PRINTER'S NO. 2346
No. 1806 Session of 2003
INTRODUCED BY BARRAR, DENLINGER, J. EVANS, HARRIS, HORSEY AND
O'NEILL, JULY 2, 2003
REFERRED TO COMMITTEE ON LIQUOR CONTROL, JULY 2, 2003
AN ACT
1 Amending the act of April 12, 1951 (P.L.90, No.21), entitled, as
2 reenacted, "An act relating to alcoholic liquors, alcohol and
3 malt and brewed beverages; amending, revising, consolidating
4 and changing the laws relating thereto; regulating and
5 restricting the manufacture, purchase, sale, possession,
6 consumption, importation, transportation, furnishing, holding
7 in bond, holding in storage, traffic in and use of alcoholic
8 liquors, alcohol and malt and brewed beverages and the
9 persons engaged or employed therein; defining the powers and
10 duties of the Pennsylvania Liquor Control Board; providing
11 for the establishment and operation of State liquor stores,
12 for the payment of certain license fees to the respective
13 municipalities and townships, for the abatement of certain
14 nuisances and, in certain cases, for search and seizure
15 without warrant; prescribing penalties and forfeitures;
16 providing for local option, and repealing existing laws."
17 further providing for malt and brewed beverages
18 manufacturers', distributors' and importing distributors'
19 licenses.
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:
22 Section 1. Section 431(b) of the act of April 12, 1951
23 (P.L.90, No.21), known as the Liquor Code, reenacted and amended
24 June 29, 1987 (P.L.32, No.14) and amended December 9, 2002
25 (P.L.1653, No.212), is amended to read:
26 Section 431. Malt and Brewed Beverages Manufacturers',
1 Distributors' and Importing Distributors' Licenses.--* * *
2 (b) The board shall issue to any reputable person who
3 applies therefor, and pays the license fee hereinafter
4 prescribed, a distributor's or importing distributor's license
5 for the place which such person desires to maintain for the sale
6 of malt or brewed beverages, not for consumption on the premises
7 where sold, and in quantities of not less than a case or
8 original containers containing one hundred twenty-eight ounces
9 or more which may be sold separately as prepared for the market
10 by the manufacturer at the place of manufacture. The board shall
11 have the discretion to refuse a license to any person or to any
12 corporation, partnership or association if such person, or any
13 officer or director of such corporation, or any member or
14 partner of such partnership or association shall have been
15 convicted or found guilty of a felony within a period of five
16 years immediately preceding the date of application for the said
17 license: And provided further, That, in the case of any new
18 license or the transfer of any license to a new location, the
19 board may, in its discretion, grant or refuse such new license
20 or transfer if such place proposed to be licensed is within
21 three hundred feet of any church, hospital, charitable
22 institution, school or public playground, or if such new license
23 or transfer is applied for a place which is within two hundred
24 feet of any other premises which is licensed by the board: And
25 provided further, That the board shall refuse any application
26 for a new license or the transfer of any license to a new
27 location if, in the board's opinion, such new license or
28 transfer would be detrimental to the welfare, health, peace and
29 morals of the inhabitants of the neighborhood within a radius of
30 five hundred feet of the place proposed to be licensed. The
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1 board shall refuse any application for a new license or the
2 transfer of any license to a location where the sale of liquid
3 fuels or oil is conducted. The board may enter into an agreement
4 with the applicant concerning additional restrictions on the
5 license in question. If the board and the applicant enter into
6 such an agreement, such agreement shall be binding on the
7 applicant. Failure by the applicant to adhere to the agreement
8 will be sufficient cause to form the basis for a citation under
9 section 471 and for the nonrenewal of the license under section
10 470. If the board enters into an agreement with an applicant
11 concerning additional restrictions, those restrictions shall be
12 binding on subsequent holders of the license until the license
13 is transferred to a new location or until the board enters into
14 a subsequent agreement removing those restrictions. If the
15 application in question involves a location previously licensed
16 by the board, then any restrictions imposed by the board on the
17 previous license at that location shall be binding on the
18 applicant unless the board enters into a new agreement
19 rescinding those restrictions. The board shall require notice to
20 be posted on the property or premises upon which the licensee or
21 proposed licensee will engage in sales of malt or brewed
22 beverages. This notice shall be similar to the notice required
23 of hotel, restaurant and club liquor licensees.
