SENATE AMENDED

 

PRIOR PRINTER'S NOS. 88, 532, 1542, 2049

PRINTER'S NO.  2144

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

148

Session of

2011

  

  

INTRODUCED BY PAYNE, GEIST, KORTZ, MUSTIO, READSHAW, SONNEY, WAGNER, STEVENSON, FARRY AND SABATINA, JANUARY 21, 2011

  

  

SENATOR CORMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS AMENDED, JUNE 20, 2011   

  

  

  

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 definitions, for issuance, transfer or

<--

18

extension of hotel, restaurant and club liquor licenses, for

19

sales by liquor licensees and restrictions and, for sale of

<--

20

malt or brewed beverages by liquor licensees, for malt and

21

brewed beverages manufacturers', distributors' and importing

22

distributors' licenses, for distributors' and importing

23

distributors' restrictions on sales, storage, etc., for

24

retail dispensers' restrictions on purchases and sales, for

25

malt or brewed beverages manufactured outside this

26

Commonwealth, for brand registration, for limiting number of

27

retail licenses to be issued in each county, for licenses not

28

assignable and transfers, for revocation and suspension of

29

licenses and fines and, for local option, for unlawful acts

<--

30

relative to liquor, malt and brewed beverages and licensees 

31

and for limited wineries.

<--

 


1

The General Assembly of the Commonwealth of Pennsylvania

2

hereby enacts as follows:

3

Section 1.  The definition of "eligible entity" in section

4

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

5

Liquor Code, reenacted and amended June 29, 1987 (P.L.32, No.14)

6

and amended June 25, 2010 (P.L.217, No.35), is amended and the

7

section is amended by adding definitions to read:

8

Section 102.  Definitions.--The following words or phrases,

9

unless the context clearly indicates otherwise, shall have the

10

meanings ascribed to them in this section:

11

* * *

12

"Catered event" function" shall mean the furnishing of

<--

13

prepared foods food prepared on the premises or brought onto the

<--

14

premises already prepared in conjunction with alcoholic

15

beverages for the accommodation of a person or an identifiable 

<--

16

group of people who made arrangements for the event function at

<--

17

least forty-eight hours in advance and is paid for and sponsored

<--

18

by a third party.

19

* * *

20

"Eligible entity" shall mean a city of the third class, a

21

hospital, a church, a synagogue, a volunteer fire company, a

22

volunteer ambulance company, a volunteer rescue squad, a unit of

23

a nationally chartered club which has been issued a club liquor

24

license, a club in a city of the third class which has been

25

issued a club liquor license and which, as of December 31, 2002,

26

has been in existence for at least 100 years, a library, a

27

nationally accredited Pennsylvania nonprofit zoological

28

institution licensed by the United States Department of

29

Agriculture, a nonprofit agricultural association in existence

30

for at least ten years, a bona fide sportsmen's club in

- 2 -

 


1

existence for at least ten years, a nationally chartered

2

veterans' organization and any affiliated lodge or subdivision

3

of such organization, a fraternal benefit society that is

4

licensed to do business in this Commonwealth and any affiliated

5

lodge or subdivision of such fraternal benefit society, a museum

6

operated by a nonprofit corporation in a city of the third class

7

or township of the first class, a nonprofit corporation engaged

8

in the performing arts in a city of the third class, borough or

9

in an incorporated town, an arts council, a nonprofit

10

corporation that operates an arts facility or museum in a city

11

of the third class in the county of the fourth class, a

12

nonprofit organization as defined under section 501(c)(3) of the

13

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

14

501(c)(3)) whose purpose is to protect the architectural

15

heritage of boroughs or a township of the second class and which

16

has been recognized as such by a municipal resolution, a

17

nonprofit organization as defined under section 501(c)(3) of the

18

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

19

501(c)(3)) conducting a regatta in a city of the second class

20

with the permit to be used on State park grounds or conducting a

21

family-oriented celebration as part of Welcome America in a city

22

of the first class on property leased from that city for more

23

than fifty years, a nonprofit organization as defined under

24

section 501(c)(3) of the Internal Revenue Code of 1986 (26

25

U.S.C. § 501(c)(3)) whose purpose is to raise funds for the

26

research and treatment of cystic fibrosis, a nonprofit

27

organization as defined under section 501(c)(3) of the Internal

28

Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose purpose is to

29

educate the public on issues dealing with watershed

30

conservation, a nonprofit organization as defined under section

- 3 -

 


1

501(c)(3) of the Internal Revenue Code of 1986 (Public Law

2

99-514, 26 U.S.C. § 501(c)(3)) whose purpose is to provide

3

equine assisted activities for children and adults with special

4

needs, a nonprofit economic development agency in a city of the

5

second class with the primary function to serve as an economic

6

generator for the greater southwestern Pennsylvania region by

7

attracting and supporting film, television and related media

8

industry projects and coordinating government and business

9

offices in support of a production, a county tourist promotion

10

agency as defined in section 3(1) of the act of April 28, 1961

11

(P.L.111, No.50), known as the "Tourist Promotion Law," and

12

located in a city of the third class in a county of the fourth

13

class or located in a township of the second class in a county

14

of the fifth class, a junior league in a third class county that

15

is a nonprofit organization as defined under section 501(c)(3)

