Regular Session 2019-2020 House Bill 0947 P.N. 2898

SENATE AMENDED

PRIOR PRINTER'S NOS. 1073, 1329, 2176

PRINTER'S NO. 2898

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

947

Session of

2019

INTRODUCED BY SCHWEYER, FREEMAN, OTTEN, HILL-EVANS, SCHLOSSBERG,

MADDEN, KULIK, DEASY, RAVENSTAHL, MALAGARI, KORTZ, KENYATTA,

ZABEL, DELLOSO AND DONATUCCI, MARCH 25, 2019

AS AMENDED ON THIRD CONSIDERATION, IN SENATE, NOVEMBER 18, 2019

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 PROVIDING FOR DEFINITIONS; in

licenses and regulations, liquor, alcohol and malt and brewed

beverages, further providing for SALES BY LIQUOR LICENSEES

AND RESTRICTIONS, FOR PERFORMING ARTS FACILITY LICENSE, FOR

LIMITING NUMBER OF RETAIL LICENSES TO BE ISSUED IN EACH

COUNTY, FOR LICENSES NOT ASSIGNABLE AND TRANSFERS AND FOR

hours of operation relative to manufacturers, importing

distributors and distributors; and, in distilleries,

wineries, bonded warehouses, bailees for hire and

transporters for hire, further providing for distilleries.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

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Section 1. Sections 492.1(a) and 505.4(b)(1) and (5) and (c)

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

Liquor Code, are amended to read:

SECTION 1. SECTIONS 406(D), 413(F)(1), 492.1(A) AND 505.4(B)

(1) AND (5) AND (C) OF THE ACT OF APRIL 12, 1951 (P.L.90,

NO.21), KNOWN AS THE LIQUOR CODE, ARE AMENDED TO READ:

SECTION 1. SECTION 102 OF THE ACT OF APRIL 12, 1951 (P.L.90,

NO.21), KNOWN AS THE LIQUOR CODE, IS AMENDED BY ADDING A

DEFINITION 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:

* * *

"COMMERCIAL AND MIXED-USE OVERLAY PROJECT" SHALL MEAN A

PLANNED DEVELOPMENT:

(1) SITUATED ON AT LEAST TWENTY-FIVE ACRES;

(2) CONSTRUCTED SINCE JANUARY 1, 2019;

(3) WITH AT LEAST TWO HUNDRED SEVENTY-FIVE THOUSAND SQUARE

FEET OF ACTUAL OR PROPOSED DEVELOPMENT;

(4) WITH A MIX OF COMMERCIAL AND RESIDENTIAL USES; AND

(5) THAT IS ADJACENT TO AN EXISTING HOTEL PROPERTY WITH AT

LEAST NINETY ROOMS.

* * *

SECTION 2. SECTIONS 406(D) AND 413(F)(1) OF THE ACT ARE

AMENDED TO READ:

SECTION 406. SALES BY LIQUOR LICENSEES; RESTRICTIONS.--* * *

(D) SUBJECT TO SECTION 412, LICENSED PUBLIC VENUES MAY SELL

LIQUOR AND MALT OR BREWED BEVERAGES ON SUNDAYS FROM ELEVEN

O'CLOCK ANTEMERIDIAN UNTIL MIDNIGHT WITHOUT THE NEED TO ACQUIRE

OR QUALIFY FOR A SPECIAL PERMIT. IN ADDITION, SUBJECT TO SECTION

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413, LICENSED PERFORMING ARTS FACILITIES MAY SELL LIQUOR AND

MALT OR BREWED BEVERAGES ON SUNDAYS FROM [ONE O'CLOCK

POSTMERIDIAN] TEN O'CLOCK ANTEMERIDIAN UNTIL TEN O'CLOCK

POSTMERIDIAN WITHOUT THE NEED TO ACQUIRE OR QUALIFY FOR A

SPECIAL PERMIT.

* * *

SECTION 413. PERFORMING ARTS FACILITY LICENSE.--* * *

(F) LICENSES ISSUED UNDER THIS SECTION ARE TO BE CONSIDERED

RESTAURANT LIQUOR LICENSES. HOWEVER, THE FOLLOWING ADDITIONAL

RESTRICTIONS AND PRIVILEGES APPLY:

(1) SALES OF LIQUOR AND MALT OR BREWED BEVERAGES MAY BE MADE

TWO HOURS BEFORE, DURING AND ONE HOUR AFTER ANY PERFORMANCE AT

THE FACILITY; HOWEVER, SALES MAY NOT BE MADE FROM TWO O'CLOCK

ANTEMERIDIAN TO SEVEN O'CLOCK ANTEMERIDIAN. IN ADDITION, SALES

MAY NOT OCCUR PRIOR TO [ONE O'CLOCK POSTMERIDIAN] TEN O'CLOCK

ANTEMERIDIAN OR AFTER TEN O'CLOCK POSTMERIDIAN ON SUNDAYS.

