PRINTER'S NO. 2431

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1654

Session of

2015

INTRODUCED BY P. COSTA, D. COSTA, DeLUCA, HARKINS, W. KELLER,

MAHONEY, THOMAS AND YOUNGBLOOD, OCTOBER 21, 2015

REFERRED TO COMMITTEE ON LIQUOR CONTROL, OCTOBER 21, 2015

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;

sales, providing for wine expanded permits, further providing

for malt and brewed beverages manufacturers', distributors'

and importing distributors' licenses for prohibitions against

grant of licenses, for number and kinds of licenses, for

sales, storage and purchase restrictions, for assignability,

for surrender of license, for shipment of wine and for

unlawful acts; and, in distilleries, wineries, bonded

warehouses, bailees and transporters, further providing for

limited wineries.

The General Assembly of the Commonwealth of Pennsylvania

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

unless the context clearly indicates otherwise, shall have the

meanings ascribed to them in this section:

* * *

"Growler" shall mean a refillable glass or metal container

that holds a minimum of sixty-four fluid ounces for malt or

brewed beverages and can be resealed.

* * *

"Retail dispenser" shall mean any person licensed to engage

in the retail sale of malt or brewed beverages for consumption

purchaser thereof.

* * *

"Six-pack" shall mean a configuration:

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

more than ninety-six ounces; and

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

the premises by the purchaser.

* * *

"Transaction scan device" shall mean a device capable of

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

the premises by the purchaser.

* * *

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

section is amended by adding subsections to read:

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

board shall have the power and its duty shall be:

* * *

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

consumption, importation, use, storage, transportation and

delivery of liquor, alcohol and malt or brewed beverages in

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.] set

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

uniform throughout this Commonwealth. The board shall require

each Pennsylvania manufacturer and each nonresident manufacturer

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

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

liquor, fermented, distilled, rectified, compounded or bottled

in Pennsylvania.

* * *

(l) To establish and implement a customer relations

marketing program for the purpose of offering incentives, such

as coupons or discounts on certain products, to customers of the

board.

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

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

stores or establishments, but all such leases shall be made

through the Department of General Services as agent of the

board. Notwithstanding any other provision of law to the

contrary, the Department of General Services shall have no more

than ninety days from the date the board officially approves a

lease recommendation to send the final lease packet to the

appropriate agencies for further processing. The Department of

General Services shall be required to submit quarterly reports

to the chairman and minority chairman of the Law and Justice

fails to regularly submit these quarterly reports or fails to

regularly meet the ninety-day deadline imposed by this

subsection, then the General Assembly may consider legislation

that would allow the board to lease premises for its stores

without the involvement of the Department of General Services.

The board, through the Department of General Services, shall

have authority to purchase such equipment and appointments as

Pennsylvania Liquor Store shall be open for business week days,

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

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

any store in any municipality.

(b) [Certain] Pennsylvania Liquor Stores operated by the

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

hours of noon 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

subsections to read:

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

(b) Every Pennsylvania Liquor Store shall sell liquors at

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

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

regulations of the board, to pharmacists duly licensed and

registered under the laws of the Commonwealth, and to

Pharmacopoeia. The board may sell at special prices under the

regulations of the board, to United States Armed Forces

facilities which are located on United States Armed Forces

installations and are conducted pursuant to the authority and

regulations of the United States Armed Forces. All other sales

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

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

to unlicensed customers of the board as provided for under

section 207(l) and 493(24). 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

receiving the delivery.

(b.1) The board may contract through the Commonwealth

bidding process for delivery to licensees and permit holders, at

the expense of the licensee or permit holder receiving the

delivery. Payment shall be by credit card or electronic fund

transfer only and may occur no later than the time of delivery.

* * *

operate and maintain Pennsylvania lottery instant ticket vending

machines, player-activated terminals and technologies or systems

subsequently approved by the Department of Revenue for the self-

service sale of lottery tickets and games in Pennsylvania Liquor

Stores. The board and the Secretary of Revenue shall mutually

agree upon the number and location of the stores authorized to

conduct self-service sales of lottery tickets and games.

(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

act and regulations promulgated under this act, the board shall

have authority to issue a retail liquor license for any premises

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

the license entitling the hotel, restaurant or club to purchase

liquor from a Pennsylvania Liquor Store and to keep on the

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

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

of up to four six-packs or two twelve-packs in a single

transaction, but may not sell more than twenty-four containers

in a single transaction. Such licenses shall be known as hotel

liquor licenses, restaurant liquor licenses and club liquor

licenses, respectively. No person who holds any public office

that involves the duty to enforce any of the penal laws of the

United States, this Commonwealth or of any political subdivision

of this Commonwealth may have any interest in a hotel or

restaurant liquor license. This prohibition applies to anyone

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

States attorneys, State attorneys general, district attorneys,

the ability to impose a criminal sentence. This section does not

apply if the proposed premises are located outside the

jurisdiction of the individual in question.