16

of the Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3))

17

that is comprised of women whose purpose is exclusively

18

educational and charitable in promoting the volunteerism of

19

women and developing and participating in community projects and

20

that has been in existence for over seventy years, a nonprofit

21

organization as defined under section 501(c)(3) of the Internal

22

Revenue Code of 1986 which is located in counties of the second

23

class A or of the third class and whose purpose is the education

24

and promotion of American history, a nonprofit organization as

25

defined under section 501(c)(6) of the Internal Revenue Code of

26

1986 [which is located in a city of the third class in a county

<--

27

of the third class and] whose purpose is to support business and

<--

28

industry, a brewery which has been issued a license to

29

manufacture malt or brewed beverages and has been in existence

30

for at least 100 years or a club recognized by Rotary

- 4 -

 


1

International which is located in a county of the fourth class

2

and whose purpose is to provide service to others, to promote

3

high ethical standards and to advance world understanding,

4

goodwill and peace through its fellowship of business,

5

professional and community leaders or a nonprofit organization

6

as defined under section 501(c)(3) of the Internal Revenue Code

7

of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) which is

8

located in a borough in a county of the third class and whose

9

purpose is to promote mushrooms while supporting local and

10

regional charities, a museum operated by a not-for-profit

<--

11

corporation in a city of the second class A, a nonprofit

12

organization as defined under section 501(c)(3) of the Internal

13

Revenue Code of 1986 which is located in a city of the second

14

class A and has as its purpose economic and community

15

development, a nonprofit organization as defined under section

16

501(c)(3) or (6) of the Internal Revenue Code of 1986 that is

17

located in a city of the third class in a county of the fifth

18

class, a nonprofit social service organization defined under

19

section 501(c)(3) of the Internal Revenue Code of 1986 located

20

in a county of the third class whose purpose is to serve

21

individuals and families in that county of the third class, a

22

nonprofit organization as defined under section 501(c)(3) of the

23

Internal Revenue Code of 1986 whose main purpose is to

24

temporarily foster stray and unwanted animals and match them to

25

suitable permanent homes, a nonprofit organization as defined

26

under section 501(c)(3) of the Internal Revenue Code of 1986 who

27

operates either a Main Street Program or Elm Street Program

28

recognized by the Commonwealth, the National Trust for Historic

29

Preservation or both.

30

* * *

- 5 -

 


1

"Happy hour" shall mean the period of time during which a

2

licensee discounts alcoholic beverages.

3

* * *

4

Section 2.  Section 404 of the act, amended January 6, 2006

<--

5

(P.L.1, No.1), is amended to read:

6

Section 404.  Issuance, Transfer or Extension of Hotel,

7

Restaurant and Club Liquor Licenses.--Upon receipt of the

8

application and the proper fees, and upon being satisfied of the

9

truth of the statements in the application that the applicant is

10

the only person in any manner pecuniarily interested in the

11

business so asked to be licensed and that no other person will

12

be in any manner pecuniarily interested therein during the

13

continuance of the license, except as hereinafter permitted, and

14

that the applicant is a person of good repute, that the premises

15

applied for meet all the requirements of this act and the

16

regulations of the board, that the applicant seeks a license for

17

a hotel, restaurant or club, as defined in this act, and that

18

the issuance of such license is not prohibited by any of the

19

provisions of this act, the board shall, in the case of a hotel

20

or restaurant, grant and issue to the applicant a liquor

21

license, and in the case of a club may, in its discretion, issue

22

or refuse a license: Provided, however, That in the case of any

23

new license or the transfer of any license to a new location or

24

the extension of an existing license to cover an additional area

25

the board may, in its discretion, grant or refuse such new

26

license, transfer or extension if such place proposed to be

27

licensed is within three hundred feet of any church, hospital,

28

charitable institution, school, or public playground, or if such

29

new license, transfer or extension is applied for a place which

30

is within two hundred feet of any other premises which is

- 6 -

 


1

licensed by the board: And provided further, That the board's

2

authority to refuse to grant a license because of its proximity

3

to a church, hospital, charitable institution, public playground

4

or other licensed premises shall not be applicable to license

5

applications submitted for public venues or performing arts

6

facilities: And provided further, That the board shall refuse

7

any application for a new license, the transfer of any license

8

to a new location or the extension of an existing license to

9

cover an additional area if, in the board's opinion, such new

10

license, transfer or extension would be detrimental to the

11

welfare, health, peace and morals of the inhabitants of the

12

neighborhood within a radius of five hundred feet of the place

13

proposed to be licensed: And provided further, That the board

14

shall have the discretion to refuse a license to any person or

15

to any corporation, partnership or association if such person,

16

or any officer or director of such corporation, or any member or

17

partner of such partnership or association shall have been

18

convicted or found guilty of a felony within a period of five

19

years immediately preceding the date of application for the said

20

license. The board shall refuse any application for a new

21

license, the transfer of any license to a new location or the

22

extension of any license to cover an additional area where the

23

sale of liquid fuels or oil is conducted. The board may enter

24

into an agreement with the applicant concerning additional

25

restrictions on the license in question. If the board and the

26

applicant enter into such an agreement, such agreement shall be

27

binding on the applicant. Failure by the applicant to adhere to

28

the agreement will be sufficient cause to form the basis for a

29

citation under section 471 and for the nonrenewal of the license

30

under section 470. If the board enters into an agreement with an

- 7 -

 


1

applicant concerning additional restrictions, those restrictions

2

shall be binding on subsequent holders of the license until the

3

license is transferred to a new location or until the board

4

enters into a subsequent agreement removing those restrictions.

