Amendment 10372 to House Bill 1497 P.N. 2185, Regular Session 2017-2018

H1497B2185A10372 MSP:CMD 10/15/18 #90 A10372

AMENDMENTS TO HOUSE BILL NO. 1497

Sponsor: SENATOR McILHINNEY

Printer's No. 2185

Amend Bill, page 1, lines 1 through 26, by striking out all

of said lines and inserting

Amending the act of April 12, 1951 (P.L.90, No.21), entitled "An

act relating to alcoholic liquors, alcohol and malt and

brewed beverages; amending, revising, consolidating and

changing the laws relating thereto; regulating and

restricting the manufacture, purchase, sale, possession,

consumption, importation, transportation, furnishing, holding

in bond, holding in storage, traffic in and use of alcoholic

liquors, alcohol and malt and brewed beverages and the

persons engaged or employed therein; defining the powers and

duties of the Pennsylvania Liquor Control Board; providing

for the establishment and operation of State liquor stores,

for the payment of certain license fees to the respective

municipalities and townships, for the abatement of certain

nuisances and, in certain cases, for search and seizure

without warrant; prescribing penalties and forfeitures;

providing for local option, and repealing existing laws," in

preliminary provisions, further providing for definitions; in

licenses and regulations and liquor, alcohol and malt and

brewed beverages, further providing for applications for

hotel, restaurant and club liquor licenses, for sales by

liquor licensees and restrictions, for wine and spirits

auction permits, for public venue license, for performing

arts facility license, for wine expanded permits, for casino

liquor license, for application for distributors', importing

distributors' and retail dispensers' licenses and for

breweries, providing for taxes due on sales made by a holder

of a manufacturer's license, further providing for limiting

number of retail licenses to be issued in each county,

providing for liquor code suspension for deficiency, further

providing for local option and for unlawful acts relative to

liquor, malt and brewed beverages and licensees; in

distilleries, wineries, bonded warehouses, bailees for hire

and transporters for hire, further providing for limited

wineries and for distilleries; and, in miscellaneous

provisions, further providing for construction and

applicability.

2018/90MSP/HB1497A10372 - 1 -

Amend Bill, page 1, line 29; pages 2 through 24, lines 1

through 30; page 25, lines 1 through 16; by striking out all of

said lines on said pages and inserting

Section 1. The definitions of "alcoholic cider," "mixed-use

town center development project" and "public venue" in section

102 of the act of April 12, 1951 (P.L.90, No.21), known as the

Liquor Code, are amended and the section is amended by adding a

definition to read:

Section 102. Definitions.--The following words or phrases,

unless the context clearly indicates otherwise, shall have the

meanings ascribed to them in this section:

* * *

"Alcoholic cider" shall mean a beverage which may contain

carbonation in an amount not to exceed six and four tenths grams

per liter, produced through alcoholic fermentation [of any fruit

or fruit juice] which is primarily derived from apples, apple

juice concentrate and water, pears or pear juice concentrate and

water, consisting of at least one-half of one per centum, but

not greater than eight and one-half per centum, alcohol by

volume and sold or offered for sale as alcoholic cider and not

as a wine, a wine product or as a substitute for wine, in

bottles, cases, kegs, cans or other suitable containers of the

type used for the sale of malt or brewed beverages in this

Commonwealth.

* * *

"Fermented fruit beverage" shall mean a beverage which may

contain carbonation in an amount not to exceed six and four

tenths gram per liter, produced through alcoholic fermentation

of fruit, fruit juice, fruit juice concentrate and water with or

without flavorings, consisting of at least one-half of one per

centum, but not greater than eight and one-half per centum,

alcohol by volume and sold or offered for sale not as a wine, a

wine product or as a substitute for wine, in bottles, cases,

kegs, cans or other suitable containers of the type used for the

sale of malt or brewed beverages in this Commonwealth.

* * *

"Mixed-use town center development project" shall mean a

planned development, with no building construction commenced

prior to July 1, 2006, situated on no fewer than one hundred

contiguous acres, with at least one million square feet of

actual or proposed development, with a mix of retail,

hospitality, commercial [and] or residential uses, with

community facilities and which has been designated as a mixed-

use town center development project by the municipality in which

it is located. A mixed-use town center development project may

have one or multiple owners and may be developed in one or more

phases, all of which shall be included in determining the actual

or proposed development. If the site meets additional criteria

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stated in section 461(b.4)(5), a project comprising ninety-five

contiguous acres will meet the size requirement in this

definition.

* * *

"Public venue" shall mean a stadium, arena, convention

center, museum, zoo, amphitheater or similar structure. If the

public venue is a cruise terminal owned or leased by a port

authority created under the act of June 12, 1931 (P.L.575,

No.200), entitled "An act providing for joint action by

Pennsylvania and New Jersey in the development of the ports on

the lower Delaware River, and the improvement of the facilities

for transportation across the river; authorizing the Governor,

for these purposes, to enter into an agreement with New Jersey;

creating The Delaware River Joint Commission and specifying the

powers and duties thereof, including the power to finance

projects by the issuance of revenue bonds; transferring to the

new commission all the powers of the Delaware River Bridge Joint

Commission; and making an appropriation," it shall have no

permanent seating requirement. If the public venue is an open-

air amphitheater owned by a port authority created under the act

of December 6, 1972 (P.L.1392, No.298), known as the "Third

Class City Port Authority Act," it shall have no permanent

seating requirement. If the public venue is owned by a political

subdivision, a municipal authority, the Commonwealth, an

authority created under the act of July 29, 1953 (P.L.1034,

No.270), known as the "Public Auditorium Authorities Law," an

authority created under Article XXV-A of the act of July 28,

1953 (P.L.723, No.230), known as the "Second Class County Code,"

an art museum established under the authority of the act of

April 6, 1791 (3 Sm.L.20, No.1536), entitled "An act to confer

on certain associations of the citizens of this commonwealth the

powers and immunities of corporations, or bodies politic in

law," [or] an authority created under Article XXIII (n) or (o)

of the act of August 9, 1955 (P.L.323, No.130), known as "The

County Code," or it is located in a neighborhood improvement

zone created under Article XIX-B of the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971, located in

a city of the third class, it shall have permanent seating for

at least one thousand (1,000) people; otherwise, it shall have

permanent seating for at least two thousand (2,000) people. The

term shall also mean any regional history center, multipurpose

cultural and science facility, museum or convention or trade

show center, regardless of owner and seating capacity, that has

a floor area of at least sixty thousand (60,000) square feet in

one building. The term shall also mean a convention or

conference center owned by a city of the third class or a

university which is a member of the Pennsylvania State System of

Higher Education which is operated by a university foundation or

alumni association, regardless of seating capacity, that has a

floor area of at least fifteen thousand (15,000) square feet in

one building. The term shall also mean a visitor center,

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regardless of floor area or seating capacity, that was

established under the authority of the Gateway Visitor Center

Authorization Act of 1999 (Public Law 106-131, 113 Stat. 1678,

16 U.S.C. § 407m).

* * *

Section 2. Sections 403(a), 406(d), 408.12(a), 412(f)(1),

413(f)(1), 415(f), 416, 436(b) and 446(a) introductory paragraph

and (2) of the act are amended to read:

Section 403. Applications for Hotel, Restaurant and Club

Liquor Licenses.--(a) Every applicant for a hotel liquor

license, restaurant liquor license or club liquor license or for

the transfer of an existing license to another premises not then

licensed or to another person shall file a written application

with the board in such form and containing such information as

the board shall from time to time prescribe, which shall be

accompanied by a filing fee and an annual license fee as

prescribed in section 614-A of the act of April 9, 1929

(P.L.177, No.175), known as "The Administrative Code of 1929."

