COMMONWEALTH OF PENNSYLVANIA Legislative JournalJun 28, 2013 · SESSION OF 2013 197TH OF THE...

COMMONWEALTH OF PENNSYLVANIA

Legislative JournalFRIDAY, JUNE 28, 2013

SESSION OF 2013 197TH OF THE GENERAL ASSEMBLY No. 48

SENATEFRIDAY, June 28, 2013

The Senate met at 4 p.m., Eastern Daylight Saving Time.

The PRESIDENT (Lieutenant Governor Jim Cawley) in theChair.

PRAYER

The following prayer was offered by Senator JOHN RAF-FERTY:

May we begin today's Session as we do every day of ourlives, calling on our Heavenly Father for His graces.

Heavenly Father, our Lord, our Creator, our protector, ourinspiration. Throughout life, we call upon You and petition Youto bestow upon us Your plentiful graces to strengthen us daily,especially as we face obstacles placed before us in life.

We, as a Senate of Pennsylvania, are faced with tough deci-sions to make in a condensed amount of time. Guide us, as Youhave humankind throughout history, for You taught us to nevergive up hope as we place our trust in You, for through You, allthings are possible.

Father, we call upon Your divine providence to open ourminds so that You may guide us to a just resolution. The prophetJeremiah proclaimed, for I know the plans I have for you, de-clares the Lord, plans to prosper you and not to harm you, plansto give you hope and a future. We trust You will provide us Yourguidance, wisdom, and support as we begin this Session day.Grant our Commonwealth that bright future. We ask this in Yourmost holy name. Amen.

The PRESIDENT. The Chair thanks Senator Rafferty.

PLEDGE OF ALLEGIANCE

(The Pledge of Allegiance was recited by those assembled.)

BILLS INTRODUCED AND REFERRED

The PRESIDENT laid before the Senate the following SenateBills numbered, entitled, and referred as follows, which wereread by the Clerk:

June 28, 2013

Senators WOZNIAK, VULAKOVICH, WAUGH, COSTA,GORDNER, SCHWANK and SOLOBAY presented to the ChairSB 905, entitled:

An Act amending the act of December 18, 1987 (P.L.412, No.86),known as the Pennsylvania Fair Dealership Law, further providing fordefinitions, for termination of dealer agreement and for death or inca-pacitation of dealer; repealing provisions relating to coercion; and pro-viding for unlawful acts by supplier, for remedies and enforcement andfor waiver.

Which was committed to the Committee on AGRICULTUREAND RURAL AFFAIRS, June 28, 2013.

Senators SCARNATI, RAFFERTY, GREENLEAF,WAUGH, HUTCHINSON, MENSCH, BAKER, WHITE,GORDNER, VOGEL, STACK, YUDICHAK, BREWSTER,BRUBAKER and COSTA presented to the Chair SB 1000, enti-tled:

An Act amending the act of March 10, 1949 (P.L.30, No.14),known as the Public School Code of 1949, providing for rural regionalcommunity college pilot program for underserved counties.

Which was committed to the Committee on EDUCATION,June 28, 2013.

Senators SOLOBAY, FERLO, RAFFERTY, GREENLEAF,WASHINGTON, FONTANA, TARTAGLIONE, BREWSTER,STACK, HUGHES, BOSCOLA and FARNESE presented to theChair SB 1053, entitled:

An Act amending the act of March 28, 2000 (P.L.23, No.7), knownas the Fair Credit Extension Uniformity Act, further providing for un-fair or deceptive acts or practices.

Which was committed to the Committee on CONSUMERPROTECTION AND PROFESSIONAL LICENSURE, June 28,2013.

Senators SOLOBAY, FERLO, RAFFERTY, GREENLEAF,WASHINGTON, FONTANA, TARTAGLIONE, BREWSTER,STACK, HUGHES, BOSCOLA and FARNESE presented to theChair SB 1054, entitled:

An Act amending the act of December 17, 1968 (P.L.1224,No.387), known as the Unfair Trade Practices and Consumer ProtectionLaw, further providing for private actions.

Which was committed to the Committee on CONSUMERPROTECTION AND PROFESSIONAL LICENSURE, June 28,2013.

HOUSE MESSAGE

HOUSE BILLS FOR CONCURRENCE

The Clerk of the House of Representatives presented to theSenate the following bills for concurrence, which were referredto the committees indicated:

786 LEGISLATIVE JOURNAL — SENATE JUNE 28,

June 28, 2013

HB 27 and 80 -- Committee on Judiciary.HB 48 and 91 -- Committee on Finance.HB 121 -- Committee on Law and Justice.HB 435 -- Committee on Public Health and Welfare.HB 436 and 726 -- Committee on Aging and Youth.HB 858 and 1253 -- Committee on Labor and Industry.HB 1047, 1096, 1348 and 1351 -- Committee on Consumer

Protection and Professional Licensure.HB 1275, 1276, 1277, 1278, 1279, 1280, 1281 and 1282 --

Committee on Appropriations.

GENERAL COMMUNICATION

ANNUAL LIST OF EDUCATIONALORGANIZATIONS RECEIVING

CONTRIBUTIONS FROM BUSINESSES

The PRESIDENT laid before the Senate the following com-munication, which was read by the Clerk as follows:

COMMONWEALTH OF PENNSYLVANIADepartment of Revenue

Harrisburg, Pennsylvania17128-1100

June 30, 2013

Ms. Megan Totino ConsedineSecretary of the SenateSenate of Pennsylvania462 Main CapitolHarrisburg, PA 17120

Dear Ms. Consedine:

In accordance with the provisions of Act 4 of 2001 and Act 85 of2012, the Department of Revenue is to provide a list of all ScholarshipOrganizations, Educational Improvement Organizations, Pre-Kindergar-ten Scholarship Organizations and Opportunity Scholarship Organiza-tions receiving contributions from business firms granted a tax credit tothe General Assembly June 30 of each year.

The enclosed lists represent the organizations in each category andthe total tax credit granted.

If you have any questions, please contact me at (717) 783-3680.

Sincerely,

DANIEL MEUSERSecretary of Revenue

The PRESIDENT. This report will be filed in the Library.

BILL SIGNED

The PRESIDENT (Lieutenant Governor Jim Cawley) in thepresence of the Senate signed the following bill:

HB 26.

SPECIAL ORDER OF BUSINESSANNOUNCEMENT BY THE SECRETARY

The SECRETARY. Permission has been granted for the Com-mittee on Public Health and Welfare to meet off the floor todayto consider Senate Bill No. 555 and House Bill No. 1075.

LEGISLATIVE LEAVES

The PRESIDENT. The Chair recognizes the gentleman fromLehigh, Senator Browne.

Senator BROWNE. Mr. President, I request temporaryCapitol leaves for Senator Pileggi and Senator Corman, and alegislative leave for Senator Scarnati.

The PRESIDENT. The Chair recognizes the gentleman fromAllegheny, Senator Costa.

Senator COSTA. Mr. President, I request temporary Capitolleaves for Senator Wiley and Senator Yudichak.

The PRESIDENT. Senator Browne requests temporaryCapitol leaves for Senator Pileggi and Senator Corman, and alegislative leave for Senator Scarnati.

Senator Costa requests temporary Capitol leaves for SenatorWiley and Senator Yudichak.

Without objection, the leaves will be granted.

JOURNAL APPROVED

The PRESIDENT. The Journal of the Session of June 4, 2013,is now in print.

The Clerk proceeded to read the Journal of the Session ofJune 4, 2013.

Senator BROWNE. Mr. President, I move that further readingof the Journal be dispensed with and that the Journal be ap-proved.

On the question,Will the Senate agree to the motion?

The yeas and nays were required by Senator BROWNE andwere as follows, viz:

YEA-50

Alloway Farnese Pileggi VogelArgall Ferlo Rafferty VulakovichBaker Folmer Robbins WardBlake Fontana Scarnati WashingtonBoscola Gordner Schwank WaughBrewster Greenleaf Smith WhiteBrowne Hughes Smucker WileyBrubaker Hutchinson Solobay WilliamsCorman Kasunic Stack WozniakCosta Kitchen Tartaglione YawDinniman Leach Teplitz YudichakEichelberger McIlhinney TomlinsonErickson Mensch Vance

NAY-0

A majority of the Senators having voted "aye," the questionwas determined in the affirmative.

The PRESIDENT. The Journal is approved.

LEGISLATIVE LEAVES CANCELLED

The PRESIDENT. Senator Pileggi and Senator Corman havereturned, and their temporary Capitol leaves are cancelled.

GUEST OF SENATOR JAY COSTAPRESENTED TO THE SENATE


2013 LEGISLATIVE JOURNAL — SENATE 787

Senator COSTA. Mr. President, I am very pleased today tointroduce an intern who is working here in Harrisburg with ourlegal staff this summer. Chelsey Mitchell will be entering hersecond year at the Duquesne University School of Law. Shecame to our office through the Duquesne University programcalled Public Service Law Fellowship. She is originally fromLebanon County, graduated from Cedar Crest High School, andthen attended the great University of Pittsburgh for undergradu-ate studies. Chelsey has already demonstrated her many talentsin our office and with my staff. They are thrilled and we arethrilled to have her working here in Harrisburg as a legal internthis summer.

Mr. President, I ask that my colleagues give Chelsey a warmSenate welcome.

The PRESIDENT. Would the guest of Senator Costa pleaserise so that the Senate may give you its usual warm welcome.

(Applause.)

RECESS

The PRESIDENT. The Chair recognizes the gentleman fromDelaware, Senator Pileggi.

Senator PILEGGI. Mr. President, I request a recess of theSenate for the purpose of a Republican caucus to be held in theMajority Caucus Room starting at 5 p.m.


Senator COSTA. Mr. President, Senate Democrats will meetat the rear of the Chamber for a caucus.

The PRESIDENT. For purposes of Republican and Demo-cratic caucuses, without objection, the Senate stands in recess.

AFTER RECESS

The PRESIDENT. The time of recess having expired, theSenate will come to order.


The PRESIDENT. Senator Wiley and Senator Yudichak havereturned, and their temporary Capitol leaves are cancelled.

LEGISLATIVE LEAVE


Senator BROWNE. Mr. President, I request a temporaryCapitol leave for Senator Pileggi.

The PRESIDENT. Senator Browne requests a temporaryCapitol leave for Senator Pileggi. Without objection, the leaveswill be granted.

LEAVE CHANGED

The PRESIDENT. The Chair recognizes the gentleman fromLehigh, Senator BROWNE.

Senator BROWNE. Mr. President, I request that SenatorScarnati's leave be changed from legislative leave to temporaryCapitol leave.

The PRESIDENT. Senator Browne requests that SenatorScarnati's leave be changed from legislative leave to temporaryCapitol leave. Without objection, the leave will be changed.

CALENDAR

BILL ON CONCURRENCE IN HOUSE AMENDMENTS

SENATE CONCURS IN HOUSE AMENDMENTS

SB 586 (Pr. No. 1282) -- The Senate proceeded to consider-ation of the bill, entitled:

An Act amending Title 20 (Decedents, Estates and Fiduciaries) ofthe Pennsylvania Consolidated Statutes, in ownership of property andlegal title and equitable estate, further providing for right to dispose ofa decedent's remains.

On the question,Will the Senate concur in the amendments made by the House

to Senate Bill No. 586?


Senator BROWNE. Mr. President, I move that the Senate doconcur in the amendments made by the House to Senate Bill No.586.

On the question,Will the Senate agree to the motion?

The yeas and nays were required by Senator BROWNE andwere as follows, viz:

YEA-50


NAY-0

A constitutional majority of all the Senators having voted"aye," the question was determined in the affirmative.

Ordered, That the Secretary of the Senate inform the Houseof Representatives accordingly.

THIRD CONSIDERATION CALENDAR

BILL OVER IN ORDER

HB 82 -- Without objection, the bill was passed over in itsorder at the request of Senator BROWNE.

BILL OVER IN ORDER TEMPORARILY

SB 100 -- Without objection, the bill was passed over in itsorder temporarily at the request of Senator BROWNE.


BILL OVER IN ORDER

SB 391 -- Without objection, the bill was passed over in itsorder at the request of Senator BROWNE.

BILL LAID ON THE TABLE


An Act amending the act of May 17, 1921 (P.L.682, No.284),known as The Insurance Company Law of 1921, providing for jointpayment for emergency medical services agencies.

Upon motion of Senator BROWNE, and agreed to by voicevote, the bill was laid on the table.

SB 401 TAKEN FROM THE TABLE

Senator BROWNE. Mr. President, I move that Senate Bill No.401, Printer's No. 1192, be taken from the table and placed onthe Calendar.

The motion was agreed to by voice vote.The PRESIDENT. The bill will be placed on the Calendar.

BILL OVER IN ORDER

SB 428 -- Without objection, the bill was passed over in itsorder at the request of Senator BROWNE.

BILL ON THIRD CONSIDERATIONAND FINAL PASSAGE

HB 515 (Pr. No. 1946) -- The Senate proceeded to consider-ation of the bill, entitled:

An Act amending the act of July 31, 1968 (P.L.805, No.247),known as the Pennsylvania Municipalities Planning Code, further pro-viding for definitions; and providing for mailed notice in certain pro-ceedings.

Considered the third time and agreed to,And the amendments made thereto having been printed as

required by the Constitution,

On the question,Shall the bill pass finally?

The yeas and nays were taken agreeably to the provisions ofthe Constitution and were as follows, viz:

YEA-49

Alloway Farnese Rafferty VulakovichArgall Folmer Robbins WardBaker Fontana Scarnati WashingtonBlake Gordner Schwank WaughBoscola Greenleaf Smith WhiteBrewster Hughes Smucker WileyBrowne Hutchinson Solobay WilliamsBrubaker Kasunic Stack WozniakCorman Kitchen Tartaglione Yaw

Costa Leach Teplitz YudichakDinniman McIlhinney TomlinsonEichelberger Mensch VanceErickson Pileggi Vogel

NAY-1

Ferlo


Ordered, That the Secretary of the Senate return said bill tothe House of Representatives with information that the Senatehas passed the same with amendments in which concurrence ofthe House is requested.

BILL OVER IN ORDER TEMPORARILY

HB 790 -- Without objection, the bill was passed over in itsorder temporarily at the request of Senator BROWNE.

BILL AMENDED AND LAID ON THE TABLE


An Act designating each of the bridges that carry Lincoln Highwayover Electric Avenue, in North Braddock Borough, Allegheny County,State Bridge No. 02 0030 0230 0001 and State Bridge No. 02 00300231 0000, as the AMVETS Memorial Bridge.

On the question,Will the Senate agree to the bill on third consideration?

SCHWANK AMENDMENT A2702

Senator SCHWANK offered the following amendment No.A2702:

Amend Bill, page 1, line 4, by inserting after "Bridge":; and designating a portion of Pennsylvania Route 662 in

Ruscombmanor Township, Berks County, as the Chief Warrant Officer2 Jarett M. Yoder Highway

Amend Bill, page 2, lines 21 and 22, by striking out all of said linesand inserting:Section 2. Jarett M. Yoder Highway.

(a) Findings.--(1) Jarett M. Yoder was born in Reading on November 10,

1986. He was a 2005 graduate of Oley Valley High School, where hewas an accomplished athlete in multiple sports. Upon graduating, heenlisted in the Pennsylvania National Guard and was deployed to theRepublic of Iraq as part of Operation Iraqi Freedom in 2008 as a mem-ber of C Company, 1-111th Infantry Regiment, 56th Stryker Brigade.After his return in 2012, Jarett realized his lifelong dream by earning hiswings at Army aviation school.

(2) Chief Warrant Officer 2 Yoder was killed on April 9,2013, in Nangarhar province, Islamic Republic of Afghanistan, whenthe AH-64 Apache helicopter he copiloted crashed from an undeter-mined cause during an aerial reconnaissance while he was deployedwith Bravo Company, 1-104th Attack Reconnaissance Battalion, Penn-sylvania Army National Guard as part of Operation Enduring Freedom.

(3) Chief Warrant Officer 2 Yoder was posthumously awardedthe Bronze Star Medal, Air Medal and NATO Medal for his service inAfghanistan. In addition, he was awarded the Combat InfantrymanBadge, Combat Action Badge, the

Afghanistan Campaign Medal with one bronze star and theIraq Campaign Medal with one bronze star.


(4) Chief Warrant Officer 2 Yoder, the husband of Heather L.Garay-Yoder, whom he married shortly before his deployment to Af-ghanistan, and the son of Diane C. and Gary L. Yoder, demonstrated hiscourageous commitment to family and country at the time of his death.

(b) Designation.--The section of Pennsylvania Route 662 inRuscombmanor Township between the township border with the Bor-ough of Fleetwood and the township border with Oley Township ishereby designated the Chief Warrant Officer 2 Jarett M. Yoder High-way.

(c) Signs.--The Department of Transportation shall erect and main-tain appropriate signs displaying the name of the highway to traffic inboth directions on the highway.Section 3. Effective date.

This act shall take effect as follows:(1) Section 1 shall take effect in 60 days.(2) The remainder of this act shall take effect immediately.

On the question,Will the Senate agree to the amendment?It was agreed to.

On the question,Will the Senate agree to the bill on third consideration, as

amended?

SOLOBAY AMENDMENT A2410

Senator SOLOBAY offered the following amendment No.A2410:

Amend Bill, page 1, line 4, by inserting after "Bridge":; and designating a certain interchange in Greene County as the Ser-geant Michael Todd May, Monongalia County Sheriff's Department,West Virginia, Interchange

Amend Bill, page 2, by inserting between lines 20 and 21:Section 2. The Sergeant Michael Todd May, Monongalia County Sher-iff's Department, West Virginia, Interchange.

(a) Findings.--The General Assembly finds and declares as fol-lows:

(1) Sgt. Michael Todd May, a ten-year veteran of theMonongalia County Sheriff's Department, was killed in the line of dutyin the early hours of Saturday, February 18, 2012.

(2) Sgt. May was killed while involved in a vehicle pursuitthat had crossed over the West Virginia/Pennsylvania State line.

(3) The driver of the vehicle rammed Sgt. May's patrol car ashe waited in the median for the pursuit to reach his location.

(4) The driver was convicted of third degree murder, homicideby vehicle, homicide by vehicle while driving under the influence andmultiple other counts.

(5) Sgt. May was born in Morgantown, West Virginia, onApril 2, 1970.

(6) Sgt. May was a 1988 graduate of Morgantown HighSchool and attended Fairmont State University, where he pursued adegree in criminal justice.

(7) After college, Sgt. May graduated from the West VirginiaState Police Academy.

(8) Sgt. May was employed for a short time with the BerkeleyCounty Sheriff's Department and then began his career with theMonongalia County Sheriff's Department, where he was a lead on theSWAT team.

(9) Sgt. May also worked at the Eastern Regional CorrectionsFacility and was a member of the Tau Kappa Epsilon fraternity.

(10) Moreover, Sgt. May served as president of theMonongalia County Sheriff's Association.

(11) Sgt. May is survived by his wife, Renee; his parents,Franklin and Catherine May; his brother, Frankie May; his niece andnephew, Canon and Bryiar May; his aunts and uncles; and several cous-ins.

(b) Designation.--The interchange of Interstate 79 at Mount Morrisin Greene County is hereby designated the Sgt. Michael Todd May,

Monongalia County Sheriff's Department, West Virginia, Interchange.(c) Signs.--The Department of Transportation shall install, where

it deems feasible, the appropriate markers designating this interchangeas the Sgt. Michael Todd May, Monongalia County

Sheriff's Department, West Virginia, Interchange.Amend Bill, page 2, line 21, by striking out "2" and inserting:

3

On the question,Will the Senate agree to the amendment?It was agreed to.

And the question recurring,Will the Senate agree to the bill on third consideration, as

amended?

SOLOBAY AMENDMENT A2411

Senator SOLOBAY offered the following amendment No.A2411:

Amend Bill, page 1, line 4, by inserting after "Bridge":; and designating the Murtland Avenue Exit from Interstates 79 and 70onto State Route 19 in Washington, Washington County, as the LanceCorporal Ryan J. Kovacicek, USMC, Exit

Amend Bill, page 2, by inserting between lines 20 and 21:Section 2. The Lance Corporal Ryan J. Kovacicek, USMC, Exit.

(a) Findings and declaration.--The General Assembly finds anddeclares as follows:

(1) Lance Corporal Ryan J. Kovacicek served during Opera-tion Iraqi Freedom. He was assigned to the 3rd Battalion, 25th MarineRegiment, 4th Marine Division, Marine Corps Reserve, Moundsville,West Virginia, attached to Regimental Combat Team 2, 2nd MarineDivision, II Marine Expeditionary Force (Forward).

(2) Lance Corporal Kovacicek died on July 10, 2005, whileconducting combat operations in Hit, Iraq.

(b) Designation.--The Murtland Avenue Exit from Interstates 79and 70 onto State Route 19 in Washington, Washington County, ishereby designated as the Lance Corporal Ryan J. Kovacicek, USMC,Exit.

(c) Signs.--The Department of Transportation shall erect and main-tain appropriate signs to indicate the designation under subsection (a).

