SENATE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY EVERETT, BARRAR, COHEN, D. COSTA, GROVE, HENNESSEY, KORTZ, MANN, MUSTIO, PAYTON, PYLE, REICHLEY, STURLA, TOEPEL, VULAKOVICH, HARHAI, MILLER, SONNEY AND KILLION, JANUARY 26, 2011

SENATOR PIPPY, LAW AND JUSTICE, IN SENATE, AS AMENDED, NOVEMBER 15, 2011   

AN ACT

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

reenacted, "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,"

further providing for distilleries further providing for

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definitions, for authority to issue liquor licenses to

hotels, restaurants and clubs, for sales by liquor licensees

and restrictions, for prohibited interlocking business, for

public venue license, for malt and brewed beverages retail

licenses, for prohibitions against the grant of licenses, for

sales by manufacturers of malt or brewed beverages and

minimum quantities, for distributors' and importing

distributors' restrictions on sales, storage, for retail

dispensers' restrictions on purchases and sales, for brand

registration, for breweries, for licenses not assignable and

transfers, for renewal of licenses and temporary provisions

for licensees in armed service, for responsible alcohol

management, for unlawful acts relative to liquor, alcohol and

liquor licensees, for unlawful acts relative to malt or

brewed beverages and licensees, for hours of operation

relative to manufacturers, importing distributors and

distributors, for unlawful acts relative to liquor, malt and

brewed beverages and licensees, for reporting of worthless

checks, for limited wineries and for distilleries.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 505.4 of the act of April 12, 1951

<--

(P.L.90, No.21), known as the Liquor Code, reenacted and amended

June 29, 1987 (P.L.32, No.14) and added December 8, 2004

(P.L.1810, No.239), is amended to read:

Section 1.  The definitions of "eligible entity" and "public

<--

venue" in section 102 of the act of April 12, 1951 (P.L.90,

No.21), known as the Liquor Code, reenacted and amended June 29,

1987 (P.L.32, No.14), amended June 25, 2010 (P.L.217, No.35) and

June 28, 2011 (P.L.55, No.11), 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:

* * *

"Eligible entity" shall mean a city of the third class, a

hospital, a church, a synagogue, a volunteer fire company, a

volunteer ambulance company, a volunteer rescue squad, a unit of

a nationally chartered club which has been issued a club liquor

license, a club in a city of the third class which has been

issued a club liquor license and which, as of December 31, 2002,

has been in existence for at least 100 years, a library, a

nationally accredited Pennsylvania nonprofit zoological

institution licensed by the United States Department of

Agriculture, a nonprofit agricultural association in existence

for at least ten years, a bona fide sportsmen's club in

existence for at least ten years, a nationally chartered

veterans' organization and any affiliated lodge or subdivision

of such organization, a fraternal benefit society that is

licensed to do business in this Commonwealth and any affiliated

lodge or subdivision of such fraternal benefit society, a museum

operated by a nonprofit corporation in a city of the third class

or township of the first class, a nonprofit corporation engaged

in the performing arts in a city of the third class, borough or

in an incorporated town, an arts council, a nonprofit

corporation that operates an arts facility or museum in a city

of the third class in the county of the fourth class, a

nonprofit organization as defined under section 501(c)(3) of the

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

501(c)(3)) whose purpose is to protect the architectural

heritage of boroughs or a township of the second class and which

has been recognized as such by a municipal resolution, a

nonprofit organization as defined under section 501(c)(3) of the

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

501(c)(3)) conducting a regatta in a city of the second class

with the permit to be used on State park grounds or conducting a

family-oriented celebration as part of Welcome America in a city

of the first class on property leased from that city for more

than fifty years, a nonprofit organization as defined under

section 501(c)(3) of the Internal Revenue Code of 1986 (26

U.S.C. § 501(c)(3)) whose purpose is to raise funds for the

research and treatment of cystic fibrosis, a nonprofit

organization as defined under section 501(c)(3) of the Internal

Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose purpose is to

educate the public on issues dealing with watershed

conservation, a nonprofit organization as defined under section

501(c)(3) of the Internal Revenue Code of 1986 (Public Law

99-514, 26 U.S.C. § 501(c)(3)) whose purpose is to provide

equine assisted activities for children and adults with special

needs, a nonprofit economic development agency in a city of the

second class with the primary function to serve as an economic

generator for the greater southwestern Pennsylvania region by

attracting and supporting film, television and related media

industry projects and coordinating government and business

offices in support of a production, a county tourist promotion

agency as defined in section 3(1) of the act of April 28, 1961

(P.L.111, No.50), known as the "Tourist Promotion Law," and

located in a city of the third class in a county of the fourth

class or located in a township of the second class in a county

of the fifth class, a junior league in a third class county that

is a nonprofit organization as defined under section 501(c)(3)

of the Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3))

