Regular Session 2021-2022 House Bill 1615 P.N. 2990

SENATE AMENDED

PRIOR PRINTER'S NOS. 1789, 2308

PRINTER'S NO. 2990

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1615

Session of

2021

INTRODUCED BY TOPPER, JUNE 11, 2021

SENATOR REGAN, LAW AND JUSTICE, IN SENATE, AS AMENDED,

APRIL 13, 2022

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 and liquor, alcohol and malt and

brewed beverages, further providing for breweries.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 446(a)(1), (2) and (3) of the act of

April 12, 1951 (P.L.90, No.21), known as the Liquor Code, are

amended and subsection (a) is amended by adding a paragraph to

read:

Section 446. Breweries.--(a) Holders of a brewery license

may:

(1) Sell malt or brewed beverages [produced at the location

and owned by the brewery] as provided in this section under such

conditions and regulations as the board may enforce[, to

individuals for consumption on the licensed premises in any

container or package of any volume and to hotel, restaurant,

club and public service liquor licensees. Malt] The following

shall apply AS FOLLOWS :

(i) Malt or brewed beverages produced [for the holder of a

brewery license under a contract brewing agreement with an out-

of-State manufacturer may be sold to a nonlicensee for on-

premises or off-premises consumption, except that sales to a

licensee must be distributed as provided under section 431(b).]

by a brewery at the brewery location or under a contract brewing

agreement or alternating proprietorship with an in-State

manufacturer may be sold by the brewery to nonlicensees for on-

premises or off-premises consumption and to licensees who are

authorized to resell malt or brewed beverages. Sales to

licensees under this paragraph shall comply with the provisions

of this act. Malt or brewed beverages produced for the brewery

under a contract brewing agreement or alternating proprietorship

with an out-of-State manufacturer may only be distributed as

provided under paragraph (3).

(ii) A brewery located in a second-class city with retail

sales prior to June 1, 2017, may sell malt or brewed beverages

produced under a contract brewing agreement with an in-state or

out-of-State manufacturer to nonlicensees for on-premises or

off-premises consumption. If the brewery uses storage locations

granted to the brewery under section 431(a.2) for distribution

or retail sales, the brewery may only sell malt or brewed

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beverages as provided under paragraph (3).

(II) A BREWERY WITH A CONTRACT BREWING AGREEMENT WITH AN

OUT-OF-STATE MANUFACTURER PRIOR TO THE EFFECTIVE DATE OF THIS

PARAGRAPH MAY SELL MALT OR BREWED BEVERAGES TO NONLICENSEES FOR

ON-PREMISES OR OFF-PREMISES CONSUMPTION. THESE SALES ARE IN

ADDITION TO THE SALES AUTHORIZED BY THIS PARAGRAPH AND ARE NOT

SUBJECT TO THE DISTRIBUTION REQUIREMENTS SET FORTH IN PARAGRAPH

(3). IF THE BREWERY USES STORAGE LOCATIONS GRANTED TO THE

BREWERY UNDER SECTION 431(A.2) FOR DISTRIBUTION OR RETAIL SALES

BEYOND THOSE STORAGE LOCATIONS ALREADY USED FOR DISTRIBUTION OR

RETAIL SALES PRIOR TO THE EFFECTIVE DATE OF THIS PARAGRAPH, THE

BREWERY MAY ONLY SELL MALT OR BREWED BEVERAGES AS PROVIDED UNDER

PARAGRAPH (3).

(2) Operate a restaurant or brewery pub on the licensed

premises under such conditions and regulations as the board may

enforce: Provided, however, That sales on Sunday may be made

irrespective of the volume of food sales if the licensed

premises are at a public venue location. [The] In addition to

the sales authorized under paragraph (1), the holder of a

brewery license may sell wines, alcoholic cider and fermented

fruit beverages produced by the holder of a limited winery

license, malt or brewed beverages produced by a manufacturer

licensed by the board and liquor produced by a limited

distillery or distillery licensed by the board: Provided,

however, That said wines, malt or brewed beverages produced by

another manufacturer and liquor must be consumed at the licensed

premises. In addition, the combined sales of wine, malt or

brewed beverages produced by another manufacturer and liquor may

not, on a yearly basis, exceed fifty per centum (50%) of the on-

premises sales of the brewery's own malt or brewed beverages for

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the preceding calendar year: however, if a brewery did not

operate for an entire calendar year during the preceding year,

then its combined sales of wine, malt or brewed beverages

produced by another manufacturer and liquor may not, on a yearly

basis, exceed fifty per centum (50%) of the on-premises sales of

the brewery's own malt or brewed beverages for that year.

(3) Use brewery storage and distribution facilities for the

purpose of receiving, storing and distributing malt or brewed

beverages manufactured outside this Commonwealth [if], including

malt or brewed beverages produced for the brewery under a

contract brewing agreement or alternating proprietorship with an

out-of-State manufacturer, so long as the beverages are

distributed in this Commonwealth only through specific importing

distributors who shall have first been given distributing rights

for such products in designated geographical areas through the

distribution system required for out-of-State manufacturers

under section [431(b)] 431 as well as all other pertinent

sections of this act. The manufacturer of the beverages must

comply with section 444.

* * *

(5) Nothing in paragraphs (2) and (3) shall be construed to

impact the status of existing or future distribution contracts

or rights under this act.

* * *

Section 2. This act shall take effect in 60 days

IMMEDIATELY.

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