Amend Bill, page 2, line 21, by striking out "2" and inserting: 3

On the question,Will the Senate agree to the amendment?It was agreed to.Upon motion of Senator BROWNE, and agreed to by voice

vote, the bill, as amended, was laid on the table.

HB 925 TAKEN FROM THE TABLE

Senator BROWNE. Mr. President, I move that House Bill No.925, Printer's No. 2190, be taken from the table and placed onthe Calendar.


BILLS OVER IN ORDER

SB 984, HB 1112 and HB 1119 -- Without objection, the billswere passed over in their order at the request of SenatorBROWNE.


BILL ON THIRD CONSIDERATIONAND FINAL PASSAGE


An Act amending the act of April 14, 1972 (P.L.233, No.64),known as The Controlled Substance, Drug, Device and Cosmetic Act,further providing for schedules of controlled substances.

Considered the third time and agreed to,

On the question,Shall the bill pass finally?

The yeas and nays were taken agreeably to the provisions ofthe Constitution and were as follows, viz:

YEA-50


NAY-0


Ordered, That the Secretary of the Senate return said bill tothe House of Representatives with information that the Senatehas passed the same without amendments.

BILLS OVER IN ORDER

HB 1359 and HB 1478 -- Without objection, the bills werepassed over in their order at the request of Senator BROWNE.

BILL REREFERRED


An Act amending the act of May 17, 1921 (P.L.682, No.284),known as The Insurance Company Law of 1921, providing for elec-tronic delivery of information and posting of policies and endorsementsand for risk management and own risk solvency assessment.

Upon motion of Senator BROWNE, and agreed to by voicevote, the bill was rereferred to the Committee on Appropriations.

BILL OVER IN ORDER

HB 1482 -- Without objection, the bill was passed over in itsorder at the request of Senator BROWNE.

BILL REREFERRED


An Act amending Title 53 (Municipalities Generally) of the Penn-sylvania Consolidated Statutes, further providing for definitions, fordriver certification program and for budget and fees; providing forassessment notice and hearings; further providing for fund and for trans-fer of money from fund; providing for fees; further providing for specialfunds in cities of the first class, for power of authority to issue certifi-cates of public convenience and for restrictions; and making an appro-priation.


SECOND CONSIDERATION CALENDAR

BILL ON SECOND CONSIDERATION


An Act amending Title 13 (Commercial Code) of the PennsylvaniaConsolidated Statutes, in transfers of funds, further providing for exclu-sion of consumer transactions governed by Federal law; and making aneditorial change.

Considered the second time and agreed to,Ordered, To be printed on the Calendar for third consider-

ation.

BILL ON SECOND CONSIDERATIONAND REREFERRED


An Act amending the act of August 9, 1955 (P.L.323, No.130),known as The County Code, in prothonotary, clerks of courts, clerk oforphans' court, register of wills, recorder of deeds, further providing forhow offices to be held.


ation.Upon motion of Senator BROWNE, and agreed to by voice

vote, the bill just considered was rereferred to the Committee onAppropriations.

BILLS OVER IN ORDER

SB 332 and SB 360 -- Without objection, the bills werepassed over in their order at the request of Senator BROWNE.



An Act amending the act of February 9, 1999 (P.L.1, No.1), knownas the Capital Facilities Debt Enabling Act, in capital facilities, further


providing for definitions, for legislative procedures, for reports relatedto redevelopment assistance capital projects and for appropriations andlimitations on projects; providing for review of proposals; and furtherproviding for funding and administration of projects.


ation.

BILLS OVER IN ORDER

SB 497 and SB 551 -- Without objection, the bills werepassed over in their order at the request of Senator BROWNE.



An Act amending the act of April 14, 1972 (P.L.233, No.64),known as The Controlled Substance, Drug, Device and Cosmetic Act,further providing for definitions and for prohibited acts and penalties;and providing for ephedrine and pseudoephedrine and electronic track-ing.


ation.

BILLS OVER IN ORDER

HB 668, HB 669, SB 684, SB 699 and SB 813 -- Withoutobjection, the bills were passed over in their order at the requestof Senator BROWNE.

BILL ON SECOND CONSIDERATIONAND REREFERRED


An Act amending the act of August 9, 1955 (P.L.323, No.130),known as The County Code, in fiscal affairs, providing for authorizationof five percent hotel tax in certain counties of the fourth class.


ation.Upon motion of Senator BROWNE, and agreed to by voice

vote, the bill just considered was rereferred to the Committee onAppropriations.

BILLS OVER IN ORDER

SB 901, SB 902 and SB 975 -- Without objection, the billswere passed over in their order at the request of SenatorBROWNE.

BILL LAID ON THE TABLE


An Act providing for the creation of a major watershed improve-ment program, for establishment of a verified TMDL parameter creditprogram, for the powers and duties of the Department of EnvironmentalProtection and the Pennsylvania Infrastructure Investment Authorityand for completion of a study by the Legislative Budget and FinanceCommittee.

Upon motion of Senator BROWNE, and agreed to by voicevote, the bill was laid on the table.

SB 994 TAKEN FROM THE TABLE

Senator BROWNE. Mr. President, I move that Senate Bill No.994, Printer's No. 1209, be taken from the table and placed onthe Calendar.


BILLS OVER IN ORDER

SB 1013, SB 1030, SB 1040 and SB 1042 -- Without objec-tion, the bills were passed over in their order at the request ofSenator BROWNE.

BILLS ON SECOND CONSIDERATION


An Act designating the bridge that carries Seventh Street on StateRoute 611 over Interstate 80 in Stroudsburg Borough, Monroe County,as the Sheriffs Forrest B. Sebring and Todd A. Martin Bridge.


ation.


An Act amending Title 53 (Municipalities Generally) of the Penn-sylvania Consolidated Statutes, further providing for initiative of elec-tors seeking consolidation or merger with new home rule charter.


ation.

BILLS OVER IN ORDER

HB 1438, HB 1439, HB 1440, HB 1480 and HB 1483 --Without objection, the bills were passed over in their order at therequest of Senator BROWNE.

COMMUNICATIONS FROM THE GOVERNORREPORTED FROM COMMITTEE ON RULES

AND EXECUTIVE NOMINATIONS

Senator ROBBINS, from the Committee on Rules and Execu-tive Nominations, reported the following nominations made byHis Excellency, the Governor of the Commonwealth, which wereread by the Clerk as follows:


JUSTICE, SUPREME COURT OF PENNSYLVANIA

June 14, 2013

To the Honorable, the Senateof the Commonwealth of Pennsylvania:

In conformity with law, I have the honor hereby to nominate for theadvice and consent of the Senate, The Honorable Correale F. Stevens,300 Laurel Professional Building, Hazleton 18202, Luzerne County,Fourteenth Senatorial District, for appointment as Justice, SupremeCourt of Pennsylvania, to serve until the first Monday of January 2016,vice The Honorable Joan Orie Melvin, resigned.

TOM CORBETTGovernor

MEMBER OF THE PENNSYLVANIATURNPIKE COMMISSION

June 14, 2013

To the Honorable, the Senateof the Commonwealth of Pennsylvania:

In conformity with law, I have the honor hereby to nominate for theadvice and consent of the Senate, The Honorable Sean Logan, 1135Balkan Drive, Pittsburgh 15239, Allegheny County, Forty-fifth Senato-rial District, for appointment as a member of the Pennsylvania TurnpikeCommission, to serve for a term of four years or until his successor isappointed and qualified, vice The Honorable J. William Lincoln,Connellsville, resigned.

TOM CORBETTGovernor

NOMINATIONS LAID ON THE TABLE

Senator ROBBINS. Mr. President, I request that the nomina-tions just read by the Clerk be laid on the table.

The PRESIDENT. The nominations will be laid on the table.

UNFINISHED BUSINESSBILLS REPORTED FROM COMMITTEES

Senator VANCE, from the Committee on Committee on Pub-lic Health and Welfare, reported the following bill:

SB 555 (Pr. No. 1315) (Amended)

An Act establishing the Health Advisory Panel on Shale Gas Ex-traction and Natural Gas Use; and providing for its powers and duties.

Senator PILEGGI, from the Committee Rules and ExecutiveNominations, reported the following bill:

SB 304 (Pr. No. 1210) (Rereported) (Concurrence)

An Act amending Titles 15 (Corporations and UnincorporatedAssociations) and 54 (Names) of the Pennsylvania Consolidated Stat-utes, in Title 15, making extensive revisions, additions and deletions topreliminary material on general provisions; to corporation material ongeneral provisions, on incorporation, on corporate powers, duties andsafeguards, on officers, directors and shareholders, on fundamentalchanges, on registered corporations, on insurance corporations, on bene-fit corporations, on foreign business corporations, on incorporation andon foreign nonprofit corporations; to material on limited liability com-

panies; to material on unincorporated associations; and to material onbusiness trusts; in Title 54, further providing for general provisions andfor corporate and other association names; and making related repeals.

Senator CORMAN, from the Committee on Appropriations,reported the following bills:

HB 784 (Pr. No. 2158) (Rereported)

An Act providing for permit extensions; and making a repeal.

HB 1190 (Pr. No. 2090) (Rereported)

An Act amending the act of July 19, 1979 (P.L.130, No.48), knownas the Health Care Facilities Act, in licensing of health care facilities,further providing for definitions, for administration, for licensure, forterm and content of license and for reliance on accrediting agencies andFederal Government; and providing for reliance on national accredita-tion organizations for hospitals.

HB 1275 (Pr. No. 2155)

An Act making appropriations from the Professional LicensureAugmentation Account and from restricted revenue accounts within theGeneral Fund to the Department of State for use by the Bureau of Pro-fessional and Occupational Affairs in support of the professionallicensure boards assigned thereto.

HB 1276 (Pr. No. 1639)

An Act making an appropriation from a restricted revenue accountwithin the General Fund to the Office of Small Business Advocate inthe Department of Community and Economic Development.

HB 1277 (Pr. No. 1999)

An Act making an appropriation from the State Employees' Retire-ment Fund to provide for expenses of the State Employees' RetirementBoard for the fiscal year July 1, 2013, to June 30, 2014, and for thepayment of bills incurred and remaining unpaid at the close of the fiscalyear ending June 30, 2013.

HB 1278 (Pr. No. 2000)

An Act making an appropriation from the Public School Employ-ees' Retirement Fund to provide for expenses of the Public School Em-ployees' Retirement Board for the fiscal year July 1, 2013, to June 30,2014, and for the payment of bills incurred and remaining unpaid at theclose of the fiscal year ending June 30, 2013.

HB 1279 (Pr. No. 2001)

An Act making appropriations from the Workmen's CompensationAdministration Fund to the Department of Labor and Industry and theDepartment of Community and Economic Development to provide forthe expenses of administering the Workers' Compensation Act, ThePennsylvania Occupational Disease Act and the Office of Small Busi-ness Advocate for the fiscal year July 1, 2013, to June 30, 2014, and forthe payment of bills incurred and remaining unpaid at the close of thefiscal year ending June 30, 2013.

HB 1280 (Pr. No. 1643)

An Act making an appropriation from a restricted revenue accountwithin the General Fund to the Office of Consumer Advocate in theOffice of Attorney General.


HB 1281 (Pr. No. 1644)

An Act making appropriations from a restricted revenue accountwithin the General Fund and from Federal augmentation funds to thePennsylvania Public Utility Commission for the fiscal year July 1, 2013,to June 30, 2014, and for the fiscal year July 1, 2012, to June 30, 2013.

HB 1282 (Pr. No. 1645)

An Act making appropriations from the restricted revenue accountswithin the State Gaming Fund and from the State Gaming Fund to thePennsylvania Gaming Control Board, the Department of Revenue, thePennsylvania State Police and the Attorney General for the fiscal yearbeginning July 1, 2013, to June 30, 2014, and for the payment of billsincurred and remaining unpaid at the close of the fiscal year endingJune 30, 2013.

BILL REPORTED FROM COMMITTEEAND REREFERRED

Senator VANCE, from the Committee on Public Health andWelfare, reported the following bill:

HB 1075 (Pr. No. 2189) (Amended) (Rereported)

An Act amending the act of June 13, 1967 (P.L.31, No.21), knownas the Public Welfare Code, changing the name of the Department ofPublic Welfare to the Department of Human Services and providing fora transition period; in general powers and duties of the Department ofPublic Welfare, further providing for county human services consoli-dated planning and reporting; in public assistance, further providing formedical assistance payments for institutional care and for medical assis-tance benefit packages, coverage, copayments, premiums and rates; inchildren and youth, further providing for payments to counties for ser-vices to children and providing for provider submissions; in intermedi-ate care facilities assessments, further providing for time periods andmaking editorial changes; in hospital assessments, further providing forauthorization and for time period; in Statewide quality care assessment,further defining "net inpatient revenue," providing for implementation,for administration, for limitations and for expiration; in PennsylvaniaTrauma Systems Stabilization, further providing for funding; in kinshipcare, further providing for scope and for definitions; providing for fam-ily finding; and, in human services block grant pilot program, furtherproviding for establishment of human services block grant pilot pro-gram, for powers and duties of the department, for powers and duties ofcounties, for allocation and for use of block grant funds.


SENATE RESOLUTIONS ADOPTED

Senators LEACH, FERLO, WOZNIAK, WASHINGTON,TEPLITZ, STACK, FONTANA, DINNIMAN, ERICKSON,GREENLEAF, RAFFERTY, PILEGGI, SMITH, BAKER,COSTA, HUGHES, BOSCOLA, WHITE, TARTAGLIONE andSOLOBAY, by unanimous consent, offered Senate ResolutionNo. 179, entitled:

A Resolution designating the month of June 2013 as "MacularDegeneration Awareness Month" and recognizing the Macula VisionResearch Foundation for its efforts.

Which was read, considered and adopted by voice vote.

Senator BROWNE, by unanimous consent, offered SenateResolution No. 180, entitled:

A Resolution designating September 25, 2013, as "InternationalAtaxia Awareness Day" in Pennsylvania.

Which was read, considered, and adopted by voice vote.

Senators ARGALL, RAFFERTY, WOZNIAK, FERLO,SMITH, TEPLITZ, STACK, GREENLEAF, ERICKSON,DINNIMAN, TARTAGLIONE, WHITE, FONTANA,BREWSTER, COSTA, PILEGGI, ALLOWAY, SOLOBAY,MENSCH and BRUBAKER, by unanimous consent, offeredSenate Resolution No. 181, entitled:

A Resolution recognizing August 19, 2013, as the 75th anniversaryof "National Aviation Day" in Pennsylvania.

Which was read, considered and adopted by voice vote.

BILLS ON FIRST CONSIDERATION

Senator TOMLINSON. Mr. President, I move that the Senatedo now proceed to consideration of all bills reported from com-mittees for the first time at today's Session.

The motion was agreed to by voice vote.The bills were as follows:

SB 555, HB 1275, HB 1276, HB 1277, HB 1278, HB 1279,HB 1280, HB 1281 and HB 1282.

And said bills having been considered for the first time,Ordered, To be printed on the Calendar for second consider-

ation.

CONGRATULATORY RESOLUTIONS

The PRESIDENT laid before the Senate the following resolu-tions, which were read, considered, and adopted by voice vote:

Congratulations of the Senate were extended to GettysburgCollege Chapter of Phi Delta Theta Fraternity by SenatorAlloway.

Congratulations of the Senate were extended to Jarrius ElijahHummel by Senator Browne.

Congratulations of the Senate were extended to citizens ofChestnuthill Township by Senators Browne and Argall.

Congratulations of the Senate were extended to David Daviesand to Doug Heilman by Senator Brubaker.

Congratulations of the Senate were extended to Saint Mat-thew's Lutheran Church of Mount Carmel by Senator Gordner.

Congratulations of the Senate were extended to Mr. and Mrs.Eugene Doria by Senator Kasunic.

Congratulations of the Senate were extended to Grant N.Smith and to James W. Steele by Senator Robbins.

Congratulations of the Senate were extended to AnnPasternak, Vivian Pagano, Margaret Marie Guiher, Roy Tohmsand to Roxie Irene Pierce by Senator White.

Congratulations of the Senate were extended to Mr. and Mrs.John J. Szybist, Mr. and Mrs. John Miller, Austin Cohen,Mercedes Spickerman, Canton Junior/Senior High School Base-ball Team, Northeast Bradford High School Softball Team andto Northeast Bradford Junior/Senior High School Boys' CrossCountry Team by Senator Yaw.


CONDOLENCE RESOLUTIONS

The PRESIDENT laid before the Senate the following resolu-tions, which were read, considered, and adopted by voice vote:

Condolences of the Senate were extended to the family of thelate James Manley by Senator Yudichak.

Condolences of the Senate were extended to the family of thelate Mary Lynn Tarbuck by Senator Solobay.

PETITIONS AND REMONSTRANCES

The PRESIDENT. The Chair recognizes the gentleman fromAllegheny, Senator Fontana.

Senator FONTANA. Mr. President, I rise today to brieflydiscuss a situation that has arisen not only in my district, butthroughout Pennsylvania. Mr. President, we cannot continue toignore the plight of distressed school districts. We cannot con-tinue to tell ourselves that we are holding the line on taxes inHarrisburg while funding policies that are causing massive prop-erty tax hikes at home. We cannot continue to blame teachersand underprivileged kids for lackluster academics when fundingpolicies have left public schools high and dry. This administra-tion's funding cuts have given our schools no choice. To makeends, school boards are laying off teachers; crowding kids intoclassrooms; cutting music, sports, and electives; using tatteredand antiquated textbooks; and taxing people on fixed incomesout of their homes.

Just last night, Mr. President, the Sto-Rox School Districtannounced more furloughs and more program cuts, and this isnot the first time the district had to go down this road. Mr. Presi-dent, you can contribute it to the loss of stimulus dollars, if youwant, but that does not help the districts absorb a nearly mil-lion-dollar State funding cut, or the loss of $1.3 million in subsi-dies. Sto-Rox and other struggling districts have had to emptytheir reserve funds. They rely on shrinking local tax and propertytax bases to try to make up what the State has taken away. If youtalk to local school administrators from these districts, they tellyou that their fixed costs make it impossible to implement thekinds of cutbacks that would have nullified the Corbett fundingcuts. Adding insult to injury, Mr. President, they will also tellyou that the State's lopsided charter school funding formula isbleeding them dry. Sto-Rox had to pay out over $3 million tocharter schools last year.

Mr. President, regardless of whom you choose to blame forthe huge cut in State support, we cannot continue to ignore theproblem. We cannot continue to tell financially distressedschools like Sto-Rox, Aliquippa, McKeesport, Chester, and Har-risburg that they are on their own. They are trying to educatetheir children, but no longer have a local tax base capable ofshouldering a larger share of the funding burden. Most of themare nearing financial collapse. They have no means to raise themoney locally, they have already cut educational programs to thebone, and no one wants to merge with them. Surrounding dis-tricts have no interest in inheriting educationally deprived kidsfrom rust-belt towns that this administration refuses to give afighting chance.

Mr. President, we need to take a good look at how we fundour schools. It is time we recognize this crisis and begin to pro-vide adequate resources and tangible support. It is time we revisitthe charter and cyber school funding formulas and take a good,

hard look at how it impacts school budgets. It is time we take agood look at our schools that are in financial peril.

Thank you, Mr. President.The PRESIDENT. The Chair recognizes the gentleman from

Allegheny, Senator Ferlo.Senator FERLO. Mr. President, I know in a little while, after

much contentious debate and dialogue and discourse for whatseems like this past year, there may be some monumental deci-sion relative to the disposition of our State Store system, ourpublic trust that has served the Commonwealth very well formany decades. In the interest of time, because I do not know howmuch debate and discussion there will be later with the flurry ofamendments that may spring forward from the aisle opposite orour own proposal, an amendment on modernization, so I willdefer, but I think it is important that the public begins to under-stand the critical debate.

As is typical with the legislature the last 10 years that I havebeen here, it always seems that when things are very controver-sial and contentious and we really do not want the public to befully aware or apprised of the complicated debate and all thepoints of discussion, it seems that oftentimes we wait until thefinal hours of a Session, usually late into the evening, to do thiswork, to do the dirty work, to some extent, so that people are notreally aware of what is going on. So I am a little bit disappointedthat once again we find ourselves at the eleventh hour trying tomake some very difficult decisions. This has become even morecomplicated because unlike legislative bodies at the local levelwhere you introduce an ordinance, there is an intelligent debate,there is a public hearing, there is discourse, there is dialogue, andthen local municipal governments usually at some point willfinally make a decision usually within a few weeks, and they doallow for a forum of public hearings.

I want to thank Chairman McIlhinney of the Committee onLaw and Justice, the Majority chairman, and myself, being theMinority chair. He took great time, to his credit, to conduct aseries of public hearings, three or four sessions, if I am not mis-taken. They were obviously very well attended. It seems one ortwo sentences of an intemperate comment that I made in myfrustration with the thought that folks will end up working forconvenience store wages, which is certainly upsetting to me, gotsignificant news coverage. It is kind of interesting that what didnot get significant news coverage was the actual extensive dis-cussion and dialogue and facts that were presented by a plethoraof proponents of maintaining the current State Store system to amodernization plan. Individuals, rightfully and in very eloquentstatements, made clear the hodgepodge proposal that seems to beemanating from the majority of our colleagues on the aisle oppo-site on this simplistic ideological notion, that somehow we needto condemn the workers in our great State Store system and basi-cally find every minor and major point to criticize, all trying toconvince the public that so-called privatization is the greatestthing since sliced bread, when the facts suggest otherwise.