that is comprised of women whose purpose is exclusively

educational and charitable in promoting the volunteerism of

women and developing and participating in community projects and

that has been in existence for over seventy years, a nonprofit

organization as defined under section 501(c)(3) of the Internal

Revenue Code of 1986 which is located in counties of the second

class A or of the third class and whose purpose is the education

and promotion of American history, a nonprofit organization as

defined under section 501(c)(6) of the Internal Revenue Code of

1986 whose purpose is to support business and industry, a

brewery which has been issued a license to manufacture malt or

brewed beverages and has been in existence for at least 100

years or a club recognized by Rotary International which is

located in a county of the fourth class and whose purpose is to

provide service to others, to promote high ethical standards and

to advance world understanding, goodwill and peace through its

fellowship of business, professional and community leaders or a

nonprofit organization as defined under section 501(c)(3) of the

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

501(c)(3)) which is located in a borough in a county of the

third class and whose purpose is to promote mushrooms while

supporting local and regional charities, a museum operated by a

not-for-profit corporation in a city of the second class A, a

nonprofit organization as defined under section 501(c)(3) of the

Internal Revenue Code of 1986 which is located in a city of the

second class A and has as its purpose economic and community

development, a nonprofit organization as defined under section

501(c)(3) or (6) of the Internal Revenue Code of 1986 that is

located in a city of the third class in a county of the fifth

class, a nonprofit social service organization defined under

section 501(c)(3) of the Internal Revenue Code of 1986 located

in a county of the third class whose purpose is to serve

individuals and families in that county of the third class, a

nonprofit organization as defined under section 501(c)(3) of the

Internal Revenue Code of 1986 whose main purpose is to

temporarily foster stray and unwanted animals and match them to

suitable permanent homes or a nonprofit organization as defined

under section 501(c)(3) of the Internal Revenue Code of 1986 who

operates either a Main Street Program or Elm Street Program

recognized by the Commonwealth, the National Trust for Historic

Preservation or both or a noncommercial, educational public

radio or television station that is eligible for qualification

under the Corporation for Public Broadcasting, or a nonprofit

organization as defined under section 501(c)(3) of the Internal

Revenue Code of 1986 whose purpose is to promote awareness,

education and research and to provide a support system for

patients with neutropenia and their families through a national

resource network.

* * *

"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," 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, 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).

* * *

"Zoo" shall mean an accredited member of the Association of

Zoos and Aquariums and for purposes of section 412 shall have no

square footage or permanent seating requirements.

Section 2.  Section 401(a) of the act, amended July 6, 2005

(P.L.135, No.39), is amended to read:

Section 401.  Authority to Issue Liquor Licenses to Hotels,

Restaurants and Clubs.--(a)  Subject to the provisions of this

act and regulations promulgated under this act, the board shall

have authority to issue a retail liquor license for any premises

kept or operated by a hotel, restaurant or club and specified in

the license entitling the hotel, restaurant or club to purchase

liquor from a Pennsylvania Liquor Store and to keep on the

premises such liquor and, subject to the provisions of this act

and the regulations made thereunder, to sell the same and also

malt or brewed beverages to guests, patrons or members for

consumption on the hotel, restaurant or club premises. Such

licensees, other than clubs, shall be permitted to sell malt or

brewed beverages for consumption off the premises where sold in

quantities of not more than one hundred ninety-two fluid ounces

in a single sale to one person as provided for in section 407.

Such licenses shall be known as hotel liquor licenses,

restaurant liquor licenses and club liquor licenses,

respectively. [No person who holds, either by appointment or

election, any public office which involves the duty to enforce

any of the penal laws of the United States of America or the

penal laws of the Commonwealth of Pennsylvania or any penal

ordinance or resolution of any political subdivision of this

Commonwealth shall be issued any hotel or restaurant liquor

license, nor shall such a person have any interest, directly or

indirectly, in any such license] No person who holds any public

office that involves the duty to enforce any of the penal laws

of the United States, this Commonwealth or of any political

subdivision of this Commonwealth may have any interest in a

hotel or restaurant liquor license. This prohibition applies to

anyone with arrest authority, including, but not limited to,

United States attorneys, State attorneys general, district

attorneys, sheriffs and police officers. This prohibition shall

also apply to magisterial district justices, judges or any other

individuals who can impose a criminal sentence. This prohibition

does not apply to members of the General Assembly, township

supervisors, city councilpersons, mayors without arrest

authority, county commissioners and any other public official

who does not have the ability to arrest or the ability to impose

a criminal sentence. This section does not apply if the proposed

premises are located outside the jurisdiction of the individual

in question.

* * *

Section 3.  Section 406(a)(3), (e) and (g) of the act,

amended or added December 30, 2003 (P.L.423, No.59) and June 28,

2011 (P.L.55, No.11), are amended to read:

Section 406.  Sales by Liquor Licensees; Restrictions.--(a)

* * *

(3)  Hotel and restaurant liquor licensees, municipal golf

course restaurant liquor licensees and privately-owned public

golf course restaurant licensees may sell liquor and malt or

brewed beverages on Sunday between the hours of eleven o'clock

antemeridian and two o'clock antemeridian Monday upon purchase

of a special permit from the board at an annual 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."]

