SENATE AMENDED

 

PRIOR PRINTER'S NOS. 194, 1540, 2749

PRINTER'S NO.  2815

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

242

Session of

2011

  

  

INTRODUCED BY EVERETT, BARRAR, COHEN, D. COSTA, GROVE, HENNESSEY, KORTZ, MANN, MUSTIO, PAYTON, PYLE, REICHLEY, STURLA, TOEPEL, VULAKOVICH, HARHAI, MILLER, SONNEY AND KILLION, JANUARY 26, 2011

  

  

SENATOR CORMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS AMENDED, DECEMBER 5, 2011   

  

  

  

AN ACT

  

1

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

2

reenacted, "An act relating to alcoholic liquors, alcohol and

3

malt and brewed beverages; amending, revising, consolidating

4

and changing the laws relating thereto; regulating and

5

restricting the manufacture, purchase, sale, possession,

6

consumption, importation, transportation, furnishing, holding

7

in bond, holding in storage, traffic in and use of alcoholic

8

liquors, alcohol and malt and brewed beverages and the

9

persons engaged or employed therein; defining the powers and

10

duties of the Pennsylvania Liquor Control Board; providing

11

for the establishment and operation of State liquor stores,

12

for the payment of certain license fees to the respective

13

municipalities and townships, for the abatement of certain

14

nuisances and, in certain cases, for search and seizure

15

without warrant; prescribing penalties and forfeitures;

16

providing for local option, and repealing existing laws,"

17

further providing for distilleries further providing for

<--

18

definitions, for authority to issue liquor licenses to

19

hotels, restaurants and clubs, for sales by liquor licensees

20

and restrictions, for prohibited interlocking business, for

21

public venue license, for malt and brewed beverages retail

22

licenses, for prohibitions against the grant of licenses, for

23

sales by manufacturers of malt or brewed beverages and

24

minimum quantities, for distributors' and importing

25

distributors' restrictions on sales, storage, for retail

26

dispensers' restrictions on purchases and sales, for brand

27

registration, for breweries, for licenses not assignable and

28

transfers, for renewal of licenses and temporary provisions

29

for licensees in armed service, for responsible alcohol

30

management, for unlawful acts relative to liquor, alcohol and

 


1

liquor licensees, for unlawful acts relative to malt or

2

brewed beverages and licensees, for hours of operation

3

relative to manufacturers, importing distributors and

4

distributors, for unlawful acts relative to liquor, malt and

5

brewed beverages and licensees, for rights of municipalities

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6

preserved, for reporting of worthless checks, for limited

7

wineries and for distilleries.

8

The General Assembly of the Commonwealth of Pennsylvania

9

hereby enacts as follows:

10

Section 1.  Section 505.4 of the act of April 12, 1951

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11

(P.L.90, No.21), known as the Liquor Code, reenacted and amended

12

June 29, 1987 (P.L.32, No.14) and added December 8, 2004

13

(P.L.1810, No.239), is amended to read:

14

Section 1.  The definitions of "eligible entity" and "public

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15

venue" in section 102 of the act of April 12, 1951 (P.L.90,

16

No.21), known as the Liquor Code, reenacted and amended June 29,

17

1987 (P.L.32, No.14), amended June 25, 2010 (P.L.217, No.35) and

18

June 28, 2011 (P.L.55, No.11), are amended and the section is

19

amended by adding a definition to read:

20

Section 102.  Definitions.--The following words or phrases,

21

unless the context clearly indicates otherwise, shall have the

22

meanings ascribed to them in this section:

23

* * *

24

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

25

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

26

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

27

a nationally chartered club which has been issued a club liquor

28

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

29

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

30

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

31

nationally accredited Pennsylvania nonprofit zoological

32

institution licensed by the United States Department of

33

Agriculture, a nonprofit agricultural association in existence

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1

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

2

existence for at least ten years, a nationally chartered

3

veterans' organization and any affiliated lodge or subdivision

4

of such organization, a fraternal benefit society that is

5

licensed to do business in this Commonwealth and any affiliated

6

lodge or subdivision of such fraternal benefit society, a museum

7

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

8

or township of the first class, a nonprofit corporation engaged

9

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

10

in an incorporated town, an arts council, a nonprofit

11

corporation that operates an arts facility or museum in a city

12

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

13

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

14

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

15

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

16

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

17

has been recognized as such by a municipal resolution, a

18

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

19

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

20

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

21

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

22

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

23

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

24

than fifty years, a nonprofit organization as defined under

25

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

26

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

27

research and treatment of cystic fibrosis, a nonprofit

28

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

29

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

30

educate the public on issues dealing with watershed

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1

conservation, a nonprofit organization as defined under section

2

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

3

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

4

equine assisted activities for children and adults with special

5

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

6

second class with the primary function to serve as an economic

7

generator for the greater southwestern Pennsylvania region by

8

attracting and supporting film, television and related media

9

industry projects and coordinating government and business

10

offices in support of a production, a county tourist promotion

11

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

12

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

13

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

14

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

15

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

16

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

17

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

18

that is comprised of women whose purpose is exclusively

19

educational and charitable in promoting the volunteerism of

20

women and developing and participating in community projects and

21

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

22

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

23

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

24

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

25

and promotion of American history, a nonprofit organization as

26

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

27

1986 whose purpose is to support business and industry, a

28

brewery which has been issued a license to manufacture malt or

29

brewed beverages and has been in existence for at least 100

30

years or a club recognized by Rotary International which is

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1

located in a county of the fourth class and whose purpose is to

2

provide service to others, to promote high ethical standards and

3

to advance world understanding, goodwill and peace through its

4

fellowship of business, professional and community leaders or a

5

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

6

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

7

501(c)(3)) which is located in a borough in a county of the

8

third class and whose purpose is to promote mushrooms while

9

supporting local and regional charities, a museum operated by a

10

not-for-profit corporation in a city of the second class A, a

11

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

12

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

13

second class A and has as its purpose economic and community

14

development, a nonprofit organization as defined under section

15

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

16

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

17

class, a nonprofit social service organization defined under

18

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

19

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

20

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

21

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

22

Internal Revenue Code of 1986 whose main purpose is to

23

temporarily foster stray and unwanted animals and match them to

24

suitable permanent homes or a nonprofit organization as defined

25

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

26

operates either a Main Street Program or Elm Street Program

27

recognized by the Commonwealth, the National Trust for Historic

28

Preservation or both or a noncommercial, educational public

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29

radio or television station that is eligible for qualification

30

under the Corporation for Public Broadcasting,, a nonprofit

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1

radio station that is a member of the National Public Radio

2

network, a nonprofit public television station that is a member

3

of the Pennsylvania Public Television Network or a nonprofit

4

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

5

Revenue Code of 1986 whose purpose is to promote awareness,

6

education and research and to provide a support system for

7

patients with neutropenia and their families through a national

8

resource network.

