Regular Session 2015-2016 House Bill 1196 P.N. 4132

PRIOR PRINTER'S NOS. 1571, 1726, 1858,

3353, 3666, 3697, 4090

PRINTER'S NO. 4132

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1196

Session of

2015

INTRODUCED BY PETRI, MAY 13, 2015

AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES,

OCTOBER 25, 2016

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," in

preliminary provisions, further providing for definitions; in

Pennsylvania Liquor Control Board, further providing for

general powers of board; in licenses and regulations and

liquor, alcohol and malt and brewed beverages, further

providing for sales by liquor licensees and restrictions, for

wine auction permits, for interlocking business prohibited,

for public venue license, for wine expanded permits, for malt

and brewed beverages manufacturers', distributors' and

importing distributors' licenses, for brand registration and

for breweries, providing for shipment of malt or brewed

beverages and further providing FOR LICENSES NOT ASSIGNABLE

AND TRANSFERS, for local option and for unlawful acts

relative to liquor, malt and brewed beverages and licensees;

and, in distilleries, wineries, bonded warehouses, bailees

for hire and transporters for hire, further providing for

limited wineries and for distilleries.; AND, IN DISPOSITION

<--<--

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OF MONEYS COLLECTED UNDER PROVISIONS OF ACT, FURTHER

PROVIDING FOR MONEYS PAID INTO THE STATE STORES FUND FOR USE

OF THE COMMONWEALTH.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The definitions of "alcoholic cider,"

"distributor," "eligible entity," "importing distributor," "malt

or brewed beverages," "mug club" and "zoo" 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) and amended

or added May 31, 1996 (P.L.312, No.49), June 18, 1998 (P.L.664,

No.86), December 22, 2011 (P.L.530, No.113) and June 8, 2016

(P.L.273, No.39), are amended and the section is amended by

adding definitions 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 [three hundred ninety-two

one thousandths of a gram per one hundred milliliters and

flavors] six and four tenths grams per liter, produced through

alcoholic fermentation of any fruit or fruit juice, 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.

* * *

"Distributor" shall mean any person licensed by the board to

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engage in the purchase only from Pennsylvania manufacturers and

from importing distributors and the resale of malt or brewed

beverages, except to importing distributors and distributors.[,

in the original sealed containers as prepared for the market by

the manufacturer at the place of manufacture, but not for

consumption on the premises where sold, and in quantities of not

less than a case or original containers containing one hundred

twenty-eight ounces or more which may be sold separately.]

* * *

"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 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, a nonprofit corporation

engaged in the performing arts, an arts council, a nonprofit

corporation that operates an arts facility or museum, 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

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heritage of a municipality and which has been recognized as such

by a resolution of the municipality, 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 2 of the act of July 4, 2008 (P.L.621, No.50), known as

the "Tourism Promotion Act," a junior league 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

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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 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 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)) 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

20150HB1196PN4132 - 5 -

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, a nonprofit radio station that is a member

of the National Public Radio network, a nonprofit public

television station that is a member of the Pennsylvania Public

Television Network 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, a nonprofit

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

Revenue Code of 1986 whose main purpose is to stimulate

community development by facilitating residential and retail

growth in a city of the second class located in a county of the

second class or a nonprofit community development corporation

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

of 1986 that serves an adjoining borough and township in a

county of the second class and whose main purpose is to

facilitate commercial development and foster neighborhood

stabilization, a nonprofit organization as defined under section

501(c)(3) of the Internal Revenue Code of 1986 whose purpose is

to provide young people with a program to build character, to

teach the responsibilities of citizenship and to develop

personal fitness with a goal of creating future leaders, a

nonprofit as defined in section 501(c)(3) of the Internal

Revenue Code of 1986 whose main purpose is to assist children

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and their families who are facing financial hardship due to the

death of a parent, a nonprofit as defined under section 501(c)

(3) of the Internal Revenue Code of 1986 whose purpose is to

allocate funds for research to expedite a cure achromatopsia, a

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

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

first class, was organized in 1995 as a community development

corporation to promote health, safety and welfare of the

residents, businesses and institutions of a neighborhood of a

city of the first class, and whose works include public

promotions, neighborhood improvement projects and commercial

corridor improvements, including a business improvement

district, or a nonprofit organization as defined under section

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

responsible for providing services to members of the armed

forces of the United States and relief to disaster victims in

the United States and abroad, or any neighborhood improvement

district management association as defined in section 3 of the

act of December 20, 2000 (P.L.949, No.130), known as the

"Neighborhood Improvement District Act," that has been

established as a 501(c)(3) nonprofit organization under section

501(c)(3) of the Internal Revenue Code of 1986, a nonprofit

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

Revenue Code of 1986 located in a city of the first class whose

purpose is to support initiatives to enrich the lives of

children, teens and families especially those in need, to reach

their full potential as productive and responsible citizens and

has been in existence for at least seventy-five years[.], or a

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

Internal Revenue Code of 1986 located in a city of the second

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class and incorporated as a nonprofit in 1982 that offers adult

education and family literacy, or a nonprofit organization as

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

1986 located in a city of the third class and county of the

sixth class, whose purpose is primary and secondary education

and educational ministry of the Diocese of Erie, or a nonprofit

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

Revenue Code located in a county of the fourth class that had a

population between 142,000 and 144,000 based on the 2010

Decennial Census of the Bureau of the Census and provides

rewards for information that leads to the arrest of individuals

that may have committed a crime.

