PRINTER'S NO. 445
No. 437 Session of 1999
INTRODUCED BY GREENLEAF, TILGHMAN, HART AND SLOCUM,
FEBRUARY 22, 1999
REFERRED TO LAW AND JUSTICE, FEBRUARY 22, 1999
AN ACT
1 Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
2 reenacted, "An act relating to alcoholic liquors, alcohol and
3 malt and brewed beverages; amending, revising, consolidating
4 and changing the laws relating thereto; regulating and
5 restricting the manufacture, purchase, sale, possession,
6 consumption, importation, transportation, furnishing, holding
7 in bond, holding in storage, traffic in and use of alcoholic
8 liquors, alcohol and malt and brewed beverages and the
9 persons engaged or employed therein; defining the powers and
10 duties of the Pennsylvania Liquor Control Board; providing
11 for the establishment and operation of State liquor stores,
12 for the payment of certain license fees to the respective
13 municipalities and townships, for the abatement of certain
14 nuisances and, in certain cases, for search and seizure
15 without warrant; prescribing penalties and forfeitures;
16 providing for local option, and repealing existing laws,"
17 establishing the Liquor Law Enforcement Bureau, the Liquor
18 Licensing Bureau, the Liquor Licensing Hearing Bureau and the
19 Alcoholic Beverage Control Coordinating Council and providing
20 for their powers and duties; imposing a tax; and making
21 repeals.
22 The General Assembly of the Commonwealth of Pennsylvania
23 hereby enacts as follows:
24 Section 1. The definition of "enforcement bureau" in section
25 102 of the act of April 12, 1951 (P.L.90, No.21), known as the
26 Liquor Code, reenacted and amended June 29, 1987 (P.L.32,
27 No.14), is amended and the section is amended by adding
1 definitions to read:
2 Section 102. Definitions.--The following words or phrases,
3 unless the context clearly indicates otherwise, shall have the
4 meanings ascribed to them in this section:
5 * * *
6 "Department" shall mean the Department of Revenue of the
7 Commonwealth.
8 * * *
9 "Enforcement bureau" shall mean the [Bureau of] Liquor
10 [Control] Law Enforcement Bureau of the Pennsylvania State
11 Police.
12 * * *
13 "Private retail store" shall mean and include any premises
14 licensed by the department where wine and liquor, or only wine
15 is offered for sale or resale in the original sealed containers
16 as prepared for the market by the manufacturer or wholesale
17 distributor but not for consumption on the premises where sold.
18 "Private wholesale distributor" shall mean and include any
19 person licensed by the department who purchases wine or liquor
20 from the department, a manufacturer, another private wholesale
21 liquor distributor, or a private retail store for the purpose of
22 sale to any private retail store, to another private wholesale
23 distributor, or for export.
24 * * *
25 Section 2. Sections 211, 212, 213, 214 and 215 of the act
26 are repealed.
27 Section 3. The act is amended by adding sections to read:
28 Section 217. Liquor Law Enforcement Bureau.--The Liquor Law
29 Enforcement Bureau is hereby established within the Pennsylvania
30 State Police under the supervision and control of the
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1 Commissioner of the Pennsylvania State Police. This bureau shall
2 assume the responsibilities of the board with regard to the
3 prosecution of licensees for violations of the laws and
4 regulations of this Commonwealth relating to liquor. Alleged
5 criminal violations shall be prosecuted by the Attorney General
6 or local district attorneys before the courts of common pleas in
7 the manner provided by the act of October 15, 1980 (P.L.950,
8 No.164), known as the "Commonwealth Attorneys Act."
9 Section 218. Liquor Licensing Bureau.--The Liquor Licensing
10 Bureau is hereby established within the Department of Revenue to
11 permanently assume the responsibility to issue licenses for the
12 sale of wine and liquor for off-premises consumption and for
13 wholesale wine and liquor distribution and to assume the
14 responsibilities of the board with regard to the issuance,
15 renewal, transfer, exchange, suspension or revocation of
16 licenses. Prior notice of any proposed license issuance,
17 renewals, transfers, exchanges, suspensions or revocations shall
18 be provided by the Licensing Bureau to the Liquor Law
19 Enforcement Bureau.
20 Section 219. Liquor Licensing Hearing Bureau.--The Liquor
21 Licensing Hearing Bureau is hereby established within the
22 Department of Revenue to conduct adjudications regarding any
23 refusals to issue, renew, transfer or exchange a license or any
24 suspension or revocation of licenses, bond forfeitures and other
25 civil fines and penalties. Initial decisions of the hearing
26 bureau shall be made by hearing examiners learned in the law and
27 may be appealed to a three-person hearing board established
28 within the hearing bureau by the Alcoholic Beverage Control
29 Coordinating Council. Hearings and appeals from decisions of the
30 hearing board shall be as provided in Title 2 of the
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1 Pennsylvania Consolidated Statutes (relating to administrative
2 law and procedure).
