Regular Session 2021-2022 House Bill 1615 P.N. 3365

SENATE AMENDED

PRIOR PRINTER'S NOS. 1789, 2308, 2990

PRINTER'S NO. 3365

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1615

Session of

2021

INTRODUCED BY TOPPER, JUNE 11, 2021

AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JULY 7, 2022

AN ACT

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

act relating to alcoholic liquors, alcohol and malt and

brewed beverages; amending, revising, consolidating and

changing the laws relating thereto; regulating and

restricting the manufacture, purchase, sale, possession,

consumption, importation, transportation, furnishing, holding

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

liquors, alcohol and malt and brewed beverages and the

persons engaged or employed therein; defining the powers and

duties of the Pennsylvania Liquor Control Board; providing

for the establishment and operation of State liquor stores,

for the payment of certain license fees to the respective

municipalities and townships, for the abatement of certain

nuisances and, in certain cases, for search and seizure

without warrant; prescribing penalties and forfeitures;

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

licenses and regulations and liquor, alcohol and malt and

brewed beverages, further providing for breweries, FOR

RENEWAL OF LICENSES AND TEMPORARY PROVISIONS FOR LICENSEES IN

ARMED SERVICE AND FOR RIGHTS OF MUNICIPALITIES PRESERVED.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 446(a)(1), (2) and (3) of the act of

April 12, 1951 (P.L.90, No.21), known as the Liquor Code, are

amended and subsection (a) is amended by adding a paragraph to

read:

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

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may:

(1) Sell malt or brewed beverages [produced at the location

and owned by the brewery] as provided in this section 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. Malt] The following

shall apply AS FOLLOWS :

(i) Malt or brewed beverages produced [for the holder of a

brewery license under a contract brewing agreement with an out-

of-State manufacturer may be sold to a nonlicensee for on-

premises or off-premises consumption, except that sales to a

licensee must be distributed as provided under section 431(b).]

by a brewery at the brewery location or under a contract brewing

agreement or alternating proprietorship with an in-State

manufacturer may be sold by the brewery to nonlicensees for on-

premises or off-premises consumption and to licensees who are

authorized to resell malt or brewed beverages. Sales to

licensees under this paragraph shall comply with the provisions

of this act. Malt or brewed beverages produced for the brewery

under a contract brewing agreement or alternating proprietorship

with an out-of-State manufacturer may only be distributed as

provided under paragraph (3).

(ii) A brewery located in a second-class city with retail

sales prior to June 1, 2017, may sell malt or brewed beverages

produced under a contract brewing agreement with an in-state or

out-of-State manufacturer to nonlicensees for on-premises or

off-premises consumption. If the brewery uses storage locations

granted to the brewery under section 431(a.2) for distribution

or retail sales, the brewery may only sell malt or brewed

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beverages as provided under paragraph (3).

(II) A BREWERY WITH A CONTRACT BREWING AGREEMENT WITH AN

OUT-OF-STATE MANUFACTURER PRIOR TO THE EFFECTIVE DATE OF THIS

PARAGRAPH MAY SELL MALT OR BREWED BEVERAGES TO NONLICENSEES FOR

ON-PREMISES OR OFF-PREMISES CONSUMPTION. THESE SALES ARE IN

ADDITION TO THE SALES AUTHORIZED BY THIS PARAGRAPH AND ARE NOT

SUBJECT TO THE DISTRIBUTION REQUIREMENTS SET FORTH IN PARAGRAPH

(3). IF THE BREWERY USES STORAGE LOCATIONS GRANTED TO THE

BREWERY UNDER SECTION 431(A.2) FOR DISTRIBUTION OR RETAIL SALES

BEYOND THOSE STORAGE LOCATIONS ALREADY USED FOR DISTRIBUTION OR

RETAIL SALES PRIOR TO THE EFFECTIVE DATE OF THIS PARAGRAPH, THE

BREWERY MAY ONLY SELL MALT OR BREWED BEVERAGES AS PROVIDED UNDER

PARAGRAPH (3).