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

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

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

define what constitutes catering under this subsection except

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

purchased only from persons licensed under this act as

manufacturers or importing distributors, and in the case of

importing distributors, have been purchased from manufacturers

or persons outside this Commonwealth engaged in the legal sale

of malt or brewed beverages or from manufacturers or importing

distributors licensed under this article. In the case of an

importing distributor, the holder of such a license shall be

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

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

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

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

geographical area from selling the products of such manufacturer

to another importing distributor also holding distributing

rights from the same manufacturer for another geographical area,

providing such authority be contained in writing and a copy

thereof be given to each of the importing distributors so

affected.

* * *

Section 11. Section 437(e) of the act is amended to read:

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

* *

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

Section 438. Number and Kinds of Licenses Allowed Same

Licensee.--* * *

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

[distributor's or] importing distributor's license.

(b.1) A person may not possess or be issued more than four

distributor licenses or more than one distributor license in a

county.

malt or brewed beverages in quantities of less than a [case or

original containers containing one hundred twenty-eight ounces

or more which may be sold separately] six-pack, growler or

individually packaged twenty-two-ounce container: Provided, That

no malt or brewed beverages sold or delivered shall be consumed

upon the premises of the distributor or importing distributor,

or in any place provided for such purpose by such distributor or

importing distributor. Notwithstanding any other provision of

this section or act, malt or brewed beverages which are part of

a tasting conducted pursuant to the board's regulations may be

consumed on licensed premises.

ten feet wide] between a licensed business and another business.

[This subsection shall not prohibit the board from approving a

renewal application of a license, even if the licensed business

has an interior connection that is greater than ten feet wide to

an unlicensed business, if the board had approved the interior

connection prior to the effective date of this subsection.]

Section 15. Section 474.1(a) of the act, amended November

consecutive days or wine expanded permit holder that does not

sell wine as provided under section 415 during a fifteen-

consecutive-day period shall return its license for safekeeping

with the board no later than at the expiration of the fifteen-

day period. The license may only be reissued from safekeeping in

the manner set forth by the board through regulation.

* * *

Section 16. Section 488 of the act, added February 21, 2002

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

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

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

as provided for in this section may ship [up to nine liters per

month of any] wine [not included on the list provided for in

subsection (c)] on the [Internet] order of any resident of this

Commonwealth who is at least twenty-one (21) years of age for

such resident's personal use and not for resale.

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

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

(1) File an application with the board.

(2) Pay a registration fee of two hundred fifty dollars

($250).

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

current alcoholic beverage license issued by the board or

another state, if applicable.

(4) Provide documentation to the board which evidences that

the applicant has obtained a sales tax license from the

Department of Revenue.

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

board deems necessary and appropriate.

the authority of this section shall be subject to the following:

(i) The sales and use tax imposed by section 202 of the act

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

1971."

(ii) The sales and use tax imposed by Article XXXI-B of the

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

Class County Code."

emergency State tax on liquor, as herein defined, sold by the

Pennsylvania Liquor Control Board; providing for the collection

and payment of such tax; and imposing duties upon the Department

of Revenue and the Pennsylvania Liquor Control Board."

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

[into] to residents of this Commonwealth in the preceding

calendar year.

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

Secretary of Revenue, or their designated representatives, to

perform an audit of the out-of-State wine shipper's records upon

request.

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

resident of this Commonwealth.

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

shipped directly to a resident of this Commonwealth are

conspicuously labeled with the words "CONTAINS ALCOHOL:

SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED FOR

DELIVERY."

sold directly by the board. The wine will not be released by the

State store until all moneys due, including all taxes and fees,

have been paid by the resident.] delivered under the authority

of this section shall be subject to the following:

(1) The sales and use tax imposed by section 202 of the "Tax

Reform Code of 1971."

(2) The sales and use tax imposed by Article XXXI-B of the

"Second Class County Code."

(3) The sales and use tax imposed by the "Pennsylvania

Intergovernmental Cooperation Authority Act for Cities of the

First Class."

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

designated representatives, to inspect such records in

accordance with section 513.

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

Pennsylvania Liquor Store where the wine was delivered to

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

personal use.] Any person who resells wine obtained under this

Appropriations Committee and the Law and Justice Committee of

the Senate and to the Appropriations Committee and the Liquor

Control Committee of the House of Representatives summarizing

the number of direct shipper licenses issued by the board[,] and

the quantity of wine sold by direct wine shippers pursuant to

this section [and the total dollar value of sales under this

section].

(i) [The term "wine" as used in this section] As used in

this section, the following words and phrases shall have the

meanings given to them in this subsection:

"Direct wine shipper" shall mean a person who holds a direct

derived from malt, grain, cereal, molasses or cactus.

Section 17. Section 493(24) of the act, amended November 29,

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

Section 493. Unlawful Acts Relative to Liquor, Malt and

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

in this section, shall mean those persons licensed under the

provisions of Article IV, unless the context clearly indicates