PRIOR PRINTER'S NO. 1152
PRINTER'S NO. 1234
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
991
Session of
2017
INTRODUCED BY A. HARRIS, IRVIN, GREINER, ORTITAY, REED, MILLARD,
JAMES AND ELLIS, MARCH 28, 2017
AS REPORTED FROM COMMITTEE ON LIQUOR CONTROL, HOUSE OF
REPRESENTATIVES, AS AMENDED, APRIL 3, 2017
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," in
preliminary provisions, further providing for definitions; in
Pennsylvania Liquor Control Board, further providing for
general powers of board and for specific subjects on which
board may adopt regulations; in Pennsylvania Liquor Stores,
further providing for sales by Pennsylvania Liquor Stores;
and providing for Pennsylvania retail franchise stores.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 102 of the act of April 12, 1951 (P.L.90,
No.21), known as the Liquor Code, 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:
* * *
"Product identification number" shall mean the stock keeping
unit (SKU) or a successor method of identifying specific
products.
* * *
"Retail outlet" shall mean an establishment at which consumer
products are sold, supplied or offered for sale directly to
consumers which has an area under one roof of greater than five
thousand square feet.
"Retailer" shall mean a person who sells, supplies or offers
consumer products for sale directly to consumers.
* * *
"Spirits" shall mean any beverage which contains alcohol
obtained by distillation, mixed with water or other substance in
solution, and includes brandy, rum, whiskey, gin or other
spirituous liquors and such liquors when rectified, blended or
otherwise mixed with alcohol or other substances.
* * *
Section 2. Section 207(b) of the act, amended June 8, 2016
(P.L.273, No.39), is amended and the 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:
* * *
(b) The following shall apply:
(1) To control the manufacture, possession, sale,
consumption, importation, use, storage, transportation and
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delivery of liquor, alcohol and malt or brewed beverages in
accordance with the provisions of this act, [and] to fix the
wholesale [and] prices at which liquors and alcohol shall be
sold to licensees under this act and to fix the retail prices at
which liquors and alcohol shall be sold at Pennsylvania Liquor
Stores.
[(2) Except as provided in paragraphs (3) and (4), prices
shall be proportional with prices paid by the board to its
suppliers and 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.]
(2.1) The following shall apply to wholesale prices set by
the board:
(i) Any liquor or alcohol sold to a permit holder under
section 415 or to a franchisee under Article XI shall be sold at
the price from which the liquor or alcohol was acquired by the
board.
(I) ANY LIQUOR OR ALCOHOL SOLD TO A PERMIT HOLDER UNDER
SECTION 415 OR TO A RETAILER UNDER ARTICLE XI MAY INCLUDE A
MARKUP OF NOT GREATER THAN 15%. NO OTHER HANDLING FEES OR
CHARGES MAY BE ASSESSED.
(ii) Liquor sold to a franchisee RETAILER under Article XI
shall not include the tax under Article II of the act of March
4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971,"
or 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
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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."
(5) All prices of a particular product identification number
for sale at Pennsylvania Liquor Stores 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] monthly basis the board shall publish a
listing of [the wholesale and] Pennsylvania Liquor Store retail
prices on its publicly accessible Internet website.
(6.1) The board shall maintain a master list of the price
liquors or alcohol was acquired by the board. This list shall be
made available to any licensee upon request.
(7) No later than April 1st of each year the board shall
submit an annual written report to the Law and Justice Committee
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
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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
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).
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(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.]
* * *
(o) To provide for and regulate the licensing of franchise
RETAIL stores under Article XI.
Section 3. Section 208 of the act is amended by adding a
clause to read:
Section 208. Specific Subjects on Which Board May Adopt
Regulations.--Subject to the provisions of this act and without
limiting the general power conferred by the preceding section,
the board may make regulations regarding:
* * *
(k) The licensing, location and operation of franchise
RETAIL stores under Article XI.
Section 4. Section 305(a) and (b) of the act, amended June
8, 2016 (P.L.273, No.39) and November 15, 2016 (P.L.1286,
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No.166), are amended 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. A supplier of a special order may not refuse an
order from a customer placing an order for one bottle of the
item and may assess a surcharge on the order if the supplier
otherwise requires a minimum quantity purchase. 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
freight or shipping before applying 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
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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,] December 31,
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.
* * *
(b) Every Pennsylvania Liquor Store shall sell liquors at
wholesale to hotels, restaurants, clubs, and railroad, franchise
RETAIL stores, 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
other than franchisees RETAILERS licensed under Article XI or
wine expanded permit holders licensed under section 415 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 subsection (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
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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
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.
