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PRINTER'S NO. 685
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
609
Session of
2017
INTRODUCED BY BREWSTER, ARGALL, SCAVELLO, WHITE, VULAKOVICH,
BOSCOLA AND STEFANO, APRIL 13, 2017
REFERRED TO LAW AND JUSTICE, APRIL 13, 2017
AN ACT
Amending the act of April 12, 1951 (P.L.90, No.21), entitled "An
act relating to alcoholic liquors, alcohol and malt and
brewed beverages; amending, revising, consolidating and
changing the laws relating thereto; regulating and
restricting the manufacture, purchase, sale, possession,
consumption, importation, transportation, furnishing, holding
in bond, holding in storage, traffic in and use of alcoholic
liquors, alcohol and malt and brewed beverages and the
persons engaged or employed therein; defining the powers and
duties of the Pennsylvania Liquor Control Board; providing
for the establishment and operation of State liquor stores,
for the payment of certain license fees to the respective
municipalities and townships, for the abatement of certain
nuisances and, in certain cases, for search and seizure
without warrant; prescribing penalties and forfeitures;
providing for local option, and repealing existing laws," in
licenses and regulations relating to liquor, alcohol and malt
and brewed beverages, further providing for malt and brewed
beverages manufacturers', distributors' and importing
distributors' licenses.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 431(b) of the act of April 12, 1951
(P.L.90, No.21), known as the Liquor Code, reenacted and amended
November 15, 2016 (P.L.1286, No.166), is amended to read:
Section 431. Malt and Brewed Beverages Manufacturers',
Distributors' and Importing Distributors' Licenses.--* * *
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(b) The following apply:
(1) The board shall issue to any reputable person who
applies therefor, and pays the license fee hereinafter
prescribed, a distributor's or importing distributor's license
for the place which such person desires to maintain for the sale
of malt or brewed beverages, not for consumption on the premises
where sold, and in quantities of not less than a case or
original containers containing one hundred twenty-eight ounces
or more which may be sold separately as prepared for the market
by the manufacturer at the place of manufacture. In addition, a
distributor license holder may sell malt or brewed beverages in
any amount to a person not licensed by the board for off-
premises consumption. The sales shall not be required to be in
the package configuration designated by the manufacturer and may
be sold in refillable growlers. The board shall have the
discretion to refuse a license to any person or to any
corporation, partnership or association if such person, or any
officer or director of such corporation, or any member or
partner of such partnership or association shall have been
convicted or found guilty of a felony within a period of five
years immediately preceding the date of application for the said
license: And provided further, That, in the case of any new
license or the transfer of any license to a new location, the
board may, in its discretion, grant or refuse such new license
or transfer if such place proposed to be licensed is within
three hundred feet of any church, hospital, charitable
institution, school or public playground, or if such new license
or transfer is applied for a place which is within two hundred
feet of any other premises which is licensed by the board: And
provided further, That the board shall refuse any application
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for a new license or the transfer of any license to a new
location if, in the board's opinion, such new license or
transfer would be detrimental to the welfare, health, peace and
morals of the inhabitants of the neighborhood within a radius of
five hundred feet of the place proposed to be licensed. The
board shall not license the area where liquid fuels or oil is
sold. No sales of liquid fuels or oil may be made from a
licensee's licensed premises. A licensed premises may not have
an interior connection with a location that sells liquid fuels
or oil unless it first receives permission from the board for
the interior connection. The approval shall be required
regardless of whether the licensee or another party is the
entity selling the liquid fuels or oil. The board may enter into
an agreement with the applicant concerning additional
restrictions on the license in question. If the board and the
applicant enter into such an agreement, such agreement shall be
binding on the applicant. Failure by the applicant to adhere to
the agreement will be sufficient cause to form the basis for a
citation under section 471 and for the nonrenewal of the license
under section 470. If the board enters into an agreement with an
applicant concerning additional restrictions, those restrictions
shall be binding on subsequent holders of the license until the
license is transferred to a new location or until the board
enters into a subsequent agreement removing those restrictions.
If the application in question involves a location previously
licensed by the board, then any restrictions imposed by the
board on the previous license at that location shall be binding
on the applicant unless the board enters into a new agreement
rescinding those restrictions. The board shall require notice to
be posted on the property or premises upon which the licensee or
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proposed licensee will engage in sales of malt or brewed
beverages. This notice shall be similar to the notice required
of hotel, restaurant and club liquor licensees.