1929," except a licensee that offers a meal on Sundays prior to

eleven o'clock antemeridian may then begin serving alcohol on

Sundays at nine o'clock antemeridian. Airport restaurant liquor

licensees may sell liquor and malt or brewed beverages on Sunday

between the hours of seven o'clock antemeridian and two o'clock

antemeridian Monday upon purchase of a special permit from the

board at an annual 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."

* * *

(e)  (1)  The holder of a hotel license or the holder of a

restaurant license located in a hotel may allow persons to

transport liquor or malt or brewed beverages from the licensed

portion of the premises to the unlicensed portion of the

premises, so long as the liquor or malt or brewed beverages

remain on the hotel property. In addition, a holder of a

restaurant or club license located on a golf course may sell,

furnish or give liquor or malt or brewed beverages on the

unlicensed portion of the golf course so long as the liquor or

malt or brewed beverages remain on the restaurant, club or golf

course. The holder of a restaurant license located immediately

adjacent to and under the same roof of a bowling center may

allow persons to transport liquor or malt or brewed beverages

from the licensed portion of the premises to the unlicensed

portion of the premises, so long as the liquor or malt or brewed

beverages remain within the bowling center. In addition, the

holder of a hotel license or a restaurant license may allow

persons who have purchased but only partially consumed a bottle

of wine on the premises to remove the bottle from the premises

so long as the bottle was purchased in conjunction with a meal

which was consumed on the premises and so long as the bottle is

resealed. For purposes of this subsection, "wine" shall have the

meaning given to it under section 488(i). For purposes of this

subsection, "meal" shall mean food prepared on the premises,

sufficient to constitute breakfast, lunch or dinner; it shall

not mean a snack, such as pretzels, popcorn, chips or similar

food.

(2)  A holder of a restaurant or club license located on a

golf course may store liquor or malt or brewed beverages in a

permanent facility on the unlicensed portion of the golf course

so long as the liquor or malt or brewed beverages remain on the

restaurant, club or golf course without regard to whether there

is any intervening public thoroughfare.

* * *

(g)  Notwithstanding any other provision of law or

regulation, the holder of a retail license may hold happy hours 

up to four hours per day and up to fourteen hours per week

during which the holder discounts the price of alcoholic

beverages. No discounts may be given between the hours of

midnight and the legal closing time. Notice of all happy hours

shall be visibly posted on the licensed premises seven days

prior to the happy hour. Except as provided in this subsection,

a licensee shall comply with the provisions of 40 Pa. Code §

13.102 (relating to discount pricing practices). Events

conducted under the authority of 40 Pa. Code § 13.102(b) shall

not be counted against the four-hour per day or fourteen-hour

per week limit.

Section 4.  Section 411(e) of the act, amended June 25, 2010

(P.L.217, No.35), is amended to read:

Section 411.  Interlocking Business Prohibited.--* * *

(e)  Except as herein provided, no hotel, restaurant, retail

dispenser or club licensee, and no officer, director or

stockholder, agent or employe of any such licensee shall in any

wise be interested, directly or indirectly, in the ownership or

leasehold of any property or the equipment of any property or

any mortgage lien against the same, used by a distributor,

importing distributor, or by an importer or sacramental wine

licensee, in the conduct of his business; nor shall any hotel,

restaurant, retail dispenser or club licensee, or any officer,

director, stockholder, agent or employe of any such licensee,

either directly or indirectly, lend any moneys, credit, or give

anything of value or the equivalent thereof, to any distributor,

importing distributor, importer or sacramental wine licensee,

for equipping, fitting out, or maintaining and conducting,

either in whole or in part, an establishment used in the conduct

of his business.