Mr. President, I think it is important to note that in just the lastfew weeks, because of a very complicated, confusing, and con-tradictory amendment that we will discuss later, and in the es-sence of the initial bill itself on privatization that is being offeredby the Senators in the Majority here today, many, many groups,many small businesses, many folks who have traditionallygained respect in these Chambers have come out very strenu-ously and very strongly in opposition to what is being done here


today with this rush toward privatization. Certainly, first andforemost, would be the proud leadership that represents the hard-working members of the United Food & Commercial WorkersUnion. I always find it interesting that when you have organiza-tions that represent corporate and big business, like the Com-monwealth Foundation, who we have no sense of where theirrevenue comes from or where their contributions come from--Iheard a show recently on PCN where one of the spokeswomenmade it very clear that it is nobody's business, that they are aprivate organization. Whereas the UFCW very proudly repre-sents the men and women in the State Store system. They shouldnot hide or shirk from that duty and responsibility. They havegreat leadership, and they are proud to represent these men andwomen. With an administration that has already lost and basi-cally sent to the graveyard over 17,000 public schoolteachers, Ithink it is great that we have a union that is standing up andfighting for the men and women to maintain their fam-ily-sustaining, family-supporting jobs.

Why would we want to usher in a system where most likelyindividuals will move toward minimum wage jobs? Including theinfamous Sheetz, which I believe starts out at $8.01 an hour, andthey may be even better on the pay scale. But the fact of the mat-ter is, many of us and my constituents do not want to see theproliferation of alcohol at gas stations, grocery stores, and conve-nience stores, and that is what unfortunately our colleagues maybe forced to vote on later today.

So they proudly represent their members, and that is their job,and I think the public should heed their concerns and be sympa-thetic and align our interests together. They pointed out veryclearly that this puts at risk not only their jobs and employment,but the LCB itself which will soon break the $1 billion revenuemark. Clearly, my colleague on the aisle opposite, the Majoritychairman of the Committee on Law and Justice, his proposal willcost taxpayers more than $370 million in lost tax revenue, anadditional $360 million in taxpayer-subsidized giveaways to bigchain retailers.

Make no mistake about it, for the party that is in the Majority,who has long held that it is the savior of the small business com-munity, nothing could be further from the truth because they areabout to wipe out thousands of individuals and families whohave invested their life savings. Beer distributors, restaurants,taverns, all will be faced with detrimental and significant impactif this so-called privatization plan were to actually become law.

We have men and women who are managers of our StateStore system, and again, they have no reason to hide behind theirphilosophy or their vision in representing the interest of theirmembers. These are individuals who work very hard and manag-ers who manage a multitude of various issues, not just personnel,but are strong individuals who have given the public great ser-vice, and they should be proudly respected by this Chamber.Very clearly, they are concerned, as they always have been,members of the independent State Store union, they are not con-cerned solely with their jobs, which is important, but are con-cerned about the proliferation of alcohol throughout our greatCommonwealth and some of the detrimental and difficult reali-ties that take hold as a result of alcohol abuse. We certainly can-not begin to calculate the costs of healthcare for our Common-wealth as a result of the plague of abuse of alcohol. So, they arean important partner in what happens going forward.

The malt beverage distributors came out very strongly in thathearing in opposition, and they make it very clear that the Houseand the Senate version of so-called privatization would allowconvenience stores, big-box retailers, and even truck stops to sellalcoholic beverages. I appreciate their leadership and oppositionto this bill. The Pennsylvania Restaurant & Lodging Associationhad very specific criticisms which were discussed at the publichearing. Again, I draw these out because it is not clear to methere is much media attention given to the actual dialogue anddiscussions that we have had for the last several weeks. Obvi-ously, the coalition of public sector unions, among others, theCLEAR Coalition, proudly stand together because there is a lotto be said about solidarity with this administration. Teachersshould be in solidarity with State Store workers. PennDOT work-ers and AFSCME members should stand strong with their sistersand brothers from other unions. Working people in generalacross our great Commonwealth, many of whom do not have theprotections of a union, who do not have the benefits, who do notmake the wages and benefits that are accrued as a result of col-lective bargaining.

Millions of people across this State are becoming more andmore poor. We are wiping out the middle class in this Common-wealth and we are wiping out the middle class across our nation.I have oftentimes said that our country is going to heck in ahandbasket. The fact of the matter is people are getting richerand richer and there is a dwindling and disappearing middleclass. Why would we, who have taken an oath to advance thebenefits of the quality of life of the people we represent, want tojoin those at the top of the corporate ladder - CEOs who make400 times what an average worker makes? Why are we not com-ing to the defense of the constituents we represent and protectjobs? Whether they are public sector jobs or not, we should befighting each and every day for jobs and for building the middleclass. You know, at some point the rich people in this world andthe corporate leaders will wake up and say, holy smoke, there areonly a few of us rich folks left and nobody is here to do the work,nobody is here to pay the taxes, nobody is here to put the food onthe table. What is going on in this country? We should not becontributing to this economic decay that is happening in thiscountry due to basic corporate greed. We need to wake up eachand every day with one thought in mind, and that is how can werebuild the middle class in this country? That should be the goalof every one of us each and every day.

So, the CLEAR Coalition should be commended. We shouldput a medal on each one of them for standing up and fighting forworking people, because they fight for working people who havethe benefit of collective bargaining, but they fight each and everyday for all working people. Every time a collective bargainingworking-class person wins a benefit, that benefit helps nonunionwhite-collar workers. That has been true since the beginning ofthe labor movement in this country. A rising tide lifts all ships,and why the Republican Majority on the aisle opposite wants todestroy small businesses and destroy the livelihoods of workingpeople is just nonsensical and counterproductive, if notmean-spirited.

We heard from many private sector individuals who came tothose hearings. We heard from the F.O.P., those men and womenin law enforcement who are loathe to have to deal with the socialconsequences of liquor being sold at gas stations. Is that what we want to do? Is this what we are elected for? Forty percent of our


constituents do not even go to a liquor store. So all of this hog-wash about convenience and price is laughable. My uncle owneda liquor store in upstate New York. When I would go homemany years ago and tried to get a bottle of Bolla Valpolicella, itwas $3 more than in the State Store, and you went into a storethat had maybe 10 or 20 wines. Our State Stores should be heldup as an example of tremendous retail, the splendor of all thoseliquors and wines. I mean, how many wines can one man drink?How many vodkas do you have to have on the shelf? Nobody hasa better selection at a better price than the State Store system, ourown public trust.

We heard of many organizations that are involved in publicsafety that are very much concerned. These are the men andwomen who run into the building when it is on fire. These arepolice officers who run into people who are engaged in violenceagainst others or amongst themselves. We should heed their con-cern about what we are doing here today in terms of the prolifer-ation of alcohol. I think it is very important. We heard from somany drug and alcohol counseling organizations who clearlygave the statistics on the family tragedies and domestic violence,I could go on and on, associated with the demise of liquor prolif-eration in our Commonwealth.

We heard from a very colorful CEO from a corporation,Jacquin's, who gave very eloquent testimony before our hearing.He is a capitalist, a Republican capitalist. Why do you want tokill that capitalist, folks on the aisle opposite? He has a greatbusiness and employs 100 folks. He is at or near center city Phil-adelphia. He has over 40 Jacquin brands on the State Storeshelves, none of which are going to be there when you privatize,maybe 1 or 2. He will be thrown out of his job as CEO; those100 people will be threatened. He will not have preferential treat-ment that right now the State Store provides.

How about our growing industry of Pennsylvania wineries?I have heard commentary from folks from the aisle oppositeabout how concerned they are about agriculture and how con-cerned they are about small businesses. We have a growinggrape industry, part of agriculture, men and women who get upevery day and put their blood, sweat, tears, and hard money intogrowing and developing a vineyard, producing a wine productmade here in Pennsylvania. And do you know what? They aregiven preferential treatment by the State Store system. Theirwine is on the shelves. Ladies and gentlemen of the Senate, winewill not be on the shelves in the future. We are destroying thesesmall businesses. We are not going to be under a privatizationsystem providing the opportunity for those Pennsylvania winesto get top-shelf recognition in State Stores.

Some of you are not as old as I am. If you know about thesupermarket business in the 1950s and 1960s, when you wantedyour loaf of bread in that center aisle, maybe a little bit higher forpeople who are taller than Senator Ferlo, but if you wanted thatprime shelf space in the supermarket, in the old days you had toput cash out for the manager of that store. You slipped him a $50bill to get that Wonder Bread on that shelf. Those days havechanged with the corporatization of supermarkets, but the fact ofthe matter is, we are still part of a great system that producesPennsylvania wineries and Pennsylvania vodkas. I have a vodkacompany in my district that took an old glass plant, GlenshawGlass Company, and turned it into making a great, smoothvodka, Boyd & Blair. Please buy it. I am a proud vodka drinker.I buy Boyd & Blair. Buy it. It is keeping people employed in

Senator Vulakovich's district, right up the street from my district.It is a great vodka. But it is not going to have the prime space,prime shelf, and recognition if we go toward privatization.

I ask our colleagues to please think not about the ideology ofthe right and those who want to privatize everything under thesun. Some of us soon forget the Republican Majority nationally,under previous Presidential administrations, many of you re-member when Republicans called for the privatization of SocialSecurity. Well, that went over like a lead balloon. Then theycalled for privatization of the Medicare system. That went overlike a lead balloon. There are a lot of things that just because youproffer the term "privatization," with all the ideology and rhetoricof the Commonwealth Foundation--there are good things thatgovernment can do. I am here as one person standing up for gov-ernment. There are some things that government does not needto do. But we have a great system. Is it a system that we wouldcreate today? No. We know that, if we were going to start a sys-tem today. But it grew out of a historical reality of Prohibition,it has been around for 80-plus years, and it happens to be a greatsystem.

We have a counterproposal. We Democrats believe in mod-ernization and liberalization. We can improve the State Storesystem, and I hope in the hours to come before we close thisSession we will be able to have a vote and discussion on modern-ization.

Thank you, Mr. President, and thank you for your patience.The PRESIDENT. The Chair recognizes the gentleman from

Philadelphia, Senator Stack.Senator STACK. Mr. President, Senator Solobay was just

saying that that is a hard speech to follow, and SenatorTomlinson was over here and he said it was a scary thing that hebelieved and agreed with everything Senator Ferlo was saying.But he had me at hello, Mr. President. It is nice to be able toaddress some important points here on Petitions and Remon-strances.

Let me just shift gears a little bit to another area we havetalked about in this Session, which has been the funding of pub-lic education. And yet, we have another crisis of being able to getfunds, investment dollars to the future of Pennsylvania, our chil-dren, through the public education system. I know that recentpolling information has revealed that more and more Pennsylva-nians are sort of back on board with really believing in the publiceducation system. I did not have to read that in a poll to knowthat, Mr. President. We have a job to do with regard to publiceducation and making sure that we fund it the right way and thatwe invest in our future and we invest in our children and ourfamilies. If Pennsylvania is ever going to get out of the basementin job creation and economic development, the best investmentwe can make is with our young people, and we know we havemany challenges to face. It is not going to be an easy or simpleway up or a simple or easy plan, but we can do it if we continueto focus on it and we keep on focusing on our kids.

Mr. President, just a month ago, I traveled to Lincoln HighSchool in northeast Philadelphia, which is a public school thathas had its challenges. It is famous for one of its non-graduates,Sylvester Stallone, he went to 9th grade there and was a bit of aproblem student and never went to 10th grade there. But I wasthere for a rally with Philadelphia schoolteachers, and, in fact,the Philadelphia Federation of Teachers, to unveil legislation forthe city of Philadelphia to collect more of the $500-plus million


in delinquent taxes owed by property owners, businesses, and taxdeadbeats. I know that other colleagues in the House and theSenate have worked on this issue, specifically my friend andcolleague in the House, Representative Parker, who has workedhard on this. The one thing we know, particularly in these toughfiscal times, is that if the city could collect more money, and Isaid this at Lincoln High School, it would go a long way in help-ing the School District of Philadelphia close its $300-milliondeficit. And those teachers stood there because they want to bea part of the solution. If the city had the ability to slap liens onproperties where the owners failed to pay his or her fair share,the school kids of Philadelphia, and probably in other districtsthroughout the Commonwealth, would be in better shape. Also,if the city could garnish wages, people would be more likely toeither pay their taxes on time or try to come up with a paymentplan to at least get us down the road of actually collecting thatmoney, which we could then put back into the school district andhelp kids get educated and to back up teachers. That is what wesaid.

Now, today, a widely published study has come out, by thehighly respected Pew Charitable Trusts, and their study is aboutPhiladelphia's tax collection system. It said that right now, today,if Philadelphia used all of the current resources that it has at itsdisposal without any help from either my five-bill package orother legislation, that the city would only be able to collect, andthis would be if everything went right, $155 million of the morethan a half-billion dollars in back taxes and penalties that con-tinue to pile up every day. Well, I want you to know, Mr. Presi-dent, I believe in the city of Philadelphia and I believe that theschool district can turn it around and get the job done to educateour kids. I also believe that Harrisburg should be invested in thePhiladelphia School District's future success and should be will-ing, and it seems in many ways colleagues on both sides of theaisle, at least in this Chamber, agree on that point. I am going tocontinue to work each and every day to find solutions to twomajor Pennsylvania entities that have been racked by the GreatRecession and, I think, years of underfunding.

I stand here tonight to say, although I stand in support of thecity of Philadelphia, Mr. President, the city of Philadelphia needsto do a much better job in collecting taxes. Much better, Mr.President. Pew said in its report that Philadelphia has the fifthhighest rate of tax delinquency in 36 major U.S. cities. Accord-ing to the Philadelphia Daily News this morning in its analysisof the Pew study, it said, "Cities with high collectionrates...adhere to strict timetables about when and how to go afterdeadbeats. Philadelphia tax collectors, on the other hand, have agreater leeway in using collection tools and apply them inconsis-tently." Well, that is not the way a world-class city conducts itsbusiness, Mr. President. And guess what the inconsistency hasgotten us? Recently, the city counted yet another $44 million indelinquent tax debts just this year, and that is more than9 percent higher than the year before, Mr. President. It is crazy.It is unacceptable, and this cannot go on. The Philadelphia De-partment of Revenue says it is going to collect more, yet, thereis a growing pile of unpaid bills. The Revenue Department isfailing on an important role. It is failing future generations by notgiving them the funding that they should have for their educa-tion. Each dollar that tax delinquents choose not to pay, that theRevenue Department fails to collect, is a dollar that robs ourstudents of a quality education.

So we need to help the Philadelphia schools, but the Philadel-phia government, as I have said, has to do more to improve itscollection rate, and I am going to continue to advocate for bettertax collection tools for our city. Of course, I have said this timeand time again, we need to cut waste, we need to demand ac-countability, we need to spend money efficiently on our publiceducation, but we need to do better in how we conduct our busi-ness. Our kids deserve to be invested in, our children deserve ourhelp. We have a job to do, and if we all work together, Mr. Presi-dent, we can get it done. Thank you.


The PRESIDENT. Senator Pileggi and Senator Scarnati havereturned, and their temporary Capitol leaves are cancelled.

HOUSE MESSAGE

SENATE BILL RETURNED WITH AMENDMENTS

The Clerk of the House of Representatives returned to theSenate SB 259, with the information the House has passed thesame with amendments in which the concurrence of the Senateis requested.

The PRESIDENT. Pursuant to Senate Rule 13(c)(2)(i), the billwill be referred to the Committee on Rules and Executive Nomi-nations.

BILL SIGNED

The PRESIDENT (Lieutenant Governor Jim Cawley) in thepresence of the Senate signed the following bill:

SB 586.

MOTION PURSUANT TO SENATE RULE 11


Senator PILEGGI. Mr. President, I move that the Senate con-tinue debate beyond 11 p.m. to consider bills remaining on theCalendar.

On the question,Will the Senate agree to the motion?A voice vote having been taken, the question was determined

in the affirmative.

CONSIDERATION OF CALENDAR RESUMED

THIRD CONSIDERATION CALENDAR RESUMED

HB 790 CALLED UP

HB 790 (Pr. No. 2139) -- Without objection, the bill, whichpreviously went over in its order temporarily, was called up,from page 3 of the Third Consideration Calendar, by SenatorPILEGGI.

BILL AMENDED AND REREFERRED



An Act amending the act of April 12, 1951 (P.L.90, No.21), knownas the Liquor Code, in preliminary provisions, further providing fordefinitions; in Pennsylvania Liquor Control Board, further providing forgeneral powers; in Pennsylvania liquor stores, further providing for timeof sales and for sales by Pennsylvania liquor stores; in liquor, alcoholand malt and brewed beverages licenses and regulations, further provid-ing for authority to issue liquor licenses to hotels, restaurants and clubs,for license districts, periods, hearings, sales and restrictions, for sale ofmalt or brewed beverages, for liquor importers' licenses, fees, privilegesand restrictions, for interlocking businesses; providing for expandedpermits and for enhanced distributor and importing distributor permits;further providing for malt and brewed beverages manufacturers', distrib-utors' and importing distributors' licenses, for number and kinds oflicenses allowed same licensee, for distributors' and importing distribu-tors' restrictions, for retail dispensers' restrictions, for interlocking busi-nesses, for breweries, for county retail licenses, for assignability andtransfers, for local option, for surrender of license, for shipment of wineinto Commonwealth; establishing the Pennsylvania Wine Industry Pro-motion Board; further providing for unlawful acts, for alcohol and li-quor licensees, for identification cards and prosecution and for vacationof premises by patrons; in distilleries, wineries, bonded warehouses,bailees for hire and transporters for hire, further providing for limitedwineries and for distilleries; in disposition of collected funds, furtherproviding for money returned to municipalities; providing for moneypaid into the General Fund for use of the Commonwealth; further pro-viding for money for use of the Commonwealth; establishing the SeniorCitizens Property Tax Relief Fund; providing for a transfer from theState Stores Fund; providing for studies of the wine and spirits whole-sale system in this Commonwealth; and making a related repeal.

On the question,Will the Senate agree to the bill on third consideration?

POINT OF ORDER

The PRESIDENT. The Chair recognizes the gentleman fromErie, Senator Wiley.

Senator WILEY. Mr. President, I request a ruling pursuant toSenate Rule 20(c)(2).

The PRESIDENT. The gentleman will state his request.Senator WILEY. Mr. President, my father is a part-time em-

ployee of the Pennsylvania Liquor Control Board. My questionis whether I am permitted to vote on House No. 790 and amend-ments to those, pursuant to Article III, Section 13, of the Penn-sylvania Constitution.

The PRESIDENT. The Chair thanks the gentleman for hisinquiry about the conflict of interest and the factual situation justgiven.

The Chair finds in this situation that you have just describedthere is no conflict of interest, and the Chair would rule that inaccordance with Senate Rule 20, that you must vote on HouseBill No. 790 and any amendments to that bill. The Chair findsthat there is nothing particularly personal to you in this bill, Sen-ator Wiley. Your father is a member of a class of employees whomay or may not be affected by passage of this legislation. TheChair does not find that any votes you may cast would be partic-ularly personal to you or privately affect you alone. Therefore,it would be the ruling of the Chair that you would be required tovote on this bill.

Senator WILEY. Thank you, Mr. President.

And the question recurring,Will the Senate agree to the bill on third consideration?

PILEGGI AMENDMENT A3081

Senator PILEGGI offered the following amendment No.A3081:

Amend Bill, page 2, line 27, by inserting after "BOARD, ":providing for executive director of the board; and

Amend Bill, page 2, line 33, by striking out the comma after"CLUBS" and inserting:

andAmend Bill, page 2, line 33, by striking out ", HEARINGS," and

inserting: and hearings; providing for restaurant food market liquor license; fur-ther providing for issuance and transfer or extension of hotel, restaurantand club liquor licenses, for

Amend Bill, page 2, line 40, by inserting after "LICENSES,": for malt and brewed beverage retail licenses,

Amend Bill, page 2, lines 57 and 58, by striking out "PROVIDINGFOR A TRANSFER FROM THE STATE STORES FUND;"

Amend Bill, page 2, by inserting after line 60:The General Assembly finds and declares as follows:

(1) It is the purpose of this act to reform and modernize thesystem by which alcohol is dispensed and controlled within this Com-monwealth to reflect changes in the marketplace while continuing toprotect the welfare, health, peace and morals of the citizens of thisCommonwealth.

(2) The 21st amendment to the United States Constitutiondictates that the laws of the states shall govern the transportation andimportation of intoxicating liquors into the state for delivery and usewithin the state.

(3) Further, the United States Supreme Court has opined ininterpreting the 21st amendment that "the states' regulatory power overthis segment of commerce is largely unfettered by the Constitution'scommerce clause."

(4) Revenues derived from the operation of a system for themanufacture, transportation, distribution and sale of alcohol are neces-sary to implement and sustain a regulated marketplace to continue toprotect the welfare, health, peace and morals of the citizens of thisCommonwealth and to contribute to the overall economic stability ofthe Commonwealth.