9

* * *

10

"Public venue" shall mean a stadium, arena, convention

11

center, museum, zoo, amphitheater or similar structure. If the

12

public venue is a cruise terminal owned or leased by a port

13

authority created under the act of June 12, 1931 (P.L.575,

14

No.200), entitled "An act providing for joint action by

15

Pennsylvania and New Jersey in the development of the ports on

16

the lower Delaware River, and the improvement of the facilities

17

for transportation across the river; authorizing the Governor,

18

for these purposes, to enter into an agreement with New Jersey;

19

creating The Delaware River Joint Commission and specifying the

20

powers and duties thereof, including the power to finance

21

projects by the issuance of revenue bonds; transferring to the

22

new commission all the powers of the Delaware River Bridge Joint

23

Commission; and making an appropriation," it shall have no

24

permanent seating requirement. If the public venue is an open-

25

air amphitheater owned by a port authority created under the act

26

of December 6, 1972 (P.L.1392, No.298), known as the "Third

27

Class City Port Authority Act," it shall have no permanent

28

seating requirement. If the public venue is owned by a political

29

subdivision, a municipal authority, the Commonwealth, an

30

authority created under the act of July 29, 1953 (P.L.1034,

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1

No.270), known as the "Public Auditorium Authorities Law," an

2

authority created under Article XXV-A of the act of July 28,

3

1953 (P.L.723, No.230), known as the "Second Class County Code,"

4

an art museum established under the authority of the act of

5

April 6, 1791 (3 Sm.L.20, No.1536), entitled "An act to confer

6

on certain associations of the citizens of this commonwealth the

7

powers and immunities of corporations, or bodies politic in

8

law," or an authority created under Article XXIII (n) or (o) of

9

the act of August 9, 1955 (P.L.323, No.130), known as "The

10

County Code," it shall have permanent seating for at least one

11

thousand (1,000) people; otherwise, it shall have permanent

12

seating for at least two thousand (2,000) people. The term shall

13

also mean any regional history center, multipurpose cultural and

14

science facility, museum or convention or trade show center,

15

regardless of owner and seating capacity, that has a floor area

16

of at least sixty thousand (60,000) square feet in one building.

17

The term shall also mean a convention or conference center owned

18

by a city of the third class or a university which is a member

19

of the Pennsylvania State System of Higher Education which is

20

operated by a university foundation or alumni association,

21

regardless of seating capacity, that has a floor area of at

22

least fifteen thousand (15,000) square feet in one building. The

23

term shall also mean a visitor center, regardless of floor area

24

or seating capacity, that was established under the authority of

25

the Gateway Visitor Center Authorization Act of 1999 (Public Law

26

106-131, 113 Stat. 1678, 16 U.S.C. § 407m).

27

* * *

28

"Zoo" shall mean an accredited member of the Association of

29

Zoos and Aquariums and for purposes of section 412 shall have no

30

square footage or permanent seating requirements.

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1

Section 2.  Section 401(a) of the act, amended July 6, 2005

2

(P.L.135, No.39), is amended to read:

3

Section 401.  Authority to Issue Liquor Licenses to Hotels,

4

Restaurants and Clubs.--(a)  Subject to the provisions of this

5

act and regulations promulgated under this act, the board shall

6

have authority to issue a retail liquor license for any premises

7

kept or operated by a hotel, restaurant or club and specified in

8

the license entitling the hotel, restaurant or club to purchase

9

liquor from a Pennsylvania Liquor Store and to keep on the

10

premises such liquor and, subject to the provisions of this act

11

and the regulations made thereunder, to sell the same and also

12

malt or brewed beverages to guests, patrons or members for

13

consumption on the hotel, restaurant or club premises. Such

14

licensees, other than clubs, shall be permitted to sell malt or

15

brewed beverages for consumption off the premises where sold in

16

quantities of not more than one hundred ninety-two fluid ounces

17

in a single sale to one person as provided for in section 407.

18

Such licenses shall be known as hotel liquor licenses,

19

restaurant liquor licenses and club liquor licenses,

20

respectively. [No person who holds, either by appointment or

21

election, any public office which involves the duty to enforce

22

any of the penal laws of the United States of America or the

23

penal laws of the Commonwealth of Pennsylvania or any penal

24

ordinance or resolution of any political subdivision of this

25

Commonwealth shall be issued any hotel or restaurant liquor

26

license, nor shall such a person have any interest, directly or

27

indirectly, in any such license] No person who holds any public

28

office that involves the duty to enforce any of the penal laws

29

of the United States, this Commonwealth or of any political

30

subdivision of this Commonwealth may have any interest in a

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1

hotel or restaurant liquor license. This prohibition applies to

2

anyone with arrest authority, including, but not limited to,

3

United States attorneys, State attorneys general, district

4

attorneys, sheriffs and police officers. This prohibition shall

5

also apply to magisterial district justices, judges or any other

6

individuals who can impose a criminal sentence. This prohibition

7

does not apply to members of the General Assembly, township

8

supervisors, city councilpersons, mayors without arrest

9

authority, county commissioners and any other public official

<--

10

who does not have the ability to arrest or the ability to impose

11

a criminal sentence. This section does not apply if the proposed

12

premises are located outside the jurisdiction of the individual

13

in question.

14

* * *

15

Section 3.  Section 406(a)(3), (e) and (g) of the act,

16

amended or added December 30, 2003 (P.L.423, No.59) and June 28,

17

2011 (P.L.55, No.11), are amended to read:

18

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

19

* * *

20

(3)  Hotel and restaurant liquor licensees, municipal golf

21

course restaurant liquor licensees and privately-owned public

22

golf course restaurant licensees may sell liquor and malt or

23

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

24

antemeridian and two o'clock antemeridian Monday upon purchase

25

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

26

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

27

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

<--

28

1929," except a licensee that offers a meal on Sundays prior to

29

eleven o'clock antemeridian may then begin serving alcohol on

30

Sundays at nine o'clock antemeridian. Notwithstanding this

<--

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1

provision, a licensee holding such a permit may begin selling

2

liquor and malt or brewed beverages on Sunday between the hours

3

of nine o'clock antemeridian and eleven o'clock antemeridian

4

provided that the licensee offers a meal beginning at nine

5

o'clock antemeridian. Airport restaurant liquor licensees may

6

sell liquor and malt or brewed beverages on Sunday between the

7

hours of seven o'clock antemeridian and two o'clock antemeridian

8

Monday upon purchase of a special permit from the board at an

9

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

10

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

11

1929."

