Regular Session 2019-2020 House Bill 1048 P.N. 3863

SENATE AMENDED

PRIOR PRINTER'S NOS. 1211, 3721

PRINTER'S NO. 3863

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1048

Session of

2019

INTRODUCED BY KNOWLES, RYAN, SNYDER, QUINN, READSHAW, BERNSTINE,

KAUFFMAN, CIRESI, CAUSER, BARRAR, DUNBAR, MILLARD,

RAVENSTAHL, PICKETT, HILL-EVANS, MACKENZIE, CONKLIN,

F. KELLER, MURT, DeLUCA, JONES, DEASY, FARRY, SAINATO, KORTZ,

STAATS, O'MARA, GILLEN, MARSHALL, LAWRENCE, KRUEGER, ZABEL,

WENTLING, NESBIT, DELLOSO, SAPPEY, MALAGARI, CALTAGIRONE,

T. DAVIS, COX, McNEILL, MULLINS, KULIK AND IRVIN,

APRIL 5, 2019

AS AMENDED ON THIRD CONSIDERATION, IN SENATE, MAY 27, 2020

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

licenses and regulations for liquor, alcohol and malt and

brewed beverages, further providing for sale of malt or

brewed beverages by liquor licensees.

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

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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

LICENSES AND REGULATIONS FOR LIQUOR, ALCOHOL AND MALT AND

BREWED BEVERAGES, FURTHER PROVIDING FOR ISSUANCE, TRANSFER OR

EXTENSION OF HOTEL, RESTAURANT AND CLUB LIQUOR LICENSES, FOR

SALE OF MALT OR BREWED BEVERAGES BY LIQUOR LICENSEES, FOR

WINE EXPANDED PERMITS, FOR MALT AND BREWED BEVERAGES

MANUFACTURERS', DISTRIBUTORS' AND IMPORTING DISTRIBUTORS'

LICENSES, FOR MALT AND BREWED BEVERAGES RETAIL LICENSES, FOR

RETAIL DISPENSERS' RESTRICTIONS ON PURCHASES AND SALES AND

FOR RENEWAL OF LICENSES AND TEMPORARY PROVISIONS FOR

LICENSEES IN ARMED SERVICE.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 407 of the act of April 12, 1951 (P.L.90,

No.21), known as the Liquor Code, is amended by adding a

subsection to read:

Section 407. Sale of Malt or Brewed Beverages by Liquor

Licensees.--* * *

application for renewal or validation of a license under the

provisions of this article to a national veterans' organization

or a volunteer fire company shall not be subject to the

application surcharge.

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

SECTION 1. SECTION 470(A) OF THE ACT OF APRIL 12, 1951

(P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, IS AMENDED TO READ:

SECTION 1. SECTIONS 404(A) AND 407(A) OF THE ACT OF APRIL

12, 1951 (P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, ARE AMENDED

TO READ:

SECTION 404. ISSUANCE, TRANSFER OR EXTENSION OF HOTEL,

RESTAURANT AND CLUB LIQUOR LICENSES.--(A) UPON RECEIPT OF THE

APPLICATION AND THE PROPER FEES, AND UPON BEING SATISFIED OF THE

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TRUTH OF THE STATEMENTS IN THE APPLICATION THAT THE APPLICANT

AND MANAGEMENT COMPANY OR COMPANIES, IF ANY, ARE THE ONLY

PERSONS IN ANY MANNER PECUNIARILY INTERESTED IN THE BUSINESS SO

ASKED TO BE LICENSED AND THAT NO OTHER PERSON WILL BE IN ANY

MANNER PECUNIARILY INTERESTED THEREIN DURING THE CONTINUANCE OF

THE LICENSE, EXCEPT AS HEREINAFTER PERMITTED, AND THAT THE

APPLICANT IS A PERSON OF GOOD REPUTE, THAT THE PREMISES APPLIED

FOR MEET ALL THE REQUIREMENTS OF THIS ACT AND THE REGULATIONS OF

THE BOARD, THAT THE APPLICANT SEEKS A LICENSE FOR A HOTEL,

RESTAURANT OR CLUB, AS DEFINED IN THIS ACT, AND THAT THE

ISSUANCE OF SUCH LICENSE IS NOT PROHIBITED BY ANY OF THE

PROVISIONS OF THIS ACT, THE BOARD SHALL, IN THE CASE OF A HOTEL

OR RESTAURANT, GRANT AND ISSUE TO THE APPLICANT A LIQUOR

LICENSE, AND IN THE CASE OF A CLUB MAY, IN ITS DISCRETION, ISSUE

OR REFUSE A LICENSE: PROVIDED, HOWEVER, THAT IN THE CASE OF ANY

NEW LICENSE OR THE TRANSFER OF ANY LICENSE TO A NEW LOCATION OR

THE EXTENSION OF AN EXISTING LICENSE TO COVER AN ADDITIONAL AREA

THE BOARD MAY, IN ITS DISCRETION, GRANT OR REFUSE SUCH NEW

LICENSE, TRANSFER OR EXTENSION 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, TRANSFER OR EXTENSION IS APPLIED FOR A PLACE WHICH

IS WITHIN TWO HUNDRED FEET OF ANY OTHER PREMISES WHICH IS

LICENSED BY THE BOARD: AND PROVIDED FURTHER, THAT THE BOARD'S

AUTHORITY TO REFUSE TO GRANT A LICENSE BECAUSE OF ITS PROXIMITY

TO A CHURCH, HOSPITAL, CHARITABLE INSTITUTION, PUBLIC PLAYGROUND

OR OTHER LICENSED PREMISES SHALL NOT BE APPLICABLE TO LICENSE

APPLICATIONS SUBMITTED FOR PUBLIC VENUES OR PERFORMING ARTS

FACILITIES: AND PROVIDED FURTHER, THAT THE BOARD SHALL REFUSE

ANY APPLICATION FOR A NEW LICENSE, THE TRANSFER OF ANY LICENSE

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TO A NEW LOCATION OR THE EXTENSION OF AN EXISTING LICENSE TO

COVER AN ADDITIONAL AREA IF, IN THE BOARD'S OPINION, SUCH NEW

LICENSE, TRANSFER OR EXTENSION 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: AND PROVIDED FURTHER, THAT 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. [THE BOARD SHALL NOT LICENSE THE AREA WHERE LIQUID

FUELS OR OIL IS SOLD. NO SALES OF LIQUID FUELS OR OIL MAY BE

MADE FROM A LICENSEE'S LICENSED PREMISES. A LICENSED PREMISES

MAY NOT HAVE AN INTERIOR CONNECTION WITH A LOCATION THAT SELLS

LIQUID FUELS OR OIL UNLESS IT FIRST RECEIVES PERMISSION FROM THE

BOARD FOR THE INTERIOR CONNECTION. THE APPROVAL SHALL BE

REQUIRED REGARDLESS OF WHETHER THE LICENSEE OR ANOTHER PARTY IS

THE ENTITY SELLING THE LIQUID FUELS OR OIL.] THE BOARD MAY ENTER

INTO AN AGREEMENT WITH THE APPLICANT CONCERNING ADDITIONAL

RESTRICTIONS ON THE LICENSE IN QUESTION. IF THE BOARD AND THE

APPLICANT ENTER INTO SUCH AN AGREEMENT, SUCH AGREEMENT SHALL BE

BINDING ON THE APPLICANT. FAILURE BY THE APPLICANT TO ADHERE TO

THE AGREEMENT WILL BE SUFFICIENT CAUSE TO FORM THE BASIS FOR A

CITATION UNDER SECTION 471 AND FOR THE NONRENEWAL OF THE LICENSE

UNDER SECTION 470. IF THE BOARD ENTERS INTO AN AGREEMENT WITH AN

APPLICANT CONCERNING ADDITIONAL RESTRICTIONS, THOSE RESTRICTIONS

SHALL BE BINDING ON SUBSEQUENT HOLDERS OF THE LICENSE UNTIL THE

LICENSE IS TRANSFERRED TO A NEW LOCATION OR UNTIL THE BOARD

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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 MAY, IN ITS DISCRETION,

REFUSE AN APPLICATION FOR AN ECONOMIC DEVELOPMENT LICENSE UNDER

SECTION 461(B.1) OR AN APPLICATION FOR AN INTERMUNICIPAL

TRANSFER OF A LICENSE IF THE BOARD RECEIVES A PROTEST FROM THE

GOVERNING BODY OF THE RECEIVING MUNICIPALITY. THE RECEIVING

MUNICIPALITY OF AN INTERMUNICIPAL TRANSFER OR AN ECONOMIC

DEVELOPMENT LICENSE UNDER SECTION 461(B.1) MAY FILE A PROTEST

AGAINST THE TRANSFER OF A LICENSE INTO ITS MUNICIPALITY, AND THE

RECEIVING MUNICIPALITY SHALL HAVE STANDING IN A HEARING TO

PRESENT TESTIMONY IN SUPPORT OF OR AGAINST THE ISSUANCE OR

TRANSFER OF A LICENSE. UPON ANY OPENING IN ANY QUOTA, AN

APPLICATION FOR A NEW LICENSE SHALL ONLY BE FILED WITH THE BOARD

FOR A PERIOD OF SIX MONTHS FOLLOWING SAID OPENING.

