Trial Engrossment of Amendment A02724 to House Bill 1096 P.N. 1687, Regular Session 2023-2024

A02724

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1096

Session of

2023

INTRODUCED BY MALAGARI, McANDREW, MADDEN, SANCHEZ, HILL-EVANS,

LEADBETER, FREEMAN, BURGOS, HANBIDGE, GUENST, CEPEDA-FREYTIZ

AND CERRATO, MAY 3, 2023

AS REPORTED FROM COMMITTEE ON LIQUOR CONTROL, HOUSE OF

REPRESENTATIVES, AS AMENDED, JUNE 22, 2023

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;

AND, in licenses and regulations and liquor, alcohol and malt

and brewed beverages, further providing for PUBLIC VENUE

LICENSE AND, for malt and brewed beverages manufacturers',

distributors' and importing distributors' licenses, for

interlocking business prohibited, FOR limiting number of

retail licenses to be issued in each county and for unlawful

acts relative to malt or brewed beverages and licensees.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 461(c)(9.2) of the act of April 12, 1951

(P.L.90, No.21), known as the Liquor Code, is amended to read:

SECTION 1. THE DEFINITION OF "PUBLIC VENUE" IN SECTION 102

OF THE ACT OF APRIL 12, 1951 (P.L.90, NO.21), KNOWN AS THE

LIQUOR CODE, IS AMENDED 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:

* * *

"PUBLIC VENUE" SHALL MEAN A STADIUM, ARENA, CONVENTION

CENTER, MUSEUM, ZOO, AMPHITHEATER OR [SIMILAR STRUCTURE.]

AMUSEMENT PARK AS DEFINED IN SECTION 2 OF THE ACT OF JUNE 18,

1984 (P.L.384, NO.81), KNOWN AS THE "AMUSEMENT RIDE INSPECTION

ACT," SITUATED ON AT LEAST FORTY (40) ACRES OF LAND REGARDLESS

OF SEATING CAPACITY, OR SIMILAR STRUCTURE. IF THE PUBLIC VENUE

IS A CRUISE TERMINAL OWNED OR LEASED BY A PORT AUTHORITY CREATED

UNDER THE ACT OF JUNE 12, 1931 (P.L.575, NO.200), ENTITLED "AN

ACT PROVIDING FOR JOINT ACTION BY PENNSYLVANIA AND NEW JERSEY IN

THE DEVELOPMENT OF THE PORTS ON THE LOWER DELAWARE RIVER, AND

THE IMPROVEMENT OF THE FACILITIES FOR TRANSPORTATION ACROSS THE

RIVER; AUTHORIZING THE GOVERNOR, FOR THESE PURPOSES, TO ENTER

INTO AN AGREEMENT WITH NEW JERSEY; CREATING THE DELAWARE RIVER

JOINT COMMISSION AND SPECIFYING THE POWERS AND DUTIES THEREOF,

INCLUDING THE POWER TO FINANCE PROJECTS BY THE ISSUANCE OF

REVENUE BONDS; TRANSFERRING TO THE NEW COMMISSION ALL THE POWERS

OF THE DELAWARE RIVER BRIDGE JOINT COMMISSION; AND MAKING AN

APPROPRIATION," IT SHALL HAVE NO PERMANENT SEATING REQUIREMENT.