3 Section 220. Alcoholic Beverage Control Coordinating
4 Council.--(a) The Alcoholic Beverage Control Coordinating
5 Council is hereby established as an advisory board within the
6 Executive Office of the Governor to supervise the
7 administration, implementation and enforcement of the laws of
8 this Commonwealth relating to alcoholic beverages and to perform
9 the powers and duties assigned to the council pursuant to this
10 section.
11 (b) The council shall consist of the Secretary of
12 Agriculture, the Secretary of the Budget, the Secretary of
13 Environmental Protection, the Secretary of General Services, the
14 Secretary of Health, the Secretary of Revenue, the Commissioner
15 of the Pennsylvania State Police and the Majority and Minority
16 Leaders of the Senate and the House of Representatives or their
17 designees. The Governor shall designate a member of the council
18 to serve as chairman. The council may appoint any staff
19 necessary to assist in the discharge of its duties and
20 responsibilities.
21 (c) The function of the council shall be to provide for
22 planning, oversight and coordination of the activities of State
23 agencies involved in the regulation of alcoholic beverages. The
24 council shall not permanently assume any direct responsibilities
25 for the administration, regulation and control of alcoholic
26 beverages.
27 (d) Within the limits of available Commonwealth resources,
28 the council shall develop plans to be approved by the Secretary
29 of Administration for the transfer to other State agencies of
30 employes of the board not transferred to the Department of
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1 Revenue, the Pennsylvania State Police or other departments.
2 (e) This section shall expire two years from the effective
3 date of this section.
4 Section 4. The act is amended by adding an article to read:
5 ARTICLE VIII-A.
6 PRIVATE RETAIL AND WHOLESALE SALE OF WINE
7 AND LIQUOR FOR OFF-PREMISES CONSUMPTION.
8 Section 801-A. Legislative Intent.--It is the purpose of
9 this article to deregulate the retail and wholesale sale of
10 liquor and wine for off-premises consumption in order to provide
11 Pennsylvania consumers with the improved service, enhanced
12 supply availability and lower prices which result from vigorous
13 competition in the free enterprise system. It is the intent of
14 the General Assembly to accomplish deregulation in a manner
15 which minimizes any disruption of service to the public,
16 maximizes opportunities for small business and minority business
17 in Pennsylvania, makes fair and reasonable provisions to avoid
18 hardships to employes of State liquor stores, maintains the
19 degree of control over the distribution of liquor and wine
20 necessary to avoid the infiltration of the industry by organized
21 crime and other corrupt influences, discourages alcohol abuse
22 and preserves adequate tax revenue to the Commonwealth.
23 Section 802-A. Restrictions on the Private Retail and
24 Wholesale Wine and Liquor System.--The provisions of this act,
25 except as otherwise provided, shall apply to the private retail
26 and wholesale system for the sale of wine and liquor only as
27 provided in this article.
28 Section 803-A. Detailed Plan for Deregulation.--Within
29 ninety days of the effective date of this section, the
30 department shall cause to be published, in conformity with the
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1 requirements of this section, as a notice in the Pennsylvania
2 Bulletin, as provided by 45 Pa.C.S. § 725(a)(3) (relating to
3 additional contents of Pennsylvania Bulletin), a detailed
4 proposed plan for the disposition of the State store system
5 which provides for the continued operation of each State-owned
6 liquor store for up to ninety days following the auction of the
7 right to purchase the property of the store. The department
8 shall further provide for the continued operation of liquor
9 wholesale distribution for a maximum period of twelve months to
10 provide an adequate supply of consumer products and services
11 during the phase-in of operations of private retail outlets and
12 wholesale distributors. Each State-owned liquor store may remain
13 in operation for not more than forty-five days, but not later
14 than June 30, 2001, following the opening of a substitute
15 privately licensed wine and liquor store in order to assure
16 adequate continuity of services to the public. Upon the
17 termination of operations of any State liquor store, its
18 property, fixtures and surplus inventory shall be sold to the
19 successful bidder upon the terms of the winning bid at auction.
20 Section 804-A. Phase One of Deregulation.--(a) Not later
21 than September 1, 2000, the department shall conduct public
22 sales to the highest responsible bidders of exclusive three year
23 licenses to make retail sales of liquor and wine for off-
24 premises consumption. The public sales and operation of the
25 stores shall conform to the following procedure:
26 (1) The department shall offer for sale a license to replace
27 each of the State liquor stores operating on January 1, 2000.
28 (2) The department shall offer for sale, together with the
29 license, all of the stock of wine and liquor, equipment and
30 other assets of the State liquor store. Prior to the sale, the
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1 department shall make available for public inspection the most
2 recent inventory of the stock, equipment and other assets of
3 each State liquor store, as well as a recent sales history for
4 each State liquor store. Bids will be accepted only for licenses
5 together with acquisition of the stock, equipment and other
6 assets of the respective State liquor store.
7 (3) The department may establish a staggered schedule of
8 sales of licenses between May 1, 2000, and September 1, 2000, in
9 order to maintain the operation of certain State liquor stores
10 during the sale of others and thereby maintain a continuous
11 level of service to the public.
