THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SANTONI, TAYLOR, FRANKEL, BRENNAN, GIBBONS, HARHAI, HARKINS, KORTZ, KOTIK, LONGIETTI, STURLA, DALEY, PAYNE AND M. O'BRIEN, JUNE 4, 2012

REFERRED TO COMMITTEE ON LIQUOR CONTROL, JUNE 4, 2012  

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,"

providing for special permits for breweries.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 446 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 amended December 22, 2011 (P.L.530,

No.113), 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 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 produced by

a licensed limited winery and malt or brewed beverages produced

by the brewery 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.

(c)  (1)  Holders of a brewery license may obtain a special

permit to participate in malt or brewed beverages and food

expositions off the licensed premises. A special permit shall be

issued upon proper application and payment of a fee of thirty

dollars ($30.00) per day for each day of permitted use, not to

exceed thirty consecutive days. The total number of days for all

the special permits may not exceed one hundred 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 malt or brewed beverages produced by the permittee under the

authority of its brewery license. Holders of special permits may

provide tasting samples of malt or brewed beverages in

individual portions not to exceed four fluid ounces. Samples at

malt or brewed beverages and food expositions may be sold or

offered free of charge. Except as provided herein, breweries

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 purposes of this clause,

"malt or brewed beverages and food expositions" are defined as

affairs held indoors or outdoors with the intent of educating

those in attendance of the availability, nature and quality of

malt or brewed beverages in conjunction with suitable food

displays, demonstrations and sales. Malt or brewed beverages and

food expositions may also include activities other than malt or

brewed beverages and food displays, including arts and crafts,

musical activities, cultural exhibits, agricultural exhibits and

farmers markets.

(2)  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 malt or brewed beverages

produced under the authority of the underlying brewery license

by the bottle or in case lots. Samples not to exceed four fluid

ounces per brand of malt or brewed beverages 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 ($250.00). 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 at 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, breweries

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.

The term "farmers market" as used in this section shall

include any building, structure or other place:

(i)  owned, leased or otherwise in the possession of a

person, municipal corporation or public or private organization;

(ii)  used or intended to be used by two or more farmers or

an association of farmers, who are certified by the Department

of Agriculture to participate in the Farmers Market Nutrition

Program subject to 7 CFR Pt. 249 (relating to Senior Farmers'

Market Nutrition Program (SFMNP)), for the purpose of selling

agricultural commodities produced in this Commonwealth directly

to consumers;

(iii)  which is physically located within this Commonwealth;

and

(iv)  which is not open for business more than twelve hours

each day.

(3)  The special permit, as well as the farmers market permit

authorized by this section, are only available to breweries who

produce less than twenty-five thousand barrels per year. Only

malt or brewed beverages for which the brewery is responsible

for paying the malt beverage tax shall be considered in

calculating the total number of barrels produced each year. All

brands of malt or brewed beverages sold or provided under the

authority of the special permit as well as the farmers market

permit must be registered as set forth by this act.

Section 2.  This act shall take effect in 60 days.