IF THE PUBLIC VENUE IS AN OPEN-AIR AMPHITHEATER OWNED BY A PORT

AUTHORITY CREATED UNDER THE ACT OF DECEMBER 6, 1972 (P.L.1392,

NO.298), KNOWN AS THE "THIRD CLASS CITY PORT AUTHORITY ACT," IT

SHALL HAVE NO PERMANENT SEATING REQUIREMENT. IF THE PUBLIC VENUE

IS OWNED BY A POLITICAL SUBDIVISION, A MUNICIPAL AUTHORITY, THE

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COMMONWEALTH, AN AUTHORITY CREATED UNDER THE ACT OF JULY 29,

1953 (P.L.1034, NO.270), KNOWN AS THE "PUBLIC AUDITORIUM

AUTHORITIES LAW," AN AUTHORITY CREATED UNDER ARTICLE XXV-A OF

THE ACT OF JULY 28, 1953 (P.L.723, NO.230), KNOWN AS THE "SECOND

CLASS COUNTY CODE," AN ART MUSEUM ESTABLISHED UNDER THE

AUTHORITY OF THE ACT OF APRIL 6, 1791 (3 SM.L.20, NO.1536),

ENTITLED "AN ACT TO CONFER ON CERTAIN ASSOCIATIONS OF THE

CITIZENS OF THIS COMMONWEALTH THE POWERS AND IMMUNITIES OF

CORPORATIONS, OR BODIES POLITIC IN LAW," OR AN AUTHORITY CREATED

UNDER ARTICLE XXIII (N) OR (O) OF THE ACT OF AUGUST 9, 1955

(P.L.323, NO.130), KNOWN AS "THE COUNTY CODE," IT SHALL HAVE

PERMANENT SEATING FOR AT LEAST ONE THOUSAND (1,000) PEOPLE;

OTHERWISE, IT SHALL HAVE PERMANENT SEATING FOR AT LEAST TWO

THOUSAND (2,000) PEOPLE. THE TERM SHALL ALSO MEAN ANY REGIONAL

HISTORY CENTER, MULTIPURPOSE CULTURAL AND SCIENCE FACILITY,

MUSEUM OR CONVENTION OR TRADE SHOW CENTER, REGARDLESS OF OWNER

AND SEATING CAPACITY, THAT HAS A FLOOR AREA OF AT LEAST SIXTY

THOUSAND (60,000) SQUARE FEET IN ONE BUILDING OR IS COMPRISED OF

NO LESS THAN THREE HUNDRED FIFTY (350) ACRES AND IS A MEMBER OF

THE AMERICAN PUBLIC GARDEN ASSOCIATION. THE TERM SHALL ALSO MEAN

A CONVENTION OR CONFERENCE CENTER OWNED BY A CITY OF THE THIRD

CLASS OR A UNIVERSITY WHICH IS A MEMBER OF THE PENNSYLVANIA

STATE SYSTEM OF HIGHER EDUCATION WHICH IS OPERATED BY A

UNIVERSITY FOUNDATION OR ALUMNI ASSOCIATION, REGARDLESS OF

SEATING CAPACITY, THAT HAS A FLOOR AREA OF AT LEAST FIFTEEN

THOUSAND (15,000) SQUARE FEET IN ONE BUILDING. THE TERM SHALL

ALSO MEAN A VISITOR CENTER, REGARDLESS OF FLOOR AREA OR SEATING

CAPACITY, THAT WAS ESTABLISHED UNDER THE AUTHORITY OF THE

GATEWAY VISITOR CENTER AUTHORIZATION ACT OF 1999 (PUBLIC LAW

106-131, 113 STAT. 1678, 16 U.S.C. § 407M).

A02724 - 3 -

* * *

SECTION 2. SECTION 412(F)(1) OF THE ACT IS AMENDED AND THE

SECTION IS AMENDED BY ADDING SUBSECTIONS TO READ:

SECTION 412. PUBLIC VENUE LICENSE.--* * *

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

RESTAURANT LIQUOR LICENSES. HOWEVER, THE FOLLOWING ADDITIONAL

RESTRICTIONS AND PRIVILEGES APPLY:

(1) SALES MAY ONLY BE MADE ONE HOUR BEFORE, DURING AND ONE

HOUR AFTER ANY ATHLETIC PERFORMANCE, PERFORMING ARTS EVENT,

TRADE SHOW, CONVENTION, BANQUET OR ANY OTHER 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 ELEVEN O'CLOCK ANTEMERIDIAN ON SUNDAYS OR