12

* * *

13

(e)  (1)  The holder of a hotel license or the holder of a

14

restaurant license located in a hotel may allow persons to

15

transport liquor or malt or brewed beverages from the licensed

16

portion of the premises to the unlicensed portion of the

17

premises, so long as the liquor or malt or brewed beverages

18

remain on the hotel property. In addition, a holder of a

19

restaurant or club license located on a golf course may sell,

20

furnish or give liquor or malt or brewed beverages on the

21

unlicensed portion of the golf course so long as the liquor or

22

malt or brewed beverages remain on the restaurant, club or golf

23

course. The holder of a restaurant license located immediately

24

adjacent to and under the same roof of a bowling center may

25

allow persons to transport liquor or malt or brewed beverages

26

from the licensed portion of the premises to the unlicensed

27

portion of the premises, so long as the liquor or malt or brewed

28

beverages remain within the bowling center. In addition, the

29

holder of a hotel license or a restaurant license may allow

30

persons who have purchased but only partially consumed a bottle

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1

of wine on the premises to remove the bottle from the premises

2

so long as the bottle was purchased in conjunction with a meal

3

which was consumed on the premises and so long as the bottle is

4

resealed. For purposes of this subsection, "wine" shall have the

5

meaning given to it under section 488(i). For purposes of this

6

[subsection] section and section 432, "meal" shall mean food

<--

7

prepared on the premises, sufficient to constitute breakfast,

8

lunch or dinner; it shall not mean a snack, such as pretzels,

9

popcorn, chips or similar food.

10

(2)  A holder of a restaurant or club license located on a

11

golf course may store liquor or malt or brewed beverages in a

12

permanent facility on the unlicensed portion of the golf course

13

so long as the liquor or malt or brewed beverages remain on the

14

restaurant, club or golf course without regard to whether there

15

is any intervening public thoroughfare.

16

* * *

17

(g)  Notwithstanding any other provision of law or

18

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

19

up to four consecutive or nonconsecutive hours per day and up to

<--

20

fourteen hours per week during which the holder discounts the

21

price of alcoholic beverages. No discounts may be given between

22

the hours of midnight and the legal closing time. Notice of all

23

happy hours shall be visibly posted on the licensed premises

24

seven days prior to the happy hour. Except as provided in this

25

subsection, a licensee shall comply with the provisions of 40

26

Pa. Code § 13.102 (relating to discount pricing practices).

27

Events conducted under the authority of 40 Pa. Code § 13.102(b)

28

shall not be counted against the four-hour per day or fourteen-

29

hour per week limit.

30

Section 4.  Section 411(e) of the act, amended June 25, 2010

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1

(P.L.217, No.35), is amended to read:

2

Section 411.  Interlocking Business Prohibited.--* * *

3

(e)  Except as herein provided, no hotel, restaurant, retail

4

dispenser or club licensee, and no officer, director or

5

stockholder, agent or employe of any such licensee shall in any

6

wise be interested, directly or indirectly, in the ownership or

7

leasehold of any property or the equipment of any property or

8

any mortgage lien against the same, used by a distributor,

9

importing distributor, or by an importer or sacramental wine

10

licensee, in the conduct of his business; nor shall any hotel,

11

restaurant, retail dispenser or club licensee, or any officer,

12

director, stockholder, agent or employe of any such licensee,

13

either directly or indirectly, lend any moneys, credit, or give

14

anything of value or the equivalent thereof, to any distributor,

15

importing distributor, importer or sacramental wine licensee,

16

for equipping, fitting out, or maintaining and conducting,

17

either in whole or in part, an establishment used in the conduct

18

of his business.

19

The purpose of this section is to require a separation of the

20

financial and business interests between manufacturers and

21

holders of hotel or restaurant liquor licenses and, as herein

22

provided, of club licenses, issued under this article, and no

23

person shall, by any device whatsoever, directly or indirectly,

24

evade the provisions of the section. But in view of existing

25

economic conditions, nothing contained in this section shall be

26

construed to prohibit the ownership of property or conflicting

27

interest by a manufacturer of any place occupied by a licensee

28

under this article after the manufacturer has continuously owned

29

and had a conflicting interest in such place for a period of at

30

least five years prior to July eighteenth, one thousand nine

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1

hundred thirty-five: Provided, however, That this clause shall

2

not prohibit any hotel, restaurant or club liquor licensee from

3

owning land which is leased to, and the buildings thereon owned

4

by, a holder of a retail dispenser's license; and nothing in

5

this clause shall prevent the issuance of a retail dispenser's

6

license to a lessee of such lands who owns the buildings

7

thereon: And, provided further, That nothing contained in this

8

section shall be construed to prohibit any hotel, restaurant,

9

retail dispenser or club licensee or any officer, director or

10

stockholder, agent or employe of any such licensee from having a

11

financial or other interest, directly or indirectly in the

12

ownership or leasehold of any property or the equipment of any

13

property or any mortgage lien against same, used, leased by an

14

importer or sacramental wine licensee for the exclusive purpose

15

of maintaining commercial offices and on the condition that said

16

property is not used for the storage or sale of liquor or malt

17

or brewed beverages in any quantity: And, provided further, That

18

nothing contained in this section shall prohibit an officer or

19

member of a licensed privately owned private golf course

20

catering club from having an interest in a limited winery

21

license: And, provided further, That nothing contained in this

22

section shall be construed to prohibit a member of the governing

23

board of a public authority created under subdivision (n) of

24

Article XXIII of the act of August 9, 1955 (P.L.323, No.130),

25

known as "The County Code," from having an interest in a

26

distributor or importing distributor license notwithstanding the

27

fact that the public authority has an interest in one or more

28

retail licenses or acts as a landlord for one or more retail

29

licenses: And, provided further, That, nothing in this section

30

may prohibit an employe of a hotel or restaurant licensee from

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1

having an interest in any property used by a limited winery

2

licensee or in guaranteeing any loans, or lending any moneys,

3

providing credit or giving anything of value to a limited winery

4

licensee or its officers, directors and shareholders, provided

5

that the person also is not a licensed director an officer of or

<--

6

does not have any interest in or exercise any control over any

7

other licensed entity that engages in any sales to or from the

8

licensee: And, provided further, That, notwithstanding any other

9

provision of this section, an entity may acquire both a

10

manufacturer's license or a limited winery license and a hotel,

11

restaurant or retail dispenser license for use at the same

12

location and more than one location may be so licensed. The

13

licenses and a person's interest in the licenses or in the

14

entity holding the licenses shall not be subject to this

15

section. Provided further, That, a person who is a holder of

16

five per centum (5%) or less of securities or other interests in

17

a publicly or privately held domestic or foreign corporation,

18

partnership, limited liability company or other form of legal

19

entity owning a restaurant liquor license or retail dispenser's

20

license shall not be deemed to possess a financial or business 

<--

21

interest and is not subject to the provisions of this section,

22

provided that the person is not a licensed director an officer 

<--

23

of, employe of or does not have any interest in or exercise any

24

control over any other licensed entity that engages in any sales

25

to or from  the restaurant liquor or retail dispenser licensee

26

in which the person holds the five per centum (5%) or less

27

interest. For purposes of this subsection, the existence of the

<--

28

interest and the size of the interest shall be determined

29

pursuant to the provisions of this act.