* * *

"Growler" shall mean a refillable container for malt or

brewed beverages that can be resealed.

* * *

"Importing distributor" shall mean any person licensed by the

board to engage in the purchase from manufacturers and other

persons located outside this Commonwealth and from persons

licensed as manufacturers of malt or brewed beverages and

importing distributors under this act, and the resale of malt or

brewed beverages [in the original sealed containers as prepared

for the market by the manufacturer at the place of manufacture,

but not for consumption on the premises where sold, and in

quantities of not less than a case or original containers

containing one hundred twenty-eight ounces or more which may be

sold separately].

* * *

"Malt or Brewed Beverages" shall mean any beer, lager beer,

ale, porter or similar fermented malt beverage containing one-

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half of one per centum or more of alcohol by volume, by whatever

name such beverage may be called, and shall mean alcoholic cider

and mead.

* * *

"Mead" shall mean an alcoholic beverage produced by

fermenting a solution of at least fifty-one per centum honey,

water and other agricultural products and containing not more

than eight and one-half per centum alcohol by volume and sold or

offered for sale as mead 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.

* * *

"Mug club" shall mean a group organized by a retail licensee

or a brewery whose members are entitled to discounted malt or

brewed beverages. Membership shall be by written application and

the licensee must maintain a written list of active members as

part of its records. [Members shall pay] Licensees may charge an

annual fee as well as a renewal fee [as set by the licensee.

Membership shall, at a minimum, entitle the member to a mug,

glass or similar container and said container must be used when

the member is served any discounted malt or brewed

beverages]. No discounted malt or brewed beverages may be

provided between midnight and seven o' clock antemeridian.

* * *

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

Zoos and Aquariums or the Zoological Association of America and

for purposes of section 412 shall have no square footage or

permanent seating requirements.

Section 2. Sections 207(m) and (n) and 305(a) and (j) of the

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act, amended or added June 8, 2016 (P.L.273, No.39), are amended

to read:

Section 207. General Powers of Board.--Under this act, the

board shall have the power and its duty shall be:

* * *

(m) The following shall apply:

(1) Notwithstanding subsection (b), the board may

establish and implement a customer relations management

program for the purpose of offering incentives, such as

coupons or discounts on certain products, to unlicensed

customers of the board.

(2) The names and addresses of individual consumers who

participate in a customer relations management program or

purchase products from the board, as well as any records or

information that would disclose the personal purchase choices

of individual consumers, shall not be sold or otherwise made

available to the public under any circumstances, including in

response to a request made in accordance with the act of

February 14, 2008 (P.L.6, No.3), known as the "Right-to-Know

Law."

(n) Notwithstanding the act of December 20, 2015 (P.L.497,

No.90), known as the [Taxpayer-Funded] "Taxpayer-funded

Advertising Transparency [Act,] act," any expenditure for media

advertising made by the board shall not be subject to any

requirement that the media advertising include any statement

identifying the fund from which the expenditure was made, nor

any statement that the media advertising was paid for with

Pennsylvania taxpayer dollars.

Section 305. Sales by Pennsylvania Liquor Stores.--(a) The

board shall in its discretion determine where and what classes,

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varieties and brands of liquor and alcohol it shall make

available to the public and where such liquor and alcohol will

be sold. Every Pennsylvania Liquor Store shall be authorized to

sell combination packages. If a person desires to purchase a

class, variety or brand of liquor or alcohol not currently

available from the board, he or she may place a special order

for such item [so long as the order is for two or more bottles].

A supplier of a special order may not refuse an order from a

customer placing an order for one bottle of the item and may

assess a surcharge on the order if the supplier otherwise

requires a minimum quantity purchase. The board may require a

reasonable deposit from the purchaser as a condition for

accepting the order. The customer shall be notified immediately

upon the arrival of the goods.

In computing the retail price of such special orders for

liquor or alcohol, the board shall not include the cost of

freight or shipping before applying a mark-up that is equal to

ten per centum of the cost of the product and taxes but shall

add the freight or shipping charges to the price after the mark-

up and taxes have been applied. In addition to the ten per

centum mark-up, the board shall impose handling fees on special

orders which come to rest at a store, in the same manner that it

imposes them on the other alcohol that it sells.

A licensed importer or a licensed vendor may place special

orders on behalf of customers and may deliver the orders to

customers. The orders do not need to come to rest at a store,

but delivery may not occur until payment for the order has been

forwarded to the board and the board has authorized the delivery

of the order. A handling fee may not be assessed by the board on

an order delivered directly to a customer. Liability for special

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orders that do not come to rest at a store, shall, until the

order is delivered to the customer, remain with the licensed

importer or licensed vendor that placed the order on behalf of

the customer. The board shall, by January 1, 2017, implement a

procedure for processing special orders which do not come to

rest at a store. The board may continue to accept special orders

at its stores even after the procedure is implemented.

Unless the customer pays for and accepts delivery of any such

special order within ten days after notice of arrival, the store

may place it in stock for general sale and the customer's

deposit shall be forfeited.