Every such application shall contain a description of that part

of the hotel, restaurant or club for which the applicant desires

a license and shall set forth such other material information,

description or plan of that part of the hotel, restaurant or

club where it is proposed to keep and sell liquor as may be

required by the regulations of the board. The descriptions,

information and plans referred to in this subsection shall show

the hotel, restaurant, club, or the proposed location for the

construction of a hotel, restaurant or club, at the time the

application is made, and shall show any alterations proposed to

be made thereto, or the new building proposed to be constructed

after the approval by the board of the application for a license

or for the transfer of an existing license to another premises

not then licensed or to another person. No physical alterations,

improvements or changes shall be required to be made to any

hotel, restaurant or club, nor shall any new building for any

such purpose, be required to be constructed until approval of

the application for license or for the transfer of an existing

license to another premises not then licensed or to another

person by the board. After approval of the application, the

licensee shall make the physical alterations, improvements and

changes to the licensed premises, or shall construct the new

building in the manner specified by the board at the time of

approval, and the licensee shall not transact any business under

the license until the board has approved the completed physical

alterations, improvements and changes to the licensed premises,

or the completed construction of the new building as conforming

to the specifications required by the board at the time of

issuance or transfer of the license, and is satisfied that the

establishment is a restaurant, hotel or club as defined by this

act. The board may require that all such alterations or

construction or conformity to definition be completed within six

months from the time of issuance or transfer of the license. The

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time between the approval of the initial application and

issuance of operating authority to the licensee shall be

considered as time in safekeeping. Failure to comply with these

requirements shall be considered cause for revocation of the

license. No such license shall be transferable between the time

of issuance or transfer of the license and the approval of the

completed alterations or construction by the board and full

compliance by the licensee with the requirements of this act,

except in the case of death of the licensee prior to full

compliance [with all of the aforementioned requirements or

unless full compliance is impossible for reasons beyond the

licensee's control, in which event, the license may be

transferred by the board as provided in this act.], unless the

transfer application is accompanied by a surcharge. The

surcharge shall be twenty thousand dollars ($20,000) if the

license is located in a county of the first through fourth

class, and the surcharge shall be five thousand dollars ($5,000)

if the license is located in a county of the fifth through

eighth class.

* * *

Section 406. Sales by Liquor Licensees; Restrictions.--* * *

(d) Subject to section 412, licensed public venues may sell

liquor and malt or brewed beverages on Sundays from [eleven] ten

o'clock antemeridian until midnight without the need to acquire

or qualify for a special permit. In addition, subject to section

413, licensed performing arts facilities may sell liquor and

malt or brewed beverages on Sundays from [one o'clock

postmeridian] ten o'clock antemeridian until ten o'clock

postmeridian without the need to acquire or qualify for a

special permit.

* * *

Section 408.12. Wine and Spirits Auction Permits.--(a) Upon

application of:

(1) any nonprofit hospital;

(2) any nonprofit public television station which is a

member of the Pennsylvania Public Television Network;

(3) any orchestra located in a county of the first, second

or third class which is operated by a nonprofit corporation;

(4) any museum located in a county of the first, second,

third or fourth class which is operated by a nonprofit

corporation;

(5) any nonprofit corporation located in any county of the

third class which trains and places dogs for people who are

physically handicapped;

(6) any nationally recognized community-based voluntary

health organization committed to fighting cancer [which has been

in existence for at least ninety years];

(7) any nationally recognized emergency response

organization that offers humanitarian care to victims of war or

natural disaster and has been in existence for at least one

hundred twenty-five years;

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(8) any nationally recognized organization whose purpose is

to serve as an agent to collect funds for local charities, as

well as to coordinate relief services, counsel and refer clients

to cooperating agencies and make emergency assistance grants and

has been in existence for at least one hundred twenty years;

(9) any hospice as defined under section 802.1 of the act of

July 19, 1979 (P.L.130, No.48), known as the "Health Care

Facilities Act";

(10) institution of higher education;

(11) any nationally recognized community-based health

organization committed to funding Type 1 Diabetes research; [or

(12) any nationally recognized community-based voluntary

health organization committed to fighting cancer which has been

in existence for at least twenty years;]

(13) any community-based voluntary health organization in a

county of the second class which enriches the lives of children

and adults with disabilities and chronic illnesses; or

(14) any nonprofit organization located in any county of the

third class established to provide general support and food

assistance for students in pre-kindergarten through twelfth

grade;

and upon payment of a fee of thirty dollars ($30) per day, the

board shall issue a wine and spirits auction permit good for a

period of not more than four consecutive or nonconsecutive days

per calendar year.

* * *

Section 412. Public Venue License.--* * *

(f) Licenses issued under this section are to be considered

restaurant liquor licenses. However, the following additional

restrictions and privileges apply:

(1) Sales may only be made one hour before, during and one

hour after any athletic performance, performing arts event,

trade show, convention, banquet or any other performance at the

facility; however, sales may not be made from two o'clock

antemeridian to seven o'clock antemeridian. In addition, sales

may not occur prior to [eleven] ten o'clock antemeridian on

Sundays or seven o'clock antemeridian on Mondays.

Notwithstanding this section, facilities that had been licensed

under former sections 408.9 and 408.14 may sell liquor and/or

malt or brewed beverages anytime except from two o'clock

antemeridian to seven o'clock antemeridian or prior to eleven

o'clock antemeridian on Sundays or seven o'clock antemeridian on

Mondays, regardless of whether there is a performance at the

facility.

* * *

Section 413. Performing Arts Facility License.--* * *

(f) Licenses issued under this section are to be considered

restaurant liquor licenses. However, the following additional

restrictions and privileges apply:

(1) Sales of liquor and malt or brewed beverages may be made

two hours before, during and one hour after any performance at

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the facility; however, sales may not be made from two o'clock

antemeridian to seven o'clock antemeridian. In addition, sales

may not occur prior to [one o'clock postmeridian] ten o'clock

antemeridian or after ten o'clock postmeridian on Sundays.

However, facilities that had been licensed under former section

408.3(a) and 408.3(a.2) may sell liquor and malt or brewed

beverages anytime except from two o'clock antemeridian to seven

o'clock antemeridian or prior to one o'clock postmeridian or

after ten o'clock postmeridian on Sundays, regardless of whether

there is a performance at the facility.

* * *

Section 415. Wine Expanded Permits.--* * *

(f) A wine expanded permit holder may sell a wine product

for off-premises consumption at a price that is different than

the price it charges for the wine product for on-premises

consumption; however, it may not sell a wine product for off-

premises consumption at a price less than the licensee's

purchase price from the board of the wine product.

* * *

Section 416. Casino Liquor License.--(a) Notwithstanding

any provision of law or regulation, [a slot machine licensee or

an affiliated designee holding a restaurant liquor or eating

place retail dispenser license and which sells liquor or malt or

brewed beverages at or adjacent to a gaming facility under this

act may apply to the board for a casino liquor license. The

board may issue a casino liquor license to a slot machine

licensee for use at the casino liquor licensee's licensed

facility in accordance with this section.] the board may issue a

casino liquor license to a slot machine licensee in accordance

with this section. A casino liquor license shall authorize the

holder to sell liquor or malt or brewed beverages as provided

for in this section.

(a.1) A slot machine licensee may apply to the board for a

casino liquor license to sell liquor or malt or brewed beverages

as provided for in this section. A slot machine licensee shall

file a separate application and pay a separate fee for each

casino liquor license that is sought for each licensed facility.

Upon issuance of each casino liquor license to a slot machine

licensee under this section, the slot machine licensee shall pay

a fee of one million dollars ($1,000,000), which shall be paid

to the board in nonrefundable, equal installments of two hundred

fifty thousand dollars ($250,000) for a period of four years

immediately following the issuance of the license. The first

payment shall be made at the time the casino liquor license is

issued. Notwithstanding the provisions of section 802, all fees

collected or received by the board under this subsection shall

be paid into the State Treasury through the Department of

Revenue for deposit into the General Fund.

(b) [Each application for a casino license under this

section shall be accompanied by a fee of one million dollars

($1,000,000).] (Reserved).

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(b.1) [Each restaurant licensee that does not hold a slot

machine license but operates within or adjacent to the gaming

facility must pay a one-time fee of ten thousand dollars

($10,000).] (Reserved).

(1) A casino liquor license must be renewed on an annual

basis.

(2) [For the first four years after the initial issue of the

casino liquor license, the casino liquor license shall be

subject to an annual renewal fee of one million dollars

($1,000,000).] (Reserved).

(3) After the [period under paragraph (2), the] installment

payment period under subsection (a.1), a casino liquor license

shall be subject to an annual renewal fee of [two hundred and

fifty thousand dollars ($250,000)] two thousand five hundred

dollars ($2,500).

(4) Notwithstanding the provisions of section 802, all fees

collected or received by the board under this subsection shall

be paid into the State Treasury through the Department of

Revenue for deposit into the General Fund.

(d) The following shall apply to the disposition of a

restaurant liquor or eating place retail dispenser [licenses]

license held by a slot machine licensee that receives a casino

liquor license:

(1) [An applicant] A slot machine licensee seeking a casino

liquor license under this section that currently holds a

restaurant liquor or eating place retail dispenser license may

continue to utilize the license until the casino liquor license

is issued by the board. Upon issuance of a casino liquor

license, the [applicant] slot machine licensee must surrender

the restaurant liquor or eating place retail dispenser license

to the board.

