessed at the point of sale to consumers.

Licensees or unlicensed wine or liquor enhanced permit holders

selling wine or liquor at retail shall be required to remit the

taxes to the Department of Revenue.

(9) No wholesale permit holder under this section may hold a

license or permit to engage in any sales of wine or liquor at

retail to residents of this Commonwealth and no licensee or

permit holder selling wine or liquor at retail in this

Commonwealth may obtain a wholesale permit from the board. No

wholesale permit may be issued to any wine or liquor

manufacturer or producer.

(10) Any licensed importer that wishes to obtain a wholesale

permit shall do all of the following:

(i) Notify the board in writing.

(ii) Pay the permitting fees specified under paragraph (11).

(iii) Provide a statement to the board indicating that the

licensed importer plans to continuously operate under the

wholesale permit for the duration of the permit. The wholesale

permit shall be in effect for ten years from the date of

issuance and shall be renewed yearly with the board unless

suspended, revoked or not renewed.

(11) Wholesale permit fees shall be as follows:

(i) A licensed importer shall submit an initial fee equal to

fifteen per centum (15%) of the cost of goods sold with the

application. For purposes of this paragraph, "cost of goods

sold" shall be determined as the purchase price the board paid

20150HB1690PN2653 - 18 -

to the licensed importer for products sold by the board in the

most recent twelve (12) month period.

(ii) A wholesale permit holder shall pay a renewal fee equal

to fifteen per centum (15%) of its gross receipts for each

calendar quarter upon commencement of its wholesale operations.

(iii) The renewal fee shall be due and payable on the

twentieth day of April, July, October and January. The permit

holder shall file a return and remit payment on the form as

prescribed by the board.

(iv) For purposes of this paragraph, gross receipts shall be

determined as the total of all sales of wine and liquor made to

licensees, unlicensed wine or liquor enhanced permit holders and

grocery store retail permit holders.

(12) Any violation of this act or the board's regulations

for governing activity occurring under the authority of the

wholesale permit may be the basis for any of the following:

(i) A fine, suspension or wholesale permit revocation.

(ii) Nonrenewal of the importer license.

(iii) Other penalties authorized under section 471.

(13) The board shall have no authority to do any of the

following once wholesale permits have been issued and permit

holders have commenced providing wholesale products to licensees

and permit holders:

(i) Determine what wines or liquor products may be sold in

this Commonwealth.

(ii) Set the price at which products may be sold at

wholesale or retail in this Commonwealth.

(iii) Sell products at wholesale to retail licensees or

unlicensed wine or liquor enhanced permit holders.

(b) All fees paid to the board under this section shall be

20150HB1690PN2653 - 19 -

deposited into the General Fund.

shall not include wine.

Section 410.2. Wholesale Licenses.--(a) At the conclusion

of the ten-year wholesale permit under section 410.1., the

Commonwealth's wholesale wine and liquor system shall be

divested.

(b) At the conclusion of the ten-year wholesale permit, the

holder of a wholesale permit shall be granted a wholesale

license to continue operations and shall continue to operate

under the requirements of section 410.1 in addition to the

following requirements:

(1) A wholesale license shall be in effect unless suspended,

revoked or not renewed under this act. A wholesale license in

good standing shall be renewed every year as follows:

(i) Wholesale licenses issued under this section shall be

subject to renewal every year.

(ii) The application for renewal shall be submitted, on a

form prescribed by the board, at least thirty days prior to the

expiration of the wholesale license and shall include, at a

minimum, an update of the information contained in the initial

and prior renewal applications and the payment of any renewal

fee required under this section.

(iii) A renewal fee of five per centum (5%) of the wholesale

licensee's gross receipts shall be due upon application for the

renewal of a wine and spirits retail license. For the purposes

of this subparagraph, gross receipts shall be determined as the

total of all sales of wine and liquor made to licensees and

unlicensed permit holders.

(iv) The board may revoke a wholesale license issued under

20150HB1690PN2653 - 20 -

this section if it finds that the licensee or any of its

affiliates, executive officers, directors or general or limited

partners or persons holding a controlling interest in the

licensee:

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

(B) has furnished the board with false or misleading

information; or

(2) (Reserved).

deposited in the General Fund.

Section 415. Wine or Liquor Expanded Permits.--(a) (1) The

board shall issue a wine or liquor expanded permit to a person

holding and possessing a valid restaurant liquor license or

hotel liquor license. Nothing in this section shall be construed

to prohibit a person possessing a valid restaurant or hotel

liquor license from acquiring both a wine expanded permit and a

liquor expanded permit.

(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

or liquor for consumption off the premises may take place by a

wine or liquor 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 406(a)(3) and 432(f).

(3) No wine or liquor 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.

20150HB1690PN2653 - 21 -

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

or liquor 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 decided.

(4) If the board has approved the operation of another

business which has an inside passage or communication to or with

the licensed premises, the sale and purchase of wine and liquor

shall be confined strictly to the premises, in a specifically

designated area covered by the license. The purchase of goods

obtained from the unlicensed area of the premises shall be

permitted in the licensed area.

(5) For purposes of selling wine or liquor for off-premises

consumption, a holder of a wine or liquor expanded permit is not

subject to section 493(14).

(6) A wine or liquor expanded permit holder shall comply

with the responsible alcohol management provisions under section

471.1.

(7) A wine or liquor expanded permit holder may store wine

or liquor in a noncontiguous area that is not accessible to the

public and is:

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

licensees' employees;

(ii) not accessible to employees eighteen years of age or

younger ; and

(iii) identified by dimensions and locations on forms

submitted to the board.

(8) A wine or liquor expanded permit holder shall utilize a

transaction scan device to verify the age of an individual who

appears to be under thirty-five years of age before making a

20150HB1690PN2653 - 22 -

sale of wine or liquor. A wine or liquor 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) A sale of wine or liquor by a wine or liquor expanded

permit holder shall be made through a register which is well

designated with signage, which is staffed at all times, which is

staffed 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 of wine or liquor

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, an

initial application fee of two thousand five hundred dollars

($2,500) and annual renewal fees as follows:

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

annual wine sales are 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 sales are equal to or greater than 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

20150HB1690PN2653 - 23 -

total annual wine sales are equal to or greater than two hundred

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

(2) (Reserved).

permit shall be as follows:

(1) For a liquor expanded permit issued to licensees, an

initial application fee of two thousand five hundred dollars

($2,500) and annual renewal fees as follows:

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

annual liquor sales are 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 liquor sales are equal to or greater than 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 liquor sales are equal to or greater than two

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

(2) (Reserved).

(d) All fees paid to the board under this section shall be

deposited into the General Fund.

(e) A wine or liquor expanded permit holder may sell for

consumption off the premises, in a single transaction, up to:

(1) four and one-half liters of wine; and

(2) one and seventy-five one hundredths liters of liquor.

(f) A wine or liquor expanded permit holder selling wine or

liquor for consumption off the premises shall be considered a

Pennsylvania Liquor Store for purposes of collecting and

remitting taxes under Article II of the act of March 4, 1971

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

20150HB1690PN2653 - 24 -

(g) For the purposes of this section, the term "liquor"

shall not include wine.

Section 416. Wine or Liquor Enhanced Permits.--(a) (1) The

board shall issue a wine or liquor enhanced permit to a person

holding and possessing a valid distributor or importing

distributor license or to an unlicensed entity. Nothing in this

section shall be construed to prohibit a person possessing a

valid distributor or importing distributor license or an

unlicensed entity from acquiring both a wine enhanced permit and

a liquor enhanced permit.

(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

or liquor for consumption off the premises may take place by a

wine enhanced permit holder after eleven o'clock postmeridian of

any day until eight o'clock antemeridian of the next day.

(3) No wine or liquor enhanced 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

or liquor enhanced 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 decided.

(4) If the board has approved the operation of another

business which has an inside passage or communication to or with

the licensed premises, the sale and purchase of wine or liquor

shall be confined strictly to the premises, in a specifically

designated area covered by the license. The purchase of a good

20150HB1690PN2653 - 25 -

obtained from the unlicensed area of the premises shall be

permitted in the licensed area. Notwithstanding this paragraph,

a distributor or importing distributor with a valid wine or

liquor enhanced permit may sell wine or liquor at a location not

covered by the distributor's or importing distributor's license

as approved by the board.

(5) A wine or liquor enhanced permit holder must be in

compliance with the responsible alcohol management provisions

under section 471.1.

(6) A wine or liquor enhanced permit holder shall utilize a

transaction scan device to verify the age of an individual who

appears to be under thirty-five years of age before making a

sale of liquor. A wine or liquor enhanced 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).

(b) The initial application fee and renewal fees shall be as

follows:

(1) The initial application fee for a wine enhanced permit

issued to a licensee:

(i) For a county of the first class or second class, thirty

thousand dollars ($30,000).

(ii) For a county of the second class A or third class,

thirty-seven thousand five hundred dollars ($37,500).

(iii) For a county of the fourth class or fifth class,

20150HB1690PN2653 - 26 -

twenty-two thousand five hundred dollars ($22,500).

(iv) For a county of the sixth class or seventh class,

fifteen thousand dollars ($15,000).

(v) For a county of the eighth class, seven thousand five

hundred dollars ($7,500).

(2) The annual renewal fee for a wine enhanced permit shall

be as follows:

(i) Two thousand dollars ($2,000) for licensees whose total

annual wine sales are less than one hundred thousand dollars

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

(ii) Four thousand dollars ($4,000) for licensees whose

total annual wine sales are equal to or greater than one hundred

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

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

(iii) Six thousand dollars ($6,000) for licensees whose

total annual wine sales are equal to or greater than two hundred

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

(3) The initial application fee for a liquor enhanced permit

issued to a licensee:

(i) For a county of the first class or second class, fifty-

two thousand five hundred dollars ($52,500).

(ii) For a county of the second class A or third class,

sixty thousand dollars ($60,000).

(iii) For a county of the fourth class or fifth class,

forty-five thousand dollars ($45,000).

(iv) For a county of the sixth class or seventh class,

thirty-seven thousand five hundred dollars ($37,500).

(v) For a county of the eighth class, thirty thousand

dollars ($30,000).

(4) The annual renewal fee for a liquor enhanced permit

20150HB1690PN2653 - 27 -

shall be as follows:

(i) Two thousand dollars ($2,000) for licensees whose total

annual liquor sales are less than one hundred thousand dollars

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

(ii) Four thousand dollars ($4,000) for licensees whose

total annual liquor sales are equal to or greater than one

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

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

(iii) Six thousand dollars ($6,000) for licensees whose

total annual liquor sales are equal to or greater than two

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

(d) A wine or liquor enhanced permit holder may sell

unlimited quantities of wine or liquor for consumption off the

premises.

(e) (Reserved).

(f) The board shall issue wine enhanced permits and liquor

enhanced permits in a number equal to the number of licensed

distributors and importing distributors in a county and in

existence on the effective date of this section. If there are

wine or liquor enhanced permits remaining six months after the

effective date of this section, the board shall auction permits

to a person who does not possess a distributor or importing

distributor license. The permitted facility shall meet all of

the conditions imposed on a licensed distributor under this act,

including the provisions in section 436 relating to the issuance

of a distributor or importing distributor license. The issuance

of a wine or liquor enhanced permit shall be subject to the

quota and county restrictions under section 437(f).

(f.1) For the purposes of auctioning wine and liquor

20150HB1690PN2653 - 28 -

enhanced permits, the board shall post a listing of all

remaining permits on the board's Internet website within sixty

days after the close of the six-month period in subsection (f).

The board shall accept applications from persons interested in

bidding at an auction for all remaining permits. The application

shall contain information as the board prescribes. The auction

shall occur sixty days following the date a permit was posted on

the board's Internet website. An applicant, who would be

precluded from acquiring a license under section 443, shall not

be eligible to participate in an auction or acquire a wine or

liquor enhanced permit. An auction shall be conducted in the

manner set forth by the board and at a date and time set by the

board. The minimum bid for a wine or liquor enhanced permit

shall be $150,000. Following an auction, the board shall

provisionally award a wine or liquor enhanced permit to a person

making the highest bid for that permit. The highest bidder shall

then submit to the board information required by the board,

including the information required under section 436 relating to

the issuance of a distributor or importing distributor license.

Payment shall be made to the board within fourteen days of the

auction and in a manner prescribed by the board. If the highest

bidder does not make payment to the board within fourteen days

of the auction, the second highest bidder shall be awarded the

right to file an application for the wine or liquor enhanced

permit.

(g) The annual renewal fee for a wine or liquor enhanced

permit for unlicensed entities shall be as follows:

(1) For a wine enhanced permit, as follows:

(i) Two thousand dollars ($2,000) for permit holders whose

total annual wine sales are less than one hundred thousand

20150HB1690PN2653 - 29 -

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

(ii) Four thousand dollars ($4,000) for permit holders whose

total wine sales are equal to or greater than one hundred

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

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

(iii) Six thousand dollars ($6,000) for permit holders whose

total annual wine sales are equal to or greater than two hundred

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

(2) For a liquor enhanced permit, as follows:

(i) Two thousand dollars ($2,000) for permit holders whose

total annual liquor sales are less than one hundred thousand

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

(ii) Four thousand dollars ($4,000) for permit holders whose

total annual liquor sales are equal to or greater than one

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

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

(iii) Six thousand dollars ($6,000) for permit holders whose

total annual liquor sales are equal to or greater than two

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

(h) A wine or liquor enhanced permit holder selling wine or

liquor for consumption off the premises shall be required to

obtain a sales tax permit from the Department of Revenue.

(i) All fees paid to the board under this section shall be

deposited into the General Fund.

(j) An unlicensed entity may not hold, directly or

indirectly, more than three wine enhanced permits or three

liquor enhanced permits within this Commonwealth or more than

one wine enhanced permit or one liquor enhanced permit per

county.

(k) A wine or liquor enhanced permit holder selling wine or

20150HB1690PN2653 - 30 -

liquor for consumption off the premises shall be considered a

Pennsylvania Liquor Store for purposes of collecting and

remitting the taxes under Article II of the "Tax Reform Code of

1971."

(l) For the purposes of this section, the term "liquor," as

defined in section 102, shall not include wine.

Section 417. Grocery Store Retail Permits.--(a) The board

shall issue a retail permit to any premises kept or operated by

a grocery store for the premises specified in the permit.

(a.1) An additional grocery store retail permit may not be

issued within a county if the total number of grocery store

retail permits is greater than one permit for every fifteen

thousand inhabitants in the county, except that a total of two

grocery store retail permits may be granted in a county in this

Commonwealth.

(b) Every applicant for a grocery store retail permit shall

file a written application containing information as the board

prescribes which shall include, but not be limited to, the

following:

(1) A description of the part of the grocery store for which

the applicant proposes to keep and sell wine.

(2) Descriptions, information and plans showing the grocery

store and any alterations proposed to be made to the grocery

store or any proposed construction to be completed after

approval of the permit.

initial application fee as follows:

(1) For grocery stores located in counties of the first

class or second class, one hundred sixty-five thousand dollars

($165,000).

20150HB1690PN2653 - 31 -

(2) For grocery stores located in counties of the second

class A or third class, one hundred eighty-seven thousand five

hundred dollars ($187,500).

(3) For grocery stores located in counties of the fourth

class or fifth class, one hundred forty-two thousand five

hundred dollars ($142,500).

(4) For grocery stores located in counties of the sixth

class or seventh class, one hundred twenty thousand dollars

($120,000).

(5) For grocery stores located in counties of the eighth

class, ninety-seven thousand five hundred dollars ($97,500).

(d) The annual renewal fee for a grocery store retail permit

shall be as follows:

(1) Two thousand dollars ($2,000) for a grocery store retail

permit holder whose total annual wine sales are less than one

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

(2) Four thousand dollars ($4,000) for a grocery store

retail permit holder whose total annual wine sales are equal to

or greater than one hundred thousand ($100,000) but less than

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

year.

(3) Six thousand dollars ($6,000) for a grocery store retail

permit holder whose total annual wine sales are equal to or

greater than two hundred thousand ($200,000) in the prior

calendar year.

(e) A grocery store retail permit holder may sell for

consumption off the premises, in a single transaction, up to

nine (9) liters of wine.

(f) Every applicant for a permit shall post, for a period of

at least thirty days beginning with the day the application is

20150HB1690PN2653 - 32 -

filed with the board, in a conspicuous place on the outside of

the premises, a notice of the application. The notice shall be

in the form, size and contain provisions as required by the

board by regulation. Proof of the posting of the notice shall be

filed with the board.

(g) Upon receipt of an application for a permit under this

section, the board shall immediately notify, in writing, the

municipality in which the premises proposed to be licensed are

located.

(h) Every grocery store retail permit holder may sell wine

for consumption off the licensed premises from any location

within the licensed premises. Educational information regarding

the types of products sold by the grocery store retail permit

holder and regarding the responsible consumption of alcohol

shall be displayed and readily available wherever alcohol is

displayed. Permit holders under this section may display the

alcohol products the permit holders offer for sale on shelving

units and systems, and in or on refrigerated cases and

equipment, within the discretion of the grocery store retail

permit holder, if the displays are not designed to attract

minors and the manner and method of display allows access by all

customers, including the physically dependent.

(i) Grocery store retail permit holders may not charge a

membership fee in order for customers to make purchases from the

grocery store.

(j) A grocery store retail 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 wine. A grocery store retail permit holder may not

sell or share data from the use of a transaction scan device,

20150HB1690PN2653 - 33 -

provided that the grocery store retail permit holder may use the

data to show the enforcement bureau of the board that the permit

holder 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).

(k) A sale of wine shall be made through a register which is

well designated with signage, which is staffed at all times,

which is staffed by a sales clerk who is at least eighteen years

of age (18) and has been trained under section 471.1 and which

utilizes a transaction scan device for the sale. The sale of

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

the customer's own purchases.

(l) Grocery store retail permit holders may store alcohol in

a storage area or storage areas not accessible to the public,

provided such storage areas are:

(1) locked at all times when not being accessed by the

grocery store retail permit holder's employees;

(2) not accessible to employees eighteen years of age (18)

or younger; and

(3) identified by dimensions and location on forms submitted

in advance to the board.

(m) Grocery store retail permit holders may sell wine from

eight o'clock antemeridian until eleven o'clock postmeridian

every day except Sunday.

(n) Grocery store retail permit holders may sell wine from

nine o'clock antemeridian until eleven o'clock postmeridian on

Sundays upon submission to the board of a Sunday sales permit

application and fee of one thousand five hundred dollars

20150HB1690PN2653 - 34 -

($1,500) per year.

(o) Grocery store retail permit holders shall be permitted

to hold:

(1) Tastings at any location in the grocery store, if the

tastings are in compliance with the provisions and regulations

regarding tastings held on restaurant licensed premises.

(2) Educational classes, including cooking classes, how-to

classes, seminars and similar classes, regarding the proper or

recommended use, consumption, identification, pairing,

appellation, aging, storage, characteristics, service,

presentation and similar subjects, of the alcohol products that

the grocery store permit holder offers for sale, during which

the incidental consumption of alcohol by registered participants

of lawful age shall be permitted. The classes may be free of

charge to participants or may be at a fee.

(p) Grocery store retail permit holders shall be permitted

to hold restaurant licenses issued for areas within the same

building for which the grocery store retail permit has been

issued or for a different building. Grocery store retail permits

and restaurant licenses issued for areas within the same grocery

stores may be issued for areas that are adjacent, abutting and

contiguous and the board shall approve interior connections

between the areas. If a grocery store retail permit and a

restaurant license are issued for the same grocery store, wine

may only be sold for off-premises consumption in the area

licensed for grocery store retail sales.

(q) Grocery store retail permit holders may not sell wine at

a price less than the wine's underlying cost.

(r) All fees paid to the board under this section shall be

deposited into the General Fund.

20150HB1690PN2653 - 35 -

(s) A grocery store retail permit holder selling wine and

liquor for off-premises consumption shall be considered a

Pennsylvania Liquor Store for purposes of collecting and

remitting taxes under Article II of the act of March 4, 1971

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

(r) For the purposes of this section, the term "liquor"

shall not include wine.