* * *

(j) A Pennsylvania Liquor Store may continue to sell

alcoholic cider and mead within the Pennsylvania Liquor Store's

inventory after the effective date of this section until the

alcoholic cider and mead within the Pennsylvania Liquor Store's

current inventory is depleted. The board may not purchase

additional alcoholic cider and mead after the effective date of

this section.

* * *

Section 3. (Reserved).

Section 4. (Reserved).

Section 5. Section 406(a)(3) of the act, amended June 8,

2016 (P.L.273, No.39), is 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] nine

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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."

[Notwithstanding this provision, a licensee holding such a

permit may begin selling liquor and malt or brewed beverages on

Sunday between the hours of nine o'clock antemeridian and eleven

o'clock antemeridian provided that the licensee offers a meal

beginning at nine o'clock antemeridian.] Airport restaurant

liquor licensees may sell liquor and malt or brewed beverages on

Sunday between the hours of five 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."

* * *

Section 6. Section 408.12 of the act, amended or added July

1, 1994 (P.L.402, No.61) and June 8, 2016 (P.L.273, No.39), is

amended to read:

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

20150HB1196PN4132 - 13 -

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;

(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"; [or]

(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 20 years;

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.

(b) Subject to clause (1) of section 493 of this act, such

wine and spirits auction permit shall authorize the permittee to

sell, by auction, wine and spirits by the bottle or case to any

20150HB1196PN4132 - 14 -

person on any day for which the permit is issued, provided,

however, that such permit shall only be issued in any city,

borough, incorporated town or township in which the sale of

liquor and/or malt or brewed beverages has been approved by the

electorate. Any wine and spirits purchased under this section

shall not be consumed at the place of purchase.

for the number of days stated in the permit.

(d) Wine and spirits auction permits shall only be issued

for use at an event which is used by the permittee as a means of

raising funds for its operation.

(e) The hours during which the holder of a wine and spirits

auction permit may sell wine and spirits shall be limited to the

hours set forth in section 406 of this act which are applicable

to hotel and restaurant licensees, provided, however, that wine

and spirits auction permittees may sell wine and spirits on

Sunday between the hours of seven o'clock antemeridian and until

two o'clock antemeridian Monday.

(f) Wine and spirits auction permits may be issued for sales

on premises which are either licensed or unlicensed under this

act.

(g) Any wine and spirits sold under this section shall be

purchased from a Pennsylvania Liquor Store, a Pennsylvania

limited winery, limited distillery or any seller authorized to

sell wine or spirits by the bottle or case in this Commonwealth

or shall be donated by a person who is neither a licensee nor a

permittee who has legally acquired the wine or spirits and

legally possesses it in this Commonwealth.

(h) If any wine or spirits sold under this section is

purchased from a seller other than a Pennsylvania Liquor Store

20150HB1196PN4132 - 15 -

or a Pennsylvania limited winery or limited distillery, the

permittee shall provide thirty days' notice to the board of its

intent to purchase such wine or spirits. The notice shall

include a description of the wine or spirits to be purchased,

the quantity to be purchased, the name of the seller and any

other information which the board may require. The permittee

shall comply with all board regulations regarding taxes and

fees.

(i) The permittee shall be responsible for paying to the

board an amount equal to all taxes which would have been paid on

such wine or spirits if it had been purchased from a

Pennsylvania Liquor Store, together with a processing fee to be

determined by the board.

(j) As a condition of the permit, the permittee shall not

broadcast by way of radio or television or disseminate by print

media nor cause the broadcast by way of radio, television or

dissemination by the print media of the price of any wine or

spirits sold or to be sold under this section.

(k) Any person selling wine or spirits in violation of this

section shall, upon summary conviction, be sentenced to pay a

fine of two hundred fifty dollars ($250) for the first offense

and a fine of five hundred dollars ($500) for each subsequent

offense. This fine shall be in addition to any other penalty

imposed by law for the illegal sale of liquor or malt or brewed

beverages.

(l) "Auction," as used in this section, shall mean the offer

to sell wine and spirits by the permittee to the members of an

audience congregated for the purpose of making bids for the

purchase of the wine and spirits in an effort by the permittee

to advance the amount of the bids to obtain the highest or most

20150HB1196PN4132 - 16 -

favorable offer.

Section 7. Section 411(e) of the act, amended June 8, 2016

(P.L.273, No.39), 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

20150HB1196PN4132 - 17 -

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], or any officer, director or stockholder of any such

licensee, from owning land or buildings which are leased to a

holder of a retail dispenser's license, a distillery license or

a limited distillery license: 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

20150HB1196PN4132 - 18 -

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 an officer 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. And,

provided further, That, notwithstanding any other provision of

this section, an entity licensed as a limited winery may hold

and operate [under] a restaurant liquor license at one of its

additional, board-approved locations instead of at its primary

location where manufacturing occurs. 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%)] ten per centum

(10%) 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] retail license

shall not be deemed to possess a financial interest and is not

20150HB1196PN4132 - 19 -

subject to the provisions of this section, provided that the

person is not an officer 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] retail licensee in which the person

holds the [five per centum (5%)] ten per centum (10%) or less

interest.

* * *

Section 8. Section 412(f) of the act, amended February 21,

2002 (P.L.103, No.10), December 9, 2002 (P.L.1653, No.212) and

December 22, 2011 (P.L.530, No.113), is amended to read:

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 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.