The purpose of this section is to require a separation of the

financial and business interests between manufacturers and

holders of hotel or restaurant liquor licenses and, as herein

provided, of club licenses, issued under this article, and no

person shall, by any device whatsoever, directly or indirectly,

evade the provisions of the section. But in view of existing

economic conditions, nothing contained in this section shall be

construed to prohibit the ownership of property or conflicting

interest by a manufacturer of any place occupied by a licensee

under this article after the manufacturer has continuously owned

and had a conflicting interest in such place for a period of at

least five years prior to July eighteenth, one thousand nine

hundred thirty-five: Provided, however, That this clause shall

not prohibit any hotel, restaurant or club liquor licensee from

owning land which is leased to, and the buildings thereon owned

by, a holder of a retail dispenser's license; and nothing in

this clause shall prevent the issuance of a retail dispenser's

license to a lessee of such lands who owns the buildings

thereon: And, provided further, That nothing contained in this

section shall be construed to prohibit any hotel, restaurant,

retail dispenser or club licensee or any officer, director or

stockholder, agent or employe of any such licensee from having a

financial or other interest, directly or indirectly in the

ownership or leasehold of any property or the equipment of any

property or any mortgage lien against same, used, leased by an

importer or sacramental wine licensee for the exclusive purpose

of maintaining commercial offices and on the condition that said

property is not used for the storage or sale of liquor or malt

or brewed beverages in any quantity: And, provided further, That

nothing contained in this section shall prohibit an officer or

member of a licensed privately owned private golf course

catering club from having an interest in a limited winery

license: And, provided further, That nothing contained in this

section shall be construed to prohibit a member of the governing

board of a public authority created under subdivision (n) of

Article XXIII of the act of August 9, 1955 (P.L.323, No.130),

known as "The County Code," from having an interest in a

distributor or importing distributor license notwithstanding the

fact that the public authority has an interest in one or more

retail licenses or acts as a landlord for one or more retail

licenses: And, provided further, That, nothing in this section

may prohibit an employe of a hotel or restaurant licensee from

having an interest in any property used by a limited winery

licensee or in guaranteeing any loans, or lending any moneys,

providing credit or giving anything of value to a limited winery

licensee or its officers, directors and shareholders, provided

that the person also is not a licensed director of or does not

have any interest in or exercise any control over any other

licensed entity that engages in any sales to or from the

licensee: And, provided further, That, notwithstanding any other

provision of this section, an entity may acquire both a

manufacturer's license or a limited winery license and a hotel,

restaurant or retail dispenser license for use at the same

location and more than one location may be so licensed. The

licenses and a person's interest in the licenses or in the

entity holding the licenses shall not be subject to this

section. Provided further, That, a person who is a holder of

five per centum (5%) or less of securities or other interests in

a publicly or privately held domestic or foreign corporation,

partnership, limited liability company or other form of legal

entity owning a restaurant liquor license or retail dispenser's

license shall not be deemed to possess a financial or business

interest and is not subject to the provisions of this section,

provided that the person is not a licensed director of, employe

of or does not have any interest in or exercise any control over

any other licensed entity that engages in any sales to or from  

the restaurant liquor or retail dispenser licensee in which the

person holds the five per centum (5%) or less interest. For

purposes of this subsection, the existence of the interest and

the size of the interest shall be determined pursuant to the

provisions of this act.

Section 5.  Section 412(b) of the act, amended February 21,

2002 (P.L.103, No.10), is amended to read:

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

(b)  An application for a restaurant liquor license under

this section may be made by the owner of the public venue, the

operator of the public venue or by a concessionaire designated

by the governing body of either the owner of the public venue or

the operator. The application and issuance of the license is

subject to sections 403 and 404 unless otherwise stated, except

that private banquets and other events at zoos may be held at

any site within zoo property. The licensing period shall be as

set forth by the board under section 402. The application,

renewal and filing fees shall be as prescribed in section 614-

A(25) of the act of April 9, 1929 (P.L.177, No.175), known as

"The Administrative Code of 1929."

* * *

Section 6.  Section 432(f) of the act, amended November 29,

2006 (P.L.1421, No.155), is amended to read:

Section 432.  Malt and Brewed Beverages Retail Licenses.--* *

*

(f)  Hotel, eating places, or municipal golf course retail

dispenser licensees that offer a meal on Sundays prior to eleven

o'clock antemeridian may sell malt or brewed beverages between

the hours of [eleven] nine o'clock antemeridian on Sunday and

two o'clock antemeridian on Monday upon purchase of a special

permit from the board at an annual 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," which shall be in addition to

any other license fees.

Section 7.  Section 437(d) of the act, is amended to read:

Section 437.  Prohibitions Against the Grant of Licenses.--*

* *

(d)  [No person who holds, either by appointment or election,

any public office which involves the duty to enforce any of the

penal laws of the United States of America or any of the penal

laws of this Commonwealth or any penal ordinance or resolution

of any political subdivision of this Commonwealth shall be

issued any manufacturer's, importing distributor's,

distributor's or retail dispenser's license, nor shall such a

person have any interest, directly or indirectly, in any such

license] No person who holds any public office that involves the

duty to enforce any of the penal laws of the United States, this

Commonwealth or of any political subdivision of this

Commonwealth may have any interest in a manufacturer's,

importing distributor's, distributor's or retail dispenser's

license. This prohibition applies to anyone with arrest

authority, including, but not limited to, United States

attorneys, State attorneys general, district attorneys, sheriffs

and police officers. This prohibition shall also apply to

magisterial district justices, judges or any other individuals

who can impose a criminal sentence. This prohibition does not

apply to members of the General Assembly, township supervisors,

city councilpersons, mayors without arrest authority, county

commissioners and any other public official who does not have

the ability to arrest or the ability to impose a criminal

sentence. This section does not apply if the proposed premises

are located outside the jurisdiction of the individual in

question.