(5) In order to adapt to the changing marketplace, this act will:(i) Permit private industry to offer additional products for sale

while ensuring that the laws of this Commonwealth are thoroughlyenforced.

(ii) Ensure that the value of licenses held by small businessesare not devalued, but are enhanced through the opportunity to expandoperations and sales.

(iii) Provide for the operation of a retail system that promotescompetition and convenience to ensure that the residents of this Com-monwealth purchase products within this Commonwealth.

(iv) In recognition of the growing use of e-commerce sales,permit consumers to purchase products online and have those productsshipped directly to them.

(v) Establish a system by which these increased opportunitieswill continue to contribute to overall fiscal stability of the Common-wealth.

(6) Recognition and furtherance of all these elements is essen-tial to the welfare, health, peace and morals of the citizens of this Com-monwealth.

Amend Bill, page 192, by inserting between lines 10 and 11:"Food market" shall mean a reputable place of business operated

by a responsible person or persons of good reputation that meets all ofthe following:

(1) Principally sells food, specifically dairy, fresh produce, fruit,eggs, food products for consumption off the premises and supplies forthe table.

(2) Has an area under one roof of two thousand five hundredsquare feet to thirty thousand square feet of which more than seventy-five per centum of its gross floor area is used in the preparation, pur-chase, service, consumption or storage of food, food products for con-sumption off the premises and supplies for the table.

* * *Amend Bill, page 193, line 7, by striking out "FOUR SIX-PACKS


OR UP TO TWO TWELVE-PACKS" and inserting: three six-packs or up to one twelve-pack and one six-pack in

a single transactionAmend Bill, page 194, by inserting between lines 2 and 3:Section 1.1. The act is amended by adding a section to read:Section 204.1. Executive Director of Board.--The Governor shall,

in accordance with the provisions of the Constitution of Pennsylvania,and by the advice and consent of a majority of the members of the Sen-ate, nominate and appoint an executive director of the board. The exec-utive director of the board shall serve at the pleasure of the Governor.The salary of the executive director shall be set by the executive boardpursuant to section 709 of the act of April 9, 1929 (P.L.177, No.175),known as "The Administrative Code of 1929."

Amend Bill, page 194, line 3, by striking out "1.1" and inserting: 1.2

Amend Bill, page 194, line 19, by inserting after "(A.1) ":(1)

Amend Bill, page 194, by inserting between lines 28 and 29:(2) Where the number of distributors and importing distributors

operating with a wine and spirits enhanced permit exceed the numberof Pennsylvania Liquor Stores in operation within a county as of theeffective date of this section by a factor of two, the Pennsylvania LiquorStores within a county must close within six months except when theprovisions of paragraph (3) apply.

(3) Before making a decision to close a Pennsylvania Liquor Storewithin a municipality without a distributor or importing distributoroperating with a wine and spirits enhanced permit, the board shall takeinto consideration the term of the current lease, the availability of andaccessibility of liquor to the public through the private retail market, thepricing of liquor in the area and the profitability of the PennsylvaniaLiquor Store. If it is determined by the board that the private retail mar-ket is serving the needs of the public, and the economic viability of thePennsylvania Liquor Store is unsustainable, the board shall close thePennsylvania Liquor Store.

Amend Bill, page 197, by inserting between lines 7 and 8:(l) After the completion of studies of the wine and spirits whole-

sale system by the Pennsylvania Legislative Budget and Finance Com-mittee and the board, if the findings of either study determine that leas-ing of the wine and spirits wholesale system would not have a signifi-cant negative impact on the annual fiscal stability of the Common-wealth, the board may issue a request for proposal for the lease of thewholesale liquor business for a period not to exceed ten years. A pro-posal may be awarded by a unanimous vote of the board if it is deter-mined by the board that the lease would result in an increase in annualgross profits to the Commonwealth.


Amend Bill, page 198, line 3, by inserting after "ACT;": and to eating places that hold an expanded permit as provided for

in section 415, distributors and importing distributors who hold an en-hanced permit as provided for in section 416

Amend Bill, page 198, lines 9 and 10, by striking out all of saidlines and inserting:

price. Wine sales to licensees who hold a wine expanded permitshall be made at a price that includes a discount of eighteen per centumfrom the retail price, regardless of whether the licensee offers the winefor consumption on or off the premises. Special spirit sales to licenseeswho hold a special spirits expanded permit shall be made at a price thatincludes a discount of eighteen per centum from the retail price regard-less of whether the licensee offers the special spirits for consumption onor off the premises. Sales to licensees who hold a wine or spirits en-hanced permit shall be made at a price that includes a discount of eigh-teen per centum from the retail price. The

Amend Bill, page 199, line 22, by striking out "FOUR SIX-PACKSAND UP TO TWO TWELVE-PACKS" and inserting:

three six-packs or up to one twelve-pack and one six-pack ina single transaction

Amend Bill, page 200, by inserting between lines 23 and 24:Section 2.3. The act is amended by adding a section to read:Section 403.1. Food Market Restaurant License.--(a) The board

is authorized to issue a restaurant liquor license to a food market that isnot within a radius three quarters of a mile of a distributor or importingdistributor and if the board determines there is not sufficient availabilityand accessibility of malt or brewed beverages through the private mar-

ket. The three-quarters-of-a-mile radius restriction shall not apply to afood market if all distributors or importing distributors within a radiusof three quarters of a mile do not obtain an enhanced wine or spiritspermit within six months of the effective date of this section. The li-censing period shall be as established under section 402. The applica-tion and issuance of the license is subject to sections 403 and 404 inso-far as provisions of those sections are not contrary to the provisions ofthis section. The application, renewal and filing fee shall be as pre-scribed in section 614-A(1) of the act of April 9, 1929 (P.L.177,No.175), known as "The Administrative Code of 1929."

(b) Licenses issued under this section are subject to the quota re-strictions contained under section 461.

(c) Licenses issued under this section are restaurant liquor licensesfor all purposes, except as provided herein. The following additionalrestrictions and privileges apply:

(1) A license issued under this section shall license the premisesof a food market located under one roof.

(2) Malt or brewed beverages, or wine sold pursuant to an autho-rized expanded permit, sold within a licensed food market shall beplaced under the roof of a licensed premises, in a specifically desig-nated area on the inside perimeter and not in the aisle of the premises,as approved by the board.

(3) Notwithstanding any other provisions of law, malt or brewedbeverages or wine sold pursuant to an authorized expanded permit, soldwithin a food market shall not be available for consumption on thelicensed premises.

(4) Licenses issued under this section shall not be required to meetthe requirements defining a restaurant contained in section 102.

(d) Licenses issued under this section are subject to section493(13).

Section 2.4. Section 404 of the act, amended January 6, 2006(P.L.1, No.1), is amended to read:

Section 404. Issuance, Transfer or Extension of Hotel, Restaurantand Club Liquor Licenses.--Upon receipt of the application and theproper fees, and upon being satisfied of the truth of the statements in theapplication that the applicant is the only person in any manner pecuni-arily interested in the business so asked to be licensed and that no otherperson will be in any manner pecuniarily interested therein during thecontinuance of the license, except as hereinafter permitted, and that theapplicant is a person of good repute, that the premises applied for meetall the requirements of this act and the regulations of the board, that theapplicant seeks a license for a hotel, restaurant or club, as defined in thisact, and that the issuance of such license is not prohibited by any of theprovisions of this act, the board shall, in the case of a hotel or restau-rant, grant and issue to the applicant a liquor license, and in the case ofa club may, in its discretion, issue or refuse a license: Provided, how-ever, That in the case of any new license or the transfer of any licenseto a new location or the extension of an existing license to cover anadditional area the board may, in its discretion, grant or refuse such newlicense, transfer or extension if such place proposed to be licensed iswithin three hundred feet of any church, hospital, charitable institution,school, or public playground, or if such new license, transfer or exten-sion is applied for a place which is within two hundred feet of any otherpremises which is licensed by the board: And provided further, That theboard's authority to refuse to grant a license because of its proximity toa church, hospital, charitable institution, public playground or otherlicensed premises shall not be applicable to license applications submit-ted for public venues or performing arts facilities: And provided further,That the board shall refuse any application for a new license, the trans-fer of any license to a new location or the extension of an existing li-cense to cover an additional area if, in the board's opinion, such newlicense, transfer or extension would be detrimental to the welfare,health, peace and morals of the inhabitants of the neighborhood withina radius of five hundred feet of the place proposed to be licensed: Andprovided further, That the board shall have the discretion to refuse alicense to any person or to any corporation, partnership or associationif such person, or any officer or director of such corporation, or anymember or partner of such partnership or association shall have beenconvicted or found guilty of a felony within a period of five years im-mediately preceding the date of application for the said license. [Theboard shall refuse any application for a new license, the transfer of anylicense to a new location or the extension of any license to cover anadditional area where the sale of liquid fuels or oil is conducted.] Theboard may enter into an agreement with the applicant concerning addi-


tional restrictions on the license in question. If the board and the appli-cant enter into such an agreement, such agreement shall be binding onthe applicant. Failure by the applicant to adhere to the agreement willbe sufficient cause to form the basis for a citation under section 471 andfor the nonrenewal of the license under section 470. If the board entersinto an agreement with an applicant concerning additional restrictions,those restrictions shall be binding on subsequent holders of the licenseuntil the license is transferred to a new location or until the board entersinto a subsequent agreement removing those restrictions. If the applica-tion in question involves a location previously licensed by the board,then any restrictions imposed by the board on the previous license atthat location shall be binding on the applicant unless the board entersinto a new agreement rescinding those restrictions. The board may, inits discretion, refuse an application for an economic development li-cense under section 461(b.1) or an application for an intermunicipaltransfer of a license if the board receives a protest from the governingbody of the receiving municipality. The receiving municipality of anintermunicipal transfer or an economic development license under sec-tion 461(b.1) may file a protest against the transfer of a license into itsmunicipality, and the receiving municipality shall have standing in ahearing to present testimony in support of or against the issuance ortransfer of a license. Upon any opening in any quota, an application fora new license shall only be filed with the board for a period of sixmonths following said opening.


Amend Bill, page 201, line 15, by striking out "SECTIONS" andinserting:

SectionAmend Bill, page 201, line 27, by striking out "FOUR SIX-PACKS

OR UP TO TWO TWELVE-PACKS" and inserting: three six-packs or up to one twelve-pack and one six-pack in

a single transactionAmend Bill, page 203, line 26, by striking out the period after

"LICENSE" and inserting:: Provided, That a restaurant liquor licensee who obtained a license

through section 403.1 shall file a written application with the board fora wine expanded permit and the board shall approve the application ifit determines there is not sufficient availability and accessibility of winethrough the private retail market.

Amend Bill, page 204, line 1, by inserting after "AND ":special

Amend Bill, page 204, line 6, by inserting after "AND ":special

Amend Bill, page 205, by inserting between lines 8 and 9:(7) An expanded permit holder shall utilize a transaction scan

device to verify the age of an individual who appears to be under thirty-five years of age before making a sale of liquor. An expanded permitholder may not sell or share data from the use of a transaction scandevice provided that the licensee may use the data to show the enforce-ment bureau of the board that the licensee is in compliance with this act.As used in this paragraph, the term "transaction scan device" means adevice capable of deciphering, in an electronically readable format, theinformation encoded on the magnetic strip or bar code of an identifica-tion card under section 495(a).

Amend Bill, page 205, lines 11 through 18, by striking out all ofsaid lines and inserting:

(1) For a wine expanded permit:(i) Two thousand dollars ($2,000) for licensees whose total annual

alcohol purchase from the board is less than one hundred thousanddollars ($100,000) in the prior calendar year.

(ii) Four thousand dollars ($4,000) for licensees whose total annualalcohol purchase from the board is between one hundred thousand andone dollar ($100,001) and two hundred thousand dollars ($200,000) inthe prior calendar year.

(iii) Six thousand dollars ($6,000) for licensees whose total annualpurchase from the board is greater than two hundred thousand and onedollar ($200,001) in the prior calendar year.

(2) For a special spirits expanded permit, a fee of two thousanddollars ($2,000).

Amend Bill, page 205, lines 24 through 30; page 206, lines 1 and2, by striking out all of lines 24 through 30 on page 205 and all of line1 and "(II) A WINE EXPANDED PERMIT" in line 2 on page 206 andinserting:

(1) A wine expanded permit holder may sell in a single transaction Amend Bill, page 206, lines 6 through 10, by striking out all of

lines 6 through 9 and "(iv)" in line 10 and inserting: (2)

Amend Bill, page 206, line 10, by striking out the comma after"PERMIT" and inserting:

holder may sell in a single transactionAmend Bill, page 206, line 14, by striking out "(2)" and inserting:

(3)Amend Bill, page 207, line 17, by inserting after "or ":

special Amend Bill, page 208, lines 16 and 17, by striking out " EIGHT"

in line 16 and all of line 17 and inserting::(A) Four thousand dollars ($4,000) for licensees whose total an-

nual alcohol purchase from the board is less than two hundred thousanddollars ($200,000) in the prior calendar year.

(B) Eight thousand dollars ($8,000) for licensees whose total an-nual alcohol purchase from the board is between two hundred thousandand one dollar ($200,001) and four hundred thousand dollars ($400,000)in the prior calendar year.

(C) Twelve thousand dollars ($12,000) for licensees whose totalannual purchase from the board is greater than four hundred thousandand one dollar ($400,001) in the prior calendar year.

Amend Bill, page 208, lines 18 and 19, by striking out " FOURTHOUSAND" in line 18 and all of line 19 and inserting:

:(A) Two thousand dollars ($2,000) for licensees whose total an-

nual alcohol purchase from the board is less than one hundred thousanddollars ($100,000) in the prior calendar year.

(B) Four thousand dollars ($4,000) for licensees whose total an-nual alcohol purchase from the board is between one hundred thousandand one dollar ($100,001) and two hundred thousand dollars ($200,000)in the prior calendar year.

(C) Six thousand dollars ($6,000) for licensees whose total annualpurchase from the board is greater than two hundred thousand and onedollar ($200,001) in the prior calendar year.

Amend Bill, page 208, lines 20 and 21, by striking out " FOURTHOUSAND" in line 20 and all of line 21 and inserting:

:(A) Two thousand dollars ($2,000) for licensees whose total an-

nual alcohol purchase from the board is less than one hundred thousanddollars ($100,000) in the prior calendar year.

(B) Four thousand dollars ($4,000) for licensees whose total an-nual alcohol purchase from the board is between one hundred thousandand one dollar ($100,001) and two hundred thousand dollars ($200,000)in the prior calendar year.

(C) Six thousand dollars ($6,000) for licensees whose total annualpurchase from the board is greater than two hundred thousand and onedollar ($200,001) in the prior calendar year.

Amend Bill, page 209, line 19, by striking out ".750" and inserting: 750

Amend Bill, page 210, line 8, by striking out "(RESERVED)." andinserting:

An enhanced permit holder shall utilize a transaction scan deviceto verify the age of an individual who appears to be less than thirty-fiveyears of age before making a sale of liquor. An expanded permit holdermay not sell or share data from the use of a transaction scan deviceprovided that the licensee may use the data to show the enforcementbureau of the board that the licensee is in compliance with this act. Asused in this paragraph, the term "transaction scan device" means a de-vice capable of deciphering, in an electronically readable format, theinformation encoded on the magnetic strip or bar code of an identifica-tion card under section 495(a).

Amend Bill, page 212, line 5, by inserting a bracket before "THE"Amend Bill, page 212, line 7, by inserting a bracket after "CON-

DUCTED."Amend Bill, page 215, by inserting between lines 21 and 22:Section 6.1. Section 432(d) of the act, amended January 6, 2006

(P.L.1, No.1), is amended to read:Section 432. Malt and Brewed Beverages Retail Licenses.--* * *(d) The board shall, in its discretion, grant or refuse any new li-

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


an existing license to cover an additional area if such place proposed tobe licensed is within three hundred feet of any church, hospital, charita-ble institution, school, or public playground, or if such new license,transfer or extension is applied for a place which is within two hundredfeet of any other premises which is licensed by the board. The boardshall refuse any application for a new license, the transfer of any licenseto a new location or the extension of an existing license to cover anadditional area if, in the board's opinion, such new license, transfer orextension would be detrimental to the welfare, health, peace and moralsof the inhabitants of the neighborhood within a radius of five hundredfeet of the place to be licensed. The board may enter into an agreementwith the applicant concerning additional restrictions on the license inquestion. If the board and the applicant enter into such an agreement,such agreement shall be binding on the applicant. Failure by the appli-cant to adhere to the agreement will be sufficient cause to form the basisfor a citation under section 471 and for the nonrenewal of the licenseunder section 470. If the board enters into an agreement with an appli-cant concerning additional restrictions, those restrictions shall be bind-ing on subsequent holders of the license until the license is transferredto a new location or until the board enters into a subsequent agreementremoving those restrictions. If the application in question involves alocation previously licensed by the board, then any restrictions imposedby the board on the previous license at that location shall be binding onthe applicant unless the board enters into a new agreement rescindingthose restrictions. The [board shall refuse any application for a newlicense, the transfer of any license to a location where the sale of liquidfuels or oil is conducted or the extension of an existing license to coveran additional area: And provided further, That the] board shall have thediscretion to refuse a license to any person or to any corporation, part-nership or association if such person, or any officer or director of suchcorporation, or any member or partner of such partnership or associa-tion shall have been convicted or found guilty of a felony within a pe-riod of five years immediately preceding the date of application for thesaid license. The board may, in its discretion, refuse an application foran economic development license under section 461(b.1) or an applica-tion for an intermunicipal transfer or a license if the board receives aprotest from the governing body of the receiving municipality. Thereceiving municipality of an intermunicipal transfer or an economicdevelopment license under section 461(b.1) may file a protest againstthe approval for issuance of a license for economic development or anintermunicipal transfer of a license into its municipality, and such mu-nicipality shall have standing in a hearing to present testimony in sup-port of or against the issuance or transfer of a license. Upon any open-ing in any quota, an application for a new license shall only be filedwith the board for a period of six months following said opening.

* * *Amend Bill, page 217, lines 23 and 24, by striking out "FOUR

SIX-PACKS AND UP TO TWO TWELVE-PACKS" and inserting: three six-packs or up to one twelve-pack and one six-pack in

a single transactionAmend Bill, page 219, line 1, by inserting after "AMENDED":

and the section is amended by adding subsectionsAmend Bill, page 219, by inserting between lines 27 and 28:(c) (1) The holder of a brewery license may, at the discretion of

the board, obtain a farmers market permit. The permit shall entitle theholder to participate in more than one farmers market at any given timeand an unlimited number throughout the year and sell malt or brewedbeverages produced under the authority of the underlying brewery li-cense by the bottle or in a package not to exceed one hundred forty-fourounces. Samples not to exceed four fluid ounces per brand of malt orbrewed beverages may be offered free of charge. A farmers marketpermit shall be issued upon proper application and payment of an an-nual fee of two hundred fifty dollars ($250). A permit holder may par-ticipate in more than one farmers market at any given time. Sales bypermit holders shall take place during the standard hours of operationof the farmers market. Written notice of the date, times and location thepermit is to be used shall be provided by the permit holder to the en-forcement bureau at least two weeks prior to the event. Except as pro-vided in this subsection, breweries utilizing farmers market permitsshall be governed by all applicable provisions of this act as well as byall applicable regulations adopted by the board.

(2) The term "farmers market" as used in this subsection shallinclude any building, structure or other place:

(i) owned, leased or otherwise in the possession of a person, mu-

nicipal corporation or public or private organization;(ii) used or intended to be used by two or more farmers or an asso-

ciation of farmers, who are certified by the Department of Agricultureto participate in the Farmers Market Nutrition Program subject to 7CFR Pt. 249 (relating to Senior Farmers' Market Nutrition Program(SFMNP)), for the purpose of selling agricultural commodities pro-duced in this Commonwealth directly to consumers;

(iii) which is physically located within this Commonwealth; and(iv) which is not open for business more than twelve hours each

day.(3) The permit, as authorized by this subsection, is only available

to breweries who produce less than one hundred thousand barrels peryear. All brands of malt or brewed beverages sold or provided under thefarmers market permit must be registered as set forth by this act.

(d) The holder of a brewery license may also sell wines producedby a licensed limited winery or distilled liquor produced by a licensedlimited distillery.

Amend Bill, page 222, line 9, by striking out "468(e) OF THEACT, ADDED" and inserting:

468(a) and (e) of the act, amended or added December 20, 2000(P.L.992, No.141), February 21, 2002 (P.L.103, No.10), June 28, 2011(P.L.55, No.11) and

Amend Bill, page 222, line 11, by striking out "TRANSFERS.--** *" and inserting:

Transfers.--(a) (1) Licenses issued under this article may not beassigned. The board, upon payment of the transfer filing fee, is herebyauthorized to transfer any license issued by it under the provisions ofthis article from one person to another or from one place to another, orboth. Except for restaurant liquor and eating place retail dispenser li-censes transferred under section 461(b.4), if the license is a retail li-cense, the new location must be within the same county as the existinglocation or, if the municipality is located in more than one county,within the same municipality as the existing location.

