SENATE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY PAYNE, GEIST, KORTZ, MUSTIO, READSHAW, SONNEY, WAGNER, STEVENSON, FARRY AND SABATINA, JANUARY 21, 2011

SENATOR PIPPY, LAW AND JUSTICE, IN SENATE, AS AMENDED, JUNE 8, 2011   

AN ACT

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

reenacted, "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,"

further providing for definitions, for issuance, transfer or

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extension of hotel, restaurant and club liquor licenses, for

sales by liquor licensees and restrictions and, for sale of

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malt or brewed beverages by liquor licensees, for malt and

brewed beverages manufacturers', distributors' and importing

distributors' licenses, for distributors' and importing

distributors' restrictions on sales, storage, etc., for

retail dispensers' restrictions on purchases and sales, for

malt or brewed beverages manufactured outside this

Commonwealth, for brand registration, for limiting number of

retail licenses to be issued in each county, for licenses not

assignable and transfers, for revocation and suspension of

licenses and fines and for unlawful acts relative to liquor,

malt and brewed beverages and licensees and for limited

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wineries.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The definition of "eligible entity" in section

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

Liquor Code, reenacted and amended June 29, 1987 (P.L.32, No.14)

and amended June 25, 2010 (P.L.217, No.35), is amended and the

section is amended by adding definitions 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:

* * *

"Catered event" shall mean the furnishing of prepared foods 

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food prepared on the premises or brought onto the premises

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already prepared in conjunction with alcoholic beverages for the

accommodation of a person or an identifiable group of people who

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made arrangements for the event function at least forty-eight

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hours in advance and is paid for and sponsored by a third party.

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* * *

"Eligible entity" shall mean a city of the third class, a

hospital, a church, a synagogue, a volunteer fire company, a

volunteer ambulance company, a volunteer rescue squad, a unit of

a nationally chartered club which has been issued a club liquor

license, a club in a city of the third class which has been

issued a club liquor license and which, as of December 31, 2002,

has been in existence for at least 100 years, a library, a

nationally accredited Pennsylvania nonprofit zoological

institution licensed by the United States Department of

Agriculture, a nonprofit agricultural association in existence

for at least ten years, a bona fide sportsmen's club in

existence for at least ten years, a nationally chartered

veterans' organization and any affiliated lodge or subdivision

of such organization, a fraternal benefit society that is

licensed to do business in this Commonwealth and any affiliated

lodge or subdivision of such fraternal benefit society, a museum

operated by a nonprofit corporation in a city of the third class

or township of the first class, a nonprofit corporation engaged

in the performing arts in a city of the third class, borough or

in an incorporated town, an arts council, a nonprofit

corporation that operates an arts facility or museum in a city

of the third class in the county of the fourth class, a

nonprofit organization as defined under section 501(c)(3) of the

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

501(c)(3)) whose purpose is to protect the architectural

heritage of boroughs or a township of the second class and which

has been recognized as such by a municipal resolution, a

nonprofit organization as defined under section 501(c)(3) of the

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

501(c)(3)) conducting a regatta in a city of the second class

with the permit to be used on State park grounds or conducting a

family-oriented celebration as part of Welcome America in a city

of the first class on property leased from that city for more

than fifty years, a nonprofit organization as defined under

section 501(c)(3) of the Internal Revenue Code of 1986 (26

U.S.C. § 501(c)(3)) whose purpose is to raise funds for the

research and treatment of cystic fibrosis, a nonprofit

organization as defined under section 501(c)(3) of the Internal

Revenue Code of 1986 (26 U.S.C. § 501(c)(3)) whose purpose is to

educate the public on issues dealing with watershed

conservation, a nonprofit organization as defined under section

501(c)(3) of the Internal Revenue Code of 1986 (Public Law

99-514, 26 U.S.C. § 501(c)(3)) whose purpose is to provide

equine assisted activities for children and adults with special

needs, a nonprofit economic development agency in a city of the

second class with the primary function to serve as an economic

generator for the greater southwestern Pennsylvania region by

attracting and supporting film, television and related media

industry projects and coordinating government and business

offices in support of a production, a county tourist promotion

agency as defined in section 3(1) of the act of April 28, 1961

(P.L.111, No.50), known as the "Tourist Promotion Law," and

located in a city of the third class in a county of the fourth

class or located in a township of the second class in a county

of the fifth class, a junior league in a third class county that

is a nonprofit organization as defined under section 501(c)(3)

of the Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3))

that is comprised of women whose purpose is exclusively

educational and charitable in promoting the volunteerism of

women and developing and participating in community projects and

that has been in existence for over seventy years, a nonprofit

organization as defined under section 501(c)(3) of the Internal

Revenue Code of 1986 which is located in counties of the second

class A or of the third class and whose purpose is the education

and promotion of American history, a nonprofit organization as

defined under section 501(c)(6) of the Internal Revenue Code of

1986 [which is located in a city of the third class in a county

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of the third class and] whose purpose is to support business and