(2) Except as hereinafter provided, such license shall
authorize the holder thereof to sell or deliver malt or brewed
beverages in quantities above specified anywhere within the
Commonwealth of Pennsylvania, which, in the case of
distributors, have been purchased only from persons licensed
under this act as manufacturers or importing distributors, and
in the case of importing distributors, have been purchased from
manufacturers or persons outside this Commonwealth engaged in
the legal sale of malt or brewed beverages or from manufacturers
or importing distributors licensed under this article. In the
case of an importing distributor, the holder of such a license
shall be authorized to store and repackage malt or brewed
beverages owned by a manufacturer at a segregated portion of a
warehouse or other storage facility authorized by section 441(d)
and operated by the importing distributor within its appointed
territory and deliver such beverages to another importing
distributor who has been granted distribution rights by the
manufacturer as provided herein. The importing distributor shall
be permitted to receive a fee from the manufacturer for any
related storage, repackaging or delivery services. In the case
of a bailee for hire hired by a manufacturer, the holder of such
a permit shall be authorized: to receive, store and repackage
malt or brewed beverages produced by that manufacturer for sale
by that manufacturer to importing distributors to whom that
manufacturer has given distribution rights pursuant to this
subsection or to purchasers outside this Commonwealth for
delivery outside this Commonwealth; or to ship to that
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manufacturer's storage facilities outside this Commonwealth. The
bailee for hire shall be permitted to receive a fee from the
manufacturer for any related storage, repackaging or delivery
services. The bailee for hire shall, as required in Article V of
this act, keep complete and accurate records of all
transactions, inventory, receipts and shipments and make all
records and the licensed areas available for inspection by the
board and for the Pennsylvania State Police, Bureau of Liquor
Control Enforcement, during normal business hours.
(3) Each out of State manufacturer of malt or brewed
beverages whose products are sold and delivered in this
Commonwealth shall give distributing rights for such products in
designated geographical areas to specific importing
distributors, and such importing distributor shall not sell or
deliver malt or brewed beverages manufactured by the out of
State manufacturer to any person issued a license under the
provisions of this act whose licensed premises are not located
within the geographical area for which he has been given
distributing rights by such manufacturer. In addition, the
holder of a distributor license may not sell or deliver malt or
brewed beverages to any licensee whose licensed premises is
located within the designated geographical area granted to an
importing distributor other than the importing distributor that
sold the malt or brewed beverages to the distributor. Nothing in
this clause shall preclude a distributor from delivering to a
licensee whose licensed premises is located within:
(i) The same county that the distributor is located.
(ii) A county contiguous to the county that the distributor
is located.
(iii) A forty-five-mile radius of the licensed premises of
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the distributor.
(4) If the licensee purchasing the malt or brewed beverages
from the distributor license holder holds multiple licenses or
operates at more than one location, then the malt or brewed
beverages may not be consumed or sold at licensed premises
located within the designated geographical area granted to an
importing distributor other than the importing distributor that
sold the malt or brewed beverages to the distributor. Should a
licensee accept the delivery of malt or brewed beverages or
transfer malt or brewed beverages in violation of this section,
said licensee shall be subject to [a suspension of his license
for at least thirty days] the penalties under section 494:
Provided, That the importing distributor holding such
distributing rights for such product shall not sell or deliver
the same to another importing distributor without first having
entered into a written agreement with the said secondary
importing distributor setting forth the terms and conditions
under which such products are to be resold within the territory
granted to the primary importing distributor by the
manufacturer.
(5) When a Pennsylvania manufacturer of malt or brewed
beverages licensed under this article names or constitutes a
distributor or importing distributor as the primary or original
supplier of his product, he shall also designate the specific
geographical area for which the said distributor or importing
distributor is given distributing rights, and such distributor
or importing distributor shall not sell or deliver the products
of such manufacturer to any person issued a license under the
provisions of this act whose licensed premises are not located
within the geographical area for which distributing rights have
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been given to the distributor and importing distributor by the
said manufacturer. In addition, the holder of a distributor
license may not sell or deliver malt or brewed beverages to a
licensee whose licensed premises is located within the
designated geographical area granted to an importing distributor
other than the importing distributor that sold the malt or
brewed beverages to the distributor. Nothing in this clause
shall preclude a distributor from delivering to a licensee whose
licensed premises is located within:
(i) The same county that the distributor is located.
(ii) A county contiguous to the county that the distributor
is located.
(iii) A forty-five-mile radius of the licensed premises of
the distributor.
(6) If the licensee purchasing the malt or brewed beverages
from the distributor license holder holds multiple licenses or
operates at more than one location, the malt or brewed beverages
may not be consumed or sold at licensed premises located within
the designated geographical area granted to an importing
distributor other than the importing distributor that sold the
malt or brewed beverages to the distributor. If a licensee
accepts the delivery of malt or brewed beverages or transfers
malt or brewed beverages in violation of this section, the
licensee shall be subject to [suspension of his license for at
least thirty days] the suspension under section 494: Provided,
That the importing distributor holding such distributing rights
for such product shall not sell or deliver the same to another
importing distributor without first having entered into a
written agreement with the said secondary importing distributor
setting forth the terms and conditions under which such products
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are to be resold within the territory granted to the primary
importing distributor by the manufacturer. Nothing herein
contained shall be construed to prevent any manufacturer from
authorizing the importing distributor holding the distributing
rights for a designated geographical area from selling the
products of such manufacturer to another importing distributor
also holding distributing rights from the same manufacturer for
another geographical area, providing such authority be contained
in writing and a copy thereof be given to each of the importing
distributors so affected.
* * *
Section 2. This act shall take effect immediately.
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