5

If the application in question involves a location previously

6

licensed by the board, then any restrictions imposed by the

7

board on the previous license at that location shall be binding

8

on the applicant unless the board enters into a new agreement

9

rescinding those restrictions. The board may, in its discretion,

10

refuse an application for an economic development license under

11

section 461(b.1) or an application for an intermunicipal

12

transfer of a license if the board receives a protest from the

13

governing body of the receiving municipality. The receiving

14

municipality of an intermunicipal transfer or an economic

15

development license under section 461(b.1) may file a protest

16

against the transfer of a license into its municipality, and the

17

receiving municipality shall have standing in a hearing to

18

present testimony in support of or against the issuance or

19

transfer of a license. Upon any opening in any quota, an

20

application for a new license shall only be filed with the board

21

for a period of six months following said opening.

22

Notwithstanding another provision of law, the board may not

23

refuse to transfer or renew a license previously issued for

24

premises located in a township of the second class within a

25

county of the third class that is a dry municipality based on

26

the fact that the municipality is a dry municipality if the

27

premises for which the license is being transferred or renewed

28

have been continuously licensed by the board for a period of

29

fifty years or more.

30

Section 3 2.  Section 406(a)(1) of the act, amended July 6,

<--

- 8 -

 


1

2005 (P.L.135, No.39), is amended and the section 406(a)(3) of

<--

2

the act, amended November 29, 2006 (P.L.1421, No.155), is

3

amended and the section is amended by adding subsections to

<--

4

read:

5

Section 406.  Sales by Liquor Licensees; Restrictions.--(a)  

6

(1)  Every hotel, restaurant or club liquor licensee may sell

<--

7

liquor and malt or brewed beverages by the glass, open bottle or

8

other container, and in any mixture, for consumption only in

9

that part of the hotel or restaurant habitually used for the

10

serving of food to guests or patrons, or, in the case of a

11

restaurant, hotel or eating place licensee, at a catered event

12

off the licensed premises, or in a bowling alley that is

13

immediately adjacent to and under the same roof as a restaurant,

14

and in the case of hotels, to guests, and in the case of clubs,

15

to members, in their private rooms in the hotel or club. No club

16

licensee nor its officers, servants, agents or employes, other

17

than one holding a catering license, shall sell any liquor or

18

malt or brewed beverages to any person except a member of the

19

club. The holder of a restaurant license located in a hotel may

20

sell liquor or malt or brewed beverages for consumption in that

21

part of the restaurant habitually used for the serving of meals

22

to patrons and also to guests in private guest rooms in the

23

hotel. For the purpose of this paragraph, any person who is an

24

active member of another club which is chartered by the same

25

state or national organization shall have the same rights and

26

privileges as members of the particular club. For the purpose of

27

this paragraph, any person who is an active member of any

28

volunteer firefighting company, association or group of this

29

Commonwealth, whether incorporated or unincorporated, shall upon

30

the approval of any club composed of volunteer firemen licensed

- 9 -

 


1

under this act, have the same social rights and privileges as

2

members of such licensed club. For the purposes of this

3

paragraph, the term "active member" shall not include a social

4

member. Any club licensee which is either an incorporated unit

5

of a national veterans' organization or an affiliated

6

organization as defined in section 461.1 shall be permitted to

7

sell liquor or malt or brewed beverages to any active member of

8

another unit which is chartered by the same national veterans'

9

organization or to any member of a nationally chartered

10

auxiliary associated with the same national veterans'

11

organization.* * *

<--

12

(3)  Hotel and restaurant liquor licensees, [airport

13

restaurant liquor licensees,] municipal golf course restaurant

14

liquor licensees and privately-owned public golf course

15

restaurant licensees may sell liquor and malt or brewed

16

beverages on Sunday between the hours of eleven o'clock

17

antemeridian and two o'clock antemeridian Monday upon purchase

18

of a special permit from the board at an annual fee as

19

prescribed in section 614-A of the act of April 9, 1929

20

(P.L.177, No.175), known as "The Administrative Code of 1929."

21

Airport restaurant liquor licensees may sell liquor and malt or

22

brewed beverages on Sunday between the hours of seven o'clock

23

antemeridian and two o'clock antemeridian Monday upon purchase

24

of a special permit from the board at an annual fee as

25

prescribed in section 614-A of the act of April 9, 1929

26

(P.L.177, No.175), known as "The Administrative Code of 1929."