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industry, a brewery which has been issued a license to

manufacture malt or brewed beverages and has been in existence

for at least 100 years or a club recognized by Rotary

International which is located in a county of the fourth class

and whose purpose is to provide service to others, to promote

high ethical standards and to advance world understanding,

goodwill and peace through its fellowship of business,

professional and community leaders or a nonprofit organization

as defined under section 501(c)(3) of the Internal Revenue Code

of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) which is

located in a borough in a county of the third class and whose

purpose is to promote mushrooms while supporting local and

regional charities, a museum operated by a not-for-profit

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corporation in a city of the second class A, a nonprofit

organization as defined under section 501(c)(3) of the Internal

Revenue Code of 1986 which is located in a city of the second

class A and has as its purpose economic and community

development, a nonprofit organization as defined under section

501(c)(3) or (6) of the Internal Revenue Code of 1986 that is

located in a city of the third class in a county of the fifth

class, a nonprofit social service organization defined under

section 501(c)(3) of the Internal Revenue Code of 1986 located

in a county of the third class whose purpose is to serve

individuals and families in that county of the third class, a

nonprofit organization as defined under section 501(c)(3) of the

Internal Revenue Code of 1986 whose main purpose is to

temporarily foster stray and unwanted animals and match them to

suitable permanent homes, a nonprofit organization as defined

under section 501(c)(3) of the Internal Revenue Code of 1986 who

operates either a Main Street Program or Elm Street Program

recognized by the Commonwealth, the National Trust for Historic

Preservation or both.

* * *

"Happy hour" shall mean the period of time during which a

licensee discounts alcoholic beverages.

* * *

Section 2.  Section 404 of the act, amended January 6, 2006

(P.L.1, No.1), is amended to read:

Section 404.  Issuance, Transfer or Extension of Hotel,

Restaurant and Club Liquor Licenses.--Upon receipt of the

application and the proper fees, and upon being satisfied of the

truth of the statements in the application that the applicant is

the only person 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

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 refuse any application for a new

license, the transfer of any license to a new location or the

extension of any license to cover an additional area where the

sale of liquid fuels or oil is conducted. 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

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.

Notwithstanding another provision of law, the board may not

refuse to transfer or renew a license previously issued for

premises located in a township of the second class within a

county of the third class that is a dry municipality based on

the fact that the municipality is a dry municipality if the

premises for which the license is being transferred or renewed

have been continuously licensed by the board for a period of

fifty years or more.

Section 3.  Section 406(a)(1) of the act, amended July 6,

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2005 (P.L.135, No.39), is amended and the section 406(a)(3) of

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the act, amended November 29, 2006 (P.L.1421, No.155), is

amended and the section is amended by adding subsections to

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read:

Section 406.  Sales by Liquor Licensees; Restrictions.--(a)  

(1)  Every hotel, restaurant or club liquor licensee may sell

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liquor and malt or brewed beverages by the glass, open bottle or

other container, and in any mixture, for consumption only in

that part of the hotel or restaurant habitually used for the

serving of food to guests or patrons, or, in the case of a

restaurant, hotel or eating place licensee, at a catered event

off the licensed premises, or in a bowling alley that is

immediately adjacent to and under the same roof as a restaurant,

and in the case of hotels, to guests, and in the case of clubs,

to members, in their private rooms in the hotel or club. No club

licensee nor its officers, servants, agents or employes, other

than one holding a catering license, shall sell any liquor or

malt or brewed beverages to any person except a member of the

club. The holder of a restaurant license located in a hotel may

sell liquor or malt or brewed beverages for consumption in that

part of the restaurant habitually used for the serving of meals

to patrons and also to guests in private guest rooms in the

hotel. For the purpose of this paragraph, any person who is an

active member of another club which is chartered by the same

state or national organization shall have the same rights and

privileges as members of the particular club. For the purpose of

this paragraph, any person who is an active member of any

volunteer firefighting company, association or group of this

Commonwealth, whether incorporated or unincorporated, shall upon

the approval of any club composed of volunteer firemen licensed

under this act, have the same social rights and privileges as

members of such licensed club. For the purposes of this

paragraph, the term "active member" shall not include a social

member. Any club licensee which is either an incorporated unit

of a national veterans' organization or an affiliated

organization as defined in section 461.1 shall be permitted to

sell liquor or malt or brewed beverages to any active member of

another unit which is chartered by the same national veterans'