(2) [An applicant] A slot machine licensee seeking a casino

liquor license under this section that currently holds a

restaurant liquor or eating place retail dispenser license that

is subject to the quota restrictions under section 461(a) may

continue to utilize that license until the casino liquor license

is issued by the board. Upon issuance of a casino liquor

license, the applicant may sell the restaurant liquor or eating

place retail dispenser license.

(e) Notwithstanding any other provision of law, a holder of

a casino liquor license may sell or serve liquor and malt or

brewed beverages twenty-four (24) hours a day, seven (7) days a

week anywhere within the licensed facility that is not subject

to a different license issued by the board.

(f) A casino liquor license shall be nontransferable, except

that nothing in this subsection shall preclude a transfer of

ownership of a casino liquor license to another eligible person

to be used at the same licensed facility.

(g) A casino liquor license shall expire under the following

circumstances:

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(1) revocation by an administrative law judge under section

471;

(2) nonrenewal by the board under section 470;

(3) nonrenewal of the license by a slot machine licensee or

its designee; [or]

(4) upon request by the slot machine licensee[.]; or

(5) the casino liquor licensee fails to pay the appropriate

fee under subsections (a.1) and (c).

(h) The board may issue a casino liquor license at any time

to a new applicant even if the previous license had:

(1) been revoked by an administrative law judge under

section 471;

(2) not been renewed by the board under section 470;

(3) not been renewed by the slot machine licensee; or

(4) expired upon request by the slot machine licensee.

(i) In addition to any other restrictions and privileges, a

casino liquor license shall be subject to the following:

(1) [Sales may be made at any time the facility is open to

the public.] Except as provided under this section and subject

to section 472, a casino liquor license shall be treated as a

restaurant liquor license or, if restaurant liquor licenses may

not be issued in the municipality, as an eating place retailer

dispenser license.

(1.1) A casino liquor licensee may sell, furnish or give

liquor or malt or brewed beverages after seven o'clock

antemeridian of any day until two o'clock antemeridian of the

following day on the unlicensed portion of the licensed facility

if the liquor or malt or brewed beverages remain on the licensed

facility.

(2) Liquor or malt or brewed beverages may be transported

and consumed [off the gaming floor] anywhere on the property on

which the licensed facility is located if the liquor or malt or

brewed beverage remains [within the premises] on the property of

the licensed facility[.], except that it may not be transported

to and consumed within another restaurant liquor or eating place

retail dispenser licensee location within the licensed facility.

(3) Sales of malt or brewed beverages for off-premises

consumption are prohibited, nor shall the license be eligible

for a wine expanded permit.

(4) In addition to the provisions of section 493(24)(ii),

the holder of a casino liquor license may give liquor and malt

or brewed beverages free of charge to any person attending an

invitation-only event held anywhere on the premises of the

licensed facility.

(5) Licenses issued under this section shall not be subject

to:

(i) the proximity provisions of sections 402 and 404;

(ii) the restrictions on discount pricing practices set

forth in sections 406(g) and 442(g);

(iii) the quota restrictions under section 461;

(iv) the provisions of section 493(10);

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(v) the prohibition against minors frequenting as described

in section 493(14);

(vi) the cost and total display area limitations of section

493(20)(i);

(vii) the restrictions on events, tournaments or contests in

40 Pa. Code § 5.32 (relating to restrictions/exceptions) or any

successor regulation; and

(viii) the restrictions on the awarding of trophies, prizes

or premiums set forth in 40 Pa. Code § 5.32 or any successor

regulation.

[(j) More than one casino liquor license issued by the board

may be in effect at a licensed facility at any one time, except

that no more than one casino liquor license shall be in effect

at a specific location within the premises of a licensed

facility at the same time.]

(k) If a casino liquor license is revoked or nonrenewed but

the slot machine licensee continues to operate the licensed

facility, the slot machine licensee may apply for a new

restaurant liquor or eating place retail dispenser license under

4 Pa.C.S. § 1521 (relating to liquor licenses at licensed

facilities), or if the slot machine licensee had previously

surrendered its restaurant liquor or eating place retail

dispenser license to the board under subsection (d)(1), the

board may reissue the previously surrendered license.

(l) The additional restrictions and privileges granted to a

casino liquor license issued under this section shall not affect

the restrictions and privileges of any other licenses or permits

issued for use at locations within the licensed facility.

(m) As used in this section, the following words and phrases

shall have the meanings given to them in this subsection:

"Licensed facility" shall have the meaning given the term

under 4 Pa.C.S. § 1103 and that is operated by a slot machine

licensee. The term shall not include a category 4 licensed

facility.

"Slot machine licensee" shall mean the holder of any of the

following:

(1) A Category 1 slot machine license as provided for under

4 Pa.C.S. § 1302 (relating to Category 1 slot machine license);

(2) A Category 2 slot machine license as provided for under

4 Pa.C.S. § 1304 (relating to Category 2 slot machine license);

(3) A Category 3 slot machine license as provided for under

4 Pa.C.S. § 1305 (relating to Category 3 slot machine license).

The term shall not include a Category 4 slot machine license as

provided for in 4 Pa.C.S. § 1305.1 (relating to Category 4 slot

machine license).

Section 436. Application for Distributors', Importing

Distributors' and Retail Dispensers' Licenses.--Application for

distributors', importing distributors' and retail dispensers'

licenses, or for the transfer of an existing license to another

premises not then licensed or to another person, shall contain

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or have attached thereto the following information and

statements:

* * *

(b) The particular place for which the license is desired

and a detailed description thereof. The description, information

and plans referred to in this subsection shall show the premises

or the proposed location for the construction of the premises at

the time the application is made, and shall show any alterations

proposed to be made thereto, or the new building proposed to be

constructed after the approval by the board of the application

for a license, or for the transfer of an existing license to

another premises not then licensed or to another person. No

physical alterations, improvements or changes shall be required

to be made to any hotel, eating place or club, nor shall any new

building for any such purpose be required to be constructed

until approval of the application for license or for the

transfer of an existing license to another premises not then

licensed or to another person by the board. After approval of

the application, the licensee shall make the physical

alterations, improvements and changes to the licensed premises,

or shall construct the new building in the manner specified by

the board at the time of approval. The licensee shall not

transact any business under the license until the board has

approved the completed physical alterations, improvements and

changes of the licensed premises or the completed construction

of the new building as conforming to the specifications required

by the board at the time of issuance or transfer of the license

and is satisfied that the premises meet the requirements for a

distributor's or importing distributor's license as set forth in

this act or that the establishment is an eating place, hotel or

club as defined by this act. The board may require that all such

alterations or construction or conformity to definition be

completed within six months from the time of issuance or

transfer of the license. The time between the approval of the

initial application and issuance of operating authority to the

licensee shall be considered as time in safekeeping. Failure to

comply with these requirements shall be considered cause for

revocation of the license. No such license shall be transferable

between the time of issuance or transfer of the license and the

approval of the completed alterations or construction by the

board and full compliance by the licensee with the requirements

of this act, except in the case of death of the licensee prior

to full compliance [with all of the aforementioned requirements

or unless full compliance is impossible for reasons beyond the

licensee's control, in which event the license may be

transferred by the board as provided in this act.], unless the

transfer application is accompanied by a surcharge. The

surcharge shall be twenty thousand dollars ($20,000) if the

license is located in a county of the first through fourth

class, and the surcharge shall be five thousand dollars ($5,000)

if the license is located in a county of the fifth through

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eighth class.

* * *

Section 446. Breweries.--(a) [Holders] Subject to the

restrictions applicable to on-premise consumption set forth in

section 472, holders of a brewery license may:

* * *

(2) Operate a restaurant or brewery pub on the licensed

premises under such conditions and regulations as the board may

enforce: Provided, however, That sales on Sunday may be made

irrespective of the volume of food sales if the licensed

premises are at a public venue location. The holder of a brewery

license may sell wines [and], alcoholic cider and fermented

fruit beverages produced by the holder of a limited winery

license, malt or brewed beverages produced by a manufacturer

licensed by the board and liquor produced by a limited

distillery or distillery licensed by the board: Provided,

however, That said wines, malt or brewed beverages produced by

another manufacturer and liquor must be consumed at the licensed

premises. In addition, the combined sales of wine, malt or

brewed beverages produced by another manufacturer and liquor may

not, on a yearly basis, exceed fifty per centum (50%) of the on-

premises sales of the brewery's own malt or brewed beverages for

the preceding calendar year: however, if a brewery did not

operate for an entire calendar year during the preceding year,

then its combined sales of wine, malt or brewed beverages

produced by another manufacturer and liquor may not, on a yearly

basis, exceed fifty per centum (50%) of the on-premises sales of

the brewery's own malt or brewed beverages for that year.

