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A02210
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1497
Session of
2017
INTRODUCED BY JOZWIAK, TALLMAN, ROTHMAN, BARBIN, M. K. KELLER,
MILLARD, A. HARRIS, GROVE, WENTLING, WARD, SONNEY AND
WHEELAND, JUNE 5, 2017
AS REPORTED FROM COMMITTEE ON LIQUOR CONTROL, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 13, 2017
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
preliminary provisions, further defining "alcoholic cider."
CIDER" AND "PUBLIC VENUE"; AND, IN LICENSES AND REGULATIONS
FOR LIQUOR, ALCOHOL AND MALT AND BREWED BEVERAGES, FURTHER
PROVIDING FOR WINE AND SPIRITS AUCTION PERMITS. and for malt
and brewed beverages manufacturers', distributors' and
importing distributors' licenses.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "alcoholic cider" in section
102 of the act of April 12, 1951 (P.L.90, No.21), known as the
Liquor Code, amended November 15, 2016 (P.L.1286, No.166), is
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amended to read:
SECTION 1. THE DEFINITIONS OF "ALCOHOLIC CIDER" AND "PUBLIC
VENUE" IN SECTION 102 OF THE ACT OF APRIL 12, 1951 (P.L.90,
NO.21), KNOWN AS THE LIQUOR CODE, AMENDED NOVEMBER 15, 2016
(P.L.1286, NO.166), ARE AMENDED 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 six and four tenths grams
per liter, produced through alcoholic fermentation [of any fruit
or fruit juice], which is primarily derived from apples, apple
juice concentrate and water, pears or pear juice concentrate and
water, 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.
* * *
"PUBLIC VENUE" SHALL MEAN A STADIUM, ARENA, CONVENTION
CENTER, MUSEUM, ZOO, AMPHITHEATER OR SIMILAR STRUCTURE. IF THE
PUBLIC VENUE IS A CRUISE TERMINAL OWNED OR LEASED BY A PORT
AUTHORITY CREATED UNDER THE ACT OF JUNE 12, 1931 (P.L.575,
NO.200), ENTITLED "AN ACT PROVIDING FOR JOINT ACTION BY
PENNSYLVANIA AND NEW JERSEY IN THE DEVELOPMENT OF THE PORTS ON
THE LOWER DELAWARE RIVER, AND THE IMPROVEMENT OF THE FACILITIES
FOR TRANSPORTATION ACROSS THE RIVER; AUTHORIZING THE GOVERNOR,
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FOR THESE PURPOSES, TO ENTER INTO AN AGREEMENT WITH NEW JERSEY;
CREATING THE DELAWARE RIVER JOINT COMMISSION AND SPECIFYING THE
POWERS AND DUTIES THEREOF, INCLUDING THE POWER TO FINANCE
PROJECTS BY THE ISSUANCE OF REVENUE BONDS; TRANSFERRING TO THE
NEW COMMISSION ALL THE POWERS OF THE DELAWARE RIVER BRIDGE JOINT
COMMISSION; AND MAKING AN APPROPRIATION," IT SHALL HAVE NO
PERMANENT SEATING REQUIREMENT. IF THE PUBLIC VENUE IS AN OPEN-
AIR AMPHITHEATER OWNED BY A PORT AUTHORITY CREATED UNDER THE ACT
OF DECEMBER 6, 1972 (P.L.1392, NO.298), KNOWN AS THE "THIRD
CLASS CITY PORT AUTHORITY ACT," IT SHALL HAVE NO PERMANENT
SEATING REQUIREMENT. IF THE PUBLIC VENUE IS OWNED BY A POLITICAL
SUBDIVISION, A MUNICIPAL AUTHORITY, THE COMMONWEALTH, AN
AUTHORITY CREATED UNDER THE ACT OF JULY 29, 1953 (P.L.1034,
NO.270), KNOWN AS THE "PUBLIC AUDITORIUM AUTHORITIES LAW," AN
AUTHORITY CREATED UNDER ARTICLE XXV-A OF THE ACT OF JULY 28,
1953 (P.L.723, NO.230), KNOWN AS THE "SECOND CLASS COUNTY CODE,"
AN ART MUSEUM ESTABLISHED UNDER THE AUTHORITY OF THE ACT OF
APRIL 6, 1791 (3 SM.L.20, NO.1536), ENTITLED "AN ACT TO CONFER
ON CERTAIN ASSOCIATIONS OF THE CITIZENS OF THIS COMMONWEALTH THE
POWERS AND IMMUNITIES OF CORPORATIONS, OR BODIES POLITIC IN
LAW," [OR] AN AUTHORITY CREATED UNDER ARTICLE XXIII (N) OR (O)
OF THE ACT OF AUGUST 9, 1955 (P.L.323, NO.130), KNOWN AS "THE
COUNTY CODE," OR IT IS LOCATED IN A NEIGHBORHOOD IMPROVEMENT
ZONE CREATED UNDER ARTICLE XIX-B OF THE ACT OF MARCH 4, 1971
(P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, LOCATED IN
A CITY OF THE THIRD CLASS, IT SHALL HAVE PERMANENT SEATING FOR
AT LEAST ONE THOUSAND (1,000) PEOPLE; OTHERWISE, IT SHALL HAVE
PERMANENT SEATING FOR AT LEAST TWO THOUSAND (2,000) PEOPLE. THE
TERM SHALL ALSO MEAN ANY REGIONAL HISTORY CENTER, MULTIPURPOSE
CULTURAL AND SCIENCE FACILITY, MUSEUM OR CONVENTION OR TRADE
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SHOW CENTER, REGARDLESS OF OWNER AND SEATING CAPACITY, THAT HAS
A FLOOR AREA OF AT LEAST SIXTY THOUSAND (60,000) SQUARE FEET IN
ONE BUILDING. THE TERM SHALL ALSO MEAN A CONVENTION OR
CONFERENCE CENTER OWNED BY A CITY OF THE THIRD CLASS OR A
UNIVERSITY WHICH IS A MEMBER OF THE PENNSYLVANIA STATE SYSTEM OF