(2) In the case of distributor and importing distributor licenses, theboard may transfer any such license from its place in a municipality toa place in any other municipality within the same county, or from oneplace to another place within the same municipality, or exchange adistributor license for an importing distributor license or an importingdistributor license for a distributor license, if the building for which thelicense is to be issued has, in the case of an importing distributor li-cense, an area under one roof of two thousand five hundred square feetand, in the case of a distributor license, an area under one roof of onethousand square feet: And provided, That, in the case of all transfers ofdistributor or importing distributor licenses, whether from a placewithin the same municipality to another place within the same munici-pality or from a place in a municipality to a place in any other munici-pality within the same county, and, in the case of an exchange of adistributor license for an importing distributor license or an importingdistributor license for a distributor license, the premises to be affectedby the transfer or exchange shall contain an office separate and apartfrom the remainder of the premises to be licensed for the purpose ofkeeping records, required by the board, adequate toilet facilities foremployes of the licensee and an entrance on a public thoroughfare:Provided, however, That in the event that the majority of the votingelectors of a municipality, at an election held under the provisions ofany law so empowering them to do, shall vote against the issuance ofdistributor or importing distributor licenses in such municipality, theboard is hereby authorized to transfer any such distributor or importingdistributor license from its place in such municipality to a place in anyother municipality within the same county, upon application prior to theexpiration of any such license and upon payment of the transfer filingfee and the execution of a new bond; but no transfer shall be made to aperson who would not have been eligible to receive the license origi-nally nor for the transaction of business at a place for which the licensecould not lawfully have been issued originally, nor, except as hereinprovided, to a place as to which a license has been revoked.

(3) [No license shall be transferred to any place or property uponwhich is located as a business the sale of liquid fuels and oil.] Exceptin cases of emergency such as death, serious illness, or circumstancesbeyond the control of the licensee, as the board may determine suchcircumstances to justify its action, transfers of licenses may be madeonly at times fixed by the board. In the case of the death of a licensee,the board may transfer the license to the surviving spouse or personalrepresentative or to a person designated by him. From any refusal to


grant a transfer or upon the grant of any transfer, the party aggrievedshall have the right of appeal to the proper court in the manner herein-before provided.

(4) In the event the license to be transferred has been ordered toserve a suspension under section 471 and has not served the suspensionat the time the board considers the application and all appeals regardingthe suspension have been exhausted, the board may require the trans-feree to serve the suspension as a condition for approval of the transfer.Further, the board may convert the outstanding suspension into a fineand require the transferee to pay the fine as a condition for approval ofthe transfer. If the board converts the outstanding suspension to a fine,the fine need not comply with the minimum and maximum amounts setforth in section 471 for the underlying citation.

* * *Amend Bill, page 235, by inserting between lines 4 and 5:(D) The sales and use tax imposed under section 1003 of the act of

December 18, 1984 (P.L.1005, No.205), known as the "Municipal Pen-sion Plan Funding Standard and Recovery Act."

Amend Bill, page 235, line 5, by striking out "(D)" and inserting: (E)

Amend Bill, page 235, line 9, by striking out all of said lineAmend Bill, page 240, line 13, by inserting after "AND ":

special Amend Bill, page 244, lines 28 and 29, by striking out "FOUR

SIX-PACKS OR UP TO TWO TWELVE-PACKS" and: inserting three six-packs or up to one twelve-pack and one six-pack in

a single transactionAmend Bill, page 248, line 15, by striking out "sections" and insert-

ing: a section

Amend Bill, page 248, lines 25 through 30; page 249, line 1, bystriking out all of said lines on said pages

Amend Bill, page 249, by inserting between lines 1 and 2:Section 1002. Small Brewers Tax Credits.--(a) A tax credit or

credits shall be allowed for each calendar year to a taxpayer, not toexceed in total amount the amount of qualifying capital expendituresmade by the taxpayer and certified by the secretary.

(b) A taxpayer desiring to claim a tax credit or credits under thissection shall, within one year of the date of the original purchase of thequalifying capital expenditures, in accordance with regulations promul-gated by the secretary, report annually to the secretary the nature,amounts and dates of qualifying capital expenditures made by him andsuch other information as the secretary shall require. If satisfied as tothe correctness of such a report, the secretary shall issue to the taxpayera certificate establishing the amount of qualifying capital expendituresmade by the taxpayer and included within said report. The taxpayershall also provide to the secretary the number of employes, total produc-tion of malt or brewed beverages and the amount of capital expendituresmade by the taxpayer at each location operated by the taxpayer or aparent corporation, subsidiary, joint venture or affiliate. The taxpayershall notify the secretary of any contract for production held with an-other manufacturer. The secretary shall file a report annually with theChief Clerk of the House of Representatives and with the Secretary ofthe Senate outlining the employment, production, expenditures and taxcredits authorized under this section.

(c) Upon receipt from a taxpayer of a certificate from the secretaryissued under subsection (a), the secretary shall grant a tax credit orcredits in the amount certified against any tax due under Article XX ofthe act of March 4, 1971 (P.L.6, No.2), known as the "Tax ReformCode of 1971," in the calendar year in which the expenditures wereincurred or against any tax becoming due from the taxpayer under Arti-cle XX of the "Tax Reform Code of 1971," in the following three calen-dar years. No credit shall be allowed against any tax due for any taxableperiod ending before January 1, 2013, and no taxpayer shall be eligibleto receive a tax credit for a qualifying expenditure made on or beforeDecember 31, 2009.

(d) (1) As used in this section, the following words and phrasesshall have the meanings given to them in this subsection unless thecontext clearly indicates otherwise:

"Amounts paid." The phrase means:(i) amounts actually paid; or(ii) at the taxpayer's election, amounts promised to be paid under

firm purchase contracts actually executed during any calendar year:Provided, however, That there shall be no duplication of "amounts paid"

under this definition."Qualifying capital expenditures." Amounts paid by a taxpayer for

the purchase of items of plant, machinery or equipment for use by thetaxpayer within this Commonwealth in the manufacture and sale of maltor brewed beverages: Provided, however, That the total amount of qual-ifying capital expenditures made by a taxpayer within a single calendaryear shall not exceed two hundred thousand dollars ($200,000) andmust have been made on or after January 1, 2010.

"Secretary." The Secretary of Revenue of the Commonwealth ofPennsylvania where not otherwise qualified.

"Taxpayer." A manufacturer of malt or brewed beverages claiminga tax credit or credits under this section after making a qualifying capi-tal expenditure.

(2) Except as otherwise provided in clause (1), the definitions insection 2002 of the "Tax Reform Code of 1971," shall apply to thissection.

Amend Bill, page 249, by inserting between lines 27 and 28:(vii) Determine whether the current quota system in each

individual county is meeting consumer demand.Amend Bill, page 250, by inserting between lines 21 and 22:

(vii) Determine whether the current quota system in eachindividual county is meeting consumer demand.

Amend Bill, page 251, by inserting between lines 2 and 3:Section 29. The regulations of the board at 40 Pa. Code §§ 3.52

(relating to connection with other business), 3.53 (relating to restrictionon storage and sales where board has approved connection with otherbusiness), 3.54 (relating to separation between licensed premises andother business) and 3.56 (relating to licensed premises operated in con-junction with other business) are abrogated to the extent the regulationsare inconsistent with this act.



On the question,Will the Senate agree to the amendment?


Senator PILEGGI. Mr. President, House Bill No. 790 willmake historic changes to how alcohol is sold in Pennsylvania. Aswe have worked to advance this bill, our focus has been on theconsumer, the average Pennsylvanian who wants it to be moreconvenient to buy beer, wine, and spirits. This bill, the productof months of hard work in the Senate by the chairman of theCommittee on Law and Justice, Senator McIlhinney, accom-plishes that goal.

My amendment will make a number of important changes toHouse Bill No. 790, as it was reported from SenatorMcIlhinney's committee. Specifically, beer distributors can sellwine and spirits in addition to beer. Those holding R licenses -restaurant, or tavern licenses, referred to as R licenses - can sellwine in addition to beer. Food markets who purchase an R li-cense, if they meet a certain size and food requirements, canoperate an R license, and for those more than three-quarters of amile from a beer distributor, they can apply for an exemptionfrom the requirement to have 30 seats.

This amendment also removes the prohibition against sellingalcohol near gas pumps. It contains a specific formula determin-ing when State Stores will be closed. The Liquor Control Boardis empowered to lease the wholesale distribution system for aperiod not to exceed 10 years, if such a lease would increaseannual profits to the Commonwealth. It also requires that twoseparate studies be conducted to determine if the system is meet-ing consumer demand in each county. It also contains a provision


allowing Pennsylvania breweries to sell their product at farmersmarkets in Pennsylvania. In addition, a small brewers tax credit,which previously existed for many years in Pennsylvania, will bereinstated.

Mr. President, we are on the verge of making improvementsto our system that consumers have wanted for decades. Mr. Pres-ident, I ask for an affirmative vote on amendment A3081.

The PRESIDENT. The Chair recognizes the gentleman fromAllegheny, Senator Ferlo.

Senator FERLO. Mr. President, as you know, I have the privi-lege of serving as the Minority chair of the Committee on Lawand Justice, and notwithstanding my differences with our chair-man, Majority Chairman McIlhinney, I do rise to strenuouslyspeak in opposition to A3081 as was just presented by our goodcolleague, Senator Pileggi. When I was growing up, my fatherand mother always told me to mean what I say and say what Imean, but when you read this amendment, this substantially dif-ferent amendment from House Bill No. 790, it really is, quitefrankly, confusing and poorly constructed, notwithstanding thegeneric description and delineation of its elements by the Major-ity Leader here today.

First and foremost, when you look at the bill, it would suggestthat restaurants can sell wine, but only one style of spirits. Sothey have to decide if they want to sell vodka or bourbon, and Iam not sure how that in any way advances some of the supposedlofty benefits of privatization. I am not sure what one type ofdistilled spirit they would be able and willing to sell and by whatmethodology they would use. The bill really, as amended, wouldallow grocery and convenience stores to be able to get an R li-cense, but can only get the expanded permit if the board deter-mines that the marketplace is underserved by current wine permitholders. By what criteria the Liquor Control Board is empoweredto make this decision is quite mystical. There is no reference toit in the amendment that is being presented here today. It is com-pletely unclear about the process of closing down wholesaleoperations. The amount of revenue that would have to be raisedby the lease, the power of the General Assembly, and the Gover-nor, if operations were to be leased, and what the PLCB is sup-posed to use as criteria to determine what even the request for aproposal would be or what is the best version of an RFP.

Clearly, we asked the question, why has the Governor ap-pointed a CEO to a position that is controlled by three gubernato-rial appointees? One of the amendments talks about the issue ofhow the CEO of the LCB system would be hired.

Why was package reform for both the R, the H, and the E, therestaurants and hotels, the eating establishments under this pro-posal, reduced to three six-packs, something that our moderniza-tion proposal would basically strengthen that profitability fortaverns, restaurants, as well as distributors. The removal of thoseseating requirements from restaurant licenses simply does notmake any sense, because it is intended to provide for on-premiseconsumption and not to allow gas stations and conveniencestores to compete for to-go sales. The so-called fuel prohibition,meaning gasoline stations, has worked well in Pennsylvania.Obviously, we strenuously object to removing this provision forhealth and safety, a debate and vote was taken back in the 1990sby the General Assembly.

The policies, if implemented, for many convenience storesand gas stations to sell beer and liquor uniformly, I think, amongthe public would be considered bad public policy, certainly by

our public safety officials throughout our great Commonwealth.We have a great system and an asset that keeps alcohol out of thehands of minors. I want to point out just one example, you takethe Wawa as an example. The chain of stores once had a locationwith an eating-place license. The licensee was cited nine times,nine times for violations, eight were for sales to minors, and thePLCB ultimately had to revoke their license. This is just oneexample of what awaits us if we permit convenience stores andgas stations to sell alcohol.

And in my three-county district, I can list off and enumeratemany examples of nightmares for nearby residents who had toput up with beer and alcohol sales. Both the Pennsylvania Res-taurant and Lodging Association, Mr. President, as well as thePennsylvania Tavern Association, I think as early as this morn-ing, once again, have rightly come out in opposition to this planbecause the 18-percent discount for permit holders creates, basi-cally, a two-tiered system for profitability. As the amendmentclarifies, the discount applies to both on- and off-premise con-sumption. This puts the vast majority of taverns and restaurantsat a competitive disadvantage to those that have the permits. Thisis unfair and nonsensical, in my opinion. Having worked oncommunity economic development for more than 20 years, Ibelieve strongly in the viability and the sustainability of tavernsand restaurants throughout the urban core of our cities and manytowns throughout the Commonwealth. Quality taverns and res-taurants have helped to rebuild main streets in neighborhoodbusiness corridors. Why we would want to reduce the profitabil-ity and disadvantage them with a two-tiered system makes nosense to me. Quite simply, this amendment is poorly thought outand creates an inconvenient and confusing system of wine andspirits sales.

The amendment also requires a three-quarter-mile buffer zonefor distributors but takes it away after 6 months, unless the dis-tributor gets an enhanced permit. Basically, the Majority on theaisle opposite is forcing them to enter the wine and spirits busi-ness. Really, that part of the amendment completely perplexesme. The amendment requires two studies, as the Majority Leadersuggested, and if one of the two studies determines that it is eco-nomically feasible to lease the wholesale operation of the LCB,then the Pennsylvania Liquor Control Board can release a requestfor proposal to enter a 10-year lease agreement. But again, thereis no specificity.

It is interesting that we have spent years in the General As-sembly, long before I arrived here, and usually the legislaturealways insists on putting its stamp of approval on each and everychange within the State Store system. This whole amendmentthrows complete caution to the wind. It is nonsensical. It doesnot achieve all the lofty rhetoric and the ideology behind theCorbett administration and those who are seeking to destroy agreat public trust and a public asset. So for those and many otherreasons which I have spoken about earlier, I would ask that all ofour colleagues, especially within our ranks, vote "no" on thisill-advised amendment.

Thank you, Mr. President.

POINT OF ORDER

The PRESIDENT. The Chair recognizes the gentlewomanfrom Philadelphia, Senator Tartaglione.


Senator TARTAGLIONE. Mr. President, I rise to request aruling pursuant to Senate Rule 20.

The PRESIDENT. The gentlewoman will state her request.Senator TARTAGLIONE. Mr. President, my brother is an

employee of the Pennsylvania Liquor Control Board, and, addi-tionally, I am a dues-paying member of the United Food andCommercial Workers Union, which represents State Store em-ployees.

The PRESIDENT. The Chair thanks the gentlewoman for herinquiry about the conflict of interest in the factual situation justgiven.

Similar to the previous request for a ruling of conflict of inter-est, the Chair finds that in the situation that you have just de-scribed, there is no conflict of interest and the Chair would rule,in accordance with Senate Rule 20, that you must vote on HouseBill No. 790 and any amendments to that bill. The Chair findsthat there is nothing particularly personal to you in this bill, Sen-ator Tartaglione. Your brother is a member of a class of employ-ees who may or may not be affected by passage of this legisla-tion. Further, you are a member of a class of union members whomay or may not be affected by the passage of this legislation.The Chair does not find that any votes that you may cast wouldbe particularly personal to you or privately affect you alone.Therefore, it would be the ruling of the Chair that the gentle-woman is required to vote on this bill and any amendments.

Senator TARTAGLIONE. Thank you, Mr. President.

And the question recurring,Will the Senate agree to the amendment?

The PRESIDENT. The Chair recognizes the gentlewomanfrom Philadelphia, Senator Washington.

Senator WASHINGTON. Mr. President, as we work late intothe night considering the amendment to the liquor privatizationbill, I rise to share with my Democratic colleagues concerns overthe unknown issues surrounding this proposal. I agree that wecan still modernize our State Store system under the great pro-posal that my colleague from Allegheny County, Senator Ferlo,put forth. However, this late-night, last-minute amendment is notthe answer to our problems and will not improve Pennsylvania.

Over these past few weeks, I received calls, letters, e-mails,and tweets from my constituents who worry about what happensif we expand liquor sales to the extent being discussed tonight.Yet, Mr. President, we have not even been able to properly re-view this hastily drawn amendment that was considered behindclosed doors. As much as I have tried to provide updated infor-mation to my constituents, those who elected me to serve themand to be a voice in the legislature, I regret that I cannot providethem answers as to how the proposal will affect the way we dobusiness in Pennsylvania.

Will our children have greater access to liquor without thesupervision of our great State Store workers? Will DUIs increaseif we sell beer at gas stations? What will happen to the thousandsof middle-class workers who stand to lose their jobs under thisproposal? Where are the guarantees that they will be rehiredunder this new system? If I cannot inform my constituents aboutthese and other issues, neither can anyone else. If we cannotanswer questions about this proposal and know how it affects ourdistricts, we should not, in good conscience, vote for it. This planis a slap in the face to our workers. I cannot, and will not, sup-

port a proposal that could put so many hardworking Pennsylvani-ans on the unemployment line and cost us hundreds of millionsof dollars in lost revenue opportunities. I worry that even if theworkers are rehired under the new plan, they will not earn a de-cent wage and benefit package that allows them to take care oftheir families and maybe even put aside funds to send their chil-dren to college or for their retirement.

Additionally, Mr. President, the small distributors stand to becrowded out of the market. These great small businesses haveplayed by our rules for years and have become a trusted part ofour communities. We do not know how the proposal will affectthem, and I worry that our small distributors will fail if we do nottake the time to properly vet these plans before we move for-ward. Mr. President, the Democratic Caucus has been repeatedlyleft out of the discussion surrounding this proposal. This pro-posal, which did not have enough votes to pass as recently as thisevening, has been shoved down our throats. My colleagues onthe other side of the aisle seem to think that introducing this inthe late hours of the night will help to advance the Governor'sagenda, but this is not acceptable and is not good government.

We were elected to serve the constituents of our districts andwe are not doing our job if we are letting this amendment slidethrough without proper consideration. We need to review this inthe light of day, let our constituents see what is proposed, andhold hearings on this matter. The public deserves to know whatis in this proposal. Mr. President, this is a flawed and hasty at-tempt to satisfy the Governor's demand for unnecessary, quote,"reform," unquote. This is not the solution to the real problemsthat we have, and I urge my colleagues to value the hardworkingPennsylvanians and vote "no" on this measure.


Chester, Senator Dinniman.Senator DINNIMAN. Mr. President, for those watching on

PCN, welcome to the new, reformed Senate, where we have keptour commitment to end at 11 p.m., and where we have no latemidnight Sessions on matters of great importance to the Com-monwealth, Sessions that produced the raise in Members' sala-ries, if you remember so many years ago and then we promisedreform.

In the 1990s, the Senate and the House, understanding thecombustible and deadly combination of beer and alcohol, madelaws to separate the two. That is why you cannot buy beer whereyou pumped gas. I suppose we should be grateful that those whoare advocating these changes are not suggesting that we have onepump that is filled with gas and the other pump where you cansimply guzzle the beer down, because what is going on here is nodifferent. If someone who is driving could go into a store, getthat beer and drink that beer, and get other spirits at these stores,then we are creating a very combustible and dangerous situation.We are rejecting what our colleagues in the Senate and Housetogether created, this prohibition, which they created becausethey knew full well the danger of alcohol and driving. In fact,anyone who has had their family member killed or injured by aDUI should be outraged by the suggestion of putting beer andgas together. While this might mean more profits for theSheetzes and the Wawas of this Commonwealth, it is not in theinterest of the young people of this Commonwealth.

Speaking of this, let me say that we hear that the focus of allthis is a new way for consumer convenience. I do not understand


how you get consumer convenience when this amendment saysif I go to one Wawa or to one Sheetz and I get my beer, I canonly get one type of spirit. In other words, is this amendmentsuggesting in the name of consumer convenience that we drivefrom store to store to get the bourbon, and then another store toget the scotch, and then another store to get the vodka? How isthis consumer convenience? Perhaps the Republican Caucusmight want to put out a Wawa act so that one would know whereand which store to go to pick up which kind of liquor, becausethat is the end result. Maybe we can have a Sheetz act too. Comeon, this is not going to result in consumer convenience when youhave to go from store to store to figure out which kind of liquoryou want to get under this bill.

Let me ask this question, too. What happened to the originalbill that the Governor suggested that there be $1 billion for edu-cation? Remember, that was the money that was going to helpour public schools which are struggling now and starving be-cause of the lack of our focus on education? We focused so muchon booze that we forgot all about the schools of this Common-wealth. How are they going to be helped? It was $1 billion andit was said with great fervor--well, when the House got finished,it was $800 million. And from what I can figure out in this bill,the only new money really coming in is from the sale of theselicenses, which is about $15 million, $20 million at most, andthat does not go for education, it appears that now goes for seniorcitizens. So we went from $1 billion that we were going to useto change this Commonwealth, we were going to help the tax-payers, we were going to save those school kids who were inthose struggling schools, now we are down to $10 million or $15million from the sale of licenses?

POINT OF ORDER

Senator PILEGGI. Mr. President, point of order.The PRESIDENT. The gentleman will state his point of order.Senator PILEGGI. Mr. President, I believe that we are debat-

ing an amendment to House Bill No. 790, not the underlying bill.This is not on final passage. I believe the debate should be con-fined to the amendment.