* * *

Section 3. The act is amended by adding a section to read:

Section 449. Taxes Due on Sales Made by a Holder of a

Manufacturer's License.--(a) Notwithstanding any law to the

contrary, sales made by a holder of a manufacturer's license

issued under this article who sells the license holder's own

malt and brewed beverages under the license to the public for

consumption on-premises or off-premises shall be responsible for

paying and remitting the sales and use tax imposed by section

202 of the act of March 4, 1971 (P.L.6, No.2), known as the "Tax

Reform Code of 1971," in the following manner:

(1) The purchase price of malt or brewed beverages sold by a

manufacturer directly to the ultimate consumer for consumption

on premises shall be the wholesale price. As used in this

paragraph, the term "wholesale price" shall be the price at

which the manufacturer sells the same product to a distributor

or importing distributor.

(2) If the manufacturer does not sell the product to a

distributor or importing distributor, then the manufacturer

shall determine a constructive purchase price for the

manufacturer's own products in a manner consistent with section

201(g)(3) of the "Tax Reform Code of 1971." In determining a

constructive purchase price under this subsection, a holder of a

2018/90MSP/HB1497A10372 - 12 -

manufacturer's license making sales under this subsection shall

determine a purchase price which would naturally and fairly be

charged in an arms-length transaction to purchase malt and

brewed beverages from another manufacturer in which no common

interest exists and any other element causing a distortion of

the price or value is absent.

(b) Nothing in this section shall prohibit a holder of a

manufacturer's license making sales under subsection (a) from

using the actual retail price of the malt or brewed beverages

sold to consumers as the purchase price upon which the sales and

use tax imposed by section 202 of the "Tax Reform Code of 1971"

must be paid to the Commonwealth.

necessary to document that a holder of a manufacturer's license

making sales under subsection (a) is in compliance with this

section.

(d) Within 180 days from the effective date of this section,

the Department of Revenue shall promulgate written guidelines

for the implementation of this section.

Section 4. Section 461(b.3) and (b.4) of the act are amended

to read:

Section 461. Limiting Number of Retail Licenses To Be Issued

In Each County.--* * *

(b.3) An intermunicipal transfer of a license [or], issuance

of a license for economic development under subsection (b.1)(2)

(i) or issuance of a license for use at a mixed-use town center

development project under subsection (b.4) must first be

approved by the governing body of the receiving municipality

when the total number of existing restaurant liquor licenses and

eating place retail dispenser licenses in the receiving

municipality equal or exceed one license per three thousand

inhabitants. Upon request for approval of an intermunicipal

transfer of a license [or], issuance of an economic development

license or issuance of a license for use at a mixed-use town

center development project by an applicant, at least one public

hearing shall be held by the municipal governing body for the

purpose of receiving comments and recommendations of interested

individuals residing within the municipality concerning the

applicant's intent to transfer a license into the municipality

[or], acquire an economic development license or acquire a

license for use at a mixed-use town center development project

from the Pennsylvania Liquor Control Board. The governing body

shall, within forty-five days of a request for approval, render

a decision by ordinance or resolution to approve or disapprove

the applicant's request [for an intermunicipal transfer of a

license or issuance of an economic development license]. The

municipality may approve the request. A decision by the

governing body of the municipality to deny the request may not

be appealed. A copy of the approval must be submitted with the

license application. The approval requirement shall not apply to

licenses transferred into a tax increment district created

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pursuant to the act of July 11, 1990 (P.L.465, No.113), known as

the "Tax Increment Financing Act," located in a township of the

second class that is located within a county of the second class

if the district was created prior to December 31, 2002, and the

governing body of the township has adopted an agreement at a

public meeting that consents to the transfer of licenses into

the tax increment district. Failure by the governing body of the

municipality to render a decision within forty-five days of the

applicant's request for approval shall be deemed an approval of

the application in terms as presented unless the governing body

has notified the applicant in writing of their election for an

extension of time not to exceed sixty days. Failure by the

governing body of the municipality to render a decision within

the extended time period shall be deemed an approval of the

application in terms as presented.

(b.4) (1) Notwithstanding any other provision of this act

to the contrary, the board may [approve the transfer of a

restaurant liquor or eating place retail dispenser license from

a city of the first class to a county designated as a second

class A county or a county of the third class for the purpose of

economic development,] issue a restaurant liquor license or

eating place retail dispenser license for use at a mixed-use

town center development project that is located in a county of

the fourth class. The board may also issue a restaurant liquor

license or eating place retail dispenser license for use at a

mixed-use town center development project located in a county of

the second class A that is part of a mixed-use town center

development project previously acknowledged as such by the

board, so long as a petition and fee is filed in accordance with

this section. Prior to issuing any licenses, an interested party

must first petition the board to have a specific area designated

as a mixed-use town center development project. The board shall

determine what information must be contained in the petition and

the petition must be accompanied by a fee of one million dollars

($1,000,000), with said fee to be placed in The State Stores

Fund. The board shall grant the petition unless the proposed

location does not meet the definition of a mixed-use town center

development project, the applicant fails to provide the

information required in the petition or the board finds that

granting the petition would be detrimental to the welfare,

health, peace and morals of the inhabitants of the proposed

location. Licenses applied for under this section are not

limited to the person who petitioned the board and are subject

to the following conditions:

(i) The application to the board is accompanied by municipal

approval as set forth in subsection [(b.1)(2)(ii)] (b.3).

(ii) The proposed location is located within a mixed-use

town center development project as the term is defined in

section 102.

(iii) The application to the board is accompanied by a

resolution or ordinance indicating that the municipality has

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designated the location in question as being within the confines

of a designated mixed-use town center development project.

(iv) The issuance or transfer of a restaurant liquor or

eating place retail dispenser license is permissible under

section 472.

(v) The application is accompanied by an application

surcharge of fifty thousand dollars ($50,000), which shall be

placed in The State Stores Fund.

[(vi) The applicant has demonstrated to the board that it

has exhausted reasonable means for obtaining a suitable license

within the county. This requirement shall be deemed satisfied if

the applicant submits an Intra-County Affirmation as provided in

subclause (vii).

(vii) The application to the board is accompanied by the

applicant's written Intra-County Affirmation that demonstrates

that the applicant, its agents, employes or brokers are unable

to secure, at a price that is, to the best of the applicant's

knowledge, information and belief, the relative market price, as

defined in this section, an existing license in the county in

which the applicant's proposed premises are to be located. Said

affirmation shall be accompanied by an affidavit from a real

estate agent, license broker or other similar professional

attesting to the unavailability of a liquor license to the

applicant at a price that is comparable to prices paid by bona

fide purchasers for value for liquor licenses in the respective

county immediately prior to obtaining municipal approval under

subclause (iii), such comparable price being referred to as the

"relative market price" for the respective county. Said

affirmation shall set forth any measures taken to secure an

existing license, including the time period during which the

applicant attempted to secure a license, as well as any other

pertinent information. The board shall not approve the issuance

of a license under this section where it reasonably determines

an existing license was available to the applicant at the

relative market price prior to the applicant filing a request

for a license under this section.]

(viii) A transfer application submitted under this

subsection must be filed with the board prior to the effective

date of this subclause.

(2) A restaurant liquor or eating place retail dispenser

license that has been transferred from a city of the first class

to a county designated as a second class A county or a county of

the third class under this section may not be subsequently

transferred to any location outside of the mixed-use town center

development project. A restaurant liquor or eating place retail

dispenser license that has been issued under this subsection may

not be subsequently transferred to any location outside of the

mixed-use town center development project.

[(3) No more than one license for each fifty thousand square

feet of proposed or actual construction may be transferred into

a mixed-use town center development project under the provisions

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of this section. The applicant shall demonstrate that this

requirement has been met by providing documentation on its

application to the board that the development has sufficient

proposed or actual square footage to support the transfer of

licenses under this section.]