organization or to any member of a nationally chartered

auxiliary associated with the same national veterans'

organization.

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(3)  Hotel and restaurant liquor licensees, [airport

restaurant liquor licensees,] municipal golf course restaurant

liquor licensees and privately-owned public golf course

restaurant licensees may sell liquor and malt or brewed

beverages on Sunday between the hours of eleven o'clock

antemeridian and two o'clock antemeridian Monday upon purchase

of a special permit from the board at an annual fee as

prescribed in section 614-A of the act of April 9, 1929

(P.L.177, No.175), known as "The Administrative Code of 1929."

Airport restaurant liquor licensees may sell liquor and malt or

brewed beverages on Sunday between the hours of seven o'clock

antemeridian and two o'clock antemeridian Monday upon purchase

of a special permit from the board at an annual fee as

prescribed in section 614-A of the act of April 9, 1929

(P.L.177, No.175), known as "The Administrative Code of 1929."

* * *

(f)  The holder of a hotel license or a restaurant or

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restaurant liquor license may obtain an off-premises catering

permit subject to section 493(33) to hold a catered event 

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function off the licensed premises and on otherwise unlicensed

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premises where the licensee may sell wine, liquor and malt or

brewed beverages by the glass, open bottle or other container,

and in any mixture, for consumption on those premises solely

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used for catering purposes so long as the liquor and malt or

brewed beverages were purchased in conjunction with a meal which

will be consumed on the catered premises. The holder of an

eating place license may obtain an off-premises catering permit

subject to section 493(33) to hold a catered event off the

licensed premises and on otherwise unlicensed premises where the

licensee may sell malt or brewed beverages by the glass, open

bottle or other container for consumption on those premises

solely used for catering purposes so long as the malt or brewed

beverages were purchased in conjunction with a meal which will

be consumed on the catered premises. There shall be no

limitation on the number of off-premises catered events a

licensee may hold at any given time. At no time may an off-

premises catering permittee agree to hold a catered event that

includes the sale of alcohol at a location within a dry

municipality. In addition, the off-premises catering permittee

shall give the local police department or the Pennsylvania State

Police, if there is no local police department, written notice

at least forty-eight hours prior to each off-premises catered

event. Written notice shall consist of notifying the police of

the date, time and place of the impending sale of alcoholic

beverages. Functions conducted under the authority of the permit

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shall be subject to the following:

(1)  alcohol may be provided only during the days and hours

that the license holder may otherwise sell alcohol;

(2)  all servers at the off premises catered function shall

be in compliance with the responsible alcohol management

provisions under section 471.1;

(3)  each permit shall be valid for one day and not more than

fifty permits may be issued each calendar year to each license

holder for use with a particular license;

(4)  a permit shall not be issued to a location that is

already subject to the applicant's or another licensee's

license;

(5)  a permit shall not be issued to an applicant whose

license is in safekeeping;

(6)  a permit shall not be issued to a location that is

subject to a pending objection by the director of the Bureau of

Licensing or the board under section 470(a.1);

(7)  a permit shall not be issued to a location that is

subject to a pending license suspension under section 471 or the

one-year prohibition on the issuance or transfer of a license

under section 471(b);

(8)  no alcohol may be taken from the permitted location, but

the applicant may transport alcohol to and from its licensed

premises to the proposed premises; and

(9)  written notice of the date, time and location of the

catered function shall be provided to the local police or if

there is no local police force to the enforcement bureau at

least 48 hours in advance of the event.

(g)  Notwithstanding any other provision of law or

regulation, the holder of a retail license may have hold happy

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hours up to four hours per day and up to fourteen hours per week

during which the holder discounts the price of alcoholic

beverages. The licensee may use up to four hours per day so long

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as the hours do not exceed fourteen hours in any given week and

so long as no No discounts are may be given between the hours of

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midnight and the legal closing time and so long as notice. 