(2) [Sales of alcoholic beverages before, during and after

all professional and amateur athletic events on the premises

20150HB1196PN4132 - 20 -

shall be limited to sales of malt or brewed beverages in

shatterproof containers.] Sales of alcoholic beverages before,

during and after professional and amateur athletic events,

performing arts events or other entertainment events may consist

of liquor or malt or brewed beverages in shatterproof

containers. Sales during trade shows, conventions, banquets or

at other events, or sales made in the club seats or at a

restaurant facility, may consist of liquor or malt or brewed

beverages in any type of container; however, any liquor or malt

or brewed beverages sold in the club seats or restaurant

facility must remain in the club seating level or restaurant

facility. For purposes of this section, a club seat is any

seating located on the designated club seating level and

partitioned from general seating by a wall, divider, partial

wall or railing. The club seating level must not be accessible

by the general public. Sales at zoos during private banquets and

other events may be at any site within zoo property and may

consist of any type of alcohol in any type of container. The

board's records shall clearly delineate where the sale of liquor

or malt or brewed beverages in any type of container may occur.

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

consumption are prohibited.

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

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

the quota restrictions of section 461; (iv) the provisions of

section 493(10) except as they relate to lewd, immoral or

improper entertainment; (v) the prohibition against minors

frequenting as described in section 493(14) and (vi) the cost

and total display area limitations of section 493(20)(i). In

addition, licenses issued under this section shall not be

20150HB1196PN4132 - 21 -

subject to the provisions defining "restaurant" in section 102.

Section 9. Section 415(a)(2) and (9), (b) and (e)(3) and (4)

of the act, added June 8, 2016 (P.L.273, No.39), are amended to

read:

Section 415. Wine Expanded Permits.--(a) * * *

(2) Nothing in this section may affect the ability of an

existing licensee to operate within the scope of its current

license as authorized by this act, except that no sales of wine

for off-premises consumption may take place by a wine expanded

permit holder after eleven o'clock postmeridian of any day until

the licensee's permitted hours of operation under section 406 of

the next day, including Sundays if the licensee has a permit

authorized under [sections 406(a)(3) and 432(f)] section 406(a)

(3).

* * *

(9) A sale of wine by a wine expanded permit holder shall be

made through a register, which malt or brewed beverages and

restaurant foods sales are made on the licensed premises, which

is well designated with signage, which is staffed at all times

when patrons are on the licensed premises, which is staffed by a

sales clerk who is at least eighteen years of age and has been

trained under section 471.1 and which utilizes a transaction

scan device for the sale. The sale of wine may not occur at a

point of sale where the customer scans the customer's own

purchases.

(b) The application and renewal fee for a wine expanded

permit shall be as follows:

(1) For a wine expanded permit issued to licensees, an

initial application fee of two thousand dollars ($2,000).

(2) An annual renewal fee equal to two per centum of the

20150HB1196PN4132 - 22 -

total cost of wine purchased from the board for off-premises

consumption.

* * *

(e) * * *

(3) A wine expanded permit holder may, when filing its

required returns under Article II of the Tax Reform Code of

1971, request a [refund] credit of any taxes paid in accordance

with paragraph (1) for wine sold for off-premises consumption

and for which taxes were remitted to the department under

paragraph (2). [The request for a refund shall include the

original receipt from a Pennsylvania Liquor Store showing the

amount of taxes paid under paragraph (1) for which the taxpayer

is requesting a refund.

(4) The department shall refund the amount of taxes paid to

a Pennsylvania Liquor Store by a wine expanded permit holder

under paragraph (1) for which the taxpayer remitted taxes

imposed under paragraph (2).] The department may promulgate

rules or regulations and prescribe forms as may be necessary to

implement the provisions of this subsection.

* * *

Section 10. Section 431(b) and (d)(2) of the act, amended

June 8, 2016 (P.L.273, No.39), are reenacted and amended to

read:

Section 431. Malt and Brewed Beverages Manufacturers',

Distributors' and Importing Distributors' Licenses.--* * *

(b) The board shall issue to any reputable person who

applies therefor, and pays the license fee hereinafter

prescribed, a distributor's or importing distributor's license

for the place which such person desires to maintain for the sale

of malt or brewed beverages, not for consumption on the premises

20150HB1196PN4132 - 23 -

where sold, and in quantities of not less than a case or

original containers containing one hundred twenty-eight ounces

or more which may be sold separately as prepared for the market

by the manufacturer at the place of manufacture. In addition, a

distributor license holder may sell malt or brewed beverages in

any amount to a person not licensed by the board for off-

premises consumption. The sales shall not be required to be in

the package configuration designated by the manufacturer and may

be sold in refillable growlers. The board shall have the

discretion to refuse a license to any person or to any

corporation, partnership or association if such person, or any

officer or director of such corporation, or any member or

partner of such partnership or association shall have been

convicted or found guilty of a felony within a period of five

years immediately preceding the date of application for the said

license: And provided further, That, in the case of any new

license or the transfer of any license to a new location, the

board may, in its discretion, grant or refuse such new license

or transfer if such place proposed to be licensed is within

three hundred feet of any church, hospital, charitable

institution, school or public playground, or if such new license

or transfer is applied for a place which is within two hundred

feet of any other premises which is licensed by the board: And

provided further, That the board shall refuse any application

for a new license or the transfer of any license to a new

location if, in the board's opinion, such new license or

transfer would be detrimental to the welfare, health, peace and

morals of the inhabitants of the neighborhood within a radius of

five hundred feet of the place proposed to be licensed. The

board shall not license the area where liquid fuels or oil is

20150HB1196PN4132 - 24 -

sold. No sales of liquid fuels or oil may be made from a

licensee's licensed premises. A licensed premises may not have

an interior connection with a location that sells liquid fuels

or oil unless it first receives permission from the board for

the interior connection. The approval shall be required

regardless of whether the licensee or another party is the

entity selling the liquid fuels or oil. 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 section 470. If the board enters into an agreement with an