12 (4) Each successful bidder must satisfy all of the licensing
13 requirements of sections 806-A and 807-A and pay any required
14 license fees, in addition to amounts bid to acquire retail
15 operating rights.
16 (5) Each successful bidder must agree to continuously
17 operate a retail store for the duration of the license and to
18 provide a level of service, including, but not limited to, hours
19 of operation and product availability, reasonably equivalent to
20 the level of service provided by the State liquor store which
21 the retail store replaces. The department may, either on its own
22 motion or following the investigation of complaints from
23 residents of the affected community by the Pennsylvania State
24 Police, revoke the license of any retail store not operating an
25 establishment or not providing a reasonable level of consumer
26 service. Following the revocation of any license to operate a
27 retail store, the department shall conduct a public sale to
28 grant to the highest responsible bidder a replacement license
29 for the duration of the three year license period.
30 (6) Each retail store shall be located within a prescribed
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1 radius of the State liquor store which it replaces based on the
2 characteristics of the community in which the State liquor store
3 is located, based on area definitions as used in the 2000 census
4 of population. If the State liquor store is within an urbanized
5 area, the store shall be within a one mile radius. If the State
6 liquor store is outside the urbanized area but within a Standard
7 Metropolitan Statistical Area (SMSA), the store shall be within
8 a four mile radius. In all other circumstances, the store shall
9 be within a ten mile radius. The department may expand or reduce
10 the required radius for good cause shown following public
11 hearings.
12 (7) Any single individual, corporation or association shall
13 be allowed to hold no more than ten licenses for private retail
14 wine and liquor stores.
15 (8) Each successful bidder for a license shall be entitled
16 to apply to the department, within two years of the award of a
17 license, for one additional license to operate a store at any
18 location within the county in which the original license was
19 granted, or in a county contiguous with such county. An
20 additional license shall not be granted, and any additional
21 license granted may be subject to revocation, if the licensee is
22 not operating a store authorized by the original license or is
23 not providing a reasonable level of consumer service.
24 (9) Any licenses authorized but not issued under clause (8)
25 may, following two years of the awarding of initial licenses, be
26 sold at public sale to the highest responsible bidder.
27 (10) All proceeds of sales of licenses shall be deposited in
28 the Liquor System Deregulation Account and shall be utilized
29 pursuant to the provisions of section 812-A.
30 (11) The department shall, in its announcement of each sale
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1 of licenses, establish the schedule, terms, conditions,
2 limitations and procedures for submission, consideration and
3 award of bids. The decision of the department to accept or
4 reject any bid shall be final and is not appealable as an
5 adjudication.
6 (b) (1) Between April 1, 2000, and June 30, 2000, the
7 department will accept and review applications for private
8 wholesale wine distributor licenses pursuant to the requirements
9 of sections 806-A and 809-A.
10 (2) In addition to other licensing requirements, initial
11 applicants must indicate each brand of wine which the
12 distributor intends to sell and estimate the anticipated volume
13 of sales for each brand.
14 (3) Initial private wholesale wine distributor licenses will
15 be granted by the department beginning July 1, 2000. Each
16 initial licensee shall be assigned by the department an
17 allocation of the remaining stock of any wine owned by the
18 department and held in any wholesale warehouse. Allocations
19 shall be made separately for each brand of wine held by the
20 department and assigned to each initial licensee based on the
21 brands indicated in the license application and upon the
22 estimated sales volume of the licensee. Each licensee shall
23 agree to purchase, prior to making any other purchases of each
24 brand of wine, the outstanding stock of the department of the
25 brand allocated to the licensee, at the cost of the wine to the
26 department plus a twenty-five per centum markup. Between July 1,
27 2000, and July 1, 2001, no private wholesale licensee may sell
28 or offer for sale any brand of wine not identified in the
29 license application. Any brand of wine in the wholesale
30 inventory of the department which cannot be reasonably allocated
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1 to licensees, either because of insufficient stock held by the
2 department, or because of a lack of sufficient interest in such
3 brands by licensees, and any other stocks of wine held by the
4 department in wholesale inventory and not sold by January 1,
5 2001, may at the discretion of the department either be disposed
6 of at public sale to the highest responsible bidder, or else
7 assigned to all initial wholesale licensees based on their total
8 estimated sales volumes. The initial licensees must agree to
9 purchase any wine so allocated from the department at the cost
10 of such wine to the department plus a twenty-five per centum
11 markup.
12 (c) Beginning April 1, 2001, the department will accept and
13 review additional applications for private wholesale wine
14 distributor licenses pursuant to the requirements of sections
15 806-A and 809-A. The additional licenses shall be awarded by the
16 department commencing July 1, 2001.
17 (d) Beginning September 1, 2000, the department shall
18 accept, review and grant private retail wine licenses pursuant
19 to the provisions of sections 806-A and 808-A.
