HB 828 — An Act amending the act of April 12, 1951 (P.L.90, No.21), known as the Liquor Code, in licenses and regulations for liquor, alcohol and malt and brewed beverages, further providing for license auction.

PRIOR PRINTER'S NO.

859 THEPRINTER'S GENERALNO. ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of 2025 No.

2105 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of 2025 No.

BROWNBROWN, SMITH AND SMITH,MENTZER, MARCH 10, 2025 REFERREDAS TOREPORTED FROM COMMITTEE ON LIQUOR CONTROL, MARCHHOUSE 10,OF REPRESENTATIVES, AS AMENDED, JULY 9, 2025 AN ACT Amending the act of April 12, 1951 (P.L.90, No.21), entitled "An act relating to alcoholic liquors, alcohol and malt and brewed beverages;

providing for the establishmentpayment andof operationcertain oflicense Statefees liquorto stores,the respectives, municipalities and townships, for the abatement of certain nuisances and, in certain cases, for search and seizure without warrant;

Section 470.3(a.1)(2), (h), (i) and (k) of the <-- act of April 12, 1951 (P.L.90, No.21), known as the Liquor Code, are amended and the section is amended by adding a subsection to read:

License Auction.--* * * (a.1)SECTION *1. * * (2) [Any licenses not sold shall be available for sale at future auctions, provided, however, that no] No more than fifty licenses shall be auctioned in any county per year.

SECTION 470.3(A), (A.1)(2), (H), (I) AND (K) OF <-- THE ACT OF APRIL 12, 1951 (P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, ARE AMENDED AND THE SECTION IS AMENDED BY ADDING SUBSECTIONS TO READ:

SECTION 470.3.

LICENSE AUCTION.--(A) A RESTAURANT LIQUOR LICENSE SHALL BECOME AVAILABLE FOR AUCTION BY THE BOARD UNDER THE FOLLOWING CONDITIONS:

(1) THE LICENSE HAS NOT BEEN RENEWED UNDER SECTION 470;

(2) THE LICENSE HAS BEEN REVOKED UNDER SECTION 471;

[OR] (3) THE LICENSEE HAS FAILED TO MEET THE REQUIREMENTS UNDER SECTION 474.1[.];

OR (4) THE LICENSE HAS BEEN ADMINISTRATIVELY REVOKED UNDER SECTION 470.4.

(a.1) * * * (2) [Any licenses not sold shall be available for sale at future auctions, provided, however, that no] No more than fifty licenses shall be auctioned in any county per year.

Payment] Within six months THIRTY DAYS <-- of being awarded a license, payment shall be by cashier's check, certified check or any other method acceptable to the board.

If the winning bidder does not pay the bid amount within [two weeks] six months,months THIRTY DAYS, the second highest bidder shall <-- be awarded the right to file an application for the license, so long as the bid amount is in accordance with subsection (g).

[The board shall hold the bid amount in escrow until the license is approved.] (i) Within six months of being awarded the license, the bidder or its assignee shall file an application to transfer the 20250HB0828PN2105 - 2 - license.

A 20250HB0828PN0859 - 2 - license awarded in an excess auction and subsequently transferred to a different county than the county of origination may not be transferred from the receiving municipality for a period of five years after the date the licensed premises are operational.

(1) the board shall hold AT LEAST one excess auction every <-- calendar year;

(2) the license shall be awarded to the highest bidderbidder, <-- SUBJECT TO THE TWENTY-FIVE THOUSAND DOLLAR ($25,000) MINIMUM BID THRESHOLD AS PROVIDED UNDER SUBSECTION (G), FOR POSSIBLE USE in any county, regardless of the original location of the licensed premises.

No more than one license shall be awarded per county <-- in an excess auction;

20250HB0828PN2105 - 3 - (3) the winning bidder may transfer the license without regard to the restrictions under section 461(a) upon approval from the governing body of the municipality where the license will be transferred as provided under section 461(b.3);

and <-- (4) a request to transfer the winning license to a different county shall be made in writing to the board and shall be subject to an application fee of twenty-five thousand dollars <-- ($25,000).

FIFTY THOUSAND DOLLARS ($50,000) FOR TRANSFERS INTO <-- COUNTIES OF THE FIRST THROUGH FOURTH CLASSES AND TWENTY-FIVE THOUSAND DOLLARS ($25,000) FOR TRANSFERS INTO COUNTIES OF THE FIFTH THROUGH EIGHTH CLASSES;

(5) NO MORE THAN TWO LICENSES SHALL BE TRANSFERRED INTO THE SAME COUNTY AS THE RESULT OF AN EXCESS LICENSE AUCTION CONDUCTED WITHIN THE SAME CALENDAR YEAR;

AND (6) THE BOARD SHALL GIVE PREFERENCE TO THE APPLICANTS SUBMITTING THE HIGHEST BID AMOUNTS WHEN CONSIDERING TRANSFER REQUESTS INTO THE SAME COUNTY UNDER THIS SECTION.

(M) ALL REVENUE GENERATED BY THE BOARD RELATIVE TO CONDUCTING LICENSE AUCTIONS AND COLLECTING TRANSFER APPLICATION FEES UNDER THIS SECTION SHALL BE DEPOSITED INTO THE STATE STORES FUND AND MAY BE SUBSEQUENTLY TRANSFERRED BY THE BOARD TO THE GENERAL FUND AS PART OF ITS ANNUAL PROFIT TRANSFER.

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