applicant concerning additional restrictions, those restrictions

shall be binding on subsequent holders of the license until the

license is transferred to a new location or until the board

enters into a subsequent agreement removing those restrictions.

If the application in question involves a location previously

licensed by the board, then any restrictions imposed by the

board on the previous license at that location shall be binding

on the applicant unless the board enters into a new agreement

rescinding those restrictions. The board shall require notice to

be posted on the property or premises upon which the licensee or

proposed licensee will engage in sales of malt or brewed

beverages. This notice shall be similar to the notice required

of hotel, restaurant and club liquor licensees.

Except as hereinafter provided, such license shall authorize

the holder thereof to sell or deliver malt or brewed beverages

in quantities above specified anywhere within the Commonwealth

20150HB1196PN4132 - 25 -

of Pennsylvania, which, in the case of distributors, have been

purchased only from persons licensed under this act as

manufacturers or importing distributors, and in the case of

importing distributors, have been purchased from manufacturers

or persons outside this Commonwealth engaged in the legal sale

of malt or brewed beverages or from manufacturers or importing

distributors licensed under this article. In the case of an

importing distributor, the holder of such a license shall be

authorized to store and repackage malt or brewed beverages owned

by a manufacturer at a segregated portion of a warehouse or

other storage facility authorized by section 441(d) and operated

by the importing distributor within its appointed territory and

deliver such beverages to another importing distributor who has

been granted distribution rights by the manufacturer as provided

herein. The importing distributor shall be permitted to receive

a fee from the manufacturer for any related storage, repackaging

or delivery services. In the case of a bailee for hire hired by

a manufacturer, the holder of such a permit shall be authorized:

to receive, store and repackage malt or brewed beverages

produced by that manufacturer for sale by that manufacturer to

importing distributors to whom that manufacturer has given

distribution rights pursuant to this subsection or to purchasers

outside this Commonwealth for delivery outside this

Commonwealth; or to ship to that manufacturer's storage

facilities outside this Commonwealth. The bailee for hire shall

be permitted to receive a fee from the manufacturer for any

related storage, repackaging or delivery services. The bailee

for hire shall, as required in Article V of this act, keep

complete and accurate records of all transactions, inventory,

receipts and shipments and make all records and the licensed

20150HB1196PN4132 - 26 -

areas available for inspection by the board and for the

Pennsylvania State Police, Bureau of Liquor Control Enforcement,

during normal business hours.

Each out of State manufacturer of malt or brewed beverages

whose products are sold and delivered in this Commonwealth shall

give distributing rights for such products in designated

geographical areas to specific importing distributors, and such

importing distributor shall not sell or deliver malt or brewed

beverages manufactured by the out of State manufacturer to any

person issued a license under the provisions of this act whose

licensed premises are not located within the geographical area

for which he has been given distributing rights by such

manufacturer. In addition, the holder of a distributor license

may not sell or deliver malt or brewed beverages to any licensee

whose licensed premises is located within the designated

geographical area granted to an importing distributor other than

the importing distributor that sold the malt or brewed beverages

to the distributor. If the licensee purchasing the malt or

brewed beverages from the distributor license holder holds

multiple licenses or operates at more than one location, then

the malt or brewed beverages may not be consumed or sold at

licensed premises located within the designated geographical

area granted to an importing distributor other than the

importing distributor that sold the malt or brewed beverages to

the distributor. Should a licensee accept the delivery of [such]

malt or brewed beverages or transfer malt or brewed beverages in

violation of this section, said licensee shall be subject to a

suspension of his license for at least thirty days: Provided,

That the importing distributor holding such distributing rights

for such product shall not sell or deliver the same to another

20150HB1196PN4132 - 27 -

importing distributor without first having entered into a

written agreement with the said secondary importing distributor

setting forth the terms and conditions under which such products

are to be resold within the territory granted to the primary

importing distributor by the manufacturer.

