Regular Session 2015-2016 House Bill 1420 P.N. 1977

PRINTER'S NO. 1977

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1420

Session of

2015

INTRODUCED BY SCHWEYER, MUSTIO, P. COSTA, ROZZI, MILLARD,

YOUNGBLOOD, THOMAS, GROVE, SCHLOSSBERG, SCHREIBER, BARBIN,

COHEN AND GIBBONS, JUNE 28, 2015

REFERRED TO COMMITTEE ON LIQUOR CONTROL, JUNE 28, 2015

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;

and, in distilleries, wineries, bonded warehouses, bailees

for hire and transporters for hire, further providing for

limited wineries.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The definition of "malt or brewed beverages" 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 June 18, 1998 (P.L.664, No.86), is amended

and the section is amended by adding a definition to read:

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

unless the context clearly indicates otherwise, shall have the

meanings ascribed to them in this section:

* * *

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

ale, porter or similar fermented malt beverage containing one-

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 eighteen 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.

Section 2. 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) and

December 22, 2011 (P.L.530, No.113), 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

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produced by the limited winery or purchased in bulk in bond from

another Pennsylvania limited winery on the licensed premises,

under such conditions and regulations as the board may enforce,

to the board, to individuals and to brewery, importing

distributor, distributor, hotel, restaurant, club and public

service liquor licensees, and to Pennsylvania winery licensees:

Provided, That a limited winery shall not, in any calendar year,

purchase alcoholic cider, 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.

(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

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designate specific or distinct areas for each winery's licensed

area. Each limited winery must file an application for such an

additional board-approved location, and such location shall

count as one of the five permitted for each limited winery. Each

limited winery is responsible for keeping only its own complete

records. A limited winery may be cited for a violation of the

recordkeeping requirements of sections 512 and 513 pertaining to

its own records only.

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

to participate in alcoholic cider, 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

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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

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 alcoholic

cider, 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) 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

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licensed winery premises, liquor, wine and malt or brewed

beverages regardless of the place of manufacture under the same

conditions and regulations as any other hotel liquor license,

restaurant liquor license or malt and brewed beverages retail

license.

(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, only

wine, mead and alcoholic ciders that may otherwise be sold by

the bottle.

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

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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)

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

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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'

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 3. This act shall take effect in 60 days.

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