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Notice of all happy hours is shall be visibly posted on the

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licensed premises seven days prior to the happy hour. Except as

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provided in this subsection, a licensee shall comply with the

provisions of 40 Pa. Code § 13-102 (relating to discount pricing

practices).

Section 3.1.  Section 407(a) of the act, amended July 7, 2006

(P.L.584, No.84), is amended to read:

Section 407.  Sale of Malt or Brewed Beverages by Liquor

Licensees.--(a)  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, unless a

municipality has on ordinance restricting open container sales. 

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.

* * *

Section 4.  Section 431(c) of the act, amended May 5, 1970

(P.L.342, No.110), is amended to read:

Section 431.  Malt and Brewed Beverages Manufacturers',

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

(c)  The aforesaid licenses shall be issued only to reputable

individuals, partnerships and associations who are, or whose

members are, citizens of the United States and [have for two

years prior to the date of their applications been] are 

residents of the Commonwealth of Pennsylvania or to reputable

corporations organized or duly registered under the laws of the

Commonwealth of Pennsylvania. Such licenses shall be issued to

corporations duly organized or registered under the laws of the

Commonwealth of Pennsylvania only when it appears that all of

the officers and directors of the corporation are citizens of

the United States and [have been] are residents of the

Commonwealth of Pennsylvania [for a period of at least two years

prior to the date of application], and that at least fifty-one

per centum of the capital stock of such corporation is actually

owned by individuals who are citizens of the United States and

[have been] are residents of the Commonwealth of Pennsylvania

[for a period of at least two years prior to the date of

application]: Provided, That the provisions of this subsection

with respect to residence requirements shall not apply to

individuals, partners, officers, directors and owners of capital

stock, of corporations licensed or applying for licenses as

manufacturers of malt or brewed beverages, nor shall the

provisions of this subsection with respect to stockholder

requirements apply to corporations licensed or applying for

licenses as manufacturers of malt or brewed beverages.

* * *

Section 5.  Section 441(d) of the act is amended and the

section is amended by adding a subsection to read:

Section 441.  Distributors' and Importing Distributors'

Restrictions on Sales, Storage, Etc.--* * *

(d)  (1)  No distributor [or importing distributor] shall

maintain any place for the storage of malt or brewed beverages

except in the same municipality in which the licensed premises

is located and unless the same has been approved by the board.

In the event there is no place of cold storage in the same

municipality, the board may approve a place of cold storage in

the nearest municipality.

(2)  No importing distributor shall maintain any place for

the storage of malt or brewed beverages except in the franchise

territory in which the licensed premises is located and unless

the same has been approved by the board. The board shall issue

no more than one storage facility license to an importing

distributor. The storage location shall be designated solely as

a storage facility, from which only sales to other licensees are

permitted. Retail sales may be made at the licensed location

pursuant to subsection (c). If the importing distributor

maintains a storage location for cold storage in the same

municipality in which the importing distributor is licensed or a

nearby municipality, the importing distributor may continue to

maintain that cold storage location in addition to another

storage location within their franchise territory.

* * *

(h)  As used in this section, the term "franchise territory"

shall mean the geographically contiguous area in which an

importing distributor has been given rights for the sale or

resale of malt or brewed beverages.

Section 5.1.  Section 442(a)(1) of the act, amended November

29, 2006 (P.L.1421, No.155), is amended and the section is

amended by adding a subsection to read:

Section 442.  Retail Dispensers' Restrictions on Purchases

and Sales.--(a)  (1)  No retail dispenser shall purchase or

receive any malt or brewed beverages except in original

containers as prepared for the market by the manufacturer at the

place of manufacture. The retail dispenser may thereafter break

the bulk upon the licensed premises and sell or dispense the

same for consumption on or off the premises so licensed[:

Provided, however, That no]. No retail dispenser may sell malt

or brewed beverages for consumption off the premises in

quantities in excess of one hundred ninety-two fluid ounces[:

Provided, further, That no]. Sales may be made in open or closed

containers, unless a municipality has an ordinance restricting

open container sales. No club licensee may sell any malt or

brewed beverages for consumption off the premises where sold or

to persons not members of the club.