Section 6 2. Section 431(b) of the act, amended December 8,

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

Section 431. Malt and Brewed Beverages Manufacturers',

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

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

applies therefor, and pays the license fee hereinafter

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

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

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

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

original containers containing one hundred twenty-eight ounces

or more which may be sold separately as prepared for the market

by the manufacturer at the place of manufacture. The board shall

have the discretion to refuse a license to any person or to any

corporation, partnership or association if such person, or any

officer or director of such corporation, or any member or

partner of such partnership or association shall have been

convicted or found guilty of a felony within a period of five

years immediately preceding the date of application for the said

license: And provided further, That, in the case of any new

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

board may, in its discretion, grant or refuse such new license

or transfer if such place proposed to be licensed is within

20150HB1690PN2653 - 36 -

<--

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 shall not license the area

where liquid fuels or oil is sold. No sales of liquid fuels or

oil may be made from a licensee's licensed premises. A licensed

premises may not have an interior connection with a location

that sells liquid fuels or oils unless it first receives

permission from the board for the interior connection. The

approval shall be required regardless of whether the licensee or

another party is the entity selling the liquid fuels or oils.

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

20150HB1690PN2653 - 37 -

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. If the holder of a

distributor or importing distributor license has applied for and

received a wine or liquor enhanced permit pursuant to section

416, that distributor or importing distributor may sell liquor

on the same premises where malt or brewed beverages are sold. In

the case of an importing distributor, the holder of such a

license shall be authorized to store and repackage malt or

brewed beverages owned by a manufacturer at a segregated portion

of a warehouse or other storage facility authorized by section

441(d) and operated by the importing distributor within its

20150HB1690PN2653 - 38 -

<--

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

licensed premises are not located within the geographical area

20150HB1690PN2653 - 39 -

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

granted to the primary importing distributor by the

20150HB1690PN2653 - 40 -

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 6.1 3. Section 432(d) of the act, amended January 6,

2006 (P.L.1, No.1), is amended and the section is amended by

adding a subsection to read:

Section 432. Malt and Brewed Beverages Retail Licenses.--* *

(d) The board shall, in its discretion, grant or refuse any

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

the extension of an existing license to cover an additional area

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, transfer or extension

is applied for a place which is within two hundred feet of any

other premises which is licensed by the board. The board shall

refuse any application for a new license, the transfer of any

license to a new location or the extension of an existing

license to cover an additional area if, in the board's opinion,

such new license, transfer or extension 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

to be licensed. The board may enter into an agreement with the

20150HB1690PN2653 - 41 -

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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 refuse any

application for a new license, the transfer of any license to a

location where the sale of liquid fuels or oil is conducted or

the extension of an existing license to cover an additional

area] The board shall not license the area where liquid fuels or

oil is sold. No sales of liquid fuels or oil may be made from a

licensee's licensed premises. A licensed premises may not have

an interior connection with a location that sells liquid fuels

or oils unless it first receives permission from the board for

the interior connection. The approval shall be required

regardless of whether the licensee or another party is the

entity selling the liquid fuels or oils: And provided further,

That 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

20150HB1690PN2653 - 42 -

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. The board may, in its discretion, refuse an

application for an economic development license under section

461(b.1) or an application for an intermunicipal transfer or a

license if the board receives a protest from the governing body

of the receiving municipality. The receiving municipality of an

intermunicipal transfer or an economic development license under

section 461(b.1) may file a protest against the approval for

issuance of a license for economic development or an

intermunicipal transfer of a license into its municipality, and

such municipality shall have standing in a hearing to present

testimony in support of or against the issuance or transfer of a

license. Upon any opening in any quota, an application for a new

license shall only be filed with the board for a period of six

months following said opening.

* * *

(g) The board may, in a municipality which has approved the

granting of liquor licenses, issue to a retail dispenser

licensee a restaurant liquor license in exchange for the retail

dispenser's retail dispenser license.

(1) An applicant under this subsection shall surrender his

or her retail dispenser license for cancellation prior to the

issuance of the new restaurant liquor license.

(2) An applicant under this subsection shall file an

application for a restaurant liquor license and shall post

notice of the application as provided under section 403. In

determining whether the exchange shall be granted, the board

shall have the same discretion as provided under section 404 for

20150HB1690PN2653 - 43 -

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a new license.

(3) The provisions of section 461 pertaining to a quota

shall not apply to this section for exchange purposes.

(4) The board shall charge a one-time upgrade fee of not

more than thirty thousand dollars ($30,000).

Section 7. Sections 436(e) and 437(e) of the act are amended

to read:

Section 436. Application for Distributors', Importing

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

distributors', importing distributors' and retail dispensers'

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

premises not then licensed or to another person, shall contain

or have attached thereto the following information and

statements:

* * *

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

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

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

in any manner pecuniarily interested, either directly or

indirectly, in the profits of any other class of business

regulated under this article, except as hereinafter permitted.

The requirements of this section shall not prohibit a

distributor or importing distributor from holding a wine or

liquor enhanced permit pursuant to section 416.

* * *

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

* *

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

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

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

20150HB1690PN2653 - 44 -

brewed beverages. The requirements of this section shall not

prohibit a distributor or importing distributor from holding a

wine or liquor enhanced permit pursuant to section 416.

* * *

Section 8. Section 443(b) of the act, amended May 31, 1996

(P.L.312, No.49), is amended to read:

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

(b) No distributor or importing distributor and no officer

or director of any distributor or importing distributor shall at

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

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

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

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

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

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

The requirements of this section may not prohibit a distributor

or importing distributor from holding a wine or liquor enhanced

permit pursuant to section 416.

* * *

Section 8.1 4. Section 468(a)(3) of the act, amended

December 20, 2000 (P.L.992, No.141), is amended to read:

Section 468. Licenses Not Assignable; Transfers.--(a) * * *

[(3) No license shall be transferred to any place or

property upon which is located as a business the sale of liquid

fuels and oil. Except in cases of emergency such as death,

serious illness, or circumstances beyond the control of the

licensee, as the board may determine such circumstances to

justify its action, transfers of licenses may be made only at

times fixed by the board. In the case of the death of a

licensee, the board may transfer the license to the surviving

20150HB1690PN2653 - 45 -

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spouse or personal representative or to a person designated by

him. From any refusal to grant a transfer or upon the grant of

any transfer, the party aggrieved shall have the right of appeal

to the proper court in the manner hereinbefore provided.]

* * *

Section 9 5. Section 474.1(b), (c) and (g) of the act,

amended November 29, 2006 (P.L.1421, No.155), are amended to

read:

Section 474.1. Surrender of Restaurant, Eating Place Retail

Dispenser, Hotel, Importing Distributor and Distributor License

for Benefit of Licensee.--* * *

(b) The board may hold the license in safekeeping for a

period not to exceed [three] two consecutive years. Any license

remaining in safekeeping for more than [three] two consecutive

years shall be immediately revoked by the Bureau of Licensing

unless a transfer application or request for reissue from

safekeeping has been filed prior to the expiration of the

[three-year] two-year period or unless the board has approved a

request to extend the safekeeping for an additional year as set

forth in subsection (g). In addition, the board shall extend the

period for an additional year if, at the end of the [three-year]

two-year period, the licensed premises are unavailable due to

fire, flood or other similar natural disaster; no further

extension beyond one additional year shall be granted by the

board regardless of whether the licensed premises are

unavailable due to fire, flood or other similar natural disaster

unless an application is made as set forth in subsection (g).

expiration of the [three-year] two-year period is disapproved by

the board, then the license may remain in safekeeping so long as

20150HB1690PN2653 - 46 -

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the licensee has submitted and the board has approved a request

to extend the safekeeping for an additional year as set forth in

subsection (g). Such request must be submitted within thirty

days of the board's decision notwithstanding any appeal filed in

the matter; however, the fee set forth in subsection (g) shall

be refunded if the board's decision is overturned.

* * *

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

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

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

written request must be accompanied by a [five thousand dollar

($5,000)] ten thousand dollar ($10,000) fee for licenses placed

in safekeeping from counties of the first class, second class,

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

thousand five hundred dollars ($2,500)] five thousand dollars

($5,000) for licenses placed in safekeeping from counties of the

fifth through eighth classes. For each subsequent year in

safekeeping, the fees set forth in this paragraph shall be

doubled over the amount charged for the previous year's fee. No

fee shall be required if the licensee can prove that he or she

is unable to use the license through no fault of his or her own,

including a fire, flood or other event that renders the licensed

premises unusable. The board shall approve the request unless

the license or licensee no longer meets the requirements of this

act or the board's regulations. The fee collected shall be paid

into the State Treasury through the Department of Revenue into

the State Store Fund.

[(2) A licensee whose license remains in safekeeping after

the expiration of an approved additional one-year period may

submit a written request for additional one-year periods;

20150HB1690PN2653 - 47 -

however, each such request must be accompanied by a five

thousand dollar ($5,000) fee for licenses placed in safekeeping

from counties of the first class, second class, second class A,

third class and fourth class and a fee of two thousand five

hundred dollars ($2,500) for licenses placed in safekeeping from

counties of the fifth through eighth classes.]

Section 10. Section 492(12), (13) and (14) of the act,

amended December 22, 2011 (P.L.530, No.113), are amended to

read:

Section 492. Unlawful Acts Relative to Malt or Brewed

Beverages and Licensees.--

It shall be unlawful--

* * *

(12) Distributors and Importing Distributors Engaging in

Other Business. For any distributor or importing distributor, or

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

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

engage in any other business whatsoever, except the business of

distributing malt or brewed beverages, except that the sale of

the following goods shall be permitted on the licensed premises

of a distributor or importing distributor:

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

or brewed beverages.

(ii) Any equipment, ingredients or other supplies necessary

for the unlicensed manufacture of malt or brewed beverages as

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

(iii) If the holder of a distributor or importing

distributor license acquires a wine or liquor enhanced permit

pursuant to section 416 for use at its licensed premises, it may

engage in the sale of wine or liquor, so long as the licensee

20150HB1690PN2653 - 48 -

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meets all of the requirements of this act.

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

Licensees. For any distributor, importing distributor or retail

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

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

or in any place contiguous or adjacent thereto accessible to the

public or used in connection with the operation of the licensed

premises, any alcohol or liquor. This section shall not prohibit

a licensed distributor or importing distributor that holds a

wine or liquor enhanced permit issued pursuant to section 416

from possessing or permitting the storage of wine or liquor on

the licensed premises used in connection with the operation of

the licensed premises.

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

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

distributor or importing distributor that holds a wine or liquor

enhanced permit, manufacturer, or the servants, agents or

employes thereof, to manufacture, import, sell, transport,

store, trade or barter in any liquor or alcohol.

* * *

Section 11. The act is amended by adding sections to read:

Section 1002. Transition Assistance Committee.-- (a) The

following shall apply to the transition assistance committee:

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

General Services shall designate individuals to serve on a

committee for the purpose of managing the staffing transition

and displacement of employees during the divestiture process.

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

representative from the department, shall involve the

participation of the Office of Administration, the Civil Service

20150HB1690PN2653 - 49 -

Commission, the Department of Labor and Industry and the board's

Bureau of Human Resources, to ensure a coordinated approach to

allocating personnel and assisting displaced employees during

the transition to find an appropriate position.

(3) The department shall contract with advisors necessary to

assist the department and the board in administering the duties

under paragraph (2). The contracts shall not be subject to the

provisions of 62 Pa.C.S. Ch. 5 (relating to source selection and

contract formation).

(b) The committee shall coordinate with the Office of

Administration to provide counseling and other general

assistance to employees of the board who are displaced to

transition the employees to other employment in either the

public or private sector.

and sections 1003, 1004, 1005 and 1006 shall be transferred from

the State Stores Fund.

Section 1003. Preference in Public Employment Hiring.--(a)

The following shall apply to civil service examinations:

(1) A displaced employee who successfully passes a civil

service appointment examination shall be marked or graded an

additional three points above the mark or grade credited for the

examination if all of the following apply:

(i) The examination is for a paid position administered

under the act of August 5, 1941 (P.L.752, No.286), known as the

Civil Service Act, and in the classified service existing under

the commission's jurisdiction.

(ii) The employee establishes the qualifications required by

law for appointment to the position.

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

20150HB1690PN2653 - 50 -

paragraph (1), obtained by the displaced employee shall

represent the final mark or grade of the employee and shall

determine the employee's standing on any eligibility list

certified or furnished to the appointing power.

(3) The three additional points awarded under paragraph (1)

shall be in addition to any points that shall be afforded to a

veteran meeting the requirements of 51 Pa.C.S. § 7103 (relating

to additional points in grading civil service examinations).

(b) The commission shall require the board to certify a list

of displaced employees under subsection (a). Placement on the

list by the board shall establish eligibility for the preference

granted under subsection (a).

service examination, a displaced employee, possessing the

requisite qualifications and who is eligible for appointment to

a paid State position in offices under the Governor's

jurisdiction within the executive branch shall be given a

preference in the appointment by the appointing authority over

nonveteran candidates.

(d) (Reserved).

(e) The following shall apply:

(1) A displaced employee's eligibility for the markup

provided under subsection (a) and for the preference for

noncivil service positions provided under subsection (c) shall

cease upon the occurrence of one of the following:

(i) The displaced employee's appointment or hiring into a

position in the classified service existing under the

commission's jurisdiction or into a paid State position where no

civil service examination is required.

(ii) Four years from the effective date of this section.

20150HB1690PN2653 - 51 -

(2) In order to be eligible for the markup provided under

subsection (a) and for the preference for noncivil service

positions provided under subsection (c), a displaced worker must

be terminated as a sole and direct result of the decision to

cease wholesale and retail operations under this section and

sections 1004, 1005 and 1006, and must work until the final day

set by the board for that employee's job function.

Section 1004. Career Training and Post-secondary Education

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

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

an institution of higher education, including career training

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

date of displacement from State service in the following amount:

(1) two thousand dollars ($2,000) per year for attendance on

a full-time basis; or

(2) one thousand dollars ($1,000) per year for attendance on

a part-time basis.

(b) The board shall certify the list of displaced employees

to the Pennsylvania Higher Education Assistance Agency.

eligibility and shall pay the grant directly to the institution

of higher education attended by the displaced employee in a

manner consistent with the Pennsylvania Higher Education

Assistance Agency's regulations.

Section 1005. Reemployment Tax Credit.--(a) The following

shall apply:

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

reemployment tax credit voucher in the amount of two thousand

dollars ($2,000) per taxable year.

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

20150HB1690PN2653 - 52 -

to each displaced employee upon termination of employment.

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

the board before the voucher is provided to the displaced

employee.

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

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

been provided.

(b) An employer in this Commonwealth who employs a displaced

employee on a full-time basis may, upon transfer of the voucher

from the employee to the employer, use the voucher as a credit

against the State tax liability of the employer, if the employer

can demonstrate the following:

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

displaced from the board within 12 months of being employed by

the employer.

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

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

period not less than one year.

Department of Revenue with the information required under

subsection (b)(1) and (2) to claim a tax credit against the

employer's liability for a tax identified under subsection (d)

(2).

(d) The following shall apply:

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

job filled by a displaced employee of two thousand dollars

($2,000) per taxable year for a maximum of two taxable years.

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

100% of the employer's:

(i) State corporate net income tax, capital stock and

20150HB1690PN2653 - 53 -

franchise tax or the personal tax of a shareholder of the

company if the company is a Pennsylvania S corporation.

(ii) Insurance premiums tax, gross receipts tax, bank and

trust company shares tax, mutual thrift institutions tax or

title insurance companies shares tax.

(iii) Any combination of the taxes under subparagraphs (i)

and (ii).

(3) A displaced employee whose subsequent employment is

terminated with an employer and who has utilized the

reemployment tax credit voucher to claim a one-year two thousand

dollar ($2,000) tax credit may transfer the voucher to a new

employer who may use the remaining two thousand dollar ($2,000)

tax credit as a claim against the employer's tax liability for

taxes identified under paragraph (2).

(4) The term of the reemployment tax credit voucher may not

exceed two years from the date the voucher is provided to the

qualified displaced employee.

Section 1006. Protection of Existing Benefits.--(a) Nothing

under this section shall be deemed to affect:

(1) Pension benefits accrued prior to the date of separation

occurring as a sole and direct result of the divestiture of the

board's wholesale and retail operations under this article.

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

a preexisting collective bargaining agreement payable upon

separation from employment.

(b) As a result of the preferential hiring benefits, the tax

credit for subsequent employers and the protection of benefits

arising from an employee's pension or from a preexisting

collective bargaining agreement under this section, the board

shall be deemed to have satisfied all obligations to bargain

20150HB1690PN2653 - 54 -

over the impact of the decision to cease wholesale and retail

operations under this article which may arise under the act of

July 23, 1970 (P.L.563, No.195), known as the Public Employe

Relations Act.

1004 and 1005 supersedes a local regulation, ordinance or

resolution of a political subdivision regarding notice to

displaced workers.

Section 12. The regulations of the board at 40 Pa. Code §§

3.52 and 3.53 are abrogated to the extent of any inconsistency

with this act.

Section 13 6. This act shall take effect in 60 days.

SECTION 1. THE DEFINITIONS OF "ALCOHOL," "ALCOHOLIC CIDER,"

"DENATURED ALCOHOL," "DIRECT SHIPPER," "ELIGIBLE ENTITY,"

"HOLIDAY," "LIQUOR" AND "PERFORMING ARTS FACILITIES" 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 FEBRUARY 21, 2002 (P.L.103, NO.10),

DECEMBER 8, 2004 (P.L.1810, NO.239), JUNE 25, 2010 (P.L.217,

NO.35) AND JULY 5, 2012 (P.L.1007, NO.116), 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:

"ALCOHOL" SHALL MEAN ETHYL ALCOHOL OF ANY DEGREE OF PROOF

ORIGINALLY PRODUCED BY THE DISTILLATION OF ANY FERMENTED LIQUID,

WHETHER RECTIFIED OR DILUTED WITH OR WITHOUT WATER, WHATEVER MAY

BE THE ORIGIN THEREOF, AND SHALL INCLUDE POWDERED ALCOHOL AND

SYNTHETIC ETHYL ALCOHOL, BUT SHALL NOT MEAN OR INCLUDE ETHYL

ALCOHOL, WHETHER OR NOT DILUTED, THAT HAS BEEN DENATURED OR

20150HB1690PN2653 - 55 -

<--

OTHERWISE RENDERED UNFIT FOR BEVERAGE PURPOSES.

"ALCOHOLIC CIDER" SHALL MEAN A BEVERAGE WHICH MAY CONTAIN

CARBONATION IN AN AMOUNT NOT TO EXCEED THREE HUNDRED NINETY-TWO

ONE THOUSANDTHS OF A GRAM PER ONE HUNDRED MILLILITERS AND

FLAVORS, PRODUCED THROUGH ALCOHOLIC FERMENTATION OF ANY FRUIT OR

FRUIT JUICE, CONSISTING OF AT LEAST ONE-HALF OF ONE PER CENTUM,

BUT NOT GREATER THAN [FIVE] EIGHT AND ONE-HALF PER CENTUM,

ALCOHOL BY VOLUME AND SOLD OR OFFERED FOR SALE AS ALCOHOLIC

CIDER AND NOT AS A WINE, A WINE PRODUCT OR AS A SUBSTITUTE FOR

WINE, IN BOTTLES, CASES, KEGS, CANS OR OTHER SUITABLE CONTAINERS

OF THE TYPE USED FOR THE SALE OF MALT OR BREWED BEVERAGES IN

THIS COMMONWEALTH.

* * *

"DENATURED ALCOHOL" SHALL MEAN AND INCLUDE ALL ALCOHOL OR ANY

COMPOUND THEREOF WHICH BY THE ADMIXTURE OF SUCH DENATURING

MATERIAL OR MATERIALS IS RENDERED UNFIT FOR USE AS A BEVERAGE.

THE TERM SHALL NOT INCLUDE POWDERED ALCOHOL.