20 Section 805-A. Phase Two of Deregulation.--(a) Between July
21 1, 2001, and September 30, 2001, the department shall accept and
22 review initial private wholesale liquor distributor applications
23 pursuant to the requirements of sections 806-A and 809-A in
24 accordance with the following procedure:
25 (1) Initial license applicants must specify each brand of
26 liquor the applicant intends to distribute, and for each brand
27 must estimate the anticipated sales volume.
28 (2) The department shall award initial licenses commencing
29 October 1, 2001.
30 (3) Each initial licensee shall be assigned by the
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1 department an allocation of the remaining stock of any liquor
2 owned by the department and held in any wholesale warehouse.
3 Allocations shall be made separately for each brand of liquor
4 held by the department and assigned to each initial licensee
5 based on the brands indicated in the license application and
6 based upon the cost of the liquor to the department plus a
7 twenty-five per centum markup. Each licensee shall, prior to
8 making any other purchases of each brand of liquor, agree to
9 purchase the outstanding stock of the department of the brands
10 allocated to the licensee. Between October 1, 2001, and October
11 1, 2002, no private wholesale liquor licensee may sell or offer
12 for sale any brand of liquor not identified in the license
13 application. Any brands of liquor in the wholesale inventory of
14 the department which cannot reasonably be allocated to
15 licensees, either because of inadequate stock held by the
16 department, or because of a lack of sufficient interest in such
17 brands by licensees, and any other stock of liquor held by the
18 department in wholesale inventory and not sold by March 1, 2002,
19 may at the discretion of the department either be disposed of at
20 public sale to the highest responsible bidder, or else assigned
21 to all initial wholesale licensees based on their total
22 estimated sales volumes. The initial licensees must agree to
23 purchase any liquor so allocated at the cost of the liquor to
24 the department plus a twenty-five per centum markup.
25 (b) Additional applications for private wholesale liquor
26 distributor licenses will be accepted by the department
27 commencing July 1, 2002, and additional licenses may be awarded
28 commencing October 1, 2002, pursuant to the requirements of
29 section 808-A.
30 (c) Private wholesale liquor licensees authorized pursuant
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1 to this section may sell liquor only to private retail wine and
2 liquor stores located within the same marketing region, as
3 established by the department, in which the premises of the
4 wholesale liquor licensee are located. The department shall not
5 authorize any private wholesale licensee to operate at a
6 premises within more than one such marketing region.
7 (d) (1) Commencing August 1, 2003, the department may grant
8 and renew private retail wine and liquor licenses subject to the
9 provisions of sections 806-A and 807-A. In addition to the
10 limitations provided by section 810-A, the department may limit
11 the number of licenses granted in any geographical location.
12 Private retail wine and liquor licenses shall be granted
13 pursuant to this section to qualified applicants upon the
14 payment of proper fees and the posting of required bonds, but
15 without the requirement to purchase the license by competitive
16 bidding.
17 (2) Restrictions upon the operation of retail wine and
18 liquor licensees established pursuant to section 804-A(a)(6) and
19 (7) and wholesale liquor licensees established pursuant to
20 section 805-A(c) shall be rescinded, effective August 1, 2003.
21 Section 806-A. General License Requirements.--(a) Every
22 applicant for a license for a private retail liquor and wine
23 store pursuant to section 807-A, for a private retail wine store
24 pursuant to section 808-A, or for a private wholesale liquor
25 distributorship, or a private wholesale wine distributorship
26 pursuant to section 809-A, shall comply with the requirements of
27 this section.
28 (b) Each applicant shall file a written application with the
29 department in the form and containing such information as the
30 department shall from time to time prescribe. The application
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1 shall be accompanied by a filing fee in an amount determined by
2 the department sufficient to cover costs related to reviewing
3 and processing license applications. The department may
4 establish a schedule of fees for various types of licenses and
5 vary the license fee charged based on the volume of sales
6 anticipated.
7 (c) With each initial application, every applicant shall
8 provide a financial statement in the form and containing such
9 information as the department shall from time to time prescribe
10 to indicate the applicant's financial capability to provide a
11 reasonable level of service to the public or to retail stores
12 and the estimated volume of business to be conducted in this
13 Commonwealth.
14 (d) With each initial application and each renewal, the
15 applicant shall identify the location and ownership of the
16 proposed site or sites for the operation of licensed activities.
17 (e) If the applicant is a corporation, the application must
18 show that the corporation was created under the laws of this
19 Commonwealth or holds a certificate of authority to transact
20 business in this Commonwealth.
21 (f) Each application shall be signed and verified by oath or
22 affirmation by the owner, if a natural person, or, in the case
23 of an association, by a member or partner thereof, or, in the
24 case of a corporation, by an executive officer thereof or any
25 person specifically authorized by the corporation to sign the
26 application, to which shall be attached written evidence of his
27 authority. If the applicant is an association, the application
28 shall set forth the names and addresses of the persons
29 constituting the association, and if a corporation, the names
30 and addresses of the principal officers and stockholders
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1 thereof.
2 (g) Every applicant for a new or renewal license must
3 demonstrate that all taxes due and payable to the Commonwealth
4 have been paid for the most recently completed accounting period
5 and that no delinquent tax payments are outstanding for prior
6 periods.