* * *

(f)  The holder of an eating place retail dispenser license

may obtain an off-premises catering permit under section 493(33)

to hold a catered event off of the licensed premises and on

otherwise unlicensed premises where the licensee may sell malt

or brewed beverages by the glass, open bottle or any other

container, for consumption on those premises solely used for

catering premises. Functions conducted under the authority of

the permit shall be subject to the following:

(1)  malt or brewed beverages may only be provided during the

days and hours that the license holder may otherwise sell malt

or brewed beverages;

(2)  each permit shall be valid for one day and not more than

fifty permits may be issued each calendar year to each license

holder for use with a particular license;

(3)  a permit shall not be issued to a location that is

already subject to the applicant's or another licensee's

license;

(4)  a permit shall not be issued to an applicant whose

license is in safekeeping;

(5)  a permit shall not be issued to a location that is

subject to a pending objection by the director of the Bureau of

Licensing or the board under section 470(a.1);

(6)  a permit shall not be issued to a location that is

subject to a pending license suspension under section 471 or the

one-year prohibition on the issuance or transfer of a license

under section 471(b);

(7)  no malt or brewed beverages may be taken from the

permitted location, but the applicant may transport malt or

brewed beverages to and from its licensed premises to the

proposed premises; and

(8)  written notice of the date, time and location of the

catered function shall be provided to the local police, or if

there is no local police force to the enforcement bureau, at

least forty-eight hours in advance of the event.

Section 6.  Sections 444(c) and 445 of the act are amended to

read:

Section 444.  Malt or Brewed Beverages Manufactured Outside

This Commonwealth.--* * *

(c)  Any malt or brewed beverages manufactured outside of

Pennsylvania which are sold, transported or possessed in

Pennsylvania contrary to any such regulations or orders of the

board, or without the payment of the fees herein required, shall

be considered contraband and shall be confiscated by the board

and disposed of in the same manner as any other illegal liquor

or malt or brewed beverages, provided that, if the potential

violation is of section 445 or any associated regulation, such

malt or brewed beverages shall be left on the licensed premises

where found under orders not to sell such contraband until such

time as the malt or brewed beverage manufacturer comes into

compliance with Pennsylvania's regulations or until the licensee

holding the contraband can return it to the manufacturer and be

fully reimbursed.

* * *

Section 445.  Brand Registration.--(a)  No brand or brands of

malt or brewed beverages shall be offered, sold or delivered to

any trade buyer within this Commonwealth unless the manufacturer

thereof shall first submit an application in the form and manner

prescribed by the board for the registration of the said brand

or brands of malt beverages, together [with an annual filing fee

not to exceed twenty-five dollars ($25) for each brand

registration requested.] with an annual filing fee not to exceed

seventy-five dollars ($75) for each brand registration

requested. Any brand produced in quantities of one hundred

brewer's barrels annually or less may be registered together

with other brands produced by the same manufacturer in such

quantities with an annual filing fee not to exceed one hundred

and fifty dollars ($150) in total for up to twenty individual

brands. Any brand or brands of malt or brewed beverages that are

produced by a manufacturer but not offered for sale because of

additional aging of the beverages shall only be registered at

the time the brand or brands are offered for sale. In the event

an out-of-State or foreign manufacturer of malt or brewed

beverages has granted franchise rights to any person for the

sale and distribution of its brand products but which person is

not licensed to sell and distribute the same in this

Commonwealth, said such person shall nevertheless be required to

register the involved brand before offering the same for sale in

Pennsylvania. It is further conditioned that the person holding

such franchise rights shall, together with its application for

brand registration, file with the board copies of all agreements

between it and the Pennsylvania importing distributor appointed

by such person to sell and distribute the brands of malt or

brewed beverages as provided by sections 431 and 492. Such

agreement shall contain the manufacturer's consent and approval

to the appointment of the Pennsylvania importing distributor and

the rights conferred thereunder.

(b)  The board shall employ a malt beverage compliance

officer whose duties shall include reviewing label registration

to ensure compliance with this act and investigating reports of

unregistered brands of malt or brewed beverages being sold by

licensees in addition to any other duties the board shall assign

the officer. If the malt beverage compliance officer finds that

a licensee is selling malt or brewed beverages that are

unregistered in this Commonwealth, he shall give the

manufacturer of the malt or brewed beverages written notice that

the manufacturer has ten days to register the malt or brewed

beverages with the board. During that ten-day period in which

the manufacturer has to come into compliance with brand

registration, the unregistered malt or brewed beverages shall

remain on the licensee's premises but may not be sold. Should

the manufacturer fail to register the malt or brewed beverages

with the board within ten days, the manufacturer shall be

required to remove the unregistered malt or brewed beverages

from the licensee's premises and reimburse the licensee for all

unregistered products that cannot be sold in this Commonwealth.