* * *

Section 8.  Section 440 of the act, amended July 17, 2003

(P.L.63, No.15), is amended to read:

Section 440.  Sales by Manufacturers of Malt or Brewed

Beverages; Minimum Quantities.--[No manufacturer shall sell any

malt or brewed beverages for consumption on the premises where

sold, nor sell or deliver any such malt or brewed beverages in

other than original containers approved as to capacity by the

board, nor in quantities of less than a case or original

containers containing sixty-four ounces or more which may be

sold separately; nor shall any manufacturer] A manufacturer may

sell malt or brewed beverages produced and owned by the

manufacturer to individuals on the licensed premises for

consumption on the licensed premises where sold only if it

complies with the conditions and regulations placed upon holders

of brewery licenses under section 446(1). A manufacturer also

may sell any malt or brewed beverages produced and owned by the

manufacturer to individuals on the licensed premises for

consumption off the licensed premises in containers or packages

of unlimited quantity and of any volume. No manufacturer may 

maintain or operate within the Commonwealth any place or places

other than the place or places covered by his or its license

where malt or brewed beverages are sold or where orders are

taken.

Section 9.  Sections 441 and 442 of the act are amended by

adding subsections to read:

Section 441.  Distributors' and Importing Distributors'

Restrictions on Sales, Storage, Etc.--* * *

(i)  Notwithstanding any other provision to the contrary,

when making a sale of malt or brewed beverages to a private

individual, no distributor or importing distributor may be

required to collect the name, address or any other identifying

information of the private individual for the purpose of keeping

a record of the quantity of cases or volume of malt or brewed

beverages purchased.

Section 442.  Retail Dispensers' Restrictions on Purchases

and Sales.--* * *

(g)  Notwithstanding any other provision of law or

regulation, the holder of a retail dispenser license may hold

happy hours up to four hours per day and up to fourteen hours

per week during which the holder discounts the price of

alcoholic beverages. No discounts may be given between the hours

of midnight and the legal closing time. Notice of all happy

hours shall be visibly posted on the licensed premises seven

days prior to the happy hour. Events conducted under the

authority of 40 Pa. Code § 13.102(b) (relating to discount

pricing practices) shall not be counted against the four-hours

per day or fourteen-hours per week.

Section 10.  Section 443(g) of the act, amended June 25, 2010

(P.L.217, No.35), is amended to read:

Section 443.  Interlocking Business Prohibited.--* * *

(g)  The purpose of this section is to require a separation

of the financial and business interests between the various

classes of business regulated by subdivision (B) of this

article, and no person or corporation shall, by any device

whatsoever, directly or indirectly, evade the provisions of this

section. But in view of existing economic conditions, nothing

contained in this section shall be construed to prohibit the

ownership of property or conflicting interest by a malt or

brewed beverage manufacturer of any place occupied by a

distributor, importing distributor or retail dispenser after the

manufacturer has continuously owned and had a conflicting

interest in such place for a period of at least five years prior

to the eighteenth day of July, one thousand nine hundred thirty-

five: Provided, however, That a holder of a manufacturer's

license under section 431(a) who is eligible to operate a

brewery pub under section 446(2) or a limited winery as provided

for under section 505.2 may also hold and operate under a hotel

liquor license, a restaurant liquor license or a malt and brewed

beverages retail license on the manufacturer's or limited

winery's licensed premises. The hotel liquor license or

restaurant liquor license or the malt and brewed beverages

retail license shall be acquired by the manufacturer or limited

winery subject to section 461 and shall satisfy all requirements

for each respective license: And, provided further, That nothing

contained in this section shall be construed to prohibit a

member of the governing board of a public authority created

under subdivision (n) of Article XXIII of the act of August 9,

1955 (P.L.323, No.130), known as "The County Code," from having

an interest in a distributor or importing distributor license

notwithstanding the fact that the public authority has an

interest in one or more retail licenses or acts as a landlord

for one or more retail licenses.

A person who is a holder of five per centum (5%) or less of

securities or other interests in a publicly or privately held

domestic or foreign corporation, partnership, limited liability

company or other form of legal entity owning a restaurant liquor

license or retail dispenser's license shall not be deemed to

possess a financial or business interest and is not subject to

the provisions of this section, provided that the person is not

a licensed director of, employe of or does not have any interest

in or exercise any control over any other licensed entity that

engages in any sales to or from the restaurant liquor or retail

dispenser licensee in which the person holds the five per centum

(5%) or less interest. For purposes of this subsection, the

existence of the interest and the size of the interest shall be

determined pursuant to the provisions of this act.

The term "manufacturer" as used in this section shall include

manufacturers of malt or brewed beverages as defined in this act

and any person manufacturing any malt or brewed beverages

outside of this Commonwealth.

Section 11.  Section 445(b) of the act, amended June 28, 2011

(P.L.55, No.11), is amended to read:

Section 445.  Brand Registration.--* * *

(b)  The board shall employ a malt beverage compliance

officer whose duties shall include reviewing label registration

to ensure compliance with this act and investigating reports of

unregistered brands of malt or brewed beverages being sold by 

licensees and investigation of worthless checks in addition to

any other duties the board shall assign the officer. If the malt

beverage compliance officer finds that a licensee is selling

malt or brewed beverages that are unregistered in this

Commonwealth, he shall give the manufacturer of the malt or

brewed beverages written notice that the manufacturer has ten

days to register the malt or brewed beverages with the board.