24 Except as hereinafter provided, such license shall authorize
25 the holder thereof to sell or deliver malt or brewed beverages
26 in quantities above specified anywhere within the Commonwealth
27 of Pennsylvania, which, in the case of distributors, have been
28 purchased only from persons licensed under this act as
29 manufacturers or importing distributors, and in the case of
30 importing distributors, have been purchased from manufacturers
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1 or persons outside this Commonwealth engaged in the legal sale
2 of malt or brewed beverages or from manufacturers or importing
3 distributors licensed under this article. In the case of an
4 importing distributor, the holder of such a license shall be
5 authorized to store malt or brewed beverages owned by an out of
6 State manufacturer at a segregated portion of a warehouse or
7 other storage facility authorized by section 441(d) and operated
8 by the importing distributor within its appointed territory and
9 deliver such beverages to another importing distributor who has
10 been granted distribution rights by the out of State
11 manufacturer as provided herein. The importing distributor shall
12 be permitted to receive a fee from the out of State manufacturer
13 for any related storage or delivery services. In the case of a
14 bailee for hire hired by an out of State manufacturer, the
15 holder of such a permit shall be authorized: to receive or store
16 malt or brewed beverages under the same conditions as permitted
17 for a distributor or importing distributor under section 441(f)
18 produced by that out of State manufacturer for sale by that
19 manufacturer to importing distributors to whom that out of State
20 manufacturer has given distribution rights pursuant to this
21 subsection or to purchasers outside this Commonwealth for
22 delivery outside this Commonwealth; or to ship to that out of
23 State manufacturer's storage facilities outside this
24 Commonwealth. The bailee for hire shall be permitted to receive
25 a fee from the out of State manufacturer for any related storage
26 or delivery services. The bailee for hire shall, as required in
27 Article V of this act, keep complete and accurate records of all
28 transactions, inventory, receipts and shipments and make all
29 records and the licensed areas available for inspection by the
30 board and for the Pennsylvania State Police, Bureau of Liquor
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1 Control Enforcement, during normal business hours.
2 Each out of State manufacturer of malt or brewed beverages
3 whose products are sold and delivered in this Commonwealth shall
4 give distributing rights for such products in designated
5 geographical areas to specific importing distributors, and such
6 importing distributor shall not sell or deliver malt or brewed
7 beverages manufactured by the out of State manufacturer to any
8 person issued a license under the provisions of this act whose
9 licensed premises are not located within the geographical area
10 for which he has been given distributing rights by such
11 manufacturer. Should a licensee accept the delivery of such malt
12 or brewed beverages in violation of this section, said licensee
13 shall be subject to a suspension of his license for at least
14 thirty days: Provided, That the importing distributor holding
15 such distributing rights for such product shall not sell or
16 deliver the same to another importing distributor without first
17 having entered into a written agreement with the said secondary
18 importing distributor setting forth the terms and conditions
19 under which such products are to be resold within the territory
20 granted to the primary importing distributor by the
21 manufacturer.
22 When a Pennsylvania manufacturer of malt or brewed beverages
23 licensed under this article appoints, names or constitutes a
24 distributor or importing distributor [as] for a specific
25 geographical area, the distributor or importing distributor
26 shall be deemed to be the primary or original supplier of his
27 product, [he shall also designate the specific geographical area
28 for which the said distributor or importing distributor is given
29 distributing rights,] notwithstanding any contractual
30 requirements and the Pennsylvania manufacturer of malt or brewed
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1 beverages licensed under this article shall treat the
2 distributor or importing distributor in the same manner as an
3 out of State manufacturer would treat an importing distributor
4 under this act and such distributor or importing distributor
5 shall not sell or deliver the products of such manufacturer to
6 any person issued a license under the provisions of this act
7 whose licensed premises are not located within the geographical
8 area for which distributing rights have been given to the
9 distributor and importing distributor by the said manufacturer:
10 Provided, That the importing distributor holding such
11 distributing rights for such product shall not sell or deliver
12 the same to another importing distributor without first having
13 entered into a written agreement with the said secondary
14 importing distributor setting forth the terms and conditions
15 under which such products are to be resold within the territory
16 granted to the primary importing distributor by the
17 manufacturer. Nothing herein contained shall be construed to
18 prevent any manufacturer from authorizing the importing
19 distributor holding the distributing rights for a designated
20 geographical area from selling the products of such manufacturer
21 to another importing distributor also holding distributing
22 rights from the same manufacturer for another geographical area,
23 providing such authority be contained in writing and a copy
24 thereof be given to each of the importing distributors so
25 affected.
26 * * *
27 Section 2. This act shall take effect in 60 days.
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