* * *

"DIRECT WINE SHIPPER" SHALL MEAN A PERSON [OUTSIDE THIS

COMMONWEALTH WHO OBTAINS A LICENSE FROM] LICENSED AS A PRODUCER

OF WINE BY THE BOARD [TO ACCEPT] OR BY ANOTHER STATE OR COUNTRY

THAT ACCEPTS ORDERS PLACED FOR WINE FROM WITHIN THIS

COMMONWEALTH. [BY THE INTERNET AND WHO SHIPS OR FACILITATES IN

ANY WAY SHIPMENT OF WINE BY A DELIVERY AGENT OR COMMON CARRIER

TO A PENNSYLVANIA LIQUOR STORE.] THE TERM INCLUDES A LIMITED

WINERY.

* * *

"ELIGIBLE ENTITY" SHALL MEAN A CITY OF THE THIRD CLASS, A

HOSPITAL, A CHURCH, A SYNAGOGUE, A VOLUNTEER FIRE COMPANY, A

VOLUNTEER AMBULANCE COMPANY, A VOLUNTEER RESCUE SQUAD, A UNIT OF

20150HB1690PN2653 - 56 -

A NATIONALLY CHARTERED CLUB WHICH HAS BEEN ISSUED A CLUB LIQUOR

LICENSE, A CLUB WHICH HAS BEEN ISSUED A CLUB LIQUOR LICENSE AND

WHICH, AS OF DECEMBER 31, 2002, HAS BEEN IN EXISTENCE FOR AT

LEAST 100 YEARS, A LIBRARY, A NATIONALLY ACCREDITED PENNSYLVANIA

NONPROFIT ZOOLOGICAL INSTITUTION LICENSED BY THE UNITED STATES

DEPARTMENT OF AGRICULTURE, A NONPROFIT AGRICULTURAL ASSOCIATION

IN EXISTENCE FOR AT LEAST TEN YEARS, A BONA FIDE SPORTSMEN'S

CLUB IN EXISTENCE FOR AT LEAST TEN YEARS, A NATIONALLY CHARTERED

VETERANS' ORGANIZATION AND ANY AFFILIATED LODGE OR SUBDIVISION

OF SUCH ORGANIZATION, A FRATERNAL BENEFIT SOCIETY THAT IS

LICENSED TO DO BUSINESS IN THIS COMMONWEALTH AND ANY AFFILIATED

LODGE OR SUBDIVISION OF SUCH FRATERNAL BENEFIT SOCIETY, A MUSEUM

OPERATED BY A NONPROFIT CORPORATION, A NONPROFIT CORPORATION

ENGAGED IN THE PERFORMING ARTS, AN ARTS COUNCIL, A NONPROFIT

CORPORATION THAT OPERATES AN ARTS FACILITY OR MUSEUM, A

NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE

INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. §

501(C)(3)) WHOSE PURPOSE IS TO PROTECT THE ARCHITECTURAL

HERITAGE OF [BOROUGHS OR A TOWNSHIP OF THE SECOND CLASS] A

MUNICIPALITY AND WHICH HAS BEEN RECOGNIZED AS SUCH BY A

[MUNICIPAL] RESOLUTION OF THE MUNICIPALITY, A NONPROFIT

ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL

REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 501(C)(3))

CONDUCTING A REGATTA IN A CITY OF THE SECOND CLASS WITH THE

PERMIT TO BE USED ON STATE PARK GROUNDS OR CONDUCTING A FAMILY-

ORIENTED CELEBRATION AS PART OF WELCOME AMERICA IN A CITY OF THE

FIRST CLASS ON PROPERTY LEASED FROM THAT CITY FOR MORE THAN

FIFTY YEARS, A NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION

501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (26 U.S.C. §

501(C)(3)) WHOSE PURPOSE IS TO RAISE FUNDS FOR THE RESEARCH AND

20150HB1690PN2653 - 57 -

TREATMENT OF CYSTIC FIBROSIS, A NONPROFIT ORGANIZATION AS

DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF

1986 (26 U.S.C. § 501(C)(3)) WHOSE PURPOSE IS TO EDUCATE THE

PUBLIC ON ISSUES DEALING WITH WATERSHED CONSERVATION, A

NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE

INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. §

501(C)(3)) WHOSE PURPOSE IS TO PROVIDE EQUINE ASSISTED

ACTIVITIES FOR CHILDREN AND ADULTS WITH SPECIAL NEEDS, A

NONPROFIT ECONOMIC DEVELOPMENT AGENCY IN A CITY OF THE SECOND

CLASS WITH THE PRIMARY FUNCTION TO SERVE AS AN ECONOMIC

GENERATOR FOR THE GREATER SOUTHWESTERN PENNSYLVANIA REGION BY

ATTRACTING AND SUPPORTING FILM, TELEVISION AND RELATED MEDIA

INDUSTRY PROJECTS AND COORDINATING GOVERNMENT AND BUSINESS

OFFICES IN SUPPORT OF A PRODUCTION, A COUNTY TOURIST PROMOTION

AGENCY AS DEFINED IN SECTION [3(1)] 2 OF THE ACT OF [APRIL 28,

1961 (P.L.111, NO.50), KNOWN AS THE "TOURIST PROMOTION LAW,"]

JULY 4, 2008 (P.L.621, NO.50), KNOWN AS THE "TOURISM PROMOTION

ACT," A JUNIOR LEAGUE THAT IS A NONPROFIT ORGANIZATION AS

DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF

1986 (26 U.S.C. § 501(C)(3)) THAT IS COMPRISED OF WOMEN WHOSE

PURPOSE IS EXCLUSIVELY EDUCATIONAL AND CHARITABLE IN PROMOTING

THE VOLUNTEERISM OF WOMEN AND DEVELOPING AND PARTICIPATING IN

COMMUNITY PROJECTS AND THAT HAS BEEN IN EXISTENCE FOR OVER

SEVENTY YEARS, A NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION

501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 AND WHOSE PURPOSE

IS THE EDUCATION AND PROMOTION OF AMERICAN HISTORY, A NONPROFIT

ORGANIZATION AS DEFINED UNDER SECTION 501(C)(6) OF THE INTERNAL

REVENUE CODE OF 1986 WHOSE PURPOSE IS TO SUPPORT BUSINESS AND

INDUSTRY, A BREWERY WHICH HAS BEEN ISSUED A LICENSE TO

MANUFACTURE MALT OR BREWED BEVERAGES AND HAS BEEN IN EXISTENCE

20150HB1690PN2653 - 58 -

FOR AT LEAST 100 YEARS OR A CLUB RECOGNIZED BY ROTARY

INTERNATIONAL AND WHOSE PURPOSE IS TO PROVIDE SERVICE TO OTHERS,

TO PROMOTE HIGH ETHICAL STANDARDS AND TO ADVANCE WORLD

UNDERSTANDING, GOODWILL AND PEACE THROUGH ITS FELLOWSHIP OF

BUSINESS, PROFESSIONAL AND COMMUNITY LEADERS OR A NONPROFIT

ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL

REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 501(C)(3))

WHOSE PURPOSE IS TO PROMOTE MUSHROOMS WHILE SUPPORTING LOCAL AND

REGIONAL CHARITIES, A MUSEUM OPERATED BY A NOT-FOR-PROFIT

CORPORATION IN A CITY OF THE SECOND CLASS A, A NONPROFIT

ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL

REVENUE CODE OF 1986 WHICH IS LOCATED IN A CITY OF THE SECOND

CLASS A AND HAS AS ITS PURPOSE ECONOMIC AND COMMUNITY

DEVELOPMENT, A NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION

501(C)(3) OR (6) OF THE INTERNAL REVENUE CODE OF 1986 THAT IS

LOCATED IN A CITY OF THE THIRD CLASS IN A COUNTY OF THE FIFTH

CLASS, A NONPROFIT SOCIAL SERVICE ORGANIZATION DEFINED UNDER

SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 LOCATED

IN A COUNTY OF THE THIRD CLASS WHOSE PURPOSE IS TO SERVE

INDIVIDUALS AND FAMILIES IN THAT COUNTY OF THE THIRD CLASS, A

NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE

INTERNAL REVENUE CODE OF 1986 WHOSE MAIN PURPOSE IS TO

TEMPORARILY FOSTER STRAY AND UNWANTED ANIMALS AND MATCH THEM TO

SUITABLE PERMANENT HOMES OR A NONPROFIT ORGANIZATION AS DEFINED

UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 WHO

OPERATES EITHER A MAIN STREET PROGRAM OR ELM STREET PROGRAM

RECOGNIZED BY THE COMMONWEALTH, THE NATIONAL TRUST FOR HISTORIC

PRESERVATION OR BOTH, A NONPROFIT RADIO STATION THAT IS A MEMBER

OF THE NATIONAL PUBLIC RADIO NETWORK, A NONPROFIT PUBLIC

TELEVISION STATION THAT IS A MEMBER OF THE PENNSYLVANIA PUBLIC

20150HB1690PN2653 - 59 -

TELEVISION NETWORK OR A NONPROFIT ORGANIZATION AS DEFINED UNDER

SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 WHOSE

PURPOSE IS TO PROMOTE AWARENESS, EDUCATION AND RESEARCH AND TO

PROVIDE A SUPPORT SYSTEM FOR PATIENTS WITH NEUTROPENIA AND THEIR

FAMILIES THROUGH A NATIONAL RESOURCE NETWORK[.], A NONPROFIT

ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL

REVENUE CODE OF 1986 WHOSE MAIN PURPOSE IS TO STIMULATE

COMMUNITY DEVELOPMENT BY FACILITATING RESIDENTIAL AND RETAIL

GROWTH IN A CITY OF THE SECOND CLASS LOCATED IN A COUNTY OF THE

SECOND CLASS OR A NONPROFIT COMMUNITY DEVELOPMENT CORPORATION

ORGANIZED UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE

OF 1986 THAT SERVES AN ADJOINING BOROUGH AND TOWNSHIP IN A

COUNTY OF THE SECOND CLASS AND WHOSE MAIN PURPOSE IS TO

FACILITATE COMMERCIAL DEVELOPMENT AND FOSTER NEIGHBORHOOD

STABILIZATION, A NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION

501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 WHOSE PURPOSE IS

TO PROVIDE YOUNG PEOPLE WITH A PROGRAM TO BUILD CHARACTER, TO

TEACH THE RESPONSIBILITIES OF CITIZENSHIP AND TO DEVELOP

PERSONAL FITNESS WITH A GOAL OF CREATING FUTURE LEADERS, A

NONPROFIT AS DEFINED IN SECTION 501(C)(3) OF THE INTERNAL

REVENUE CODE OF 1986 WHOSE MAIN PURPOSE IS TO ASSIST CHILDREN

AND THEIR FAMILIES WHO ARE FACING FINANCIAL HARDSHIP DUE TO THE

DEATH OF A PARENT, A NONPROFIT AS DEFINED UNDER SECTION 501(C)

(3) OF THE INTERNAL REVENUE CODE OF 1986 WHOSE PURPOSE IS TO

ALLOCATE FUNDS FOR RESEARCH TO EXPEDITE A CURE ACHROMATOPSIA, A

NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE

INTERNAL REVENUE CODE OF 1986 THAT IS LOCATED IN A CITY OF THE

FIRST CLASS, WAS ORGANIZED IN 1995 AS A COMMUNITY DEVELOPMENT

CORPORATION TO PROMOTE HEALTH, SAFETY AND WELFARE OF THE

RESIDENTS, BUSINESSES AND INSTITUTIONS OF A NEIGHBORHOOD OF A

20150HB1690PN2653 - 60 -

CITY OF THE FIRST CLASS, AND WHOSE WORKS INCLUDE PUBLIC

PROMOTIONS, NEIGHBORHOOD IMPROVEMENT PROJECTS AND COMMERCIAL

CORRIDOR IMPROVEMENTS, INCLUDING A BUSINESS IMPROVEMENT DISTRICT

OR A NONPROFIT ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3)

OF THE INTERNAL REVENUE CODE OF 1986 THAT IS RESPONSIBLE FOR

PROVIDING SERVICES TO MEMBERS OF THE ARMED FORCES OF THE UNITED

STATES AND RELIEF TO DISASTER VICTIMS IN THE UNITED STATES AND

ABROAD OR ANY NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT

ASSOCIATION AS DEFINED IN SECTION 3 OF THE ACT OF DECEMBER 20,

2000 (P.L.949, NO.130), KNOWN AS THE "NEIGHBORHOOD IMPROVEMENT

DISTRICT ACT," THAT HAS BEEN ESTABLISHED AS A 501(C)(3)

NONPROFIT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL

REVENUE CODE OF 1986, A NONPROFIT ORGANIZATION AS DEFINED UNDER

SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 LOCATED

IN A CITY OF THE FIRST CLASS WHOSE PURPOSE IS TO SUPPORT

INITIATIVES TO ENRICH THE LIVES OF CHILDREN, TEENS AND FAMILIES

ESPECIALLY THOSE IN NEED, TO REACH THEIR FULL POTENTIAL AS

PRODUCTIVE AND RESPONSIBLE CITIZENS AND HAS BEEN IN EXISTENCE

FOR AT LEAST SEVENTY-FIVE YEARS.

* * *

["HOLIDAY" SHALL MEAN THE FIRST DAY OF JANUARY, COMMONLY

KNOWN AS NEW YEAR'S DAY; THE THIRD MONDAY OF JANUARY, KNOWN AS

DR. MARTIN LUTHER KING, JR., DAY; THE THIRD MONDAY IN FEBRUARY,

KNOWN AS PRESIDENTS' DAY; THE LAST MONDAY IN MAY, KNOWN AS

MEMORIAL DAY; THE FOURTH DAY OF JULY, KNOWN AS INDEPENDENCE DAY;

THE FIRST MONDAY OF SEPTEMBER, KNOWN AS LABOR DAY; THE FOURTH

THURSDAY IN NOVEMBER, KNOWN AS THANKSGIVING DAY; AND THE TWENTY-

FIFTH DAY OF DECEMBER, KNOWN AS CHRISTMAS DAY.]

* * *

"INSTITUTION OF HIGHER EDUCATION" SHALL MEAN ANY OF THE

20150HB1690PN2653 - 61 -

FOLLOWING:

(1) A COMMUNITY COLLEGE OPERATING UNDER ARTICLE XIX-A OF THE

ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN AS THE PUBLIC

SCHOOL CODE OF 1949.

(2) A UNIVERSITY WITHIN THE STATE SYSTEM OF HIGHER

EDUCATION.

(3) THE PENNSYLVANIA STATE UNIVERSITY.

(4) THE UNIVERSITY OF PITTSBURGH.

(5) TEMPLE UNIVERSITY.

(6) LINCOLN UNIVERSITY.

(7) ANY OTHER INSTITUTION THAT IS DESIGNATED AS STATE-

RELATED BY THE COMMONWEALTH.

(8) ANY ACCREDITED PRIVATE OR INDEPENDENT COLLEGE OR

UNIVERSITY.

* * *

"LIQUOR" SHALL MEAN AND INCLUDE ANY ALCOHOLIC, SPIRITUOUS,

VINOUS, FERMENTED OR OTHER ALCOHOLIC BEVERAGE, POWDERED ALCOHOL,

OR COMBINATION OF LIQUORS AND MIXED LIQUOR A PART OF WHICH IS

SPIRITUOUS, VINOUS, FERMENTED OR OTHERWISE ALCOHOLIC, INCLUDING

ALL DRINKS OR DRINKABLE LIQUIDS, PREPARATIONS OR MIXTURES, AND

REUSED, RECOVERED OR REDISTILLED DENATURED ALCOHOL USABLE OR

TAXABLE FOR BEVERAGE PURPOSES WHICH CONTAIN MORE THAN ONE-HALF

OF ONE PER CENT OF ALCOHOL BY VOLUME, EXCEPT PURE ETHYL ALCOHOL

AND MALT OR BREWED BEVERAGES.

* * *

"MUG CLUB" SHALL MEAN A GROUP ORGANIZED BY A RETAIL LICENSEE

OR A BREWERY WHOSE MEMBERS ARE ENTITLED TO DISCOUNTED MALT OR

BREWED BEVERAGES. MEMBERSHIP SHALL BE BY WRITTEN APPLICATION AND

THE LICENSEE MUST MAINTAIN A WRITTEN LIST OF ACTIVE MEMBERS AS

PART OF ITS RECORDS. MEMBERS SHALL PAY AN ANNUAL FEE AS WELL AS

20150HB1690PN2653 - 62 -

A RENEWAL FEE AS SET BY LICENSEE. MEMBERSHIP SHALL, AT A

MINIMUM, ENTITLE THE MEMBER TO A MUG, GLASS OR SIMILAR CONTAINER

AND SAID CONTAINER MUST BE USED WHEN THE MEMBER IS SERVED ANY

DISCOUNTED MALT OR BREWED BEVERAGES. NO DISCOUNTED MALT OR

BREWED BEVERAGES MAY BE PROVIDED BETWEEN MIDNIGHT AND SEVEN O'

CLOCK ANTEMERIDIAN.

* * *

"PERFORMING ARTS FACILITIES" SHALL MEAN THOSE HALLS OR

THEATERS IN WHICH LIVE MUSICAL, CONCERT, DANCE, BALLET AND

LEGITIMATE PLAY BOOK-LENGTH PRODUCTIONS ARE PERFORMED.

PERFORMING ARTS FACILITIES SHALL NOT MEAN THOSE HALLS OR

THEATERS IN WHICH BURLESQUE SHOWS OR REVIEWS ARE PERFORMED. IF

THE OPERATOR OF THE PERFORMING ARTS FACILITY IS A NONPROFIT

ENTITY, THE FACILITY MUST HAVE SEATING FOR AT LEAST [TWO HUNDRED

FIFTY (250)] ONE HUNDRED FIFTY (150) PEOPLE; OTHERWISE, THE

FACILITY MUST HAVE SEATING FOR AT LEAST TWENTY-FIVE HUNDRED

(2,500) PEOPLE.

* * *

"POWDERED ALCOHOL" SHALL MEAN ALCOHOL SOLD IN A POWDER FORM

FOR EITHER DIRECT USE OR RECONSTITUTION.

* * *

"PRIVATE LABEL" SHALL MEAN A PRODUCT MADE UNDER CONTRACT BY A

MANUFACTURER OR THE MANUFACTURER'S AGENT FOR THE EXCLUSIVE RIGHT

OF A RETAILER.

* * *

SECTION 2. SECTION 207(B) OF THE ACT, AMENDED NOVEMBER 30,

2004 (P.L.1727, NO.221) AND DECEMBER 8, 2004 (P.L.1810, NO.239),

IS AMENDED AND THE SECTION IS AMENDED BY ADDING SUBSECTIONS TO

READ:

SECTION 207. GENERAL POWERS OF BOARD.--UNDER THIS ACT, THE

20150HB1690PN2653 - 63 -

BOARD SHALL HAVE THE POWER AND ITS DUTY SHALL BE:

* * *

(B) THE FOLLOWING SHALL APPLY:

(1) 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]

(2) EXCEPT AS PROVIDED IN PARAGRAPHS (3) AND (4), 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.] MAY INCLUDE A HANDLING FEE. THIS

PROPORTIONAL PRICING PROVISION SHALL NOT APPLY TO SPECIAL LIQUOR

ORDERS AUTHORIZED UNDER SECTION 305(A).

(3) THE BOARD MAY PRICE ITS BEST-SELLING ITEMS AND LIMITED

PURCHASE ITEMS IN A MANNER THAT MAXIMIZES THE RETURN ON THE SALE

OF THOSE ITEMS.

(4) THE BOARD MAY DISCOUNT THE PRICE OF DISCONTINUED ITEMS.

(5) ALL PRICES OF A PARTICULAR PRODUCT IDENTIFICATION NUMBER

SHALL BE UNIFORM THROUGHOUT THE COMMONWEALTH. 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.

(6) ON A QUARTERLY BASIS THE BOARD SHALL PUBLISH A LISTING

OF THE WHOLESALE AND PENNSYLVANIA LIQUOR STORE RETAIL PRICES ON

ITS PUBLICLY ACCESSIBLE INTERNET WEBSITE.