Section 7.  Section 461(d) of the act, amended December 21,

1998 (P.L.1202, No.155), is amended to read:

Section 461.  Limiting Number of Retail Licenses To Be Issued

In Each County.--* * *

(d)  "Airport restaurant," as used in this section, shall

mean restaurant facilities at any airport for public

accommodation, which are owned or operated directly or through

lessees by the Commonwealth of Pennsylvania, by any municipal

authority, county or city, either severally or jointly, with any

other municipal authority, county or city, but shall not include

any such restaurant facilities at any airport situated in a

municipality where by vote of the electors the retail sale of

liquor and malt or brewed beverages is not permitted. An airport

restaurant is not subject to the seating requirements nor to the

square footage requirements of the definition of restaurant in

section 102. An airport restaurant may have unlimited extensions

of service areas providing all extended service areas are inside

the airport terminal building or buildings, notwithstanding any

intervening thoroughfares. In addition to the privileges granted

under sections 406 and 407 relative to malt or brewed beverages,

airport restaurant liquor licensees may also sell wine by the

glass, open bottle or other container for consumption off the

licensed premises and within the airport terminal building. 

Notwithstanding any provision to the contrary, an airport

restaurant licensee that has acquired a Sunday sales permit may

commence sales at seven o'clock antemeridian.

* * *

Section 8.  Section 468(a)(1) of the act, amended November

29, 2006 (P.L.1421, No.155), 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. [If] Except for restaurant liquor

and eating place retail dispenser licenses transferred under

section 461(b.4), if the license is a retail license, [then] the

new location must be within the same county as the existing

location [except for restaurant liquor and eating place retail

dispenser licenses transferred under section 461(b.4)] or, if

the municipality is located in more than one county, within the

same municipality as the existing location.

* * *

Section 9.  Section 471 of the act is amended by adding a

subsection to read:

Section 471.  Revocation and Suspension of Licenses; Fines.--

* * *

(f)  Upon becoming aware of a potential violation of section

445 or any associated regulation, the enforcement bureau shall

give written notice to each licensee who might be in violation

of this section or its corresponding regulation. If the

potential violation has been cured within ten days of receipt of

the written notice, the enforcement bureau shall take no further

action against the licensee. If the potential violation has not

been cured within ten days of receipt of the notice, the

enforcement bureau shall proceed in accordance with subsection

(a).

Section 4 10.  Section 493(10) of the act, amended December

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20, 2000 (P.L.992, No.141), is amended and the section is

amended by adding a paragraph to read:

Section 493.  Unlawful Acts Relative to Liquor, Malt and

Brewed Beverages and Licensees.--The term "licensee," when used

in this section, shall mean those persons licensed under the

provisions of Article IV, unless the context clearly indicates

otherwise.

It shall be unlawful--

* * *

(10)  Entertainment on Licensed Premises (Except Clubs);

Permits; Fees. For any licensee, his servants, agents or

employes, except club licensees, public venue licensees or

performing arts facility licensees, to permit in any licensed

premises or in any place operated in connection therewith,

dancing, theatricals or floor shows of any sort, or moving

pictures other than television, or such as are exhibited through

machines operated by patrons by the deposit of coins, which

project pictures on a screen not exceeding in size twenty-four

by thirty inches and which forms part of the machine, unless the

licensee shall first have obtained from the board a special

permit to provide such entertainment, or for any licensee, under

any circumstances, to permit in any licensed premises or in any

place operated in connection therewith any lewd, immoral or

improper entertainment, regardless of whether a permit to

provide entertainment has been obtained or not. The special

permit may be used only during the hours when the sale of liquor

or malt or brewed beverages is permitted, unless the licensee

holds an extended hours food license under section 499(b) which

license would allow the special permit to be used while the

establishment is open, and between eleven o'clock antemeridian

on Sunday and two o'clock antemeridian on the following Monday,

regardless of whether the licensee possesses a Sunday sales

permit. The board shall have power to provide for the issue of

such special permits, and to collect an annual fee for such

permits as prescribed in section 614-A of the act of April 9,

1929 (P.L.177, No.175), known as "The Administrative Code of

1929." All such fees shall be paid into the State Stores Fund.