HOWEVER, FACILITIES THAT HAD BEEN LICENSED UNDER FORMER SECTION

408.3(A) AND 408.3(A.2) MAY SELL LIQUOR AND MALT OR BREWED

BEVERAGES ANYTIME EXCEPT FROM TWO O'CLOCK ANTEMERIDIAN TO SEVEN

O'CLOCK ANTEMERIDIAN OR PRIOR TO ONE O'CLOCK POSTMERIDIAN OR

AFTER TEN O'CLOCK POSTMERIDIAN ON SUNDAYS, REGARDLESS OF WHETHER

THERE IS A PERFORMANCE AT THE FACILITY.

* * *

SECTION 3. SECTION 461(A) OF THE ACT, AMENDED JULY 2, 2019

(P.L.371, NO.57), IS AMENDED AND THE SECTION IS AMENDED BY

ADDING A SUBSECTION TO READ:

SECTION 461. LIMITING NUMBER OF RETAIL LICENSES TO BE ISSUED

IN EACH COUNTY.--(A) NO ADDITIONAL RESTAURANT, EATING PLACE

RETAIL DISPENSER OR CLUB LICENSES SHALL BE ISSUED WITHIN A

COUNTY IF THE TOTAL NUMBER OF RESTAURANT AND EATING PLACE RETAIL

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DISPENSER LICENSES IS GREATER THAN ONE LICENSE FOR EACH THREE

THOUSAND INHABITANTS IN THE COUNTY, EXCEPT THE BOARD MAY ISSUE

LICENSES TO PUBLIC VENUES, PERFORMING ARTS FACILITIES,

CONTINUING CARE RETIREMENT COMMUNITIES, AIRPORT RESTAURANTS,

MUNICIPAL GOLF COURSES, HOTELS, PRIVATELY-OWNED PRIVATE GOLF

COURSES, PRIVATELY-OWNED PUBLIC GOLF COURSES, RACETRACKS,

AUTOMOBILE RACETRACKS, NONPRIMARY PARI-MUTUEL WAGERING

LOCATIONS, PRIVATELY-OWNED SKI RESORTS AND TO ANY OTHER ENTITY

WHICH THIS ACT SPECIFICALLY EXEMPTS FROM THE LIMITATIONS

PROVIDED IN THIS SECTION, AND THE BOARD MAY ISSUE A LICENSE TO A

CLUB SITUATED IN A BOROUGH HAVING A POPULATION LESS THAN EIGHT

THOUSAND INHABITANTS WHICH IS LOCATED IN A COUNTY OF THE SECOND

CLASS A WHOSE APPLICATION IS FILED ON OR BEFORE FEBRUARY 28,

2001. IN ADDITION, THE BOARD MAY ISSUE AN EATING PLACE RETAIL

DISPENSER LICENSE FOR ON-PREMISES SALES ONLY TO THE OWNER OR

OPERATOR OF A FACILITY HAVING A MINIMUM OF A ONE-HALF MILE

ASPHALT TRACK AND HAVING A PERMANENT SEATING CAPACITY OF AT

LEAST SIX THOUSAND PEOPLE USED PRINCIPALLY FOR HOLDING

AUTOMOBILE RACES, REGARDLESS OF THE NUMBER OF RESTAURANT AND

EATING PLACE RETAIL DISPENSER LICENSES ALREADY ISSUED IN THAT

COUNTY. WHEN DETERMINING THE NUMBER OF RESTAURANT AND EATING

PLACE RETAIL DISPENSER LICENSES ISSUED IN A COUNTY FOR THE

PURPOSES OF THIS SECTION, LICENSES EXEMPTED FROM THIS

LIMITATION, LICENSES SUBJECT TO THE MIXED-USE TOWN DEVELOPMENT

PROJECT PROVISIONS OF THIS ACT, LICENSES SUBJECT TO THE

COMMERCIAL AND MIXED-USE OVERLAY PROJECT PROVISIONS OF THIS ACT,

LICENSES SUBJECT TO THE TOURIST DEVELOPMENT PROJECT PROVISIONS

OF THIS ACT AND CLUB LICENSES SHALL NOT BE CONSIDERED.