(7) NO LATER THAN APRIL 1ST OF EACH YEAR THE BOARD SHALL

SUBMIT AN ANNUAL WRITTEN REPORT TO THE LAW AND JUSTICE COMMITTEE

20150HB1690PN2653 - 64 -

OF THE SENATE AND THE LIQUOR CONTROL COMMITTEE OF THE HOUSE OF

REPRESENTATIVES. THE REPORT SHALL CONTAIN INFORMATION RELATED TO

THE METHOD AND RATIONALE FOR PRICING PRODUCTS.

(8) NO LATER THAN JUNE 1ST OF EACH YEAR, THE BOARD SHALL

APPEAR BEFORE THE LAW AND JUSTICE COMMITTEE OF THE SENATE AND

THE LIQUOR CONTROL COMMITTEE OF THE HOUSE OF REPRESENTATIVES TO

PROVIDE TESTIMONY IN RELATION TO ITS ANNUAL WRITTEN REPORT UNDER

PARAGRAPH (7).

(9) THE BOARD SHALL REQUIRE EACH PENNSYLVANIA MANUFACTURER

AND EACH NONRESIDENT MANUFACTURER OF LIQUORS, OTHER THAN WINE,

SELLING SUCH LIQUORS TO THE BOARD, WHICH ARE NOT MANUFACTURED IN

THIS COMMONWEALTH, TO MAKE APPLICATION FOR AND BE GRANTED A

PERMIT BY THE BOARD BEFORE SUCH LIQUORS NOT MANUFACTURED IN THIS

COMMONWEALTH SHALL BE PURCHASED FROM SUCH MANUFACTURER. EACH

SUCH MANUFACTURER SHALL PAY FOR SUCH PERMIT A FEE WHICH, IN THE

CASE OF A MANUFACTURER OF THIS COMMONWEALTH, SHALL BE EQUAL TO

THAT REQUIRED TO BE PAID, IF ANY, BY A MANUFACTURER OR

WHOLESALER OF THE STATE, TERRITORY OR COUNTRY OF ORIGIN OF THE

LIQUORS, FOR SELLING LIQUORS MANUFACTURED IN PENNSYLVANIA, AND

IN THE CASE OF A NONRESIDENT MANUFACTURER, SHALL BE EQUAL TO

THAT REQUIRED TO BE PAID, IF ANY, IN SUCH STATE, TERRITORY OR

COUNTRY BY PENNSYLVANIA MANUFACTURERS DOING BUSINESS IN SUCH

STATE, TERRITORY OR COUNTRY. IN THE EVENT THAT ANY SUCH

MANUFACTURER SHALL, IN THE OPINION OF THE BOARD, SELL OR ATTEMPT

TO SELL LIQUORS TO THE BOARD THROUGH ANOTHER PERSON FOR THE

PURPOSE OF EVADING THIS PROVISION RELATING TO PERMITS, THE BOARD

SHALL REQUIRE SUCH PERSON, BEFORE PURCHASING LIQUORS FROM HIM OR

IT, TO TAKE OUT A PERMIT AND PAY THE SAME FEE AS HEREINBEFORE

REQUIRED TO BE PAID BY SUCH MANUFACTURER. ALL PERMIT FEES SO

COLLECTED SHALL BE PAID INTO THE STATE STORES FUND. THE BOARD

20150HB1690PN2653 - 65 -

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. THE BOARD MAY NOT SELL

PRIVATE LABEL PRODUCTS. A PENNSYLVANIA LIQUOR STORE MAY CONTINUE

TO SELL PRIVATE LABEL PRODUCTS WITHIN ITS INVENTORY AFTER THE

EFFECTIVE DATE OF THIS SECTION UNTIL THE PRIVATE LABEL PRODUCTS

WITHIN ITS CURRENT INVENTORY ARE DEPLETED.

(10) THE PROPORTIONAL PRICING UNDER PARAGRAPH (2) SHALL NOT

APPLY TO SPECIAL LIQUOR ORDERS AUTHORIZED UNDER SECTION 305(A).

(11) AS USED IN THIS SUBSECTION, THE FOLLOWING WORDS AND

PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS PARAGRAPH:

"BEST-SELLING ITEMS" SHALL MEAN THE ONE HUNDRED FIFTY (150)

MOST SOLD PRODUCT IDENTIFICATION NUMBERS OF WINE AND THE ONE

HUNDRED FIFTY (150) MOST SOLD PRODUCT IDENTIFICATION NUMBERS OF

LIQUOR AS MEASURED BY THE TOTAL NUMBER OF UNITS SOLD ON A SIX-

MONTH BASIS CALCULATED EVERY JANUARY 1 AND JULY 1.

"DISCONTINUED ITEMS" SHALL MEAN THOSE PRODUCT IDENTIFICATION

NUMBERS THAT THE BOARD HAS VOTED TO DELIST AT A PUBLIC MEETING.

"LIMITED PURCHASE ITEMS" SHALL MEAN THOSE PRODUCT

IDENTIFICATION NUMBERS THAT THE BOARD PURCHASES ON EITHER A ONE-

TIME OR NONRECURRING BASIS DUE TO THE PRODUCT'S LIMITED

AVAILABILITY OR FINITE ALLOCATION.

"PRODUCT IDENTIFICATION NUMBER" SHALL MEAN THE STOCK KEEPING

UNIT (SKU) OR A SUCCESSOR METHOD OF IDENTIFYING SPECIFIC

PRODUCTS.

* * *

(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),

20150HB1690PN2653 - 66 -

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. NOTWITHSTANDING

ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE BOARD MAY PAY

THE HOLDER OF A WINNING TICKET UP TO AN AMOUNT THAT SHALL BE

ESTABLISHED JOINTLY BY THE BOARD AND THE DEPARTMENT OF REVENUE.

ALL PROCEEDS RETAINED BY THE BOARD AS COMPENSATION FOR THE SALE

OF TICKETS, INCLUDING INCENTIVE AWARDS OR BONUSES, AS WELL AS

CREDIT FOR DIRECT PAYMENT OF PRIZES, SHALL BE DEPOSITED INTO THE

GENERAL FUND.

(M) NOTWITHSTANDING SUBSECTION (B), 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, TO UNLICENSED CUSTOMERS OF THE BOARD.

(N) NOTWITHSTANDING THE ACT OF , (P.L. , NO. ),

KNOWN AS THE TAXPAYER-FUNDED ADVERTISING TRANSPARENCY ACT, ANY

EXPENDITURE FOR MEDIA ADVERTISING MADE BY THE BOARD SHALL NOT BE

SUBJECT TO ANY REQUIREMENT THAT THE MEDIA ADVERTISING INCLUDE

ANY STATEMENT IDENTIFYING THE FUND FROM WHICH THE EXPENDITURE

WAS MADE, NOR ANY STATEMENT THAT THE MEDIA ADVERTISING WAS PAID

FOR WITH PENNSYLVANIA TAXPAYER DOLLARS.

SECTION 2.1. 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

20150HB1690PN2653 - 67 -

SHALL BE OPEN FOR SUNDAY RETAIL SALES BETWEEN THE HOURS OF NOON

AND FIVE 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 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.] PENNSYLVANIA LIQUOR STORES, INCLUDING

ONLINE STORES, SHALL BE OPEN ON THE HOURS AND DAYS THAT THE

BOARD DEEMS APPROPRIATE.

SECTION 3. SECTION 305(A) AND (B) OF THE ACT, AMENDED MAY 8,

2003 (P.L.1, NO.1) AND JULY 6, 2005 (P.L.135, NO.39), ARE

AMENDED AND THE SECTION IS AMENDED BY ADDING SUBSECTIONS TO

READ:

SECTION 305. SALES BY PENNSYLVANIA LIQUOR STORES.--(A) THE

BOARD SHALL IN ITS DISCRETION DETERMINE WHERE AND WHAT CLASSES,

VARIETIES AND BRANDS OF LIQUOR AND ALCOHOL IT SHALL MAKE

AVAILABLE TO THE PUBLIC AND WHERE SUCH LIQUOR AND ALCOHOL WILL

BE SOLD. EVERY PENNSYLVANIA LIQUOR STORE SHALL BE AUTHORIZED TO

SELL COMBINATION PACKAGES. IF A PERSON DESIRES TO PURCHASE A

CLASS, VARIETY OR BRAND OF LIQUOR OR ALCOHOL NOT CURRENTLY

AVAILABLE FROM THE BOARD, HE OR SHE MAY PLACE A SPECIAL ORDER

FOR SUCH ITEM SO LONG AS THE ORDER IS FOR TWO OR MORE BOTTLES.

THE BOARD MAY REQUIRE A REASONABLE DEPOSIT FROM THE PURCHASER AS

A CONDITION FOR ACCEPTING THE ORDER. THE CUSTOMER SHALL BE

NOTIFIED IMMEDIATELY UPON THE ARRIVAL OF THE GOODS.

IN COMPUTING THE RETAIL PRICE OF SUCH SPECIAL ORDERS FOR

LIQUOR OR ALCOHOL, THE BOARD SHALL NOT INCLUDE THE COST OF

20150HB1690PN2653 - 68 -

FREIGHT OR SHIPPING BEFORE APPLYING [THE] A MARK-UP THAT IS

EQUAL TO TEN PER CENTUM OF THE COST OF THE PRODUCT AND TAXES BUT

SHALL ADD THE FREIGHT OR SHIPPING CHARGES TO THE PRICE AFTER THE

MARK-UP AND TAXES HAVE BEEN APPLIED. IN ADDITION TO THE TEN PER

CENTUM MARK-UP, THE BOARD SHALL IMPOSE HANDLING FEES ON SPECIAL

ORDERS WHICH COME TO REST AT A STORE, IN THE SAME MANNER THAT IT

IMPOSES THEM ON THE OTHER ALCOHOL THAT IT SELLS.

A LICENSED IMPORTER OR A LICENSED VENDOR MAY PLACE SPECIAL

ORDERS ON BEHALF OF CUSTOMERS AND MAY DELIVER THE ORDERS TO

CUSTOMERS. THE ORDERS DO NOT NEED TO COME TO REST AT A STORE,

BUT DELIVERY MAY NOT OCCUR UNTIL PAYMENT FOR THE ORDER HAS BEEN

FORWARDED TO THE BOARD AND THE BOARD HAS AUTHORIZED THE DELIVERY

OF THE ORDER. A HANDLING FEE MAY NOT BE ASSESSED BY THE BOARD ON

AN ORDER DELIVERED DIRECTLY TO A CUSTOMER. LIABILITY FOR SPECIAL

ORDERS THAT DO NOT COME TO REST AT A STORE, SHALL, UNTIL THE

ORDER IS DELIVERED TO THE CUSTOMER, REMAIN WITH THE LICENSED

IMPORTER OR LICENSED VENDOR THAT PLACED THE ORDER ON BEHALF OF

THE CUSTOMER. THE BOARD SHALL, BY JANUARY 1, 2017, IMPLEMENT A

PROCEDURE FOR PROCESSING SPECIAL ORDERS WHICH DO NOT COME TO

REST AT A STORE. THE BOARD MAY CONTINUE TO ACCEPT SPECIAL ORDERS

AT ITS STORES EVEN AFTER THE PROCEDURE IS IMPLEMENTED.

UNLESS THE CUSTOMER PAYS FOR AND ACCEPTS DELIVERY OF ANY SUCH

SPECIAL ORDER WITHIN TEN DAYS AFTER NOTICE OF ARRIVAL, THE STORE

MAY PLACE IT IN STOCK FOR GENERAL SALE AND THE CUSTOMER'S

DEPOSIT SHALL BE FORFEITED.

(A.1) THE BOARD MAY REFUSE TO PROCESS A SPECIAL ORDER AND

PRECLUDE A VENDOR OR IMPORTER FROM PROCESSING A SPECIAL ORDER,

IF IT APPEARS THAT THE SPECIAL ORDER IS FOR AN ITEM

SUBSTANTIALLY SIMILAR TO AN ITEM THAT IS ON THE MONTHLY LIST THE

BOARD PUBLISHES UNDER SECTION 488(C) OR IF THE BOARD BELIEVES

20150HB1690PN2653 - 69 -

THAT DEMAND FOR THE ITEM IS SUCH THAT IT SHOULD BE MADE

AVAILABLE GENERALLY. IF THE PROCESSING OF A SPECIAL ORDER IS

REFUSED OR PRECLUDED UNDER THIS SUBSECTION, THE ITEM SHALL BE

MADE AVAILABLE THROUGH THE BOARD IN THE AMOUNT AND MANNER THE

BOARD DEEMS APPROPRIATE.

(B) EVERY PENNSYLVANIA LIQUOR STORE SHALL SELL LIQUORS AT

WHOLESALE TO HOTELS, RESTAURANTS, CLUBS, AND RAILROAD, PULLMAN

AND STEAMSHIP COMPANIES LICENSED UNDER THIS ACT; AND, UNDER THE

REGULATIONS OF THE BOARD, TO PHARMACISTS DULY LICENSED AND

REGISTERED UNDER THE LAWS OF THE COMMONWEALTH, AND TO

MANUFACTURING PHARMACISTS, AND TO REPUTABLE HOSPITALS APPROVED

BY THE BOARD, OR CHEMISTS. SALES TO LICENSEES SHALL BE MADE AT A

PRICE THAT INCLUDES A DISCOUNT OF TEN PER CENTUM FROM THE RETAIL

PRICE[.]; EXCEPT THAT SPECIAL ORDER SALES TO LICENSEES

AUTHORIZED IN SECTION 305(A) SHALL NOT BE SUBJECT TO THE TEN PER

CENTUM DISCOUNT. 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 UNDER SECTIONS

207(M) AND 493(24)(II)(B). 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

20150HB1690PN2653 - 70 -

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.

(B.1) THE BOARD MAY CONTRACT WITH A LICENSED TRANSPORTER FOR

HIRE THROUGH THE COMMONWEALTH BIDDING PROCESS FOR DELIVERY TO

RETAIL LICENSEES AND PERMIT HOLDERS AT THE EXPENSE OF THE

LICENSEE OR PERMIT HOLDER RECEIVING DELIVERY. PAYMENT SHALL BE

BY CREDIT CARD OR ELECTRONIC FUND TRANSFER ONLY AND MAY OCCUR NO

LATER THAN THE TIME OF DELIVERY.

* * *

(J) A PENNSYLVANIA LIQUOR STORE MAY CONTINUE TO SELL

ALCOHOLIC CIDER WITHIN THE PENNSYLVANIA LIQUOR STORE'S INVENTORY

AFTER THE EFFECTIVE DATE OF THIS SECTION UNTIL THE ALCOHOLIC

CIDER WITHIN THE PENNSYLVANIA LIQUOR STORE'S CURRENT INVENTORY

IS DEPLETED. THE BOARD MAY NOT PURCHASE ADDITIONAL ALCOHOLIC

CIDER AFTER THE EFFECTIVE DATE OF THIS SECTION.

(K) NOTWITHSTANDING THE PROVISIONS OF THE ACT OF AUGUST 26,

1971 (P.L.351, NO.91), KNOWN AS THE "STATE LOTTERY LAW," THE

FOLLOWING SHALL APPLY IF THE BOARD BECOMES A LICENSED LOTTERY

SALES AGENT, AS SET FORTH IN SECTION 305 OF THE STATE LOTTERY

LAW:

(1) 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

20150HB1690PN2653 - 71 -

AGREE UPON THE NUMBER AND LOCATION OF THE STORES AUTHORIZED TO

CONDUCT SELF-SERVICE SALES OF LOTTERY TICKETS AND GAMES.

(2) THE BOARD SHALL NOT BE REQUIRED TO POST ANY TYPE OF BOND

PRIOR TO CONDUCTING SELF-SERVICE SALES OF LOTTERY TICKETS AND

GAMES.

(3) 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 GENERAL FUND.

SECTION 3.1. 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 LICENSEES APPLYING FOR A

VALID WINE EXPANDED PERMIT UNDER SECTION 415.

SECTION 4. SECTION 404 OF THE ACT, AMENDED JANUARY 6, 2006

(P.L.1, NO.1), IS AMENDED TO READ:

SECTION 404. ISSUANCE, TRANSFER OR EXTENSION OF HOTEL,

RESTAURANT AND CLUB LIQUOR LICENSES.--(A) UPON RECEIPT OF THE

APPLICATION AND THE PROPER FEES, AND UPON BEING SATISFIED OF THE

TRUTH OF THE STATEMENTS IN THE APPLICATION THAT THE APPLICANT

[IS] AND MANAGEMENT COMPANY OR COMPANIES, IF ANY, ARE THE ONLY

[PERSON] PERSONS IN ANY MANNER PECUNIARILY INTERESTED IN THE

BUSINESS SO ASKED TO BE LICENSED AND THAT NO OTHER PERSON WILL

BE IN ANY MANNER PECUNIARILY INTERESTED THEREIN DURING THE

CONTINUANCE OF THE LICENSE, EXCEPT AS HEREINAFTER PERMITTED, AND

THAT THE APPLICANT IS A PERSON OF GOOD REPUTE, THAT THE PREMISES

APPLIED FOR MEET ALL THE REQUIREMENTS OF THIS ACT AND THE

REGULATIONS OF THE BOARD, THAT THE APPLICANT SEEKS A LICENSE FOR

A HOTEL, RESTAURANT OR CLUB, AS DEFINED IN THIS ACT, AND THAT

THE ISSUANCE OF SUCH LICENSE IS NOT PROHIBITED BY ANY OF THE

20150HB1690PN2653 - 72 -

PROVISIONS OF THIS ACT, THE BOARD SHALL, IN THE CASE OF A HOTEL

OR RESTAURANT, GRANT AND ISSUE TO THE APPLICANT A LIQUOR

LICENSE, AND IN THE CASE OF A CLUB MAY, IN ITS DISCRETION, ISSUE

OR REFUSE A LICENSE: PROVIDED, HOWEVER, THAT IN THE CASE OF ANY

NEW LICENSE OR THE TRANSFER OF ANY LICENSE TO A NEW LOCATION OR

THE EXTENSION OF AN EXISTING LICENSE TO COVER AN ADDITIONAL AREA

THE BOARD MAY, IN ITS DISCRETION, GRANT OR REFUSE SUCH NEW

LICENSE, TRANSFER OR EXTENSION 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, TRANSFER OR EXTENSION 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'S

AUTHORITY TO REFUSE TO GRANT A LICENSE BECAUSE OF ITS PROXIMITY

TO A CHURCH, HOSPITAL, CHARITABLE INSTITUTION, PUBLIC PLAYGROUND

OR OTHER LICENSED PREMISES SHALL NOT BE APPLICABLE TO LICENSE

APPLICATIONS SUBMITTED FOR PUBLIC VENUES OR PERFORMING ARTS

FACILITIES: AND PROVIDED FURTHER, THAT THE BOARD SHALL REFUSE

ANY APPLICATION FOR A NEW LICENSE, THE TRANSFER OF ANY LICENSE

TO A NEW LOCATION OR THE EXTENSION OF AN EXISTING LICENSE TO

COVER AN ADDITIONAL AREA IF, IN THE BOARD'S OPINION, SUCH NEW

LICENSE, TRANSFER OR EXTENSION 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: AND PROVIDED FURTHER, THAT 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

20150HB1690PN2653 - 73 -

YEARS IMMEDIATELY PRECEDING THE DATE OF APPLICATION FOR THE SAID

LICENSE. [THE BOARD SHALL REFUSE ANY APPLICATION FOR A NEW

LICENSE, THE TRANSFER OF ANY LICENSE TO A NEW LOCATION OR THE

EXTENSION OF ANY LICENSE TO COVER AN ADDITIONAL AREA WHERE THE

SALE OF LIQUID FUELS OR OIL IS CONDUCTED.] THE BOARD SHALL NOT

LICENSE THE AREA WHERE LIQUID FUELS OR OIL IS SOLD. NO SALES OF

LIQUID FUELS OR OIL MAY BE MADE FROM A LICENSEE'S LICENSED

PREMISES. A LICENSED PREMISES MAY NOT HAVE AN INTERIOR

CONNECTION WITH A LOCATION THAT SELLS LIQUID FUELS OR OILS

UNLESS IT FIRST RECEIVES PERMISSION FROM THE BOARD FOR THE

INTERIOR CONNECTION. THE APPROVAL SHALL BE REQUIRED REGARDLESS

OF WHETHER THE LICENSEE OR ANOTHER PARTY IS THE ENTITY SELLING

THE LIQUID FUELS OR OILS. 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 MAY, IN ITS DISCRETION,

REFUSE AN APPLICATION FOR AN ECONOMIC DEVELOPMENT LICENSE UNDER

20150HB1690PN2653 - 74 -

SECTION 461(B.1) OR AN APPLICATION FOR AN INTERMUNICIPAL

TRANSFER OF A LICENSE IF THE BOARD RECEIVES A PROTEST FROM THE

GOVERNING BODY OF THE RECEIVING MUNICIPALITY. THE RECEIVING

MUNICIPALITY OF AN INTERMUNICIPAL TRANSFER OR AN ECONOMIC

DEVELOPMENT LICENSE UNDER SECTION 461(B.1) MAY FILE A PROTEST

AGAINST THE TRANSFER OF A LICENSE INTO ITS MUNICIPALITY, AND THE

RECEIVING MUNICIPALITY SHALL HAVE STANDING IN A HEARING TO

PRESENT TESTIMONY IN SUPPORT OF OR AGAINST THE ISSUANCE OR

TRANSFER OF A LICENSE. UPON ANY OPENING IN ANY QUOTA, AN

APPLICATION FOR A NEW LICENSE SHALL ONLY BE FILED WITH THE BOARD

FOR A PERIOD OF SIX MONTHS FOLLOWING SAID OPENING.