27

* * *

28

(f)  The holder of a hotel license or a restaurant or

<--

29

restaurant liquor license may obtain an off-premises catering

30

permit subject to section 493(33) to hold a catered event 

<--

- 10 -

 


1

function off the licensed premises and on otherwise unlicensed

<--

2

premises where the licensee may sell wine, liquor and malt or

3

brewed beverages by the glass, open bottle or other container,

4

and in any mixture, for consumption on those premises solely

<--

5

used for catering purposes so long as the liquor and malt or

6

brewed beverages were purchased in conjunction with a meal which

7

will be consumed on the catered premises. The holder of an

8

eating place license may obtain an off-premises catering permit

9

subject to section 493(33) to hold a catered event off the

10

licensed premises and on otherwise unlicensed premises where the

11

licensee may sell malt or brewed beverages by the glass, open

12

bottle or other container for consumption on those premises

13

solely used for catering purposes so long as the malt or brewed

14

beverages were purchased in conjunction with a meal which will

15

be consumed on the catered premises. There shall be no

16

limitation on the number of off-premises catered events a

17

licensee may hold at any given time. At no time may an off-

18

premises catering permittee agree to hold a catered event that

19

includes the sale of alcohol at a location within a dry

20

municipality. In addition, the off-premises catering permittee

21

shall give the local police department or the Pennsylvania State

22

Police, if there is no local police department, written notice

23

at least forty-eight hours prior to each off-premises catered

24

event. Written notice shall consist of notifying the police of

25

the date, time and place of the impending sale of alcoholic

26

beverages. Functions conducted under the authority of the permit

<--

27

shall be subject to the following:

28

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

29

that the license holder may otherwise sell alcohol;

30

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

- 11 -

 


1

be in compliance with the responsible alcohol management

2

provisions under section 471.1;

3

(3)  each permit shall be valid for one day and not more than

<--

4

fifty permits may be issued each calendar year to each license

5

holder for use with a particular license;

6

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

<--

7

and not more than fifty catered functions may be held each

8

calendar year by each license holder for use with a particular

9

license;

10

(4)  a permit catered function shall not be issued to held at 

<--

11

a location that is already subject to the applicant's or another

12

licensee's license;

13

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

14

license is in safekeeping;

15

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

16

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

17

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

18

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

19

subject to a pending license suspension under section 471 or the

20

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

21

under section 471(b);

22

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

23

the applicant may transport alcohol to and from its licensed

24

premises to the proposed premises; and

25

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

26

catered function shall be provided to the local police or if

27

there is no local police force to the enforcement bureau at

28

least 48 hours in advance of the event.

29

(g)  Notwithstanding any other provision of law or

30

regulation, the holder of a retail license may have hold happy

<--

- 12 -

 


1

hours up to four hours per day and up to fourteen hours per week

2

during which the holder discounts the price of alcoholic

3

beverages. The licensee may use up to four hours per day so long

<--

4

as the hours do not exceed fourteen hours in any given week and

5

so long as no No discounts are may be given between the hours of

<--

6

midnight and the legal closing time and so long as notice. 

<--

7

Notice of all happy hours is shall be visibly posted on the

<--

8

licensed premises seven days prior to the happy hour. Except as

<--

9

provided in this subsection, a licensee shall comply with the

10

provisions of 40 Pa. Code § 13-102 (relating to discount pricing

11

practices).

12

Section 3.1 3.  Section 407(a) of the act, amended July 7,

<--

13

2006 (P.L.584, No.84), is amended to read:

14

Section 407.  Sale of Malt or Brewed Beverages by Liquor

15

Licensees.--(a)  Every liquor license issued to a hotel,

16

restaurant, club, or a railroad, pullman or steamship company

17

under this subdivision (A) for the sale of liquor shall

18

authorize the licensee to sell malt or brewed beverages at the

19

same places but subject to the same restrictions and penalties

20

as apply to sales of liquor, except that licensees other than

21

clubs may sell malt or brewed beverages for consumption off the

22

premises where sold in quantities of not more than one hundred

23

ninety-two fluid ounces in a single sale to one person. The

24

sales may be made in either open or closed containers, unless; 

<--

25

Provided, however, That a municipality has on may adopt an 

<--

26

ordinance restricting open container sales containers in public

<--

27

places. No licensee under this subdivision (A) shall at the same

28

time be the holder of any other class of license, except a

29

retail dispenser's license authorizing the sale of malt or

30

brewed beverages only.