During that ten-day period in which the manufacturer has to come

into compliance with brand registration, the unregistered malt

or brewed beverages shall remain on the licensee's premises but

may not be sold. Should the manufacturer fail to register the

malt or brewed beverages with the board within ten days, the

manufacturer shall be required to remove the unregistered malt

or brewed beverages from the licensee's premises and reimburse

the licensee for all unregistered products that cannot be sold

in this Commonwealth. If a malt beverage compliance officer

receives notification that a licensee issued a worthless check,

he shall give the licensee written notice that the licensee has

ten days to honor that check. Should the licensee fail to honor

the check within ten days, the matter will be turned over to the

enforcement bureau for citation.

Section 12.  Section 446 of the act, amended June 30, 1992

(P.L.327, No.66), May 31, 1996 (P.L.312, No.49) and January 6,

2006 (P.L.1, No.1), is amended to read:

Section 446.  Breweries.--(a)  Holders of a brewery license

may:

(1)  Sell malt or brewed beverages produced and owned by the

brewery [on the licensed premises] under such conditions and

regulations as the board may enforce, to individuals for

consumption on the licensed premises in any container or package

of any volume and to hotel, restaurant, club and public service

liquor licensees.

(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 at its brewery pub premises Pennsylvania wines

it has purchased from either the holder of a Pennsylvania

limited winery license or from the board: Provided, however,

That said wines must be consumed at the licensed brewery pub

premises.

(3)  Use brewery storage and distribution facilities for the

purpose of receiving, storing and distributing malt or brewed

beverages manufactured outside this Commonwealth if the

beverages are distributed in this Commonwealth only through

specific importing distributors who shall have first been given

distributing rights for such products in designated geographical

areas through the distribution system required for out-of-State

manufacturers under section 431(b) as well as all other

pertinent sections of this act. The manufacturer of the

beverages must comply with section 444.

(4)  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 brewery pub on the

licensed brewery 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, but must brew at least two hundred fifty barrels per

year. Each holder of a brewery license who receives a hotel

liquor license, a restaurant liquor license or a malt or brewed

beverages retail license to operate a brew pub shall not sell

directly to any person licensed by this act, except if any malt

or brewed beverage is to be distributed in this Commonwealth it

shall be only through specific importing distributors who shall

have first been given distributing rights for such products in

designated geographical areas through the distribution system

required for out-of-State manufacturers under section 431(b) as

well as all other pertinent sections of this act.

(b)  The holder of a brew pub license may obtain an off-

premises catering permit subject to section 493(33) to hold a

catered function off the licensed premises and on otherwise

unlicensed premises where the licensee may sell wine, liquor and

malt or brewed beverages by the glass, open bottle or other

container, and in any mixture, for consumption on those

premises. Functions conducted under the authority of the permit

shall be subject to the following:

(1)  alcohol may be provided only during the days and hours

that the license holder may otherwise sell alcohol;

(2)  all servers at the off premises catered function shall

be in compliance with the responsible alcohol management

provisions under section 471.1;

(3)  each catered function shall last no longer than one day

and not more than fifty catered functions may be held each

calendar year by each license holder for use with a particular

license;

(4)  a catered function shall not be held at a location that

is already subject to the applicant's or another licensee's

license;

(5)  a permit shall not be issued to an applicant whose

license is in safekeeping;

(6)  a permit shall not be issued to a location that is

subject to a pending objection by the director of the Bureau of

Licensing or the board under section 470(a.1);

(7)  a permit shall not be issued to a location that is

subject to a pending license suspension under section 471 or the

one-year prohibition on the issuance or transfer of a license

under section 471(b);

(8)  no alcohol may be taken from the permitted location, but

the applicant may transport alcohol to and from its licensed

premises to the proposed premises; and

(9)  written notice of the date, time and location of the

catered function shall be provided to the local police or if

there is no local police force to the enforcement bureau at

least forty-eight hours in advance of the event.

Section 13.  Section 468 of the act is amended by adding a

subsection to read:

Section 468.  Licenses Not Assignable; Transfers.--* * *

(e)  Board-approved interior connections between licensed and

unlicensed premises shall not be greater than ten feet wide.