No such permit shall be issued in any municipality which, by

ordinance, prohibits amusements in licensed places. Any

violation of this clause shall, in addition to the penalty

herein provided, subject the licensee to suspension or

revocation of his permit and his license.

* * *

(33)  Off-premises Catering Permit; Fees. For any licensee,

his servants, agents or employes to cater an event that includes

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the sale and service of alcoholic beverages at a location other

than the licensed premises, unless the licensee shall first have

obtained from the board a special permit to provide such

catering services sell alcohol at a location other than its

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licensed premises, unless the sale is specifically authorized

under this act, or unless the licensee receives a special permit

from the board to do so. Only those licensees currently holding

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a current and valid restaurant, hotel or eating place license

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that has been certified under the board's responsible alcohol

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management program as required by section 471.1 shall be allowed

to apply for such a permit. All servers at the off-premises

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catered event shall be certified under the board's responsible

alcohol management program as required under section 471.1. The

board shall have the power to provide for the issue of such 

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issue the special permits to qualified licensees and to collect

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an annual fee for such permits that shall not exceed five

hundred dollars ($500) per year. All such The fees shall be paid

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into the State Stores Fund. Any violation of this act shall

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subject the licensee to suspension or revocation of his permit

and preclude him from applying for a future off-premises

catering permit. or the board's regulations for governing

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activity occurring under the authority of this permit may be the

basis for the issuance of a citation under section 471, the

nonrenewal of the license under section 470 or the refusal by

the board to issue subsequent permits or honor subsequent dates

on the existing permit. This penalty shall be in addition to any

other remedies available to the enforcement bureau or the board.

Section 11.  Section 505.2(a)(6.1) and (6.3) of the act,

amended December 8, 2004 (P.L.1810, No.239), are amended and the

section is amended by adding a clause to read:

Section 505.2.  Limited Wineries.--(a)  In the interest of

promoting tourism and recreational development in Pennsylvania,

holders of a limited winery license may:

* * *

(4.1)  At the discretion of the board, obtain a farmers

market permit. The permit shall entitle the holder to

participate in more than one farmers market at any given time

and an unlimited number throughout the year and sell alcoholic

cider or wine produced under the authority of the underlying

limited winery license by the bottle or in case lots. Samples

not to exceed one fluid once per brand of wine may be offered

free of charge. A farmers market permit shall be issued upon

proper application and payment of an annual fee of two hundred

fifty dollars ($250). A permit holder may participate in more

than one farmers market at any given time. Sales by permit

holders shall take place during the standard hours of operation

of the farmers market. Written notice of the date, times and

location the permit is to be used shall be provided by the

permit holder to the enforcement bureau at least two (2) weeks

prior to the event. Except as provided in this subsection,

limited wineries utilizing farmers market permits shall be

governed by all applicable provisions of this act as well as by

all applicable regulations adopted by the board.

* * *

(6.1)  Sell food for consumption on or off the licensed

premises and at the limited winery's additional board-approved

locations and sell by the glass, at the licensed premises and at

the limited winery's additional board-approved locations, only

wine and alcoholic ciders that may otherwise be sold by the

bottle.

* * *

(6.3)  Sell alcoholic cider, wine and wine coolers only

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

o'oclock] eleven o'clock postmeridian. [During the period from

Thanksgiving Day through New Year's Day, limited winery sales

locations may remain open to conform with the closing times of

neighboring mall or shopping district businesses but no later

than ten o'clock postmeridian.] A limited winery also may

request approval from the board to extend sales hours in

individual locations at other times during the year or beyond

the limits set forth in this clause. The request shall be made

in writing to the board's Office of the Chief Counsel and shall

detail the exact locations where sales hours are proposed to be

extended, the proposed hours and dates of extended operation and

the reason for the proposed extended hours.

* * *

Section 12.  All acts and parts of acts are repealed insofar

as they are inconsistent with section 445 of the act.

Section 5 13.  This act shall take effect in 60 days. as

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follows:

(1)  The amendment of sections 441, 445 and 471 of the

act shall take effect in 60 days.

(2)  The amendment or addition of sections 406 and

505.2(a)(4.1) of the act shall take effect in 30 days.

(3)  The remainder of this act shall take effect

immediately.