Senator DINNIMAN. Mr. President, I will correct myself.Senator COSTA. Mr. President.The PRESIDENT. One at a time.Senator Pileggi, have you finished your point of order?Senator PILEGGI. Mr. President, I have.The PRESIDENT. The Chair recognizes the gentleman from

Allegheny, Senator Costa.Senator COSTA. Mr. President, the gentleman's remarks

clearly are reflective of language in the amendment that talksabout fees as it relates to licensees and the like. He is clearlywithin the bounds of talking about an issue that is very muchgermane to the amendment, and I ask that he be able to continue.Thank you.

The PRESIDENT. Senator Dinniman, if you would, please,as best as you can, reserve your comments specifically to theamendment that is before us currently and keep in mind thatobviously we are not debating final passage of any bill here.

Senator COSTA. Mr. President, he has kept his remarks to theconfines of the amendment when he talks about the revenue gen-erated by this proposed amendment. To say that he has not donethat or to further try to restrict what he has to say is inappropriate

by the Chair. The gentleman has the privilege and the opportu-nity to speak about an amendment that contains language relativeto fees being charged and conversations in this Chamber and thisGeneral Assembly and the public that talks about the amount ofrevenue generated. He is clearly within the confines of what hecan talk about and should be able to continue unrestricted by theChair. Thank you.

The PRESIDENT. The admonition from the Chair stands.Senator Dinniman, if you would please continue with your com-ments.

Senator DINNIMAN. Mr. President, we should not be afraidof looking at the fact that this amendment generates only $10million to $15 million of new revenue for the Commonwealth asopposed to the original bill presented in the House and by theGovernor of this Commonwealth which promised $1 billion. AndI am finished with that aspect of my remarks.

Further, let me just say one other thing, if I may, that the costof liquor, based on this amendment, will increase in the Com-monwealth, because if you are ending the Johnstown tax and ifyou are expecting the LCB stores to produce X amount of in-come, and there are less stores and the only way--

POINT OF ORDER

Senator PILEGGI. Mr. President, point of order.Senator DINNIMAN. What are you afraid of, Senator

Pileggi? What are you afraid of, the truth?The PRESIDENT. The gentleman will suspend.The gentleman will state his point of order.Senator PILEGGI. Mr. President, I really do enjoy listening

to my friend, the Senator from Chester County, and his com-ments are certainly appropriate on final passage, certainly appro-priate under Petitions and Remonstrances, but, and I have givena lot of leeway, there is absolutely nothing in this amendmentthat deals with the Johnstown flood tax, that is in the base bill.That is a simple fact. When we want to debate the final passageof the bill, that is certainly within the scope of the bill. And if wewant to have that debate tonight as if it is final passage, I do notthink that is appropriate under our rules. As I said, I very muchenjoy listening to my friend, but our rules say that we shouldconfine debate to the matter in front of us. That is my point oforder.

Senator DINNIMAN. Mr. President, before accepting that,may I ask the Senator if he would stand for interrogation on aquestion related to the amendment?

Senator PILEGGI. Mr. President, absolutely.The PRESIDENT. The gentleman indicates that he will. Sena-

tor Dinniman, you may state your inquiry.Senator DINNIMAN. Mr. President, is there anything in this

amendment that impacts the ability of the Liquor Control Boardto produce the needed income within the Commonwealth?

Senator PILEGGI. Mr. President, there is one point, I think,that might be in this amendment. There are multiple points in thebase bill, but one new item in the amendment I believe would bethe power that this amendment gives to the Liquor Control Boardto enter into a lease of the wholesale distribution system for aperiod not to exceed 10 years, and specifically says if such alease would increase annual profits to the Commonwealth. It isour belief that this amendment, together with the underlying bill,


but primarily the underlying bill, will produce a greater financialbenefit to the Commonwealth than the existing system.

Senator DINNIMAN. Mr. President, I thank my friend fromDelaware County for explaining that. And my point is that ifthere are provisions in the bill--

The PRESIDENT. I am sorry, Senator, has your inquiry fin-ished?

Senator DINNIMAN. Mr. President, yes.The PRESIDENT. Very well, you may speak on the amend-

ment.Senator DINNIMAN. Mr. President, I appreciate that answer,

and my point simply being is that if there is something in theamendment that is related to providing the adequate fundingfrom the LCB to the State, that I feel free to speak to it. But Ihave made my point, so there is really no need to speak further.

Let me simply close with two comments and a summary. Oneis that all of this is going to result in an awful lot of people in allof our districts who lose jobs. We might not care when we votein favor of this, but the Democratic Caucus does care deeplyabout the employees of this Commonwealth. Second, let me saythat as I stand here, I look at a stained-glass window, in fact,almost right over my friend, the Majority Leader's fine head, andit says "Temperance." That is a beautiful lady and a beautifulstained-glass window there. Now, we are not in our Caucus call-ing for temperance, of course no one is calling for temperance.That era has ended. But temperance does not necessarily meanjust the ending of no drinking. Temperance, if you look at theword, means we have to be temperate in our behavior as it af-fects drinking.

What I am trying to say with that fine lady and that stainedglass looking down upon all of us is this: when you combineliquor, beer, and alcohol at the local gas station conveniencestore, you are not being temperate. When you force people to gofrom Wawa to Wawa or Sheetz to Sheetz to figure out which onesells the bourbon and which one sells the vodka, it is not eitherconsumer-oriented or really temperate in terms of what our con-sumers expect.

Finally, it is a legitimate question to at least ask, what hap-pened to the $1 billion? And the answer is the $1 billion is now,in this amendment and ultimately this bill, down to around $15million. This is why we, in the Democratic Caucus, have seriousquestions. I thank my buddy, Senator Pileggi, for his patiencewith me. I deeply appreciate it and I have deep respect for him.But I just cannot be comfortable with the amendment as it iswritten.

Thank you, Mr. President.The PRESIDENT. The Chair recognizes the gentlewoman

from Philadelphia, Senator Kitchen.Senator KITCHEN. Mr. President, what a legacy we leave

behind for our piece of history in the history books, making itconvenient for people to buy a bottle of wine or spirits. Whatabout the people's lives who this shakes upside down? Whatabout their jobs? And what about the increased availability ofalcohol, especially around colleges? I think that for people, forus to call this modernization, that is not true because we have notconsidered all the social ills. This is another attack on peopletaking away good jobs eventually, whether it is a year or two,jobs will be lost. For us to put alcohol--when we do not want todo job training, when we have cut almost every social line in the

budget and then we say that we are modernizing alcohol becausesome people want to have the convenience of getting a bottle ofwine or spirits anytime they want to. Or is it about the peoplewho own big business getting richer? That is all that seems tohappen up here now. What about the little guy? What about thepeople that this is going to affect because they will not be able tocome up with the dollars? I am not going to say anything morebecause for how long we have been discussing it, people's mindshave been made up. But please do not say that this is moderniz-ing our way of buying spirits and alcohol; this is a purely politi-cal move at a political time.

The PRESIDENT. The Chair recognizes the gentlewomanfrom Philadelphia, Senator Tartaglione.

Senator TARTAGLIONE. Mr. President, under this amend-ment, Pennsylvania alcohol sales will increase dramatically.Responsible decisionmaking and steady, substantial revenueswill be replaced by convenience and capitalism. Gas stations willbe allowed to sell wine and beer; grocery stores will be allowedto sell wine, beer, and one spirit; convenience stores will be al-lowed to sell wine, beer, and one spirit; the corner bodegas,which there are an awful lot in my district, will be allowed to sellwine and three six-packs; while restaurants will be now be ableto sell unlimited wine and up to three six-packs. They will bepitted against grocery and convenience stores for licenses. In theend, restaurants will be unable to compete.

More distributors will be able to sell liquor in each county,which will eventually force all Pennsylvania State Stores out ofbusiness. The closure of these stores will lay off more than 5,000hardworking individuals, who protect and make sure that under-age children do not get their hands on liquor, and up to 10,000beer distributor employees. The costs will be $64 million in un-employment compensation over 4 years, and $14 million in lay-off payouts. Beer distributors will become the only sellers ofliquor, but they will be unable to compete with big box stores inthe sale of beer. To survive, these distributors will need to in-crease the merchandise to include beer, wine, and liquor, or theywill have to sell their stores to big box chains.

Whether the current system is dismantled now or in 2 years,altogether or gradually, the State will lose revenue, and the costto disband the current system to maintain a new system will bean enormous cost and burden to the State. While the LCB is pro-jected to transfer $700 million to the General Fund this year, thisamendment will reduce tax revenues and increase costs to theState. The money the LCB is required to transfer to the GeneralFund under this amendment will not be there to transfer. TheLCB will be required to transfer $313 million each year, butthese revenues will not be available. In order to gain sufficientrevenues for these transfers, alcohol prices will need to be raised.Other losses will be: $100 million transferred profits to the Gen-eral Fund, $23 million to the Pennsylvania State Police Bureauof Liquor Control Enforcement, $2 million for support for theDepartment of Health's drug and alcohol programs, $1 millionfor grants to local governments and universities to support under-age drinking prevention programs, $4.5 million to local alcoholenforcement, $10 million subsidy for the LCB licensing andpermitting program, and $20 million for liquor tax and sales taxlosses.

We cannot afford to close our State Stores and family busi-nesses. We cannot afford to leave thousands of State employees


jobless. We cannot afford to endanger the lives, the safety, and the well-being of our children, friends, and family. Pennsylvaniasimply cannot afford liquor privatization, not now, not ever.


Allegheny, Senator Costa.Senator COSTA. Mr. President, I rise this early morning to

ask my colleagues not only on this side of the aisle, but compelmy colleagues on the other side of the aisle to join us in defeat-ing the amendment offered by my friend and colleague, the Ma-jority Leader. Mr. President, we believe that this is an ill-advisedamendment to a system that has worked very well for this Com-monwealth. The gentleman, when he spoke initially when offer-ing the amendment, talked about convenience. And while we allrecognize that is something that would possibly be appropriatein this Commonwealth, this, Mr. President, is not the path. Thisis not the way in which we should be providing convenience toour Commonwealth residents. Mr. President, we know that thisamendment provides for nearly 14,000 outlets or venues wherePennsylvania residents will be able to purchase wine and spirits.

We talked about the convenience stores, the Wawas and theSheetzes, as we call them. I am troubled to think that so many ofour residents, particularly our young residents who are out on aFriday or Saturday evening, would be able to stop at a localSheetz and be able to purchase an additional six-pack or maybea bottle of wine or two. That is a concern, Mr. President. I thinkat the end of the day, as we heard during this conversation aboutwine and spirits privatization, we heard clearly from our lawenforcement officials who talked about the concern and the harmthat would be caused to our Pennsylvania residents. Make nomistake about it, I think all of the organizations who have advo-cated against the passage of this amendment, or amendments likethis, have clearly stated the case that this is going to be harmful.This amendment will be harmful to the residents of this Com-monwealth. It may provide convenience, but, again, as I statedearlier, it is not the appropriate type of convenience that weshould be providing. That conversation, quite frankly, should nottake place at 12:40 in the morning, or whatever time it might beon the Chamber clock. Mr. President, it is something that needsto be done in the color of light, something that needs to be ad-dressed as we go forward in finding an appropriate balance. Thisis not a balanced approach to providing convenience and alcoholto our consumers in this Commonwealth.

There is conversation about a study, and at the end of the day,the study will look at the wholesale operations. Mr. President,there is nothing in this amendment that I can see that talks abouthow we can describe a baseline of revenue to determine whetheror not profit has been achieved to the degree that we would thenbegin to close down wholesale operations or make leases alongthose lines. Those are the types of things that we miss when wetry to pass very significant legislation in the middle of the night.

As Senator Kitchen talked about, there are social ills thatwould come from this amendment directly related to this in-creased consumption of alcohol, which as I stated earlier, ulti-mately leads to more problems in our communities and neighbor-hoods, and on our roads in this Commonwealth. Just a few shortweeks ago, we passed out of the Senate significant and compre-hensive legislation relating to our roads and bridges. We did thatfor one significant reason, and that was safety on our roadways.For the good that we did with respect to trying to fix our road-

ways and bridges, we are taking that away this evening by pro-viding and putting into the hands of so many people who aregoing to be consumers, who are going to be accessing alcohol inplaces and areas where today they do not have the ability to doso. We think that is a mistake and that is something that needs tobe changed as we go forward.

Mr. President, at the end of the day, this amendment will re-sult in job losses in this Commonwealth. Clearly, there is a con-cern about what takes place on the wholesale side, but as thelanguage is crafted over the course of time, if we expand thenumber of private outlets, it will ultimately result in the loss ofWine & Spirits shops in this Commonwealth, where we haveindividuals who do an outstanding job. Our State Store employ-ees are well-recognized and well-regarded in the work that theydo and the manner in which they conduct the business of thisCommonwealth, protecting the residents of this Commonwealthby making certain that wine and spirits are not in the hands ofpeople who should not have them and recognizing that theyknow their job is on the line if they do not do it accordingly. Weshould be proud of the work that these men and women havedone for this Commonwealth. Tonight we should not be heredismissing them, knowing that over a course of time they aregoing to lose those jobs. As Senator Kitchen said, we are notgoing to look out for them and we need to make certain that weprovide a way to be able to do that. It is difficult to understand orcomprehend why we want to go down this path when we dosome of the things that we referenced, like having 14,000 placeswhere people are going to have access to wine and spirits. Tre-mendous increase in access points. It is nothing but a mixture ofa harmful, harmful situation that we should not be supportinghere today. I impress upon my colleagues, please stand up andsay no to this outrageous expansion of those venue places whereone can purchase alcohol. Stand up and do not be afraid to sayno. On this side of the aisle we are going to say no. We hope thatsome of you can join us along that path.


Philadelphia, Senator Hughes.Senator HUGHES. Mr. President, so here we have it. All you

have to do is just take a photograph, take a look at some of ourcommunities across the State, some of our more distressed com-munities. Some of our communities that will soon and very soon,if this measure becomes law, these neighborhoods will have anover-proliferation of booze and alcohol, wine and spirits, every-thing that these communities do not need to move themselvesforward, will be present in those neighborhoods. These commu-nities who are struggling just to survive, and many of them be-cause of lack of investment, particularly from this Common-wealth, are not surviving, will now be overrun with more placesthat you can buy spirits, buy booze, buy wine, and buy beer.More places in these communities than what they need. No onein any one of these neighborhoods is asking for these beveragesto be sold in increased numbers at increased locations. Every oneof these distressed communities is asking for fewer places wheretheir constituents can purchase alcohol. All we do in this legisla-tion is go against the will and the need of those folks, createmore places.

I remember hearing at the testimony in the committee hearingwhere the State F.O.P. sat down and said, you know, we cannothandle this. This is going to create more problems, more crime


that we will have to address, and we are not prepared for this.The State Police Association said what we know is this, that ifmore places open up, we are not staffed appropriately to handlethis and more criminal behavior will come as a result of moreplaces where more booze can be sold. That is what happens ifthis amendment becomes the law of the Commonwealth of Penn-sylvania.

There will be an over-proliferation. Distressed communitieswill be overrun with the amount of alcohol that they will be sell-ing in those neighborhoods. No new people will be employed; infact, fewer people will be employed. The chips and the pretzelswill be removed off the shelves of these locations and booze andalcohol and beer and wine, gin, vodka, Remy, and everythingelse that you can name will be right on full display in the mostdistressed communities in this Commonwealth. Is this what wecall economic development for these communities? Since thereis no other plan for economic development in these communitiesby this administration, is this what we call economic develop-ment? Is this what we call investment in our neighborhoods? Isthis what we call how we can breathe life into our communities?We are breathing death into these neighborhoods, Mr. President,by the over-proliferation of booze. This is the wrong direction bythis wrong administration and it is the wrong amendment and itis the wrong vote at this time. If we say we care about these peo-ple, if we say we care about these distressed communities, we arenot in the business of investing in them in this fashion by puttingmore booze in these neighborhoods.

As was previously stated, all we are going to do is tear down5,000, 10,000, 15,000, jobs of folks who are already working andthose folks will be lost. Those folks will be gone. There will beno new job creation. All there is going to be in every distressedcommunity in this Commonwealth, and every distressed schooldistrict in this Commonwealth, and every distressed city in thisCommonwealth, here is what you get the chance to see, booze onsale in your neighborhood and in your community. No new in-vestment, but more booze. That is what you need. That is whatis going to breathe life into your neighborhoods. That is what isgoing to turn everything around. I guess the idea, Mr. President,is to inebriate everybody so that they cannot see the fact that thefolks in charge are walking away from these communities. Makethem drunk, put them in a stupor. Do not let them see the realityof what is happening with this legislation.

Mr. President, wrong direction, wrong way, wrong policy. Afallacy that this thing will make our economy grow. The currentsystem works, it works very well. It adds new dollars to theState's economy, it grows annually every year. You can get moredifferent varieties of beverages in the current system than any-place in the country. You can do that here in Pennsylvania. Thisgoes in the opposite direction. Mr. President, wrong bill, wrongidea, wrong direction, and inconsistent with everything that itwas supposed to be about. Mr. President, I guess that these com-munities, when these people whom we say we care about, I guessthey are not meant to be full participants in this Commonwealth.I guess all they are meant to be are vehicles for someone else tomake a profit off of the hardship that they will deal with shouldthis bill become the law of the Commonwealth of Pennsylvania.


Delaware, Senator Pileggi.

Senator PILEGGI. Mr. President, I will be brief. I appreciatedthe comments of my friends on the other side of the aisle. Just forthose folks who might be watching this and might have beenwondering what the debate was about, we in the Senate are talk-ing about my amendment, which is a 16-page amendment, of-fered to House Bill No. 790, which is a 251-page bill. This bill,as amended, will be referred to the Committee on Appropria-tions, where there will be a fiscal note and another vote on thebill to move the bill from that committee. It will then come backto the floor of this Senate, where there will be another vote be-fore final passage here in the Senate. At each of those two stops,the Committee on Appropriations and on final passage, there willbe an opportunity under Senate Rules to offer additional amend-ments. The debate, as I pointed out twice, was really about finalpassage and the underlying bill much more so than the points onthe 16-page amendment to this 251-page bill. But we will havean opportunity, and I will reserve my comments on the conceptsrepresented in the bill until the time of final passage of the bill.I ask for an affirmative vote on the amendment.

Thank you, Mr. President.


The yeas and nays were required by Senator PILEGGI andwere as follows, viz:

YEA-27

Alloway Erickson Pileggi VogelArgall Folmer Rafferty VulakovichBaker Gordner Robbins WardBrowne Greenleaf Scarnati WaughBrubaker Hutchinson Smucker WhiteCorman McIlhinney Tomlinson YawEichelberger Mensch Vance

NAY-23

Blake Ferlo Schwank WashingtonBoscola Fontana Smith WileyBrewster Hughes Solobay WilliamsCosta Kasunic Stack WozniakDinniman Kitchen Tartaglione YudichakFarnese Leach Teplitz

A majority of the Senators having voted "aye," the questionwas determined in the affirmative.

And the question recurring,Will the Senate agree to the bill on third consideration, as

amended?

FERLO AMENDMENT A2685 OFFERED

Senator FERLO offered the following amendment No.A2685:

Amend Bill, page 1, lines 1 through 28; page 2, lines 1 through 60,by striking out all of said lines on said pages and inserting:Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as reen-acted and amended, "An act relating to alcoholic liquors, alcohol andmalt and brewed beverages; amending, revising, consolidating andchanging the laws relating thereto; regulating and restricting the manu-facture, purchase, sale, possession, consumption, importation, transpor-tation, furnishing, holding in bond, holding in storage, traffic in and use


of alcoholic liquors, alcohol and malt and brewed beverages and thepersons engaged or employed therein; defining the powers and dutiesof the Pennsylvania Liquor Control Board; providing for the establish-ment and operation of State liquor stores, for the payment of certainlicense fees to the respective municipalities and townships, for theabatement of certain nuisances and, in certain cases, for search andseizure without warrant; prescribing penalties and forfeitures; providingfor local option, and repealing existing laws," further providing fordefinitions, for general powers of board, for specific subjects on whichboard may adopt regulations, for board to establish State Liquor Stores,for selection of personnel, for when sales may be made at PennsylvaniaLiquor Stores, for sales by Pennsylvania Liquor Stores, for authority toissue liquor licenses to hotels, restaurants and clubs, for sale of malt orbrewed beverages by liquor licensees, for malt and brewed beveragesmanufacturers', distributors' and importing distributors' licenses, forshipment of wine and for unlawful acts relative to liquor, malt andbrewed beverages and licensees.

Amend Bill, page 191, lines 7 through 30; pages 192 through 250,lines 1 through 30; page 251, lines 1 through 20, by striking out all ofsaid lines on said pages and inserting:

Section 1. The definitions of "distributor" and "importing distribu-tor" in section 102 of the act of April 12, 1951 (P.L.90, No.21), knownas the Liquor Code, reenacted and amended June 29, 1987 (P.L.32,No.14) and amended May 31, 1996 (P.L.312, No.49), are amended andthe section is amended by adding definitions to read:

Section 102. Definitions.--The following words or phrases, unlessthe context clearly indicates otherwise, shall have the meanings as-cribed to them in this section:

* * *"Big-box retail store" shall mean a place which sells a wide variety

of merchandise, including automotive supplies, housewares, electronics,home furnishings, apparel, health and beauty supplies and perishableand nonperishable food items, in bulk and/or individual quantities, andwhich has an area under one roof of one hundred thousand square feetor more.