* * *
Section 5. The act is amended by adding an article to read:
ARTICLE XI
PENNSYLVANIA RETAIL FRANCHISE STORES
Section 1101. Authority to issue licenses to retailers.
(a) General rule.--Subject to the provisions of this act and
regulations promulgated under this act, the board shall have the
authority to issue a license to a retailer operating a retail
outlet. The licensees will be known as franchise RETAIL stores
and a holder of a license shall be known as a franchisee
RETAILER .
(b) Issuance.--Licenses may be issued at a ratio of one per
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every 6,000 residents within a county, with a minimum of 15
licenses granted to a county.
Section 1102. Qualifications.
The proposed premises shall:
(1) provide adequate linear shelving to display the
amount of product required in section 1103(d);
(2) have the ability to provide storage space for
additional liquor inventory;
(3) operate and maintain an updated computer system; and
(4) operate and maintain an updated system for recording
daily sales and tax collection.
Section 1103. Operation.
(a) Purchase and storage.-- Franchisees RETAILERS licensed
under this section shall be permitted to purchase liquor from
the board, licensed wineries under section 505 and licensed
distilleries under section 505.4. All liquor shall be kept on
the premises or in a noncontiguous storage area approved by the
board. Subject to the provisions of this act and the regulations
made thereunder, franchisees RETAILERS may sell liquor for
consumption off the premises.
(b) Sale hours for off-premises consumption.-- Franchise
RETAIL stores may sell liquor for off-premise consumption
between the hours of 9 a.m. and 11 p.m. on any day except
Sunday, to a person that is not licensed under this act.
(c) Sunday sales.--In addition to the hours authorized under
this section, upon purchasing a permit from the board at an
annual fee of $5,000, a franchise RETAIL store may sell liquor
on Sunday between the hours of 9 a.m. and 9 p.m.
(d) Product identification numbers.-- Franchise RETAIL stores
shall be required to maintain a minimum amount of product
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identification numbers in inventory at all times as follows:
(1) In counties of the first class, second class, third
class and fourth class, 200 product identification numbers of
wine and 200 product identification numbers of spirits.
(2) In counties of the fifth, sixth class, seventh class
and eighth class, 100 product identification numbers of wine
and 100 product identification numbers of spirits.
(e) Sale price.-- Franchise RETAIL stores shall not sell a
liquor product at a price less than the liquor products'
underlying cost.
(f) Other licenses.--Notwithstanding any other provision of
law, nothing in this act shall prohibit a franchisee RETAILER
from holding:
(1) a distributor license under section 431;
(2) a restaurant liquor license or a retail dispenser
license; or
(3) an importing distributor license under section 431.
Section 1104. Conditions of operation.
(a) General rule.-- Franchise RETAIL stores are subject to
the following conditions, obligations and requirements:
(1) Collect the tax required under Article II of the act
of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
of 1971, and 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 of Revenue and the Pennsylvania Liquor
Control Board," and remit those taxes to the Department of
Revenue. The emergency State tax shall be included in the
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retail price of liquor offered for sale. The tax shall not be
assessed at the point of sale to consumers.
(2) Under section 493, shall not sell or distribute
liquor to an individual under 21 years of age or to an
individual who is visibly intoxicated.
(3) The retail outlet and facilities involved in retail
operations, including a change to the facilities during the
term of license, are subject to inspection and investigation
by the board and enforcement bureau as well as approval of
the board and enforcement bureau.
(4) Adequate security must be maintained to protect the
franchisee's RETAILER'S inventory from unauthorized sale or
diversion and prevent unauthorized distribution.
(5) Notify the board within 15 days of a change in
persons holding an interest in the license.
(6) Notify the board within 15 days of becoming aware of
an arrest, criminal indictment or conviction by the
following:
(i) if the franchisee RETAILER is an individual, the
franchisee RETAILER ;
(ii) if the franchisee RETAILER is a partnership, a
partner;
(iii) if the franchisee RETAILER is an association,
a member of the association;
(iv) if the franchisee RETAILER is a corporation, an
officer, director or shareholder of the corporation; and
(v) an affiliate of the franchisee RETAILER .
(7) Notify the board within 15 days of becoming aware of
a violation of this article by an individual listed under
paragraph (5).
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(8) The premises shall be configured in a manner and
with adequate safeguards to ensure that all liquor products
are secure and that liquor products may not be accessed
during prohibited hours of sale.
(9) An individual younger than 18 years of age may not
be employed to work at a register from which the sale of
liquor takes place nor be employed to handle any liquor
products contained within the franchise RETAIL store.
(10) The presence of at least one register designated by
signage where the sale of liquor products will occur which
shall be staffed by an individual at least 18 years of age.