7 (h) The department shall not grant a license to any
8 applicant if:
9 (1) the applicant or any person directly or indirectly
10 interested in the license holds, either by appointment or
11 election, any public office.
12 (2) the applicant has been convicted of a felony within the
13 five (5) years immediately preceding the date of application;
14 (3) the applicant receives funds for the financing of any
15 part of the private retail liquor store from any individual who
16 has been convicted of a felony within the five years immediately
17 preceding the date of application;
18 (4) the applicant or any persons with a financial interest
19 in the license are under indictment for a felony or under
20 investigation by a legally constituted grand jury. In such
21 instance, the department shall withhold approval or disapproval
22 of the license until such time as all legal proceedings related
23 to the felony are resolved; or
24 (5) the applicant, or any person with a financial interest
25 in a license granted pursuant to this article, holds a license
26 or permit for the manufacture of liquor, wine, malt or brewed
27 beverages.
28 (i) The department may require licensees to post bonds in
29 amounts determined by the department pursuant to section 465.
30 (j) All applications for licenses shall be thoroughly
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1 reviewed by the department, by the enforcement bureau and by
2 appropriate law enforcement agencies before approval or
3 disapproval. Reviews shall include thorough review of the
4 required financial statement and any other information which
5 shall be required by the department. Upon review of the
6 application and upon receipt of the proper fees and bond, and
7 upon being satisfied that the statements in the application are
8 true, that the applicant is a person of good repute, that the
9 applicant meets all the requirements of this article and the
10 regulations of the department, and that the issuance of the
11 license is not prohibited by any of the provisions of this
12 article, the department shall grant and issue to the applicant a
13 license.
14 (k) If any false statement is intentionally made in any part
15 of the application, the affiant shall be deemed guilty of a
16 misdemeanor of the second degree and, upon conviction, shall be
17 subject to the penalties provided by Title 18 of the
18 Pennsylvania Consolidated Statutes (relating to crimes and
19 offenses).
20 (l) Licenses shall be nontransferable and nonassignable from
21 one person to another except upon death of the licensee, in
22 which case the transfer of the license to a member of the
23 immediate family may be provided for by regulation of the
24 department, but the license may be transferred from one location
25 to another only through reapplication to the department.
26 (m) Licenses shall be revocable by the Pennsylvania State
27 Police for cause.
28 (n) The department may divide the State into convenient
29 license districts and may hold hearings on applications for
30 licenses and renewals thereof, as it deems necessary, at a
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1 convenient place or places in each of the districts, at such
2 times as it shall fix for the purpose of hearing testimony for
3 and against applications for new licenses and renewals thereof.
4 (o) All licensees shall maintain on any licensed premises
5 such records as the department may prescribe.
6 (p) The term of any license granted shall be up to five
7 years, as determined by the department. The department may
8 establish a staggered schedule of license expiration and renewal
9 dates to facilitate the efficient processing of license renewal
10 applications.
11 (q) Licenses granted by this article shall not be subject to
12 sections 407, 461, 468, 491(2), 492(19) and (20) and 493(2), nor
13 to the act of June 24, 1939 (P.L.806, No.358), entitled "An act
14 limiting the number of licenses for the retail sale of liquor,
15 malt or brewed beverages, or malt and brewed beverages, to be
16 issued by the Pennsylvania Liquor Control Board; defining
17 hotels, and prescribing the accommodations required of hotels in
18 certain municipalities."
19 Section 807-A. Private Retail Wine and Liquor Store
20 Licenses.--(a) Subject to this article and the regulations
21 promulgated under this article, the department shall have
22 authority to issue a private retail wine and liquor license to a
23 person, corporation or association for any premises for the
24 purpose of establishing, operating and maintaining a private
25 retail wine and liquor store. The licenses shall entitle the
26 private retail wine and liquor store to purchase liquor and wine
27 from private wholesale distributors or from the department and
28 to keep on the premises such liquor and wine and, subject to
29 this article and the regulations made hereunder, to sell the
30 same for off-premises consumption, and to any hotel, restaurant,
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1 club or other establishment authorized to sell wine and liquor
2 for on-premises consumption under this act.
3 (b) Every applicant for a new license or for the transfer of
4 an existing license to another premises not then licensed shall
5 post, for a period of at least fifteen days beginning with the
6 day the application is filed with the department, in a
7 conspicuous place on the outside of the premises or at the
8 proposed new location for which the license application is made,
9 a notice of the application, in such form, of such size, and
10 containing such information as the department may require by
11 regulation. Proof of the posting of the notice shall be filed
12 with the department.
13 (c) The premises of all private retail wine and liquor
14 stores shall be self-contained units with limited customer
15 access. All purchases made within the premises shall be paid for
16 at a location within the confines of the wine and liquor sales
17 area.
18 (d) Every license application for a private retail wine and
19 liquor store shall contain a description of the premises for
20 which the applicant desires a license. The application shall
21 also set forth such other material, information and a
22 description or plan of the premises where it is proposed to keep
23 and sell liquor as may be required by regulation of the
24 department.