(4) The board may approve licensure of exterior serving

areas for premises to be located within a mixed-use town center

development project where such exterior serving areas are

situated on municipal-owned or private-owned property,

regardless of whether such exterior serving areas are located

immediately adjacent, abutting or contiguous to the building to

be licensed, provided that the employes of licensees in a

qualified mixed-use town center development project may traverse

unlicensed areas in order to deliver alcohol to patrons who are

seated in any such licensed serving area that is not immediate,

adjacent, abutting and contiguous to the licensee's primary

licensed premises; and provided further that any such licensed

serving area is delineated from all adjacent public areas by a

railing, barrier or other partition for the purpose of table

service only; and provided further that the entirety of such

noncontiguous licensed exterior serving area or areas is not

located more than thirty-five feet from the nearest point of the

licensed structure; and provided further that such noncontiguous

licensed exterior serving areas shall not include any additional

enclosed structure with four walls and a roof other than the

primary licensed building; and provided further that any and all

public thoroughfare or thoroughfares situated between the

licensed building and the noncontiguous exterior licensed

serving area is or are used primarily for pedestrian foot

traffic and not vehicular traffic; and provided further that the

local municipality has approved, by ordinance or resolution, the

use of such areas by the applicant; and provided further that,

in the case of municipal-owned property, a sidewalk cafe or

similar permit, as applicable, is first obtained by the

applicant; and provided further that the applicant complies with

any regulation issued by the board pursuant hereto or in

furtherance hereof. Any restaurant ("R"), eating place ("E") or

hotel ("H") license transferred to or issued for premises

located within a mixed-use town center development shall have

the privileges of this subsection so long as such license

remains within the mixed-use town center development.

Notwithstanding any other provision of law, licenses issued by

the board under this subsection shall not have the authority to

sell alcohol for off-premises consumption , nor shall the license

be eligible for wine expanded permits. Patrons may take wine and

malt or brewed beverages off of the licensed premises so long as

the wine and malt or brewed beverages remain in the area

previously designated by the board as part of the mixed-use town

center development project.

(5) A development site of at least ninety-five acres that

meets the following additional criteria shall satisfy the size

2018/90MSP/HB1497A10372 - 16 -

requirement to qualify as a mixed-use town center development

project:

(i) at least seventy-five acres of the project were secured,

whether by purchase or lease, by the developer prior to July 1,

2004;

(ii) at least sixty acres of the project have been entered

into the program of the Department of Environmental Protection

relating to land recycling and environmental remediation

standards;

(iii) at least thirty-five acres of the project have been

designated as a Brownfield Action Team site by the Department of

Environmental Protection and overlap, in whole or part, between

the areas in subclauses (ii) and (iii); and

(iv) the project site is bounded by a township road and a

State road.

* * *

Section 5. The act is amended by adding a section to read:

Section 470.4. Liquor Code Suspension for Deficiency.--(a)

(1) If the board finds, through an inspection by a board

employe, that a licensee does not meet a requirement under this

act or the board's regulations that renders the licensee

ineligible for the license, including instances when the

licensee no longer meets the seating, square footage, food,

health license or room requirements for the license, the board

may immediately impose an administrative suspension of the

operating privileges of the licensee and shall give written

notice to the licensee as to the exact deficiency observed. The

operating privileges shall remain suspended until the licensee

can establish to the board's satisfaction that the licensee is

again eligible for the license.

(2) If an employe of the enforcement bureau, a county

department of public health or a county department of licenses

and inspections or a similar employe of the Commonwealth or a

municipality finds that a licensee does not meet the

requirements of either this act or the board's regulations as

provided under paragraph (1), the employe may inform the board

of the deficiency so that the board may proceed under paragraph

(1).

(b) Section 464 and 42 Pa.C.S. § 933(a)(1)(v) (relating to

appeals from government agencies) shall not apply to an

administrative suspension under subsection (a)(1). If the board

refuses to reinstate a suspended licensee's operating

privileges, the suspended licensee may request a hearing before

Commonwealth Court under 42 Pa.C.S. § 761(a)(4) (relating to

original jurisdiction) solely on the issue of whether the

suspended licensee is eligible for reinstatement of operating

privileges. The Commonwealth Court shall hold a hearing within

ten days of the filing of the request for a hearing under this

subsection.

shall be in addition to any other penalty provided by law.

2018/90MSP/HB1497A10372 - 17 -

(d) Other violations of this act or questions as to the

continued fitness of a licensee, which are currently addressed

through the citation process under section 471 or the board's

nonrenewal process under section 470(a.1) shall continue to be

addressed in that manner and not through the administrative

suspension process under subsections (a)(1) and (b).

(e) In addition to the enforcement powers and duties under

section 211(a) of this act, the enforcement bureau shall

establish an inspection schedule which provides for the

inspection of a premises licensed as a restaurant liquor

establishment or licensed as an eating place establishment for

compliance and issue citations for violations of this act

discovered during the inspection.

Section 6. Section 472(a) of the act is amended and the

section is amended by adding a subsection to read:

Section 472. Local Option.--(a) In any municipality or any

part of a municipality where such municipality is split so that

each part thereof is separated by another municipality, an

election may be held, subject to subsection (c), not oftener

than once in four years, to determine the will of the electors

with respect to the granting of liquor licenses to hotels,

restaurants, resort facilities and clubs, not oftener than once

in four years, to determine the will of the electors with

respect to the granting of liquor licenses to public venues, to

performing arts facilities, to continuing care retirement

communities, to hotels located on property owned by an

accredited college or university, to privately-owned private

golf courses or to privately-owned public golf courses, not

oftener than once in four years, to determine the will of the

electors with respect to the granting of licenses to retail

dispensers of malt and brewed beverages, not oftener than once

in four years, to determine the will of the electors with

respect to granting of licenses to wholesale distributors and

importing distributors, not more than once in two years, to

determine the will of the electors with respect to the granting

of club liquor licenses or club retail dispenser licenses to

incorporated units of national veterans' organizations, not

oftener than once in two years to determine the will of the

electors with respect to the granting of special occasion

permits to qualified organizations, not oftener than once in two

years to determine the will of the electors with respect to

allowing manufacturers to sell for on-premises consumption, not

more than once in four years, to determine the will of the

electors with respect to the establishment, operation and

maintenance by the board of Pennsylvania liquor stores, within

the limits of such municipality or part of a split municipality,

or not more than once in two years, to determine the will of the

electors with respect to the granting of liquor licenses to ski

resort facilities, under the provisions of this act: Provided,

That an election on the question of establishing and operating a

State liquor store shall be initiated only in those

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municipalities, or that part of a split municipality that shall

have voted against the granting of liquor licenses; that an

election on allowing manufacturers to sell for on-premises

consumption shall be initiated only in those municipalities or

parts of municipalities that shall have voted against the

granting of liquor licenses; and that an election on the

question of granting wholesale distributor and importing

distributor licenses shall be initiated only in those

municipalities or parts of split municipalities that shall have

at a previous election voted against the granting of dispenser's

licenses. Whenever electors equal to at least twenty-five per

centum of the highest vote cast for any office in the

municipality or part of a split municipality at the last

preceding general election shall file a petition with the county

board of elections of the county for a referendum on the

question of granting any of said classes of licenses or the

establishment of Pennsylvania liquor stores, the said county

board of elections shall cause a question to be placed on the

ballots or on the voting machine board and submitted at any

election, except a special election. Separate petitions must be

filed for each question to be voted on. Said proceedings shall

be in the manner and subject to the provisions of the election

laws which relate to the signing, filing and adjudication of

nomination petitions[,] with respect to a question to be placed

on the ballot in a primary election, and nomination papers with

respect to a question to be placed on a ballot in municipal or

general election, insofar as such provisions are applicable.

When the question is in respect to the granting of liquor

licenses, it shall be in the following form:

Do you favor the granting of liquor licenses for the

sale of liquor in......................................

of....................................................?

Yes

When the question is in respect to the granting of liquor

licenses to resort facilities in those municipalities that do

not already allow the retail sale of liquor, it shall be in the

following form:

Do you favor the granting of liquor licenses to resort

facilities for the sale of liquor in the...............

of....................................................?

Yes

When the question is in respect to the granting of liquor

licenses to ski resorts in those municipalities that do not

already allow the retail sale of liquor, it shall be in the

following form:

Do you favor the granting of liquor licenses to ski

resort facilities for the sale of liquor in the

..................of ................................?

Yes

When the question is in respect to the granting of restaurant

liquor licenses for use at public venues in those municipalities

that do not already allow the retail sale of liquor, it shall be

in the following form:

Do you favor the granting of liquor licenses to public

2018/90MSP/HB1497A10372 - 19 -

venues for the sale of liquor in the...................

of....................................................?

Yes

When the question is in respect to the granting of restaurant

liquor licenses for use at performing arts facilities in those

municipalities that do not already allow the retail sale of

alcohol, it shall be in the following form:

Do you favor the granting of liquor licenses to

performing arts facilities for the sale of liquor in

the...................................................

of...................................................?

Yes

When the question is in respect to the granting of liquor

licenses for hotels located on property owned by an accredited

college or university in those municipalities that do not

already allow the granting of liquor licenses, it shall be in

the following form:

Do you favor the granting of liquor licenses to hotels

on property owned by an accredited college or university

in the.....................................

of...................................................?