(11) Comply with the responsible alcohol management
program training under section 471.1;
(12) All managers and employees who will engage in the
sale of liquor must attend responsible alcohol management
training within one month of commencing employment.
(13) A transaction scan device shall be utilized to
verify the age of an individual who appears to be under 35
years of age before making a sale of liquor.
(b) Violations.--A violation of a condition under this
article, a violation of this act or the board's regulations for
governing activity occurring under the authority of the license
granted to a franchise RETAIL store may be the basis for any of
the following:
(1) a fine, suspension or license revocation;
(2) nonrenewal of a license;
(3) revocation of operating authority; or
(4) a penalty authorized under section 471.
Section 1105. Applications.
(a) General rule.--An applicant for a franchise RETAIL store
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shall file a written application with the board in the form and
containing the information as the board shall prescribe from
time to time, which must be accompanied by a filing fee, license
fee as prescribed under section 1108 and other fees provided for
in this act. An application must contain:
(1) pictures of the retail outlet, including the
interior and exterior;
(2) a description of the proposed part or parts of the
retail outlet in which liquor will be displayed for purchase;
(3) a description of alterations proposed to be made to
the retail outlet or additional construction plans to be
undertaken after the approval by the board of the application
for a license;
(4) a description of the location at which liquor sales
will take place and how many registers will be solely
dedicated to the sale of liquor; and
(5) proposed storage locations for liquor inventory.
(b) Citizenship and residency.--If the applicant is a
natural person, the applicant's application must show that the
applicant is a citizen of the United States and has been a
resident of this Commonwealth for at least two years immediately
preceding the application.
(c) Corporate applicant.--If the applicant is a corporation,
the application must show that:
(1) the corporation was created under the laws of
Pennsylvania or holds a certificate of authority to transact
business in this Commonwealth;
(2) all officers, directors and stockholders are
citizens of the United States; and
(3) the manager of the hotel, restaurant or club is a
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citizen of the United States.
(d) Verified signature required.--Each application shall be
signed and verified by oath or affirmation by one of the
following:
(1) the owner, if a natural person;
(2) if an association, by a member or partner of the
association;
(3) if a corporation, by an executive officer of the
corporation or a person specifically authorized by the
corporation to sign the application, to which shall be
attached written evidence of the person's authority.
(e) Posting notice of application.--Every applicant for a
license shall post, for a period of at least 30 days beginning
with the day on which the application is filed with the board,
in a conspicuous place on the outside of the premises or at the
proposed new location for which the license is applied, a notice
of the application. The notice shall be in a form, be of the
size, and contain any provisions as the board may require by
regulation. Proof of the posting of the notice shall be filed
with the board.
(f) False statements.--If any false statement is
intentionally made in any part of the application, the affiant
shall be deemed guilty of a misdemeanor and, upon conviction,
shall be subject to the penalties provided by this act.
(g) Municipality notified.--Upon receipt of an application
for a new franchise RETAIL store, the board shall immediately
notify, in writing, the municipality in which the premises
proposed to be licensed are located.
Section 1106. Licensing decisions.
(a) Investigation.--The board shall investigate:
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(1) if the applicant and officers, directors and
principals, if any, are of good repute, responsible and
suitable candidates for operating a franchise RETAIL store;
(2) whether the applicant possesses adequate legitimate
and verifiable financial resources to:
(i) operate a franchise RETAIL store;
(ii) purchase and maintain the required amount of
inventory under section 1103(d);
(iii) meet and maintain all financial obligations to
continually operate a franchise RETAIL store;
(3) whether the applicant proposes an acceptable retail
outlet and location for the sale of liquor; and
(4) whether the planned operation of the applicant
complies with this article and all applicable sections of the
act.
(b) Location.--The board shall conduct an investigation to
determine the feasibility of the location and type of retail
outlet that applicant is currently operating. The board shall
take into account:
(1) proximity of the proposed location to an existing
Pennsylvania State Liquor Store or proposed or existing
franchise RETAIL store;
(2) whether the proposed location would impact the
public health, welfare, peace and morals;
(3) whether the existence of a franchise RETAIL store in
the proposed location could create law enforcement issues;
(4) whether the interior and exterior premises of the
retail outlet are clean, orderly and are in full compliance
with all State and local zoning and building code ordinances;
(5) that the proposed location within the community is
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suitable to the local governing body.
(c) License prohibition.--Licenses shall not be granted if
the proposed location is:
(1) within 300 feet of a preschool, elementary or
secondary school, a church, hospital, charitable institution
or public playground without approval of the board or
municipality;
(2) in a municipality that voted to preclude the
establishment of a Pennsylvania Liquor Store;
(3) within the same shopping center as a Pennsylvania
Liquor Store or franchise RETAIL store;
(4) within 1,200 yards of a Pennsylvania Liquor Store or
franchise RETAIL store in an urbanized area, or within two
miles of a Pennsylvania Liquor Store or franchise RETAIL
store in a rural area. For the purposes of this paragraph,
the term "rural area" shall mean an area outside urbanized
areas as defined by the United States Bureau of Census.
