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SENATE AMENDED
PRIOR PRINTER'S NOS. 1144, 1687, 2189,
2411
PRINTER'S NO. 2433
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,
CERRATO, WEBSTER, KENYATTA AND T. DAVIS, MAY 3, 2023
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, DECEMBER 12, 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; IN
PENNSYLVANIA LIQUOR CONTROL BOARD, ESTABLISHING THE STOP-AND-
GO LEGISLATIVE TASK FORCE; and, in licenses and regulations
and liquor, alcohol and malt and brewed beverages, further
providing for public venue license, for malt and brewed
beverages manufacturers', distributors' and importing
distributors' licenses, for interlocking business prohibited,
AND 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:
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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).
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* * *
SECTION 2. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
SECTION 218. STOP-AND-GO LEGISLATIVE TASK FORCE.--(A) THE
STOP-AND-GO LEGISLATIVE TASK FORCE IS ESTABLISHED.
(B) THE TASK FORCE SHALL:
(1) REVIEW AND ANALYZE THE LAW, PROCEDURES, PRACTICES,
PROCESSES AND RULES RELATING TO THE ISSUES INVOLVING STOP-AND-GO
ESTABLISHMENTS.
(2) HOLD PUBLIC HEARINGS FOR THE TAKING OF TESTIMONY AND THE
REQUESTING OF DOCUMENTS.
(3) THROUGH THE CHAIR, ADMINISTER OATHS AND AFFIRMATIONS TO
WITNESSES APPEARING BEFORE THE TASK FORCE.
(4) ACCEPT AND REVIEW WRITTEN COMMENTS FROM INDIVIDUALS AND
ORGANIZATIONS.
(5) ISSUE THE REPORT UNDER SUBSECTION (F) NO LATER THAN FOUR
MONTHS AFTER THE TASK FORCE'S INITIAL MEETING. IN ADDITION TO
ANY INFORMATION THAT THE TASK FORCE DEEMS APPROPRIATE, THE
REPORT SHALL:
(I) DEFINE AND CREATE A LIQUOR LICENSE CATEGORY FOR STOP-
AND-GO ESTABLISHMENTS LOCATED AND OPERATING WITHIN A CITY OF THE
FIRST CLASS.
(II) PROVIDE RECOMMENDATIONS FOR REGULATING STOP-AND-GO
ESTABLISHMENTS THAT ARE LOCATED AND OPERATING WITHIN A CITY OF
THE FIRST CLASS.
(C) THE TASK FORCE SHALL CONSIST OF THE FOLLOWING MEMBERS
WHO SHALL BE APPOINTED WITHIN TWENTY-FIVE DAYS AFTER THE
EFFECTIVE DATE OF THIS SUBSECTION:
(1) ONE MEMBER APPOINTED BY THE GOVERNOR.
(2) ONE MEMBER APPOINTED BY THE PRESIDENT PRO TEMPORE OF THE
SENATE.
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(3) ONE MEMBER APPOINTED BY THE MINORITY LEADER OF THE
SENATE.
(4) ONE MEMBER APPOINTED BY THE SPEAKER OF THE HOUSE OF
REPRESENTATIVES.
(5) ONE MEMBER APPOINTED BY THE MINORITY LEADER OF THE HOUSE
OF REPRESENTATIVES.
(6) AN EX OFFICIO MEMBER FROM THE BOARD WHO SHALL NOT HAVE
VOTING RIGHTS.
(D) A CHAIR OF THE TASK FORCE SHALL BE ELECTED BY A MAJORITY
VOTE OF THE MEMBERS OF THE TASK FORCE.
(E) THE TASK FORCE SHALL CONDUCT BUSINESS AS FOLLOWS:
(1) THE PHYSICAL PRESENCE OF A MAJORITY OF THE MEMBERS SHALL
CONSTITUTE A QUORUM. THE EX OFFICIO MEMBER OF THE TASK FORCE
SHALL NOT BE CONSIDERED FOR PURPOSES OF A QUORUM.
