THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY PAYNE, HELM, KILLION AND WAGNER, MAY 9, 2011

AS REPORTED FROM COMMITTEE ON LIQUOR CONTROL, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 11, 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 enforcement, for malt and brewed

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beverages manufacturers', distributors' and importing

distributors' licenses, for malt or brewed beverages

manufactured outside this Commonwealth and, for brand

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registration and for revocation and suspension of licenses

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and fines.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 211(a) of act of April 12, 1951 (P.L.90,

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

1987 (P.L.32, No.14), is amended by adding a paragraph to read:

Section 211.  Enforcement.--(a)  There is created within the

Pennsylvania State Police a Bureau of Liquor Control Enforcement

which shall be responsible for enforcing this act and any

regulations promulgated pursuant thereto. Officers and

investigators assigned to the bureau shall have the power and

their duty shall be:

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(8)  Nothing in this act shall be construed to grant the

Pennsylvania State Police Bureau of Liquor Control Enforcement

the authority to investigate allegations of licensees selling

unregistered malt or brewed beverages. The authority to

investigate unregistered malt or brewed beverages rests with the

malt beverage compliance officer pursuant to section 445(b).

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Section 2.  Sections 431(c), 444(c) and 445 of the act are

amended to read:

Section 1.  Sections 431(c), 444(c) and 445 of the act of

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

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

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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

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

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

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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.

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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. 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

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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.

(c)  Any person filing a report pursuant to section 2004 of

the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform

Code of 1971, shall, within seven days of filing the report with

the Department of Revenue, file the same report with the board.

The board shall maintain these reports online, where they will

be accessible to the general public, within fourteen days of

their receipt.

Section 2.  Section 471 of the act is amended by adding a

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subsection to read:

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

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(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 3.  This act shall take effect in 60 days.