When a Pennsylvania manufacturer of malt or brewed beverages

licensed under this article names or constitutes a distributor

or importing distributor as the primary or original supplier of

his product, he shall also designate the specific geographical

area for which the said distributor or importing distributor is

given distributing rights, and such distributor or importing

distributor shall not sell or deliver the products of such

manufacturer to any person issued a license under the provisions

of this act whose licensed premises are not located within the

geographical area for which distributing rights have been given

to the distributor and importing distributor by the said

manufacturer. In addition, the holder of a distributor license

may not sell or deliver malt or brewed beverages to a licensee

whose licensed premises is located within the designated

geographical area granted to an importing distributor other than

the importing distributor that sold the malt or brewed beverages

to the distributor. If the licensee purchasing the malt or

brewed beverages from the distributor license holder holds

multiple licenses or operates at more than one location, the

malt or brewed beverages may not be consumed or sold at licensed

premises located within the designated geographical area granted

to an importing distributor other than the importing distributor

that sold the malt or brewed beverages to the distributor. If a

licensee accepts the delivery of malt or brewed beverages or

transfers malt or brewed beverages in violation of this section,

20150HB1196PN4132 - 28 -

the licensee shall be subject to suspension of his license for

at least thirty days: Provided, That the importing distributor

holding such distributing rights for such product shall not sell

or deliver the same to another importing distributor without

first having entered into a written agreement with the said

secondary importing distributor setting forth the terms and

conditions under which such products are to be resold within the

territory granted to the primary importing distributor by the

manufacturer. Nothing herein contained shall be construed to

prevent any manufacturer from authorizing the importing

distributor holding the distributing rights for a designated

geographical area from selling the products of such manufacturer

to another importing distributor also holding distributing

rights from the same manufacturer for another geographical area,

providing such authority be contained in writing and a copy

thereof be given to each of the importing distributors so

affected.

(d) * * *

(2) After January 1, 1980, no manufacturer shall enter into

any agreement with more than one distributor or importing

distributor for the purpose of establishing more than one

agreement for designated brand or brands of malt or brewed

beverages in any one territory. Each franchise territory which

is granted by a manufacturer shall be geographically contiguous

or in counties which are contiguous with one another. All

importing distributors shall maintain sufficient records to

evidence compliance of this section. With regard to any

territorial distribution authority granted to an importing

distributor by a manufacturer of malt or brewed beverages after

January 1, 1996, the records shall establish that each and every

20150HB1196PN4132 - 29 -

case of a brand of malt or brewed beverages for which the

importing distributor is assigned was sold, resold, stored,

delivered or transported by the importing distributor, either

from a point or to a point with the assigned geographically

contiguous territory or in counties which are contiguous with

one another, to any person or persons, whether such person or

persons are licensed by this act or not licensed by this act.

* * *

Section 10.1. Section 445 of the act is amended by adding a

subsection to read:

Section 445. Brand Registration.--* * *

wholesale, and any person selling at retail malt or brewed

beverages that were not sold at wholesale, shall report to the

Pennsylvania Liquor Control Board the volume of such packaged

and draft malt or brewed beverages sold. The report, in the form

and manner determined by the board, shall be made for each

calendar month no later than sixty days after the end of each

calendar month and shall show product volumes, broken down by

brewer. All volumes shall be reported in thirty-one-gallon

barrel equivalents, regardless of package size. The board shall,

within fourteen days of the receipt of the report, place the

reports on the Internet in a manner accessible to the general

public. The board shall maintain the reports on the Internet in

a manner accessible to the general public for a period of at

least two years and shall archive the reports for a period of at

least ten years.

Section 11. Section 446(a) of the act, amended June 8, 2016

(P.L.273, No.39), is amended to read:

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

20150HB1196PN4132 - 30 -

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 wines] wines and

alcoholic cider produced by the holder of a limited winery

license [or], malt or brewed beverages produced by a

manufacturer licensed by the board and liquor produced by a

[licensed] 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 [brewery pub] 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.

(3) Use brewery storage and distribution facilities for the

20150HB1196PN4132 - 31 -

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.

* * *

Section 11.1. The act is amended by adding a section to

read:

20150HB1196PN4132 - 32 -

Section 448. MONTHLY Shipment of Malt or Brewed Beverages.--

(a) The OUT-OF-STATE shipment of malt or brewed beverages to

residents of this Commonwealth shall be governed by this

section.

(b) Notwithstanding any other provision of this act or law,

a person licensed by the board or another state or country as a

manufacturer WHOLESALER OR RETAILER of malt or brewed beverages

and who obtains a malt or brewed beverage shipper license as

provided for in this section may ship up to 192 ONE HUNDRED

NINETY-TWO ounces in a month of any malt or brewed beverage on

the order of any resident of this Commonwealth who is at least

twenty-one (21) years of age for the resident's personal use and

not for resale. NO MORE THAN NINETY-SIX OUNCES OF A SPECIFIC

REGISTERED OR UNREGISTERED BRAND OF MALT OR BREWED BEVERAGES MAY

BE SHIPPED TO ANY ONE (1) RESIDENT DURING A CALENDAR YEAR.

shipper license, the board shall require an applicant to:

(1) File an application with the board.

(2) Pay a registration fee of two hundred fifty dollars

($250).

(3) Provide to the board a true copy of the applicant's

current alcoholic beverage license issued by the board or

another state or country.

(4) Provide documentation which evidences that the applicant

has obtained a sales tax license from the Department of Revenue.

(5) Provide the board with any other information that the

board deems necessary and appropriate.

(d) A direct malt or brewed shipper shall do all of the

following:

(1) Report to the board each year the total of malt or

20150HB1196PN4132 - 33 -

<--

<--<--

<--

brewed beverages shipped to residents of this Commonwealth in

the preceding calendar year.

(2) Permit the board, the enforcement bureau or the

Secretary of Revenue, or their designated representatives, to

perform an audit of the malt or brewed beverage shipper's

records upon request.

(3) Be deemed to have submitted to the jurisdiction of the

board, any other State agency and the courts of this

Commonwealth for purposes of enforcement of this section and any

related laws, rules or regulations.