(B) IF THE APPLICANT INTENDS TO USE A MANAGEMENT COMPANY TO

OPERATE, MANAGE OR SUPERVISE ALL OR PART OF THE OPERATION OF THE

LICENSED PREMISES, THE LICENSEE MUST FILE A WRITTEN APPLICATION

WITH THE BOARD ON A FORM OR FORMS AS THE BOARD SHALL, FROM TIME

TO TIME PRESCRIBE. THE APPLICATION SHALL BE ACCOMPANIED BY A FEE

IN AN AMOUNT DETERMINED BY THE BOARD. THE BOARD SHALL REFUSE THE

APPLICATION IF THE MANAGEMENT COMPANY OR ANY PERSON INVOLVED

WITH THE MANAGEMENT COMPANY WOULD BE PRECLUDED FROM HOLDING AN

INTEREST IN THE UNDERLYING LICENSE.

SECTION 5. SECTION 406(A), (F) AND (G) OF THE ACT, AMENDED

JULY 6, 2005 (P.L.135, NO.39), DECEMBER 22, 2011 (P.L.530,

NO.113) AND JULY 5, 2012 (P.L.1007, NO.116), ARE AMENDED AND THE

SECTION IS AMENDED BY ADDING SUBSECTIONS TO READ:

SECTION 406. SALES BY LIQUOR LICENSEES; RESTRICTIONS.--(A)

(1) EVERY HOTEL, RESTAURANT OR CLUB LIQUOR LICENSEE MAY SELL

LIQUOR AND MALT OR BREWED BEVERAGES BY THE GLASS, OPEN BOTTLE OR

OTHER CONTAINER, AND IN ANY MIXTURE, FOR CONSUMPTION ONLY IN

THAT PART OF THE HOTEL OR RESTAURANT HABITUALLY USED FOR THE

SERVING OF FOOD TO GUESTS OR PATRONS, OR IN A BOWLING ALLEY THAT

20150HB1690PN2653 - 75 -

IS IMMEDIATELY ADJACENT TO AND UNDER THE SAME ROOF AS A

RESTAURANT, AND IN THE CASE OF HOTELS, TO GUESTS, AND IN THE

CASE OF CLUBS, TO MEMBERS, IN THEIR PRIVATE ROOMS IN THE HOTEL

OR CLUB. NO CLUB LICENSEE NOR ITS OFFICERS, SERVANTS, AGENTS OR

EMPLOYES, OTHER THAN ONE HOLDING A CATERING LICENSE, SHALL SELL

ANY LIQUOR OR MALT OR BREWED BEVERAGES TO ANY PERSON EXCEPT A

MEMBER OF THE CLUB. THE HOLDER OF A RESTAURANT LICENSE LOCATED

IN A HOTEL MAY SELL LIQUOR OR MALT OR BREWED BEVERAGES FOR

CONSUMPTION IN THAT PART OF THE RESTAURANT HABITUALLY USED FOR

THE SERVING OF MEALS TO PATRONS AND ALSO TO GUESTS IN PRIVATE

GUEST ROOMS IN THE HOTEL. FOR THE PURPOSE OF THIS PARAGRAPH, ANY

PERSON WHO IS AN ACTIVE MEMBER OF ANOTHER CLUB WHICH IS

CHARTERED BY THE SAME STATE OR NATIONAL ORGANIZATION SHALL HAVE

THE SAME RIGHTS AND PRIVILEGES AS MEMBERS OF THE PARTICULAR

CLUB. FOR THE PURPOSE OF THIS PARAGRAPH, ANY PERSON WHO IS AN

ACTIVE MEMBER OF ANY VOLUNTEER FIREFIGHTING COMPANY, ASSOCIATION

OR GROUP OF THIS COMMONWEALTH, WHETHER INCORPORATED OR

UNINCORPORATED, SHALL UPON THE APPROVAL OF ANY CLUB COMPOSED OF

VOLUNTEER FIREMEN LICENSED UNDER THIS ACT, HAVE THE SAME SOCIAL

RIGHTS AND PRIVILEGES AS MEMBERS OF SUCH LICENSED CLUB. FOR THE

PURPOSES OF THIS PARAGRAPH, THE TERM "ACTIVE MEMBER" SHALL NOT

INCLUDE A SOCIAL MEMBER. ANY CLUB LICENSEE WHICH IS EITHER AN

INCORPORATED UNIT OF A NATIONAL VETERANS' ORGANIZATION OR AN

AFFILIATED ORGANIZATION AS DEFINED IN SECTION 461.1 SHALL BE

PERMITTED TO SELL LIQUOR OR MALT OR BREWED BEVERAGES TO ANY

ACTIVE MEMBER OF ANOTHER UNIT WHICH IS CHARTERED BY THE SAME

NATIONAL VETERANS' ORGANIZATION OR TO ANY MEMBER OF A NATIONALLY

CHARTERED AUXILIARY ASSOCIATED WITH THE SAME NATIONAL VETERANS'

ORGANIZATION.

(2) HOTEL AND RESTAURANT LIQUOR LICENSEES, [AIRPORT

20150HB1690PN2653 - 76 -

RESTAURANT LIQUOR LICENSEES,] MUNICIPAL GOLF COURSE RESTAURANT

LIQUOR LICENSEES AND PRIVATELY-OWNED PUBLIC GOLF COURSE

RESTAURANT LICENSEES MAY SELL LIQUOR AND MALT OR BREWED

BEVERAGES ONLY AFTER SEVEN O'CLOCK ANTEMERIDIAN OF ANY DAY UNTIL

TWO O'CLOCK ANTEMERIDIAN OF THE FOLLOWING DAY, EXCEPT SUNDAY,

AND EXCEPT AS HEREINAFTER PROVIDED, MAY SELL LIQUOR AND MALT OR

BREWED BEVERAGES ON SUNDAY BETWEEN THE HOURS OF TWELVE O'CLOCK

MIDNIGHT AND TWO O'CLOCK ANTEMERIDIAN.

(2.1) AIRPORT RESTAURANT LIQUOR LICENSEES MAY SELL LIQUOR

AND MALT OR BREWED BEVERAGES ONLY AFTER FIVE O'CLOCK

ANTEMERIDIAN OF ANY DAY AND UNTIL TWO O'CLOCK ANTEMERIDIAN OF

THE FOLLOWING DAY.

(3) HOTEL AND RESTAURANT LIQUOR LICENSEES, MUNICIPAL GOLF

COURSE RESTAURANT LIQUOR LICENSEES AND PRIVATELY-OWNED PUBLIC

GOLF COURSE RESTAURANT LICENSEES MAY SELL LIQUOR AND MALT OR

BREWED BEVERAGES ON SUNDAY BETWEEN THE HOURS OF ELEVEN O'CLOCK

ANTEMERIDIAN AND TWO O'CLOCK ANTEMERIDIAN MONDAY UPON PURCHASE

OF A SPECIAL PERMIT FROM THE BOARD AT AN ANNUAL FEE AS

PRESCRIBED IN SECTION 614-A OF THE ACT OF APRIL 9, 1929

(P.L.177, NO.175), KNOWN AS "THE ADMINISTRATIVE CODE OF 1929."

NOTWITHSTANDING THIS PROVISION, A LICENSEE HOLDING SUCH A PERMIT

MAY BEGIN SELLING LIQUOR AND MALT OR BREWED BEVERAGES ON SUNDAY

BETWEEN THE HOURS OF NINE O'CLOCK ANTEMERIDIAN AND ELEVEN

O'CLOCK ANTEMERIDIAN PROVIDED THAT THE LICENSEE OFFERS A MEAL

BEGINNING AT NINE O'CLOCK ANTEMERIDIAN. AIRPORT RESTAURANT

LIQUOR LICENSEES MAY SELL LIQUOR AND MALT OR BREWED BEVERAGES ON

SUNDAY BETWEEN THE HOURS OF [SEVEN] FIVE O'CLOCK ANTEMERIDIAN

AND TWO O'CLOCK ANTEMERIDIAN MONDAY UPON PURCHASE OF A SPECIAL

PERMIT FROM THE BOARD AT AN ANNUAL FEE AS PRESCRIBED IN SECTION

614-A OF THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS

20150HB1690PN2653 - 77 -

"THE ADMINISTRATIVE CODE OF 1929."

(4) HOTEL AND RESTAURANT LIQUOR LICENSEES, [AIRPORT

RESTAURANT LIQUOR LICENSEES,] MUNICIPAL GOLF COURSE RESTAURANT

LIQUOR LICENSEES AND PRIVATELY-OWNED PUBLIC GOLF COURSE

RESTAURANT LICENSEES WHICH DO NOT QUALIFY FOR AND PURCHASE SUCH

SPECIAL PERMIT, THEIR SERVANTS, AGENTS OR EMPLOYES MAY SELL

LIQUOR AND MALT OR BREWED BEVERAGES ONLY AFTER SEVEN O'CLOCK

ANTEMERIDIAN OF ANY DAY AND UNTIL TWO O'CLOCK ANTEMERIDIAN OF

THE FOLLOWING DAY, AND SHALL NOT SELL AFTER TWO O'CLOCK

ANTEMERIDIAN ON SUNDAY. NO CLUB LICENSEE OR ITS SERVANTS, AGENTS

OR EMPLOYES MAY SELL LIQUOR OR MALT OR BREWED BEVERAGES BETWEEN

THE HOURS OF THREE O'CLOCK ANTEMERIDIAN AND SEVEN O'CLOCK

ANTEMERIDIAN ON ANY DAY. NO PUBLIC SERVICE LIQUOR LICENSEE OR

ITS SERVANTS, AGENTS, OR EMPLOYES MAY SELL LIQUOR OR MALT OR

BREWED BEVERAGES BETWEEN THE HOURS OF TWO O'CLOCK ANTEMERIDIAN

AND SEVEN O'CLOCK ANTEMERIDIAN ON ANY DAY.

(6) NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY, WHENEVER

THE THIRTY-FIRST DAY OF DECEMBER FALLS ON A SUNDAY, EVERY HOTEL

OR RESTAURANT LIQUOR LICENSEE, THEIR SERVANTS, AGENTS OR

EMPLOYES MAY SELL LIQUOR AND MALT OR BREWED BEVERAGES ON ANY

SUCH DAY AFTER ONE O'CLOCK POSTMERIDIAN AND UNTIL TWO O'CLOCK

ANTEMERIDIAN OF THE FOLLOWING DAY.

(6.1) NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY,

WHENEVER SAINT PATRICK'S DAY FALLS ON A SUNDAY, EVERY HOTEL OR

RESTAURANT LIQUOR LICENSEE, THEIR SERVANTS, AGENTS OR EMPLOYES

MAY SELL LIQUOR AND MALT OR BREWED BEVERAGES ON ANY SUCH DAY

AFTER SEVEN O'CLOCK ANTEMERIDIAN AND UNTIL TWO O'CLOCK

ANTEMERIDIAN OF THE FOLLOWING DAY.

(7) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, IF

GROUNDHOG DAY FALLS ON A SUNDAY, A HOTEL OR RESTAURANT LICENSEE

20150HB1690PN2653 - 78 -

OR THE HOTEL OR RESTAURANT LICENSEE'S SERVANTS, AGENTS OR

EMPLOYES MAY SELL LIQUOR AND MALT OR BREWED BEVERAGES ON THAT

DAY AFTER SEVEN O'CLOCK ANTEMERIDIAN AND UNTIL TWO O'CLOCK

ANTEMERIDIAN OF THE FOLLOWING DAY.

* * *

(F) THE HOLDER OF A HOTEL OR RESTAURANT LIQUOR LICENSE MAY

OBTAIN AN OFF-PREMISES CATERING PERMIT SUBJECT TO SECTION

493(33) TO HOLD A CATERED FUNCTION OFF THE LICENSED PREMISES AND

ON OTHERWISE UNLICENSED PREMISES WHERE THE LICENSEE MAY SELL

WINE, LIQUOR AND MALT OR BREWED BEVERAGES BY THE GLASS, OPEN

BOTTLE OR OTHER CONTAINER, AND IN ANY MIXTURE TOGETHER WITH

FOOD, FOR CONSUMPTION ON THOSE PREMISES. FUNCTIONS CONDUCTED

UNDER THE AUTHORITY OF THE PERMIT SHALL BE SUBJECT TO THE

FOLLOWING:

(1) ALCOHOL MAY BE PROVIDED ONLY DURING THE DAYS AND HOURS

THAT THE LICENSE HOLDER MAY OTHERWISE SELL ALCOHOL;

(2) ALL SERVERS AT THE OFF PREMISES CATERED FUNCTION SHALL

BE IN COMPLIANCE WITH THE RESPONSIBLE ALCOHOL MANAGEMENT

PROVISIONS UNDER SECTION 471.1;

(3) EACH CATERED FUNCTION SHALL LAST NO LONGER THAN ONE DAY

AND NOT MORE THAN [FIFTY] FIFTY-TWO CATERED FUNCTIONS MAY BE

HELD EACH CALENDAR YEAR BY EACH LICENSE HOLDER FOR USE WITH A

PARTICULAR LICENSE;

(4) A CATERED FUNCTION SHALL NOT BE HELD AT A LOCATION THAT

IS ALREADY SUBJECT TO THE APPLICANT'S OR ANOTHER LICENSEE'S

LICENSE;

(5) A PERMIT SHALL NOT BE ISSUED TO AN APPLICANT WHOSE

LICENSE IS IN SAFEKEEPING;

(6) A PERMIT SHALL NOT BE ISSUED TO A LOCATION THAT IS

SUBJECT TO A PENDING OBJECTION BY THE DIRECTOR OF THE BUREAU OF

20150HB1690PN2653 - 79 -

LICENSING OR THE BOARD UNDER SECTION 470(A.1);

(7) A PERMIT SHALL NOT BE ISSUED TO A LOCATION THAT IS

SUBJECT TO A PENDING LICENSE SUSPENSION UNDER SECTION 471 OR THE

ONE-YEAR PROHIBITION ON THE ISSUANCE OR TRANSFER OF A LICENSE

UNDER SECTION 471(B);

(8) NO ALCOHOL MAY BE TAKEN FROM THE PERMITTED LOCATION BY

ANY PATRON, BUT THE APPLICANT MAY TRANSPORT ALCOHOL TO AND FROM

ITS LICENSED PREMISES TO THE PROPOSED PREMISES;

(9) WRITTEN NOTICE OF THE CATERED FUNCTION AS ENUMERATED IN

PARAGRAPH (10) SHALL BE PROVIDED TO THE LOCAL POLICE AND THE

ENFORCEMENT BUREAU AT LEAST SEVEN DAYS IN ADVANCE OF THE EVENT;

(10) WRITTEN NOTICE SHALL BE PROVIDED TO THE BOARD AT LEAST

[THIRTY] FOURTEEN DAYS PRIOR TO A CATERED FUNCTION. WRITTEN

NOTICE MUST INCLUDE THE LOCATION OF THE FUNCTION, TIME OF THE

FUNCTION, HOST OF THE FUNCTION, GENERAL INFORMATION REGARDING

THE GUESTS EXPECTED AT THE FUNCTION AS WELL AS ANY INFORMATION

THE BOARD SHALL FROM TIME TO TIME PRESCRIBE. THE BOARD MAY, IN

ITS DISCRETION, ACCEPT NOTICE IN AN ELECTRONIC FORMAT. THE BOARD

MAY, IN ITS DISCRETION, WAIVE THE [THIRTY-DAY] FOURTEEN-DAY

NOTICE PERIOD FOR A CATERED FUNCTION IF:

(I) THE APPLICANT HAS PREVIOUSLY CONDUCTED FUNCTIONS THAT

MEET THE REQUIREMENTS OF THIS ACT;

(II) THE APPLICANT IS A LICENSEE IN GOOD STANDING WITH THE

BOARD;

(III) NOTIFICATION WAS RECEIVED AT LEAST [FOURTEEN] SEVEN

DAYS PRIOR TO THE CATERED FUNCTION; AND

(IV) THE APPLICANT PAYS A LATE FEE OF ONE HUNDRED DOLLARS

($100);

(11) THE BOARD SHALL, IN ITS DISCRETION, APPROVE OR

DISAPPROVE A CATERED FUNCTION IF THE APPLICANT FAILS TO PROVIDE

20150HB1690PN2653 - 80 -

TIMELY NOTICE OF THE CATERED FUNCTION, DOES NOT INTEND TO

CONDUCT A FUNCTION THAT MEETS THE REQUIREMENTS OF THIS ACT OR

HAS PREVIOUSLY CONDUCTED A FUNCTION THAT DID NOT MEET THE

REQUIREMENTS OF THIS ACT;

(12) IF A CATERED FUNCTION IS SCHEDULED TO OCCUR ON PRIVATE

PROPERTY, THE OWNER OF THAT PROPERTY IS DEEMED TO HAVE SUBMITTED

TO THE JURISDICTION OF THE ENFORCEMENT BUREAU, AND THE WARRANT

REQUIRED BY SECTION 211(A)(2) OF THIS ACT SHALL NOT BE NECESSARY

FOR THE ENFORCEMENT BUREAU TO ENTER AND SEARCH THE PREMISES

DURING THE FUNCTION OR ANY ACTIVITIES RELATED TO THE FUNCTION;

(13) NO CATERED FUNCTION MAY BE HELD FOR MORE THAN FIVE

HOURS PER DAY AND MUST END BY MIDNIGHT UNLESS THE CATERED

FUNCTION OCCURS ON DECEMBER 31 OF ANY CALENDAR YEAR ON WHICH

DATE THE CATERED FUNCTION MUST END BY TWO O'CLOCK ANTEMERIDIAN;

(14) NEITHER THE OWNER OF THE PROPERTY NOR THE APPLICANT MAY

SELL TICKETS TO A CATERED FUNCTION UNLESS ONE OF THE FOLLOWING

CONDITIONS IS MET:

(I) THE APPLICANT HAS CONTRACTED WITH AN ELIGIBLE ENTITY FOR

THE FUNCTION, AND THE FUNCTION IS BEING USED TO RAISE MONEY FOR

THE ELIGIBLE ENTITY'S ORGANIZATION;

(II) THE APPLICANT HAS CONTRACTED WITH A NONPROFIT

ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL

REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 501(C)(3)),

FOR AN EVENT WHICH HAS THE SOLE PURPOSE OF RAISING FUNDS FOR

THAT NONPROFIT ORGANIZATION; OR

(III) THE APPLICANT HAS CONTRACTED WITH AN ORGANIZATION THAT

HOLDS TAX-EXEMPT STATUS UNDER SECTION 527 OF THE INTERNAL

REVENUE CODE OF 1986;

(15) THE CATERED FUNCTION LOCATION SHALL BE SUBJECT TO

SECTION 493(34) OF THIS ACT;

20150HB1690PN2653 - 81 -

(16) CATERED FUNCTIONS MAY NOT BE HELD IN LOCATIONS THAT ARE

SUBJECT TO A PENDING, PROTESTED TRANSFER APPLICATION;

(17) A PERMIT MAY NOT BE ISSUED TO A LICENSE HOLDER WHOSE

LICENSE IS SUBJECT TO A PENDING OBJECTION BY THE DIRECTOR OF THE

BUREAU OF LICENSING OR THE BOARD UNDER SECTION 470(A.1);

(18) A PERMIT SHALL NOT BE ISSUED TO A LICENSEE FOR USE IN

ANY LOCATION THAT IS MOBILE; AND

(19) A PERMIT SHALL NOT BE ISSUED FOR USE ON ANY LOCATION

USED FOR PARKING AT A SPORTS EVENT OR CONCERT EVENT.