Distances shall be measured from the main entrance of a
Pennsylvania Liquor Store or franchise RETAIL store, to the
proposed location by the most reasonable direct route of
travel;
(5) in an area that would adversely impact the public
health, peace, welfare or morals; or
(6) in an area that could create law enforcement issues.
Section 1107. Hearings.
(a) General rule.--The board may hold hearings on
applications for franchise RETAIL store licenses and license
renewals, as it deems necessary, at a time the board shall fix
for the purpose of hearing testimony for and against
applications for new franchise RETAIL store licenses and license
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renewals. The board shall hold a hearing on a new application or
the transfer of a franchise RETAIL store license under the
limitations of section 1110(c), upon the request of any person
with standing to testify under subsection (b) if the request is
filed with the board within the first 15 days of posting of the
notice of application under section 1105(g).
(b) Resident testimony.--Where a hearing is held in the case
of a new application, the board shall permit residents residing
within a radius of 500 feet of the premises to testify at the
hearing. The board and a hearing examiner of the board shall
give appropriate evidentiary weight to any testimony of a
resident given at the hearing.
Section 1108. Initial license fees.
(a) General rule.--License fees shall be graduated according
to the total square footage of the retail outlet as follows:
(1) One hundred thousand dollars for a retail outlet
with square footage greater than 5,000 square feet but less
than 10,000 square feet.
(2) Two hundred thousand dollars for a retail outlet
with square footage greater than 10,000 square feet but less
than 25,000 square feet.
(3) Three hundred thousand dollars for a retail outlet
with square footage greater than 25,000 square feet but less
than 50,000 square feet.
(4) Four hundred thousand dollars for a retail outlet
with square footage greater than 50,000 square feet but less
than 75,000 square feet.
(5) Five hundred thousand dollars for a retail outlet
with square footage greater than 75,000 square feet.
(b) Extension of premises.--A franchisee RETAILER that seeks
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to extend the premises of a retail outlet beyond the initial
square footage noted on the application and approved by the
board for a license under this section shall pay a fee of $100
per each square foot requested for approval of an extension of
premises. The fee shall be due at the time of application for
the extension of premises.
(c) Collection of fees.--All license fees authorized under
this section shall be collected by the board and shall be
transferred from the State Stores Fund to the General Fund on a
quarterly basis.
Section 1109. Renewal of license.
(a) Annual renewal.--A franchise RETAIL store shall be
renewed on an annual basis.
(b) Fee.--A renewal fee equal to 5% of the total gross
receipts shall be due at the time the renewal application is
filed. For purposes of this subsection, gross receipts shall be
determined as the total of all sales of liquor made to consumers
for off-premise consumption in the previous 12 months inclusive
of taxes. Renewal fees shall be collected by the board and shall
be transferred from the State Stores Fund to the General Fund on
a quarterly basis.
(c) Renewal considerations.--In reviewing applications for
renewal, the board shall consider:
(1) the licensee's inventory of liquor;
(2) whether the franchisee RETAILER can establish
continued financial viability of the franchise RETAIL store
under section 1106(a)(2);
(3) any changes in the interior selling location of the
premises or proposed renovations;
(4) any complaints lodged; and
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(5) any violations charged against the licensee.
Section 1110. Terms of licensure.
(a) General rule.--A franchise RETAIL store license is in
effect unless the board:
(1) revokes, suspends or fails to renew the license; or
(2) revokes the operating authority of the licensee
under the license requirements of this article.
(b) Suspension or revocation.--The board may suspend or
revoke a franchise RETAIL store license issued under this
section if the board finds that the franchisee RETAILER or any
of the franchisee's RETAILER'S affiliates, executive officers,
directors or general or limited partners or persons holding a
controlling interest in the licensee:
(1) is in violation of any provision of this act;
(2) has furnished the board with false or misleading
information;
(3) is unable to establish continued financial viability
of the franchise RETAIL store under section 1106(a)(2); or
(4) is no longer reputable or suitable for licensure.
(c) Transfer prohibited generally.-- Franchise RETAIL
licenses shall not be transferred, except that nothing in this
subsection shall preclude a transfer of ownership to another
eligible person as franchisee RETAILER of the franchise RETAIL
store nor shall it preclude relocation of the franchise RETAIL
store to another location subject to the restrictions of this
act and board regulations.
Section 6. This act shall take effect in 60 days.
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