Pennsylvania Code › Title 4 - ADMINISTRATION › Part I - GOVERNOR's OFFICE › Chapter 7 - MISCELLANEOUS PROVISIONS › Subchapter Y - ALCOHOLIC BEVERAGE CONTROL COORDINATING COUNCIL › Section 7.343 - Divestment of State Stores and initial private licensing

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The Council shall, by June 30, 1987,
				  develop a plan to provide for the divestment of the State Store system by the
				  Department of General Services and the issuance by the Department of Revenue of
				  initial licenses for the private retail and wholesale distribution of liquor
				  within this Commonwealth. The plan may include, but shall not be limited to,
				  the following provisions.
(1)
Auction
				  of State Store assets.
The Department of General Services shall,
				  between July 1, 1987, and March 31, 1988, sell by auction to the highest
				  qualified bidder the right to purchase, upon the cessation of their operations
				  the inventory, tangible property and fixtures of each State Store. The
				  Department shall establish a minimum bid for each auction equal to at least
				  $10,000 more than the book value of the assets of any store plus the wholesale
				  cost of anticipated surplus inventories at the time the State Store ceases
				  operation. The Department shall guarantee to each bidder a minimum specified
				  stock of surplus inventory. In order to be qualified to bid for the assets of
				  State Stores, each bidder must agree to accept a license for the operation of a
				  private retail wine and liquor store as provided by paragraph (2) of this
				  subsection and to commence the operation of a private store pursuant to the
				  conditions provided by this section.
(2)
Issuance of private licenses.
In order to maximize the proceeds of the auction of State Store
				  assets and to facilitate the orderly transition to a private system for the
				  retail sale of wine and liquor, the Department of Revenue shall issue to the
				  successful bidder for the assets of each State Store a private license for the
				  sale of wine and liquor for off the premises consumption within the service
				  territory of each State liquor store. The privately licensed operations shall
				  provide product availability, hours of operation and customer services at least
				  equivalent to that offered by State Stores. Within areas of this Commonwealth
				  defined as "urbanized" by the United States Census Bureau, the privately
				  licensed establishments must operate within a one mile radius of the State
				  Store replaced by the licensee, within portions of communities defined by the
				  Census Bureau as "Standard Metropolitan Statistical Areas" and which are not
				  classified as "urbanized" the privately licensed establishment must be located
				  within a four mile radius of the State Store and in other areas the privately
				  licensed establishment must be within a ten mile radius. The licensee shall
				  commence full commercial operations within 90 days of the issuance of a license
				  pursuant to this paragraph.
(3)
Termination of State Store operations.
The Department of
				  General Services shall develop a plan for the disposition of the State Store
				  system which provides for the continued operation of each State-owned liquor
				  store for up to 90 days following the auction of the right to purchase the
				  property of the store. The Department shall further provide for the continued
				  operation of liquor wholesale distribution for a maximum period of twelve
				  months to the extent necessary to provide an adequate supply of consumer
				  products and services during the phase-in of operations of private retail
				  outlets and wholesale distributors. Each State-owned liquor store may remain in
				  operation for not more than 45 days, but not later than June 30, 1988,
				  following the opening of the substitute privately licensed wine and liquor
				  store in order to assure adequate continuity of services to the public. Upon
				  the termination of operations of any State Store, its property, fixtures and
				  surplus inventory shall be sold to the successful bidder upon the terms of the
				  winning bid at the auction provided by paragraph (1) of this
				  subsection.
(4)
Wholesale
				  licenses.
Effective July 1, 1987, the Department of Revenue shall
				  provide for the issuance of licenses to all liquor importers, distilleries and
				  wineries licensed by the Board and to other applicants qualified pursuant to
				  thelaws preserved by §
											7.346 (relating to terminated
				  statutory functions and duties of the Board) for sales to the Department of
				  General Services, for private wholesale liquor distribution to supply the
				  private retail liquor stores to be licensed pursuant to subsection (a)(2) of
				  this section and to all retail liquor licensees.
(5)
Disposition of other
				  property.
On or prior to July 1, 1988, the Department of General
				  Services shall dispose of all of the inventory, tangible property, fixtures and
				  other assets of the liquor wholesale distribution system and any other
				  remaining property previously held by the Board pursuant to the provisions of
				  section 2405 of The Administrative Code of 1929 (71 P. S. §
												635) (relating to the sale of unserviceable
				  property).