(G) NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR

REGULATION, THE HOLDER OF A RETAIL LICENSE MAY HOLD HAPPY HOURS

UP TO FOUR CONSECUTIVE OR NONCONSECUTIVE HOURS PER DAY AND UP TO

FOURTEEN HOURS PER WEEK DURING WHICH THE HOLDER DISCOUNTS THE

PRICE OF ALCOHOLIC BEVERAGES. NO DISCOUNTS MAY BE GIVEN BETWEEN

THE HOURS OF MIDNIGHT AND THE LEGAL CLOSING TIME. NOTICE OF ALL

HAPPY HOURS SHALL BE VISIBLY POSTED ON THE LICENSED PREMISES

SEVEN DAYS PRIOR TO THE HAPPY HOUR. EXCEPT AS PROVIDED IN THIS

SUBSECTION, A LICENSEE SHALL COMPLY WITH THE PROVISIONS OF 40

PA. CODE § 13.102 (RELATING TO DISCOUNT PRICING PRACTICES).

[EVENTS] NEITHER EVENTS CONDUCTED UNDER THE AUTHORITY OF 40 PA.

CODE § 13.102(B) NOR DISCOUNTS PROVIDED TO MUG CLUB MEMBERS

SHALL [NOT] BE COUNTED AGAINST THE FOUR-HOUR PER DAY OR

FOURTEEN-HOUR PER WEEK LIMIT.

(H) NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR

REGULATION, A CATERING CLUB LICENSEE MAY CATER A SELF-SPONSORED

EVENT NO MORE THAN TWELVE OCCASIONS DURING ITS LICENSED TERM

WITH NO MORE THAN ONE EVENT IN ANY CALENDAR MONTH.

(I) NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR

REGULATION, A CLUB THAT SANCTIONS OR SPONSORS AN EVENT BETWEEN

PARTICIPANTS OF ITS BONA FIDE MEMBERSHIP AND THE PARTICIPANTS

20150HB1690PN2653 - 82 -

FROM ANY LICENSED ENTITY MAY SELL ALCOHOL TO THOSE NONMEMBERS

PROVIDED THE FOLLOWING:

(1) THE EVENT IS SCHEDULED MORE THAN TWENTY-FOUR HOURS IN

ADVANCE; AND

(2) THE NONMEMBER PARTICIPANTS ARE LISTED ON A ROSTER OR

REGISTRATION LIST PROVIDED BY A LEAGUE, ORGANIZATION OR LICENSED

ENTITY PRIOR TO THE BEGINNING OF THE EVENT.

SECTION 6. SECTION 408.4(I) OF THE ACT, AMENDED JUNE 5, 2007

(P.L.11, NO.5), IS AMENDED TO READ:

SECTION 408.4. SPECIAL OCCASION PERMITS.--

* * *

(I) ONLY ONE SPECIAL OCCASION PERMIT SHALL BE ISSUED TO EACH

ELIGIBLE ENTITY PER CALENDAR YEAR. EACH PERMIT MAY ONLY BE USED

FOR SIX CONSECUTIVE OR NONCONSECUTIVE DAYS; OR TEN CONSECUTIVE

DAYS. [HOWEVER, IF THE ELIGIBLE ENTITY IS A MUSEUM OPERATED BY A

NONPROFIT CORPORATION IN A CITY OF THE THIRD CLASS OR TOWNSHIP

OF THE FIRST CLASS, A NONPROFIT CORPORATION ENGAGED IN THE

PERFORMING ARTS IN A CITY OF THE THIRD CLASS OR IN AN

INCORPORATED TOWN, A BONA FIDE SPORTSMEN'S CLUB IN EXISTENCE FR

AT LEAST TEN YEARS CONDUCTING A NATIONAL GOLF CHAMPIONSHIP OR AN

ARTS COUNCIL, THEN THE SPECIAL OCCASION PERMIT MAY BE USED FOR

SIX NONCONSECUTIVE OR TEN CONSECUTIVE DAYS.]

* * *

SECTION 7. SECTION 408.12(A) OF THE ACT, AMENDED JULY 16,

2007 (P.L.107, NO.34), IS AMENDED TO READ:

SECTION 408.12. WINE AUCTION PERMITS.--(A) UPON APPLICATION

OF:

(1) ANY NONPROFIT HOSPITAL;

(2) ANY NONPROFIT PUBLIC TELEVISION STATION WHICH IS A

MEMBER OF THE PENNSYLVANIA PUBLIC TELEVISION NETWORK;

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(3) ANY ORCHESTRA LOCATED IN A COUNTY OF THE FIRST, SECOND

OR THIRD CLASS WHICH IS OPERATED BY A NONPROFIT CORPORATION;

(4) ANY MUSEUM LOCATED IN A COUNTY OF THE FIRST, SECOND

[OR], THIRD OR FOURTH CLASS WHICH IS OPERATED BY A NONPROFIT

CORPORATION;

(5) ANY NONPROFIT CORPORATION LOCATED IN ANY COUNTY OF THE

THIRD CLASS WHICH TRAINS AND PLACES DOGS FOR PEOPLE WHO ARE

PHYSICALLY HANDICAPPED;

(6) ANY NATIONALLY RECOGNIZED COMMUNITY-BASED VOLUNTARY

HEALTH ORGANIZATION COMMITTED TO FIGHTING CANCER WHICH HAS BEEN

IN EXISTENCE FOR AT LEAST NINETY YEARS;

(7) ANY NATIONALLY RECOGNIZED EMERGENCY RESPONSE

ORGANIZATION THAT OFFERS HUMANITARIAN CARE TO VICTIMS OF WAR OR

NATURAL DISASTER AND HAS BEEN IN EXISTENCE FOR AT LEAST ONE

HUNDRED TWENTY-FIVE YEARS;

(8) ANY NATIONALLY RECOGNIZED ORGANIZATION WHOSE PURPOSE IS

TO SERVE AS AN AGENT TO COLLECT FUNDS FOR LOCAL CHARITIES, AS

WELL AS TO COORDINATE RELIEF SERVICES, COUNSEL AND REFER CLIENTS

TO COOPERATING AGENCIES AND MAKE EMERGENCY ASSISTANCE GRANTS AND

HAS BEEN IN EXISTENCE FOR AT LEAST ONE HUNDRED TWENTY YEARS;

[OR]

(9) ANY HOSPICE AS DEFINED UNDER SECTION 802.1 OF THE ACT OF

JULY 19, 1979 (P.L.130, NO.48), KNOWN AS THE "HEALTH CARE

FACILITIES ACT"; OR

(10) INSTITUTION OF HIGHER EDUCATION;

AND UPON PAYMENT OF A FEE OF THIRTY DOLLARS ($30) PER DAY, THE

BOARD SHALL ISSUE A WINE AUCTION PERMIT GOOD FOR A PERIOD OF NOT

MORE THAN FOUR CONSECUTIVE OR NONCONSECUTIVE DAYS PER CALENDAR

YEAR.

* * *

20150HB1690PN2653 - 84 -

SECTION 7.1. SECTION 410 OF THE ACT IS AMENDED BY ADDING

SUBSECTIONS TO READ:

SECTION 410. LIQUOR IMPORTERS' LICENSES; FEES; PRIVILEGES;

RESTRICTIONS.--* * *

(G) THE HOLDER OF AN IMPORTER'S LICENSE OR A VENDOR'S PERMIT

UNDER SECTION 208 MAY DELIVER LIQUOR PURCHASED FROM THE BOARD TO

A LICENSEE AS FOLLOWS:

(1) THE LIQUOR MAY BE STORED AT THE LICENSED IMPORTER'S OR

VENDOR'S PLACE OF BUSINESS OR ITS AUTHORIZED PLACE OF STORAGE.

(2) THE LICENSEE MUST PLACE A PURCHASE ORDER WITH THE BOARD

AND THE ORDER MUST BE PAID IN FULL PRIOR TO DELIVERY.

(3) THE HOLDER OF AN IMPORTER'S LICENSE OR VENDOR'S PERMIT

MAY CHARGE A FEE FOR DELIVERY.

(H) THE BOARD MAY RELEASE LIQUOR TO THE HOLDER OF AN

IMPORTER'S LICENSE OR THE HOLDER OF A VENDOR'S PERMIT FOR

DELIVERY TO A LICENSEE AS FOLLOWS:

(1) THE LICENSEE MUST PLACE A PURCHASE ORDER WITH THE BOARD

AND THE ORDER MUST BE PAID IN FULL PRIOR TO DELIVERY.

(2) THE HOLDER OF AN IMPORTER'S LICENSE OR VENDOR'S PERMIT

MAY CHARGE A FEE FOR DELIVERY.

SECTION 8. SECTION 411(E) OF THE ACT, AMENDED DECEMBER 22,

2011 (P.L.530, NO.113), IS AMENDED AND THE SECTION IS AMENDED BY

ADDING A SUBSECTION TO READ:

SECTION 411. INTERLOCKING BUSINESS PROHIBITED.--* * *

(E) EXCEPT AS HEREIN PROVIDED, NO HOTEL, RESTAURANT, RETAIL

DISPENSER OR CLUB LICENSEE, AND NO OFFICER, DIRECTOR OR

STOCKHOLDER, AGENT OR EMPLOYE OF ANY SUCH LICENSEE SHALL IN ANY

WISE BE INTERESTED, DIRECTLY OR INDIRECTLY, IN THE OWNERSHIP OR

LEASEHOLD OF ANY PROPERTY OR THE EQUIPMENT OF ANY PROPERTY OR

ANY MORTGAGE LIEN AGAINST THE SAME, USED BY A DISTRIBUTOR,

20150HB1690PN2653 - 85 -

IMPORTING DISTRIBUTOR, OR BY AN IMPORTER OR SACRAMENTAL WINE

LICENSEE, IN THE CONDUCT OF HIS BUSINESS; NOR SHALL ANY HOTEL,

RESTAURANT, RETAIL DISPENSER OR CLUB LICENSEE, OR ANY OFFICER,

DIRECTOR, STOCKHOLDER, AGENT OR EMPLOYE OF ANY SUCH LICENSEE,

EITHER DIRECTLY OR INDIRECTLY, LEND ANY MONEYS, CREDIT, OR GIVE

ANYTHING OF VALUE OR THE EQUIVALENT THEREOF, TO ANY DISTRIBUTOR,

IMPORTING DISTRIBUTOR, IMPORTER OR SACRAMENTAL WINE LICENSEE,

FOR EQUIPPING, FITTING OUT, OR MAINTAINING AND CONDUCTING,

EITHER IN WHOLE OR IN PART, AN ESTABLISHMENT USED IN THE CONDUCT

OF HIS BUSINESS.

THE PURPOSE OF THIS SECTION IS TO REQUIRE A SEPARATION OF THE

FINANCIAL AND BUSINESS INTERESTS BETWEEN MANUFACTURERS AND

HOLDERS OF HOTEL OR RESTAURANT LIQUOR LICENSES AND, AS HEREIN

PROVIDED, OF CLUB LICENSES, ISSUED UNDER THIS ARTICLE, AND NO

PERSON SHALL, BY ANY DEVICE WHATSOEVER, DIRECTLY OR INDIRECTLY,

EVADE THE PROVISIONS OF THE SECTION. BUT IN VIEW OF EXISTING

ECONOMIC CONDITIONS, NOTHING CONTAINED IN THIS SECTION SHALL BE

CONSTRUED TO PROHIBIT THE OWNERSHIP OF PROPERTY OR CONFLICTING

INTEREST BY A MANUFACTURER OF ANY PLACE OCCUPIED BY A LICENSEE

UNDER THIS ARTICLE AFTER THE MANUFACTURER HAS CONTINUOUSLY OWNED

AND HAD A CONFLICTING INTEREST IN SUCH PLACE FOR A PERIOD OF AT

LEAST FIVE YEARS PRIOR TO JULY EIGHTEENTH, ONE THOUSAND NINE

HUNDRED THIRTY-FIVE: PROVIDED, HOWEVER, THAT THIS CLAUSE SHALL

NOT PROHIBIT ANY HOTEL, RESTAURANT OR CLUB LIQUOR LICENSEE FROM

OWNING LAND WHICH IS LEASED TO, AND THE BUILDINGS THEREON OWNED

BY, A HOLDER OF A RETAIL DISPENSER'S LICENSE; AND NOTHING IN

THIS CLAUSE SHALL PREVENT THE ISSUANCE OF A RETAIL DISPENSER'S

LICENSE TO A LESSEE OF SUCH LANDS WHO OWNS THE BUILDINGS

THEREON: AND, PROVIDED FURTHER, THAT NOTHING CONTAINED IN THIS

SECTION SHALL BE CONSTRUED TO PROHIBIT ANY HOTEL, RESTAURANT,

20150HB1690PN2653 - 86 -

RETAIL DISPENSER OR CLUB LICENSEE OR ANY OFFICER, DIRECTOR OR

STOCKHOLDER, AGENT OR EMPLOYE OF ANY SUCH LICENSEE FROM HAVING A

FINANCIAL OR OTHER INTEREST, DIRECTLY OR INDIRECTLY IN THE

OWNERSHIP OR LEASEHOLD OF ANY PROPERTY OR THE EQUIPMENT OF ANY

PROPERTY OR ANY MORTGAGE LIEN AGAINST SAME, USED, LEASED BY AN

IMPORTER OR SACRAMENTAL WINE LICENSEE FOR THE EXCLUSIVE PURPOSE

OF MAINTAINING COMMERCIAL OFFICES AND ON THE CONDITION THAT SAID

PROPERTY IS NOT USED FOR THE STORAGE OR SALE OF LIQUOR OR MALT

OR BREWED BEVERAGES IN ANY QUANTITY: AND, PROVIDED FURTHER, THAT

NOTHING CONTAINED IN THIS SECTION SHALL PROHIBIT AN OFFICER OR

MEMBER OF A LICENSED PRIVATELY OWNED PRIVATE GOLF COURSE

CATERING CLUB FROM HAVING AN INTEREST IN A LIMITED WINERY

LICENSE: AND, PROVIDED FURTHER, THAT NOTHING CONTAINED IN THIS

SECTION SHALL BE CONSTRUED TO PROHIBIT A MEMBER OF THE GOVERNING

BOARD OF A PUBLIC AUTHORITY CREATED UNDER SUBDIVISION (N) OF

ARTICLE XXIII OF THE ACT OF AUGUST 9, 1955 (P.L.323, NO.130),

KNOWN AS "THE COUNTY CODE," FROM HAVING AN INTEREST IN A

DISTRIBUTOR OR IMPORTING DISTRIBUTOR LICENSE NOTWITHSTANDING THE

FACT THAT THE PUBLIC AUTHORITY HAS AN INTEREST IN ONE OR MORE

RETAIL LICENSES OR ACTS AS A LANDLORD FOR ONE OR MORE RETAIL

LICENSES: AND, PROVIDED FURTHER, THAT, NOTHING IN THIS SECTION

MAY PROHIBIT AN EMPLOYE OF A HOTEL OR RESTAURANT LICENSEE FROM

HAVING AN INTEREST IN ANY PROPERTY USED BY A LIMITED WINERY

LICENSEE OR IN GUARANTEEING ANY LOANS, OR LENDING ANY MONEYS,

PROVIDING CREDIT OR GIVING ANYTHING OF VALUE TO A LIMITED WINERY

LICENSEE OR ITS OFFICERS, DIRECTORS AND SHAREHOLDERS, PROVIDED

THAT THE PERSON ALSO IS NOT AN OFFICER OF OR DOES NOT HAVE ANY

INTEREST IN OR EXERCISE ANY CONTROL OVER ANY OTHER LICENSED

ENTITY THAT ENGAGES IN ANY SALES TO OR FROM THE LICENSEE: AND,

PROVIDED FURTHER, THAT, NOTWITHSTANDING ANY OTHER PROVISION OF

20150HB1690PN2653 - 87 -

THIS SECTION, AN ENTITY MAY ACQUIRE BOTH A MANUFACTURER'S

LICENSE OR A LIMITED WINERY LICENSE AND A HOTEL, RESTAURANT OR

RETAIL DISPENSER LICENSE FOR USE AT THE SAME LOCATION AND MORE

THAN ONE LOCATION MAY BE SO LICENSED. AND, PROVIDED FURTHER,

THAT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, AN

ENTITY LICENSED AS A LIMITED WINERY MAY HOLD AND OPERATE UNDER A

RESTAURANT LIQUOR LICENSE AT ONE OF ITS ADDITIONAL, BOARD-

APPROVED LOCATIONS INSTEAD OF AT ITS PRIMARY LOCATION WHERE

MANUFACTURING OCCURS. THE LICENSES AND A PERSON'S INTEREST IN

THE LICENSES OR IN THE ENTITY HOLDING THE LICENSES SHALL NOT BE

SUBJECT TO THIS SECTION. PROVIDED FURTHER, THAT, A PERSON WHO IS

A HOLDER OF FIVE PER CENTUM (5%) OR LESS OF SECURITIES OR OTHER

INTERESTS IN A PUBLICLY OR PRIVATELY HELD DOMESTIC OR FOREIGN

CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY OR OTHER

FORM OF LEGAL ENTITY OWNING A RESTAURANT LIQUOR LICENSE OR

RETAIL DISPENSER'S LICENSE SHALL NOT BE DEEMED TO POSSESS A

FINANCIAL INTEREST AND IS NOT SUBJECT TO THE PROVISIONS OF THIS

SECTION, PROVIDED THAT THE PERSON IS NOT AN OFFICER OF, EMPLOYE

OF OR DOES NOT HAVE ANY INTEREST IN OR EXERCISE ANY CONTROL OVER

ANY OTHER LICENSED ENTITY THAT ENGAGES IN ANY SALES TO OR FROM

THE RESTAURANT LIQUOR OR RETAIL DISPENSER LICENSEE IN WHICH THE

PERSON HOLDS THE FIVE PER CENTUM (5%) OR LESS INTEREST.

(F) THE FOLLOWING SHALL APPLY:

(1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE

CONTRARY, A MANUFACTURER OR LICENSEE AND ITS OFFICERS,

DIRECTORS, SHAREHOLDERS, SERVANTS, AGENTS OR EMPLOYES MAY

CONTRIBUTE, AND A MANUFACTURER OR LICENSEE AND ITS OFFICERS,

DIRECTORS, SHAREHOLDERS, SERVANTS, AGENTS OR EMPLOYES MAY ACCEPT

MONEY OR OTHER THINGS OF VALUE SOLELY FOR THE ADMINISTRATION OF

A RESPONSIBLE ALCOHOL MANAGEMENT TRAINING PROGRAM FOR ALCOHOL

20150HB1690PN2653 - 88 -

SERVICE PERSONNEL AS PROVIDED FOR UNDER THIS SECTION. THE MONEY

OR OTHER THINGS OF VALUE MAY BE PROVIDED BY OR TO A MANUFACTURER

OR LICENSEE AND ITS OFFICERS, DIRECTORS, SHAREHOLDERS, SERVANTS,

AGENTS OR EMPLOYES DIRECTLY OR BY OR TO A TRADE ORGANIZATION

CONSISTING, IN WHOLE OR PART, OF A GROUP OF LICENSEES.