* * *

SECTION 407. SALE OF MALT OR BREWED BEVERAGES BY LIQUOR

LICENSEES.--(A) (1) EVERY LIQUOR LICENSE ISSUED TO A HOTEL,

RESTAURANT, CLUB, OR A RAILROAD, PULLMAN OR STEAMSHIP COMPANY

UNDER THIS SUBDIVISION (A) FOR THE SALE OF LIQUOR SHALL

AUTHORIZE THE LICENSEE TO SELL MALT OR BREWED BEVERAGES AT THE

SAME PLACES BUT SUBJECT TO THE SAME RESTRICTIONS AND PENALTIES

AS APPLY TO SALES OF LIQUOR, EXCEPT THAT LICENSEES OTHER THAN

CLUBS MAY SELL MALT OR BREWED BEVERAGES FOR CONSUMPTION OFF THE

PREMISES WHERE SOLD IN QUANTITIES OF NOT MORE THAN ONE HUNDRED

NINETY-TWO FLUID OUNCES IN A SINGLE SALE TO ONE PERSON. THE

SALES MAY BE MADE IN EITHER OPEN OR CLOSED CONTAINERS, PROVIDED,

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HOWEVER, THAT A MUNICIPALITY MAY ADOPT AN ORDINANCE RESTRICTING

OPEN CONTAINERS IN PUBLIC PLACES. NO LICENSEE UNDER THIS

SUBDIVISION (A) SHALL AT THE SAME TIME BE THE HOLDER OF ANY

OTHER CLASS OF LICENSE, EXCEPT A RETAIL DISPENSER'S LICENSE

AUTHORIZING THE SALE OF MALT OR BREWED BEVERAGES ONLY. SALES OF

MALT OR BREWED BEVERAGES MUST OCCUR ON THE LICENSED PREMISES.

(2) IF A RESTAURANT LIQUOR LICENSE HOLDER HAS AN INTERIOR

CONNECTION TO ANOTHER BUSINESS THAT IT OPERATES, THE RESTAURANT

LIQUOR LICENSE HOLDER MAY USE ONE OR MORE OF THE REGISTERS IN

THE OTHER BUSINESS TO SELL MALT OR BREWED BEVERAGES FOR OFF-

PREMISES CONSUMPTION UNDER THE FOLLOWING CONDITIONS:

(I) THE BUILDING IS ELEVEN THOUSAND (11,000) SQUARE FEET OR

LESS;

(II) THE REGISTERS ARE LOCATED IN THE SAME BUILDING AS THE

LICENSED PREMISES;

(III) THE REGISTERS COMPLY WITH THE SIGNAGE, STAFFING,

TRAINING, CARDING, SCANNING AND PROHIBITION ON THE SHARING OF

DATA PROVISIONS OF SECTION 415(A)(8) AND (9); AND

(IV) THE BOARD HAS BEEN PROVIDED NOTICE OF COMPLIANCE WITH

THIS PARAGRAPH BY THE RESTAURANT LIQUOR LICENSE HOLDER,

INCLUDING SQUARE FOOTAGE OF THE BUILDING AND THE LOCATION OF THE

SPECIFIC REGISTERS TO BE USED PRIOR TO THEIR USE.

(3) THE REGISTERS USED UNDER PARAGRAPH (2) SHALL BE DEEMED

TO BE LICENSED AREAS BUT NO FORMAL APPLICATION BEYOND NOTICE TO

THE BOARD SHALL BE REQUIRED. THE REGISTERS MAY BE USED BY THE

OTHER BUSINESS.