* * *"Convenience store" shall mean a place which primarily sells food

prepared for consumption on and off the premises, and nonfood items,and may sell liquid fuels for use in motor vehicles, having an area underone roof of more than one thousand square feet but less than ten thou-sand square feet.

* * *"Distributor" shall mean any person licensed by the board to en-

gage in the purchase only from Pennsylvania manufacturers and fromimporting distributors and the resale of malt or brewed beverages, ex-cept to importing distributors and distributors, in the original sealedcontainers as prepared for the market by the manufacturer at the placeof manufacture, but not for consumption on the premises where sold,and in quantities of not less than a case or original containers containingone hundred twenty-eight ounces or more which may be sold sepa-rately, except as otherwise provided for herein.

* * *"Grocery store" shall mean a reputable place operated by a person

of good repute, which primarily sells food, supplies for the table andfood products for human consumption off the premises and which hasan area under one roof of ten thousand square feet or more.

* * *"Importing distributor" shall mean any person licensed by the board

to engage in the purchase from manufacturers and other persons locatedoutside this Commonwealth and from persons licensed as manufacturersof malt or brewed beverages and importing distributors under this act,and the resale of malt or brewed beverages in the original sealed con-tainers as prepared for the market by the manufacturer at the place ofmanufacture, but not for consumption on the premises where sold, andin quantities of not less than a case or original containers containing onehundred twenty-eight ounces or more which may be sold separately,except as otherwise provided for herein.

* * *"Pharmacy" shall mean any place having an area under one roof of

at least eight thousand square feet or more that is properly issued apermit or license by the State Board of Pharmacy where drugs, devicesand diagnostic agents for human or animal consumption are stored,dispensed or compounded.

Section 1.1. Section 207(a), (b), (f) and (h) of the act, amended

November 30, 2004 (P.L.1727, No.221) and December 8, 2004(P.L.1810, No.239), are amended and the section is amended by addingsubsections to read:

Section 207. General Powers of Board.--Under this act, the boardshall have the power and its duty shall be:

(a) To buy, import or have in its possession for sale and sell liquor,alcohol, corkscrews, wine and liquor accessories, trade publications, giftcards, gift certificates, wine- or liquor-scented candles and wine glassesin the manner set forth in this act: Provided, however, That all pur-chases shall be made subject to the approval of the State Treasurer, orhis designated deputy. The board shall buy liquor and alcohol at thelowest price and in the greatest variety reasonably obtainable. The salesmay be to a person or entity that is located either inside or outside thisCommonwealth.

(b) To control the manufacture, possession, sale, consumption,importation, use, storage, transportation and delivery of liquor, alcoholand malt or brewed beverages in accordance with the provisions of thisact, and to fix the wholesale and retail prices at which liquors and alco-hol shall be sold at Pennsylvania Liquor Stores. Prices shall be [propor-tional with prices paid by the board to its suppliers and shall reflect anyadvantage obtained through volume purchases by the board.] as setforth by the board so long as the price of a particular item is uniformthroughout this Commonwealth and that the markup may not be lessthan twenty-five percent (25%) or more than thirty-five percent (35%).The board may impose logistical fees and round up to the nearest nine-hundredth of a dollar after applying the other taxes and fees. Prices maynot be changed on any wine or spirit product more than once in any six-month period. The board may establish a preferential price structure forwines produced within this Commonwealth for the promotion of suchwines, as long as the price structure is uniform within each class of winepurchased by the board. The board shall require each Pennsylvaniamanufacturer and each nonresident manufacturer of liquors, other thanwine, selling such liquors to the board, which are not manufactured inthis Commonwealth, to make application for and be granted a permit bythe board before such liquors not manufactured in this Commonwealthshall be purchased from such manufacturer. Each such manufacturershall pay for such permit a fee which, in the case of a manufacturer ofthis Commonwealth, shall be equal to that required to be paid, if any,by a manufacturer or wholesaler of the state, territory or country oforigin of the liquors, for selling liquors manufactured in Pennsylvania,and in the case of a nonresident manufacturer, shall be equal to thatrequired to be paid, if any, in such state, territory or country by Pennsyl-vania manufacturers doing business in such state, territory or country.In the event that any such manufacturer shall, in the opinion of theboard, sell or attempt to sell liquors to the board through another personfor the purpose of evading this provision relating to permits, the boardshall require such person, before purchasing liquors from him or it, totake out a permit and pay the same fee as hereinbefore required to bepaid by such manufacturer. All permit fees so collected shall be paidinto the State Stores Fund. The board shall not purchase any alcohol orliquor fermented, distilled, rectified, compounded or bottled in anystate, territory or country, the laws of which result in prohibiting theimportation therein of alcohol or liquor, fermented, distilled, rectified,compounded or bottled in Pennsylvania.

* * *(f) To appoint, fix the compensation and define the powers and

duties of such managers, officers, inspectors, examiners, clerks andother employes as shall be required for the operation of this act, subjectto the provisions of The Administrative Code of 1929 and the CivilService Act. However, the board may hire a limited number of retailwine specialists on an at-will basis to be employed at up to twenty-fivepercent (25%) of the total number of Pennsylvania Liquor Stores. Not-withstanding any other provision of law to the contrary, a retail winespecialist shall not be considered a member of the classified service, asthat term is defined in the act of August 5, 1941 (P.L.752, No.286),known as the "Civil Service Act," except as set forth in this act. A retailwine specialist shall be considered a State employe for purposes of 71Pa.C.S. Pt. XXV (relating to retirement for State employees and offi-cers). The board shall establish a system of classification and compen-sation of its retail wine specialists and they shall not be subject to theprovisions of the act of April 9, 1929 (P.L.177, No.175), known as "TheAdministrative Code of 1929," as to classification and compensation forits employes, and shall conduct its activities consistent with the prac-tices and procedures of Commonwealth agencies. The board shall ad-


here to the provisions of 51 Pa.C.S. Ch. 71 (relating to veterans' prefer-ence), as they relate to noncivil service positions. This subsection maynot be construed to alter, remove or bar current or new employees froma collective bargaining agreement. Individuals employed prior to theeffective date of subsection (n) shall retain their civil service status.

* * *(h) Without in any way limiting or being limited by the foregoing,

to do all such things and perform all such acts as are deemed necessaryor advisable for the purpose of carrying into effect the provisions of thisact and the regulations made thereunder. Notwithstanding any otherprovision of law to the contrary, the board is authorized to purchase allgoods and services in its sole discretion which are deemed necessary toperform all such acts. The board is authorized to set policy and promul-gate regulations providing for the procurement of such goods and ser-vices.

* * *(l) To establish and implement a customer relations marketing

program for the purpose of offering incentives, such as coupons ordiscounts on certain products, to customers of the board.

(m) Notwithstanding any other provision of law, to enter intoagreements with governmental units of this Commonwealth and otherstates for the purchase or sale of goods or services with, from or to thegovernmental units.

(n) To operate Pennsylvania Liquor Stores by itself or in partner-ship with grocery stores and other private entities that are licensed bythe board. The board may not make a contract or partner with a conve-nience store, pharmacy or big-box retail store.

Section 2. Sections 208(c), 301 and 302 of the act are amended toread:

Section 208. Specific Subjects on Which Board May AdoptRegulations.--Subject to the provisions of this act and without limitingthe general power conferred by the preceding section, the board maymake regulations regarding:

* * *(c) The purchase, as provided in this act, of liquor and alcohol, and

its supply to Pennsylvania Liquor Stores and the procurement of allother goods and services which are deemed necessary by the board, inits sole discretion, to perform all such acts.

* * *Section 301. Board to Establish State Liquor Stores.--(a) The

board shall, either by itself or in partnership with one or more privateentities, establish, operate and maintain at such places throughout theCommonwealth as it shall deem essential and advisable, stores to beknown as "Pennsylvania Liquor Stores," for the sale of liquor and alco-hol in accordance with the provisions of and the regulations made underthis act; except that no store not so already located shall be locatedwithin three hundred feet of any elementary or secondary school, norwithin a dry municipality without there first having been a referendumapproving such location. When the board shall have determined uponthe location of a liquor store in any municipality, it shall give notice ofsuch location by public advertisement in two newspapers of generalcirculation. In cities of the first class, the location shall also be postedfor a period of at least fifteen days following its determination by theboard as required in section 403(g) of this act. The notice shall beposted in a conspicuous place on the outside of the premises in whichthe proposed store is to operate or, in the event that a new structure isto be built in a similarly visible location. If, within five days after theappearance of such advertisement, or of the last day upon which thenotice was posted, fifteen or more taxpayers residing within a quarterof a mile of such location, or the City Solicitor of the city of the firstclass, shall file a protest with the court of common pleas of the countyaverring that the location is objectionable because of its proximity to achurch, a school, or to private residences, the court shall forthwith holda hearing affording an opportunity to the protestants and to the board topresent evidence. The court shall render its decision immediately uponthe conclusion of the testimony and from the decision there shall be noappeal. If the court shall determine that the proposed location is unde-sirable for the reasons set forth in the protest, the board shall abandonit and find another location. The board may establish, operate and main-tain such establishments for storing and testing liquors as it shall deemexpedient to carry out its powers and duties under this act.

(b) The board may lease the necessary premises for such stores orestablishments, but all such leases shall be made through the Depart-ment of General Services as agent of the board. The board, through the

Department of General Services, shall have authority to purchase suchequipment and appointments as may be required in the operation ofsuch stores or establishments.

(c) If the board chooses to establish a Pennsylvania Liquor Storein partnership with one or more private entities, it shall be subject to thefollowing:

(1) if the liquor store is located within another business, the alco-hol purchased at the liquor store must be paid for at the PennsylvaniaLiquor Store;

(2) the board and its partner or partners may coordinate advertisingand promotions;

(3) the board and its partner or partners may discount the price ofan item, including alcohol, and may condition the discount on the pur-chase of another item from the board or its partner or partners; and

(4) the board may base its lease payments in whole or in part onthe amount of alcohol sold at the location.

Section 302. Selection of Personnel.--Officers and employes of theboard, except for retail wine specialists and as herein otherwise pro-vided, shall be appointed and employed subject to the provisions of theCivil Service Act.

Section 3. Section 304(b) of the act, amended December 8, 2004(P.L.1810, No.239), is amended to read:

Section 304. When Sales May Be Made at Pennsylvania LiquorStores.--* * *

(b) [Certain] Pennsylvania Liquor Stores operated by the board[shall] may be open for Sunday retail sales [between the hours of noonand five o'clock postmeridian], except that no Sunday sales shall occuron Easter Sunday or Christmas day. [The board shall open up to twenty-five per centum of the total number of Pennsylvania Liquor Stores at itsdiscretion for Sunday sales as provided for in this subsection. The boardshall submit yearly reports to the Appropriations and the Law and Jus-tice Committees of the Senate and the Appropriations and the LiquorControl Committees of the House of Representatives summarizing thetotal dollar value of sales under this section.]

Section 4. Section 305(a) and (b) of the act, amended May 8, 2003(P.L.1, No.1) and July 6, 2005 (P.L.135, No.39), are amended to read:

Section 305. Sales by Pennsylvania Liquor Stores.--(a) The boardshall in its discretion determine where and what classes, varieties andbrands of liquor and alcohol it shall make available to the public andwhere such liquor and alcohol will be sold. Every Pennsylvania LiquorStore shall be authorized to sell combination packages. If a person de-sires to purchase a class, variety or brand of liquor or alcohol not cur-rently available from the board, he or she may place a special order forsuch item so long as the order is for two or more bottles. The board mayrequire a reasonable deposit from the purchaser as a condition for ac-cepting the order. The customer shall be notified immediately upon thearrival of the goods.

In computing the retail price of such special orders for liquor oralcohol, the board shall not include the cost of freight or shipping beforeapplying [the] a mark-up calculated at fifty per centum of the markupunder section 207(b) and taxes but shall add the freight or shippingcharges to the price after the mark-up and taxes have been applied.

Unless the customer pays for and accepts delivery of any suchspecial order within ten days after notice of arrival, the store may placeit in stock for general sale and the customer's deposit shall be forfeited.

(b) Every Pennsylvania Liquor Store shall sell liquors at wholesaleto hotels, restaurants, clubs, and railroad, pullman and steamship com-panies licensed under this act; and, under the regulations of the board,to pharmacists duly licensed and registered under the laws of the Com-monwealth, and to manufacturing pharmacists, and to reputable hospi-tals approved by the board, or chemists. Sales to licensees shall be madeat a price that includes a discount of [ten] sixteen per centum from theretail price. The board may sell to registered pharmacists only suchliquors as conform to the Pharmacopoeia of the United States, the Na-tional Formulary, or the American Homeopathic Pharmacopoeia. Theboard may sell at special prices under the regulations of the board, toUnited States Armed Forces facilities which are located on UnitedStates Armed Forces installations and are conducted pursuant to theauthority and regulations of the United States Armed Forces. All othersales by such stores shall be at retail. A person entitled to purchaseliquor at wholesale prices may purchase the liquor at any PennsylvaniaLiquor Store upon tendering cash, check or credit card for the fullamount of the purchase. For this purpose, the board shall issue a dis-count card to each licensee identifying such licensee as a person autho-


rized to purchase liquor at wholesale prices. Such discount card shall beretained by the licensee. The board may contract through the Common-wealth bidding process for delivery to wholesale licensees at the ex-pense of the licensee receiving the delivery.

* * *Section 5. Section 401(a) of the act, amended December 22, 2011

(P.L.530, No.113), is amended to read:Section 401. Authority to Issue Liquor Licenses to Hotels, Restau-

rants and Clubs.--(a) Subject to the provisions of this act and regula-tions promulgated under this act, the board shall have authority to issuea retail liquor license for any premises kept or operated by a hotel, res-taurant or club and specified in the license entitling the hotel, restaurantor club to purchase liquor from a Pennsylvania Liquor Store and to keepon the premises such liquor and, subject to the provisions of this act andthe regulations made thereunder, to sell the same and also malt orbrewed beverages to guests, patrons or members for consumption on thehotel, restaurant or club premises. Such licensees with an interior con-nection to a grocery store, convenience store or big-box retail store,other than clubs, shall be permitted to sell malt or brewed beverages forconsumption off the premises where sold in quantities of not more thanone hundred ninety-two fluid ounces in a single sale to one person asprovided for in section 407. A licensee without an interior connectionto a grocery store, convenience store or big-box retail store, other thanclubs, selling malt or brewed beverages for consumption off premisesmay not sell more than three hundred eighty-four ounces in not morethan twenty-four original bottles or cans in a single sale to one personas provided for in section 407, Provided, That the licensee may not sella package as prepared for sale or distribution by the manufacturer con-taining more than twelve bottles or cans. Such licenses shall be knownas hotel liquor licenses, restaurant liquor licenses and club liquor li-censes, respectively. No person who holds any public office that in-volves the duty to enforce any of the penal laws of the United States,this Commonwealth or of any political subdivision of this Common-wealth may have any interest in a hotel or restaurant liquor license. Thisprohibition applies to anyone with arrest authority, including, but notlimited to, United States attorneys, State attorneys general, district attor-neys, sheriffs and police officers. This prohibition shall also apply tomagisterial district judges, judges or any other individuals who canimpose a criminal sentence. This prohibition does not apply to membersof the General Assembly, township supervisors, city councilpersons,mayors without arrest authority and any other public official who doesnot have the ability to arrest or the ability to impose a criminal sentence.This section does not apply if the proposed premises are located outsidethe jurisdiction of the individual in question.

* * *Section 6. Section 407(a) of the act, amended June 28, 2011

(P.L.55, No.11), is amended to read:Section 407. Sale of Malt or Brewed Beverages by Liquor

Licensees.--(a) Every liquor license issued to a hotel, restaurant, club,or a railroad, pullman or steamship company under this subdivision (A)for the sale of liquor shall authorize the licensee to sell malt or brewedbeverages at the same places but subject to the same restrictions andpenalties as apply to sales of liquor, except that licensees with an inte-rior connection to a grocery store, convenience store or big-box retailstore, other than clubs, may sell malt or brewed beverages for consump-tion off the premises where sold in quantities of not more than onehundred ninety-two fluid ounces in a single sale to one person. A li-censee without an interior connection to a grocery store, conveniencestore or big-box retail store, other than clubs, selling malt or brewedbeverages for consumption off premises may not sell more than threehundred eighty-four ounces in not more than twenty-four original bot-tles or cans in a single sale to one person, Provided, That the licenseemay not sell a package as prepared for sale or distribution by the manu-facturer containing more than twelve bottles or cans. The sales may bemade in either open or closed containers, Provided, however, That amunicipality may adopt an ordinance restricting open containers inpublic places. No licensee under this subdivision (A) shall at the sametime be the holder of any other class of license, except a retail dis-penser's license authorizing the sale of malt or brewed beverages only.

* * * Section 7. Section 431(b) of the act, amended December 8, 2004

(P.L.1810, No.239), is amended and the section is amended by addinga subsection to read:

Section 431. Malt and Brewed Beverages Manufacturers', Distribu-

tors' and Importing Distributors' Licenses.--* * *(b) The board shall issue to any reputable person who applies

therefor, and pays the license fee hereinafter prescribed, a distributor'sor importing distributor's license for the place which such person desiresto maintain for the sale of malt or brewed beverages, not for consump-tion on the premises where sold, and except as provided for under sub-section (g), in quantities of not less than a case or original containerscontaining one hundred twenty-eight ounces or more which may be soldseparately as prepared for the market by the manufacturer at the placeof manufacture. The board shall have the discretion to refuse a licenseto any person or to any corporation, partnership or association if suchperson, or any officer or director of such corporation, or any member orpartner of such partnership or association shall have been convicted orfound guilty of a felony within a period of five years immediately pre-ceding the date of application for the said license: And provided further,That, in the case of any new license or the transfer of any license to anew location, the board may, in its discretion, grant or refuse such newlicense or transfer if such place proposed to be licensed is within threehundred feet of any church, hospital, charitable institution, school orpublic playground, or if such new license or transfer is applied for aplace which is within two hundred feet of any other premises which islicensed by the board: And provided further, That the board shall refuseany application for a new license or the transfer of any license to a newlocation if, in the board's opinion, such new license or transfer would bedetrimental to the welfare, health, peace and morals of the inhabitantsof the neighborhood within a radius of five hundred feet of the placeproposed to be licensed. The board shall refuse any application for anew license or the transfer of any license to a location where the sale ofliquid fuels or oil is conducted. The board may enter into an agreementwith the applicant concerning additional restrictions on the license inquestion. If the board and the applicant enter into such an agreement,such agreement shall be binding on the applicant. Failure by the appli-cant to adhere to the agreement will be sufficient cause to form the basisfor a citation under section 471 and for the nonrenewal of the licenseunder section 470. If the board enters into an agreement with an appli-cant concerning additional restrictions, those restrictions shall be bind-ing on subsequent holders of the license until the license is transferredto a new location or until the board enters into a subsequent agreementremoving those restrictions. If the application in question involves alocation previously licensed by the board, then any restrictions imposedby the board on the previous license at that location shall be binding onthe applicant unless the board enters into a new agreement rescindingthose restrictions. The board shall require notice to be posted on theproperty or premises upon which the licensee or proposed licensee willengage in sales of malt or brewed beverages. This notice shall be simi-lar to the notice required of hotel, restaurant and club liquor licensees.

Except as hereinafter provided, such license shall authorize theholder thereof to sell or deliver malt or brewed beverages in quantitiesabove specified anywhere within the Commonwealth of Pennsylvania,which, in the case of distributors, have been purchased only from per-sons licensed under this act as manufacturers or importing distributors,and in the case of importing distributors, have been purchased frommanufacturers or persons outside this Commonwealth engaged in thelegal sale of malt or brewed beverages or from manufacturers or import-ing distributors licensed under this article. In the case of an importingdistributor, the holder of such a license shall be authorized to store andrepackage malt or brewed beverages owned by a manufacturer at asegregated portion of a warehouse or other storage facility authorizedby section 441(d) and operated by the importing distributor within itsappointed territory and deliver such beverages to another importingdistributor who has been granted distribution rights by the manufactureras provided herein. The importing distributor shall be permitted to re-ceive a fee from the manufacturer for any related storage, repackagingor delivery services. In the case of a bailee for hire hired by a manufac-turer, the holder of such a permit shall be authorized: to receive, storeand repackage malt or brewed beverages produced by that manufac-turer for sale by that manufacturer to importing distributors to whomthat manufacturer has given distribution rights pursuant to this subsec-tion or to purchasers outside this Commonwealth for delivery outsidethis Commonwealth; or to ship to that manufacturer's storage facilitiesoutside this Commonwealth. The bailee for hire shall be permitted toreceive a fee from the manufacturer for any related storage, repackagingor delivery services. The bailee for hire shall, as required in Article Vof this act, keep complete and accurate records of all transactions, in-


ventory, receipts and shipments and make all records and the licensedareas available for inspection by the board and for the PennsylvaniaState Police, Bureau of Liquor Control Enforcement, during normalbusiness hours.

