H1497B2007A02210 LKK:JMT 06/22/17 #90 A02210
AMENDMENTS TO HOUSE BILL NO. 1497
Sponsor: REPRESENTATIVE TOBASH
Printer's No. 2007
Amend Bill, page 1, line 20, by striking out the period after
"PERMITS" and inserting
and for malt and brewed beverages manufacturers', distributors'
and importing distributors' licenses.
Amend Bill, page 5, by inserting between lines 4 and 5
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
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
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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
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
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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
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 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
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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,
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
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
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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
thousand ($5,000) and suspension of operating privileges for
seven days.
* * *
Amend Bill, page 5, line 5, by striking out "3" and inserting
4
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See A02210 in
the context
of HB1497