Section 470.3. License Auction.--(a) A restaurant liquor license shall become available for auction by the board under the following conditions:
(1) the license has not been renewed under section 470;
(2) the license has been revoked under section 471;
(3) the licensee has failed to meet the requirements under section 474.1; or
(4) (Reserved).
((a) amended Dec. 22, 2025, P.L.337, No.56)
(a.1) (1) Subsection (a) shall apply to all restaurant liquor licenses that became available after December 31, 1999.
(2) No more than fifty licenses shall be auctioned in any county per year. ((2) amended Dec. 22, 2025, P.L.337, No.56)
(b) A license becomes available for auction by the board the day after the deadline has passed for appealing a decision revoking or not renewing the license or the day after the two-year window to file a renewal application nunc pro tunc under section 470 has passed.
(c) ((c) repealed July 13, P.L.664, No.85)
(d) ((d) repealed July 13, P.L.664, No.85)
(e) ((e) repealed July 13, P.L.664, No.85)
(f) A person who would be precluded from acquiring a license under sections 411 or 443 or who, in the board's opinion is not of good repute, may not apply for a license under this section and the board shall refuse any applications submitted by the person.
(g) The auction shall be conducted in the manner set forth by the board and at the date and time appointed by the board. After the auction, the board shall provisionally award to the person making the highest bid for the license, the right to file an application for the license. The board shall not accept a bid lower than twenty-five thousand dollars ($25,000).
(h) The winning bidder shall pay to the board the bid amount within thirty days of being awarded a license. Payment shall be by cashier's check, certified check or any other method acceptable to the board. If the winning bidder does not pay the bid amount within thirty days, the second highest bidder shall be awarded the right to file an application for the license, so long as the bid amount is in accordance with subsection (g). ((h) amended Dec. 22, 2025, P.L.337, No.56)
(i) Within six months of being awarded the license, the bidder or its assignee shall file an application to transfer the license. The application shall be processed in the same manner as any other transfer application and shall be subject to the same restrictions as any other transfer application, including any conditional licensing agreements and county quota restrictions under section 461. The board shall only approve the transfer of a license under this section to a municipality, other than the municipality it last operated in, upon approval by the governing body of the municipality as provided under section 461(b.3). ((i) amended Dec. 22, 2025, P.L.337, No.56)
(j) Once a license has become available as set forth in this section, it may no longer be subject to any unpaid fines, unserved suspensions, liens or judgments accrued by the previous license holder. A winning bidder under this section shall not be required to supply any information about or secure any information from the previous license holder during the application process.
(k) A license acquired under this section may subsequently be transferred subject to any restrictions that would otherwise be applicable to the transfer of the license, unless the license was awarded in an excess auction under subsection (l). A license awarded in an excess auction and subsequently transferred to a different county than the county of origination may not be transferred from the receiving municipality for a period of five years after the date the licensed premises are operational. ((k) amended Dec. 22, 2025, P.L.337, No.56)
(l) A license not receiving a bid at an initial auction shall be eligible to be bid upon at the discretion of the board and awarded at an excess auction as follows:
(1) the board shall hold at least one excess auction every calendar year;
(2) the license shall be awarded to the highest bidder, subject to the twenty-five thousand dollar ($25,000) minimum bid threshold as provided under subsection (g), for possible use in any county, regardless of the original location of the licensed premises;
(3) the winning bidder may transfer the license without regard to the restrictions under section 461(a) upon approval from the governing body of the municipality where the license will be transferred as provided under section 461(b.3);
(4) a request to transfer the winning license to a different county shall be made in writing to the board and shall be subject to an application fee of fifty thousand dollars ($50,000) for transfers into counties of the first through fourth classes and twenty-five thousand dollars ($25,000) for transfers into counties of the fifth through eighth classes;
(5) no more than two licenses shall be transferred into the same county as the result of an excess license auction conducted within the same calendar year; and
(6) the board shall give preference to the applicants submitting the highest bid amounts when considering transfer requests into the same county under this section.
((l) added Dec. 22, 2025, P.L.337, No.56)
(m) All revenue generated by the board relative to conducting license auctions and collecting transfer application fees under this section shall be deposited into The State Stores Fund and may be subsequently transferred by the board to the General Fund as part of its annual profit transfer. ((m) added Dec. 22, 2025, P.L.337, No.56)
(470.3 added June 8, 2016, P.L.273, No.39)
Compiler's Note: See section 28 of Act 39 of 2016, which added section 470.3, for special provisions relating to the establishment of a Wine and Spirits Wholesale and Retail Privatization Commission.