30

Section 5.  Section 412(b) 412(f)(2) of the act, amended

<--

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1

February 21, 2002 (P.L.103, No.10), is amended to read:

2

Section 412.  Public Venue License.--* * *

<--

3

(b)  An application for a restaurant liquor license under

4

this section may be made by the owner of the public venue, the

5

operator of the public venue or by a concessionaire designated

6

by the governing body of either the owner of the public venue or

7

the operator. The application and issuance of the license is

8

subject to sections 403 and 404 unless otherwise stated, except

9

that private banquets and other events at zoos may be held at

10

any site within zoo property. The licensing period shall be as

11

set forth by the board under section 402. The application,

12

renewal and filing fees shall be as prescribed in section 614-

13

A(25) of the act of April 9, 1929 (P.L.177, No.175), known as

14

"The Administrative Code of 1929."

15

* * *

16

Section 412.  Public Venue License.--* * *

<--

17

(f)  Licenses issued under this section are to be considered

18

restaurant liquor licenses. However, the following additional

19

restrictions and privileges apply:

20

* * *

21

(2)  Sales of alcoholic beverages before, during and after

22

all professional and amateur athletic events on the premises

23

shall be limited to sales of malt or brewed beverages in

24

shatterproof containers. Sales of alcoholic beverages before,

25

during and after performing arts events or other entertainment

26

events may consist of liquor or malt or brewed beverages in

27

shatterproof containers. Sales during trade shows, conventions,

28

banquets or at other events, or sales made in the club seats or

29

at a restaurant facility, may consist of liquor or malt or

30

brewed beverages in any type of container; however, any liquor

- 15 -

 


1

or malt or brewed beverages sold in the club seats or restaurant

2

facility must remain in the club seating level or restaurant

3

facility. For purposes of this section, a club seat is any

4

seating located on the designated club seating level and

5

partitioned from general seating by a wall, divider, partial

6

wall or railing. The club seating level must not be accessible

7

by the general public. Sales at zoos during private banquets and

8

other events may be at any site within zoo property and may

9

consist of any type of alcohol in any type of container. The

10

board's records shall clearly delineate where the sale of liquor

11

or malt or brewed beverages in any type of container may occur.

12

* * *

13

Section 6.  Section 432(f) of the act, amended November 29,

14

2006 (P.L.1421, No.155), is amended to read:

15

Section 432.  Malt and Brewed Beverages Retail Licenses.--* *

16

*

17

(f)  Hotel, eating places, or municipal golf course retail

18

dispenser licensees that offer a meal on Sundays prior to eleven

<--

19

o'clock antemeridian may sell malt or brewed beverages between

20

the hours of [eleven] nine o'clock antemeridian on Sunday and

<--

21

two o'clock antemeridian on Monday upon purchase of a special

22

permit from the board at an annual fee as prescribed in section

23

614-A of the act of April 9, 1929 (P.L.177, No.175), known as

24

"The Administrative Code of 1929," which shall be in addition to

25

any other license fees. Notwithstanding this provision, a

<--

26

licensee holding such a special permit may begin selling malt or

27

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

28

antemeridian and eleven o'clock antemeridian provided that the

29

licensee offers a meal, as that term is defined in section 406,

30

beginning at nine o'clock antemeridian.

- 16 -

 


1

Section 7.  Section 437(d) of the act, is amended to read:

2

Section 437.  Prohibitions Against the Grant of Licenses.--*

3

* *

4

(d)  [No person who holds, either by appointment or election,

5

any public office which involves the duty to enforce any of the

6

penal laws of the United States of America or any of the penal

7

laws of this Commonwealth or any penal ordinance or resolution

8

of any political subdivision of this Commonwealth shall be

9

issued any manufacturer's, importing distributor's,

10

distributor's or retail dispenser's license, nor shall such a

11

person have any interest, directly or indirectly, in any such

12

license] No person who holds any public office that involves the

13

duty to enforce any of the penal laws of the United States, this

14

Commonwealth or of any political subdivision of this

15

Commonwealth may have any interest in a manufacturer's,

16

importing distributor's, distributor's or retail dispenser's

17

license. This prohibition applies to anyone with arrest

18

authority, including, but not limited to, United States

19

attorneys, State attorneys general, district attorneys, sheriffs

20

and police officers. This prohibition shall also apply to

21

magisterial district justices, judges or any other individuals

22

who can impose a criminal sentence. This prohibition does not

23

apply to members of the General Assembly, township supervisors,

24

city councilpersons, mayors without arrest authority, county

<--

25

commissioners and any other public official who does not have

26

the ability to arrest or the ability to impose a criminal

27

sentence. This section does not apply if the proposed premises

28

are located outside the jurisdiction of the individual in

29

question.

30

* * *

- 17 -

 


1

Section 8.  Section 440 of the act, amended July 17, 2003

2

(P.L.63, No.15), is amended to read:

3

Section 440.  Sales by Manufacturers of Malt or Brewed

4

Beverages; Minimum Quantities.--[No manufacturer shall sell any

5

malt or brewed beverages for consumption on the premises where

6

sold, nor sell or deliver any such malt or brewed beverages in

7

other than original containers approved as to capacity by the

8

board, nor in quantities of less than a case or original

9

containers containing sixty-four ounces or more which may be

10

sold separately; nor shall any manufacturer] A manufacturer may

11

sell malt or brewed beverages produced and owned by the

12

manufacturer to individuals on the licensed premises for

13

consumption on the licensed premises where sold only if it

14

complies with the conditions and regulations placed upon holders

15

of brewery licenses under section 446(1). A manufacturer also

16

may sell any malt or brewed beverages produced and owned by the

17

manufacturer to individuals on the licensed premises for

18

consumption off the licensed premises in containers or packages

19

of unlimited quantity and of any volume. No manufacturer may 

20

maintain or operate within the Commonwealth any place or places

21

other than the place or places covered by his or its license

22

where malt or brewed beverages are sold or where orders are

23

taken.

24

Section 9.  Sections 441 and 442 of the act are amended by

25

adding subsections to read:

26

Section 441.  Distributors' and Importing Distributors'

27

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

28

(i)  Notwithstanding any other provision to the contrary,

29

when making a sale of malt or brewed beverages to a private

30

individual, no distributor or importing distributor may be

- 18 -

 


1

required to collect the name, address or any other identifying

2

information of the private individual for the purpose of keeping

3

a record of the quantity of cases or volume of malt or brewed

4

beverages purchased.

5

Section 442.  Retail Dispensers' Restrictions on Purchases

6

and Sales.--* * *

7

(g)  Notwithstanding any other provision of law or

8

regulation, the holder of a retail dispenser license may hold

9

happy hours up to four consecutive or nonconsecutive hours per

<--

10

day and up to fourteen hours per week during which the holder

11

discounts the price of alcoholic beverages. No discounts may be

12

given between the hours of midnight and the legal closing time.

13

Notice of all happy hours shall be visibly posted on the

14

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

<--

15

provided in this subsection, a licensee shall comply with the

16

provisions of 40 Pa. Code § 13.102 (relating to discount pricing

17

practices). Events conducted under the authority of 40 Pa. Code

18

§ 13.102(b) (relating to discount pricing practices) shall not

<--

19

be counted against the four-hours per day or fourteen-hours per

20

week.