* * *

SECTION 2. SECTION 415(A)(9) OF THE ACT IS AMENDED AND THE

SUBSECTION IS AMENDED BY ADDING PARAGRAPHS TO READ:

SECTION 415. WINE EXPANDED PERMITS.--(A) * * *

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(9) A SALE OF WINE BY A WINE EXPANDED PERMIT HOLDER SHALL BE

MADE THROUGH A REGISTER, WHICH MALT OR BREWED BEVERAGES AND

RESTAURANT FOODS SALES ARE MADE ON THE LICENSED PREMISES, WHICH

IS WELL DESIGNATED WITH SIGNAGE, WHICH IS STAFFED AT ALL TIMES

WHEN PATRONS ARE ON THE LICENSED PREMISES[, WHICH IS STAFFED].

THE ACTUAL SALE SHALL BE CONDUCTED BY A SALES CLERK WHO IS AT

LEAST EIGHTEEN YEARS OF AGE AND HAS BEEN TRAINED UNDER SECTION

471.1 AND WHICH UTILIZES A TRANSACTION SCAN DEVICE FOR THE SALE

AS SET FORTH IN PARAGRAPH (8). THE SALE OF WINE MAY NOT OCCUR AT

A POINT OF SALE WHERE THE CUSTOMER SCANS THE CUSTOMER'S OWN

PURCHASES. SALES OF WINE MUST OCCUR ON THE LICENSED PREMISES.

(10) IF A WINE EXPANDED PERMIT HOLDER HAS AN INTERIOR

CONNECTION TO ANOTHER BUSINESS THAT IT OPERATES, THE WINE

EXPANDED PERMIT HOLDER MAY USE ONE OR MORE OF THE REGISTERS IN

THE OTHER BUSINESS TO SELL WINE FOR OFF-PREMISES CONSUMPTION

UNDER THE FOLLOWING CONDITIONS:

(I) THE BUILDING IS ELEVEN THOUSAND (11,000) SQUARE FEET OR

LESS;

(II) THE REGISTERS ARE LOCATED IN THE SAME BUILDING AS THE

LICENSED PREMISES;

(III) THE REGISTERS COMPLY WITH THE SIGNAGE, STAFFING,

TRAINING, CARDING, SCANNING AND PROHIBITION ON THE SHARING OF

DATA PROVISIONS OF PARAGRAPHS (8) AND (9); AND

(IV) THE BOARD HAS BEEN PROVIDED NOTICE OF COMPLIANCE WITH

THIS PARAGRAPH BY THE WINE EXPANDED PERMIT HOLDER, INCLUDING

SQUARE FOOTAGE OF THE BUILDING AND THE LOCATION OF THE SPECIFIC

REGISTERS TO BE USED PRIOR TO THEIR USE.

(11) THE REGISTERS USED UNDER PARAGRAPH (10) SHALL BE DEEMED

TO BE LICENSED AREAS BUT NO FORMAL APPLICATION BEYOND NOTICE TO

THE BOARD SHALL BE REQUIRED. THE REGISTERS MAY BE USED BY THE

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OTHER BUSINESS.

* * *

SECTION 3. SECTIONS 431(B), 432(D), 442(A) AND 470(A) OF THE

ACT ARE 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

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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

PROVIDED FURTHER, THAT THE BOARD SHALL REFUSE ANY APPLICATION

FOR A NEW LICENSE OR THE TRANSFER OF ANY LICENSE TO A NEW

LOCATION IF, IN THE BOARD'S OPINION, SUCH NEW LICENSE OR

TRANSFER WOULD BE DETRIMENTAL TO THE WELFARE, HEALTH, PEACE AND

MORALS OF THE INHABITANTS OF THE NEIGHBORHOOD WITHIN A RADIUS OF

FIVE HUNDRED FEET OF THE PLACE PROPOSED TO BE LICENSED. [THE

BOARD SHALL NOT LICENSE THE AREA WHERE LIQUID FUELS OR OIL IS

SOLD. NO SALES OF LIQUID FUELS OR OIL MAY BE MADE FROM A

LICENSEE'S LICENSED PREMISES. A LICENSED PREMISES MAY NOT HAVE

AN INTERIOR CONNECTION WITH A LOCATION THAT SELLS LIQUID FUELS

OR OIL UNLESS IT FIRST RECEIVES PERMISSION FROM THE BOARD FOR

THE INTERIOR CONNECTION. THE APPROVAL SHALL BE REQUIRED

REGARDLESS OF WHETHER THE LICENSEE OR ANOTHER PARTY IS THE

ENTITY SELLING THE LIQUID FUELS OR OIL.] THE BOARD MAY ENTER