SEVEN O'CLOCK ANTEMERIDIAN ON MONDAYS. NOTWITHSTANDING THIS

[SECTION, FACILITIES THAT HAD BEEN LICENSED UNDER FORMER

SECTIONS] SECTION:

(I) FACILITIES THAT HAD BEEN LICENSED UNDER FORMER SECTIONS

408.9 AND 408.14 MAY SELL LIQUOR AND/OR MALT OR BREWED BEVERAGES

ANYTIME EXCEPT FROM TWO O'CLOCK ANTEMERIDIAN TO SEVEN O'CLOCK

ANTEMERIDIAN OR PRIOR TO ELEVEN O'CLOCK ANTEMERIDIAN ON SUNDAYS

OR SEVEN O'CLOCK ANTEMERIDIAN ON MONDAYS, REGARDLESS OF WHETHER

THERE IS A PERFORMANCE AT THE FACILITY.

(II) AMUSEMENT PARKS MAY SELL LIQUOR AND MALT OR BREWED

BEVERAGES FROM ELEVEN O'CLOCK ANTEMERIDIAN TO ELEVEN O'CLOCK

POSTMERIDIAN.

* * *

(H) AN AMUSEMENT PARK THAT HOLDS A RESTAURANT LICENSE BEFORE

JANUARY 1, 2022, AND SEEKS TO OBTAIN A PUBLIC VENUE LICENSE

SHALL EXCHANGE ONE EXISTING RESTAURANT LICENSE TO THE BOARD IN

RETURN FOR A PUBLIC VENUE LICENSE AT NO COST. A RESTAURANT

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LICENSE EXCHANGED UNDER THIS SUBSECTION SHALL BE SUBJECT TO A

LICENSE AUCTION UNDER SECTION 470.3.

(I) AN AMUSEMENT PARK THAT HOLDS A PUBLIC VENUE LICENSE

SHALL UTILIZE A TRANSACTION SCAN DEVICE TO VERIFY THE AGE OF AN

INDIVIDUAL WHO APPEARS TO BE UNDER THIRTY-FIVE YEARS OF AGE

BEFORE MAKING A SALE OF LIQUOR AND MALT OR BREWED BEVERAGES,

HOWEVER, AN ACCEPTABLE FORM OF IDENTIFICATION UNDER SECTION

495(A) THAT CANNOT BE SCANNED MAY BE ACCEPTED BY THE LICENSEE.

AN AMUSEMENT PARK MAY NOT SELL OR SHARE DATA FROM THE USE OF A

TRANSACTION SCAN DEVICE, PROVIDED THAT THE LICENSEE MAY USE THE

DATA TO SHOW THE ENFORCEMENT BUREAU OF THE BOARD THAT THE

LICENSEE IS IN COMPLIANCE WITH THIS ACT. AS USED IN THIS

SUBSECTION, THE TERM "TRANSACTION SCAN DEVICE" MEANS A DEVICE

CAPABLE OF DECIPHERING, IN AN ELECTRONICALLY READABLE FORMAT,

THE INFORMATION ENCODED ON THE MAGNETIC STRIP OR BAR CODE OF AN

IDENTIFICATION CARD UNDER SECTION 495(A).

(J) AS USED IN THIS SECTION, THE TERM "AMUSEMENT PARK" SHALL

HAVE THE SAME MEANING AS DEFINED IN SECTION 2 OF THE ACT OF JUNE

18, 1984 (P.L.384, NO.81), KNOWN AS THE "AMUSEMENT RIDE

INSPECTION ACT."