INHABITANTS OF DRY MUNICIPALITIES SHALL BE CONSIDERED WHEN

DETERMINING THE POPULATION IN A COUNTY. LICENSES SHALL NOT BE

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ISSUED OR TRANSFERRED INTO MUNICIPALITIES WHERE SUCH LICENSES

ARE PROHIBITED PURSUANT TO LOCAL REFERENDUM IN ACCORDANCE WITH

SECTION 472. LICENSES APPROVED FOR INTERMUNICIPAL TRANSFER MAY

NOT BE TRANSFERRED FROM THE RECEIVING MUNICIPALITY FOR A PERIOD

OF FIVE YEARS AFTER THE DATE THAT THE LICENSED PREMISES ARE

OPERATIONAL IN THE RECEIVING MUNICIPALITY.

* * *

(B.6) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, THE

BOARD MAY APPROVE THE TRANSFER OF A RESTAURANT LIQUOR LICENSE,

AVAILABLE FOR AUCTION UNDER SECTION 470.3, TO ANY COUNTY FOR THE

PURPOSES OF A COMMERCIAL AND MIXED-USE OVERLAY PROJECT, SUBJECT

TO THE FOLLOWING CONDITIONS:

(1) THE PROPOSED PROJECT MUST BE A COMMERCIAL AND MIXED-USE

OVERLAY PROJECT AND MUST BE LOCATED WITHIN A MUNICIPALITY THAT

ALLOWS FOR THE ISSUANCE AND TRANSFER OF RESTAURANT LIQUOR

LICENSES UNDER SECTION 472.

(2) THE INITIAL APPLICATION MAY BE SUBMITTED TO THE BOARD BY

AN INTERESTED PARTY. THE APPLICATION SHALL BE ACCOMPANIED BY A

RESOLUTION OR ORDINANCE INDICATING THAT THE MUNICIPALITY WHERE

THE PROPOSED PROJECT IS LOCATED HAS APPROVED THE REQUEST TO HAVE

THE AREA DESIGNATED AS A COMMERCIAL AND MIXED-USE OVERLAY

PROJECT BY THE BOARD, A MAP OF THE AREA PROPOSED TO BE SO

DESIGNATED AND ANY ADDITIONAL INFORMATION THE BOARD MAY REQUIRE.

(3) THE APPLICATION SHALL INDICATE THE NUMBER OF LICENSES

THAT THE APPLICANT IS SEEKING TO TRANSFER, UP TO TWENTY

LICENSES. IN ADDITION TO THE NORMAL APPLICATION AND LICENSE FEES

FOR A RESTAURANT LIQUOR LICENSE, THE APPLICATION SHALL BE

ACCOMPANIED BY A TWENTY-FIVE THOUSAND DOLLAR ($25,000) SURCHARGE

FOR EACH LICENSE.

(4) UPON RECEIPT OF A COMPLETED APPLICATION THAT SATISFIES

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BOARD REQUIREMENTS, THE BOARD SHALL APPROVE THE REQUEST AND

DEPOSIT THE TWENTY-FIVE THOUSAND DOLLAR ($25,000) SURCHARGE PER

LICENSE INTO THE STATE STORES FUND. EACH LICENSE SHALL BE HELD

IN SAFEKEEPING FOR THE BENEFIT OF THE APPLICANT UNTIL THE

APPLICANT FILES A FORMAL TRANSFER APPLICATION. THE APPLICANT MAY

ASSIGN THE APPLICANT'S RIGHTS TO FILE A FORMAL TRANSFER

APPLICATION TO A THIRD PARTY.

(5) THE BOARD MAY CHOOSE THE SPECIFIC LICENSES THAT WILL BE

MADE AVAILABLE FOR TRANSFER BUT PREFERENCE SHALL BE GIVEN TO

LICENSES FROM A SATURATED COUNTY, IF THEY ARE AVAILABLE, UP TO

THE MAXIMUM NUMBER OF LICENSES THAT MAY BE ACCEPTED FROM THAT

COUNTY.

(6) FOR PURPOSES OF THIS SUBSECTION, THE MAXIMUM NUMBER OF

LICENSES THAT MAY BE ACCEPTED FROM A COUNTY SHALL BE CALCULATED

BY SUBTRACTING FROM THE TOTAL NUMBER OF RESTAURANT LIQUOR

LICENSES IN THE COUNTY, A NUMBER EQUAL TO 2.64 TIMES THE COUNTY

POPULATION DIVIDED BY THREE THOUSAND (3,000).