(2) THE MANUFACTURER, LICENSEE AND TRADE ORGANIZATION

ASSOCIATED WITH THE PERSON PROVIDING THE MONEY OR OTHER THINGS

OF VALUE MUST KEEP A RECORD OF THE VALUE OF THE MONEY OR OTHER

THINGS OF VALUE PROVIDED, THE DATE PROVIDED AND THE ENTITY TO

WHOM IT WAS PROVIDED, AS PART OF THE RECORDS REQUIRED UNDER

SECTION 493(12) OF THIS ACT.

(3) THE MANUFACTURER, LICENSEE AND TRADE ORGANIZATION

ASSOCIATED WITH THE PERSON RECEIVING MONEY OR OTHER THINGS OF

VALUE MUST KEEP A RECORD OF THE VALUE OF THE MONEY OR OTHER

THINGS OF VALUE USED, AS PART OF THE RECORDS REQUIRED UNDER

SECTION 493(12) OF THIS ACT.

SECTION 8.1. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:

SECTION 415. WINE EXPANDED PERMITS.--(A) (1) THE BOARD

SHALL ISSUE A WINE EXPANDED PERMIT TO A PERSON HOLDING AND

POSSESSING A VALID RESTAURANT LIQUOR LICENSE OR HOTEL 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 OFF-PREMISES CONSUMPTION MAY TAKE PLACE BY A WINE EXPANDED

PERMIT HOLDER AFTER ELEVEN O'CLOCK POSTMERIDIAN OF ANY DAY UNTIL

THE LICENSEE'S PERMITTED HOURS OF OPERATION UNDER SECTION 406 OF

THE NEXT DAY, INCLUDING SUNDAYS IF THE LICENSEE HAS A PERMIT

AUTHORIZED UNDER SECTIONS 406(A)(3) AND 432(F).

(3) A WINE EXPANDED PERMIT MAY NOT BE ISSUED TO A LICENSE

20150HB1690PN2653 - 89 -

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, SO

LONG AS THE UNDERLYING LICENSE IS AUTHORIZED TO OPERATE.

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 DECIDED.

(4) IF THE BOARD HAS APPROVED THE OPERATION OF ANOTHER

BUSINESS WHICH HAS AN INSIDE PASSAGE OR COMMUNICATION TO OR WITH

THE LICENSED PREMISES, THE SALE AND PURCHASE OF WINE SHALL BE

CONFINED STRICTLY TO THE PREMISES, IN A SPECIFICALLY DESIGNATED

AREA COVERED BY THE LICENSE. THE PURCHASE OF GOODS OBTAINED FROM

THE UNLICENSED AREA OF THE PREMISES SHALL BE PERMITTED IN THE

LICENSED AREA.

(5) FOR PURPOSES OF SELLING WINE FOR OFF-PREMISES

CONSUMPTION, 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 THE

LICENSEES' EMPLOYEES;

(II) NOT ACCESSIBLE TO EMPLOYEES UNDER EIGHTEEN YEARS OF

AGE; AND

(III) IDENTIFIED BY DIMENSIONS AND LOCATIONS ON FORMS

SUBMITTED TO THE BOARD.

(8) A WINE EXPANDED PERMIT HOLDER SHALL UTILIZE A

20150HB1690PN2653 - 90 -

TRANSACTION SCAN DEVICE TO VERIFY THE AGE OF AN INDIVIDUAL WHO

APPEARS TO BE UNDER THIRTY-FIVE YEARS OF AGE BEFORE MAKING A

SALE OF WINE. 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) A SALE OF WINE BY A WINE EXPANDED PERMIT HOLDER SHALL BE

MADE THROUGH A REGISTER WHICH IS WELL DESIGNATED WITH SIGNAGE,

WHICH IS STAFFED AT ALL TIMES, WHICH IS STAFFED 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 OF WINE 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, AN

INITIAL APPLICATION FEE OF TWO THOUSAND DOLLARS ($2,000).

(2) AN ANNUAL RENEWAL FEE EQUAL TO TWO PER CENTUM OF THE

COST OF WINE PURCHASED FROM THE BOARD FOR OFF-PREMISES

CONSUMPTION.

PAID TO THE BOARD UNDER THIS SECTION SHALL BE PAID INTO THE

STATE TREASURY FOR DEPOSIT AS FOLLOWS:

(1) ALL MONEYS SHALL BE DEPOSITED IN THE STATE STORES FUND.

(2) EVERY JUNE 1, ALL MONEYS DEPOSITED UNDER PARAGRAPH (1)

20150HB1690PN2653 - 91 -

SHALL BE TRANSFERRED TO THE GENERAL FUND.

(D) A WINE EXPANDED PERMIT HOLDER MAY SELL FOR OFF-PREMISES

CONSUMPTION, IN A SINGLE TRANSACTION, UP TO THREE THOUSAND

(3,000) MILLILITERS OF WINE.

(E) (1) WINE EXPANDED PERMIT HOLDERS SHALL COMPLY WITH THE

PROVISIONS OF SECTION 201(F), (K) AND (O) OF THE ACT OF MARCH 4,

1971 (P.L.6, NO.2), KNOWN AS THE "TAX REFORM CODE OF 1971,"

REGARDING THE PURCHASE OF WINE FROM A PENNSYLVANIA LIQUOR STORE.

(2) THE SALE OF WINE BY A WINE EXPANDED PERMIT HOLDER FOR

OFF-PREMISES CONSUMPTION SHALL BE CONSIDERED A "PURCHASE AT

RETAIL" UNDER SECTION 201(F) OF THE "TAX REFORM CODE OF 1971," A

"SALE AT RETAIL" UNDER SECTION 201(K) OF THE "TAX REFORM CODE OF

1971" OR A "USE" UNDER SECTION 201(O) OF THE "TAX REFORM CODE OF

1971."

(3) A WINE EXPANDED PERMIT HOLDER MAY, WHEN FILING ITS

REQUIRED RETURNS UNDER ARTICLE II OF THE TAX REFORM CODE OF

1971, REQUEST A REFUND OF ANY TAXES PAID IN ACCORDANCE WITH

PARAGRAPH (1) FOR WINE SOLD FOR OFF-PREMISES CONSUMPTION AND FOR

WHICH TAXES WERE REMITTED TO THE DEPARTMENT UNDER PARAGRAPH (2).

THE REQUEST FOR A REFUND SHALL INCLUDE THE ORIGINAL RECEIPT FROM

A PENNSYLVANIA LIQUOR STORE SHOWING THE AMOUNT OF TAXES PAID

UNDER PARAGRAPH (1) FOR WHICH THE TAXPAYER IS REQUESTING A

REFUND.

(4) THE DEPARTMENT SHALL REFUND THE AMOUNT OF TAXES PAID TO

A PENNSYLVANIA LIQUOR STORE BY A WINE EXPANDED PERMIT HOLDER

UNDER PARAGRAPH (1) FOR WHICH THE TAXPAYER REMITTED TAXES

IMPOSED UNDER PARAGRAPH (2). THE DEPARTMENT MAY PROMULGATE RULES

OR REGULATIONS AND PRESCRIBE FORMS AS MAY BE NECESSARY TO

IMPLEMENT THE PROVISIONS OF THIS SUBSECTION.

(F) A WINE EXPANDED PERMIT HOLDER MAY NOT SELL A WINE

20150HB1690PN2653 - 92 -

PRODUCT FOR OFF-PREMISES CONSUMPTION AT A PRICE LESS THAN THE

LICENSEE'S PURCHASE PRICE FROM THE BOARD OF THE WINE PRODUCT.

(G) A WINE EXPANDED PERMIT HOLDER MAY NOT SELL A PRIVATE

LABEL PRODUCT.

SECTION 416. CASINO LIQUOR LICENSE.--(A) NOTWITHSTANDING

ANY PROVISION OF LAW OR REGULATION, A SLOT MACHINE LICENSEE OR

AN AFFILIATED DESIGNEE HOLDING A RESTAURANT LIQUOR OR EATING

PLACE RETAIL DISPENSER LICENSE AND WHICH SELLS LIQUOR OR MALT OR

BREWED BEVERAGES AT OR ADJACENT TO A GAMING FACILITY UNDER THIS

ACT MAY APPLY TO THE BOARD FOR A CASINO LIQUOR LICENSE. THE

BOARD MAY ISSUE A CASINO LIQUOR LICENSE TO A SLOT MACHINE

LICENSEE FOR USE AT THE CASINO LIQUOR LICENSEE'S LICENSED

FACILITY IN ACCORDANCE WITH THIS SECTION.

(B) EACH APPLICATION FOR A CASINO LICENSE UNDER THIS SECTION

SHALL BE ACCOMPANIED BY A FEE OF ONE MILLION DOLLARS

($1,000,000).

(B.1) EACH RESTAURANT LICENSEE THAT DOES NOT HOLD A SLOT

MACHINE LICENSE BUT OPERATES WITHIN OR ADJACENT TO THE GAMING

FACILITY MUST PAY A ONE-TIME FEE OF TEN THOUSAND DOLLARS

($10,000).

(1) A CASINO LIQUOR LICENSE MUST BE RENEWED ON AN ANNUAL

BASIS.

(2) FOR THE FIRST FOUR YEARS AFTER THE INITIAL ISSUE OF THE

CASINO LIQUOR LICENSE, THE CASINO LIQUOR LICENSE SHALL BE

SUBJECT TO AN ANNUAL RENEWAL FEE OF ONE MILLION DOLLARS

($1,000,000).

(3) AFTER THE PERIOD UNDER PARAGRAPH (2), THE CASINO LIQUOR

LICENSE SHALL BE SUBJECT TO AN ANNUAL RENEWAL FEE OF TWO HUNDRED

AND FIFTY THOUSAND DOLLARS ($250,000).

20150HB1690PN2653 - 93 -

(4) NOTWITHSTANDING THE PROVISIONS OF SECTION 802, ALL FEES

COLLECTED OR RECEIVED BY THE BOARD UNDER THIS SUBSECTION SHALL

BE PAID INTO THE STATE TREASURY THROUGH THE DEPARTMENT OF

REVENUE FOR DEPOSIT INTO THE GENERAL FUND.

(D) THE FOLLOWING SHALL APPLY TO DISPOSITION OF RESTAURANT

LIQUOR OR EATING PLACE RETAIL DISPENSER LICENSES:

(1) AN APPLICANT UNDER THIS SECTION THAT CURRENTLY HOLDS A

RESTAURANT LIQUOR OR EATING PLACE RETAIL DISPENSER LICENSE MAY

CONTINUE TO UTILIZE THE LICENSE UNTIL THE CASINO LIQUOR LICENSE

IS ISSUED BY THE BOARD. UPON ISSUANCE OF A CASINO LIQUOR

LICENSE, THE APPLICANT MUST SURRENDER THE RESTAURANT LIQUOR OR

EATING PLACE RETAIL DISPENSER LICENSE TO THE BOARD.

(2) AN APPLICANT UNDER THIS SECTION THAT CURRENTLY HOLDS A

RESTAURANT LIQUOR OR EATING PLACE RETAIL DISPENSER LICENSE THAT

IS SUBJECT TO THE QUOTA RESTRICTIONS UNDER SECTION 461(A) MAY

CONTINUE TO UTILIZE THAT LICENSE UNTIL THE CASINO LIQUOR LICENSE

IS ISSUED BY THE BOARD. UPON ISSUANCE OF A CASINO LIQUOR

LICENSE, THE APPLICANT MAY SELL THE RESTAURANT LIQUOR OR EATING

PLACE RETAIL DISPENSER LICENSE.

(E) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A HOLDER OF

A CASINO LIQUOR LICENSE MAY SELL OR SERVE LIQUOR AND MALT OR

BREWED BEVERAGES TWENTY-FOUR (24) HOURS A DAY, SEVEN (7) DAYS A

WEEK.

(F) A CASINO LIQUOR L ICENSE SHALL BE NONTRANSFERABLE, EXCEPT

THAT NOTHING IN THIS SUBSECTION SHALL PRECLUDE A TRANSFER OF

OWNERSHIP OF A CASINO LIQUOR LICENSE TO ANOTHER ELIGIBLE PERSON

TO BE USED AT THE SAME LICENSED FACILITY.

(G) A CASINO LIQUOR L ICENSE SHALL EXPIRE UNDER THE FOLLOWING

CIRCUMSTANCES:

(1) REVOCATION BY AN ADMINISTRATIVE LAW JUDGE UNDER SECTION

20150HB1690PN2653 - 94 -

471;

(2) NONRENEWAL BY THE BOARD UNDER SECTION 470;

(3) NONRENEWAL OF THE LICENSE BY A SLOT MACHINE LICENSEE OR

ITS DESIGNEE; OR

(4) UPON REQUEST BY THE SLOT MACHINE LICENSEE.

(H) THE BOARD MAY ISSUE A CASINO LIQUOR LICENSE AT ANY TIME

TO A NEW APPLICANT EVEN IF THE PREVIOUS LICENSE HAD:

(1) BEEN REVOKED BY AN ADMINISTRATIVE LAW JUDGE UNDER

SECTION 471;

(2) NOT BEEN RENEWED BY THE BOARD UNDER SECTION 470;

(3) NOT BEEN RENEWED BY THE SLOT MACHINE LICENSEE; OR

(4) EXPIRED UPON REQUEST BY THE SLOT MACHINE LICENSEE.

(I) IN ADDITION TO ANY OTHER RESTRICTIONS AND PRIVILEGES, A

CASINO LIQUOR L ICENSE SHALL BE SUBJECT TO THE FOLLOWING:

(1) SALES MAY BE MADE AT ANY TIME THE FACILITY IS OPEN TO

THE PUBLIC.

(2) LIQUOR OR MALT OR BREWED BEVERAGES MAY BE TRANSPORTED

AND CONSUMED OFF THE GAMING FLOOR IF THE LIQUOR OR MALT OR

BREWED BEVERAGE REMAINS WITHIN THE PREMISES OF THE LICENSED

FACILITY.

(3) SALES OF MALT OR BREWED BEVERAGES FOR OFF-PREMISES

CONSUMPTION ARE PROHIBITED.

(4) IN ADDITION TO THE PROVISIONS OF SECTION 493(24)(II),

THE HOLDER OF A CASINO LIQUOR LICENSE MAY GIVE LIQUOR AND MALT

OR BREWED BEVERAGES FREE OF CHARGE TO ANY PERSON ATTENDING AN

INVITATION-ONLY EVENT HELD ANYWHERE ON THE PREMISES OF THE

LICENSED FACILITY.

(5) LICENSES ISSUED UNDER THIS SECTION SHALL NOT BE SUBJECT

TO:

(I) THE PROXIMITY PROVISIONS OF SECTIONS 402 AND 404;

20150HB1690PN2653 - 95 -

(II) THE RESTRICTIONS ON DISCOUNT PRICING PRACTICES SET

FORTH IN SECTIONS 406(G) AND 442(G);

(III) THE QUOTA RESTRICTIONS UNDER SECTION 461;

(IV) THE PROVISIONS OF SECTION 493(10);

(V) THE PROHIBITION AGAINST MINORS FREQUENTING AS DESCRIBED

IN SECTION 493(14);

(VI) THE COST AND TOTAL DISPLAY AREA LIMITATIONS OF SECTION

493(20)(I);

(VII) THE RESTRICTIONS ON EVENTS, TOURNAMENTS OR CONTESTS IN

40 PA. CODE § 5.32 (RELATING TO RESTRICTIONS/EXCEPTIONS) OR ANY

SUCCESSOR REGULATION; AND

(VIII) THE RESTRICTIONS ON THE AWARDING OF TROPHIES, PRIZES

OR PREMIUMS SET FORTH IN 40 PA. CODE SECTION 5.32 OR ANY

SUCCESSOR REGULATION.

(J) MORE THAN ONE CASINO LIQUOR LICENSE ISSUED BY THE BOARD

MAY BE IN EFFECT AT A LICENSED FACILITY AT ANY ONE TIME, EXCEPT

THAT NO MORE THAN ONE CASINO LIQUOR LICENSE SHALL BE IN EFFECT

AT A SPECIFIC LOCATION WITHIN THE PREMISES OF A LICENSED

FACILITY AT THE SAME TIME.

SECTION 9. SECTION 431(B) AND (D)(2) OF THE ACT, AMENDED

DECEMBER 20, 1996 (P.L.1513, NO.196) AND DECEMBER 8, 2004

(P.L.1810, NO.239), ARE 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

20150HB1690PN2653 - 96 -

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 SHALL NOT LICENSE THE AREA

WHERE LIQUID FUELS OR OIL IS SOLD. NO SALES OF LIQUID FUELS OR

OIL MAY BE MADE FROM A LICENSEE'S LICENSED PREMISES. A LICENSED

PREMISES MAY NOT HAVE AN INTERIOR CONNECTION WITH A LOCATION

THAT SELLS LIQUID FUELS OR OILS UNLESS IT FIRST RECEIVES

20150HB1690PN2653 - 97 -

PERMISSION FROM THE BOARD FOR THE INTERIOR CONNECTION. THE

APPROVAL SHALL BE REQUIRED REGARDLESS OF WHETHER THE LICENSEE OR

ANOTHER PARTY IS THE ENTITY SELLING THE LIQUID FUELS OR OILS.

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

PURCHASED ONLY FROM PERSONS LICENSED UNDER THIS ACT AS

MANUFACTURERS OR IMPORTING DISTRIBUTORS, AND IN THE CASE OF

20150HB1690PN2653 - 98 -

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

PENNSYLVANIA STATE POLICE, BUREAU OF LIQUOR CONTROL ENFORCEMENT,

DURING NORMAL BUSINESS HOURS.

20150HB1690PN2653 - 99 -

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

OF THIS ACT WHOSE LICENSED PREMISES ARE NOT LOCATED WITHIN THE

GEOGRAPHICAL AREA FOR WHICH DISTRIBUTING RIGHTS HAVE BEEN GIVEN

20150HB1690PN2653 - 100 -

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.

* * *

(D) * * *

(2) AFTER JANUARY 1, 1980, NO MANUFACTURER SHALL ENTER INTO

ANY AGREEMENT WITH MORE THAN ONE DISTRIBUTOR OR IMPORTING

DISTRIBUTOR FOR THE PURPOSE OF ESTABLISHING MORE THAN ONE

AGREEMENT FOR DESIGNATED BRAND OR BRANDS OF MALT OR BREWED

BEVERAGES IN ANY ONE TERRITORY. EACH FRANCHISE TERRITORY WHICH

IS GRANTED BY A MANUFACTURER SHALL BE GEOGRAPHICALLY CONTIGUOUS

OR IN COUNTIES WHICH ARE CONTIGUOUS WITH ONE ANOTHER. ALL

IMPORTING DISTRIBUTORS SHALL MAINTAIN SUFFICIENT RECORDS TO

EVIDENCE COMPLIANCE OF THIS SECTION. WITH REGARD TO ANY

TERRITORIAL DISTRIBUTION AUTHORITY GRANTED TO AN IMPORTING

DISTRIBUTOR BY A MANUFACTURER OF MALT OR BREWED BEVERAGES AFTER

20150HB1690PN2653 - 101 -

JANUARY 1, 1996, THE RECORDS SHALL ESTABLISH THAT EACH AND EVERY

CASE OF A BRAND OF MALT OR BREWED BEVERAGES FOR WHICH THE

IMPORTING DISTRIBUTOR IS ASSIGNED WAS SOLD, RESOLD, STORED,

DELIVERED OR TRANSPORTED BY THE IMPORTING DISTRIBUTOR, EITHER

FROM A POINT OR TO A POINT WITH THE ASSIGNED GEOGRAPHICALLY

CONTIGUOUS TERRITORY OR IN COUNTIES WHICH ARE CONTIGUOUS WITH

ONE ANOTHER, TO ANY PERSON OR PERSONS, WHETHER SUCH PERSON OR

PERSONS ARE LICENSED BY THIS ACT OR NOT LICENSED BY THIS ACT.