Section 14.  Section 470(a) of the act, amended December 9,

2002 (P.L.1653, No.212), is amended to read:

Section 470.  Renewal of Licenses; Temporary Provisions for

Licensees in Armed Service.--(a)  All applications for renewal

of licenses under the provisions of this article shall be filed

with tax clearance from the Department of Revenue and the

Department of Labor and Industry and requisite license and

filing fees at least sixty days before the expiration date of

same: Provided, however, That the board, in its discretion, may

accept nunc pro tunc a renewal application filed less than sixty

days before the expiration date of the license with the required

fees, upon reasonable cause shown and the payment of an

additional filing fee of one hundred dollars ($100.00) for late

filing: And provided further, That except where the failure to

file a renewal application on or before the expiration date has

created a license quota vacancy after said expiration date which

has been filled by the issuance of a new license, after such

expiration date, but before the board has received a renewal

application nunc pro tunc within the time prescribed herein the

board, in its discretion, may, after hearing, accept a renewal

application filed within two years after the expiration date of

the license with the required fees upon the payment of an

additional filing fee of two hundred fifty dollars ($250.00) for

late filing. Where any such renewal application is filed less

than sixty days before the expiration date, or subsequent to the

expiration date, no license shall issue upon the filing of the

renewal application until the matter is finally determined by

the board and if an appeal is taken from the board's action the

courts shall not order the issuance of the renewal license until

final determination of the matter by the courts. The board may

enter into an agreement with the applicant concerning additional

restrictions on the license in question. If the board and the

applicant enter into such an agreement, such agreement shall be

binding on the applicant. Failure by the applicant to adhere to

the agreement will be sufficient cause to form the basis for a

citation under section 471 and for the nonrenewal of the license

under this section. A renewal application will not be considered

filed unless accompanied by the requisite filing and license

fees and any additional filing fee required by this section.

Unless the board shall have given ten days' previous notice to

the applicant of objections to the renewal of his license, based

upon violation by the licensee or his servants, agents or

employes of any of the laws of the Commonwealth or regulations

of the board relating to the manufacture, transportation, use,

storage, importation, possession or sale of liquors, alcohol or

malt or brewed beverages, or the conduct of a licensed

establishment, or unless the applicant has by his own act become

a person of ill repute, or unless the premises do not meet the

requirements of this act or the regulations of the board, the

license of a licensee shall be renewed. Notwithstanding any

other provision of this act, a noise violation shall not be the

sole basis for objection by the board to the renewal of a

license unless the licensee has received six prior adjudicated

noise citations within a twenty-four-month period.

* * *

Section 15.  Section 471.1 of the act is amended by adding a

subsection to read:

Section 471.1.  Responsible Alcohol Management.--* * *

(g)  Unless successfully completed prior to appointment, a

manager appointed by any restaurant, eating place retail

dispenser, hotel, club, limited distillery licensee or

distributor licensee shall be required to complete the

manager/owner training under subsection (c) within one hundred

eighty days of approval of appointment by the board.

Section 16.  Sections 491(12) and 492(9) and (12) of the act

are amended to read:

Section 491.  Unlawful Acts Relative to Liquor, Alcohol and

Liquor Licensees.--

It shall be unlawful--

* * *

(12)  Delivery of Liquor by Certain Licensees. For a liquor

licensee permitted to deliver liquor, to make any deliveries

except in his own vehicles bearing his name, address and license

number on each side in [letters not smaller than four inches in

height] a size identifiable by Liquor Control Enforcement, or in

the vehicle of another person duly authorized to transport

liquor within this Commonwealth.

* * *

Section 492.  Unlawful Acts Relative to Malt or Brewed

Beverages and Licensees.--

It shall be unlawful--

* * *

(9)  Transportation of Malt or Brewed Beverages by Licensee.

For a malt or brewed beverage licensee, to deliver or transport

any malt or brewed beverages, excepting in vehicles bearing the

name and address and license number of such licensee painted or

affixed on each side of such vehicle in [letters no smaller than

four inches in height] a size identifiable by Liquor Control

Enforcement.

* * *

(12)  Distributors and Importing Distributors Engaging in

Other Business. For any distributor or importing distributor, or

his servants, agents or employes, without the approval of the

board, and then only in accordance with board regulations, to

engage in any other business whatsoever, except the business of

distributing malt or brewed beverages[.], except that the sale

of the following goods shall be permitted on the licensed

premises of a distributor or importing distributor:

(i)  Any book, magazine or other publication related to malt

or brewed beverages.

(ii)  Any equipment, ingredients or other supplies necessary

for the unlicensed manufacture of malt or brewed beverages as

described in paragraph (1), commonly known as "homebrewing."

* * *

Section 17.  Section 492.1(c) of the act, amended January 6,

2006 (P.L.1, No.1), is amended to read:

Section 492.1.  Hours of Operation Relative to Manufacturers,

Importing Distributors and Distributors.--* * *

(c)  In addition to the hours authorized under subsections

(a) and (b), manufacturers, importing distributors and

distributors, upon purchasing a permit from the board at an

annual fee of one hundred dollars ($100), may sell malt or

brewed beverages to persons not licensed under this act or to a

holder of a special occasion permit on Sunday between the hours

of [noon] nine o'clock antemeridian and [five] nine o'clock

postmeridian.