(7) A LICENSE PLACED IN SAFEKEEPING UNDER PARAGRAPH (4) MAY

BE HELD FOR UP TO FOUR YEARS FROM THE DATE THE BOARD APPROVES

THE APPLICATION AND SHALL BE EXEMPT FROM THE ADDITIONAL

SAFEKEEPING FEES IMPOSED UNDER SECTION 474.1. THE LICENSE SHALL

BE SUBJECT TO ALL OTHER FEES, INCLUDING RENEWAL FEES AND THE

APPLICATION SURCHARGE IMPOSED UNDER SECTION 470. UPON EXPIRATION

OF THE FOUR-YEAR PERIOD, THE LICENSE SHALL BE REVOKED UNLESS THE

APPLICANT HAS SUBMITTED A TRANSFER APPLICATION PRIOR TO

EXPIRATION. IF A LICENSE IS REVOKED, THE APPLICANT IS NOT

ENTITLED TO A REFUND.

(8) A LICENSE TRANSFERRED UNDER THIS SUBSECTION IS SUBJECT

TO ALL OF THE FOLLOWING:

(I) THE LICENSE MAY NOT BE TRANSFERRED TO A LOCATION OUTSIDE

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OF THE COMMERCIAL AND MIXED-USE OVERLAY PROJECT.

(II) THE LICENSE IS INELIGIBLE FOR A WINE EXPANDED PERMIT

UNDER SECTION 415.

(III) THE LICENSEE MAY NOT SELL MALT AND BREWED BEVERAGES

FOR OFF-PREMISES CONSUMPTION.

(9) A LICENSE TRANSFERRED INTO A NEW COUNTY UNDER THIS

SUBSECTION IS SUBJECT TO ALL OF THE FOLLOWING:

(I) THE LICENSE SHALL NOT BE COUNTED TOWARD, NOR BE SUBJECT

TO, THE COUNTY QUOTA SET FORTH IN SECTION 461.

(II) THE LICENSE SHALL HAVE ITS RENEWAL AND VALIDATION DATES

AMENDED TO MATCH THE RENEWAL AND VALIDATION DATE OF THE LICENSES

IN THE COUNTY.

* * *

SECTION 4. SECTION 468(A)(1) OF THE ACT, AMENDED JULY 2,

2019 (P.L.371, NO.57), IS AMENDED TO READ:

SECTION 468. LICENSES NOT ASSIGNABLE; TRANSFERS.--(A) (1)

LICENSES ISSUED UNDER THIS ARTICLE MAY NOT BE ASSIGNED. THE

BOARD, UPON PAYMENT OF THE TRANSFER FILING FEE, IS HEREBY

AUTHORIZED TO TRANSFER ANY LICENSE ISSUED BY IT UNDER THE

PROVISIONS OF THIS ARTICLE FROM ONE PERSON TO ANOTHER OR FROM

ONE PLACE TO ANOTHER, OR BOTH. EXCEPT FOR RESTAURANT LIQUOR AND

EATING PLACE RETAIL DISPENSER LICENSES TRANSFERRED UNDER SECTION

461(B.4) AND RESTAURANT LIQUOR LICENSES TRANSFERRED UNDER

SECTION 461(B.5) AND (B.6), IF THE LICENSE IS A RETAIL LICENSE,

THE NEW LOCATION MUST BE WITHIN THE SAME COUNTY AS THE EXISTING

LOCATION OR, IF THE MUNICIPALITY IS LOCATED IN MORE THAN ONE

COUNTY, WITHIN THE SAME MUNICIPALITY AS THE EXISTING LOCATION.

* * *

SECTION 4.1. SECTION 492.1(A) OF THE ACT IS AMENDED TO READ:

Section 492.1. Hours of Operation Relative to Manufacturers,

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Importing Distributors and Distributors.--(a) (1)

Manufacturers may sell or deliver malt or brewed beverages

between two o'clock antemeridian of any Monday and twelve

o'clock midnight of the following Saturday.

(2) Notwithstanding any other provision of law,

manufacturers may sell malt and brewed beverages and alcohol

subject to section 446(a)(2) for on-premises consumption between

the hours of nine o'clock antemeridian and twelve o'clock

antemeridian Monday through Saturday and Sunday between the

hours of nine o'clock antemeridian and eleven o'clock

postmeridian.

