Pennsylvania House Bill HB828

Pennsylvania 2025-2026 Regular Session

• Introduced: 3/10/25
• Refer: 3/10/25
• Refer: 7/9/25

Caption

In licenses and regulations for liquor, alcohol and malt and brewed beverages, further providing for license auction.

Impact

The proposed changes have significant implications for state liquor laws as they modify the way in which licenses are distributed and transferred. Local municipalities will require approval from a licensing board for the transfer of licenses, ensuring that state oversight remains a key component of local decision-making regarding alcohol establishments. The five-year restriction on transferring licenses received through excess auctions further emphasizes a structured approach to liquor licensing that prioritizes organization and regulatory compliance. These alterations are designed to streamline the auction process while still maintaining a degree of local control over license transfers.

Summary

House Bill 828 seeks to amend the Pennsylvania Liquor Code, specifically addressing the procedures and regulations surrounding the auctioning of liquor licenses. The bill introduces provisions for 'excess auctions', where licenses not bid upon in their initial auction can be offered for sale in subsequent events. This change aims to increase the allocation of liquor licenses across various counties, facilitating greater access to operate businesses in the alcohol sector for interested parties. Additionally, it stipulates that no more than fifty licenses will be auctioned per county each year, which establishes a cap intended to prevent oversaturation in certain areas.

Sentiment

The sentiment surrounding HB 828 is anticipated to be mixed, with proponents emphasizing the expansion of opportunities for businesses in the alcohol industry and supporters believing that it could stimulate local economies by attracting new establishments. However, there may be concerns from local governance advocates who fear that increased auctions dilute municipal authority over liquor licenses, thereby complicating local regulatory frameworks. The balancing act between state regulation and local autonomy will likely dominate discussions regarding this bill.

Contention

A point of contention among stakeholders involves the implications of imposing an auction limit and the associated conditions of the license transfer process. Critics might argue that while the intent is to promote fairness in the distribution of liquor licenses, the imposition of a bidding process could unfairly advantage larger entities over small businesses or local entrepreneurs. Furthermore, limitations on transferability may hinder businesses' operational flexibility, particularly in areas experiencing rapid economic changes or variations in community needs. These discussions underscore the need for ongoing dialogue to ensure that the regulations support both state objectives and local aspirations.