(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] In addition to

the sales authorized under paragraph (1), the holder of a

brewery license may sell wines, alcoholic cider and fermented

fruit beverages produced by the holder of a limited winery

license, malt or brewed beverages produced by a manufacturer

licensed by the board and liquor produced by a limited

distillery or distillery licensed by the board: Provided,

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

another manufacturer and liquor must be consumed at the licensed

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

brewed beverages produced by another manufacturer and liquor may

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

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

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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

purpose of receiving, storing and distributing malt or brewed

beverages manufactured outside this Commonwealth [if], including

malt or brewed beverages produced for the brewery under a

contract brewing agreement or alternating proprietorship with an

out-of-State manufacturer, so long as 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)] 431 as well as all other pertinent

sections of this act. The manufacturer of the beverages must

comply with section 444.

* * *

(5) Nothing in paragraphs (2) and (3) shall be construed to

impact the status of existing or future distribution contracts

or rights under this act.

* * *

Section 2. This act shall take effect in 60 days

IMMEDIATELY.

SECTION 2. SECTION 470(A)(1) OF THE ACT IS AMENDED TO READ:

SECTION 470. RENEWAL OF LICENSES; TEMPORARY PROVISIONS FOR

LICENSEES IN ARMED SERVICE.--(A) (1) ALL APPLICATIONS FOR

VALIDATION OR RENEWAL OF LICENSES UNDER THE PROVISIONS OF THIS

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ARTICLE SHALL BE FILED AT LEAST SIXTY DAYS BEFORE THE EXPIRATION

DATE OF SAME, ALONG WITH TAX CLEARANCE FROM THE DEPARTMENT OF

REVENUE AND THE DEPARTMENT OF LABOR AND INDUSTRY, THE REQUISITE

LICENSE AND FILING FEES, AND, EXCEPT AS PROVIDED UNDER PARAGRAPH

(2), SHALL INCLUDE AN APPLICATION SURCHARGE OF SEVEN HUNDRED

DOLLARS ($700.00): PROVIDED, HOWEVER, THAT THE BOARD, IN ITS

DISCRETION, MAY ACCEPT NUNC PRO TUNC A RENEWAL APPLICATION FILED

LESS THAN SIXTY DAYS BEFORE THE EXPIRATION DATE OF THE LICENSE

WITH THE REQUIRED FEES, UPON REASONABLE CAUSE SHOWN AND THE

PAYMENT OF AN ADDITIONAL FILING FEE OF ONE HUNDRED DOLLARS

($100.00) FOR LATE FILING: AND PROVIDED FURTHER, THAT EXCEPT

WHERE THE FAILURE TO FILE A RENEWAL APPLICATION ON OR BEFORE THE

EXPIRATION DATE HAS CREATED A LICENSE QUOTA VACANCY AFTER SAID

EXPIRATION DATE WHICH HAS BEEN FILLED BY THE ISSUANCE OF A NEW

LICENSE, AFTER SUCH EXPIRATION DATE, BUT BEFORE THE BOARD HAS

RECEIVED A RENEWAL APPLICATION NUNC PRO TUNC WITHIN THE TIME

PRESCRIBED HEREIN THE BOARD, IN ITS DISCRETION, MAY, AFTER

HEARING, ACCEPT A RENEWAL APPLICATION FILED WITHIN TWO YEARS

AFTER THE EXPIRATION DATE OF THE LICENSE WITH THE REQUIRED FEES

UPON THE PAYMENT OF AN ADDITIONAL FILING FEE OF TWO HUNDRED

FIFTY DOLLARS ($250.00) FOR LATE FILING. WHERE ANY SUCH RENEWAL

APPLICATION IS FILED LESS THAN SIXTY DAYS BEFORE THE EXPIRATION

DATE, OR SUBSEQUENT TO THE EXPIRATION DATE, NO LICENSE SHALL

ISSUE UPON THE FILING OF THE RENEWAL APPLICATION UNTIL THE

MATTER IS FINALLY DETERMINED BY THE BOARD AND IF AN APPEAL IS

TAKEN FROM THE BOARD'S ACTION THE COURTS SHALL NOT ORDER THE

ISSUANCE OF THE RENEWAL LICENSE UNTIL FINAL DETERMINATION OF THE

MATTER BY THE COURTS. THE BOARD MAY ENTER INTO AN AGREEMENT WITH

THE APPLICANT CONCERNING ADDITIONAL RESTRICTIONS ON THE LICENSE

IN QUESTION. IF THE BOARD AND THE APPLICANT ENTER INTO SUCH AN

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AGREEMENT, SUCH AGREEMENT SHALL BE BINDING ON THE APPLICANT.