Yes

When the question is in respect to the granting of liquor

licenses, for privately-owned private golf courses, it shall be

in the following form:

Do you favor the granting of liquor licenses for

privately-owned private golf courses for the sale of

liquor in....................by........................

of....................................................?

Yes

When the question is in respect to the granting of liquor

licenses, for privately-owned public golf courses, it shall be

in the following form:

Do you favor the granting of liquor licenses for

privately-owned public golf courses for the sale of

liquor in....................by........................

of....................................................?

Yes

When the question is in respect to the granting of liquor

licenses to continuing care retirement communities in those

municipalities that have not already approved the granting of

liquor licenses, it shall be in the following form:

Do you favor the granting of liquor licenses for

continuing care retirement communities

in...........................by........................

of....................................................?

Yes

When the question is in respect to the granting of licenses

to retail dispensers of malt and brewed beverages, it shall be

in the following form:

Do you favor the granting of malt and brewed beverage

retail dispenser licenses for consumption on premises

where sold in the.....................................

of...................................................?

Yes

When the question is in respect to the granting of licenses

to wholesale distributors of malt or brewed beverages and

importing distributors, it shall be in the following form:

2018/90MSP/HB1497A10372 - 20 -

Do you favor the granting of malt and brewed beverage

wholesale distributor's and importing distributor's

licenses not for consumption on premises where sold in

the...................................................

of....................................................?

Yes

When the question is in respect to the granting of club

liquor licenses to incorporated units of national veterans'

organizations, it shall be in the following form:

Do you favor the granting of club liquor licenses to

incorporated units of national veterans' organizations

in the.................................................

of....................................................?

Yes

When the question is in respect to the granting of club

retail dispenser licenses to incorporated units of national

veterans' organizations, it shall be in the following form:

Do you favor the granting of club retail dispenser

licenses to incorporated units of national veterans'

organizations in the...................................

of....................................................?

Yes

When the question is in respect to the granting of special

occasion permits allowing the sale of liquor by qualified

organizations in municipalities that do not already allow the

retail sale of liquor, it shall be in the following form:

Do you favor the granting of special occasion permits to

allow the sale of liquor by qualified organizations in

the.................................................

of....................................................?

Yes

When the question is in respect to the granting of special

occasion permits allowing the sale of malt or brewed beverages

only by qualified organizations in municipalities that do not

already allow the retail sale of malt or brewed beverages, it

shall be in the following form:

Do you favor the granting of special occasion permits to

allow the sale of malt or brewed beverages only by

qualified organizations in the.........................

of....................................................?

Yes

When the question is in respect to the establishment,

operation and maintenance of Pennsylvania liquor stores it shall

be in the following form:

Do you favor the establishment, operation and

maintenance of Pennsylvania liquor stores in

the...................................................

of...................................................?

Yes

When the question is in respect to the granting of liquor

licenses to an airport authority in those municipalities that do

not already allow the retail sale of liquor, it shall be in the

following form:

Do you favor the granting of liquor licenses to an

airport authority for the sale of liquor in

the...................................................

of...................................................?

Yes

2018/90MSP/HB1497A10372 - 21 -

When the question is in respect to allowing the sale by

manufacturers of alcohol for on-premises consumption in

municipalities that do not already allow the retail sale of

liquor, it shall be in the following form:

Do you favor allowing manufacturers of alcohol to sell

alcohol for on-premises

consumption...........................................

in the................................................

of...................................................?

Yes

In case of a tie vote, the status quo shall obtain. If a

majority of the voting electors on any such question vote "yes,"

then liquor licenses shall be granted by the board to hotels,

restaurants, ski resorts, resort facilities and clubs, or liquor

licenses shall be granted by the board to public venues, to

performing arts facilities, to continuing care retirement

communities, to hotels located on property owned by an

accredited college or university, to privately-owned private

golf courses or to privately-owned public golf courses, or malt

and brewed beverage retail dispenser licenses or wholesale

distributor's and importing distributor's license for the sale

of malt or brewed beverages shall be granted by the board, or

club liquor licenses or club retail dispenser licenses shall be

granted by the board to incorporated units of national veterans'

organizations, or special occasion permits may be issued to

qualified organizations, or the board may establish, operate and

maintain Pennsylvania liquor stores, as the case may be, in such

municipality or part of a split municipality, as provided by

this act; but if a majority of the electors voting on any such

question vote "no," then the board shall have no power to grant

or to renew upon their expiration any licenses of the class so

voted upon in such municipality or part of a split municipality;

or if the negative vote is on the question in respect to the

establishment, operation and maintenance of Pennsylvania liquor

stores, the board shall not open and operate a Pennsylvania

liquor store in such municipality or part of a split

municipality, nor continue to operate a then existing

Pennsylvania liquor store in the municipality or part of a split

municipality for more than two years thereafter or after the

expiration of the term of the lease on the premises occupied by

such store, whichever period is less, unless and until at a

later election a majority of the voting electors vote "yes" on

such question.

* * *

(g) If the electors of a municipality have voted against the

granting of retail liquor licenses, then manufacturers who would

otherwise be authorized to sell alcohol for on-premises

consumption may not do so unless electors of a municipality vote

to allow manufacturers to do so. A manufacturer that began

selling alcohol for on-premises consumption prior to the

effective date of this act, may continue to do so and its

authority to continue to do so shall not be subject to any votes

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taken under this section.

Section 7. Sections 493(2) and 505.2(a) and (b) of the act

are amended to read:

Section 493. Unlawful Acts Relative to Liquor, Malt and

Brewed Beverages and Licensees.--The term "licensee," when used

in this section, shall mean those persons licensed under the

provisions of Article IV, unless the context clearly indicates

otherwise.

It shall be unlawful--

* * *

(2) Purchase or Sale of Liquor or Malt or Brewed Beverages

on Credit; Importing Distributors or Distributors Accepting

Cash. For any licensee, his agent, servant or employe, to sell

or offer to sell or purchase or receive any liquor or malt or

brewed beverages except for cash, excepting credit extended by a

hotel or club to a bona fide guest or member, or by railroad or

pullman companies in dining, club or buffet cars to passengers,

for consumption while enroute, holding authorized credit cards

issued by railroad or railroad credit bureaus or by hotel,

restaurant, retail dispenser eating place, club and public

service licensees, importing distributors or distributors to

customers not possessing a license under this article and

holding credit cards issued in accordance with regulations of

the board or credit cards issued by banking institutions subject

to State or Federal regulation: Provided further, That nothing

herein contained shall be construed to prohibit the use of

checks or drafts drawn on a bank, banking institution, trust

company or similar depository, organized and existing under the

laws of the United States of America or the laws of any state,

territory or possession thereof, in payment for any liquor or

malt or brewed beverages if the purchaser is the payor of the

check or draft and the licensee is the payee: Provided further,

That notwithstanding any other provision of this act to the

contrary, it shall be unlawful for an importing distributor or

distributor to accept cash for payment of any malt or brewed

beverages from anyone possessing a license issued under this

article, except it shall be permissible for the importing

distributor or distributor to accept credit cards, money orders

or cashiers' checks for payment of any malt or brewed beverages

in addition to any other type of payment authorized by the board

from anyone possessing a license under this article.

Notwithstanding any other provision of law to the contrary,

distributors and importing distributors may accept credit cards

for payment of malt or brewed beverages, but they are not

required to accept credit cards. A manufacturer, importing

distributor or distributor that is authorized to deliver alcohol

or malt or brewed beverages may accept a credit card for payment

upon delivery of the alcohol or malt or brewed beverage so long

as the purchaser holds a license issued by the board; the terms

of the sale between the parties must be finalized before the

alcohol or malt or brewed beverages leaves the seller's licensed

2018/90MSP/HB1497A10372 - 23 -

premises. No right of action shall exist to collect any claim

for credit extended contrary to the provisions of this clause.

Nothing herein contained shall prohibit a licensee from

crediting to a purchaser the actual price charged for original

containers returned by the original purchaser as a credit on any

sale, or from refunding to any purchaser the amount paid by such

purchaser for such containers or as a deposit on containers when

title is retained by the vendor, if such original containers

have been returned to the licensee. Nothing herein contained

shall prohibit a manufacturer from extending usual and customary

credit for liquor or malt or brewed beverages sold to customers

or purchasers who live or maintain places of business outside of

the Commonwealth of Pennsylvania, when the liquor or malt or

brewed beverages so sold are actually transported and delivered

to points outside of the Commonwealth: Provided, however, That

as to all transactions affecting malt or brewed beverages to be

resold or consumed within this Commonwealth, every licensee

shall pay and shall require cash deposits on all returnable

original containers and all such cash deposits shall be refunded

upon return of the original containers.