(2) ACTION OF THE TASK FORCE MUST BE AUTHORIZED OR RATIFIED
BY A MAJORITY VOTE OF THE MEMBERS.
(3) A MEMBER NOT PHYSICALLY PRESENT MAY PARTICIPATE BY
TELECONFERENCE OR VIDEO CONFERENCE.
(4) THE FIRST PUBLIC MEETING OF THE TASK FORCE SHALL BE
CONVENED WITHIN FORTY-FIVE DAYS OF THE EFFECTIVE DATE OF THIS
PARAGRAPH. ADDITIONAL PUBLIC MEETINGS MAY BE CALLED BY THE CHAIR
AS NECESSARY.
(5) THE CHAIR SHALL SCHEDULE A MEETING UPON WRITTEN REQUEST
OF A TWO-THIRDS MAJORITY OF THE MEMBERS.
(6) THE TASK FORCE SHALL HOLD PUBLIC HEARINGS AS NECESSARY.
(7) ALL MEETINGS AND HEARINGS HELD BY THE TASK FORCE SHALL
BE SUBJECT TO 65 PA.C.S. CH. 7 (RELATING TO OPEN MEETINGS).
(8) THE BOARD SHALL PROVIDE ADMINISTRATIVE OR OTHER
ASSISTANCE TO THE TASK FORCE.
(9) MEMBERS MAY NOT RECEIVE COMPENSATION BUT SHALL BE
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REIMBURSED FOR REASONABLE AND NECESSARY EXPENSES INCURRED IN
SERVICE.
(F) THE TASK FORCE SHALL COMPILE A REPORT OF RECOMMENDATIONS
UNDER SUBSECTION (B) WITHIN FOUR MONTHS AFTER THE TASK FORCE'S
INITIAL MEETING AND DELIVER THE REPORT TO EACH MEMBER OF THE
GENERAL ASSEMBLY WHO REPRESENTS RESIDENTS OF A CITY OF THE FIRST
CLASS, THE BOARD, THE CHAIRMAN AND MINORITY CHAIRMAN OF THE LAW
AND JUSTICE C OMMITTEE OF THE SENATE AND THE CHAIRMAN AND
MINORITY OF THE LIQUOR CONTROL COMMITTEE OF THE HOUSE OF
REPRESENTATIVES.
(G) THE TASK FORCE SHALL EXPIRE THIRTY DAYS AFTER DELIVERY
OF THE FINAL REPORT UNDER SUBSECTION (F).
(H) AS USED IN THIS SECTION:
(1) THE TERM "STOP-AND-GO ESTABLISHMENT" MEANS
ESTABLISHMENTS THAT ARE:
(I) LEGAL HOLDERS OF RESTAURANT OR R-LICENSES; AND
(II) A CONVENIENCE STORE OR DELI THAT SELLS BEER AND LIQUOR,
SOMETIMES IN QUANTITIES AS LOW AS A SINGLE SHOT, THAT MAY BE
CONSUMED ON PREMISES OR IMMEDIATELY OUTSIDE THE ESTABLISHMENT.
(2) THE TERM "TASK FORCE" MEANS THE STOP-AND-GO LEGISLATIVE
TASK FORCE ESTABLISHED UNDER THIS SECTION.
Section 2 3. 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
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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
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
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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 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
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
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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
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 3 4. 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.--* * *
(c) The word "hotel" as used in this section shall mean any
reputable place operated by a responsible person of good
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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] UPON APPLICATION FILED
WITH THE BOARD BY FEBRUARY 27, 2026, 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] JULY 1, [2019] 2024, HOTEL LICENSE [UNDER CLAUSE (8)
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,] REFERENCED UNDER CLAUSE (8) OR (8.1) OF THIS
SUBSECTION to a restaurant license without regard 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
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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 7 4 5. This act shall take effect in 60 days.
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