* * *

Section 18.  Section 493(12) and (26) of the act, amended

February 21, 2002 (P.L.103, No.10), are amended and the section

is amended by adding a paragraph 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--

* * *

(12)  Failure to Have Records on Premises. For any liquor

licensee, or any importing distributor, distributor or retail

dispenser, to fail to keep [on the licensed premises] for a

period of at least two years complete and truthful records

covering the operation of his licensed business, particularly

showing the date of all purchases of liquor and malt or brewed

beverages, the actual price paid therefor, and the name of the

vendor, including State Store receipts, or for any licensee, his

servants, agents or employes, to refuse the board or an

authorized employe of the board or the enforcement bureau access

thereto or the opportunity to make copies of the same when the

request is made during business hours. The records from the most

recent six-month period must be maintained on the licensed

premises. Records for the remainder of the two-year period may

be kept off the licensed premises so long as the records are

returned to the licensed premises within twenty-four hours of a

request by the board or enforcement bureau. A licensee may

remove the records for the most recent six-month period from the

licensed premises only for a lawful business purpose provided

that they are returned to the premises when that business is

completed. Prior to removing the records from the premises, the

licensee must notify the enforcement bureau and identify the

person who will be in possession of them, the location where

they will be held, the reason the records need to be removed

from the premises and when the licensee expects to have the

records returned.

* * *

(26)  Worthless Checks. For any retail liquor licensee or any

retail dispenser, distributor or importing distributor, to make,

draw, utter, issue or deliver, or cause to be made, drawn,

uttered, issued or delivered, any check, draft or similar order,

for the payment of money in payment for any purchase of malt or

brewed beverages, when such retail liquor licensee, retail

dispenser, distributor or importing distributor, has not

sufficient funds in, or credit with, such bank, banking

institution, trust company or other depository, for the payment

of such check. Any person who is a licensee under the provisions

of this article, who shall receive in payment for malt or brewed

beverages sold by him any check, draft or similar order for the

payment of money, which is subsequently dishonored by the bank,

banking institution, trust company or other depository, upon

which drawn, for any reason whatsoever, shall, within five days

of receipt of notice of such dishonor, notify by certified mail

the person who presented the said worthless check, draft or

similar order and the malt beverage compliance officer for the

board. If the violation of this clause [is the first such

violation by the licensee that calendar year] involving a check,

draft or similar order from the purchaser to the seller [and if

the check, draft or similar order] is subsequently honored

within ten days from the day it was made, drawn, uttered, issued

or delivered, then the [enforcement bureau shall issue an

administrative warning in lieu of] malt beverage compliance

officer shall not turn the matter over to the enforcement bureau

for a citation.

* * *

(34)  Noise. A licensee may not use or permit to be used

inside or outside of the licensed premises a loudspeaker or

similar device whereby the sound of music or other

entertainment, or the advertisement thereof, can be heard at an

unreasonable level beyond the licensee's property line.

Section 19.  Section 496 of the act, amended February 21,

2002 (P.L.103, No.10), is amended to read:

Section 496.  Reporting of Worthless Checks.--Any person who

is a licensee under the provisions of this article who shall

receive in payment for malt or brewed beverages sold by him any

check, draft or similar order, for the payment of money, which

is subsequently dishonored by the bank, banking institution,

trust company or other depository, upon which drawn, for any

reason whatsoever, and which violates the provisions of section

493(26), shall, within [twenty] five days of receipt of notice

of such dishonor, notify the malt beverage compliance officer of

the board thereof. Such notification to the [board] malt

beverage compliance office shall be in such manner and form as

the board shall direct.

Section 20.  Section 505.2(a)(4) of the act, amended July 16,

2007 (P.L.107, No.34), is amended to read:

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

promoting tourism and recreational development in Pennsylvania,

holders of a limited winery license may:

* * *

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

to participate in alcoholic cider, 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 [five (5)]

thirty (30) consecutive days. The total number of days for all

the special permits may not exceed [forty (40)] 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 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, 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, 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 and wines in

conjunction with suitable food displays, demonstrations and

sales. Alcoholic cider, wine and food expositions may also

include activities other than alcoholic cider, wine and food

displays, including arts and crafts, musical activities,

cultural exhibits, agricultural exhibits and farmers markets.

* * *

Section 21.  Section 505.4 of the act, added December 8, 2004

(P.L.1810, No.239), is amended to read:

Section 505.4.  Distilleries.--(a)  The board may issue a

distillery of historical significance license to any distillery

which was established prior to January 1, 1875. The holder of

the license may manufacture and sell liquor produced on the

licensed premises to the board, to entities licensed by the

board and to the public under such conditions and regulations as

the board may enforce. Production at the distillery of

historical significance shall be limited to an amount not to

exceed twenty thousand (20,000) gallons per year. The distillery

does not need to establish continuous operation since January 1,

1875, in order to qualify for a license under this section.

(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 forty thousand (40,000) 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 nine 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.

(2)  The (2)  (i)  The holder of a limited distillery license

<--

may, separately or in conjunction with other limited distillery

licensees, sell bottled liquors produced by the distillery at no

more than two (2) 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 entities licensed by the board.

(ii)  If two or more limited distilleries apply to operate an

<--