25 (e) The descriptions, information and plans referred to in
26 this section shall show the proposed location at the time the
27 application is made, and shall show any alterations proposed to
28 be made thereto, or the new building proposed to be constructed
29 after the approval by the department of the application for a
30 license or for the transfer of an existing license to another
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1 premises not then licensed. No physical alterations,
2 improvements or changes shall be required to be made nor shall
3 any new building for any such purpose be required to be
4 constructed until approval of the application for license or for
5 the transfer of an existing license to another premises not then
6 licensed by the department.
7 (f) In the case of any new license or the transfer of any
8 license to a new location, the department may, in its
9 discretion, grant or refuse a new license or transfer if the
10 place proposed to be licensed is within three hundred feet of
11 any church, hospital, charitable institution, school or public
12 playground, or if the new license or transfer is applied for at
13 a place which is within two hundred feet of any other premises
14 which is licensed by the department. The department shall refuse
15 any application for a new license or the transfer of any license
16 to a new location if, in the board's opinion, the new license or
17 transfer would be detrimental to the welfare, health, peace and
18 morals of the inhabitants of the neighborhood within a radius of
19 five hundred feet of the place proposed to be licensed.
20 (g) Private retail wine and liquor stores may sell related
21 merchandise within the controlled area of the store. The
22 department shall promulgate regulations stipulating the
23 additional related merchandise that may be offered for retail
24 sale in private retail wine and liquor stores, but no licensee
25 shall engage on the same premises in the retail sale of motor
26 fuel.
27 (h) No liquor or wine package shall be opened on the
28 premises of a private licensed retail store. No licensee nor any
29 employe of any licensee shall allow any liquor or alcohol to be
30 consumed on the premise, nor shall any person consume any liquor
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1 on the premises.
2 Section 808-A. Private Retail Wine Licenses.--(a) Subject
3 to this article and the regulations promulgated hereunder, the
4 department shall have the authority to issue a private retail
5 wine license to a person, corporation or association for any
6 premises for the purpose of establishing, operating and
7 maintaining a private retail wine store. The licenses shall
8 entitle the private retail wine store to purchase wine from
9 private licensed distributors or from the department, to keep on
10 the premises such wine, subject to this article and the
11 regulations made hereunder, and to sell the same for off-
12 premises consumption, and to any hotel, restaurant, club or
13 other establishment authorized to sell wine for on-premises
14 consumption under this act. Private wine licenses shall be
15 available to grocery stores and convenience stores. In the case
16 of a grocery store or a convenience store, to the extent
17 possible, the wine shall be located in one section of the store.
18 (b) Any private retail wine store shall also comply with the
19 requirements of section 807-A, except for subsection (c).
20 Section 809-A. Private Wholesale Distributor Licenses.--(a)
21 Subject to the provisions of this article, and the regulations
22 promulgated under this article, the department shall have the
23 authority to issue private liquor wholesale distributor licenses
24 and private wine wholesale distributor licenses.
25 (b) The license shall entitle the licensee to sell wine or
26 liquor to the department, to any private retail store licensed
27 under this article, to any hotel, restaurant, club or other
28 establishment authorized to sell wine and liquor for on-premises
29 consumption pursuant to this act, to pharmacists, hospitals,
30 armed forces facilities under section 305(b), to another
19990S0437B0445 - 19 -
1 wholesale distributor licensed under this section, or to export
2 wine or liquor from this Commonwealth.
3 (c) The license shall entitle the licensee to purchase wine
4 or liquor from the department, from any Pennsylvania or
5 nonresident manufacturer, from any out-of-State retail store,
6 from any out-of-State wholesaler, from any wholesale distributor
7 licensed under this section, or from any private retail store
8 licensed under this article.
9 (d) Each licensed wholesaler shall establish one or more
10 warehouses for the storage and distribution of wine or liquor at
11 locations approved by the department. A separate application
12 shall be submitted, and a separate application fee paid, for
13 each warehouse licensed pursuant to this section. All wine or
14 liquor sold to private retail stores licensed pursuant to this
15 article shall be distributed through a warehouse located within
16 this Commonwealth.
17 (e) No wine or liquor package shall be opened on the
18 premises of a licensed wholesale distributor. No licensee nor
19 employe of any licensee shall allow any wine or liquor to be
20 consumed on the premises, nor shall any person consume any
21 liquor on the premises.
22 (f) No private wholesale distributor of liquor, or any
23 person with a financial interest in a wholesale license for the
24 distribution of liquor, may hold a private retail store license
25 granted under this article.
26 Section 810-A. Local Option.--(a) The governing body of any
27 municipality may, within one year of the effective date of this
28 section, and not more often than once every fourth year
29 thereafter, consider the adoption or rescission, and adopt or
30 rescind an ordinance prohibiting the location of any new private
19990S0437B0445 - 20 -
1 retail store, or the continuation of operations at any existing
2 private retail store beyond the renewal date of the license.