- 13 -

 


1

* * *

2

Section 4.  Section 431(c) of the act, amended May 5, 1970

3

(P.L.342, No.110), is amended to read:

4

Section 431.  Malt and Brewed Beverages Manufacturers',

5

Distributors' and Importing Distributors' Licenses.--* * *

6

(c)  The aforesaid licenses shall be issued only to reputable

7

individuals, partnerships and associations who are, or whose

8

members are, citizens of the United States and [have for two

9

years prior to the date of their applications been] are 

10

residents of the Commonwealth of Pennsylvania or to reputable

11

corporations organized or duly registered under the laws of the

12

Commonwealth of Pennsylvania. Such licenses shall be issued to

13

corporations duly organized or registered under the laws of the

14

Commonwealth of Pennsylvania only when it appears that all of

15

the officers and directors of the corporation are citizens of

16

the United States and [have been] are residents of the

17

Commonwealth of Pennsylvania [for a period of at least two years

18

prior to the date of application], and that at least fifty-one

19

per centum of the capital stock of such corporation is actually

20

owned by individuals who are citizens of the United States and

21

[have been] are residents of the Commonwealth of Pennsylvania

22

[for a period of at least two years prior to the date of

23

application]: Provided, That the provisions of this subsection

24

with respect to residence requirements shall not apply to

25

individuals, partners, officers, directors and owners of capital

26

stock, of corporations licensed or applying for licenses as

27

manufacturers of malt or brewed beverages, nor shall the

28

provisions of this subsection with respect to stockholder

29

requirements apply to corporations licensed or applying for

30

licenses as manufacturers of malt or brewed beverages.

- 14 -

 


1

* * *

2

Section 5.  Section 441(d) of the act is amended and the

3

section is amended by adding a subsection to read:

4

Section 441.  Distributors' and Importing Distributors'

5

Restrictions on Sales, Storage, Etc.--* * *

6

(d)  (1)  No distributor [or importing distributor] shall

7

maintain any place for the storage of malt or brewed beverages

8

except in the same municipality in which the licensed premises

9

is located and unless the same has been approved by the board.

10

In the event there is no place of cold storage in the same

11

municipality, the board may approve a place of cold storage in

12

the nearest municipality.

13

(2)  No importing distributor shall maintain any place for

14

the storage of malt or brewed beverages except in the franchise

15

territory in which the licensed premises is located and unless

16

the same has been approved by the board. The board shall issue

17

no more than one storage facility license to an importing

18

distributor. The storage location shall be designated solely as

19

a storage facility, from which only sales to other licensees are

20

permitted. Retail sales may be made at the licensed location

21

pursuant to subsection (c). If the importing distributor

22

maintains a storage location for cold storage in the same

23

municipality in which the importing distributor is licensed or a

24

nearby municipality, the importing distributor may continue to

25

maintain that cold storage location in addition to another

26

storage location within their franchise territory.

27

* * *

28

(h)  As used in this section, the term "franchise territory"

29

shall mean the geographically contiguous area in which an

30

importing distributor has been given rights for the sale or

- 15 -

 


1

resale of malt or brewed beverages.

2

Section 5.1 6.  Section 442(a)(1) of the act, amended

<--

3

November 29, 2006 (P.L.1421, No.155), is amended and the section

4

is amended by adding a subsection to read:

5

Section 442.  Retail Dispensers' Restrictions on Purchases

6

and Sales.--(a)  (1)  No retail dispenser shall purchase or

7

receive any malt or brewed beverages except in original

8

containers as prepared for the market by the manufacturer at the

9

place of manufacture. The retail dispenser may thereafter break

10

the bulk upon the licensed premises and sell or dispense the

11

same for consumption on or off the premises so licensed[:

12

Provided, however, That no]. No retail dispenser may sell malt

13

or brewed beverages for consumption off the premises in

14

quantities in excess of one hundred ninety-two fluid ounces[:

15

Provided, further, That no]. Sales may be made in open or closed

16

containers, unless; Provided, however, That a municipality has 

<--

17

may adopt an ordinance restricting open container sales 

<--

18

containers in public places. No club licensee may sell any malt

<--

19

or brewed beverages for consumption off the premises where sold

20

or to persons not members of the club.

21

* * *

22

(f)  The holder of an eating place retail dispenser license

23

may obtain an off-premises catering permit under section 493(33)

24

to hold a catered event function off of the licensed premises

<--

25

and on otherwise unlicensed premises where the licensee may sell

26

malt or brewed beverages by the glass, open bottle or any other

27

container, for consumption on those premises solely used for

28

catering premises. Functions conducted under the authority of

29

the permit shall be subject to the following:

30

(1)  malt or brewed beverages may only be provided during the

- 16 -

 


1

days and hours that the license holder may otherwise sell malt

2

or brewed beverages;

3

(2)  each permit shall be valid for one day and not more than

<--

4

fifty permits may be issued each calendar year to each license

5

holder for use with a particular license;

6

(2)  Each catered function shall last no longer than one day

<--

7

and not more than fifty catered functions may be held each

8

calendar year by each license holder for use with a particular

9

license;

10

(3)  a permit catered function shall not be issued to held at 

<--

11

a location that is already subject to the applicant's or another

12

licensee's license;

13

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

14

license is in safekeeping;

15

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

16

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

17

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

18

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

19

subject to a pending license suspension under section 471 or the

20

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

21

under section 471(b);

22

(7)  no malt or brewed beverages may be taken from the

23

permitted location, but the applicant may transport malt or

24

brewed beverages to and from its licensed premises to the

25

proposed premises; and

26

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

27

catered function shall be provided to the local police, or if

28

there is no local police force to the enforcement bureau, at

29

least forty-eight hours in advance of the event.