Section 505.2. Limited Wineries.--(a) In the interest of

promoting tourism and recreational development in Pennsylvania,

holders of a limited winery license may:

(1) Produce and sell alcoholic ciders, fermented fruit

beverages, mead, wines and wine coolers, subject to the

exceptions provided under this section, only from an

agricultural commodity grown in Pennsylvania[.], and the

restrictions applicable to on-premise consumption set forth in

section 472.

(2) Sell alcoholic cider, fermented fruit beverages, mead,

wine and wine coolers produced by the limited winery or

purchased in bulk in bond from another Pennsylvania limited

winery on the licensed premises, under such conditions and

regulations as the board may enforce, to the board, to

individuals and to brewery, importing distributor, distributor,

hotel, restaurant, club and public service liquor licensees, and

to Pennsylvania winery licensees: Provided, That a limited

winery shall not, in any calendar year, purchase alcoholic

cider, fermented fruit beverages, mead or wine produced by other

limited wineries in an amount in excess of fifty per centum of

the alcoholic cider, fermented fruit beverage, mead or wine

produced by the purchasing limited winery in the preceding

calendar year. In addition, the holder of a limited winery

license may purchase wine in bottles from another Pennsylvania

limited winery if these wines undergo a second fermentation

process. Such wine may be sold in bottles bearing the purchasing

limited winery's label or the producing limited winery's label.

Such wines, if sold by the board, may be sold by the producing

limited winery to the purchasing limited winery at a price lower

than the price charged by the board.

(2.1) Notwithstanding any other provision of this act or law

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to the contrary, only ship wine to nonlicensees in accordance

with the provisions of section 488. Delivery of wine to holders

of licenses issued by the board as well as delivery of alcoholic

cider, fermented fruit beverages and mead to any purchaser shall

be through the use of vehicles properly registered by the

limited winery licensee or through properly licensed

transporters. A limited winery licensee may accept a credit card

for payment upon delivery so long as the purchaser holds a

license issued by the board; the terms of the sale between the

parties must be finalized before the alcohol leaves the seller's

licensed premises.

(3) Separately or in conjunction with other limited

wineries, sell alcoholic cider, fermented fruit beverages, mead,

wine and wine coolers produced by the limited winery on no more

than five (5) board-approved locations other than the licensed

premises, with no bottling or production requirement at those

additional board-approved locations and under such conditions

and regulations as the board may enforce, to the board, to

individuals and to brewery, hotel, restaurant, club and public

service liquor licensees. If two or more limited wineries apply

to operate an additional board-approved location in conjunction

with each other, the wineries need only have one board-approved

manager for the location, need only pay one application fee and

need not designate specific or distinct areas for each winery's

licensed area. Each limited winery must file an application for

such an additional board-approved location, and such location

shall count as one of the five permitted for each limited

winery. Each limited winery is responsible for keeping only its

own complete records. A limited winery may be cited for a

violation of the recordkeeping requirements of sections 512 and

513 pertaining to its own records only.

(4) At the discretion of the board, obtain a special permit

to participate in alcoholic cider, fermented fruit beverage,

mead, wine and food expositions off the licensed premises. A

special permit shall be issued upon proper application and

payment of a fee of thirty dollars ($30) per day for each day of

permitted use, not to exceed thirty (30) consecutive days. The

total number of days for all the special permits may not exceed

one hundred (100) days in any calendar year. A special permit

shall entitle the holder to engage in the sale by the glass, by

the bottle or in case lots of alcoholic cider, fermented fruit

beverage, mead or wine produced by the permittee under the

authority of a limited winery license. Holders of special

permits may provide tasting samples of wines in individual

portions not to exceed one fluid ounce. Samples at alcoholic

cider, fermented fruit beverage, mead, wine and food expositions

may be sold or offered free of charge. Except as provided

herein, limited wineries utilizing special permits shall be

governed by all applicable provisions of this act as well as by

all applicable regulations or conditions adopted by the board.

For the purposes of this clause, "alcoholic cider, fermented

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fruit beverage, mead, wine and food expositions" are defined as

affairs held indoors or outdoors with the intent of promoting

Pennsylvania products by educating those in attendance of the

availability, nature and quality of Pennsylvania-produced

alcoholic ciders, fermented fruit beverages, mead and wines in

conjunction with suitable food displays, demonstrations and

sales. Alcoholic cider, fermented fruit beverage, mead, wine and

food expositions may also include activities other than

alcoholic cider, fermented fruit beverage, mead, wine and food

displays, including arts and crafts, musical activities,

cultural exhibits, agricultural exhibits and farmers markets.

(4.1) At the discretion of the board, obtain a farmers

market permit. The permit shall entitle the holder to

participate in more than one farmers market at any given time

and an unlimited number throughout the year and sell alcoholic

cider, fermented fruit beverages, mead or wine produced under

the authority of the underlying limited winery license by the

bottle or in case lots. Samples not to exceed one fluid once per

brand of mead or wine may be offered free of charge. A farmers

market permit shall be issued upon proper application and

payment of an annual fee of two hundred fifty dollars ($250). A

permit holder may participate in more than one farmers market at

any given time. Sales by permit holders shall take place during

the standard hours of operation of the farmers market. Written

notice of the date, times and location the permit is to be used

shall be provided by the permit holder to the enforcement bureau

at least two (2) weeks prior to the event. Except as provided in

this subsection, limited wineries utilizing farmers market

permits shall be governed by all applicable provisions of this

act as well as by all applicable regulations adopted by the

board.

(5) Do either of the following:

(i) Apply for and hold a hotel liquor license, a restaurant

liquor license or a malt and brewed beverages retail license to

sell for consumption at the restaurant or limited winery on the

licensed winery premises, liquor, wine and malt or brewed

beverages regardless of the place of manufacture under the same

conditions and regulations as any other hotel liquor license,

restaurant liquor license or malt and brewed beverages retail

license.

(ii) Apply for and hold a restaurant liquor license for use

at one of the additional board-approved locations referenced

under clause (3), as long as such location does not serve as an

additional board-approved location for any other manufacturer.

(6) (i) Secure a permit from the board to allow the holder

of a limited winery license to use up to twenty-five per centum

permitted fruit, not wine, in the current year's production.

Each permit is valid only for the calendar year in which it is

issued.

(ii) The fee for a permit to import and use permitted fruit

shall be in an amount to be determined by the board.

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(iii) The purpose of this section is to increase the

productivity of limited wineries while at the same time

protecting the integrity and unique characteristics of wine

produced from fruit primarily grown in this Commonwealth.

Prevailing climatic conditions have a significant impact on the

character of the fruit. Accordingly, "permitted fruit" shall

mean fruit grown or juice derived from fruit grown within three

hundred fifty (350) miles of the winery.

(iv) The department is authorized to promulgate regulations

requiring the filing of periodic reports by limited wineries to

ensure compliance with the provisions of this section.

(6.1) Sell food for consumption on or off the licensed

premises and at the limited winery's additional board-approved

locations and sell by the glass, at the licensed premises and at

the limited winery's additional board-approved locations, wine,

mead [and], alcoholic ciders and fermented fruit beverages that

may otherwise be sold by the bottle. In addition, the holder of

a limited winery license may sell for consumption on the

licensed premises and at the limited winery's additional board-

approved locations, liquor produced by a licensed distillery or

limited distillery, wine [and], alcoholic cider and fermented

fruit beverages produced by another limited winery and malt or

brewed beverages produced by a licensed brewery. The combined

sales of wine [and], alcoholic cider and fermented fruit

beverages produced by another limited winery, malt or brewed

beverages and liquor may not, on a yearly basis, exceed fifty

per centum of the on-premises sales of the limited winery's own

sales of wine [and], alcoholic cider and fermented fruit

beverages for the preceding calendar year: however, if a limited

winery did not operate for an entire calendar year during the

preceding year, then its combined sales of wine and alcohol

produced by another limited winery, malt or brewed beverages and

liquor may not, on a yearly basis, exceed fifty per centum of

the on-premises sales of the limited winery's own wine [and],

alcoholic cider and fermented fruit beverages for that year.

(6.2) Sell wine- or liquor-scented candles acquired or

produced by the limited winery.

(6.3) Sell alcoholic cider, fermented fruit beverages, mead,

wine and wine coolers only between the hours of nine o'clock

antemeridian and eleven o'clock postmeridian. A limited winery

also may request approval from the board to extend sales hours

in individual locations at other times during the year or beyond

the limits set forth in this clause. The request shall be made

in writing to the board's Office of the Chief Counsel and shall

detail the exact locations where sales hours are proposed to be

extended, the proposed hours and dates of extended operation and

the reason for the proposed extended hours.