(4) Require proof of age of the recipient, in a manner or

format approved by the board, before malt or brewed beverages

are shipped to a resident of this Commonwealth.

(5) Ensure that all boxes or exterior containers of malt or

brewed beverages shipped directly to a resident of this

Commonwealth are conspicuously labeled with the words "CONTAINS

ALCOHOL: SIGNATURE OF PERSON 21 YEARS OF AGE OR OLDER REQUIRED

FOR DELIVERY."

(6) Pay to the Department of Revenue all taxes due on sales

to residents of this Commonwealth. The amount of the taxes shall

be calculated as if the sales were in this Commonwealth at the

locations where delivery was made. The malt or brewed beverages

delivered under this subsection shall be subject to only the

following:

(i) The sales and use tax imposed by section 202 and Article

II-B of the act of March 4, 1971 (P.L.6, No.2), known as the

"Tax Reform Code of 1971."

(ii) The sales and use tax imposed by Article XXXI-B of the

act of July 28, 1953 (P.L.723, No.230), known as the "Second

Class County Code ."

20150HB1196PN4132 - 34 -

(iii) The sales and use tax imposed by the act of June 5,

1991 (P.L.9, No.6), known as the "Pennsylvania Intergovernmental

Cooperation Authority Act for Cities of the First Class ."

(iv) The malt beverage tax imposed by Article XX of the "Tax

Reform Code of 1971."

(7) Annually renew its license by paying a renewal fee of

two hundred fifty dollars ($250).

(e) Any person who resells malt or brewed beverages obtained

under this section commits a misdemeanor of the second degree. A

person convicted of selling or offering to sell any malt or

brewed beverage in violation of this section shall, in addition

to any other penalty prescribed by law, be sentenced to pay a

fine of four dollars ($4) per fluid ounce for each container of

malt or brewed beverage found on the premises where the sale was

made or attempted. The amount of fine per container shall be

based on the capacity of the container when full, whether or not

the container is full at the time of sale or attempted sale.

Each malt or brewed beverage found on the premises shall be

confiscated.

(g) The board may promulgate rules and regulations as are

necessary to implement and enforce the provisions of this

section.

(h) The board shall submit annual reports to the

Appropriations Committee and the Law and Justice Committee of

the Senate and to the Appropriations Committee and the Liquor

Control Committee of the House of Representatives summarizing

the number of direct shipper licenses issued by the board and

the quantity of malt or brewed beverages sold under this

section.

(i) Delivery shall be by a licensed transporter for hire or

20150HB1196PN4132 - 35 -

<--

by the manufacturer . The licensed transporter for hire shall:

(1) keep records as required under section 512 pertaining to

the direct shipment of malt or brewed beverages; and

(2) permit the board and the enforcement bureau, or their

designated representatives, to inspect the records under section

513.

(j) Malt or brewed beverages sold under this section shall

not be subject to:

(1) the provisions of section 431 that require a

manufacturer to grant distribution rights to an importing

distributor for each brand of malt or brewed beverages that it

sells; or

(2) the brand registration requirements of section 445.

(k) Malt or brewed beverages sold and delivered under this

section shall not be subject to any existing or future

distributing rights agreement between the manufacturer and an

importing distributor or distributor.

(l) Nothing under this section shall preclude a licensed

manufacturer from selling and delivering malt or brewed

beverages to both non-licensed and licensed persons if the

sales and delivery are otherwise authorized by this act and are

made in conformity with the authorizing provisions of this act.

EXCEPT FOR A SHIPMENT EXPRESSLY AUTHORIZED UNDER SUBSECTION (B),

NOTHING UNDER THIS SECTION MAY BE CONSTRUED AS ALTERING ANY

EXISTING OR FUTURE DISTRIBUTING RIGHTS AGREEMENT BETWEEN A

MANUFACTURER AND AN IMPORTING DISTRIBUTOR OR DISTRIBUTOR.

SECTION 11.2. SECTION 468(E) OF THE ACT, ADDED DECEMBER 22,

2011 (P.L.530, NO.113), IS AMENDED TO READ:

SECTION 468. LICENSES NOT ASSIGNABLE; TRANSFERS.--* * *

(E) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, [THE]

20150HB1196PN4132 - 36 -

<--

DIRECTIVE OR REGULATION TO THE CONTRARY, THE FOLLOWING SHALL

APPLY:

(1) THE BOARD MAY NOT APPROVE AN INTERIOR CONNECTION

THAT IS GREATER THAN TEN FEET WIDE BETWEEN A LICENSED

BUSINESS AND ANOTHER BUSINESS.

(2) THE BOARD SHALL HAVE NO AUTHORITY TO REQUIRE AN

EXTERIOR ENTRANCE TO A LICENSED PREMISES AS A CONDITION FOR

APPROVING A LICENSE OR APPROVING A RENEWAL APPLICATION OF A

LICENSE IN INSTANCES WHEN HOURS OF OPERATION FOR THE LICENSED

PREMISES DO NOT EXCEED THE HOURS OF OPERATION FOR THE

UNLICENSED PREMISES FOR WHICH THE BOARD HAS APPROVED AN

INTERIOR CONNECTION.