21

Section 10.  Section 443(g) of the act, amended June 25, 2010

22

(P.L.217, No.35), is amended to read:

23

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

24

(g)  The purpose of this section is to require a separation

25

of the financial and business interests between the various

26

classes of business regulated by subdivision (B) of this

27

article, and no person or corporation shall, by any device

28

whatsoever, directly or indirectly, evade the provisions of this

29

section. But in view of existing economic conditions, nothing

30

contained in this section shall be construed to prohibit the

- 19 -

 


1

ownership of property or conflicting interest by a malt or

2

brewed beverage manufacturer of any place occupied by a

3

distributor, importing distributor or retail dispenser after the

4

manufacturer has continuously owned and had a conflicting

5

interest in such place for a period of at least five years prior

6

to the eighteenth day of July, one thousand nine hundred thirty-

7

five: Provided, however, That a holder of a manufacturer's

8

license under section 431(a) who is eligible to operate a

9

brewery pub under section 446(2) or a limited winery as provided

10

for under section 505.2 may also hold and operate under a hotel

11

liquor license, a restaurant liquor license or a malt and brewed

12

beverages retail license on the manufacturer's or limited

13

winery's licensed premises. The hotel liquor license or

14

restaurant liquor license or the malt and brewed beverages

15

retail license shall be acquired by the manufacturer or limited

16

winery subject to section 461 and shall satisfy all requirements

17

for each respective license: And, provided further, That nothing

18

contained in this section shall be construed to prohibit a

19

member of the governing board of a public authority created

20

under subdivision (n) of Article XXIII of the act of August 9,

21

1955 (P.L.323, No.130), known as "The County Code," from having

22

an interest in a distributor or importing distributor license

23

notwithstanding the fact that the public authority has an

24

interest in one or more retail licenses or acts as a landlord

25

for one or more retail licenses.

26

A person who is a holder of five per centum (5%) or less of

27

securities or other interests in a publicly or privately held

28

domestic or foreign corporation, partnership, limited liability

29

company or other form of legal entity owning a restaurant liquor

30

license or retail dispenser's license shall not be deemed to

- 20 -

 


1

possess a financial or business interest and is not subject to

<--

2

the provisions of this section, provided that the person is not

3

a licensed director an officer of, employe of or does not have

<--

4

any interest in or exercise any control over any other licensed

5

entity that engages in any sales to or from the restaurant

6

liquor or retail dispenser licensee in which the person holds

7

the five per centum (5%) or less interest. For purposes of this

<--

8

subsection, the existence of the interest and the size of the

9

interest shall be determined pursuant to the provisions of this

10

act.

11

The term "manufacturer" as used in this section shall include

12

manufacturers of malt or brewed beverages as defined in this act

13

and any person manufacturing any malt or brewed beverages

14

outside of this Commonwealth.

15

Section 11.  Section 445(b) of the act, amended June 28, 2011

16

(P.L.55, No.11), is amended to read:

17

Section 445.  Brand Registration.--* * *

18

(b)  The board shall employ a malt beverage compliance

19

officer whose duties shall include reviewing label registration

20

to ensure compliance with this act and investigating reports of

21

unregistered brands of malt or brewed beverages being sold by 

22

licensees and investigation of worthless checks in addition to 

<--

23

[in addition to] reports of worthless checks and any other

<--

24

duties the board shall assign the officer. If the malt beverage

25

compliance officer finds that a licensee is selling malt or

26

brewed beverages that are unregistered in this Commonwealth, he

27

shall give the manufacturer of the malt or brewed beverages

28

written notice that the manufacturer has ten days to register

29

the malt or brewed beverages with the board. During that ten-day

30

period in which the manufacturer has to come into compliance

- 21 -

 


1

with brand registration, the unregistered malt or brewed

2

beverages shall remain on the licensee's premises but may not be

3

sold. Should the manufacturer fail to register the malt or

4

brewed beverages with the board within ten days, the

5

manufacturer shall be required to remove the unregistered malt

6

or brewed beverages from the licensee's premises and reimburse

7

the licensee for all unregistered products that cannot be sold

8

in this Commonwealth. If a malt beverage compliance officer

9

receives notification that a licensee issued a worthless check,

10

he the officer shall give the licensee written notice that the

<--

11

licensee has ten days from the date the notice was mailed to

<--

12

honor that check. Should the licensee fail to honor the check

13

within ten days from the date the notice was mailed, the matter

<--

14

will shall be turned over to the enforcement bureau for

<--

15

citation.

16

Section 12.  Section 446 of the act, amended June 30, 1992

17

(P.L.327, No.66), May 31, 1996 (P.L.312, No.49) and January 6,

18

2006 (P.L.1, No.1), is amended to read:

19

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

20

may:

21

(1)  Sell malt or brewed beverages produced and owned by the

22

brewery [on the licensed premises] under such conditions and

23

regulations as the board may enforce, to individuals for

24

consumption on the licensed premises in any container or package

25

of any volume and to hotel, restaurant, club and public service

26

liquor licensees.

27

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

28

premises under such conditions and regulations as the board may

29

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

30

irrespective of the volume of food sales if the licensed

- 22 -

 


1

premises are at a public venue location. The holder of a brewery

2

license may sell at its brewery pub premises Pennsylvania wines

3

it has purchased from either the holder of a Pennsylvania

4

limited winery license or from the board: Provided, however,

5

That said wines must be consumed at the licensed brewery pub

6

premises.

7

(3)  Use brewery storage and distribution facilities for the

8

purpose of receiving, storing and distributing malt or brewed

9

beverages manufactured outside this Commonwealth if the

10

beverages are distributed in this Commonwealth only through

11

specific importing distributors who shall have first been given

12

distributing rights for such products in designated geographical

13

areas through the distribution system required for out-of-State

14

manufacturers under section 431(b) as well as all other

15

pertinent sections of this act. The manufacturer of the

16

beverages must comply with section 444.

17

(4)  Apply for and hold a hotel liquor license, a restaurant

18

liquor license or a malt and brewed beverages retail license to

19

sell for consumption at the restaurant or brewery pub on the

20

licensed brewery premises, liquor, wine and malt or brewed

21

beverages regardless of the place of manufacture, under the same

22

conditions and regulations as any other hotel liquor license,

23

restaurant liquor license or malt and brewed beverages retail

24

license, but must brew at least two hundred fifty barrels per

25

year. Each holder of a brewery license who receives a hotel

26

liquor license, a restaurant liquor license or a malt or brewed

27

beverages retail license to operate a brew pub shall not sell

28

directly to any person licensed by this act, except if any malt

29

or brewed beverage is to be distributed in this Commonwealth it

30

shall be only through specific importing distributors who shall

- 23 -

 


1

have first been given distributing rights for such products in

2

designated geographical areas through the distribution system

3

required for out-of-State manufacturers under section 431(b) as

4

well as all other pertinent sections of this act.

