PRIOR PRINTER'S NOS. 3633, 3648

PRINTER'S NO.  4142

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

2429

Session of

2012

  

  

INTRODUCED BY SANTONI, TAYLOR, FRANKEL, BRENNAN, GIBBONS, HARHAI, HARKINS, KORTZ, KOTIK, LONGIETTI, STURLA, DALEY, PAYNE, M. O'BRIEN, VULAKOVICH, EVERETT, PRESTON, WHITE, MAHONEY, JAMES, PASHINSKI, GEIST, FABRIZIO AND NEILSON, JUNE 4, 2012

  

  

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, OCTOBER 1, 2012   

  

  

  

AN ACT

  

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

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reenacted, "An act relating to alcoholic liquors, alcohol and

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malt and brewed beverages; amending, revising, consolidating

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and changing the laws relating thereto; regulating and

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restricting the manufacture, purchase, sale, possession,

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consumption, importation, transportation, furnishing, holding

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

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liquors, alcohol and malt and brewed beverages and the

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persons engaged or employed therein; defining the powers and

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duties of the Pennsylvania Liquor Control Board; providing

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for the establishment and operation of State liquor stores,

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for the payment of certain license fees to the respective

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municipalities and townships, for the abatement of certain

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nuisances and, in certain cases, for search and seizure

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without warrant; prescribing penalties and forfeitures;

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providing for local option, and repealing existing laws,"

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providing for special permits for breweries.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  Section 446 of the act of April 12, 1951 (P.L.90,

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

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1987 (P.L.32, No.14) and amended December 22, 2011 (P.L.530,

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No.113), is amended to read:

 


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

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may:

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

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brewery under such conditions and regulations as the board may

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enforce, to individuals for consumption on the licensed premises

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in any container or package of any volume and to hotel,

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restaurant, club and public service liquor licensees.

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(2)  Operate a restaurant or brewery pub on the licensed

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premises under such conditions and regulations as the board may

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enforce: Provided, however, That sales on Sunday may be made

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irrespective of the volume of food sales if the licensed

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premises are at a public venue location. The holder of a brewery

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license may sell at its brewery pub premises Pennsylvania wines

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it has purchased from either the holder of a Pennsylvania

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

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That said wines must be consumed at the licensed brewery pub

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premises.

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(3)  Use brewery storage and distribution facilities for the

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purpose of receiving, storing and distributing malt or brewed

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beverages manufactured outside this Commonwealth if the

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beverages are distributed in this Commonwealth only through

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specific importing distributors who shall have first been given

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distributing rights for such products in designated geographical

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

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

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pertinent sections of this act. The manufacturer of the

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beverages must comply with section 444.

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(4)  Apply for and hold a hotel liquor license, a restaurant

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liquor license or a malt and brewed beverages retail license to

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sell for consumption at the restaurant or brewery pub on the

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licensed brewery premises, liquor, wine and malt or brewed

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beverages regardless of the place of manufacture, under the same

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conditions and regulations as any other hotel liquor license,

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restaurant liquor license or malt and brewed beverages retail

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license, but must brew at least two hundred fifty barrels per

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

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

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beverages retail license to operate a brew pub shall not sell

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

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or brewed beverage is to be distributed in this Commonwealth it

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shall be only through specific importing distributors who shall

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have first been given distributing rights for such products in

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designated geographical areas through the distribution system

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

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well as all other pertinent sections of this act.

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

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

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catered function off the licensed premises and on otherwise

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unlicensed premises where the licensee may sell wine produced by

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a licensed limited winery and malt or brewed beverages produced

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by the brewery by the glass, open bottle or other container, and

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in any mixture, for consumption on those premises. Functions

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conducted under the authority of the permit shall be subject to

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the following:

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

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that the license holder may otherwise sell alcohol;

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

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be in compliance with the responsible alcohol management

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provisions under section 471.1;

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

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and not more than fifty catered functions may be held each

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calendar year by each license holder for use with a particular

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license;

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

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

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license;

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

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license is in safekeeping;

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

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

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

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

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subject to a pending license suspension under section 471 or the

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

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under section 471(b);

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

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the applicant may transport alcohol to and from its licensed

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premises to the proposed premises; and

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

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catered function shall be provided to the local police or if

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there is no local police force to the enforcement bureau at

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least forty-eight hours in advance of the event.

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

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permit to participate in malt or brewed beverages and food

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expositions off the licensed premises. A special permit shall be

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issued upon proper application and payment of a fee of thirty

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

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

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the special permits may not exceed one hundred days in any

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calendar year. A special permit shall entitle the holder to

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engage in the sale by the glass, bottle or package not to exceed

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one hundred forty-four fluid ounces of malt or brewed beverages

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produced by the permittee under the authority of its brewery

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license. Holders of special permits may provide tasting samples

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of malt or brewed beverages in individual portions not to exceed

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four fluid ounces. Samples at malt or brewed beverages and food

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expositions may be sold or offered free of charge. Except as

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provided herein, breweries utilizing special permits shall be

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governed by all applicable provisions of this act as well as by

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all applicable regulations or conditions adopted by the board.

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For purposes of this clause, "malt or brewed beverages and food

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expositions" are defined as affairs held indoors or outdoors

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with the intent of educating those in attendance of the

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availability, nature and quality of malt or brewed beverages in

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conjunction with suitable food displays, demonstrations and

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sales. Malt or brewed beverages and food expositions may also

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include activities other than malt or brewed beverages and food

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displays, including arts and crafts, musical activities,

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cultural exhibits, agricultural exhibits and farmers markets.

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(2)  At the discretion of the board, obtain a farmers market

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permit. The permit shall entitle the holder to participate in

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more than one farmers market at any given time and an unlimited

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number throughout the year and sell malt or brewed beverages

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produced under the authority of the underlying brewery license

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by the bottle or package not to exceed one hundred forty-four

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ounces. Samples not to exceed four fluid ounces per brand of

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malt or brewed beverages may be offered free of charge. A

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farmers market permit shall be issued upon proper application

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and payment of an annual fee of two hundred fifty dollars

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($250.00). A permit holder may participate in more than one

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farmers market at any given time. Sales by permit holders shall

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take place during the standard hours of operation of the farmers

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market. Written notice of the date, times and location the

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permit is to be used at shall be provided by the permit holder

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to the enforcement bureau at least two (2) weeks prior to the

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event. Except as provided in this subsection, breweries

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utilizing farmers market permits shall be governed by all

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applicable provisions of this act as well as by all applicable

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regulations adopted by the board.

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

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include any building, structure or other place:

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

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person, municipal corporation or public or private organization;

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

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an association of farmers, who are certified by the Department

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of Agriculture to participate in the Farmers Market Nutrition

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

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

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agricultural commodities produced in this Commonwealth directly

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to consumers;

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(iii)  which is physically located within this Commonwealth;

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and

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

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each day.

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

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authorized by this section, are only available to breweries who

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

<--

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as a manufacturer as authorized under section 431(a) and who has

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not named or constituted a distributor or importing distributor

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as a primary or original supplier of the product under section

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431(b). Only malt or brewed beverages for which the brewery is

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responsible for paying the malt beverage tax shall be considered

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in calculating the total number of barrels produced each year.

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All brands of malt or brewed beverages sold or provided under

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the authority of the special permit as well as the farmers

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market permit must be registered as set forth by this act.

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

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