HIGHER EDUCATION WHICH IS OPERATED BY A UNIVERSITY FOUNDATION OR
ALUMNI ASSOCIATION, REGARDLESS OF SEATING CAPACITY, THAT HAS A
FLOOR AREA OF AT LEAST FIFTEEN THOUSAND (15,000) SQUARE FEET IN
ONE BUILDING. THE TERM SHALL ALSO MEAN A VISITOR CENTER,
REGARDLESS OF FLOOR AREA OR SEATING CAPACITY, THAT WAS
ESTABLISHED UNDER THE AUTHORITY OF THE GATEWAY VISITOR CENTER
AUTHORIZATION ACT OF 1999 (PUBLIC LAW 106-131, 113 STAT. 1678,
16 U.S.C. ยง 407M).
* * *
SECTION 2. SECTION 408.12(6), (10), (11) AND (12) OF THE
ACT, AMENDED NOVEMBER 15, 2016 (P.L.1286, NO.166), ARE AMENDED
TO READ:
SECTION 408.12. WINE AND SPIRITS AUCTION PERMITS.--(A) UPON
APPLICATION OF:
* * *
(6) ANY [NATIONALLY RECOGNIZED] COMMUNITY-BASED VOLUNTARY
HEALTH ORGANIZATION COMMITTED TO FIGHTING CANCER [WHICH HAS BEEN
IN EXISTENCE FOR AT LEAST NINETY YEARS];
* * *
(10) INSTITUTION OF HIGHER EDUCATION; OR
(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 TWENTY YEARS;]
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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.
* * *
Section 3. Section 431(b) of the act, reenacted and amended
November 15, 2016 (P.L.1286, No.166), is 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
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
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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
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
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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
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
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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
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
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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 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
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
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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,
the licensee shall be subject to suspension of his license for
at least thirty days: Provided, That the] 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
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writing and a copy thereof be given to each of the importing
distributors so affected.
A distributor who violates the provisions of this section and
delivers to a licensee outside of the designated geographical
area shall be subject to citation by the enforcement bureau of
the board which shall result in penalties as follows: The
receipt of a first citation will result in a fine of not less
than five hundred dollars ($500), nor more than one thousand
dollars ($1,000); the receipt of a second citation will result
in a fine of not less than one thousand dollars ($1,000), nor
more than two thousand five hundred dollars ($2,500) and
suspension of operating privileges for at least two days; the
receipt of a third or subsequent citation will result in a fine
of not less than two thousand five hundred dollars ($2,500), nor
more than five thousand ($5,000) and suspension of operating
privileges for seven days.
A licensee who accepts product in violation of the provisions
of this section shall be subject to citation by the enforcement
bureau of the board, which shall result in penalties as follows:
the receipt of a first citation will result in a warning and
will serve as official notice that the licensee is accepting
product in violation of this act; the receipt of a second
citation will result in a fine of not less than five hundred
dollars ($500), nor more than one thousand dollars ($1,000); the
receipt of a third citation will result in a fine of not less
than one thousand dollars ($1,000), nor more than two thousand
five hundred dollars ($2,500) and suspension of operating
privileges for at least two days; the receipt of a fourth or
subsequent citation will result in a fine of not less than two
thousand five hundred dollars ($2,500), nor more than five
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thousand ($5,000) and suspension of operating privileges for
seven days.
* * *
Section 2 3 4. This act shall take effect in 60 days.
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