30

Section 6 7.  Sections 444(c) and 445 of the act are amended

<--

- 17 -

 


1

to read:

2

Section 444.  Malt or Brewed Beverages Manufactured Outside

3

This Commonwealth.--* * *

4

(c)  Any malt or brewed beverages manufactured outside of

5

Pennsylvania which are sold, transported or possessed in

6

Pennsylvania contrary to any such regulations or orders of the

7

board, or without the payment of the fees herein required, shall

8

be considered contraband and shall be confiscated by the board

9

and disposed of in the same manner as any other illegal liquor

10

or malt or brewed beverages, provided that, if the potential

11

violation is of section 445 or any associated regulation, such

12

malt or brewed beverages shall be left on the licensed premises

13

where found under orders not to sell such contraband until such

14

time as the malt or brewed beverage manufacturer comes into

15

compliance with Pennsylvania's regulations or until the licensee

16

holding the contraband can return it to the manufacturer and be

17

fully reimbursed.

18

* * *

19

Section 445.  Brand Registration.--(a)  No brand or brands of

20

malt or brewed beverages shall be offered, sold or delivered to

21

any trade buyer within this Commonwealth unless the manufacturer

22

thereof shall first submit an application in the form and manner

23

prescribed by the board for the registration of the said brand

24

or brands of malt beverages, together [with an annual filing fee

25

not to exceed twenty-five dollars ($25) for each brand

26

registration requested.] with an annual filing fee not to exceed

27

seventy-five dollars ($75) for each brand registration

28

requested. Any brand produced in quantities of one hundred

<--

29

brewer's barrels annually or less may be registered together

30

with other brands produced by the same manufacturer in such

- 18 -

 


1

quantities with an annual filing fee not to exceed one hundred

2

and fifty dollars ($150) in total for up to twenty individual

3

brands. requested as set forth in section 614-A(35) of the act

<--

4

of April 9, 1929 (P.L.177, No.175), known as "The Administrative

5

Code of 1929." Notwithstanding section 614-A(35) of that act, up

6

to twenty brands may be registered for a single annual fee of

7

one hundred fifty dollars ($150.00), so long as one hundred

8

barrels or less of each brand is produced on an annual basis. 

9

Any brand or brands of malt or brewed beverages that are

10

produced by a manufacturer but not offered for sale because of

11

additional aging of the beverages shall only be registered at

12

the time the brand or brands are offered for sale. In the event

13

an out-of-State or foreign manufacturer of malt or brewed

14

beverages has granted franchise rights to any person for the

15

sale and distribution of its brand products but which person is

16

not licensed to sell and distribute the same in this

17

Commonwealth, said such person shall nevertheless be required to

18

register the involved brand before offering the same for sale in

19

Pennsylvania. It is further conditioned that the person holding

20

such franchise rights shall, together with its application for

21

brand registration, file with the board copies of all agreements

22

between it and the Pennsylvania importing distributor appointed

23

by such person to sell and distribute the brands of malt or

24

brewed beverages as provided by sections 431 and 492. Such

25

agreement shall contain the manufacturer's consent and approval

26

to the appointment of the Pennsylvania importing distributor and

27

the rights conferred thereunder.

28

(b)  The board shall employ a malt beverage compliance

29

officer whose duties shall include reviewing label registration

30

to ensure compliance with this act and investigating reports of

- 19 -

 


1

unregistered brands of malt or brewed beverages being sold by

2

licensees in addition to any other duties the board shall assign

3

the officer. If the malt beverage compliance officer finds that

4

a licensee is selling malt or brewed beverages that are

5

unregistered in this Commonwealth, he shall give the

6

manufacturer of the malt or brewed beverages written notice that

7

the manufacturer has ten days to register the malt or brewed

8

beverages with the board. During that ten-day period in which

9

the manufacturer has to come into compliance with brand

10

registration, the unregistered malt or brewed beverages shall

11

remain on the licensee's premises but may not be sold. Should

12

the manufacturer fail to register the malt or brewed beverages

13

with the board within ten days, the manufacturer shall be

14

required to remove the unregistered malt or brewed beverages

15

from the licensee's premises and reimburse the licensee for all

16

unregistered products that cannot be sold in this Commonwealth.

17

Section 7 8.  Section 461(d) of the act, amended December 21,

<--

18

1998 (P.L.1202, No.155), is amended to read:

19

Section 461.  Limiting Number of Retail Licenses To Be Issued

20

In Each County.--* * *

21

(d)  "Airport restaurant," as used in this section, shall

22

mean restaurant facilities at any airport for public

23

accommodation, which are owned or operated directly or through

24

lessees by the Commonwealth of Pennsylvania, by any municipal

25

authority, county or city, either severally or jointly, with any

26

other municipal authority, county or city, but shall not include

27

any such restaurant facilities at any airport situated in a

28

municipality where by vote of the electors the retail sale of

29

liquor and malt or brewed beverages is not permitted. An airport

30

restaurant is not subject to the seating requirements nor to the

- 20 -

 


1

square footage requirements of the definition of restaurant in

2

section 102. An airport restaurant may have unlimited extensions

3

of service areas providing all extended service areas are inside

4

the airport terminal building or buildings, notwithstanding any

5

intervening thoroughfares. In addition to the privileges granted

6

under sections 406 and 407 relative to malt or brewed beverages,

7

airport restaurant liquor licensees may also sell wine by the

8

glass, open bottle or other container for consumption off the

9

licensed premises and within the airport terminal building. 