(3) THIS SUBSECTION SHALL NOT PROHIBIT THE BOARD FROM

APPROVING A RENEWAL APPLICATION OF A LICENSE, EVEN IF THE

LICENSED BUSINESS HAS AN INTERIOR CONNECTION THAT IS GREATER

THAN TEN FEET WIDE TO AN UNLICENSED BUSINESS, IF THE BOARD

HAD APPROVED THE INTERIOR CONNECTION PRIOR TO THE EFFECTIVE

DATE OF THIS SUBSECTION.

Section 11.2 11.3. Section 472(a) of the act, amended June

8, 2016 (P.L.273, No.39), is amended 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

20150HB1196PN4132 - 37 -

<--<--

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 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 municipalities, or

that part of a split municipality 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

20150HB1196PN4132 - 38 -

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. 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,

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:

20150HB1196PN4132 - 39 -

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

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:

20150HB1196PN4132 - 40 -

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:

Do you favor the granting of malt and brewed beverage

20150HB1196PN4132 - 41 -

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

20150HB1196PN4132 - 42 -

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

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

20150HB1196PN4132 - 43 -

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.

* * *

Section 12. (Reserved).

Section 13. Section 493(6) of the act is reenacted and

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

20150HB1196PN4132 - 44 -

provisions of Article IV, unless the context clearly indicates

otherwise.

It shall be unlawful--

* * *

(6) Brand or Trade Name on Spigot. For any licensee, his

agents, servants or employes, to furnish or serve any malt or

brewed beverages from any faucet, spigot or other dispensing

apparatus, unless the trade name or brand of the product served

shall appear in full sight of the customer [and in legible

lettering upon such faucet, spigot or dispensing apparatus].

* * *

Section 14. Section 505.2 of the act, amended December 8,

2004 (P.L.1810, No.239), July 16, 2007 (P.L.107, No.34), June

25, 2010 (P.L.217, No.35), June 28, 2011 (P.L.55, No.11),

December 22, 2011 (P.L.530, No.113) and June 8, 2016 (P.L.273,

No.39), 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:

(1) Produce alcoholic ciders, mead, wines and wine coolers,

subject to the exceptions provided under this section, only from

an agricultural commodity grown in Pennsylvania.

(2) Sell alcoholic cider, 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,

20150HB1196PN4132 - 45 -

purchase alcoholic cider, mead or wine produced by other limited

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

alcoholic cider, 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

to the contrary, only ship wine in accordance with the

provisions of section 488.

(3) Separately or in conjunction with other limited

wineries, sell alcoholic cider, 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

20150HB1196PN4132 - 46 -

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, 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, 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, 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, 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, mead and

wines in conjunction with suitable food displays, demonstrations

and sales. Alcoholic cider, mead, wine and food expositions may

also include activities other than alcoholic cider, mead, wine

20150HB1196PN4132 - 47 -

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, 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

20150HB1196PN4132 - 48 -

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.

(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 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

20150HB1196PN4132 - 49 -

winery's additional board-approved locations, liquor produced by

a licensed distillery or limited distillery, wine and alcoholic

cider produced by another limited winery and malt or brewed

beverages produced by a licensed brewery. The combined sales of

wine and alcoholic cider 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 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 for that year.

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

produced by the limited winery.

(6.3) Sell alcoholic cider, 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, 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) pertaining to the five (5)

20150HB1196PN4132 - 50 -

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, mead, wine and

wine coolers by a limited winery may not exceed two hundred

thousand (200,000) gallons per year.

"Agricultural commodity" shall include any of the following:

agricultural, apicultural, horticultural, silvicultural and

viticultural commodities.

"Farmers market" shall include any building, structure or

other place:

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

person, municipal corporation or public or private organization;

(2) used or intended to be used by two or more farmers or an

association of farmers, who are certified by the Department of

Agriculture of the Commonwealth to participate in the Farmers'

20150HB1196PN4132 - 51 -

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;

(3) which is physically located within this Commonwealth;

and

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

each day.

Section 15. Section 505.4(b)(1) and (c) of the act, amended

June 8, 2016 (P.L.273, No.39), are amended to read:

Section 505.4. 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 [wines]

20150HB1196PN4132 - 52 -

wine and alcoholic cider produced by a licensed limited winery

[or], 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 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.

* * *

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

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

by the board and under such conditions and regulations as the

20150HB1196PN4132 - 53 -

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

sell [wines] its liquor, wine and alcoholic cider produced by a

licensed limited winery [or], 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.

(2) The holder of a distillery license as issued under

section 505 may provide tasting samples of liquor that in total

do not exceed one and one-half (1.5) fluid ounces. Samples may

be sold or provided free of charge between the hours of nine

o'clock antemeridian and eleven o'clock postmeridian.

SECTION 16. SECTION 802 OF THE ACT IS AMENDED BY ADDING A

SUBSECTION TO READ:

SECTION 802. MONEYS PAID INTO THE STATE STORES FUND FOR USE

OF THE COMMONWEALTH.--* * *

(H) ALL MONEYS COLLECTED UNDER SECTIONS 416, 432(H) AND

470.3 OF THIS ACT SHALL BE TRANSFERRED FROM THE STATE STORES

FUND TO THE GENERAL FUND ON A QUARTERLY BASIS.

Section 16 17. This act shall take effect in 60 days.

20150HB1196PN4132 - 54 -

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