FAILURE BY THE APPLICANT TO ADHERE TO THE AGREEMENT WILL BE

SUFFICIENT CAUSE TO FORM THE BASIS FOR A CITATION UNDER SECTION

471 AND FOR THE NONRENEWAL OF THE LICENSE UNDER THIS SECTION. A

RENEWAL APPLICATION WILL NOT BE CONSIDERED FILED UNLESS

ACCOMPANIED BY THE REQUISITE FILING AND LICENSE FEES AND ANY

ADDITIONAL FILING FEE REQUIRED BY THIS SECTION. UNLESS THE BOARD

SHALL HAVE GIVEN TEN DAYS' PREVIOUS NOTICE TO THE APPLICANT OF

OBJECTIONS TO THE RENEWAL OF HIS LICENSE, BASED UPON VIOLATION

BY THE LICENSEE OR HIS SERVANTS, AGENTS OR EMPLOYES OF ANY OF

THE LAWS OF THE COMMONWEALTH OR REGULATIONS OF THE BOARD

RELATING TO THE MANUFACTURE, TRANSPORTATION, USE, STORAGE,

IMPORTATION, POSSESSION OR SALE OF LIQUORS, ALCOHOL OR MALT OR

BREWED BEVERAGES, OR THE CONDUCT OF A LICENSED ESTABLISHMENT, OR

UNLESS THE APPLICANT HAS BY HIS OWN ACT BECOME A PERSON OF ILL

REPUTE, OR UNLESS THE PREMISES DO NOT MEET THE REQUIREMENTS OF

THIS ACT OR THE REGULATIONS OF THE BOARD, THE LICENSE OF A

LICENSEE SHALL BE RENEWED. NOTWITHSTANDING ANY OTHER PROVISION

OF THIS ACT, A NOISE VIOLATION SHALL NOT BE THE SOLE BASIS FOR

OBJECTION BY THE BOARD TO THE RENEWAL OF A LICENSE UNLESS THE

LICENSEE HAS RECEIVED [SIX] THREE PRIOR ADJUDICATED NOISE

CITATIONS WITHIN A TWENTY-FOUR-MONTH PERIOD.

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SECTION 3. SECTION 493.1(E)(1) AND (2) OF THE ACT ARE

AMENDED AND THE SUBSECTION IS AMENDED BY ADDING A PARAGRAPH TO

READ:

SECTION 493.1. RIGHTS OF MUNICIPALITIES PRESERVED.--* * *

(E) (1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE

CONTRARY EXCEPT AS PROVIDED UNDER PARAGRAPH (3), THE HOLDER OF A

[LIMITED WINERY] LICENSE UNDER THIS ACT THAT IS LOCATED IN A

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CLASS 2A THROUGH 8 COUNTY MAY USE OR PERMIT TO BE USED INSIDE OR

OUTSIDE OF THE LICENSED PREMISES A LOUDSPEAKER OR SIMILAR DEVICE

WHEREBY THE SOUND OF MUSIC OR OTHER ENTERTAINMENT, OR THE

ADVERTISEMENT THEREOF, DOES NOT EXCEED 75 DECIBELS BEYOND THE

LICENSEE'S PROPERTY LINE.

(2) THE PROVISIONS OF [SUBSECTION (A)] PARAGRAPH (1) SHALL

ONLY APPLY:

(I) FROM TEN O'CLOCK ANTEMERIDIAN UNTIL [EIGHT] NINE O'CLOCK

POSTMERIDIAN ON EVERY DAY EXCEPT FRIDAYS AND SATURDAYS; AND

(II) FROM TEN O'CLOCK ANTEMERIDIAN UNTIL [TEN] TWELVE

O'CLOCK [POSTMERIDIAN] ANTEMERIDIAN ON FRIDAYS OR SATURDAYS.

* * *

(4) THE BUREAU OF LIQUOR CONTROL ENFORCEMENT OF THE

PENNSYLVANIA STATE POLICE SHALL ENFORCE THE PROVISIONS OF THIS

SUBSECTION.

SECTION 4. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.

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