3 (b) The governing body of any municipality may at any time
4 adopt ordinances regulating the hours of operation, prohibiting
5 Sunday sales, or specifying permissible locations for the
6 operation of private retail stores.
7 (c) Separate ordinances may be adopted for each part of a
8 municipality that is split so that each part thereof is
9 separated by another municipality.
10 (d) Separate ordinances may be adopted with respect to
11 private retail wine and liquor stores licensed pursuant to
12 section 807-A and private retail wine stores licensed pursuant
13 to section 808-A.
14 (e) Private retail store licenses shall not be granted
15 within any municipality which, on the effective date of this
16 article, has prohibited the operation of wholesale distributors
17 of malt or brewed beverages or Pennsylvania liquor stores
18 pursuant to section 472, unless such municipality adopts an
19 ordinance permitting the operation of private retail wine and
20 liquor stores or private retail wine stores, or both, within the
21 municipality, or within a split part of a municipality separated
22 by another municipality. An ordinance permitting licensed
23 activities within either part of a municipality that is split
24 shall be required, even if operations pursuant to section 472
25 were prohibited only in one part of such municipality.
26 (f) Prior to considering the adoption of any ordinance
27 pursuant to this section, the governing body of the municipality
28 shall hold one or more public hearings, and may conduct an
29 advisory referendum.
30 (g) Any municipality adopting an ordinance pursuant to this
19990S0437B0445 - 21 -
1 section shall file a copy of such regulation with the department
2 at least thirty days prior to the effective date of the
3 ordinance.
4 (h) Any private retail liquor store operating within a
5 municipality adopting an ordinance prohibiting operations within
6 the municipality may, with the approval of the department,
7 notwithstanding section 804-A(a)(6), transfer a licensed premise
8 to any other municipality which has not adopted any such
9 ordinance.
10 Section 811-A. Prohibited Acts and Offenses.--Except as
11 provided by this article, private retail and wholesale licensed
12 establishments operated under this article shall be subject to
13 sections 492, 493, 494, 509, 510, 518 and 519 and Article VI. No
14 licensee, however, shall be restricted, except as otherwise
15 provided by this article, with respect to advertising of the
16 price and brand of any liquor or wine, offering sales, rebates,
17 refunds, discounts, establishing the price of any liquor or
18 wine, stocking of merchandise, presentation of products or
19 offering of brands for sale.
20 Section 812-A. Liquor System Deregulation Account.--(a) All
21 funds collected by the department from the sale of private
22 retail wine and liquor licenses during phase one of
23 deregulation, except for amounts determined by the department to
24 have been collected from the sale of inventory, equipment and
25 fixed assets of State liquor stores, shall be deposited into a
26 restricted receipt account within the State Store Fund known as
27 the Liquor System Deregulation Account, which is hereby
28 established. All other license fees, fines and penalties
29 collected pursuant to this article, and amounts collected from
30 the sale of inventory, equipment and fixed assets of State
19990S0437B0445 - 22 -
1 liquor stores shall be paid into the State Store Fund without
2 restriction. Amounts deposited in the State Store Fund, without
3 restriction, may be utilized to pay the costs of administration,
4 licensing and enforcement by the department and the enforcement
5 bureau pursuant to this article, and for any other purpose
6 authorized by law.
7 (b) All funds in the Liquor System Deregulation Account
8 shall be utilized in the following manner:
9 (1) The sum of ten million dollars ($10,000,000) is hereby
10 appropriated to the Department of Commerce for the purpose of
11 guaranteeing loans to the former employes of State liquor stores
12 for the purpose of acquiring licenses pursuant to this article.
13 (2) All other funds in the account are hereby appropriated
14 to the Department of Education for the purpose of providing
15 grants to public elementary and secondary schools, vocational-
16 technical schools, community colleges, State System of Higher
17 Education and State-related institutions of higher education.
18 (c) Upon the approval of the Governor, the State Treasurer
19 is hereby authorized and directed to transfer from the General
20 Fund to the State Store Fund amounts determined by the
21 department to be necessary to finance the costs of deregulation
22 under this article, provided that all funds transferred during a
23 fiscal year shall be returned to the General Fund not later than
24 thirty days after the end of such fiscal year.
25 Section 813-A. Taxation.--(a) The tax imposed by the act of
26 December 5, 1933 (Sp.Sess., P.L.38, No.6), known as the
27 "Spirituous and Vinous Liquor Tax Law," shall be collected,
28 reported and paid by any Pennsylvania manufacturer, or from the
29 first licensed wholesale distributor, of distilled spirits,
30 rectified spirits or wines importing such products produced by
19990S0437B0445 - 23 -
1 nonresident manufacturers into this Commonwealth. All reports
2 shall be filed and labels affixed by the appropriate
3 manufacturer or distributor.
4 (b) The tax imposed upon wine and liquor by Article II of
5 the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform
6 Code of 1971," shall be collected, reported and paid by retail
7 stores licensed pursuant to this article, or by the department
8 for sales by State liquor stores.