10

Notwithstanding any provision to the contrary, an airport

11

restaurant licensee that has acquired a Sunday sales permit may

12

commence sales at seven o'clock antemeridian.

13

* * *

14

Section 8 9.  Section 468(a)(1) of the act, amended November

<--

15

29, 2006 (P.L.1421, No.155), is amended to read:

16

Section 468.  Licenses Not Assignable; Transfers.--(a)  (1)

17

Licenses issued under this article may not be assigned. The

18

board, upon payment of the transfer filing fee, is hereby

19

authorized to transfer any license issued by it under the

20

provisions of this article from one person to another or from

21

one place to another, or both. [If] Except for restaurant liquor

22

and eating place retail dispenser licenses transferred under

23

section 461(b.4), if the license is a retail license, [then] the

24

new location must be within the same county as the existing

25

location [except for restaurant liquor and eating place retail

26

dispenser licenses transferred under section 461(b.4)] or, if

27

the municipality is located in more than one county, within the

28

same municipality as the existing location.

29

* * *

30

Section 9 10.  Section 471 of the act is amended by adding a

<--

- 21 -

 


1

subsection to read:

2

Section 471.  Revocation and Suspension of Licenses; Fines.--

3

* * *

4

(f)  Upon becoming aware of a potential violation of section

5

445 or any associated regulation, the enforcement bureau shall

6

give written notice to each licensee who might be in violation

7

of this section or its corresponding regulation. If the

8

potential violation has been cured within ten days of receipt of

9

the written notice, the enforcement bureau shall take no further

10

action against the licensee. If the potential violation has not

11

been cured within ten days of receipt of the notice, the

12

enforcement bureau shall proceed in accordance with subsection

13

(a).

14

Section 11.  Section 472(d) of the act, added December 20,

<--

15

2000 (P.L.992, No.141), is amended to read:

16

Section 472.  Local Option.--* * *

17

(d)  Nothing in this section shall prohibit the board from

18

approving [the]:

19

(1)  The transfer of a retail license from a municipality

20

which has voted to prohibit the issuance of such a license to a

21

location in another municipality in the same county that allows

22

the issuance of that type of license.

23

(2)  The renewal or transfer of a restaurant liquor license

24

in a municipality which has voted to prohibit the issuance of

25

such a license if:

26

(i)  the license is located in a township of the second class

27

within a county of the third class;

28

(ii)  the license was originally issued prior to 1950; and

29

(iii)  the premises have been licensed for at least fifty

30

years.

- 22 -

 


1

* * *

2

Section 4 10 12.  Section 493(10) of the act, amended

<--

3

December 20, 2000 (P.L.992, No.141), is amended and the section

4

is amended by adding a paragraph to read:

5

Section 493.  Unlawful Acts Relative to Liquor, Malt and

6

Brewed Beverages and Licensees.--The term "licensee," when used

7

in this section, shall mean those persons licensed under the

8

provisions of Article IV, unless the context clearly indicates

9

otherwise.

10

It shall be unlawful--

11

* * *

12

(10)  Entertainment on Licensed Premises (Except Clubs);

13

Permits; Fees. For any licensee, his servants, agents or

14

employes, except club licensees, public venue licensees or

15

performing arts facility licensees, to permit in any licensed

16

premises or in any place operated in connection therewith,

17

dancing, theatricals or floor shows of any sort, or moving

18

pictures other than television, or such as are exhibited through

19

machines operated by patrons by the deposit of coins, which

20

project pictures on a screen not exceeding in size twenty-four

21

by thirty inches and which forms part of the machine, unless the

22

licensee shall first have obtained from the board a special

23

permit to provide such entertainment, or for any licensee, under

24

any circumstances, to permit in any licensed premises or in any

25

place operated in connection therewith any lewd, immoral or

26

improper entertainment, regardless of whether a permit to

27

provide entertainment has been obtained or not. The special

28

permit may be used only during the hours when the sale of liquor

29

or malt or brewed beverages is permitted, unless the licensee

30

holds an extended hours food license under section 499(b) which

- 23 -

 


1

license would allow the special permit to be used while the

2

establishment is open, and between eleven o'clock antemeridian

3

on Sunday and two o'clock antemeridian on the following Monday,

4

regardless of whether the licensee possesses a Sunday sales

5

permit. The board shall have power to provide for the issue of

6

such special permits, and to collect an annual fee for such

7

permits as prescribed in section 614-A of the act of April 9,

8

1929 (P.L.177, No.175), known as "The Administrative Code of

9

1929." All such fees shall be paid into the State Stores Fund.

