S1212B1675A05263 NAD:JMT 06/29/22 #90 A05263
AMENDMENTS TO SENATE BILL NO. 1212
Sponsor: REPRESENTATIVE JOZWIAK
Printer's No. 1675
Amend Bill, page 1, line 18, by inserting after "providing"
for malt and brewed beverages manufacturers', distributors' and
importing distributors' licenses,
Amend Bill, page 1, lines 23 through 25, by striking out all
of said lines and inserting
Section 1. Section 431(b) of the act of April 12, 1951
(P.L.90, No.21), known as the Liquor Code, 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
feet of any other premises which is licensed by the board: And
2022/90NAD/SB1212A05263 - 1 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
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 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
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
2022/90NAD/SB1212A05263 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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] penalty or
suspension in accordance with section 494: 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.
Notwithstanding any provision of this act, a licensee may
pick up an order from an importing distributor within twenty-
four (24) hours of placement if the order was placed by a
restaurant, club or hotel licensee or retail dispenser
consistent with a preexisting, agreed-upon ordering process, but
is not able to be delivered within the agreed-upon delivery
time. The purchase may not be for more than twenty-one (21)
2022/90NAD/SB1212A05263 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
cases or three (3) one-half barrel kegs of malt or brewed
beverages in original containers. The pickup is subject to and
limited by an importing distributor's labor agreements. A valid
transporter-for-hire is not required for the pick up or
transport to the licensed premises. The employe of the licensee
shall be twenty-one (21) years of age, the vehicle used shall be
marked as required by 40 Pa. Code ยง 9.22 (relating to
identification of vehicles) and the employe shall return
directly to the licensed premises immediately after pick up. If
the pickup of an order at an importing distributor is not
possible, the order may be placed with a distributor selected
from distributors the importing distributor identified as being
located within the designated geographical area granted to the
importing distributor. The purchase shall be considered an
emergency purchase. A licensee abusing the emergency provisions
contained in this paragraph shall be subject to penalties or
suspension in accordance with section 494. The provisions of
this paragraph shall expire December 31, 2027.
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 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
2022/90NAD/SB1212A05263 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
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.
* * *
Section 2. Section 470(a)(1) of the act is amended to read:
Amend Bill, page 3, line 25, by striking out "2" where it
occurs the first time and inserting
3
Amend Bill, page 4, line 17, by striking out "3" and
inserting
4
2022/90NAD/SB1212A05263 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17