SECTION 3. SECTION 461(C)(9.2) OF THE ACT IS AMENDED TO

READ:

Section 3. Section 431(d)(1) of the act is amended and the

subsection is amended by adding a paragraph to read:

Section 431. Malt and Brewed Beverages Manufacturers',

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

(d) (1) All distributing rights as hereinabove required

shall be in writing, shall be equitable in their provisions and

shall be substantially similar as to terms and conditions with

all other distributing rights agreements between the

A02724 - 5 -

manufacturer giving such agreement and its other importing

distributors and distributors shall not be modified, cancelled,

terminated or rescinded by the manufacturer without good cause,

and shall contain a provision in substance or effect as follows:

"The manufacturer recognizes that the importing distributor and

distributor are free to manage their business in the manner the

importing distributor and distributor deem best and that this

prerogative vests in the importing distributor and distributor

the exclusive right to establish a selling price, to select the

brands of malt or brewed beverages they wish to handle and to

determine the efforts and resources, including the e-commerce

platform if one is used, which the importing distributor and

distributor will exert to develop and promote the same of the

manufacturer's products handled by the importing distributor and

distributor. However, the manufacturer expects that the

importing distributor and distributor will price competitively

the products handled by them, devote reasonable effort and

resources to the sale of such products and maintain a reasonable

sales level." "Good cause" shall mean the failure by any party

to an agreement, without reasonable excuse or justification, to

comply substantially with an essential, reasonable and

commercially acceptable requirement imposed by the other party

under the terms of an agreement.

(1.1) Providing or using an e-commerce platform shall not be

construed as providing a thing of value under section 493(24).

* * *

Section 4. Section 443 of the act is amended by adding a

subsection to read:

Section 443. Interlocking Business Prohibited.--* * *

(i) Notwithstanding any other provision of law to the

A02724 - 6 -

contrary, a malt or brewed beverage manufacturer and its

officers, directors, shareholders, servants, agents or employes

may provide an e-commerce platform or access to an e-commerce

platform to a distributor or importing distributor. The e-

commerce platform or access to the e-commerce platform may be

provided free of charge or may be made available for a fee.

Section 5. Section 461(c)(9.2) of the act is amended to

read:

Section 461. Limiting Number of Retail Licenses To Be Issued

In Each County.--* * *

reputable place operated by a responsible person of good

reputation where the public may, for a consideration, obtain

sleeping accommodations, and which shall have the following

number of bedrooms and requirements in each case--at least one-

half of the required number of bedrooms shall be regularly

available to transient guests seven days weekly, except in

resort areas; at least one-third of such bedrooms shall be

equipped with hot and cold water, a lavatory, commode, bathtub

or shower and a clothes closet; and an additional one-third of

the total of such required rooms shall be equipped with lavatory

and commode:

* * *

(9.2) For two years after the effective date of this clause,

upon application to the board and payment of a fee of thirty

thousand dollars ($30,000) by a hotel licensee, the board shall

convert a hotel license under [clause (8)] clauses (8) and (8.1)

of this subsection for a hotel licensee that applied for an

exemption under clause (9) or (9.1) of this subsection before

January 1, [2019] 2024, to a restaurant license without regard

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to the quota restrictions set forth in subsection (a). This

clause shall not apply to a hotel license with a pending

objection by the director of the Bureau of Licensing or the

board under section 470(a.1) until the application for renewal

of the hotel license is approved. This clause shall not apply to

hotel licenses in a city of the first class. An application to

transfer a restaurant license that was converted from a hotel

license under this clause in accordance with section 404 within

five years after the board received the application for the

restaurant license shall be subject to a fee of twenty-five per

centum (25%) or thirty thousand dollars ($30,000), whichever is

greater, of the transactional cost for the transfer of the

restaurant license to be paid by the seller of the license. As

used in this paragraph, the term "transactional cost" shall mean

the cost of the restaurant license.

* * *

Section 6. Section 492 of the act is amended by adding a

paragraph to read:

Section 492. Unlawful Acts Relative to Malt or Brewed

Beverages and Licensees.--

It shall be unlawful--

* * *

(23) Interfering with the use of e-commerce. For any

manufacturer or retail licensee to prohibit or mandate any

particular e-commerce platform by any distributor or importing

distributor.

Section 2 4 7. This act shall take effect in 60 days.

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