5

(b)  The holder of a brew pub license may obtain an off-

6

premises catering permit subject to section 493(33) to hold a

7

catered function off the licensed premises and on otherwise

8

unlicensed premises where the licensee may sell wine, liquor 

<--

9

produced by a licensed limited winery and malt or brewed

<--

10

beverages produced by the brewery by the glass, open bottle or

<--

11

other container, and in any mixture, for consumption on those

12

premises. Functions conducted under the authority of the permit

13

shall be subject to the following:

14

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

15

that the license holder may otherwise sell alcohol;

16

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

17

be in compliance with the responsible alcohol management

18

provisions under section 471.1;

19

(3)  each catered function shall last no longer than one day

20

and not more than fifty catered functions may be held each

21

calendar year by each license holder for use with a particular

22

license;

23

(4)  a catered function shall not be held at a location that

24

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

25

license;

26

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

27

license is in safekeeping;

28

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

29

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

30

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

- 24 -

 


1

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

2

subject to a pending license suspension under section 471 or the

3

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

4

under section 471(b);

5

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

6

the applicant may transport alcohol to and from its licensed

7

premises to the proposed premises; and

8

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

9

catered function shall be provided to the local police or if

10

there is no local police force to the enforcement bureau at

11

least forty-eight hours in advance of the event.

12

Section 13.  Section 468 of the act is amended by adding a

13

subsection to read:

14

Section 468.  Licenses Not Assignable; Transfers.--* * *

15

(e)  Board-approved interior connections between licensed and

<--

16

unlicensed premises shall not be greater than ten feet wide.

17

(e)  Notwithstanding any other provision of law, the board

<--

18

may not approve an interior connection that is greater than ten

19

feet wide between a licensed business and another business. This

20

subsection shall not prohibit the board from approving a renewal

21

application of a license, even if the licensed business has an

22

interior connection that is greater than ten feet wide to an

23

unlicensed business, if the board had approved the interior

24

connection prior to the effective date of this subsection.

25

Section 14.  Section 470(a) of the act, amended December 9,

26

2002 (P.L.1653, No.212), is amended to read:

27

Section 470.  Renewal of Licenses; Temporary Provisions for

28

Licensees in Armed Service.--(a)  All applications for renewal

29

of licenses under the provisions of this article shall be filed

30

with tax clearance from the Department of Revenue and the

- 25 -

 


1

Department of Labor and Industry and requisite license and

2

filing fees at least sixty days before the expiration date of

3

same: Provided, however, That the board, in its discretion, may

4

accept nunc pro tunc a renewal application filed less than sixty

5

days before the expiration date of the license with the required

6

fees, upon reasonable cause shown and the payment of an

7

additional filing fee of one hundred dollars ($100.00) for late

8

filing: And provided further, That except where the failure to

9

file a renewal application on or before the expiration date has

10

created a license quota vacancy after said expiration date which

11

has been filled by the issuance of a new license, after such

12

expiration date, but before the board has received a renewal

13

application nunc pro tunc within the time prescribed herein the

14

board, in its discretion, may, after hearing, accept a renewal

15

application filed within two years after the expiration date of

16

the license with the required fees upon the payment of an

17

additional filing fee of two hundred fifty dollars ($250.00) for

18

late filing. Where any such renewal application is filed less

19

than sixty days before the expiration date, or subsequent to the

20

expiration date, no license shall issue upon the filing of the

21

renewal application until the matter is finally determined by

22

the board and if an appeal is taken from the board's action the

23

courts shall not order the issuance of the renewal license until

24

final determination of the matter by the courts. The board may

25

enter into an agreement with the applicant concerning additional

26

restrictions on the license in question. If the board and the

27

applicant enter into such an agreement, such agreement shall be

28

binding on the applicant. Failure by the applicant to adhere to

29

the agreement will be sufficient cause to form the basis for a

30

citation under section 471 and for the nonrenewal of the license

- 26 -

 


1

under this section. A renewal application will not be considered

2

filed unless accompanied by the requisite filing and license

3

fees and any additional filing fee required by this section.

4

Unless the board shall have given ten days' previous notice to

5

the applicant of objections to the renewal of his license, based

6

upon violation by the licensee or his servants, agents or

7

employes of any of the laws of the Commonwealth or regulations

8

of the board relating to the manufacture, transportation, use,

9

storage, importation, possession or sale of liquors, alcohol or

10

malt or brewed beverages, or the conduct of a licensed

11

establishment, or unless the applicant has by his own act become

12

a person of ill repute, or unless the premises do not meet the

13

requirements of this act or the regulations of the board, the

14

license of a licensee shall be renewed. Notwithstanding any

15

other provision of this act, a noise violation shall not be the

16

sole basis for objection by the board to the renewal of a

17

license unless the licensee has received six prior adjudicated

18

noise citations within a twenty-four-month period.

19

* * *

20

Section 15.  Section 471.1 of the act is amended by adding a

21

subsection to read:

22

Section 471.1.  Responsible Alcohol Management.--* * *

23

(g)  Unless successfully completed prior to appointment, a

24

manager appointed by any restaurant, eating place retail

25

dispenser, hotel, club, limited distillery licensee or

26

distributor licensee shall be required to complete the

27

manager/owner training under subsection (c) within one hundred

28

eighty days of approval of appointment by the board.

29

Section 16.  Sections 491(12) and 492(9) and (12) of the act

30

are amended to read:

- 27 -

 


1

Section 491.  Unlawful Acts Relative to Liquor, Alcohol and

2

Liquor Licensees.--

3

It shall be unlawful--

4

* * *

5

(12)  Delivery of Liquor by Certain Licensees. For a liquor

6

licensee permitted to deliver liquor, to make any deliveries

7

except in his own vehicles bearing his name, address and license

8

number on each side in [letters not smaller than [four] two 

<--

9

inches in height] a size identifiable by Liquor Control

<--

10

Enforcement, or in the vehicle of another person duly authorized

11

to transport liquor within this Commonwealth.

12

* * *

13

Section 492.  Unlawful Acts Relative to Malt or Brewed

14

Beverages and Licensees.--

15

It shall be unlawful--

16

* * *

17

(9)  Transportation of Malt or Brewed Beverages by Licensee.

18

For a malt or brewed beverage licensee, to deliver or transport

19

any malt or brewed beverages, excepting in vehicles bearing the

20

name and address and license number of such licensee painted or

21

affixed on each side of such vehicle in [letters no smaller than 

<--

22

[four] two inches in height] a size identifiable by Liquor

<--

23

Control Enforcement.

24

* * *

25

(12)  Distributors and Importing Distributors Engaging in

26

Other Business. For any distributor or importing distributor, or

27

his servants, agents or employes, without the approval of the

28

board, and then only in accordance with board regulations, to

29

engage in any other business whatsoever, except the business of

30

distributing malt or brewed beverages[.], except that the sale

- 28 -

 


1

of the following goods shall be permitted on the licensed

2

premises of a distributor or importing distributor:

3

(i)  Any book, magazine or other publication related to malt

4

or brewed beverages.