(6.4) Store alcoholic cider, fermented fruit beverages,

mead, wine and wine coolers produced by the limited winery at no

more than two (2) board-approved locations other than the

licensed premises and those premises referenced in clause (3)

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pertaining to the five (5) board-approved locations for the sale

of wine, with no bottling or production requirement at those

additional locations and under such conditions and regulations

as the board may enforce. If two (2) or more businesses will

operate out of the same storage facility, the limited winery

must designate specific and distinct areas for its storage. The

limited winery's designated storage area must be secured and no

one other than the licensee and his employees may be allowed

access to the storage area. No board-approved manager will be

necessary for the storage facility. The limited winery must fill

out an application for such an additional board-approved storage

location, and such location shall count as one of the two

permitted for each limited winery. The limited winery is

responsible for keeping only its own complete records. A limited

winery may be cited for a violation of the recordkeeping

requirements of sections 512 and 513 pertaining to its own

records only.

(b) The total production of alcoholic ciders, fermented

fruit beverages, mead, wine and wine coolers by a limited winery

may not exceed two hundred thousand (200,000) gallons per year.

* * *

Section 8. Section 505.4 heading, (b)(1) and (8) and (c)(1)

of the act are amended and the section is amended by adding

subsections to read:

Section 505.4. Limited Distilleries and Distilleries.--* * *

(b) (1) The board may issue a limited distillery license

that will allow the holder thereof to operate a distillery that

shall not exceed production of one hundred thousand (100,000)

gallons of distilled liquor per year. The holder of the license

may manufacture and sell bottled liquors produced on the

licensed premises to the board, to entities licensed by the

board and to the public between the hours of nine o'clock

antemeridian and eleven o'clock postmeridian so long as a

specific code of distilled liquor which is listed for sale as a

stock item by the board in State liquor stores may not be

offered for sale at a licensed limited distillery location at a

price which is lower than that charged by the board and under

such conditions and regulations as the board may enforce. The

holder of a limited distillery license may not sell a product or

a substantially similar product which is listed for sale as a

stock item by the board in State Liquor Stores to a licensee at

a price which is lower than that charged by the board and under

such conditions and regulations as the board may enforce. The

holder of a limited distillery license may also sell wine [and],

alcoholic cider and fermented fruit beverages produced by a

licensed limited winery, liquor produced by a licensed

distillery or limited distillery and malt or brewed beverages

produced by a licensed brewery for on-premises consumption. The

combined sales of wine, malt or brewed beverages and liquor

produced by another licensed distillery or limited distillery

may not, on a yearly basis, exceed fifty per centum of the on-

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premises sales of the limited distillery's own sales of liquor

for the preceding calendar year: however, if a limited

distillery did not operate for an entire calendar year during

the preceding year, then its combined sales of wine, malt or

brewed beverages and liquor produced by another licensed

distillery or limited distillery may not, on a yearly basis,

exceed fifty per centum of the on-premises sales of the limited

distillery's own liquor for that year.

* * *

(8) At the discretion of the board the holder of a limited

distillery license may obtain a special permit to participate in

[alcoholic cider,] liquor and food expositions off the licensed

premises. A special permit shall be issued upon proper

application and payment of a fee of thirty dollars ($30) per day

for each day of permitted use, not to exceed thirty (30)

consecutive days. The total number of days for all the special

permits may not exceed one hundred (100) days in any calendar

year. A special permit shall entitle the holder to engage in the

sale by the glass, by the bottle or in case lots of liquor

produced by the permittee under the authority of a limited

distillery license. Holders of special permits may provide

tasting samples of liquor in individual portions not to exceed

one and one-half (1.5) fluid ounces. Samples at [alcoholic

cider,] liquor and food expositions may be sold or offered free

of charge. Except as provided in this clause, limited

distilleries utilizing special permits shall be governed by all

applicable provisions of this act as well as by all applicable

regulations or conditions adopted by the board. For the purposes

of this clause, ["alcoholic cider, liquor] "liquor and food

expositions" are defined as affairs held indoors or outdoors

with the intent of promoting Pennsylvania products by educating

those in attendance of the availability, nature and quality of

Pennsylvania-produced [alcoholic ciders and] liquors in

conjunction with suitable food displays, demonstrations and

sales. [Alcoholic cider, liquor] Liquor and food expositions may

also include activities other than [alcoholic cider,] liquor and

food displays, including arts and crafts, musical activities,

cultural exhibits, agricultural exhibits and farmers markets.

* * *

section 505 may sell bottled liquors produced on the licensed

premises to the board, to entities licensed by the board and to

the public between the hours of nine o'clock antemeridian and

eleven o'clock postmeridian so long as a specific code of

distilled liquor which is listed for sale as a stock item by the

board in State liquor stores may not be offered for sale at a

licensed distillery location at a price which is lower than that

charged by the board and under such conditions and regulations

as the board may enforce. The holder of a distillery license may

not sell a product or a substantially similar product which is

listed for sale as a stock item by the board in State Liquor

2018/90MSP/HB1497A10372 - 29 -

Stores to a licensee at a price which is lower than that charged

by the board and under such conditions and regulations as the

board may enforce. The holder of a distillery license may also

sell its liquor, wine [and], alcoholic cider and fermented fruit

beverages produced by a licensed limited winery, liquor produced

by a licensed distillery or limited distillery and malt or

brewed beverages produced by a licensed brewery for on-premises

consumption. The combined sales of wine, malt or brewed

beverages and liquor produced by another licensed distillery or

limited distillery may not, on a yearly basis, exceed fifty per

centum of the on-premises sales of the distillery's own sales of

liquor for the preceding calendar year: however, if a distillery

did not operate for an entire calendar year during the preceding

year, then its combined sales of wine, malt or brewed beverages

and liquor produced by another licensed distillery or limited

distillery may not, on a yearly basis, exceed fifty per centum

of the on-premises sales of the distillery's own liquor for that

year.

* * *

(d) Sales for on-premises consumption by distilleries of

historical significance, limited distilleries and distilleries

are subject to the restrictions set forth in section 472.

(e) Aggregate sales to retail licenses by distilleries of

historical significance, limited distilleries and distilleries

may not exceed 50,000 gallons during a calendar year. A license

or permit holder that wishes to acquire liquor produced by a

distillery or limited distillery license holder after the

producer has reached its aggregate 50,000-gallon limit may still

acquire the product if it is available from the board. If a

person holds any interest in more than one distillery of

historical significance, distillery or limited distillery

license, either directly or indirectly, the sales from all such

licenses shall be considered when determining whether the

50,000-gallon limit has been reached.

(f) Delivery of liquor by distilleries of historical

significance, limited distilleries and distilleries shall be

through the use of vehicles properly registered by the licensee

or through properly licensed transporters. A distillery of

historical significance, limited distillery or distillery may

accept a credit card for payment upon delivery so long as the

purchaser holds a license issued by the board; the terms of the

sale between parties must be finalized before the liquor leaves

the seller's licensed premises.

Section 9. Section 1001 of the act is amended to read:

Section 1001. Construction and Applicability.--(a) Except

as provided in subsection (b), unless the context clearly

indicates otherwise, a reference to "malt or brewed beverages"

in a statute shall be construed to include alcoholic cider and

fermented fruit beverages.

(b) Regardless of context, a reference to "malt or brewed

beverages" in Article XX of the act of March 4, 1971 (P.L.6,

2018/90MSP/HB1497A10372 - 30 -

No.2), known as the "Tax Reform Code of 1971," shall be

construed to include alcoholic cider and fermented fruit

beverages.

clearly indicates otherwise, a reference to "wine" in a statute

shall be construed to exclude alcoholic cider and fermented

fruit beverages.

(d) Regardless of context, a reference to "wine" in the act

of December 5, 1933 (Sp.Sess., P.L.38, No.6), known as the

"Spirituous and Vinous Liquor Tax Law," shall be construed to

exclude alcoholic cider and fermented fruit beverages.

Section 10. Repeals are as follows:

(1) The General Assembly finds and declares that the

repeal under paragraph (2) is necessary to effectuate the

addition of section 505.4(e) of the act.

(2) Section 1799.5-E of the act of April 9, 1929

(P.L.343, No.176), known as The Fiscal Code, is repealed.

(3) The General Assembly finds and declares that the

repeal under paragraph (4) is necessary to effectuate the

addition of section 470.4 of the act.

(4) Section 1799.6-E of The Fiscal Code is repealed.

Section 11. This act shall take effect as follows:

(1) The following shall take effect immediately:

(i) This section.

(ii) The amendment of sections 406 and 413 of the

act.

(2) The remainder of this act shall take effect in 30

days.

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