* * *

SECTION 4.2. SECTION 505.4(B)(1) AND (5) AND (C) OF THE ACT,

AMENDED JULY 2, 2019 (P.L.324, NO.45), IS AMENDED TO READ:

Section 505.4. Distilleries.--* * *

(b) (1) The board may issue a limited distillery license

that will allow the holder thereof to operate a distillery that

shall not exceed production of one hundred thousand (100,000)

gallons of distilled liquor per year. The holder of the license

may manufacture and sell bottled liquors produced on the

licensed premises to the board, to entities licensed by the

board and to the public between the hours of nine o'clock

antemeridian and [eleven o'clock postmeridian] twelve o'clock

antemeridian Monday through Saturday and Sunday between the

hours of nine o'clock antemeridian through eleven o'clock

postmeridian so long as a specific code of distilled liquor

which is listed for sale as a stock item by the board in State

liquor stores may not be offered for sale at a licensed limited

distillery location at a price which is lower than that charged

by the board and under such conditions and regulations as the

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board may enforce. The holder of a limited distillery license

may not sell a product or a substantially similar product which

is listed for sale as a stock item by the board in State Liquor

Stores to a licensee at a price which is lower than that charged

by the board and under such conditions and regulations as the

board may enforce. The holder of a limited distillery license

may also sell wine and alcoholic cider produced by a licensed

limited winery, liquor produced by a licensed distillery or

limited distillery and malt or brewed beverages produced by a

licensed brewery for on-premises consumption. The combined sales

of wine, malt or brewed beverages and liquor produced by another

licensed distillery or limited distillery may not, on a yearly

basis, exceed fifty per centum of the on-premises sales of the

limited distillery's own sales of liquor for the preceding

calendar year: however, if a limited distillery did not operate

for an entire calendar year during the preceding year, then its

combined sales of wine, malt or brewed beverages and liquor

produced by another licensed distillery or limited distillery

may not, on a yearly basis, exceed fifty per centum of the on-

premises sales of the limited distillery's own liquor for that

year.

* * *

(5) The holder of a limited distillery license may provide

tasting samples of liquor that in total do not exceed one and

one-half (1.5) fluid ounces per person on the licensed premises

and at the two (2) board-approved locations. Samples may be sold

or provided free of charge and may only be provided between the

hours of nine o'clock antemeridian and [eleven o'clock

postmeridian] twelve o'clock antemeridian Monday through

Saturday and Sunday between the hours of nine o'clock

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antemeridian through eleven o'clock postmeridian.

* * *

section 505 may sell bottled liquors produced on the licensed

premises to the board, to entities licensed by the board and to

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

[eleven o'clock postmeridian] twelve o'clock antemeridian Monday

through Saturday and Sunday between the hours of nine o'clock

antemeridian through eleven o'clock postmeridian so long as a

specific code of distilled liquor which is listed for sale as a

stock item by the board in State liquor stores may not be

offered for sale at a licensed distillery location at a price

which is lower than that charged by the board and under such

conditions and regulations as the board may enforce. The holder

of a distillery license may not sell a product or a

substantially similar product which is listed for sale as a

stock item by the board in State Liquor Stores to a licensee at

a price which is lower than that charged by the board and under

such conditions and regulations as the board may enforce. The

holder of a distillery license may also sell its liquor, wine

and alcoholic cider produced by a licensed limited winery,

liquor produced by a licensed distillery or limited distillery

and malt or brewed beverages produced by a licensed brewery for

on-premises consumption. The combined sales of wine, malt or

brewed beverages and liquor produced by another licensed

distillery or limited distillery may not, on a yearly basis,

exceed fifty per centum of the on-premises sales of the

distillery's own sales of liquor for the preceding calendar

year: however, if a distillery did not operate for an entire

calendar year during the preceding year, then its combined sales

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of wine, malt or brewed beverages and liquor produced by another

licensed distillery or limited distillery may not, on a yearly

basis, exceed fifty per centum of the on-premises sales of the

distillery's own liquor for that year.

(2) The holder of a distillery license as issued under

section 505 may provide tasting samples of liquor that in total

do not exceed one and one-half (1.5) fluid ounces. Samples may

be sold or provided free of charge between the hours of nine

o'clock antemeridian and [eleven o'clock postmeridian] twelve

o'clock antemeridian Monday through Saturday and Sunday between

the hours of nine o'clock antemeridian through eleven o'clock

postmeridian.

Section 2 5. This act shall take effect in 60 days. AS

FOLLOWS:

(1) THE FOLLOWING PROVISIONS SHALL TAKE EFFECT

IMMEDIATELY:

(I) THIS SECTION.

(II) THE AMENDMENT OR ADDITION OF SECTIONS 406(D),

413(F)(1), 492.1(A)(2) AND 505.4(B)(1), (5) AND (C) OF

THE ACT.

(2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60 DAYS.

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