10

No such permit shall be issued in any municipality which, by

11

ordinance, prohibits amusements in licensed places. Any

12

violation of this clause shall, in addition to the penalty

13

herein provided, subject the licensee to suspension or

14

revocation of his permit and his license.

15

* * *

16

(33)  Off-premises Catering Permit; Fees. For any licensee,

17

his servants, agents or employes to cater an event that includes

<--

18

the sale and service of alcoholic beverages at a location other

19

than the licensed premises, unless the licensee shall first have

20

obtained from the board a special permit to provide such

21

catering services sell alcohol at a location other than its

<--

22

licensed premises, unless the sale is specifically authorized

23

under this act, or unless the licensee receives a special permit

24

from the board to do so. Only those licensees currently holding

<--

25

a current and valid restaurant, hotel or eating place license

<--

26

that has been certified under the board's responsible alcohol

<--

27

management program as required by section 471.1 shall be allowed

28

to apply for such a permit. All servers at the off-premises

<--

29

catered event function shall be certified under the board's

<--

30

responsible alcohol management program as required under section

- 24 -

 


1

471.1. The board shall have the power to provide for the issue

<--

2

of such issue the special permits to qualified licensees and to

<--

3

collect an annual fee for such permits that shall not exceed

4

five hundred dollars ($500) per year may charge a fee of five

<--

5

hundred dollars ($500) each calendar year, to each applicant for

6

the initial permit associated with a particular license, but no

7

further fee shall be charged for any subsequent permits issued

8

to the applicant for the license during the same calendar year. 

9

All such The fees shall be paid into the State Stores Fund. Any

<--

10

violation of this act shall subject the licensee to suspension

<--

11

or revocation of his permit and preclude him from applying for a

12

future off-premises catering permit. or the board's regulations

<--

13

for governing activity occurring under the authority of this

14

permit may be the basis for the issuance of a citation under

15

section 471, the nonrenewal of the license under section 470 or

16

the refusal by the board to issue subsequent permits or honor

17

subsequent dates on the existing permit. This penalty shall be

18

in addition to any other remedies available to the enforcement

19

bureau or the board.

20

Section 11 13.  Section 505.2(a)(6.1) and (6.3) of the act,

<--

21

amended December 8, 2004 (P.L.1810, No.239), are amended and the

22

section is amended by adding a clause to read:

23

Section 505.2.  Limited Wineries.--(a)  In the interest of

24

promoting tourism and recreational development in Pennsylvania,

25

holders of a limited winery license may:

26

* * *

27

(4.1)  At the discretion of the board, obtain a farmers

28

market permit. The permit shall entitle the holder to

29

participate in more than one farmers market at any given time

30

and an unlimited number throughout the year and sell alcoholic

- 25 -

 


1

cider or wine produced under the authority of the underlying

2

limited winery license by the bottle or in case lots. Samples

3

not to exceed one fluid once per brand of wine may be offered

4

free of charge. A farmers market permit shall be issued upon

5

proper application and payment of an annual fee of two hundred

6

fifty dollars ($250). A permit holder may participate in more

7

than one farmers market at any given time. Sales by permit

8

holders shall take place during the standard hours of operation

9

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

10

location the permit is to be used shall be provided by the

11

permit holder to the enforcement bureau at least two (2) weeks

12

prior to the event. Except as provided in this subsection,

13

limited wineries utilizing farmers market permits shall be

14

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

15

all applicable regulations adopted by the board.

16

* * *

17

(6.1)  Sell food for consumption on or off the licensed

18

premises and at the limited winery's additional board-approved

19

locations and sell by the glass, at the licensed premises and at

20

the limited winery's additional board-approved locations, only

21

wine and alcoholic ciders that may otherwise be sold by the

22

bottle.

23

* * *

24

(6.3)  Sell alcoholic cider, wine and wine coolers only

25

between the hours of nine o'clock antemeridian and [nine

26

o'oclock] eleven o'clock postmeridian. [During the period from

27

Thanksgiving Day through New Year's Day, limited winery sales

28

locations may remain open to conform with the closing times of

29

neighboring mall or shopping district businesses but no later

30

than ten o'clock postmeridian.] A limited winery also may

- 26 -

 


1

request approval from the board to extend sales hours in

2

individual locations at other times during the year or beyond

3

the limits set forth in this clause. The request shall be made

4

in writing to the board's Office of the Chief Counsel and shall

5

detail the exact locations where sales hours are proposed to be

6

extended, the proposed hours and dates of extended operation and

7

the reason for the proposed extended hours.

8

* * *

9

Section 12 14.  All acts and parts of acts are repealed

<--

10

insofar as they are inconsistent with section 445 of the act.

11

Section 5 13 15.  This act shall take effect in 60 days. as

<--

12

follows:

13

(1)  The amendment of sections 441, 445 and 471 of the

14

act shall take effect in 60 days.

15

(2)  The amendment or addition of sections 406 and

16

505.2(a)(4.1) of the act shall take effect in 30 days.

17

(3)  The remainder of this act shall take effect

18

immediately.

- 27 -