5

(ii)  Any equipment, ingredients or other supplies necessary

6

for the unlicensed manufacture of malt or brewed beverages as

7

described in paragraph (1), commonly known as "homebrewing."

8

* * *

9

Section 17.  Section 492.1(c) of the act, amended January 6,

10

2006 (P.L.1, No.1), is amended to read:

11

Section 492.1.  Hours of Operation Relative to Manufacturers,

12

Importing Distributors and Distributors.--* * *

13

(c)  In addition to the hours authorized under subsections

14

(a) and (b), manufacturers, importing distributors and

15

distributors, upon purchasing a permit from the board at an

16

annual fee of one hundred dollars ($100), may sell malt or

17

brewed beverages to persons not licensed under this act or to a

18

holder of a special occasion permit on Sunday between the hours

19

of [noon] nine o'clock antemeridian and [five] nine o'clock

20

postmeridian.

21

* * *

22

Section 18.  Section 493(12) and (26) of the act, amended

23

February 21, 2002 (P.L.103, No.10), are amended and the section

24

is amended by adding a paragraph to read:

25

Section 493.  Unlawful Acts Relative to Liquor, Malt and

26

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

27

in this section, shall mean those persons licensed under the

28

provisions of Article IV, unless the context clearly indicates

29

otherwise.

30

It shall be unlawful--

- 29 -

 


1

* * *

2

(12)  Failure to Have Records on Premises. For any liquor

3

licensee, or any importing distributor, distributor or retail

4

dispenser, to fail to keep [on the licensed premises] for a

5

period of at least two years complete and truthful records

6

covering the operation of his licensed business, particularly

7

showing the date of all purchases of liquor and malt or brewed

8

beverages, the actual price paid therefor, and the name of the

9

vendor, including State Store receipts, or for any licensee, his

10

servants, agents or employes, to refuse the board or an

11

authorized employe of the board or the enforcement bureau access

12

thereto or the opportunity to make copies of the same when the

13

request is made during business hours. The records from the most

14

recent six-month period must be maintained on the licensed

15

premises. Records for the remainder of the two-year period may

16

be kept off the licensed premises so long as the records are

17

returned to the licensed premises within twenty-four hours of a

18

request by the board or enforcement bureau. A licensee may

19

remove the records for the most recent six-month period from the

20

licensed premises only for a lawful business purpose provided

21

that they are returned to the premises when that business is

22

completed. Prior to removing the records from the premises, the

<--

23

licensee must notify the enforcement bureau and identify the

24

person who will be in possession of them, the location where

25

they will be held, the reason the records need to be removed

26

from the premises and when the licensee expects to have the

27

records returned.

28

* * *

29

(26)  Worthless Checks. For any retail liquor licensee or any

30

retail dispenser, distributor or importing distributor, to make,

- 30 -

 


1

draw, utter, issue or deliver, or cause to be made, drawn,

2

uttered, issued or delivered, any check, draft or similar order,

3

for the payment of money in payment for any purchase of malt or

4

brewed beverages, when such retail liquor licensee, retail

5

dispenser, distributor or importing distributor, has not

6

sufficient funds in, or credit with, such bank, banking

7

institution, trust company or other depository, for the payment

8

of such check. Any person who is a licensee under the provisions

9

of this article, who shall receive in payment for malt or brewed

10

beverages sold by him any check, draft or similar order for the

11

payment of money, which is subsequently dishonored by the bank,

12

banking institution, trust company or other depository, upon

13

which drawn, for any reason whatsoever, shall, within five days

14

of receipt of notice of such dishonor, notify by certified mail

15

the person who presented the said worthless check, draft or

16

similar order and the malt beverage compliance officer for the

17

board. If the violation of this clause [is the first such

18

violation by the licensee that calendar year] involving a check,

19

draft or similar order from the purchaser to the seller [and if

20

the check, draft or similar order] is subsequently honored

21

within ten days from the day it was made, drawn, uttered, issued

22

or delivered, then the [enforcement bureau shall issue an

23

administrative warning in lieu of] malt beverage compliance

24

officer shall not turn the matter over to the enforcement bureau

25

for a citation.

26

* * *

27

(34)  Noise. A Notwithstanding any law or regulation to the

<--

28

contrary, a licensee may not use or permit to be used inside or

29

outside of the licensed premises a loudspeaker or similar device

30

whereby the sound of music or other entertainment, or the

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1

advertisement thereof, can be heard at an unreasonable level 

<--

2

beyond the licensee's property line.

3

Section 18.1.  Section 493.1(d) of the act, added April 13,

<--

4

2006 (P.L.78, No.26), is amended to read:

5

Section 493.1.  Rights of Municipalities Preserved.--* * *

6

(d)  (1)  Notwithstanding any other provision of law to the

7

contrary, a restaurant liquor license located on premises owned

8

by a city of the first class, listed on the National Register of

9

Historic Places and which contains a structure that is at least

10

one hundred (100) years old shall not be subject to the board's

11

regulations regarding amplified music.

12

(2)  Notwithstanding any other provision of law to the

13

contrary, a limited winery license that is located in a second

14

class township in a class 2A county that has a State historic

15

site owned and operated by the Commonwealth under the direction

16

of the Pennsylvania Historic and Museum Commission and is

17

located on property that also contains a building that is listed

18

on the registry of historic places of a class 2A county shall

19

not be subject to the board's regulations regarding amplified

20

music.

21

Section 19.  Section 496 of the act, amended February 21,

22

2002 (P.L.103, No.10), is amended to read:

23

Section 496.  Reporting of Worthless Checks.--Any person who

24

is a licensee under the provisions of this article who shall

25

receive in payment for malt or brewed beverages sold by him any

26

check, draft or similar order, for the payment of money, which

27

is subsequently dishonored by the bank, banking institution,

28

trust company or other depository, upon which drawn, for any

29

reason whatsoever, and which violates the provisions of section

30

493(26), shall, within [twenty] five days of receipt of notice

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1

of such dishonor, notify the malt beverage compliance officer of

2

the board thereof. Such notification to the [board] malt

3

beverage compliance office shall be in such manner and form as

4

the board shall direct.

5

Section 20.  Section 505.2(a)(4) of the act, amended July 16,

6

2007 (P.L.107, No.34), is amended to read:

7

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

8

promoting tourism and recreational development in Pennsylvania,

9

holders of a limited winery license may:

10

* * *

11

(4)  At the discretion of the board, obtain a special permit

12

to participate in alcoholic cider, wine and food expositions off

13

the licensed premises. A special permit shall be issued upon

14

proper application and payment of a fee of thirty dollars ($30)

15

per day for each day of permitted use, not to exceed [five (5)]

16

thirty (30) consecutive days. The total number of days for all

17

the special permits may not exceed [forty (40)] one hundred

18

(100) days in any calendar year. A special permit shall entitle

19

the holder to engage in the sale by the glass, by the bottle or

20

in case lots of alcoholic cider or wine produced by the

21

permittee under the authority of a limited winery license.