* * *

SECTION 10. SECTION 432(D) OF THE ACT, AMENDED JANUARY 6,

2006 (P.L.1, NO.1), IS AMENDED AND THE SECTION IS AMENDED BY

ADDING A SUBSECTION TO READ:

SECTION 432. MALT AND BREWED BEVERAGES RETAIL LICENSES.--* *

(D) THE BOARD SHALL, IN ITS DISCRETION, GRANT OR REFUSE ANY

NEW LICENSE, THE TRANSFER OF ANY LICENSE TO A NEW LOCATION OR

THE EXTENSION OF AN EXISTING LICENSE TO COVER AN ADDITIONAL AREA

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, TRANSFER OR EXTENSION

IS APPLIED FOR A PLACE WHICH IS WITHIN TWO HUNDRED FEET OF ANY

OTHER PREMISES WHICH IS LICENSED BY THE BOARD. THE BOARD SHALL

REFUSE ANY APPLICATION FOR A NEW LICENSE, THE TRANSFER OF ANY

LICENSE TO A NEW LOCATION OR THE EXTENSION OF AN EXISTING

LICENSE TO COVER AN ADDITIONAL AREA IF, IN THE BOARD'S OPINION,

SUCH NEW LICENSE, TRANSFER OR EXTENSION 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

TO BE LICENSED. THE BOARD MAY ENTER INTO AN AGREEMENT WITH THE

APPLICANT CONCERNING ADDITIONAL RESTRICTIONS ON THE LICENSE IN

20150HB1690PN2653 - 102 -

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 REFUSE ANY

APPLICATION FOR A NEW LICENSE, THE TRANSFER OF ANY LICENSE TO A

LOCATION WHERE THE SALE OF LIQUID FUELS OR OIL IS CONDUCTED OR

THE EXTENSION OF AN EXISTING LICENSE TO COVER AN ADDITIONAL

AREA] THE BOARD SHALL NOT LICENSE THE AREA WHERE LIQUID FUELS OR

OIL IS SOLD. NO SALES OF LIQUID FUELS OR OIL MAY BE MADE FROM A

LICENSEE'S LICENSED PREMISES. A LICENSED PREMISES MAY NOT HAVE

AN INTERIOR CONNECTION WITH A LOCATION THAT SELLS LIQUID FUELS

OR OILS UNLESS IT FIRST RECEIVES PERMISSION FROM THE BOARD FOR

THE INTERIOR CONNECTION. THE APPROVAL SHALL BE REQUIRED

REGARDLESS OF WHETHER THE LICENSEE OR ANOTHER PARTY IS THE

ENTITY SELLING THE LIQUID FUELS OR OILS: AND PROVIDED FURTHER,

THAT 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

20150HB1690PN2653 - 103 -

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. THE BOARD MAY, IN ITS DISCRETION, REFUSE AN

APPLICATION FOR AN ECONOMIC DEVELOPMENT LICENSE UNDER SECTION

461(B.1) OR AN APPLICATION FOR AN INTERMUNICIPAL TRANSFER OR A

LICENSE IF THE BOARD RECEIVES A PROTEST FROM THE GOVERNING BODY

OF THE RECEIVING MUNICIPALITY. THE RECEIVING MUNICIPALITY OF AN

INTERMUNICIPAL TRANSFER OR AN ECONOMIC DEVELOPMENT LICENSE UNDER

SECTION 461(B.1) MAY FILE A PROTEST AGAINST THE APPROVAL FOR

ISSUANCE OF A LICENSE FOR ECONOMIC DEVELOPMENT OR AN

INTERMUNICIPAL TRANSFER OF A LICENSE INTO ITS MUNICIPALITY, AND

SUCH MUNICIPALITY SHALL HAVE STANDING IN A HEARING TO PRESENT

TESTIMONY IN SUPPORT OF OR AGAINST THE ISSUANCE OR TRANSFER OF A

LICENSE. UPON ANY OPENING IN ANY QUOTA, AN APPLICATION FOR A NEW

LICENSE SHALL ONLY BE FILED WITH THE BOARD FOR A PERIOD OF SIX

MONTHS FOLLOWING SAID OPENING.

* * *

(H) IN A MUNICIPALITY WHICH HAS APPROVED THE GRANTING OF

LIQUOR LICENSES AND UPON APPLICATION TO THE BOARD AND PAYMENT OF

A FEE OF THIRTY THOUSAND DOLLARS ($30,000), THE BOARD SHALL

CONVERT AN EATING PLACE RETAIL DISPENSING LICENSE TO A

RESTAURANT LICENSE WITHOUT REGARD TO THE QUOTA RESTRICTIONS SET

FORTH IN SECTION 461(A). THE CONVERTED RESTAURANT LICENSE SHALL

BE SUBJECT TO THE PROVISIONS OF THIS ACT GOVERNING RESTAURANT

LIQUOR LICENSES. THE PROVISIONS OF THIS SUBSECTION ALLOWING A

HOLDER OF AN EATING PLACE RETAIL DISPENSING LICENSE TO CONVERT

THE LICENSE TO A RESTAURANT LIQUOR LICENSE SHALL ONLY APPLY TO A

LICENSE HOLDER WHOSE LICENSE IS NOT 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. A

20150HB1690PN2653 - 104 -

CONVERSION UNDER THIS SUBSECTION SHALL BE CONSIDERED A TRANSFER

OR ISSUANCE OF A NEW LICENSE FOR THE PURPOSES OF SECTION 402.

THIS SUBSECTION DOES NOT APPLY TO LICENSES IN A CITY OF THE

FIRST CLASS.

SECTION 11. SECTION 436(F) OF THE ACT IS AMENDED AND THE

SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:

SECTION 436. APPLICATION FOR DISTRIBUTORS', IMPORTING

DISTRIBUTORS' AND RETAIL DISPENSERS' LICENSES.--APPLICATION FOR

DISTRIBUTORS', IMPORTING DISTRIBUTORS' AND RETAIL DISPENSERS'

LICENSES, OR FOR THE TRANSFER OF AN EXISTING LICENSE TO ANOTHER

PREMISES NOT THEN LICENSED OR TO ANOTHER PERSON, SHALL CONTAIN

OR HAVE ATTACHED THERETO THE FOLLOWING INFORMATION AND

STATEMENTS:

* * *

(F) THAT APPLICANT [IS] AND MANAGEMENT COMPANY OR COMPANIES,

IF ANY, ARE THE ONLY [PERSON] PERSONS IN ANY MANNER PECUNIARILY

INTERESTED IN THE BUSINESS SO ASKED TO BE LICENSED, AND THAT NO

OTHER PERSON SHALL BE IN ANY MANNER PECUNIARILY INTERESTED

THEREIN DURING THE CONTINUANCE OF THE LICENSE, EXCEPT AS

HEREINAFTER PERMITTED.

* * *

(K) IF THE LICENSEE IN QUESTION HAS A RETAIL DISPENSER

LICENSE, AND THE APPLICANT INTENDS TO USE A MANAGEMENT COMPANY

TO OPERATE, MANAGE OR SUPERVISE ALL OR PART OF THE OPERATION OF

THE LICENSED PREMISES, THE APPLICANT MUST FILE A WRITTEN

APPLICATION WITH THE BOARD ON THE FORM OR FORMS AS THE BOARD

SHALL, FROM TIME TO TIME, PRESCRIBE. THE APPLICATION SHALL BE

ACCOMPANIED BY A FEE IN AN AMOUNT TO BE DETERMINED BY THE BOARD.

THE BOARD SHALL REFUSE THE APPLICATION IF THE MANAGEMENT COMPANY

OR ANY PERSON INVOLVED WITH THE MANAGEMENT WOULD BE PRECLUDED

20150HB1690PN2653 - 105 -

FROM HOLDING AN INTEREST IN THE UNDERLYING LICENSE.

SECTION 11.1. SECTION 441(D)(2) OF THE ACT, AMENDED JUNE 28,

2011 (P.L.55, NO.11), IS AMENDED TO READ:

SECTION 441. DISTRIBUTORS' AND IMPORTING DISTRIBUTORS'

RESTRICTIONS ON SALES, STORAGE, ETC.--* * *

(D) * * *

(2) NO IMPORTING DISTRIBUTOR SHALL MAINTAIN ANY PLACE FOR

THE STORAGE OF MALT OR BREWED BEVERAGES EXCEPT IN THE FRANCHISE

TERRITORY IN WHICH THE LICENSED PREMISES IS LOCATED AND UNLESS

THE SAME HAS BEEN APPROVED BY THE BOARD. THE BOARD SHALL ISSUE

NO MORE THAN [ONE] FOUR STORAGE [FACILITY] FACILITIES LICENSE TO

AN IMPORTING DISTRIBUTOR. THE STORAGE LOCATION SHALL BE

DESIGNATED SOLELY AS A STORAGE FACILITY, FROM WHICH ONLY SALES

TO OTHER LICENSEES ARE PERMITTED. RETAIL SALES MAY BE MADE AT

THE LICENSED LOCATION PURSUANT TO SUBSECTION (C). IF THE

IMPORTING DISTRIBUTOR MAINTAINS A STORAGE LOCATION FOR COLD

STORAGE IN THE SAME MUNICIPALITY IN WHICH THE IMPORTING

DISTRIBUTOR IS LICENSED OR A NEARBY MUNICIPALITY, THE IMPORTING

DISTRIBUTOR MAY CONTINUE TO MAINTAIN THAT COLD STORAGE LOCATION

IN ADDITION TO ANOTHER STORAGE LOCATION WITHIN THEIR FRANCHISE

TERRITORY.

* * *

SECTION 12. SECTION 442(F) AND (G) OF THE ACT, AMENDED OR

ADDED DECEMBER 22, 2011 (P.L.530, NO.113) AND JULY 5, 2012

(P.L.1007, NO.116), ARE AMENDED TO READ:

SECTION 442. RETAIL DISPENSERS' RESTRICTIONS ON PURCHASES

AND SALES.--* * *

(F) THE HOLDER OF AN EATING PLACE RETAIL DISPENSER LICENSE

MAY OBTAIN AN OFF-PREMISES CATERING PERMIT UNDER SECTION 493(33)

TO HOLD A CATERED FUNCTION OFF OF THE LICENSED PREMISES AND ON

20150HB1690PN2653 - 106 -

OTHERWISE UNLICENSED PREMISES WHERE THE LICENSEE MAY SELL MALT

OR BREWED BEVERAGES BY THE GLASS, OPEN BOTTLE OR ANY OTHER

CONTAINER, TOGETHER WITH FOOD, FOR CONSUMPTION ON THOSE PREMISES

SOLELY USED FOR CATERING PREMISES. FUNCTIONS CONDUCTED UNDER THE

AUTHORITY OF THE PERMIT SHALL BE SUBJECT TO THE FOLLOWING:

(1) MALT OR BREWED BEVERAGES MAY ONLY BE PROVIDED DURING THE

DAYS AND HOURS THAT THE LICENSE HOLDER MAY OTHERWISE SELL MALT

OR BREWED BEVERAGES;

(2) EACH CATERED FUNCTION SHALL LAST NO LONGER THAN ONE DAY

AND NOT MORE THAN [FIFTY] FIFTY-TWO CATERED FUNCTIONS MAY BE

HELD EACH CALENDAR YEAR BY EACH LICENSE HOLDER FOR USE WITH A

PARTICULAR LICENSE;

(3) A CATERED FUNCTION SHALL NOT BE HELD AT A LOCATION THAT

IS ALREADY SUBJECT TO THE APPLICANT'S OR ANOTHER LICENSEE'S

LICENSE;

(4) A PERMIT SHALL NOT BE ISSUED TO AN APPLICANT WHOSE

LICENSE IS IN SAFEKEEPING;

(5) A PERMIT SHALL NOT BE ISSUED TO A LOCATION THAT IS

SUBJECT TO A PENDING OBJECTION BY THE DIRECTOR OF THE BUREAU OF

LICENSING OR THE BOARD UNDER SECTION 470(A.1);

(6) A PERMIT SHALL NOT BE ISSUED TO A LOCATION THAT IS

SUBJECT TO A PENDING LICENSE SUSPENSION UNDER SECTION 471 OR THE

ONE-YEAR PROHIBITION ON THE ISSUANCE OR TRANSFER OF A LICENSE

UNDER SECTION 471(B);

(7) NO MALT OR BREWED BEVERAGES MAY BE TAKEN FROM THE

PERMITTED LOCATION BY A PATRON, BUT THE APPLICANT MAY TRANSPORT

MALT OR BREWED BEVERAGES TO AND FROM ITS LICENSED PREMISES TO

THE PROPOSED PREMISES;

(8) WRITTEN NOTICE OF THE CATERED FUNCTION AS ENUMERATED IN

PARAGRAPH (9) SHALL BE PROVIDED TO THE LOCAL POLICE AND THE

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ENFORCEMENT BUREAU AT LEAST SEVEN DAYS IN ADVANCE OF THE EVENT;

(9) WRITTEN NOTICE SHALL BE PROVIDED TO THE BOARD AT LEAST

[THIRTY] FOURTEEN DAYS PRIOR TO A CATERED FUNCTION. WRITTEN

NOTICE MUST INCLUDE THE LOCATION OF THE FUNCTION, TIME OF THE

FUNCTION, HOST OF THE FUNCTION, GENERAL INFORMATION REGARDING

THE GUESTS EXPECTED AT THE FUNCTION AS WELL AS ANY INFORMATION

THE BOARD SHALL FROM TIME TO TIME PRESCRIBE. THE BOARD MAY, IN

ITS DISCRETION, ACCEPT NOTICE IN AN ELECTRONIC FORMAT. THE BOARD

MAY, IN ITS DISCRETION, WAIVE THE [THIRTY-DAY] FOURTEEN-DAY

NOTICE PERIOD FOR A CATERED FUNCTION IF:

(I) THE APPLICANT HAS PREVIOUSLY CONDUCTED FUNCTIONS THAT

MEET THE REQUIREMENTS OF THIS ACT;

(II) THE APPLICANT IS A LICENSEE IN GOOD STANDING WITH THE

BOARD; OF

(III) NOTIFICATION WAS RECEIVED AT LEAST [FOURTEEN] SEVEN

DAYS PRIOR TO THE CATERED FUNCTION; AND

(IV) THE APPLICANT PAYS A LATE FEE OF ONE HUNDRED DOLLARS

($100);

(10) THE BOARD SHALL, IN ITS DISCRETION, APPROVE OR

DISAPPROVE A CATERED FUNCTION IF THE APPLICANT FAILS TO PROVIDE

TIMELY NOTICE OF THE CATERED FUNCTION, DOES NOT INTEND TO

CONDUCT A FUNCTION THAT MEETS THE REQUIREMENTS OF THIS ACT OR

HAS PREVIOUSLY CONDUCTED A FUNCTION THAT DID NOT MEET THE

REQUIREMENTS OF THIS ACT;

(11) IF A CATERED FUNCTION IS SCHEDULED TO OCCUR ON PRIVATE

PROPERTY, THE OWNER OF THAT PROPERTY IS DEEMED TO HAVE SUBMITTED

TO THE JURISDICTION OF THE ENFORCEMENT BUREAU, AND THE WARRANT

REQUIRED BY SECTION 211(A)(2) OF THIS ACT SHALL NOT BE NECESSARY

FOR THE ENFORCEMENT BUREAU TO ENTER AND SEARCH THE PREMISES

DURING THE FUNCTION OR ANY ACTIVITIES RELATED TO THE FUNCTION;

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(12) ALL SERVERS AT THE OFF-PREMISES CATERED FUNCTION SHALL

BE IN COMPLIANCE WITH THE RESPONSIBLE ALCOHOL MANAGEMENT

PROVISIONS UNDER SECTION 471.1 OF THIS ACT;

(13) NO CATERED FUNCTION MAY BE HELD FOR MORE THAN FIVE

HOURS PER DAY AND MUST END BY MIDNIGHT UNLESS THE CATERED

FUNCTION OCCURS ON DECEMBER 31 OF ANY CALENDAR YEAR ON WHICH THE

DATE THE CATERED FUNCTION MUST END BY TWO O'CLOCK ANTEMERIDIAN;

(14) NEITHER THE OWNER OF THE PROPERTY NOR THE APPLICANT MAY

SELL TICKETS TO A CATERED FUNCTION UNLESS ONE OF THE FOLLOWING

CONDITIONS IS MET:

(I) THE APPLICANT HAS CONTRACTED WITH AN ELIGIBLE ENTITY FOR

THE FUNCTION, AND THE FUNCTION IS BEING USED TO RAISE MONEY FOR

THE ELIGIBLE ENTITY'S ORGANIZATION;

(II) THE APPLICANT HAS CONTRACTED WITH A NONPROFIT

ORGANIZATION AS DEFINED UNDER SECTION 501(C)(3) OF THE INTERNAL

REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 501(C)(3)),

FOR AN EVENT WHICH HAS THE SOLE PURPOSE OF RAISING FUNDS FOR

THAT NONPROFIT ORGANIZATION;

(III) THE APPLICANT HAS CONTRACTED WITH AN ORGANIZATION THAT

HOLDS TAX-EXEMPT STATUS UNDER SECTION 527 OF THE INTERNAL

REVENUE CODE OF 1986;

(15) CATERED FUNCTIONS HELD ON UNLICENSED PREMISES SHALL BE

SUBJECT TO SECTION 493(34) OF THIS ACT;

(16) CATERED FUNCTIONS MAY NOT BE HELD IN LOCATIONS THAT ARE

SUBJECT TO A PENDING, PROTESTED TRANSFER APPLICATION;

(17) A PERMIT MAY NOT BE ISSUED TO A LICENSEE WHO IS SUBJECT

TO OBJECTION UNDER THE BOARD'S NUISANCE BAR PROGRAM;

(18) A PERMIT SHALL NOT BE ISSUED TO A LICENSEE FOR USE IN

ANY LOCATION THAT IS MOBILE; AND

(19) A PERMIT SHALL NOT BE ISSUED FOR USE ON ANY LOCATION

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USED FOR PARKING AT A SPORTS EVENT OR CONCERT EVENT.

(G) NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR

REGULATION, THE HOLDER OF A RETAIL DISPENSER LICENSE MAY HOLD

HAPPY HOURS UP TO FOUR CONSECUTIVE OR NONCONSECUTIVE HOURS PER

DAY AND UP TO FOURTEEN HOURS PER WEEK DURING WHICH THE HOLDER

DISCOUNTS THE PRICE OF ALCOHOLIC BEVERAGES. NO DISCOUNTS MAY BE

GIVEN BETWEEN THE HOURS OF MIDNIGHT AND THE LEGAL CLOSING TIME.

NOTICE OF ALL HAPPY HOURS SHALL BE VISIBLY POSTED ON THE

LICENSED PREMISES SEVEN DAYS PRIOR TO THE HAPPY HOUR. EXCEPT AS

PROVIDED IN THIS SUBSECTION, A LICENSEE SHALL COMPLY WITH THE

PROVISIONS OF 40 PA. CODE § 13.102 (RELATING TO DISCOUNT PRICING

PRACTICES). [EVENTS] NEITHER EVENTS CONDUCTED UNDER THE

AUTHORITY OF 40 PA. CODE § 13.102(B) NOR DISCOUNTS PROVIDED TO

MUG CLUB MEMBERS SHALL [NOT] BE COUNTED AGAINST THE FOUR-HOURS

PER DAY OR FOURTEEN-HOURS PER WEEK.

SECTION 13. SECTION 443 OF THE ACT IS AMENDED BY ADDING A

SUBSECTION TO READ:

SECTION 443. INTERLOCKING BUSINESS PROHIBITED.--* * *

(H) THE FOLLOWING SHALL APPLY: