PRINTER'S NO. 1399
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1060
Session of
2015
INTRODUCED BY SCAVELLO, FONTANA, SCARNATI, VOGEL, COSTA,
RAFFERTY, STEFANO AND VULAKOVICH, NOVEMBER 13, 2015
REFERRED TO LAW AND JUSTICE, NOVEMBER 13, 2015
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,"
providing for special permits for breweries.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 446 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 December 22, 2011 (P.L.530,
No.113) and July 5, 2012 (P.L.1007, No.116), is amended to read:
Section 446. Breweries.--(a) Holders of a brewery license
may:
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(1) Sell malt or brewed beverages produced and owned by the
brewery under such conditions and regulations as the board may
enforce, to individuals for consumption on the licensed premises
in any container or package of any volume and to hotel,
restaurant, club and public service liquor licensees.
(2) Operate a restaurant or brewery pub on the licensed
premises under such conditions and regulations as the board may
enforce: Provided, however, That sales on Sunday may be made
irrespective of the volume of food sales if the licensed
premises are at a public venue location. The holder of a brewery
license may sell at its brewery pub premises Pennsylvania wines
it has purchased from either the holder of a Pennsylvania
limited winery license or from the board: Provided, however,
That said wines must be consumed at the licensed brewery pub
premises.
(3) Use brewery storage and distribution facilities for the
purpose of receiving, storing and distributing malt or brewed
beverages manufactured outside this Commonwealth if the
beverages are distributed in this Commonwealth only through
specific importing distributors who shall have first been given
distributing rights for such products in designated geographical
areas through the distribution system required for out-of-State
manufacturers under section 431(b) as well as all other
pertinent sections of this act. The manufacturer of the
beverages must comply with section 444.
(4) Apply for and hold a hotel liquor license, a restaurant
liquor license or a malt and brewed beverages retail license to
sell for consumption at the restaurant or brewery pub on the
licensed brewery premises, liquor, wine and malt or brewed
beverages regardless of the place of manufacture, under the same
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conditions and regulations as any other hotel liquor license,
restaurant liquor license or malt and brewed beverages retail
license, but must brew at least two hundred fifty barrels per
year. Each holder of a brewery license who receives a hotel
liquor license, a restaurant liquor license or a malt or brewed
beverages retail license to operate a brew pub shall not sell
directly to any person licensed by this act, except if any malt
or brewed beverage is to be distributed in this Commonwealth it
shall be only through specific importing distributors who shall
have first been given distributing rights for such products in
designated geographical areas through the distribution system
required for out-of-State manufacturers under section 431(b) as
well as all other pertinent sections of this act.
(b) The holder of a brew pub license may obtain an off-
premises catering permit subject to section 493(33) to hold a
catered function off the licensed premises and on otherwise
unlicensed premises where the licensee may sell wine produced by
a licensed limited winery and malt or brewed beverages produced
by the brewery by the glass, open bottle or other container
together with food, and in any mixture, for consumption on those
premises. Functions conducted under the authority of the permit
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 catered function shall last no longer than one day
and not more than fifty catered functions may be held each
calendar year by each license holder for use with a particular
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license;
(4) a catered function shall not be held at 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 by
any patron, but the applicant may transport alcohol to and from
its licensed premises to the proposed premises;
(9) written notice of the catered function as enumerated in
paragraph (10) shall be provided to the local police and the
enforcement bureau at least seven days in advance of the event;
(10) written notice shall be provided to the board at least
thirty days prior to a catered function. Written notice must
include the location of the function, time of the function, host
of the function, general information regarding the guests
expected at the function as well as any information the board
shall from time to time prescribe. The board may, in its
discretion, waive the thirty-day notice period for a catered
function if:
(i) the applicant has previously conducted functions that
meet the requirements of this act;
(ii) the applicant is a licensee in good standing with the
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board;
(iii) notification was received at least fourteen days prior
to the catered function; and
(iv) the applicant pays a late fee of one hundred dollars
($100);
(11) the board shall, in its discretion, approve or
disapprove a catered function if the applicant fails to provide
timely notice of the catered function, does not intend to
conduct a function that meets the requirements of this act or
has previously conducted a function that did not meet the
requirements of this act;
(12) if a catered function is scheduled to occur on private
property, the owner of that property is deemed to have submitted
to the jurisdiction of the enforcement bureau, and the warrant
required by section 211(a)(2) of this act shall not be necessary
for the enforcement bureau to enter and search the premises
during the function or any activities related to the function;
(13) no catered function may be held for more than five
hours per day and must end by midnight;
(14) neither the owner of the property nor the applicant may
sell tickets to a catered function unless one of the following
conditions is met:
(i) the applicant has contracted with an eligible entity for
the function, and the function is being used to raise money for
the eligible entity's organization;
(ii) the applicant has contracted with 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)),
for an event which has the sole purpose of raising funds for
that nonprofit organization; or
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(iii) the applicant has contracted with an organization that
holds tax exempt status under section 527 of the Internal
Revenue Code of 1986;
(15) the catered function location shall be subject to
section 493(34) of this act;
(16) catered functions may not be held in locations that are
subject to a pending, protested transfer application;
(17) a permit may not be issued to a license holder whose
license is subject to a pending objection by the director of the
Bureau of Licensing or the board under section 470(a.1);
(18) a permit shall not be issued to a licensee for use in
any location that is mobile; and
(19) a permit shall not be issued for use on any location
used for parking at a sports event or concert event.