22

Holders of special permits may provide tasting samples of wines

23

in individual portions not to exceed one fluid ounce. Samples at

24

alcoholic cider, wine and food expositions may be sold or

25

offered free of charge. Except as provided herein, limited

26

wineries utilizing special permits shall be governed by all

27

applicable provisions of this act as well as by all applicable

28

regulations or conditions adopted by the board.

29

For the purposes of this clause, "alcoholic cider, wine and

30

food expositions" are defined as affairs held indoors or

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1

outdoors with the intent of promoting Pennsylvania products by

2

educating those in attendance of the availability, nature and

3

quality of Pennsylvania-produced alcoholic ciders and wines in

4

conjunction with suitable food displays, demonstrations and

5

sales. Alcoholic cider, wine and food expositions may also

6

include activities other than alcoholic cider, wine and food

7

displays, including arts and crafts, musical activities,

8

cultural exhibits, agricultural exhibits and farmers markets.

9

* * *

10

Section 21.  Section 505.4 of the act, added December 8, 2004

11

(P.L.1810, No.239), is amended to read:

12

Section 505.4.  Distilleries.--(a)  The board may issue a

13

distillery of historical significance license to any distillery

14

which was established prior to January 1, 1875. The holder of

15

the license may manufacture and sell liquor produced on the

16

licensed premises to the board, to entities licensed by the

17

board and to the public under such conditions and regulations as

18

the board may enforce. Production at the distillery of

19

historical significance shall be limited to an amount not to

20

exceed twenty thousand (20,000) gallons per year. The distillery

21

does not need to establish continuous operation since January 1,

22

1875, in order to qualify for a license under this section.

23

(b)  (1)  The board may issue a limited distillery license

24

that will allow the holder thereof to operate a distillery that

25

shall not exceed production of forty thousand (40,000) one

<--

26

hundred thousand (100,000) gallons of distilled liquor per year.

27

The holder of the license may manufacture and sell bottled

28

liquors produced on the licensed premises to the board, to

29

entities licensed by the board and to the public between the

30

hours of nine o'clock antemeridian and nine eleven o'clock

<--

- 34 -

 


1

postmeridian so long as a specific code of distilled liquor

2

which is listed for sale as a stock item by the board in State

3

liquor stores may not be offered for sale at a licensed limited

4

distillery location at a price which is lower than that charged

5

by the board and under such conditions and regulations as the

6

board may enforce.

7

(2)  The (2)  (i)  The holder of a limited distillery license

<--

8

may, separately or in conjunction with other limited distillery

9

licensees, sell bottled liquors produced by the distillery at no

10

more than two (2) board-approved locations other than the

11

licensed premises, with no bottling or production requirement at

12

those additional board-approved locations and under such

13

conditions and regulations as the board may enforce to the

14

board, to individuals and to entities licensed by the board.

15

(ii)  If two or more limited distilleries apply to operate an

<--

16

additional board-approved location in conjunction with each

17

other, the distilleries need only have one board-approved

18

manager for the location, need only pay one application fee and

19

need not designate specific or distinct areas for each

20

distillery's licensed area. A limited distillery must file an

21

application for the additional board-approved location, and that

22

location shall count as one of the two permitted for each

23

limited distillery. A limited distillery is responsible for

24

keeping only its own complete records. A limited distillery may

25

be cited for a violation of the recordkeeping requirements of

26

sections 512 and 513 pertaining to its own records only.

27

(3)  The holder of a limited distillery license may apply for

28

and hold a hotel liquor license, a restaurant liquor license or

29

a malt and brewed beverages retail license to sell for

30

consumption at the restaurant or limited distillery on the

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1

licensed distillery premises liquor, wine and malt or brewed

2

beverages regardless of the place of manufacture under the same

3

conditions and regulations as any other hotel liquor license,

4

restaurant liquor license or malt and brewed beverages retail

5

license.

6

(4)  The holder of a limited distillery license may sell food

<--

7

for consumption on or off the licensed premises and sell by the

8

glass only liquor that may otherwise be sold by the bottle. The

<--

9

holder of a limited distillery license may sell food for

10

consumption on or off the licensed premises and at the limited

11

distillery's additional board-approved locations, and may sell

12

by the glass, at the licensed premises and at the limited

13

distillery's additional board-approved locations, only liquor

14

that may otherwise be sold by the bottle.

15

(5)  The holder of a limited distillery license may provide

16

tasting samples of liquor that in individual portions not to 

<--

17

total do not exceed one (1) fluid ounce one and one-half (1.5)

<--

18

fluid ounces per person on the licensed premises and at the two

19

(2) board-approved locations. Samples may be sold or provided

20

free of charge and may only be provided between the hours of

21

nine o'clock antemeridian and nine eleven o'clock postmeridian.

<--

22

(6)  The fee for the limited distillery license shall be in

23

an amount to be determined by the board but shall not exceed one

24

thousand five hundred dollars ($1,500).

25

(7)  The board may issue to the holder of a distillery

26

license a limited distillery license in exchange for the

27

distillery license provided that the applicant has not

28

manufactured more than forty one hundred thousand (40,000) 

<--

29

(100,000) gallons of distilled liquor in the prior calendar

<--

30

year. The board may not charge a fee for this exchange. An

<--

- 36 -

 


1

applicant under this subsection shall surrender his distillery

2

license for cancellation prior to the issuance of the new

3

limited distillery license. The authority of the board to

4

exchange a distillery license for a limited distillery license

5

under this subsection and this subsection shall expire December

6

31, 2012.

7

(c)  (1)  The holder of a distillery license as issued under

8

section 505 may sell bottled liquors produced on the licensed

9

premises to the board, to entities licensed by the board and to

10

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

11

nine eleven o'clock postmeridian so long as a specific code of

<--

12

distilled liquor which is listed for sale as a stock item by the

13

board in State liquor stores may not be offered for sale at a

14

licensed distillery location at a price which is lower than that

15

charged by the board and under such conditions and regulations

16

as the board may enforce.

17

(2)  The holder of a distillery license as issued under

18

section 505 may provide tasting samples of liquor in individual

<--

19

portions not to that in total do not exceed one (1) fluid ounce 

<--

20

one and one-half (1.5) fluid ounces. Samples may be sold or

<--

21

provided free of charge between the hours of nine o'clock

22

antemeridian and nine eleven o'clock postmeridian.

<--

23

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

<--

24

Section 22.  This act shall take effect as follows:

<--

25

(1)  The amendment or addition of the definitions of

26

"eligible entity" and "public venue" in section 102 and

27

sections 401(a), 412(b), 412(f)(2), 437(d), 440, 445(b), 446,

<--

28

471.1(g), 492(12), 493(12) and (26), 496 and 505.4 of the act

29

shall take effect in 60 days.

30

(2)  The remainder of this act shall take effect

- 37 -

 


1

immediately.

- 38 -