9 (c) There is hereby imposed a tax at the rate of eighteen
10 per centum of the net price of all liquors sold by private
11 retail stores or the department. The tax shall be collected by
12 private retail stores or by the department from purchasers of
13 liquor and paid into the State Treasury, through the department
14 in the same manner and at the same times as provided for the
15 sales tax imposed by Article II of the "Tax Reform Code of
16 1971." This tax shall apply to any alcoholic, spiritous, vinous,
17 fermented or otherwise alcoholic beverage, or by combination of
18 liquors and mixed liquor, a part of which is spiritous, vinous,
19 fermented, or otherwise alcoholic, and all drinks or drinkable
20 liquids, preparations or mixtures intended for beverage
21 purposes, which contain more than one-half of one per centum of
22 alcohol by volume, except alcohol and malt or brewed beverages.
23 The tax may be added to wholesale and retail prices at which
24 liquor is sold or to eliminate any accounting of such tax
25 separate from sales prices. The amount of tax for any taxable
26 period shall be ascertained by dividing the entire gross
27 receipts derived from sales by private retail stores or by the
28 department during such taxable period by six and five-ninths,
29 and the quotient thus obtained shall be deemed the amount of the
30 tax for such taxable period payable, under this section.
19990S0437B0445 - 24 -
1 (d) (1) One per centum of the revenue raised from the tax
2 imposed under subsection (c) shall be annually transferred to
3 the Department of Health for use by the Office of Drug and
4 Alcohol Programs, or its successor in function, for the
5 following purposes:
6 (i) Treatment and rehabilitation of persons addicted to the
7 excessive use of alcoholic beverages.
8 (ii) Promotion of education, prevention and early
9 intervention programs designed to eliminate abuse and addiction
10 to alcohol or other mood-altering substances or secure
11 appropriate treatment for the already addicted.
12 (iii) Study of the problem of addiction.
13 (2) Ten per centum of the revenue raised from the tax
14 imposed under subsection (c) shall be annually transferred to
15 the Department of Education for the purposes of providing grants
16 as provided for under section 812-A(b)(2).
17 Section 814-A. Displaced employes.--(a) Any individual or
18 group of displaced employes desiring to acquire a private retail
19 wine and liquor license, or a private retail wine-only license,
20 shall be eligible to apply to the Department of Commerce for a
21 loan guarantee of up to seventy per centum of the amount
22 borrowed to purchase a license, and to acquire, stock and equip
23 a retail store. The Department of Commerce shall establish
24 regulations to determine the eligibility of loan guarantee
25 applicants, procedures for filing a loan guarantee application,
26 priorities for the award of loan guarantees, and other rules,
27 procedures and guidelines necessary to administer the loan
28 guarantee program.
29 (b) (1) In the case of a position with the Liquor Control
30 Board, Liquor Law Enforcement Bureau, Liquor Licensing Bureau or
19990S0437B0445 - 25 -
1 Liquor Licensing Hearing Bureau where no civil service
2 examination is required, any employe displaced because of the
3 provisions of this section who possesses the requisite
4 qualifications and is eligible to appointment to or promotion in
5 a public position shall be given a preference in the appointment
6 or promotion by the appointing power.
7 (2) In the case of a position with the Liquor Control Board,
8 Liquor Law Enforcement Bureau, Liquor Licensing Bureau or Liquor
9 Licensing Hearing Bureau where a civil service examination is
10 required, any employe displaced because of the provisions of
11 this section who successfully passes the civil service
12 appointment or promotional examination shall be marked or graded
13 an additional ten points above the mark or grade credited for
14 the examination, and the total mark or grade thus obtained shall
15 represent the final mark or grade of such employe and shall
16 determine his standing on any eligible or promotional list
17 certified or furnished to the appointing or promoting power.
18 (3) This subsection shall expire two years from the
19 effective date of this section.
20 (c) Notwithstanding any provision of 71 Pa.C.S. (relating to
21 State government) to the contrary, any employe displaced because
22 of the provisions of this section who is a member of the State
23 Employees' Retirement System shall be credited with an
24 additional ten per centum of his service if he retires within
25 two years from the effective date of this section.
26 Section 5. (a) The following acts and parts of acts are
27 repealed:
28 Act of June 9, 1936 (1st Sp.Sess. P.L.13, No.4), entitled, as
29 reenacted and amended "An act imposing an emergency State tax on
30 liquor, as herein defined, sold by the Pennsylvania Liquor
19990S0437B0445 - 26 -
1 Control Board; providing for the collection and payment of such
2 tax; and imposing duties upon the Department of Revenue and the
3 Pennsylvania Liquor Control Board."
4 The last sentence of section 1 of the act of May 25, 1939
5 (P.L.191, No.99), entitled "An act authorizing transfers of sums
6 of money from the General Fund to the State Stores Fund under
7 certain conditions; providing for subsequent transfers of equal
8 sums from the State Stores Fund to the General Fund; and making
9 appropriations necessary to effect such transfers."
10 (b) All other acts and parts of acts are repealed insofar as
11 they are inconsistent with this act.
12 Section 6. This act shall take effect immediately.
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