Each out of State manufacturer of malt or brewed beverages whoseproducts are sold and delivered in this Commonwealth shall give dis-tributing rights for such products in designated geographical areas tospecific importing distributors, and such importing distributor shall notsell or deliver malt or brewed beverages manufactured by the out ofState manufacturer to any person issued a license under the provisionsof this act whose licensed premises are not located within the geograph-ical area for which he has been given distributing rights by such manu-facturer. Should a licensee accept the delivery of such malt or brewedbeverages in violation of this section, said licensee shall be subject toa suspension of his license for at least thirty days: Provided, That theimporting distributor holding such distributing rights for such productshall not sell or deliver the same to another importing distributor with-out first having entered into a written agreement with the said secondaryimporting distributor setting forth the terms and conditions under whichsuch products are to be resold within the territory granted to the primaryimporting distributor by the manufacturer.

When a Pennsylvania manufacturer of malt or brewed beverageslicensed under this article names or constitutes a distributor or import-ing distributor as the primary or original supplier of his product, he shallalso designate the specific geographical area for which the said distribu-tor or importing distributor is given distributing rights, and such distrib-utor or importing distributor shall not sell or deliver the products ofsuch manufacturer to any person issued a license under the provisionsof this act whose licensed premises are not located within the geograph-ical area for which distributing rights have been given to the distributorand importing distributor by the said manufacturer: Provided, That theimporting distributor holding such distributing rights for such productshall not sell or deliver the same to another importing distributor with-out first having entered into a written agreement with the said secondaryimporting distributor setting forth the terms and conditions under whichsuch products are to be resold within the territory granted to the primaryimporting distributor by the manufacturer. Nothing herein containedshall be construed to prevent any manufacturer from authorizing theimporting distributor holding the distributing rights for a designatedgeographical area from selling the products of such manufacturer toanother importing distributor also holding distributing rights from thesame manufacturer for another geographical area, providing such au-thority be contained in writing and a copy thereof be given to each ofthe importing distributors so affected.

* * *(g) (1) In addition to being able to sell a case as provided for un-

der subsection (b), a distributor or importing distributor may break thebulk of a case and sell units of the case in quantities not less than forty-two ounces, provided the distributor or importing distributor sells apackage prepared for sale by the manufacturer of no more than twelveunits. A distributor or importing distributor may sell the packages in anyquantity.

(2) Before a distributor or importing distributor breaks the bulk ofa case for the purpose of selling units, the distributor or importing dis-tributor shall inspect the case for damage and appropriate productiondate. When the distributor or importing distributor breaks the bulk of acase for the purpose of selling units of the case, the distributor or im-porting distributor bears the risk of loss and is responsible for the de-struction of any malt and brewed beverages that violate the manufac-turer's specifications relating to sales by a certain date or within a num-ber of days of the production date.

(3) As used in this subsection the term "unit" means an undamagedbottle or can from a case.

Section 8. 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) Theshipment of wine [from out-of-State] to residents of this Common-wealth [is prohibited, except as otherwise provided for in] shall be gov-erned by this section.

(b) Notwithstanding any other provision of this act or law to thecontrary, a person licensed by the board or another state as a producer[,supplier, importer, wholesaler, distributor or retailer] of wine and whoobtains a direct wine shipper license as provided for in this section mayship up to [nine] eighteen liters per month of any wine [not included on

the list provided for in subsection (c) on] upon the Internet, telephoneor mail order of any resident of this Commonwealth who is at leasttwenty-one (21) years of age for such resident's personal use and not forresale.

(c) Each month, the board shall publish on the Internet a list of allclasses, varieties and brands of wine available for sale in the Pennsylva-nia Liquor Stores. [A person holding a direct shipper license may shiponly those classes, varieties and brands of wine not included on the listat the time an Internet order is placed.]

(c.1) Prior to issuing a direct wine shipper license, the board shallrequire the person seeking the license to:

(1) File an application with the board.(2) Pay a one hundred dollar ($100) registration fee.(3) Provide to the board a true copy of its current alcoholic bever-

age license issued by the board or another state, if applicable.(4) Provide the board with any other information the board deems

necessary and appropriate.(5) Provide documentation which evidences that it has obtained a

sales tax license from the Department of Revenue.(d) [An out-of-State] A direct wine shipper shall:(1) Not ship more than [nine] eighteen liters per month [on] upon

the Internet, telephone or mail order of any person in this Common-wealth.

(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 or the Secretary of Revenue, or their desig-nated representatives, to perform an audit of the [out-of-State] directwine shipper's records upon request.

(4) Be deemed to have submitted to the jurisdiction of the board,any other State agency and the courts of this Commonwealth for pur-poses of enforcement of this section and any related laws, rules or regu-lations.

(5) Require proof of age of the recipient in a manner or formatapproved by the board before any wine is shipped to a resident of thisCommonwealth.

(6) Ensure that all boxes or exterior containers of wine shippeddirectly to a resident in this Commonwealth are conspicuously labeledwith the words "CONTAINS ALCOHOL: SIGNATURE OF PERSON21 YEARS OF AGE OR OLDER REQUIRED FOR DELIVERY."

(7) Collect and remit to the Department of Revenue all taxes dueon sales to residents of this Commonwealth. The amount of such taxesshall be calculated as if the sales were in this Commonwealth at thelocations where delivery is made, including the emergency State tax onliquor 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, asherein defined, sold by the Pennsylvania Liquor Control Board; provid-ing for the collection and payment of such tax; and imposing dutiesupon the Department of Revenue and the Pennsylvania Liquor ControlBoard," the sales and use tax imposed under Article II of the act ofMarch 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of1971," the sales and use tax imposed under Article XXXI-B of the actof July 28, 1953 (P.L.723, No.230), known as the "Second ClassCounty Code," the sales and use tax imposed under the act of June 5,1991 (P.L.9, No.6), known as the "Pennsylvania IntergovernmentalCooperation Authority Act for Cities of the First Class," and the salesand use tax imposed under section 1003 of the act of December 18,1984 (P.L.1005, No.205), known as the "Municipal Pension Plan Fund-ing Standard and Recovery Act."

(8) Annually renew its license by paying a renewal fee establishedby the board.

(e) A direct shipper may ship wine [on] upon the Internet, tele-phone or mail order of a resident into this Commonwealth provided thatthe wine [is shipped to a Pennsylvania Liquor Store selected by theresident. The wine will be subject to taxes in the same manner as winesold directly by the board. The wine will not be released by the Statestore until all moneys due, including all taxes and fees, have been paidby the resident.] will be subject to all taxes due on sales to residents ofthis Commonwealth with the amount of such taxes to be calculated asif the sale were in this Commonwealth at the location where delivery ismade.

(f) [A person shall sign an affidavit provided by the PennsylvaniaLiquor Store where the wine was delivered to stating that the wine willonly be used for the person's personal use.] Any person who resellswine obtained under this section commits a misdemeanor of the second


degree.(g) The board may promulgate such rules and regulations as are

necessary to implement and enforce the provisions of this section. [Theboard may charge the resident a fee to cover the cost associated withprocessing the Internet order.]

(h) The board shall submit [monthly] annual reports to the Appro-priations Committee and the Law and Justice Committee of the Senateand to the Appropriations Committee and the Liquor Control Commit-tee of the House of Representatives summarizing the number of directshipper licenses issued by the board[,] and the quantity of wine sold bydirect wine shippers pursuant to this section [and the total dollar valueof sales under this section].

(i) The term "wine" as used in this section shall mean liquor whichis fermented from grapes and other fruits, having alcoholic content oftwenty-four per centum or less. The term "wine" shall not include maltor brewed beverages nor shall wine include any products containingalcohol derived from malt, grain, cereal, molasses or cactus.

(j) The term "direct wine shipper" as used in this section shallmean a wine producer who holds a direct wine shipper license as pro-vided in this section and includes a limited winery.

Section 9. 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 BrewedBeverages and Licensees.--The term "licensee," when used in this sec-tion, shall mean those persons licensed under the provisions of ArticleIV, unless the context clearly indicates otherwise.

It shall be unlawful--* * *(24) (i) Things of Value Offered as Inducement. Except as pro-

vided in subclause (ii), for any licensee under the provisions of thisarticle, or the board or any manufacturer, or any employe or agent of amanufacturer, licensee or of the board, to offer to give anything of valueor to solicit or receive anything of value as a premium for the return ofcaps, stoppers, corks, stamps or labels taken from any bottle, case, bar-rel or package containing liquor or malt or brewed beverage, or to offeror give or solicit or receive anything of value as a premium or presentto induce directly the purchase of liquor or malt or brewed beverage, orfor any licensee, manufacturer or other person to offer or give to tradeor consumer buyers any prize, premium, gift or other inducement topurchase liquor or malt or brewed beverages, except advertising novel-ties of nominal value which the board shall define. This section shallnot prevent any manufacturer or any agent of a manufacturer from of-fering and honoring coupons which offer monetary rebates on purchasesof wines and spirits through State Liquor Stores or purchases of malt orbrewed beverages through distributors and importing distributors inaccordance with conditions or regulations established by the board. Theboard may redeem coupons offered by a manufacturer or an agent of amanufacturer at the time of purchase. Coupons offered by a manufac-turer or an agent of a manufacturer shall not be redeemed without proofof purchase. This section shall not apply to the return of any moniesspecifically deposited for the return of the original container to theowners thereof.

(ii) Notwithstanding subclause (i) or any other provision of law, aholder of a restaurant license that is also approved to hold a slot ma-chine license or a conditional slot machine license under 4 Pa.C.S. PartII (relating to gaming) may give liquor and malt or brewed beveragesfree of charge to any person actively engaged in playing a slot machine.

(iii) Notwithstanding subclause (i) or any other provision of law,the board may establish and implement a customer relations marketingprogram for the purpose of offering incentives, such as coupons ordiscounts on certain products that may be conditioned upon the pur-chase of liquor, to customers of the board.

(iv) Notwithstanding subclause (i) or any other provision of law,nothing may prevent the board, in its discretion and while in partnershipwith one or more private entities as permitted under section 207(n),from offering coupons or discounts that are conditioned on the purchaseof liquor products or other items by customers in order to promote theliquor products or other items.

* * *(35) Sale of wine received by direct shipment. For any licensee to

sell or offer to sell any wine purchased or acquired from a direct wineshipper under the authority of section 488.

Section 10. This act shall take effect in 60 days.

On the question,Will the Senate agree to the amendment?

The PRESIDENT. The Chair recognizes the gentleman fromAllegheny County, Senator Ferlo.

Senator FERLO. Mr. President, I will try to be brief and sum-marize. Unlike the substantive comprehensive amendment by theMajority Leader which we received about a half-hour ago, Sen-ate Bill No. 800, which basically is the elements of my amend-ment to this bill, have been around in legislative form for quitesome time. This amendment would allow, suggest, and wouldhave the unanimous support of our Senate Democratic col-leagues, but hopefully will reach out to those on the oppositeaisle for support.

This amendment provides for the modernization of the Penn-sylvania Liquor Control Board and the operation of Wine &Spirits stores. The amendment will amend the Liquor Code thatoften prevents the Liquor Control Board from operating at peakperformance. The amendment will improve and protect a greatpublic asset and increase the customer convenience and experi-ence of purchasing different types of alcohol. The amendmentwill help produce as much as $100 million in additional revenuefor the General Fund to improve sales and streamline PLCBoperations. It would institute flexible pricing. The amendmentwould permit the Liquor Control Board to charge between25 percent and 35 percent. As our colleagues are aware, currentlythe Liquor Control Board feels it cannot provide flexibility in itspricing due to restrictive language in the Liquor Code requiringproportionate markup on all of its products. Proportionate hasbeen interpreted to mean that a uniform markup must be used inall products regardless of the quality or volume that is sold of theparticular brand. The Liquor Control Board wishes to removerequired proportionate pricing so that the board can design pric-ing structures more reflective of successful retail operations. Ifgiven the flexibility, the agency could increase profitability by$50 million to $70 million per year. It would allow changes inpersonnel. The amendment would permit the Pennsylvania Li-quor Control Board to hire wine retail specialists to improvecustomer experience. The amendment will allow the Liquor Con-trol Board to hire a limited number of wine specialty customerrelations employees or to promote them from within the existingstaff without going through the Civil Service system. The winespecialty position has been a difficult position for the board tofill, even though the agency may have a qualified person on staff.They have been unable to promote them because of restrictiveCivil Service provisions. This will provide a limited amount offlexibility to hire this specialty position without undermining thetypically fair and transparent Civil Service process.

On the area of procurement, the Liquor Control Board will beremoved from the onerous Procurement Code so that it can moreefficiently purchase products necessary for retail businesses tofunction more profitably. Currently, as we are aware, the PLCBmust go through the rigorous and time-consuming procurementprocess, which may cause the agency to miss important marketopportunities.

This amendment will permit the Pennsylvania Liquor ControlBoard to have a limited number of opportunities, such as enteringleases, to bypass the procurement process and act on the board'sdiscretion. We are talking about a $2 billion capitalist operation.


The Department of General Services will review the procurementpolicies and purchases of the PLCB.

We want to see grocery store partnerships. The amendmentwould permit the LCB to partner with grocery stores to locateWine & Spirits stores within the square footage of these largesupermarkets, as well as offering customers discounts in cooper-ation with grocery stores. The amendment will provide the PLCBwith improved opportunities to partner with grocery stores toincrease the number of stores with a store within a store to pro-vide more convenience for shoppers while retaining the Pennsyl-vania Liquor Control Board as an important State asset and pub-lic trust.

Out-of-State shipments. The Pennsylvania Liquor ControlBoard, under our amendment, by substitution will be authorizedto ship out of State to residents and to work with other controlState agencies to buy and sell alcohol cooperatively to improvethe profitability for our own Commonwealth. The PennsylvaniaLiquor Control Board will be enabled to work with other controlStates to purchase and sell alcohol and could even begin shippingto customers in other States. This will improve the profitabilityof the LCB system and the return of even more revenue to theState's General Fund. Customer service improvements, under thisamendment, include longer hours and more stores to be open onSunday, and customer-relations programs. This initiative willallow the LCB to install programs that are similar to those cur-rently used by grocery stores to customize experiences by pro-viding improved product information and crafting discounts andcoupon opportunities to individual customers.

Direct wine shipment. The amendment would allow and per-mit direct wine shipment to residential customers. The amend-ment will permit wine manufacturers to ship directly to residen-tial customers, requiring proof of identification at the time ofdelivery. The State's liquor tax and sales tax will continue to becalculated and collected in the same fashion that it is currentlyused at the Wine & Spirits stores, and the PLCB would be re-quired to license any direct wine shipper. I believe it is a $100fee, if I am not mistaken.

We will improve, under this amendment, the marketplace forlicensees that purchase alcohol from the PLCB by uniformlyincreasing the licensee discount to 16 percent from the current10 percent and cutting special liquor order markups in half.

I have often spoken about the strength of the tavern and res-taurant communities. We are partners with these hundreds, if notseveral thousand small businesses across our great Common-wealth. They are a mainstay as part of the development and re-birth of many community main streets and community businessdistricts. Licensees should be treated as partners of the Pennsyl-vania Liquor Control Board and economic engines, rather thansimply customers. These two pricing provisions will improve theprofitability of restaurants and taverns, as I have stated.

In closing, Mr. President, beer package reform. This amend-ment allows for package reform by permitting distributors to sellsix-packs and letting restaurants and taverns sell up to a case ofbeer, 24 bottles. This excludes grocery stores that have alreadypurchased our licensees, which I think the number is up to 170,180 across the State or more and moving towards that each andevery day.

Distributors, restaurants, and taverns need additional authorityto sell different quantities of beer, especially the developing

microbrew industry that we have growing in leaps and boundsthroughout our various counties. The amendment will permitdistributors to sell six-packs or four-packs. Restaurants and tav-erns, except those with an interior connection such as grocerystores, would be given the possibility to sell up to 24 12-ouncecontainers of beer.

Mr. President, I know, despite the vote that was just taken, avote that was really part of an elaborate political chess gameinvolving the transportation budget in the House, that there aremany colleagues on the aisle opposite who very much want topreserve, protect, enhance, and improve the operations of theState Store system. This modernization gut-and-replacementamendment, Mr. President, will do just that. Please, I ask foryour consideration.


Dauphin, Senator Teplitz.Senator TEPLITZ. Mr. President, I rise to support the Ferlo

amendment. I will be brief because we are about 4 hours past mybedtime. This is what I would call the unhappy hour.

The purpose, spirit, and gist of the amendment is moderniza-tion as opposed to privatization. For me, the sale of alcohol inPennsylvania and why I support this amendment is primarily amathematical issue, not an ideological one. If we needed to de-sign a system from scratch today to sell alcohol in Pennsylvania,I think few people, including myself, would design the systemwe have now. But the current system has been in existence foralmost a century, and the hundreds of millions of dollars that itnow generates each year has become a critical component of ourState budget. No privatization plan has ever been able to replacethose funds over the long term. That is why I support moderniza-tion rather than privatization. Modernization would address legit-imate concerns about convenience, selection, and pricing, butwithout hurting the State's bottom line. In fact, it would bringeven more money into the State's coffers. This would be awin-win for both consumers and taxpayers.

Mr. President, I am no blind defender of the current system.When I was at the Auditor General's Office, I helped expose thedisastrous and expensive wine kiosk system, as well as the LCB'spoor judgment in awarding a training contract to the spouse of aregional manager. No agency is perfect, and that goes for theLCB. But I also do not believe in throwing the baby out with thetonic water. I know that reasonable people can disagree on thisissue, but I do not believe that we should put taxpayers, commu-nities, and small businesses at risk by pursuing a liquor privatiza-tion and expansion scheme. That is why I am supporting theFerlo amendment, the modernization approach, and I urge mycolleagues to do the same. Thank you.


Senator PILEGGI. Mr. President, I urge a negative vote on theamendment.


The yeas and nays were required by Senator FERLO and wereas follows, viz:


YEA-24

Blake Ferlo Leach TeplitzBoscola Fontana Schwank WashingtonBrewster Greenleaf Smith WileyCosta Hughes Solobay WilliamsDinniman Kasunic Stack WozniakFarnese Kitchen Tartaglione Yudichak

NAY-26

Alloway Erickson Rafferty VulakovichArgall Folmer Robbins WardBaker Gordner Scarnati WaughBrowne Hutchinson Smucker WhiteBrubaker McIlhinney Tomlinson YawCorman Mensch VanceEichelberger Pileggi Vogel

Less than a majority of the Senators having voted "aye," thequestion was determined in the negative.

Upon motion of Senator PILEGGI, and agreed to by voicevote, the bill, as amended, was rereferred to the Committee onAppropriations.

SB 100 CALLED UP

SB 100 (Pr. No. 1280) -- Without objection, the bill, whichpreviously went over in its order temporarily, was called up,from page 1 of the Third Consideration Calendar, by SenatorPILEGGI.

BILL OVER IN ORDER

SB 100 -- Without objection, the bill was passed over in itsorder at the request of Senator PILEGGI.

ANNOUNCEMENTS BY THE SECRETARY

The following announcements were read by the Secretary ofthe Senate:

SENATE OF PENNSYLVANIA

COMMITTEE MEETINGS

SATURDAY, JUNE 29, 2013

Off the Floor APPROPRIATIONS (to consider Rules Cmte.Senate Bill No. 944; and House Bills Conf. Rm.No. 25, 163, 290, 388, 390, 391, 465,770, 790, 1075, 1098, 1141, 1437and 1490)

Off the Floor RULES AND EXECUTIVE Rules Cmte.NOMINATIONS (to consider Senate Conf. Rm.Bill No. 259; and certain executivenominations)

SUNDAY, JUNE 30, 2013

Off the Floor APPROPRIATIONS (to consider Senate Rules Cmte.Bill No. 1043; and House Bills No. 465 Conf. Rm.and 1141)

Off the Floor FINANCE (to consider House Bill No. Rules Cmte.440) Conf. Rm.

Off the Floor RULES AND EXECUTIVE Rules Cmte.NOMINATIONS (to consider Senate Conf. Rm.Bills No. 351 and 470; and certainexecutive nominations)

Off the Floor STATE GOVERNMENT (to consider the Rules Cmte.nomination of Lt. Col. Scott A. Rainey to Conf. Rm.the PA Civil Service Commission)

FRIDAY, SEPTEMBER 13, 2013

2:00 P.M. GAME AND FISHERIES (public hearing Elk Countyto gather information about: overview of Visitors Ctr.elk herd in PA; elk viewing and economic Benezettedevelopment; overview of Keystone ElkCounty Alliance; and 100th Anniversaryof the Reintroduction of the Elk Programin PA)

RECESS


Senator PILEGGI. Mr. President, I move that the Senate donow recess until Saturday, June 29, 2013, at 1 p.m., Eastern Day-light Saving Time, unless sooner recalled by the President protempore.

The motion was agreed to by voice vote.The Senate recessed at 1:38 a.m., Eastern Daylight Saving

Time.

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