(c) (1) Holders of a brewery license may obtain a special
permit to participate in malt or brewed beverages and food
expositions off the licensed premises. A special permit shall be
issued upon proper application and payment of a fee of thirty
dollars ($30) per day for each day of permitted use, not to
exceed thirty consecutive days. The total number of days for all
the special permits may not exceed one hundred days in any
calendar year. A special permit shall entitle the holder to
engage in the sale by the glass, growler, bottle or package not
to exceed one hundred forty-four fluid ounces of malt or brewed
beverages produced by the permittee under the authority of its
brewery license. Holders of special permits may provide tasting
samples of malt or brewed beverages in individual portions not
to exceed four fluid ounces. Samples at malt or brewed beverages
and food expositions may be sold or offered free of charge.
Except as provided herein, breweries utilizing special permits
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shall be governed by all applicable provisions of this act as
well as by all applicable regulations or conditions adopted by
the board. For purposes of this clause, "malt or brewed
beverages and food expositions" are defined as affairs held
indoors or outdoors with the intent of educating those in
attendance of the availability, nature and quality of malt or
brewed beverages in conjunction with suitable food displays,
demonstrations and sales. Malt or brewed beverages and food
expositions may also include activities other than malt or
brewed beverages and food displays, including arts and crafts,
musical activities, cultural exhibits, agricultural exhibits and
farmers markets.
(2) The holder of a brewery license may, 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 malt or brewed beverages produced under the
authority of the underlying brewery license by the growler,
bottle or package not to exceed one hundred forty-four ounces .
Samples not to exceed four fluid ounces per brand of malt or
brewed beverages 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
and 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, breweries utilizing farmers market
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permits shall be governed by all applicable provisions of this
act as well as by all applicable regulations adopted by the
board.
The term "farmers market" as used in this section shall
include any building, structure or other place:
(i) owned, leased or otherwise in the possession of a
person, municipal corporation or public or private organization;
(ii) used or intended to be used by two or more farmers or
an association of farmers, who are certified by the Department
of Agriculture to participate in the Farmers Market Nutrition
Program subject to 7 CFR Pt. 249 (relating to Senior Farmers'
Market Nutrition Program (SFMNP)), for the purpose of selling
agricultural commodities produced in this Commonwealth directly
to consumers;
(iii) which is physically located within this Commonwealth;
and
(iv) which is not open for business more than twelve hours
each day.
(3) The special permit, as well as the farmers market permit
authorized by this section, are only available to breweries who
qualify as a manufacturer as authorized under section 431(a) and
who has not named or constituted a distributor or importing
distributor as a primary or original supplier of the product
under section 431(b). Only malt or brewed beverages for which
the brewery is responsible for paying the malt beverage tax
shall be considered in calculating the total number of barrels
produced each year. All brands of malt or brewed beverages sold
or provided under the authority of the special permit as well as
the farmers market permit must be registered as set forth by
this act.
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The term "growler" as used in this section shall mean a
refillable container that holds a minimum of sixty-four fluid
ounces of malt or brewed beverages.
Section 2. This act shall take effect in 60 days.
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